Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 26 August 2014
Two Men Charged with Defrauding Cleveland Credit Union Out of $1.9 MillionRead the Press Release
Two men from Northeast Ohio were charged with conspiring to defraud a Cleveland credit union out of nearly $1.9 million, law enforcement officials said.
Gary Chaney, 49, of Streetsboro, and Patrick Bruckman, 58, of Chester Township, were each charged with one count of conspiracy to commit theft or embezzlement from a credit union.
The charges were announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony and Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Bruckman and Chaney both maintained personal accounts at Taupa Lithuanian Credit Union, as well as a corporate account for Network Systems Engineering (NSE), a computer consulting firm they owned together, according to the information.
Bruckman, Chaney, credit union CEO Alex Spirikaitis and others conspired to defraud the credit union from at least 2007 through 2013. During that time, Bruckman and Chaney knowingly wrote checks drawn on their personal and corporate accounts for which there were insufficient funds, according to the criminal information.
Chaney withdrew approximately $241,000 from his personal account, Bruckman withdrew approximately $63,000 from his personal account and they collectively withdrew $1,582,000 from their corporate accounts for which there were insufficient funds, for a total loss to the credit union of $1,886,000, according to the information.
Chaney and Bruckman did not have sufficient funds in their accounts to cover the checks, and Spirikaitis allowed the overdrafts to clear the account. Chaney and Bruckman made minimal deposits to their accounts, which did not offset the large amount of funds which Spirikaitis transferred to their accounts at Taupa. At no time during the conspiracy did Chaney or Bruckman submit any credit applications or loan documentation for the money they received from Spirikaitis to cover their overdrafts, according to the information.
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last year and placed it into receivership due to its insolvency. Taupa, based in Cleveland, had about 1,150 members and assets of approximately $24 million, according to court records.
Spirikaitis, former teller Michael Ruksenas and Vytas Apanavicius have previously been found guilty for their roles in conspiracies related to defrauding the credit union.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation.
If convicted, the defendants’ sentences will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Troy Hill Man with Several Convictions Charged with Illegally Possessing GunRead the Press Release
PITTSBURGH – A former resident of Pittsburgh’s Troy Hill neighborhood has been indicted by a federal grand jury in Pittsburgh for violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment names Kia Jones, 35, of Pittsburgh, as the sole defendant.
According to the indictment, on Feb. 9, 2014, in the Western District of Pennsylvania, Jones possessed a firearm after having been convicted of several felony crimes. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm.
The law provides for a sentence of not less than 15 years’ incarceration, and up to life, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Katherine A. King and Craig W. Haller are prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Pittsburgh Bureau of Police, and the Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Toledo Man Sentenced to More Than 18 Years in Prison for Human TraffickingRead the Press Release
A Toledo man was sentenced to more than 18 years in prison sex trafficking involving a minor, 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.
Taurus Devault, 27, was sentenced to 224 months in prison by U.S. District Judge James Carr. Devault pleaded guilty last year to one count of sex trafficking of a minor and one count of conspiring to use a facility of interstate commerce (i.e. the internet and the telephone network) to promote a business enterprise involving prostitution.
Co-conspirator Duane Hill, 26 and also from Toledo, was sentenced to more than 16 years in prison earlier this year.
"These defendants made their profits using underage girls," Dettelbach. "We will continue to work with our partners to prosecute human trafficking cases in all their many forms."
"Protecting our nation's children is one of the highest priorities in the FBI," Anthony said. "No one should be able to pick up a phone or go online to purchase a child. People who traffic children for their own financial gain deserve - and are getting - the highest possible sentences the court can hand down. "
Devault and Hill conspired together in 2012 to offer underage girls for sale on the web site backpage.com to engage in commercial sex acts, according to court documents.
The investigating agency in this case is the Northwest Ohio Violent Crimes Against Children Task Force which consists of the Federal Bureau of Investigation, Toledo, Ohio, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, and the Bureau of Criminal Investigation. The case is being handled by Assistant United States Attorney Daniel Hurley.
Texas Business Executive Pleads Guilty to Illegally Selling Oxycodone on Silk RoadRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Matthew Jones, a/k/a “Caligirl,” “Dynamite2k,” “Dynamite`,” “Tyler Zeddai,” “Mateo Jones” (44, Dallas, Texas) today pleaded guilty to the illegal distribution of controlled substances. Jones faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement and court documents, while Jones was working as the Chief Technology Officer for a software consulting company in Dallas, he operated as the vendor “Caligirl” on the Silk Road drug marketplace. Between April 10, 2013 and September 9, 2013, Caligirl’s Silk Road account completed 685 finalized sales of controlled substances. Between July 11, 2013 and March 20, 2014, Drug Enforcement Administration (DEA) agents purchased and seized more than 400 Oxycodone tablets and more than 900 Hydrocodone tablets from Jones. Jones shipped the controlled substances from Texas to Central Florida.
When Jones was arrested, travelling back to the United States from Colombia, he was in possession of approximately 8,500 Oxycodone pills. The pills were concealed in vitamin bottles in his luggage. Simultaneous with his arrest, a federal search warrant was executed at Jones’ Texas residence. At his residence, agents recovered approximately $75,000 in cash, and seized a variety of controlled substances, including but not limited to Oxycodone, Hydrocodone, MDMA, methamphetamine, cocaine, and hashish. A drug lab was also located in the residence. In addition to operating on Silk Road, Jones conducted his illicit drug trafficking business utilizing an encrypted and anonymized peer-to-peer program.
This case was investigated by the Drug Enforcement Administration’s Orlando District Office, with assistance from the United States Postal Inspection Service in Dallas, Texas. It is being prosecuted by Assistant United States Attorney David Haas.
Tax Return Preparers Charged in Fraudulent Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald A. Cimino, Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Claudia Zuloaga, 43, and Sharon Elizabeth Angulo, 49, both of Miami, have been charged in a 32 count indictment with one count of conspiring to defraud the United States, in violation of Title 18, United States Code, Section 371, and 20 and 11 counts, respectively, of assisting in the preparation of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2).
If convicted, the defendants face a maximum of five years in prison on the conspiracy count and a maximum of three years in prison on each of the Title 26 counts.
According to the indictment, beginning in approximately September 2008 and continuing through September 2012, the defendants jointly operated a tax preparation business from offices located at 18710 SW 107th Avenue, Miami, Florida. The indictment further alleges that Zuloaga and Angulo recruited clients by falsely representing that they could eliminate a substantial portion of their debts by obtaining sizable tax refunds for them. As alleged in the indictment, this would be accomplished through false and fraudulent tax returns which the defendants would prepare for each client in exchange for fees usually amounting to 30percent of the tax refunds fraudulently obtained and totaled in excess of $250,000 from those clients who were successful in receiving fraudulently obtained refunds.
As further alleged in the indictment, the tax returns prepared by the defendants falsely set forth that certain financial institutions had withheld sizable amounts of tax from falsely declared interest income earned from these same financial institutions. Through this fraudulent mechanism, each return gave the false appearance of entitling the client to a significant tax refund due to over-withholding of tax payments in connection with their claimed interest earnings. In addition, the indictment alleges that, in order to provide false substantiation for these fraudulent tax refund claims, the defendants caused fictitious IRS Forms 1099-OID to be created which set forth the false interest and tax withholding amounts fraudulently reported upon their clients’ tax returns.
The indictment also alleges that Zuloaga and Angulo promoted the fictitious “redemption theory” to their clients as the purported justification for their fraudulent tax refund claims. Through this promotion, clients were falsely informed that the submission of tax returns in this manner allowed their clients to legitimately access large amounts of money allegedly contained in certain non-existent “straw man” accounts which the defendants claimed were being maintained by the United States Treasury for each individual who possessed a Social Security number.
As part of the conspiracy, Zuloaga and Angulo are also alleged to have engaged in various acts designed to prevent the IRS from investigating their fraudulent activities and collecting the repayment of any tax refunds falsely and fraudulently obtained. These acts included the submission of numerous false documents on behalf of both their clients and themselves which were designed to obstruct the IRS from taking investigative and enforcement actions against their clients and themselves.
Mr. Ferrer commended the investigative efforts of the IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Peter B. Outerbridge and the department’s Tax Division Trial Attorney Alexander Effendi
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tahlequah Man Pleads Guilty to Possession of Unregistered Firearm (Destructive Device)Read the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOBY TUCSON NORTHINGTON, age 34, of Tahlequah, Oklahoma, pled guilty to POSSESSION OF UNREGISTERED FIREARM (DESTRUCTIVE DEVICE), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871.
The charge is a result of an investigation by the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in July, 2014.
The Indictment alleged that on or about April 12, 2014, within the Eastern District of Oklahoma, the defendant did knowingly possess a destructive device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is up to 10 years imprisonment, and/or up to a $250,000.00 fine.
Assistant United States Attorney Chris Wilson represented the United States.
Spiro Woman Pleads Guilty to Conspiracy (Methamphetamine Distribution)Read the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DONNA JEAN SCHAFER, age 53, of Spiro, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Section 846 and 841(a)(1) and 841(b)(1)(A).
The charge is a result of an investigation by the District 16 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The defendant was indicted in March 2014.
The Indictment alleged that from in or about the beginning of 2011, the exact date being unknown to the Grand Jury, and continuing until on or about December 31, 2013, in the Eastern District of Oklahoma, and elsewhere, DONNA JEAN SCHAFER, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States, to wit: to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing and ordered the completion of a presentence and investigation report. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than 10 years imprisonment or more than life, and/or up to a $10,000,000 fine and mandatory supervised release of at least 5 years.
Assistant United States Attorney Shannon Henson represented the United States.
Secret Service Investigation Leads to Conspiracy and Counterfeiting ChargesRead the Press Release
PITTSBURGH – Three Pittsburgh-area residents and a New York City man have been indicted by a federal grand jury in Pittsburgh on conspiracy and counterfeiting charges, United States Attorney David J. Hickton announced today.
The six-count indictment charges John Viloria, 25, of Bronx, New York; Barry Robert Youger, Jr., 36, of Belle Vernon, Pa.; Cheryl Leigh Johnson, 36, of Charleroi, Pa.; and Eric Seighman, 31, of Belle Vernon, Pa., with conspiring to possess and pass counterfeit currency in the denomination of $100 dollars.
According to the indictment, Viloria obtained thousands of dollars of counterfeit Federal Reserve notes in the denomination of $100 dollars and transported the counterfeit Federal Reserve notes into the Western District of Pennsylvania. The indictment also charges that on numerous occasions, Youger, Johnson and Seighman passed and attempted to pass counterfeit Federal Reserve notes at various retail store locations in the Western District of Pennsylvania and received legitimate currency as change.
The law provides for a maximum total sentence for Viloria of 45 years in prison, a fine of $750,000 or both. The law provides for a maximum total sentence for Youger, Johnson and Seighman of 25 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rutland Man Imprisoned 5 Years for Heroin TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that today Evan Murphy, 23, of Rutland, was sentenced by Chief United States District Judge Christina Reiss to five years imprisonment on his guilty plea to a charge of conspiracy to distribute 100 grams or more of heroin. Chief Judge Reiss also ordered that Murphy serve four years on supervised release after his incarceration ends.
According to court documents, from January to November 2012 Murphy trafficked between 400 and 700 grams of heroin in the Rutland area. In July 2012, Murphy began selling heroin supplied by Joshua Rose, 21, Devon Cruz, 29, and Charles Hercules, 23, all of New York. During August, September and October 2012, the Vermont Drug Task Force (VDTF) used a confidential informant to make three controlled buys of heroin from Murphy in Rutland. In November 2012, Murphy was incarcerated for an unrelated state offense, ending his heroin sales.
On July 24, 2013, based on a joint investigation by the VDTF, the Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation (FBI), the grand jury returned an indictment charging Murphy, Rose, Cruz, Hercules, Alan H. Willis, II, 42, of Tinmouth, and Jean Marie Phillips, 47, of Rutland, with conspiracy to distribute 100 grams or more of heroin. All of the defendants have entered guilty pleas to the conspiracy charge, except Phillips, who pled guilty to aiding and abetting Rose=s possession with intent to distribute heroin. On April 28, 2014, Willis was sentenced to 37 months imprisonment. On May 9, 2014, Phillips was sentenced to 13 months imprisonment. Rose, Cruz, and Hercules are scheduled for sentencing over the next two months.
United States Attorney Tristram J. Coffin commended the joint investigation by the VDTF, DEA and FBI, and thanked the Vermont Attorney General's Office for its cooperation. Burlington attorney Doug Kallen represented Murphy. The case is being prosecuted by Assistant U.S. Attorney Craig S. Nolan.
Rapid City Man Sentenced for Hiring Alien WorkersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Continuing Unlawful Employment of Aliens was sentenced on August 15, 2014, by U.S. District Judge Karen E. Schreier.
Benjamin Munoz-Botello, age 49, was sentenced and ordered to pay a $3,000 fine and a $10 special assessment to the Federal Crime Victims Fund.
Between January 2008 and February 2010, while owner of the El Ranchito Mexican Restaurant, Munoz-Botello knowingly employed illegal aliens to work at the restaurant.
The investigation was conducted by U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI), in cooperation with the U.S. Forest Service, Rapid City Police Department, Pennington County Sheriff's Office, and other federal and state law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Providence Man Detained on Sex Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Kemont Bowie, 34, of Providence, was ordered detained in federal custody today by U.S. District Court Magistrate Judge Patricia A. Sullivan on sex trafficking charges, for allegedly trafficking a 17-year-old girl from the Boston area to Rhode Island for the purposes of commercial sexual activity, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI; Pawtucket Police Chief Paul King and Central Falls Police Chief James J. Mendonca.
According to an affidavit in support of a criminal complaint and arrest warrant filed with the court, the victim was allegedly taken against her will from South Station in Boston in the early morning hours of August 18, 2014, and driven to Rhode Island for the purposes of being trafficked for commercial sexual activity. According to the victim, she was driven to the same residence where she was located yesterday and rescued by FBI agents, Pawtucket and Central Falls Police.
According to the affidavit, on Monday, the victim contacted an individual at a residence she resided at in Arlington, Massachusetts, requesting assistance. The Arlington Police Department and the FBI were contacted, which subsequently led to the FBI, along with Pawtucket Police and Central Falls Police rescuing the victim from a Pawtucket residence and the arrest of the defendant.
Bowie is charged in a federal criminal complaint with one count each of sex trafficking of a child and transportation of a minor. A preliminary hearing on this matter has been scheduled for September 2, 2014.A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.The FBI, Pawtucket Police and Central Falls Police are being assisted in the investigation of this matter by the Rhode Island State Police. The U.S. Attorney’s Office is working in conjunction with the Rhode Island Department of Attorney General in the prosecution of this matter.
U.S. Attorney Peter F. Neronha and the law enforcement agencies involved in the rescue of the alleged victim wish to acknowledge Day One in Providence for their quick response and services provided to the young woman.###
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]Port St. Lucie Broker Sentenced to 87 Months in Prison in Wire Fraud Embezzlement SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Danny Banks, Special Agent in Charge, Orlando Regional Operations Center, Florida Department of Law Enforcement (FDLE), announce that Paul Elvidge, 54, of Port Saint Lucie, was sentenced by U.S. District Judge Jose E. Martinez to 87 months in prison, followed by three years supervised release, and ordered to pay restitution in the amount of $1,289,878 for embezzling from client investment accounts while acting as a securities broker for Cape Securities, Inc. (Cape Securities) and Seacoast Investor Services, Inc. (Seacoast).
Specifically, Elvidge was sentenced to 63 months in prison for eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343, followed by a consecutive 24 months on the aggravated identity theft count, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Elvidge, formerly a registered representative and stockbroker with Cape Securities and Seacoast from 2010 to 2012, did willfully and knowingly obtain money fraudulently by authorizing numerous wire transfers from his clients’ brokerage accounts to his own personal bank and brokerage accounts.
To carry out the fraud, Elvidge prepared fraudulent letters of authorization directing that funds be transferred from a client’s account to his own Seacoast brokerage or his PNC bank account. He would then forge the client’s signature on the letter of authorization to make it appear that the transfer was authorized by the account holder. Thereafter, he would fax the fraudulent letter of authorization to Cape Securities’ main office in Georgia, or – when he operated as Seacoast – to Pershing LLC, which was the clearing house used to conduct Seacoast transactions. Once the money was transferred to his accounts, he used the money to pay his personal and business expenses, and to conduct day trades through a personal account he had at AMP Global Clearing.
Mr. Ferrer commended the investigative efforts of the FBI and FDLE. This case was prosecuted by former Assistant U.S. Attorney Shaniek Maynard.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pipe Bomb Crafted from Vehicle Airbag Gets Birmingham Man 10 Years in Federal PrisonRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Birmingham man to 10 years in prison for possessing a pipe bomb crafted from a vehicle airbag canister, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Glenn Anderson.
A jury in March convicted JAMES DAVID KIRCUS, 55, on one count of knowingly possessing an unregistered destructive device. U.S. District Judge David Proctor sentenced Kircus on that charge. Kircus has remained in custody since the conviction.
"Improvised explosive devices can maim and kill. They are illegal," Vance said. "Mr. Kircus was working at an auto salvage business in Birmingham when he took a vehicle airbag, broke it down and reconfigured it into a dangerous weapon containing a high-powered explosive. This was a serious crime met today with serious punishment," she said.
"ATF's Frontline model of reducing violent crime, along with the collaborative efforts of our local partners, led to the success of this investigation," Anderson said.Airbag cylinders contain sodium azide, a chemical that when ignited in a crash, quickly creates a gas to inflate the bag. According to evidence at trial, Kircus took the sodium azide tablets out of the airbag cylinders and crushed them to enhance their explosive power, then placed the crushed material back into the cylinders.
Employees at the salvage company called police after discovering what they thought were bombs in Kircus' toolbox. One airbag cylinder had been fully transformed into a bomb, another was in process and other unmodified cylinders were found, according to testimony.
At the time of the incident in August 2013, Kircus was living at Keeton Corrections, a half-way house in Birmingham for federal prisoners. Kircus was nearing the end of a seven-year and three-month sentence for his guilty plea related to making pipe bombs and possession of firearms by a convicted felon, according to trial evidence.
ATF investigated the case, which Special Assistant U.S. Attorney E. Wilson Hunter prosecuted.
Palm Coast Man Indicted for Receiving and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Timothy Edward McDermott (age 60, Palm Coast) was indicted by a federal grand jury on two counts of receiving child pornography over the internet and one count of possessing child pornography. If convicted, McDermott faces a minimum mandatory sentence of not less than 5 years and up to 20 years’ imprisonment, a $250,000 fine, and a potential life term of supervised release for each of the receipt counts. For the possession count, McDermott faces a maximum term of 10 years’ imprisonment, a $250,000 fine, and a potential life term of supervised release. McDermott was arrested on August 25, 2014 at his residence in Palm Coast.
This case was investigated by the Federal Bureau of Investigation in Dallas, Daytona Beach and Jacksonville, the Flagler County Sheriff’s Office, and the Wheaton (Illinois) Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another 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.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
Owner of Home Health Care Company Sentenced to Nearly Six Years in Prison for Role in $6 Million Medicare Fraud SchemeRead the Press Release
A co-owner of Professional Medical Home Health LLC was sentenced today to serve 70 months in prison and ordered to pay $6.2 million in restitution for her participation in a health care fraud scheme involving the now defunct home health care company .
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Reginald France of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement. U.S. District Judge Federico A. Moreno of the Southern District of Florida imposed the sentence.
According to court documents, Annarella Garcia, 44, of Hialeah, Florida, was a co-owner of Professional Medical Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Between December 2008 and February 2014, Garcia and others engaged in a scheme to bill the Medicare Program for expensive physical therapy and home health care services that were not medically necessary or were not provided. During that time, Professional Medical Home Health was paid approximately $6.25 million by Medicare for the fraudulent claims.
Specifically, Garcia and her co-conspirators paid kickbacks and bribes to patient recruiters in return for their providing patients to Professional Medical Home Health for home health and therapy services that were not medically necessary or were not provided. In furtherance of the scheme, Garcia and her co-conspirators falsified patient documentation to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for such services and did not receive such services.
Garcia pleaded guilty to conspiracy to commit health care fraud on June 25, 2014.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Owner of Home Health Care Company Sentenced to Nearly Six Years in Prison for Role in $6 Million Medicare Fraud SchemeRead the Press Release
A co-owner of Professional Medical Home Health LLC was sentenced today to serve 70 months in prison and ordered to pay $6.2 million in restitution for her participation in a health care fraud scheme involving the now defunct home health care company.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Reginald France of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement. U.S. District Judge Federico A. Moreno of the Southern District of Florida imposed the sentence.
According to court documents, Annarella Garcia, 44, of Hialeah, Florida, was a co-owner of Professional Medical Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Between December 2008 and February 2014, Garcia and others engaged in a scheme to bill the Medicare Program for expensive physical therapy and home health care services that were not medically necessary or were not provided. During that time, Professional Medical Home Health was paid approximately $6.25 million by Medicare for the fraudulent claims.
Specifically, Garcia and her co-conspirators paid kickbacks and bribes to patient recruiters in return for their providing patients to Professional Medical Home Health for home health and therapy services that were not medically necessary or were not provided. In furtherance of the scheme, Garcia and her co-conspirators falsified patient documentation to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for such services and did not receive such services.
Garcia pleaded guilty to conspiracy to commit health care fraud on June 25, 2014.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
New Jersey Man Indicted in Connection with Asbestos RemovalRead the Press Release
PHILADELPHIA - Ronen Bakshi, 53, of Voorhees, New Jersey, was charged today by indictment in connection with the removal of asbestos-containing material from a former church located at 1133 Spring Garden St., in Philadelphia, announced United States Attorney Zane David Memeger. Bakshi is charged with one count of falsifying records to obstruct or impede the investigation of a matter within the jurisdiction of the United States Environmental Protection Agency and one count of wire fraud.
According to the indictment, on or about April 23, 2009, Bakshi submitted a bill to his client, Siloam, via e-mail covering his charges for March 9 through April 23, 2009. The bill totaled $34,910, and included charges for time that Bakshi claimed that he or his employees had performed asbestos project inspector duties at the Church, including taking air samples. According to the indictment, Bakshi made up log book entries and sampling data to correspond with the bill, making it appear that Bakshi had worked at the Church on those days monitoring the work of the asbestos abatement contractor when he knew that neither he nor his employees had been present.
If convicted of all charges, Bakshi faces a maximum possible statutory sentence of 40 years in prison, a fine of up to $500,000, and possible restitution.
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, with assistance from the City of Philadelphia’s Air Management Services office. The case is being prosecuted by Special Assistant United States Attorneys Martin Harrell and Patricia C. Miller from EPA.
Click here to view the indictment
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, 215-861-8525Nevada Prosecutor and Homeland Security Investigations Special Agent Receive Awards for Their Work on Cybercrime CaseRead the Press Release
LAS VEGAS, Nev. – Assistant United States Attorney (AUSA) Kimberly Frayn of the U.S. Attorney’s Office for the District of Nevada and Special Agent Michael P. Adams of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Las Vegas, received awards today in Phoenix, Ariz., from the International Association of Financial Crimes Investigators for the investigation and prosecution of members of a highly sophisticated international cybercrime organization known as “Carder.su,” announced Daniel G. Bogden, United States Attorney for the District of Nevada and Michael Harris, Assistant Special Agent in Charge for HSI Las Vegas.
AUSA Frayn received the William D. Neumann Prosecutor of the Year Award for her efforts as the primary prosecutor in the Nevada case, known as, “Operation Open Market.” The Award acknowledges prosecutors who have shown exceptional diligence, cooperation and tenacity, and who have made significant contributions to financial fraud prevention.
Special Agent Adams received the Cyber Investigations Contributor of the Year award for his efforts as the case agent in Operation Open Market. The Award acknowledges Agent Adams’ cyber investigative skills which significantly aided in the apprehension, arrest and prosecution of the suspects.
“It pleases me that AUSA Frayn and Special Agent Adams have been recognized by an international association for their superior work and efforts in fighting financial fraud,” said U.S. Attorney Bogden. “The investigation and prosecution of a cybercrime case requires special skills and expertise, as well as diligence and tenaciousness of character. AUSA Frayn and Special Agent Adams have all of those qualities combined, which has led to successful court cases and convictions.”
“These awards are richly deserved and reflect the extraordinary amount of work both the agent and prosecutor invested in this complex and far-reaching case,” said Assistant Special Agent in Charge Michael Harris. “There’s no question their collaborative efforts are in large measure responsible for the successful outcome of this investigation. For prosecutors and investigators, seeing career criminals like the defendants in this case brought to justice is its own reward, but having those efforts recognized in such a public way makes the outcome even more gratifying.”
Special Agent Adams assumed the identity as a member of the Carder.su organization when it was in its infancy. The investigation determined that its members or “carders,” were involved in large scale trafficking of compromised credit card account data and counterfeit identifications and credit cards, as well as money laundering, narcotics trafficking, and various types of computer crime. The organization operated an internet web portal called a forum, where members could purchase the illicitly obtained data and share knowledge of various fraud schemes. A second forum was also created to vet incoming new members. The forums were generally hosted within the former Soviet Union and the upper echelon of the organization resides within the former Soviet Union. It was estimated that in July 2011, there were over 5,500 members of the organization. Members of the organization had different roles, including moderators who directed other members in carrying out activities; reviewers who examined and tested products, services, and contraband; vendors who advertised and sold products, services and contraband; and members. Members were required to successfully complete a number of security features designed to protect the organization from infiltration by law enforcement or members of rival criminal organizations.
Operation Open Market resulted in federal criminal charges against 56 individuals. The defendants are charged with conspiracy to participate in a racketeer influenced corrupt organization, trafficking in compromised credit card account data and counterfeit identifications, money laundering, narcotics trafficking, and computer crimes. To date, 25 individuals have been convicted, and the rest are either fugitives or are pending trial in Las Vegas.
The International Association of Financial Crimes Investigators (IAFCI) is a non-profit organization with over 4,000 members whose mission is to identify and prevent financial crimes utilizing new technologies and investigative techniques. The Association has 40 Chapters worldwide.Nampa Man Pleads Guilty to Drug CrimeRead the Press Release
BOISE – Lawrence Joseph Kren, 64, of Nampa, Idaho, pleaded guilty yesterday in federal court to distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Kren was indicted by a federal grand jury in Boise on April 8, 2014, charged with three counts of distributing methamphetamine.
According to information presented in court, Kren admitted to selling methamphetamine to another person, who was assisting law enforcement as a confidential informant. Kren admitted that he sold methamphetamine to the informant on three separate occasions in February and March 2014. Kren also admitted that he possessed firearms in connection with the drug distribution offense and that he showed the firearms to the informant.
The charge is punishable by up to twenty years in prison, a maximum fine of $1 million, and at least three years of supervised release. The government is seeking forfeiture of the firearms. Kren is scheduled for sentencing on November 12, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Nampa Police Department and Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Muskogee Man Sentenced to 15 Months for Failure to Register as Sex OffenderRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that PAUL EVERETT KILLMAN, age 50, of Muskogee, Oklahoma, was sentenced to 15 months imprisonment, followed by 5 years of supervised release for Failure to Register as Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(A) and 2250(a)(3).
Charges arose from an investigation by the United States Marshal Service. The defendant was indicted in March, 2014.
The Indictment alleged that from in or about December 2011, until on or about March 5, 2014, in the Eastern District of Oklahoma, and elsewhere, PAUL EVERETT KILLMAN, defendant herein, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having been Court-Martialed and convicted of felonies by the United States of America Air Force on or about February 10, 1997, for two counts of Committing Indecent Acts, two counts of Indecent Liberties, one count of Indecent Acts with Another, one count of Receipt of Child Pornography and one count of Possession of Child Pornography, did knowingly fail to update his registration as required by the Sex Offender Registration and Notification Act.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Mission Man Sentenced for Misprision of A FelonyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Misprision of a Felony was sentenced on August 11, 2014, by U.S. District Judge Roberto A. Lange.
Na’pe Young, age 34, was sentenced to 15 months in custody, 1 year of supervised release, $1,135.80 in restitution to the Rosebud Elderly Affairs Program, and a $100 special assessment to the Federal Crime Victims Fund.
Young was indicted for First Degree Burglary, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury by a federal grand jury on March 11, 2014. He pled guilty to a Superseding Information charging him with Misprision of a Felony on May 29, 2014.
The conviction stems from an incident that took place on July 2, 2013, when two men walked to the home of the victim. After a verbal altercation started, one of the men struck the victim on the head and in the face with his fists. Young was present during the assault. After the assault was over, Young concealed it from tribal and federal law enforcement officers and did not report the assault to a judge or other person in civil authority under the United States.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher prosecuted the case.
Young was immediately turned over to the custody of the U.S. Marshals Service.
Michigan Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bessimer, Michigan, man charged with Failure to Pay Child Support pled guilty and was sentenced on August 11, 2014, by U.S. District Judge Roberto A. Lange.
Daryl Ready, a/k/a Nick D. Ready, age 55, was sentenced to 5 years of probation, ordered to pay $29,900.59 in restitution and a $100 special assessment to the Federal Crime Victims Fund.
Ready was indicted by a federal grand jury on September 10, 2013.
The conviction stems from Ready’s failure to pay child support from about July 1, 2009 through May 2014.
This case was investigated by the Department of Health and Human Services. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Insider Trading Charges Against Director of Market Intelligence at Investor Relations FirmRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that MICHAEL A. LUCARELLI, the Director of Market Intelligence at Lippert/Heilshorn & Associates, Inc. (“LHA”), an investor relations firm, was arrested this morning on 13 counts of insider trading. LUCARELLI is expected to be presented today in Manhattan federal court before United States Magistrate Judge James L. Cott.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, and despite the well-known parade of convicted insider trading perpetrators over the past several years, Michael Lucarelli was not deterred and violated both his company’s policies and his responsibility to its clients by trading on material nonpublic information for his personal financial gain. For the over $500,000 he earned from his illicit trades he is charged with 13 counts of securities fraud.”
FBI Assistant Director-in-Charge George Venizelos said: “Instead of doing his job, Lucarelli spent his days setting up brokerage accounts to make illegal trades using inside information from unwitting clients. He violated the responsibility he had to both company and clients. He also broke the law and today finds himself under arrest and charged in a thirteen count complaint.”
According to the Complaint unsealed in Manhattan federal court:
From at least August 2013 through at least August 2014, LUCARELLI engaged in an insider trading scheme to use and trade upon material non-public information that he acquired during his employment at LHA, an investor relations firm based in Manhattan. Specifically, LUCARELLI, as an LHA employee, had access to working drafts of press releases prepared by LHA for its clients prior to their issuance to the investing public. Those draft press releases contained material, non-public information about business events and announcements relating to LHA’s clients.
In violation of LHA’s policies and in breach of his duties to LHA and its clients, on multiple occasions, LUCARELLI took positions in the stock of LHA clients shortly before the announcement by these companies of material information through press releases prepared by LHA. Shortly following the issuance of the press releases drafted by LHA, LUCARELLI exited the positions in these securities that he had acquired prior to the issuance, thereby profiting on the movement in the stock price.
LUCARELLI repeatedly traded in LHA client securities despite LHA’s written code of conduct, which strictly prohibited LHA employees from trading in any security issued by an LHA client. LUCARELLI carried out his scheme in at least four different brokerage accounts. When opening new brokerage accounts through which to conduct his illegal trades, LUCARELLI did not reveal his affiliation with LHA. And, on two occasions, LUCARELLI opened new brokerage accounts soon after his ability to trade in other accounts had been suspended by the respective brokerage firms.
On or about July 24, 2014, the FBI obtained a search warrant to search LUCARELLI’s office at LHA for evidence of his insider trading activities. During that search, which was conducted without LUCARELLI’s knowledge, the FBI located a locked briefcase which, when opened, contained a draft press release for LHA client, TREX Company (“TREX”). That press release was marked “DRAFT” and contained TREX’s second fiscal quarter 2014 financial results. The following day, after the FBI completed the search, LUCARELLI started purchasing shares of TREX. Between July 25, 2014 and August 1, 2014, LUCARELLI took a net position of 37,400 shares of TREX. Then, on August 4, 2014, shortly before the market opened, TREX issued a press release announcing its second fiscal quarter 2014 financial results. Among other things, TREX announced that sales and earnings before taxes had increased 23 percent and 62 percent, respectively, in comparison with the comparable period in 2013. TREX also issued revenue guidance for the third fiscal quarter of 2014, which was a 27 percent increase over the comparable period in 2013. Within two hours of the announcement, LUCARELLI sold 35,058 of the 37,400 TREX shares he previously purchased. Those sales yielded a profit of almost $90,000.
As a result of the 13 instances of insider trading alleged in the Complaint, LUCARELLI earned at least $538,215.32 in illicit proceeds. Furthermore, the FBI has discovered numerous additional trades that LUCARELLI conducted in LHA client securities and that exhibit a similar pattern of fraud. The FBI’s investigation is ongoing.
LUCARELLI is charged with 13 counts of securities fraud. The securities fraud counts each carry a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and thanked the SEC, which has filed civil charges in a separate action.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais and Damian Williams are in charge of the prosecution. Assistant U.S. Attorney Carolina Fornos of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture of assets.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Michael Lucarelli Complaint
Louisiana Psychiatrist and Five Others Sentenced in $258 Million Medicare Fraud SchemeRead the Press Release
BATON ROUGE, LA – A Louisiana psychiatrist was sentenced in federal court in Baton Rouge yesterday to serve 86 months in prison for his role in a $258.5 million Medicare fraud scheme involving partial hospitalization psychiatric services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division and Louisiana State Attorney General James Buddy Caldwell made the announcement.
ZAHID IMRAN, M.D., 56, of Baton Rouge, pleaded guilty on May 13, 2014, to count one in a superseding indictment charging him with conspiracy to commit health care fraud. In addition to his prison term, IMRAN was sentenced to serve two years of supervised release and ordered to pay $23.8 million in restitution, jointly and severally with his conspirators. IMRAN will also be ordered to forfeit an additional $23.8 million as illegal proceeds of the fraudulent scheme.
According to documents filed in the case, in 2011 law enforcement opened an investigation into three community mental health centers – Shifa Community Mental Health Center of Baton Rouge (Shifa), Serenity Center of Baton Rouge (Serenity) and Shifa Community Mental Health Center of Texas (Shifa Texas) – and has resulted in 17 convictions of individuals employed by the facilities, including therapists, marketers, administrators, owners and the medical director. The companies billed Medicare for partial hospitalization program services for the mentally ill that were unnecessary or never provided over a period of approximately seven years. The companies, collectively, submitted more than $258 million in claims to Medicare for partial hospitalization program services during this period. Medicare paid approximately $43.5 million on those claims.
IMRAN served as Shifa’s medical director and co-owner of Serenity Center and Shifa Texas. As part of the scheme, IMRAN would admit mentally ill patients to the facilities, some of whom were inappropriate for partial hospitalization. IMRAN would then re-certify these patients’ appropriateness for the program, in an effort to continue to bill Medicare for services. To support the fraudulent Medicare billing, IMRAN and others would falsify patient treatment records to reflect services on dates where no such services were provided.
IMRAN’s lengthy sentence follows the sentences imposed last week on five other defendants in the case, including several recreational therapists and an office administrator. Last week, Chief U.S. District Court Judge Brian A. Jackson sentenced the individuals as follows:
• SEDRA J. SIGNATER, age 48, of Baton Rouge, Louisiana. According to court documents, from 2008 forward, SIGNATER worked as an administrator at Shifa. On numerous occasions, SIGNATER would falsify documents, including patient records, group progress notes, and other medical documentation, to make it appear as though Shifa social workers had provided services and/or treatments to patients, despite the fact that the treatments had not been provided. On August 21, 2014, SIGNATER was sentenced to 3-year term of imprisonment, a 2-year term of supervised release following his release from imprisonment, and restitution in the amount of $23.8 million.
• ROBERT E. BOOKER, age 35, JUNE M. DURIO, age 50, JAMES J. MYER, age 42, and NANCY N. REED, age 45, all of Baton Rouge. At the direction of their supervisors, BOOKER, DURIO, MYER, and REED knowingly participated in the falsification of documents, including patient records, group progress notes, and other medical documentation, so that their supervisors could use the false documents to support false claims to Medicare. On August 22, 2014, each defendant was sentenced to serve a 2-year term of probation.
The case is being investigated by HHS-OIG, the FBI and the Medicaid Fraud Control Unit of the Louisiana Attorney General’s Office, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shubhra Shivpuri of the Middle District of Louisiana.
U.S. Attorney Green stated: “This case illustrates the enormity of this country’s healthcare fraud epidemic which is estimated to cause tens of billions of dollars in financial losses each year. In addition to financial losses, such fraud exposes patients to unnecessary medical treatments and compromises the integrity of their medical records by falsifying their medical status, treatments, and other important information. My great appreciation to the prosecutors and agents who worked tirelessly on this important matter. We will continue to devote the necessary resources to track down and aggressively pursue those who engage in health care fraud.”
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Las Cruces Man was Sentenced to Seventy-Eight Months for Violating Federal Drug and Fireram LawsRead the Press Release
ALBUQUERQUE – John Wade Crist, 57, of Las Cruces, N.M., was sentenced this morning in Las Cruces federal court for his conviction on methamphetamine trafficking and firearms charges. Crist will serve a 78-month prison sentence that will be followed by four years of supervised release.
Crist was arrested on Nov. 15, 2013, and a two-count indictment charging him with distribution of methamphetamine and being a felon in possession of a firearm. According to the indictment, Crist distributed methamphetamine and possessed a firearm in Doña Ana County, N.M., on June 19, 2013. At the time, Crist was prohibited from possessing firearms or ammunition because he previously had been convicted of two narcotics trafficking offenses.
On May 7, 2014, Crist entered a guilty plea to the indictment. In his plea agreement, Crist admitted selling 23.3 grams of methamphetamine to an undercover officer who was posing as a drug dealer on June 19, 2013, in Doña Ana County. Crist also admitted that on that same date, he possessed a shotgun and sold the firearm to the undercover officer.
This case was investigated by the Las Cruces office of the FBI and was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Lansdowne Man Charged with CounterfeitingRead the Press Release
Keith Scutching, 35, Lansdowne, PA, was charged by indictment, unsealed yesterday, with two counts of dealing in counterfeit currency, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 40 years in prison, a three-year period of supervised release, a $500,000 fine, a $200 special assessment, and the imposition of full restitution.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Click here to view the indictment
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, 215-861-8525KCK Man Indicted for Crashing into Barrier at Lake City Army Ammunition PlantRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was indicted by a federal grand jury today for ramming a stolen car into the checkpoint barrier at the Lake City Army Ammunition Plant.
Eric Keith Mendoza, 41, of Kansas City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Mendoza on Aug. 7, 2014.
Today’s indictment alleges that Mendoza damaged the barrier when he accelerated through the checkpoint at the Lake City Army Ammunition Plant on Aug. 7, 2014. Mendoza is also charged with entering the plant without authorization and with transporting a stolen vehicle across the state line from Kansas to Missouri.
According to an affidavit filed in support of the original criminal complaint, Mendoza was driving a stolen 1997 Cadillac Deville when he arrived at the Lake City installation’s primary entry gate. His identification was requested, the affidavit says, but Mendoza accelerated at a high rate of speed through the checkpoint onto the installation. Per standard operating procedure, security personnel activated the final denial barrier, which consists of an in-ground steel plate barrier which is activated in an emergency situation. The barrier rises out of the ground in order to stop an oncoming vehicle from gaining access to the installation. Prior to the barrier are two speed mitigation “humps” in the roadway to slow approaching vehicles. The barrier is equipped with signage and red lights which illuminate upon activation, allowing vehicles the opportunity to stop prior to impacting it.
Mendoza’s vehicle struck the barrier, rendering the vehicle inoperable and causing moderate damage to the barrier. Damage to the barrier is estimated up to $20,000.
Mendoza fled the accident scene on foot, the affidavit says, travelling southbound on the installation. The Independence, Mo., Police Department K-9 unit provided assistance and located Mendoza adjacent to an inner fence where he was apprehended without further incident.
According to the affidavit, during inventory of the vehicle prior to it being towed from the scene, three clear plastic bags containing a “user quantity” of a white crystalline substance were recovered from underneath the front edge of the driver’s seat. Mendoza told officers he had smoked methamphetamine the day before.
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 Linda Parker Marshall. It was investigated by the Department of the Army, the Independence, Mo., Police Department, the FBI and the Jackson County, Mo., Sheriff’s Department.KC Man Indicted for Laser StrikeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for aiming his laser pointer at a Kansas City, Mo, Police Department helicopter.
Jordon Clarence Rogers, 24, of Kansas City, was charged in an indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Rogers aimed the beam of a laser pointer at a Kansas City, Mo., Police Department helicopter on Oct. 8, 2013.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Brian P. Casey. It was investigated by the FBI.KC Man Indicted for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for robbing Bank of America.
Lorene Harris, 54, of Kansas City, Mo., was charged with bank robbery in an indictment returned by a federal grand jury in Kansas City. Today’s indictment replaces a federal criminal complaint that was filed against Harris on Aug. 6, 2014.
The indictment alleges that Harris stole $3,000 from Bank of America, 6320 Prospect Ave., Kansas City, on Aug. 4, 2014.
According to an affidavit filed in support of the original criminal complaint, Harris cut in front of everyone in line and told a teller to “give me the money.” The teller asked Harris if this was a robbery and he allegedly responded that he was robbing the bank. The teller asked if he had a “note or something,” the affidavit says, and Harris told the teller he could write a note. Harris requested a piece of paper, according to the affidavit, then passed the note and asked for the money. However, when the teller put about $5,000 dollars on the counter, Harris allegedly told her to give him less. The teller took approximately $2,000 back and Harris allegedly took the remaining money.
Harris then asked what he should do next, the affidavit says. He indicated he would wait outside; however; he fled from the bank on foot.
Harris was identified after bank surveillance photos appeared on the news. The following day, Harris was arrested by Raytown, Mo., police officers who were dispatched with paramedics to a convenience store. According to the indictment, Harris, who was complaining of chest pains, told officers he robbed Bank of America the day before.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Bruce E. Clark. It was investigated by the FBI and the Kansas City, Mo., Police Department.KC Man Charged with Craigslist Robberies, ShootingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been charged in federal court for his role in a conspiracy to commit armed robberies against victims who were contacted via craigslist.
Debvon Buckner, 23, of Kansas City, was charged in a three-count criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Aug. 20, 2014. Buckner had his initial court appearance today.
The federal criminal complaint alleges that Buckner participated in a conspiracy with others to commit robberies of several individuals by posting false advertisements on craigslist between June 30 and July 17, 2014. In addition to the conspiracy, Buckner is charged with one count of armed robbery, which he allegedly committed by falsely posting a motor vehicle for sale on craigslist in order to arrange a meeting with three victims on July 16, 2014. Buckner is also charged with one count of discharging a firearm during a crime of violence (the armed robbery on July 16, 2014).
According to an affidavit filed in support of the federal criminal complaint, Buckner was involved in five robberies in which craigslist ads were used to lure victims, who were robbed at gunpoint by Buckner’s co-conspirators, who have not been charged and are not identified in the court documents.
July 16, 2014, Armed Robberies
On the evening of July 16, 2014, the affidavit says, three victims met Buckner at 5500 E. 84th Terrace, Kansas City, Mo., to look at a Hyundai Sonata that was listed for sale in a craigslist advertisement. Two of the victims took a test drive in the vehicle with Buckner, the affidavit says, and one of them made a purchase offer. Buckner allegedly agreed, but stated he needed to call his wife about the purchase and walked away. As he walked away, the affidavit says, two other men with handguns approached the two victims and asked for money. The victims tried to return to their car when the two men shot them. The men took one victim’s purse, which contained $500. They jumped into the Sonata with Buckner and fled the area. One of the victims was transported to a local hospital for life-threatening injuries from multiple gunshot wounds.
According to the affidavit, the telephone number used to contact the victims was the same number used to contact a separate victim in another armed robbery earlier the same day.
On the afternoon of July 16, 2014, this victim (identified as Victim#4 in the affidavit) told police that he had listed an XBOX One for sale on craigslist. He arranged to meet a prospective buyer at Ridge Pointe Apartments in Kansas City, Mo. When he arrived, the affidavit said, Buckner approached him and asked to see the XBOX. The victim handed the XBOX to Buckner. Two other men then came up behind Buckner, the affidavit says. One of those men lifted his shirt, pulled out a black semi-automatic handgun and stated, “Give me the connections.” The other approaching male also had a gun. Victim #4 then gave the men the XBOX accessory cords, two remote controllers, and two video games. The three men then fled the area on foot.
The next day, Kansas City Police detectives saw another craigslist advertisement for a car for sale that used the same telephone number. In the background of the photograph was a residence, which the detectives later identified as Buckner’s residence. They obtained location data for the cell phone and set up surveillance in the area of East US 40 Highway and Sterling. When Buckner boarded a metro bus, police officers took him into custody.
In addition to the two robberies on July 16, 2014, victims from three earlier robberies also identified Buckner.
June 30, 2014, Armed Robbery
One victim met Buckner on June 30, 2014, to purchase a cell phone that was advertised on craigslist, the affidavit says. She decided not to purchase the phone and began to walk away, according to the affidavit, when two other men approached her, pointed guns at her and told her to give them money. She gave the men $100. They then demanded her car keys, cellphone and purse. She pressed the panic button on her car keys and the alarm sounded, the affidavit says, and all three of the men ran.
June 30, 2014, Armed Robbery #2
Another victim met Buckner later that night on the same date, according to the affidavit. She told police officers that she had been contacted about purchasing an XBOX One that she had posted for sale on craigslist. When she arrived at Ridge Pointe Apartments, Buckner showed her that he had cash to make the purchase. As soon as she took out the XBOX, he allegedly took it and ran. Two other men, armed with handguns, then approached her and pointed the guns at her and a passenger in her vehicle. The men took their purses, along with video games and controllers for the XBOX. The passenger asked for her purse back, and one of the men said, “Get back in the car or I’ll shoot you” and racked the slide on his gun.
July 3, 2014, Armed Robbery
On July 3, 2014, another victim told police that he had been robbed while trying to buy an XBOX from a craigslist advertisement. The victim met Buckner at Ridge Pointe Apartments, the affidavit says, after he had agreed to give him $160 and a Samsung Galaxy watch to buy the XBOX. Buckner refused to do the deal, the affidavit says, and the victim began walking back to his car when he was approached by another man pointing a gun at him. While this man pointed the gun at him, another man he had been talking to came over and frisked the victim. The two men took the watch and the cash, and then fled.
Dickinson cautioned that the charges contained in this complaint 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. Attorneys Matthew P. Wolesky and Jess E. Michaelsen. It was investigated by the FBI and the Kansas City, Mo., Police Department.Justice Department Sues to Stop Chicago-Area Woman and Her Businesses from Preparing Tax ReturnsRead the Press Release
The United States filed a complaint in federal court in Chicago to bar Laurie G. Helfer, aka Laurie G. Powell, individually and through her businesses Laurie’s Freelance & Tax Preparation Services and Tax Lady Laurie Inc., from preparing federal tax returns for others, the Justice Department announced today.
The complaint alleges that Helfer prepares and files amended tax returns for individuals claiming refunds that they are not legally entitled to receive. According to the complaint, Helfer has prepared hundreds of amended tax returns for customers in the Chicago area and the tax loss to the U.S. Treasury as a result of her fraudulent conduct could exceed $3 million.
According to the civil injunction complaint, Helfer promises her customers that she can obtain tax refunds for them by amending their tax returns from prior years. To do this, Helfer allegedly fabricates expenses from businesses that do not exist and enters those expenses on a Schedule C-Profit or Loss From Business that she files with her customers’ amended tax returns. The complaint alleges that the expenses offset her customers’ income from prior years and illegally generates a refund. The complaint further alleges that Helfer also prepares original returns for customers during tax-filing season using this same scheme to generate a refund. In an attempt to avoid detection by the Internal Revenue Service (IRS), Helfer stopped signing the tax returns that she prepares and also frequently changes the locations in which she prepares customers’ tax returns, including various Chicago-area hotel rooms, the complaint alleges.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2014 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Laurie G. Helfer, etc. et al.
Complaint for Permanent Injunction and Other ReliefJury Finds Two Men Guilty of Methamphetamine ConspiracyRead the Press Release
TULSA, Okla. — On Friday, a federal jury found Samuel Garcia-Escalera, 36, and Joel Deloera-Escalera, 34, guilty of conspiring to distribute and possess with the intent to distribute 15 kilograms or more of methamphetamine; maintaining drug-involved premises; possession of firearms and ammunition; and being aliens illegally in the United States after deportation; announced United States Attorney Danny C. Williams Sr., for the Northern District of Oklahoma.
The second Superseding Indictment was filed on April 14, 2014, and unsealed on April 15, 2014. United States District Judge Claire V. Eagan, who presided over the trial, scheduled the sentencings on November 24, 2014, for Joel Deloera-Escalera, and November 25, 2014, for Samuel Garcia-Escalera.
According to court documents, from April 2012 to August 2013, Garcia-Escalera and Deloera-Escalera conspired to distribute and possess with intent to distribute 15 kilograms or more of methamphetamine. The jury also found Garcia-Escalera and Deloera-Escalera guilty of maintaining houses for the purpose of storing and distributing methamphetamine, and possession of firearms and ammunitions while being aliens illegally and unlawfully in the United States. Specifically, Garcia-Escalera was found guilty of possessing a .45 caliber pistol; and Deloera-Escalera was found guilty of possessing a .40 caliber pistol, 9mm caliber semi-automatic pistol, a .22 caliber revolver, and various ammunitions. Garcia-Escalera was also found guilty of possessing a .45 caliber pistol in furtherance of a drug trafficking crime.
In a separate criminal information, Garcia-Escalera pleaded guilty to attempting to corruptly persuade others with the intent to prevent witnesses from testifying in the trial. He faces up to 20 years in prison and a $250,000 fine.
At the time of sentencing, the defendants face up to life in prison and up to a $10,000,000 fine for the drug conspiracy; up to 20 years in prison and a $500,000 fine for maintaining a drug-involved premise; up to 10 years in prison and a $250,000 fine for possession of firearms and ammunition as illegal aliens. Garcia-Escalera also faces up to life in prison and a $250,000 for possession of a firearm in furtherance of a drug trafficking crime.
As a part of their sentence, the defendants face entry of a forfeiture money judgment in the amount of at least $1,750,000. The judgment represents proceeds obtained as a result of the methamphetamine conspiracy.The case was investigated by the Tulsa Police Department, Oklahoma Bureau of Narcotics, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and prosecuted by Assistant U.S. Attorneys Gary L. Davis II, Jan Reincke, and Catherine Depew on behalf of the United States.
U.S. v. Samuel Garcia-Escalera and Joel Deloera-Escalera
Henry Fellela, Jr. Sentenced to Federal Prison for Credit Card Fraud, Social Security Fraud and Aggravated Identity TheftRead the Press Release
PROVIDENCE, R.I. – Henry A. Fellela, Jr., 56, of Johnston, was sentenced today to 48 months in federal prison for making nearly $83,000 in purchases with the use of stolen credit cards belonging to 17 individuals and fraudulently collecting more than $58,000 in Supplemental Security Income benefits by falsely claiming that he had no permanent home address while living with his wife and children in their Johnston residence.
Fellela’s sentence is announced by United States Attorney Peter F. Neronha; Smithfield Police Chief Richard P. St. Sauveur, Jr.; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
According to court documents and information presented to the court, an investigation initiated by Smithfield Police and U.S. Postal Inspectors in September 2010 revealed that Fellela stole a credit card from the mailbox of an 85-year-old Smithfield resident and used that person’s identity and stolen credit card to make several purchases, including electronic goods, clothing and gasoline, totaling $3,077.13. As the investigation broadened, it was determined that between 2008 and 2012, the defendant activated credit cards belonging to sixteen other individuals and made numerous purchases, including high-end consumer items and gift cards. In total, Mr. Fellela made unauthorized purchases using stolen credit cards totaling $82,991.60.
In addition, according to information presented to the court, an investigation by the Social Security Administration Office of the Inspector General/Office of Investigations determined that three months after Fellela was released from federal prison in March 2004 to begin serving a 21-month term of supervised release on an unrelated matter, and continuing until about June 1, 2012, Fellela fraudulently collected Supplemental Security Income benefits totaling $58,207.34, after falsely reporting that he had no permanent address at the time he applied for and received the benefits. The investigation revealed that Fellela collected the benefits while living with his wife and children in their Johnston residence.
United States Attorney Peter F. Neronha commented “The conduct by the defendant here was so brazen and so low that it makes it difficult to know where to begin. Does it get any worse than stealing the identity and credit card of an 85 year old person to feed your own greed? Does it get any worse than claiming homelessness, a real problem for so many Rhode Islanders, and collecting thousands of undeserved dollars while living in comfort and enjoying high-end consumer goods? If ever a defendant deserved a long prison sentence, it is this one.”
“The Smithfield Police are thankful for the assistance provided by the U.S. Postal Inspection Service in investigating this crime committed against one of our elderly residents,” said Smithfield Police Chief Richard P. St. Sauveur, Jr. “The successful investigation and ultimate prosecution of Mr. Fellela by the United States Attorney should serve as evidence that the entire criminal justice system works, and will continue to work tirelessly to hold accountable those individuals who engage in fraudulent activity and demonstrate no regard for the financial impact that their crimes have on victims.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Fellela to serve 3 years of supervised release upon completion of his prison term. Fellela pleaded guilty on April 8, 2014, as charged in a five-count indictment, to one count each of credit card fraud, aggravated identity theft and Social Security fraud, and two counts of theft of government funds.
Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service Boston Division said, “The U.S. Postal Inspection Service is committed to working with our partners to bring to justice those who would victimize the elderly and steal from some of the very programs designed to help those in need.”
“Making false statements to Social Security to fraudulently collect Supplemental Security Income—a government payment intended to assist those truly in need—is an intolerable offense on its own, yet Mr. Fellela was also found to have committed tens of thousands of dollars of credit card fraud,” said Social Security OIG Special Agent-in-Charge Scott Antolik. “Our office will continue to partner with the United States Attorney’s Office in Rhode Island to pursue all forms of fraud against Social Security's programs, especially instances of SSI fraud.”
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
###
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]Halethorpe Man Sentenced to 9 Years in Prison for Distribution of Child PornographyRead the Press Release
Shared Child Pornography Files Using Neighbor’s Wireless Connection to
Avoid Detection by Law Enforcement
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Kevin Francis Kelley, age 45, of Halethorpe, Maryland, today to nine years in prison, followed by 20 years of supervised release, for distribution of child pornography. Judge Hollander ordered that upon his release from prison, Kelley must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Judge Hollander also ordered Kelley to pay restitution of $3,000.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Kelley was sharing child pornography using a file sharing program he downloaded from the internet. On October 13, 2013, an undercover Baltimore County Police detective downloaded a video file Kelley was sharing that depicted a prepubescent child engaged in sexually explicit conduct. Investigation revealed that Kelley was using a neighbor’s IP address, which he was able to access because he had helped them set up the password for their wireless router. Kelley admitted that he used his neighbor’s wireless connection to avoid detection by law enforcement. Kelley further admitted that he had been collecting child pornography for over 10 years and possessed “thousands” of child pornography images and videos that were saved on his computers and hard drives. Kelley advised law enforcement that he categorized his child pornography in various ways to include by sex act, age of child and name of child.
A preliminary forensic analysis of just one computer and hard drive of Kelley’s three computers and four external hard drives contained over 63,000 image files and 950 video files of child pornography, including prepubescent minors and images depicting sadistic or masochistic conduct or other depictions of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, the Baltimore County Police Department and the Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Greenvillle Man Guilty of Impeding Border PatrolRead the Press Release
LAREDO, Texas – Joe Adam Vega, 25, has entered a guilty plea to two counts of Impeding agents at the Border Patrol checkpoint just north of Laredo for refusing to comply with instructions, announced U.S. Attorney Kenneth Magidson. Vega, of Greenville, pleaded guilty in Laredo federal court yesterday afternoon.
According to court records and statements made at yesterday’s proceeding, Vega arrived at the checkpoint on July 29, 2014. Agents directed Vega to move away from the primary inspection lane and drive to the secondary inspection area after a canine had alerted to the presence of drugs or hidden persons in the vehicle's trunk. He refused.
He was ordered to move several times by the agent and a supervising agent. He continued to refuse. He said he wanted to go on his way without permitting the additional inspections. Agents warned him that he would be arrested for violations of impeding federal officers if he did not move as directed. He again insisted that he wanted to drive away without inspection.
His passenger locked the driver's door and attempted to roll up the car's windows. Agents forcibly removed both occupants from the vehicle and arrested them.
Sentencing has been set for Dec. 3, 2014, at which time he faces up to a year in prison and/or a possible $100,000 fine.
The case was investigated by Border Patrol and Homeland Security Investigations. Assistant U.S. Attorney Raul Guerra is prosecuting.
Former VA Employee Sentenced to 5 Years in Prison for Defrauding the Government of over $450,000Read the Press Release
DUBLIN, GA – LORETTA SMITH, 41, of Glenwood, Georgia, was sentenced in last week by Senior U. S. District Court Judge Dudley H. Bowen to serve 5 years in prison for defrauding the U. S. Department of Veterans Affairs (“VA”) through fraudulent worker’s compensation claims.
According to the evidence presented during the guilty plea and sentencing hearings, SMITH, while employed with the VA in Dublin as a nurse, submitted bogus worker’s compensation claims to the Department of Labor from 2009 through 2013. SMITH falsely claimed costs for travel which she did not make, and falsely claimed costs for medical treatment which she did not receive. As a result of her bogus claims to the Department of Labor, SMITH received more than $450,000 to which she was not entitled.
United States Attorney Edward Tarver stated, “This defendant, who was hired by the federal government to help those in need, chose, instead, to help herself to taxpayer money she wasn’t entitled to receive. This sentence sends this strong message to those who would lie and cheat to get taxpayer money: you can expect to spend years in a federal prison.”
Upon her release from prison, SMITH will serve 3 years of supervised release. Additionally, she was sentenced to pay $454,000 in restitution and a $454,000 forfeiture judgment.
The case was investigated by Special Agents with the Department of Labor, Office of Inspector General and the Department of Veteran’s Affairs, Office of Inspector General. Assistant U. S. Attorney Carlton Bourne prosecuted the case on behalf of the United States.
Former Technology Director for City of Lenexa Charged with Wire Fraud, TheftRead the Press Release
KANSAS CITY, KAN. - The former technology director for the City of Lenexa appeared in U.S. District Court here Monday on charges of wire fraud and theft, U.S. Attorney Barry Grissom said.
Andrew L. Davey, 44, Overland Park, Kan., is charged with five counts of wire fraud and one count of theft of government funds. The indictment alleges that Davey used city funds to buy electronic devices that he then sold on e-Bay. The indictment alleges Davey was responsible for stealing more than $98,800 worth of merchandise from the city including digital cameras and Apple MacBook computers.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each wire fraud count, and a maximum penalty of 10 years and a fine up to $250,000 on the theft charge. The Lenexa Police Department and the FBI investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Former Superindendent Sentenced for Misappropriating Department of Education FundsRead the Press Release
JOHNSTOWN, Pa. - A resident of North Salt Lake, Utah, has been sentenced in federal court to five years probation, including 10 months of home detention with electronic monitoring, 500 hours of community service, and $49,600 in restitution on his conviction of federal program theft, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Dr. Dennis L. Bruno, 63, the former Superintendent of Glendale School District, and now of North Salt Lake, Utah.
According to information presented to the court, from Oct. 3, 2005, to July 18, 2006, Bruno, in his capacity as Superintendent of Glendale School District, intentionally misapplied $49,600 of federal funds from the Fund for the Improvement of Education program, a program funded by the United States Department of Education.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Pennsylvania Office of the Auditor General Special Investigations Office, the United States Department of Education Office of Inspector General, and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Bruno.
Former Hastings Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Todd Tackwell, age 39, formerly of Lincoln, Nebraska, was sentenced on August 26 in Lincoln, Nebraska, to 13 years in prison by United States Senior District Judge Richard G. Kopf, for receipt and distribution of child pornography. After his release from prison, Tackwell will be required to serve a life term of supervised release and be registered as a sex offender.
Tackwell came to the attention of law enforcement through an investigation initiated by Immigration and Customs Enforcement into a criminal organization which was operating a commercial child pornography website. Tackwell was determined to be a subscriber to the website. In August of 2008 investigators contacted Tackwell at his residence in Hastings, at which time Tackwell admitted he possessed child pornography on his computer. An indictment was filed in the District of Nebraska in 2010, as a result of a forensic examination of Tackwell’s computer hard drive which revealed videos depicting sexually explicit conduct of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Adams County Sheriff, Nebraska State Patrol, and Immigrations and Customs Enforcement.
- Former Fugitive Faces Numerous Charges Including Hostage Taking Related to an Alleged Murder
Former DeKalb County Commissioner Charged with Stealing County FundsRead the Press Release
ATLANTA – Elaine Boyer, the former Commissioner of District 1 in DeKalb County, Ga., has been arraigned on charges relating to her embezzlement of county funds and misuse of her DeKalb County credit card.
“As an elected County Commissioner, Ms. Boyer had a duty to serve the best interests of the citizens of DeKalb County,” said United States Attorney Sally Quillian Yates. “Instead of honoring that commitment, Ms. Boyer stole from the citizens she was sworn to serve by diverting thousands of dollars in county funds to her personal bank account and using her county-issued credit card like it was her own.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption based investigations often stem from actions that would be seen as clearly improper and illegal to the average person. The charges in this case, however, reflect criminal actions of a twenty-two year veteran DeKalb County Commissioner who knew fully the nature of her actions and she will now face the consequences of those actions. The FBI places a high priority toward investigating allegations of public corruption due to the extensive harm that it can cause on many levels and we ask that anyone with information regarding such allegations to please contact their nearest FBI field office.”
According to United States Attorney Yates, the charges, and other information presented in court: In DeKalb County, Ga., the Board of Commissioners (“BOC”) serves as the legislative branch of the DeKalb County Government. The BOC is comprised of seven part-time commissioners, who are elected to serve four-year terms. Each of the seven Commissioners is responsible for the management of their respective offices, which includes controlling the offices’ budget and hiring staff members, contractors, and consultants. In recent years, the operating budget for a Commissioner’s office has been approximately $250,000 per year. The Commissioners may use their budget only for county-related business.
Since 1992, Ms. Boyer served as the Commissioner of District 1, which serves citizens in north DeKalb County, including in Brookhaven, Dunwoody, Tucker, and Smoke Rise, Ga. Among other responsibilities, Ms. Boyer sat on the BOC’s Finance, Budget, and Audit Committee and was the Chairwoman of the Employee Relations and Community Services Committee. Boyer’s term of office was to expire in 2016; however, Boyer resigned yesterday.
In September 2009, as the Commissioner of District 1, Ms. Boyer retained an individual (“Advisor”) supposedly to assist her with government consulting and advisory duties on issues that affected her constituents. From September 2009 to November 2011, false invoices were submitted to Ms. Boyer’s office for consulting services purportedly rendered by Advisor. In fact, Advisor performed no services for Ms. Boyer, District 1 constituents, or DeKalb County. Ms. Boyer used the false invoices as a basis to authorize payments to Advisor. Based on requisition requests from Ms. Boyer, DeKalb County mailed approximately 35 checks to Advisor for consulting services that were never performed. In total, DeKalb County paid Advisor more than $78,000, believing that legitimate services had been performed for the county.
After being paid by DeKalb County, Advisor funneled approximately 75% of the money received from DeKalb County into Ms. Boyer’s personal bank account. Between September 2009 and November 2011, Advisor deposited more than $58,000 in DeKalb County funds into Ms. Boyer’s personal bank account (while retaining the remainder of the money). In turn, Ms. Boyer used the money deposited into her account to pay personal expenses, including purchases at hotels and high-end department stores.
Additionally, in her capacity as a Commissioner, DeKalb County issued Ms. Boyer a Visa Purchasing Card (“P-Card”) to make county-related purchases. On January 14, 2010, she signed a Cardholder Users’ Agreement stating she would not use the P-Card to make personal purchases.
From October 2010 to February 2014, Ms. Boyer made more than 50 personal purchases on her P-Card, including purchasing airline tickets and hotel rooms for herself and her family for personal travel. In total, she made over $15,000 worth of purchases on her P-Card for personal goods and services.
Elaine Boyer, 57, of Stone Mountain, Ga., was charged via Criminal Information with conspiring to committed mail fraud and with wire fraud. She is scheduled to plead guilty at 3:00 p.m., on September 3, 2014, before U.S. District Court Judge Orinda D. Evans.
Members of the public are reminded that the information only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Federal Bureau of Investigation.
Assistant United States Attorneys Jeffrey W. Davis and Kurt R. Erskine are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Acting HHS Cyber Security Director Convicted for Engaging in Child Pornography EnterpriseRead the Press Release
The former acting director of cyber security at the U.S. Department of Health and Human Services was convicted by a federal jury in the District of Nebraska today of engaging in a child exploitation enterprise, conspiracy to advertise and distribute child pornography, and accessing a computer with intent to view child pornography in connection with his membership in a child pornography website.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska and Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division made the announcement.
Timothy DeFoggi, 56, formerly of Germantown, Maryland, is the sixth individual to be convicted as part of an ongoing investigation targeting three child pornography websites. The three websites were run by a single administrator, who has since been convicted in the District of Nebraska of engaging in a child exploitation enterprise in connection with his administration of the sites.
According to evidence presented at trial, DeFoggi registered as a website member on March 2, 2012, and maintained his membership and activity until Dec. 8, 2012, when the website was taken down by the FBI. Through the website, DeFoggi accessed child pornography, solicited child pornography from other members, and exchanged private messages with other members where he expressed an interest in the violent rape and murder of children. DeFoggi even suggested meeting one member in person to fulfill their mutual fantasies to violently rape and murder children.
The jury reached its verdict following a four-day trial before U.S. Chief District Judge Laurie Smith Camp. Sentencing is scheduled for Nov. 7, 2014.
This case is a result of investigative efforts led by the FBI’s Omaha Field Office, Violent Crimes Against Children Section, Major Case Coordination Unit, and Digital Analysis and Research Center. This case was prosecuted by Trial Attorneys Keith Becker and Sarah Chang of the Criminal Division’s Child Exploitation and Obscenity Section, along with Assistant U.S. Attorney Michael P. Norris of the U.S. Attorney’s Office for the District of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the 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 www.projectsafechildhood.gov.Former Acting HHS Cyber Security Director Convicted for Engaging in Child Pornography EnterpriseRead the Press Release
WASHINGTON – The former acting director of cyber security at the U.S. Department of Health and Human Services was convicted by a federal jury in the District of Nebraska today of engaging in a child exploitation enterprise, conspiracy to advertise and distribute child pornography, and accessing a computer with intent to view child pornography in connection with his membership in a child pornography website.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska and Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division made the announcement.
Timothy DeFoggi, 56, formerly of Germantown, Maryland, is the sixth individual to be convicted as part of an ongoing investigation targeting three child pornography websites. The three websites were run by a single administrator, who has since been convicted in the District of Nebraska of engaging in a child exploitation enterprise in connection with his administration of the sites.
According to evidence presented at trial, DeFoggi registered as a website member on March 2, 2012, and maintained his membership and activity until Dec. 8, 2012, when the website was taken down by the FBI. Through the website, DeFoggi accessed child pornography, solicited child pornography from other members, and exchanged private messages with other members where he expressed an interest in the violent rape and murder of children. DeFoggi even suggested meeting one member in person to fulfill their mutual fantasies to violently rape and murder children.
The jury reached its verdict following a four-day trial before U.S. Chief District Judge Laurie Smith Camp. Sentencing is scheduled for Nov. 7, 2014.
This case is a result of investigative efforts led by the FBI’s Omaha Field Office, Violent Crimes Against Children Section, Major Case Coordination Unit, and Digital Analysis and Research Center. This case was prosecuted by Trial Attorneys Keith Becker and Sarah Chang of the Criminal Division’s Child Exploitation and Obscenity Section, along with Assistant U.S. Attorney Michael P. Norris of the U.S. Attorney’s Office for the District of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the 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 www.projectsafechildhood.gov.
Florida Oxycodone Trafficker Enters Federal Guilty PleaRead the Press Release
Charleston, W.Va. – A Florida man who possessed oxycodone and other prescription drugs during a December 2011 traffic stop in Summersville, West Virginia pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Gregory Leandre, 31, of Naples, Florida pleaded guilty to possession with intent to distribute oxycodone in federal court in Charleston.
On December 29, 2011, Leandre and another man were stopped by police in Summersville after receiving a tip from a local resident. The men were found in possession of approximately 831 oxycodone and 117 hydrocodone pills. At the plea hearing, Leandre told the Court he intended to distribute the pills.
Leandre made his appearance in U.S. District Court after serving prison time in Florida on an unrelated drug conviction. He faces up to 20 years in prison when he is sentenced on December 9, 2014.
The Summersville Police Department conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
ExxonMobil Pipeline Company to Pay Civil Penalty Under Proposed Settlement for Torbert, Louisiana, Oil SpillRead the Press Release
ExxonMobil Pipeline Company (ExxonMobil) has agreed to pay a civil penalty for an alleged violation of the Clean Water Act stemming from a 2012 crude oil spill from ExxonMobil’s “North Line” pipeline near Torbert, Louisiana, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Under the consent decree lodged today in federal court, ExxonMobil will pay $1,437,120 to resolve the government’s claim.
The United States’ complaint, which was also filed today in the U.S. District Court for the Middle District of Louisiana, alleges that ExxonMobil discharged at least 2,800 barrels (or 117,000 gallons) of crude oil in violation of Section 311 of the Clean Water Act. On April 28, 2012, ExxonMobil’s 20/22-inch-diameter pipeline ruptured near Torbert, about 20 miles west of Baton Rouge, and crude oil spilled into the surrounding area and flowed into an unnamed tributary connected to Bayou Cholpe.
“Oil spills into our nation’s waters endanger public health and the environment and warrant concerted enforcement efforts,” said Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today’s settlement achieves a just result and furthers our enforcement mission.”
“All businesses have an obligation to protect their workers, the local community and the environment in which they operate,” said Cynthia Giles, Assistant Administrator for Enforcement and Compliance Assurance at EPA. “EPA is committed to protecting communities by enforcing laws that reduce pollution in local waterways.”
The $1.4 million penalty is in addition to the costs incurred by ExxonMobil to respond to the oil spill and to replace the segment of ruptured pipeline. ExxonMobil is completing cleanup actions pursuant to an administrative order issued by the Louisiana Department of Environmental Quality. The company also continues to do follow-up work and to operate under a Corrective Action Order issued by the United States Department of Transportation, Pipeline and Hazardous Materials Safety Administration.
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Fund Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged in the Middle District of Louisiana, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html .Erie Man Sentenced to 9 Years in Prison for Drug, Gun Law ViolationsRead the Press Release
ERIE, Pa. - A former resident of Erie Pennsylvania, has been sentenced in federal court to 111 months in jail on his conviction of violating federal firearms and drug laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Shawn I., McCrorey, 46.
According to information presented to the court, on January 5, 2013, McCrorey was found in possession of cocaine and a handgun, and a second hangun was found in his residence. Also, McCrorey obtained one of the handguns in December 2012, after lying to a local gun store about his identity and lying that he had no prior felony conviction. McCrorey, known by several aliases, was convicted in 1994 for the crime of delivery of cocaine under the name William Dean, and is therefore prohibited from firearm possession.
Prior to imposing sentence, Judge Cohill commented on the seriousness of the offense and the defendant’s possession of a firearm in furtherance of the drug distribution offense. In addition, Judge Cohill found that the defendant had obstructed justice by lying to the probation officer and the court about his identity. According to information provided to the court, McCrorey has used multiple aliases throughout his criminal history, and evidence revealed that the defendant is actually Jorge Soto.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office Bureau of Narcotics Investigation, and the Erie Bureau of Police for the investigation leading to the successful prosecution of McCrorey.
Eagle Butte Woman Charged with Theft from an Indian Tribal OrganizationRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Theft from an Indian Tribal Organization.
Rhonda Uses Many, age 47, was indicted on March 11, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 14, 2014, and pled not guilty to the Indictment. The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Uses Many is alleged to have willfully and unlawfully stolen, embezzled, misapplied and converted to her own use over $1,000 of the monies, funds and assets belonging to the Cheyenne River Sioux Bingo Hall in February 2012. The charges are merely an accusation and Uses Many is presumed innocent until and unless proven guilty.The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Uses Many was released on bond pending trial. Trial has not been set.
Eagle Butte Man Sentenced for Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on August 12, 2014, by U.S. District Judge Roberto A. Lange.
William Pay Pay, age 52, was sentenced to 12 months and 1 day of custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Pay Pay was indicted by a federal grand jury on February 12, 2014, and pled guilty on May 29, 2014, to Assaulting, Resisting and Impeding a Federal Officer.
The conviction arose from a December 2013 incident when Pay Pay forcibly resisted arrest by a Cheyenne River Sioux Tribal Police Officer, resulting in physical contact with the officer. The physical contact occurred while the officer was employed by the Cheyenne River Sioux Tribe Police Department, under contract with the Bureau of Indian Affairs.The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Pay Pay was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Department of Justice Releases Second Report to Congress on Indian Country Investigations and ProsecutionsRead the Press Release
The Department of Justice released today its second report to Congress entitled Indian Country Investigations and Prosecutions, which provides a range of enforcement statistics required under the Tribal Law and Order Act of 2010, as well as information about the progress of the Attorney General’s initiatives to reduce violent crime and strengthen tribal justice systems.
The report, based on data compiled from the case management system used by U.S. Attorney’s Offices (USAO), shows prosecutors in 2013 continued to bring substantial numbers of cases to federal court (a 34 percent increase over FY 2009 numbers) and prosecute a substantial majority of all cases referred to them. Of the cases that were declined for federal prosecution, most were declined for insufficient evidence or because they were referred to another prosecuting authority, such as the tribe, for potential prosecution.
“As detailed in this report, the Department of Justice is making good on our commitment to strengthen cooperation with sovereign tribes, reduce violent crime, and ensure justice for every individual,” said Attorney General Eric Holder. “From our work to empower Indian women under the landmark Violence Against Women Reauthorization Act, to the task force we established to safeguard children in Indian country from violence and abuse, we have made significant strides – in close partnership with tribal nations – to bolster the safety and security of all American Indian and Alaska Native communities. As we move forward, we will continue to expand on this critical work; to deepen our ongoing efforts; and to reaffirm our dedication to the promise of equal rights, equal protection, and equal justice for all.”
Although declination rates are an imperfect means of evaluating the effectiveness of criminal justice in Indian country or elsewhere, the report shows that with few exceptions, areas where the largest populations of American Indian people live and suffer from the most serious crime rates, such as the Southwest and the northern plains states (which together handled approximately 70 percent of the 2,542 cases resolved in 2013), federal declination rates were the lowest in the nation. For instance, South Dakota had the second to highest number of cases resolved in the country last year, 470 cases, and one of the lowest declination rates of 26 percent. Arizona resolved the highest number of cases, 733 cases, and had a declination rate of 28 percent.
Associate Attorney General Tony West announced the findings in remarks to the Four Corners Indian Country Conference today on the Navajo Nation in Flagstaff, and met separately with the Attorney General’s advisory subcommittee on Native American issues to discuss the report, among other matters.
“We are witnessing an unprecedented era of collaboration among U.S. Attorneys’ offices and tribal law enforcement and prosecutors across the country,” said Associate Attorney General West. “This report shows the fruits of this continuing partnership between the federal government and American Indian tribes, including enhancing training and capacity building for tribal court systems and improving responses to victims in Indian country.”
“Over the past five years, the Justice Department and our tribal partners have taken important steps forward on our journey toward a safer Indian Country,” said Timothy Purdon, U.S. Attorney for the District of North Dakota and chair of the Attorney General’s advisory subcommittee on Native American issues. “Vigorous enforcement of federal laws is vitally important to strengthening public safety on American Indian reservations. We are pleased to see in this report that U.S. Attorney’s Offices across the country continue to work hard to remove the most dangerous offenders and work closely with tribal law enforcement and prosecutors. These promising numbers are the direct result of this enhanced communication and collaboration.”
“The FBI continues to be committed to public safety in Indian Country,” said FBI Assistant Director Joseph S. Campbell. “Our partnership with federal, state, local, and tribal agencies remains strong as we continue to aggressively address violent crime and victimization in tribal communities.”
The information contained in the report shows the following:
- The Justice Department’s prioritization of Indian country crime has continued to result in substantial numbers of prosecutions, despite resource constraints that impacted the U.S. Attorney community in 2013. Between FY 2009 and FY 2012, the number of cases the department filed against defendants in Indian country increased nearly 54 percent. In FY 2013, due to fiscal challenges, overall case filings in Indian country declined somewhat compared to FY 2012, but still remained 34 percent above the number of cases filed when the department first began its department-wide tribal justice initiative in 2009. Notwithstanding the fiscal impact of the sequester, reduced budgets, and a hiring freeze, federal agents and prosecutors continued to focus their efforts on improving public safety in Indian country.
- A substantial majority of Indian country criminal investigations opened by the FBI were referred for prosecution.
- A substantial majority of Indian country criminal cases opened by the United States Attorneys’ Offices were prosecuted.
- USAO data for CY 2013 show that 34 percent (853) of all Indian country submissions for prosecution (2,542) were declined for prosecution. In CY 2012, USAOs declined approximately 31 percent (965) of all (3145) Indian country submissions for prosecution. USAO data for CY 2011 indicate that just under 37 percent (1,041) of all Indian country submissions for prosecution (2,840) were declined.
- The most common reason for declination by USAOs was insufficient evidence (56 percent in CY 2013, 52 percent in CY 2012, and 61 percent in CY 2011).
- The next most common reason for declination by USAOs was referral to another prosecuting authority (21 percent in CY 2013, 24 percent in CY 2012, and 19 percent in CY 2011).
The most common reason FBI Indian country investigations were closed administratively without referral for prosecution was that the investigation concluded that no federal crime had occurred.
- For instance, all but 30 of the 164 death investigations the FBI closed administratively in CY 2013 were closed because the FBI established that the death was due to causes other than homicide – i.e., accidents, suicide, or death from natural causes.
Other important developments in FY 2013:
VAWA Pilot Projects
The fight against domestic violence in Indian country has been an especially important priority for the Department of Justice, and in 2013, Congress and this administration took an historic step forward with the passage of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013), which the President signed into law on March 7, 2013.
Congress, in VAWA 2013, provided new tools to fight domestic violence in Indian country, and the department spared no time utilizing them. From the date the act took effect, March 7, 2013, through the end of fiscal year 2013, U.S. Attorneys with prosecutorial responsibilities in Indian country have charged defendants with the amended provisions of the federal assault statutes that strengthened penalties for domestic assault offenses, such as strangulation and stalking. And, while the new law’s tribal criminal jurisdiction provision takes effect generally on March 7, 2015, under VAWA 2013’s “Pilot Project” provisions, the department recently approved three tribes’ applications voluntary “Pilot Project” to begin exercising special domestic violence criminal jurisdiction sooner. These tribes – the Pascua Yaqui Tribe of Arizona, the Umatilla Tribes of Oregon, and the Tulalip Tribes of Washington – will be the first tribes in the nation to exercise special criminal jurisdiction over crimes of domestic and dating violence, regardless of the defendant’s Indian or non-Indian status, under VAWA 2013.
Strengthening Partnerships and Support for Tribal Self-Governance
Strengthening partnerships and tribal self-governance was a major theme of the Attorney General’s message to tribal leaders on Nov.13, 2013, at the White House Tribal Nations Conference, where he announced a proposed statement of principles to guide the department’s work with federally recognized tribes. As the Attorney General said, “ As a result of these partnerships – and the efforts of everyone here – our nation is poised to open a new era in our government-to-government relationships with sovereign tribes.”
U.S. Attorneys’ offices around the country are engaged in an unprecedented level of collaboration with tribal law enforcement, consulting regularly with them on crime-fighting strategies in each district. One important example of this is the department’s enhanced Tribal Special Assistant U.S. Attorney (SAUSA) program. Tribal SAUSAs are cross-deputized tribal prosecutors who are able to prosecute crimes in both tribal court and federal court as appropriate. These Tribal SAUSAs serve to strengthen a tribal government’s ability to fight crime and to increase the USAO’s coordination with tribal law enforcement personnel. The work of Tribal SAUSAs can also help to accelerate a tribal criminal justice system’s implementation of TLOA and VAWA 2013.
Read the entire report at www.justice.gov/tribal/tloa.html
Read about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html
David Glynn Pleads Guilty to Defrauding Timeshare OwnersRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that a Charleston man pled guilty yesterday in federal court in Charleston to conspiring to defraud timeshare owners throughout the United States and Canada. David Andrew Glynn, 47, admitted that he set up a bogus company named Mountain State Resales, LLC (MSR) that was purportedly in the business of brokering timeshare sales. Glynn, and others, contacted timeshare owners and advised them that MSR had buyers for their the timeshares, and asked owners to pay fees and expenses necessary to complete the sales. Timeshare owners were directed to send the requested payments to MSR in South Charleston, West Virginia.
Glynn also contacted timeshare owners who had been victims of prior fraud schemes and posed as an agent with “Internal Revenue Recovery Associates,” a fictional entity that he claimed was affiliated with a governmental agency. Glynn represented that he was investigating timeshare fraud schemes, and needed the victims of such schemes to send money to MSR to assist with its recovery efforts.
During the guilty plea hearing, Glynn admitted that MSR was not a legitimate business, and was created to defraud owners of timeshare companies. He also admitted that MSR received more than $86,000 from the fraud scheme. As part of the plea agreement, Glynn will be required to make full restitution. Sentencing is scheduled for November 24, 2014.
The investigation of this case was conducted by the West Virginia State Police, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistant United States Attorney Meredith George Thomas is handling the prosecution.