Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 26 August 2014
DME Owner Heads to Prison for Multiple Counts of Health Care FraudRead the Press Release
HOUSTON – Andrea Michelle Tellison, 47, has been ordered to federal prison for eight years following her convictions of 14 counts of health care fraud and seven counts of aggravated identity theft, announced United States Attorney Kenneth Magidson. A jury convicted Tellison April 2, 2014, following three days of trial and less than two hours of deliberation.
Crabtree Sentenced for Securities Fraud in Connection with Investment Fraud SchemeRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Gregory L. Crabtree, 53, of Procterville, Ohio, was sentenced to sixty months imprisonment and $20,128,570.23 in restitution today in Athens, Georgia, by Chief United States District Court Judge C. Ashley Royal as the result of Mr. Crabtree’s participation in a “Ponzi” or investment scheme which took place between 2007 and 2010.Crabtree and a codefendant were originally charged in an eighty-five count indictment resulting from an investment fraud or “Ponzi” scheme in which investors were told that their money would be used to purchase surplus merchandise at a large discount from national retailers. These goods were then to be sold at a large profit to other wholesale buyers for resale. In fact, the scheme was a fraud and investors were actually paid purported returns out of funds collected from other investors. Over fifty investors lost a combined total of almost $23,000,000. A total of over $80,000,000 had been invested overall in the scheme.
Crabtree pled guilty to one count of securities fraud on April 7, 2014. He cooperated with prosecutors and testified at the trial of his co-defendant, who was acquitted.
This case was prosecuted by Assistant United States Attorneys Paul C. McCommon and G. F. “Pete” Peterman, III of the United States Attorney’s Office. The investigation was conducted jointly by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigation.
Questions regarding this matter should be directed to Karen Moore of the United States Attorney’s Office for the Middle District of Georgia (478/621-2606; [email protected])Court Orders Circle C Construction, Llc to Pay $762,894 for Violating the False Claims ActRead the Press Release
NASHVILLE, Tenn. August 26, 2014 ? U.S. District Judge Kevin H. Sharp ordered Circle C Construction, LLC to pay $762,894.54 to the United States for False Claims Act violations connected with a construction contract at Fort Campbell military base, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Circle C is a construction contractor based in Kentucky.
The United States originally intervened in the lawsuit against Circle C in 2007. U.S. District Court Judge William J. Haynes entered summary judgment on both liability and damages for the United States in 2010. Following an appeal, the Sixth Circuit Court of Appeals in 2012 upheld Judge Haynes’ liability decision, finding that Circle C had submitted false payroll certifications to Fort Campbell that falsely claimed that Circle C was paying the required prevailing wages, under the Davis-Bacon Act, to workers on Circle C’s construction contract at Fort Campbell, when Circle C was not actually paying those wages to the workers of its electrical subcontractor, Phase Tech. The Court of Appeals reversed Judge Haynes’ original damages award in the case and remanded the case for a new trial on damages.
In March 2014, the parties tried the damages issue before Judge Sharp. On August 22, 2014, Judge Sharp announced his decision awarding $762,894.54 to the United States in the case. Specifically, Judge Sharp found that government paid Circle C $259,298.18 for the electrical portion of the affected buildings constructed by Circle C. This amount constituted the United States’ damages in this case, according to Judge Sharp, since “the government would not have paid Circle C for this work if it had known at the time that Circle C was violating the Davis-Bacon Act”.
Because violators of the False Claims Act are subject to three times the government’s actual damages, Judge Sharp trebled the $259,298.18 figure and awarded a total of $762,894.54 to the government as damages.
“This court decision signals that the United States will continue to pursue federal contractors that defraud the United States,” said U.S. Attorney David Rivera. “Judgments like this one are important, because they confirm that the government is entitled to get the benefit of its bargain on federal contracts, which includes knowing that those contractors will pay the prevailing local wages to workers on federal projects.”The investigation of this case was conducted by the Department of Labor- Office of Inspector General, and the Defense Criminal Investigative Service. The government was represented by Assistant U.S. Attorney Ellen Bowden McIntyre.
The case is docketed as United States ex rel. Brian Wall v. Circle C Construction, LLC, No. 3:07-cv-91 (M.D. Tenn.).
Collin County Man Arrested for Smith County Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 37-year-old McKinney, Texas man has been arrested in connection with a bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Daniel River Burson was arrested on Aug. 25, 2014 pursuant to a criminal complaint issued by the U.S. District Court charging him with bank robbery. Burson had an initial appearance before U.S. Magistrate Judge John D. Love today and will have a detention hearing on Aug. 29, 2014.According to information presented in court, on Aug. 11, 2014, Burson is alleged to have robbed the Capitol One Bank on New Copeland Road in Tyler. A joint investigation with the Federal Bureau of Investigation and the Tyler Police Department led to the identity of Burson.
If convicted, Burson faces up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Tyler Police Department and prosecuted by Assistant U.S. Attorney Jim Middleton.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
####Cedar Grove Man Pleads Guilty to Unlawful Concealment of A FirearmRead the Press Release
CHARLESTON, W. Va. - Reginald Bennett, 40, of Cedar Grove, West Virginia pleaded guilty today to unlawful concealment of a firearm announced United States Attorney Booth Goodwin. In September of 2013, Bennett was stopped by the Charleston Police Department for a traffic violation. During the stop, officers discovered a .38 caliber Colt revolver in Bennett’s possession. Bennett was prohibited from possessing any gun because of a prior felony conviction. After his arrest and release, Bennett removed a Ruger M77 rifle from his home in Cedar Grove, and hid it in a home in South Charleston to prevent law enforcement officers from finding it. The rifle was discovered when a federal search warrant was executed at the South Charleston residence.
Bennett faces a maximum penalty of 20 in prison when he is sentenced on December 11, 2014. As part of his plea, Bennett agreed to forfeit both the revolver and the rifle.
The United States Bureau of Alcohol Tobacco and Firearms and the Charleston Police Department conducted the investigation. Assistant United States Attorney Erik S. Goes is prosecuting the matter on behalf of the United States.
Carbon County Man Charged with Robbing Philadelphia BusinessesRead the Press Release
William Robinson, 35, of Jim Thorpe, PA, was charged today by indictment with the June 26, 2014 robberies of a Pizza Hut and a 7-Eleven store in Philadelphia, announced United States Attorney Zane David Memeger. Robinson is charged with two counts of robbery which interferes with interstate commerce, two counts of using and carrying a firearm during a crime of violence, and one count of being a convicted felon in possession of a firearm.
If convicted the defendant faces a maximum possible sentence of life imprisonment, with a mandatory minimum 32 years’ imprisonment, a $1.25 million fine, five years’ supervised release, and a $500 special assessment.
The case was investigated by Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia County District Attorney's Office and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
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, 215-861-8525Bullhead Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Steven Whiteman, Jr., age 44, was indicted on July 15, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on August 15, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum period of supervised release of at least 5 years, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 9, 2014, and May 25, 2014, Whiteman, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration while residing in South Dakota.
The charge is merely an accusation and Whiteman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Whiteman was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for October 21, 2014.
Associate Attorney General West Announces $3 Million in Grants to Address Violence Against Women in Rural and Tribal Communities in the Bakken RegionRead the Press Release
Associate Attorney General Tony West today announced $3 million dollars in grants from the Office on Violence Against Women (OVW) to increase local and tribal capacity to prosecute crimes of violence against women and provide services to victims of sexual assault, domestic violence and stalking in the Bakken Region of North Dakota and Montana.
Associate Attorney General West made the announcement at the Four Corners Indian Country Conference today taking place on the Navajo Nation near Flagstaff, Arizona. The grants are part of the Justice Department’s ongoing commitment to protecting women from violence and strengthening the capacity of communities to respond to domestic and sexual violence.
OVW’s Bakken Region special initiative launched in April 2014 and is the first large scale project targeting resources to support the expansion of services to victims of sexual assault, domestic violence and stalking as well as aid the local criminal justice system in responding to these crimes in the Bakken region.
“Victims of sexual assault, domestic violence, and stalking living in a vast rural region like the Bakken face unique challenges in accessing critical, life-saving services,” said Associate Attorney General Tony West. “With this new, targeted funding, tribes and local communities will be better equipped to respond to the increased need for mental health services, legal assistance, housing, and training.”
The five grantees supported by OVW’s Bakken Region Initiative are: Fort Peck Assiniboine and Sioux Tribes, Poplar, Montana; First Nations Women’s Alliance, Devils Lake, North Dakota; Montana Coalition Against Domestic and Sexual Violence, Helena, Montana; North Dakota Council on Abused Women’s Services, Bismarck, North Dakota; and Three Affiliated Tribes of the Fort Berthold Reservation, New Town, North Dakota.
With Justice Department funding these grantees will be able to enhance responses to domestic violence, dating violence, sexual assault, and stalking, and expand mental health counseling, advocacy, legal assistance, prevention education, sexual assault forensic examiner programs, Sexual Assault Response Teams, and law enforcement training.
In addition, the Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation in Montana and the Three Affiliated Tribes of the Fort Berthold Reservation in North Dakota are each receiving a three-year $450,000 grant to support the salary, travel, and training costs of a tribal prosecutor, who will be cross-designated to serve as a tribal Special Assistant United States Attorney (SAUSA) in the local U.S. Attorney’s Office.
“OVW grant funds have made a marked difference in the lives of countless victims and survivors, and we are eager to provide dedicated funding that will support desperately needed services,” said Bea Hanson, OVW’s Principal Deputy Director. “These grants represent the Department’s recognition that to combat violence against women, especially in Indian country, we must be responsive to emerging issues.”
For more information on OVW and its programs, please visit: www.justice.gov/ovw .
Arkansas Woman Sentenced to Prison for Defrauding Monterey Bay Aquarium Research InstituteRead the Press Release
SAN JOSE – Lisa McMahon was sentenced yesterday to 19 months in prison and ordered to pay $798,469.20 in restitution for wire fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
McMahon pleaded guilty on March 31, 2014, to one count of defrauding the Monterey Bay Aquarium Research Institute (MBARI), in violation of Title 18, United States Code, Section 1343. MBARI is a non-profit center for advanced research and education in ocean science and technology located in Moss Landing, Calif., and supported in part by federal funding. Defendant was employed at MBARI as a payroll specialist with responsibilities concerning the payment of wages, 401(k) contributions and loans for MBARI employees. According to the defendant’s admissions in court, from at least 2005 until January of 2012 she devised and executed a scheme to defraud MBARI by altering payroll and 401(k) records to cause and conceal fraudulent payments to her personal accounts. Defendant caused the transfer of approximately $800,000 of MBARI funds to her personal accounts without the authorization or knowledge of her employer.
The sentence was handed down by the Honorable Edward J. Davila, United States District Court Judge in San Jose. Judge Davila also sentenced the defendant to a three-year period of supervised release. As a condition of her sentence defendant is prohibited from maintaining a position of fiduciary capacity without the prior permission of her probation office, and from having any contact with the victim MBARI.
Philip A. Guentert is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
(McMahon indictment )
Apollo Man Admits Defrauding Dominion GasRead the Press Release
PITTSBURGH - A resident of Apollo, Pa., pleaded guilty in federal court to a charge of conspiracy to commit mail fraud, United States Attorney David J. Hickton announced today.
David Hilty pleaded guilty to one count before United States District Judge Mark Hornak.
According to information presented to the Court, Hilty devised a scheme to defraud Dominion Gas in which he falsified the quantity of gas being extracted through wells he owned.
Judge Hornak scheduled sentencing for January 7. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Michael A. Comber is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of David Hilty.
Angelina County Man Guilty in Wire Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 39-year-old Lufkin, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Andy Lee House pleaded guilty to an Information charging him with wire fraud today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, in October 2009, House purchased a 2006 Bugatti Veyron for $1 million and had it insured for $2.2 million. On Nov. 11, 2009, House drove the vehicle into the Gulf Bay near La Marque, Texas, and upon exiting the Bugatti, left the motor running, resulting in the engine taking on large amounts of salt water which destroyed the vehicle. House reported to first responders he was reaching for his cell phone when he swerved and accidently drove into the bay. On Nov. 12, 2009, House called the insurance company and filed a $2.2 million claim on the Bugatti. However, House did not know that another motorist had videoed the accident, including the moment House drove the vehicle into the water, and then posted the video to YouTube.
House faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Federal Bureau of Investigation, the Lufkin Police Department, the Texas Rangers, the Department of Public Safety-Criminal Investigation Division, and the Nacogdoches Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
###Albuquerque Woman Pleads Guilty to Participating in Scheme to Smuggle Drugs into Otero County PrisonRead the Press Release
ALBUQUERQUE – Ana Lopez, 24, of Albuquerque, N.M., pleaded guilty in federal court in Las Cruces yesterday afternoon to an indictment charging her with conspiracy to distribute methamphetamine and heroin. In entering her guilty plea, Ana Lopez admitted participating in a conspiracy to smuggle drugs into the Otero County Prison Facility (OCPF) between Dec. 2013 and April 2014.
Lopez was one of six individuals charged in April 2014, in a criminal complaint with conspiracy to violate the federal narcotics laws by smuggling controlled substances into the OCPF. The other defendants charged with participating in the conspiracy were Luis Delgadillo, 37, of El Paso, Texas, who was then employed as a corrections officer at OCPF, Nancy Salas, 35, of Alamogordo, N.M., and three OCPF inmates, Eric Lovato, 30, of Boles Acres, N.M., and Armando Lopez, 27, and Gary Borja, 26, both of Albuquerque. All six defendants subsequently were indicted on a conspiracy to distribute methamphetamine and heroin charge on Aug. 20, 2014.
According to court filings, the FBI initiated an investigation into the case in Jan. 2014, after receiving information from the New Mexico Corrections Department allegedly showing that Delgadillo was smuggling heroin and methamphetamine into the OCPF. The investigation, which included a review of recorded inmate telephone calls and OCPF surveillance video, physical surveillance and the results of inmate drug testing, identified the six defendants as members of a conspiracy who allegedly smuggled narcotics into the OCPF between Jan. 2014 and April 2014.
In her plea agreement, Ana Lopez admitted participating in a conspiracy to smuggle drugs into the OCPF. The plea agreement states that Ana Lopez was recruited to help smuggle drugs into the prison in Jan. 2014. Ana Lopez admitted delivering an ounce of heroin in Feb. 2014 and again in March 2014, to a person knowing that the person would give it to a corrections officer who would smuggle the heroin into the prison. Ana Lopez also admitted that on April 26, 2014, she met with the corrections officer and gave him 25 grams of methamphetamine, 11 grams of heroin and 10 suboxone pills so he could smuggle the drugs into the prison.
At sentencing, Ana Lopez faces a statutory maximum penalty of 20 years in prison. She remains in federal custody pending her sentencing hearing, which has yet to be scheduled.
The five co-defendants have entered not guilty pleas to the indictment. All five are in federal custody pending trial, which has yet to be scheduled. Charges in criminal complaints and indictments are merely accusations and criminal defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the Las Cruces office of the FBI and the New Mexico Corrections Department and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Accountant Sentenced to Probation with Home Detention for Fraud SchemesRead the Press Release
ERIE, Pa. - A resident of Erie, has been sentenced in federal court to 4 years probation, 12 months home detention and ordered to make restitution in the amount of $11,471.34 on her conviction of wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Julie A. Wozniak, 34.
According to information presented to the court, from March 2013 to June 2013, Julie A. Wozniak devised a scheme to defraud St. Vincent’s hospital and Hilltop Beer by abusing her position as an accountant. Wozniak utilized a Saint Vincent’s purchasing card and made 62 separate unauthorized purchases for her own personal benefit and use, in the total amount of approximately $47,521.03, and increased the credit limit on the purchasing card from $12,000.00 to $30,000.00 in order to increase the volume of unauthorized purchases she was able to make. Wozniak also fabricated St. Vincent’s accounting records for the purchasing card, thereby concealing the unauthorized purchases she had made. Further, Wozniak utilized her access to St. Vincent’s bank accounts and made 22 unauthorized Automated Clearing House (ACH) debits from Saint Vincent’s operating bank account at M&T bank, in an additional amount of approximately $32,940.65.
In addition to the fraud against St. Vincent’s, the court was advised that Wozniak operated a private accounting business called “Keeping You Balanced” and used her position as an accountant to steal money from Hilltop Beer. Wozniak advised the owner of Hilltop Beer how much money she needed to have transferred into the Hilltop Beer payroll bank account in order for her to make payroll tax payments. After transfers of those amounts would be made to the payroll account, the defendant, without the knowledge or consent of the owner of Hilltop Beer, would write checks to herself from the payroll account in the amount that was supposed to be paid to the IRS for the payroll taxes of Hilltop Beer. In order to conceal the payroll account funds she had unlawfully taken from Hilltop Beer and had not paid to the IRS, Wozniak made ACH debits from St. Vincent’s operating bank account with S&T bank, and paid the payroll taxes for Hilltop Beer out of the St. Vincent’s account.
Finally, Wozniak used her access and authority over St. Vincent’s bank account at First Niagara and made 9 ACH debits to pay on her personal Capital One credit card accounts and her personal Amazon credit account in an additional amount of $10,778.69.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Wozniak.
Monday 25 August 2014
Venango County Man Falsified Certificates Related to Plugging Abandoned Oil WellsRead the Press Release
ERIE, Pa. - A resident of Pleasantville, Pennsylvania, pleaded guilty in federal court to a charge of making false statements in matters relevant to permits issued under the Safe Drinking Water Act, United States Attorney David J. Hickton announced today.
Ronald A.Wright, 45, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that between in and around September 2009, to in and around April 2011, Wright falsified certificates of well plugging, falsely claiming that he had properly plugged abandoned oil wells, when he had not properly done so. These forms were relied upon by the EPA in regard to permits issued for Class II injection wells. These injection wells were to be used for the injection of oil production brine fluid and for the enhanced recovery process of oil extraction. The approval process for these injection wells required all abandoned wells within a quarter mile of the injection well site to have first been properly plugged. On January 12, 2012, inspectors with the Environmental Protection Agency (EPA), were on site to conduct a mechanical integrity test of the injection well when it was discovered that injected fluid had entered the bottom of an abandoned well because it had not been properly plugged to the bottom. According to the information presented in court, further investigation revealed that many of the wells that were plugged by Wright were not plugged as he claimed in the certificates of well plugging. In some instances, the certificates of well plugging falsely claimed that wells were properly plugged at depths greater than 2,000 feet when, in fact, the wells were only plugged at depths of less than 1,000 feet. According to the information presented in court, the discovery of Wright’s falsification of the plugging reports has required the re-inspection, and likely re-drilling and re-plugging, of 95 wells.
“Documents submitted to the government must be accurate and honest,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program in the Middle Atlantic states. “False reporting can seriously jeopardize environmental and public health protection. EPA and its law enforcement partners are committed to holding violators accountable to support our shared commitment to protect American communities. Today’s guilty plea further exemplifies our successful collaborative efforts with the U.S. Forest Service and the Pennsylvania Attorney General’s office.”
Judge Cercone scheduled sentencing for December 22, 2014 at 1:30 p.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Wright on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Environmental Protection Agency - Criminal Investigation Division, the Pennsylvania Office of Attorney General – Environmental Crimes Section, and the U.S. Forest Service – Law Enforcement and Investigations conducted the investigation that led to the prosecution of Wright.
Utah Businessman Indicted for Unlicensed Dealing in Firearms, Smuggling U.S. Goods and Filing False Tax ReturnsRead the Press Release
Adam Michael Webber, of Salt Lake County, Utah, was indicted on Friday by a federal grand jury in the District of Utah, the Justice Department announced. The indictment, which was made public today, charges Webber with one count of dealing in firearms without a license, one count of smuggling goods from the United States and six counts of filing false tax returns.
According to the indictment, no later than 2007, Webber established a business that sold firearms and firearms’ parts and accessories, largely through the Internet. The business operated under the name HK Parts, using the website www.hkparts.net , and was solely owned and operated by Webber. In 2009, Webber incorporated the business as HK Parts Inc., which used the same website. Webber was the sole shareholder of HK Parts Inc.
According to the indictment, on or about June 20, 2007, Webber signed a stipulated settlement agreement with the United States in which he agreed never to apply for a federal firearms license or be a responsible person for any federal firearms licensee or business, and that he would not engage in the business of manufacturing, importing or dealing in firearms. However, during the years 2007 through 2012, Webber individually and through HK Parts and HK Parts Inc., sold firearms and firearms parts and accessories.
Webber is charged with filing false individual income tax returns for 2007 through 2010, which underreported the gross receipts of the business, and with filing false income tax returns for an S Corporation for 2009 and 2010, which also underreported the gross receipts of the business.
A trial date has not been scheduled. If convicted, Webber faces a statutory maximum sentence of 33 years in prison and may be subject to fines.
This case was investigated by IRS-Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being jointly prosecuted by the U.S. Attorney’s Office for the District of Utah and the Justice Department’s Tax Division.
An indictment merely alleges that a crime has been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Related Materials:
United States v. Adam Michael Webber
Indictment
Exhibit AU.S. Citizen Extradited from the Netherlands Sentenced to 35 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
A U.S. citizen living in Amsterdam, Netherlands, was sentenced today to serve 35 years in prison for sexually exploiting a minor in California and elsewhere and producing images of that abuse.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Benjamin B. Wagner of the Eastern District of California and Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division made the announcement.
Christopher David Robinette, 44, pleaded guilty on April 21, 2014, to eight counts of sexual exploitation of a minor and one count of transporting a minor in interstate or foreign commerce for purposes of engaging in criminal sexual activity. According to court documents, between September 2004 and August 2006, Robinette traveled to Fresno, California, to sexually exploit a minor and produce digital still and video images of the abuse. The sexual abuse took place in California, including the Fresno area, as well as in Nevada, Mexico and Costa Rica. Robinette’s crimes were detected shortly after he uploaded images of child pornography, including images he produced, to a Microsoft SkyDrive account.
In addition to his prison sentence, Senior U.S. District Judge Anthony W. Ishii of the Eastern District of California, ordered Robinette to serve a lifetime of supervised release following his prison term, during which his access to computers, the Internet and minors will be restricted, and he will be obligated to register as a sex offender.
This case was investigated by the FBI’s Sacramento Division and FBI in The Hague, Netherlands, with assistance from the Korps Landelijke Politie Diensten (Dutch National Police), the Amsterdam Amstelland Police Department (Amsterdam local police), and the Fresno Police Department. The National Center for Missing & Exploited Children assisted in coordinating information for a law enforcement response. The case was prosecuted by Trial Attorney Maureen Cain of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Gappa of the Eastern District of California.
The Department of Justice’s Office of International Affairs and CEOS, as well as the Dutch Ministry of Security and Justice, assisted in coordinating Robinette’s extradition to Fresno. The U.S. Marshals Service returned Robinette to Fresno, and he has been detained as a flight risk and danger to the community since his initial court appearance on Dec. 26, 2012.
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
U.S. Citizen Extradited from the Netherlands Sentenced to 35 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
FRESNO, Calif. — A U.S. citizen living in Amsterdam, Netherlands, was sentenced today to serve 35 years in prison for sexually exploiting a minor living in California and producing images of that abuse.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Benjamin B. Wagner for the Eastern District of California and Acting Assistant Director in Charge Timothy Gallagher of the FBI’s Washington Field Office made the announcement.
Christopher David Robinette, 44, pleaded guilty on April 21, 2014, to eight counts of sexual exploitation of a minor and one count of transporting a minor in interstate or foreign commerce for purposes of engaging in criminal sexual activity. According to court documents, between September 2004 and August 2006, Robinette traveled to Fresno, California, to sexually exploit a minor and produce digital still and video images of the abuse. The sexual abuse took place in California, including the Fresno area, as well as in Nevada, Mexico and Costa Rica. Robinette’s crimes were detected shortly after he uploaded images of child pornography, including images he produced, to a Microsoft SkyDrive account. Robinette was extradited from the Netherlands to face charges in the Eastern District of California.
At sentencing before Senior U.S. District Judge Anthony W. Ishii of the Eastern District of California, Robinette was ordered to serve a lifetime term of supervised release, during which his access to computers, the Internet and minors will be restricted, and he will be obligated to register as a sex offender.
“Protecting the most vulnerable Americans is a national Department of Justice priority,” said U.S. Attorney Wagner. “None are as vulnerable as our children, and this office will continue to pursue those who abuse and exploit them even if that pursuit takes us to other continents. The harshest penalties are reserved for the most severe criminal conduct, and Mr. Robinette’s conduct fully warranted the lengthy prison sentence imposed today.”
“Robinette’s sentence ensures that he cannot victimize another child, but no sentence can erase the crimes that have occurred or restore his victim’s stolen innocence. No child should ever be victimized by such abuse and exploitation,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Field Office. “We thank all of our law enforcement partners including the Fresno Police Department, a member of the Fresno Child Exploitation Task Force, for their assistance with this investigation and continued partnership.”This case was investigated by the FBI’s Washington Field Office, FBI’s Sacramento Division, and FBI in The Hague, Netherlands, with assistance from the Korps Landelijke Politie Diensten (Dutch National Police), the Amsterdam Amstelland Police Department (Amsterdam local police); and the Fresno Police Department. The National Center for Missing & Exploited Children assisted in coordinating information for a law enforcement response. The case was prosecuted by Trial Attorney Maureen Cain of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Gappa of the Eastern District of California.
The U.S. Department of Justice’s Office of International Affairs and CEOS, as well as the Dutch Ministry of Security and Justice, assisted in coordinating Robinette’s extradition to Fresno. The U.S. Marshals Service returned Robinette to Fresno, and he has been detained as a flight risk and danger to the community since his initial court appearance on December 26, 2012.
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. Attorney’s 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.
Two Wheeling Residents Convicted on Painkiller Distribution ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
WHEELING, WEST VIRGINIA – Two individuals involved in a large prescription painkiller trafficking ring entered pleas of guilty on Monday in Federal court, according to United States Attorney William J. Ihlenfeld, II.
Lucas N. HIGH, age 37, of Wheeling, entered a plea of guilty to the felony offense of “Conspiracy to use a Telephone to Facilitate the Distribution of Cocaine, Oxycodone and Buprenorphine.” HIGH’s criminal conduct occurred between October of 2012 and January of 2014 in the Wheeling area. He is free on bond and faces up to 4 years in prison when sentenced.
Cara OLAKO a/k/a Cara Green, age 36, of Wheeling, entered a plea of guilty to “Aiding and Abetting the Distribution of Cocaine within 1,000 feet of the Patterson Playground.” The transaction that OLAKO admitted to occurred in July of 2013. She is free on bond and faces up to 40 years in prison.
HIGH and OLAKO are part of group of fifteen people indicted in February after a sixteen month investigation into the distribution of oxycodone and other prescription drugs that came to the area from northern Ohio and Detroit, Michigan. Over the course of the investigation thousands of pills were recovered by agents via controlled purchases and court-authorized searches.
Assistant U.S. Attorney John C. Parr handled the cases on behalf of the government. U.S. District Judge Frederick P. Stamp, Jr., presided.
These matters were investigated by the Ohio Valley Drug Task Force, which includes officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police-BCI, and the U.S. Drug Enforcement Administration. The Ohio Valley Drug Task Force is an Appalachia HITDA-funded initiative.Two Men Charged in Connection with Murder in Chautauqua CountyRead the Press Release
BUFFALO, N.Y. – United States Attorney William J. Hochul, Jr. announced today that JONATHAN CONKLIN, 43, and CHARLES SANFORD, 30, were arrested on August 22, 2014 and charged in a federal criminal complaint with carjacking, use of a firearm and transportation of a stolen vehicle. If convicted of the charges, the defendants face a mandatory minimum sentence of 10 years imprisonment, a maximum sentence of life imprisonment, and a fine of $250,000.
According to Assistant United States Attorney Timothy C. Lynch, who is handling the prosecution of this matter, the charges against CONKLIN and SANFORD pertain to their involvement in the robbery and murder of Mary Whitaker. The complaint alleges that on August 20, 2014, CONKLIN and SANFORD went to Mary Whitaker’s home in Sherman, New York with the intention of robbing her. Soon after Ms. Whitaker answered the door at her home, the defendants shot and killed her. Then they stole her vehicle and drove it to Erie, Pennsylvania, where they were arrested on August 22, 2014.
Both defendants were ordered detained pending a further hearing, scheduled for August 28, 2014.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. The filing of a federal criminal complaint was the culmination of an investigation on the part of the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Chautauqua County District Attorney’s Office, under the direction of District Attorney David W. Foley, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the City of Erie (Pennsylvania) Police Department, under the direction of Chief Randy M. Bowers.Two Indicted in Scheme Using Stolen Checks to Commit Mail Fraud and Bank FraudRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, todayannounced that a federal grand jury in New Haven has returned a 13-count indictment charging DAYQUAN JACKSON, 26, of Bridgeport, and ERIC WATKINS, 25, of Stratford, with theft of mail, mail fraud, bank fraud, and conspiracy in connection with a stolen check scheme. The indictment was returned on August 20, 2014. JACKSON and WATKINS were arrested and presented on August 22, 2014, at which time the indictment was unsealed, JACKSON was ordered detained in federal custody, and WATKINS was released on a set of conditions.
According to the indictment, the scheme arose out of the theft of mail by JACKSON and others from residences in Fairfield County throughout 2013 and 2014, the purpose of which was to obtain either blank checks or credit card “convenience checks.” JACKSON and WATKINS then used the stolen checks in two separate ways. First, JACKSON and WATKINS used the stolen checks to purchase vehicles—cars, motorcycles, and all-terrain vehicles—listed for sale on the Internet from unsuspecting victims in surrounding states. Second, JACKSON provided the stolen checks to “runners” to deposit in the runners’ accounts and then JACKSON withdrew money from the runners’ accounts.
If convicted, JACKSON and WATKINS face a maximum term of imprisonment of 20 years and a fine of up to $250,000 on each count of mail fraud. If convicted of conspiracy to commit mail fraud and bank fraud, JACKSON and WATKINS face a maximum term of imprisonment of 30 years and a fine of up to $1 million. JACKSON also faces a maximum term of imprisonment of 5 years and a fine of up to $250,000 in connection with one count of theft of mail and a maximum term of imprisonment of 30 years and a fine of up to $1 million on each count of bank fraud.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Postal Inspection Service, with substantial assistance from the Connecticut Financial Fraud Task Force, and the Greenwich, Fairfield, Wilton, and Bridgeport Police Departments, as well as law enforcement in New Hampshire. The case is being prosecuted by Assistant U.S. Attorney Marc Silverman and Special Assistant U.S. Attorney Charles L. Rombeau.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Convicted on Federal Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA – Two people have been convicted of Federal drug charges, according to United States Attorney William J. Ihlenfeld, II.
Dorothy Ellen METZ, age 61, of Athens, Georgia, entered a plea of guilty to “Possession with Intent to Distribute Oxycodone” in Randolph County, West Virginia. METZ is free on bond pending sentencing and faces up to 20 years in prison. This case was investigated by the Mountain Region Drug & Violent Crimes Task Force.
Beth Harman OURS, age 46, of Petersburg, West Virginia, entered a plea of guilty to “Distribution of Diazepam.” OURS is in custody pending sentencing and faces up to 5 years in prison. This case was investigated by the Potomac Highlands Drug & Violent Crime Task Force.
The cases were prosecuted by Assistant U.S. Attorney Stephen D. Warner. U.S. Magistrate Judge John S. Kaull presided.Three Individuals Found Guilty in Manhattan Federal Court of the 2010 Murder of Jeffrey Henry in Newburgh, New YorkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RAYMOND CHRISTIAN, GLENN THOMAS, and TYRELL WHITAKER were found guilty last Friday in Manhattan federal court of the December 15, 2010, murder of Jeffrey Henry. Jeffrey Henry was killed when the defendants attempted an armed robbery of individuals selling crack cocaine from an apartment located at 54 Chambers Street, Newburgh, New York. CHRISTIAN, THOMAS, and WHITAKER were convicted after a three-week jury trial before U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Preet Bharara stated: “This case is the embodiment of how drug trafficking begets violence, and why we and our law enforcement partners are determined to stop both. In the mayhem of a shootout that came out of the deadly mix of drugs, guns and men bent on robbery, the defendants committed a cold-blooded murder for drugs and cash. Now they will pay the price for their crime.”
According to the Indictment filed in federal court and the evidence presented at trial:
On December 15, 2010, CHRISTIAN, WHITAKER, and THOMAS, along with at least five other individuals, participated in the gunpoint robbery of a house at 54 Chambers Street in Newburgh, New York. The house was well-known throughout Newburgh for its prolific crack cocaine trafficking. During the robbery, CHRISTIAN lost his firearm to one of the victims, which resulted in a shoot-out between robbers and victims. As the robbers attempted to flee the house, they encountered Jeffrey Henry, who had just arrived. Henry attempted to pull the door shut, to lock the robbers in the house, while calling 911. The robbers, including WHITAKER and THOMAS, were ultimately able to pry the door open and, through the opening, shoot Henry. Henry was shot twice, and died shortly thereafter.
All three of the defendants, CHRISTIAN, 21, THOMAS, 25, and WHITAKER, 20, are from Newburgh, New York. They were each found guilty of one count of robbery, one count of use of a firearm during the robbery, and one count of murder through the use of a firearm during the robbery. In addition, CHRISTIAN and THOMAS were also found guilty of one count of conspiracy to commit robbery. CHRISTIAN and THOMAS were found not guilty of one count of conspiring to distribute narcotics. The defendants each face a maximum sentence of life in prison, and a mandatory minimum sentence of 10 years of in prison. The potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the New York State Police, the Newburgh Police Department, the Orange County District Attorney’s Office, and the Orange County Sheriff’s Office.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew Bauer and Kan M. Nawaday are in charge of the prosecution.
U.S. v. Raymond Christian, et al. Indictment
South Bay Doctor Pleads Guilty in Medicare Fraud Case, Admitting He Wrote Bogus Prescriptions for Power Wheelchairs and Other DMERead the Press Release
LOS ANGELES – A Los Angeles County physician whose referrals led to more than $1.7 million in fraudulent Medicare billing pleaded guilty this afternoon to participating in a conspiracy to defraud Medicare by writing prescriptions for unneeded durable medical equipment (DME), such as power wheelchairs.
Charles Okoye, a 52-year-old Carson resident, pleaded guilty to one count of conspiracy to commit health care fraud.
Appearing before United States District Judge Michael W. Fitzgerald, Okoye admitted that he wrote prescriptions for medically unnecessary DME for patients referred to him through Adelco Medical Distributors, Inc., a Gardena-based DME supply company.
Between November 2008 and November 2011, Adelco recruited Medicare beneficiaries and took them to see Okoye, who would issue DME prescriptions – primarily for power wheelchairs – after giving the “patients” a single, cursory examination, according to Okoye’s plea agreement. Adelco then billed Medicare for providing the DME, which the beneficiaries did not want and often never used. In return for these referrals, Okoye received illegal kickbacks for every DME prescription from Adelco’s owner, Adeline Ekwebelem.
Okoye’s referrals led Adelco to submit approximately $1.7 million in fraudulent claims to Medicare, and Medicare paid Adelco more than $820,000. Okoye also fraudulently billed Medicare more than $50,000 for services he claimed to have provided to the “patients” who received unnecessary prescriptions.
Ekwebelem, 51, of Hawthorne, is also charged in the case, and she is scheduled to go on trial before Judge Fitzgerald on September 9.
The Adleco indictment charges four other defendants, three of whom have previously pleaded guilty. The final defendant is currently a fugitive.
In his plea agreement, Okoye also admitted that he engaged in a similar unlawful arrangement with another DME company, Esteem Medical Supply in Inglewood.
Okoye is scheduled to be sentenced by Judge Fitzgerald on December 8. At sentencing, Okoye faces a statutory maximum sentence of 10 years in federal prison.
As part of his guilty plea, Okoye has agreed that the California Medical Board can revoke his license to practice medicine.
The investigation into Okoye, Ekwebelem, and the others involved in Adelco’s fraudulent scheme to defraud Medicare was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation.
Release No. 14-110
Smyrna Man Sentenced for Identity Theft and Tax FraudRead the Press Release
ATLANTA - Michael Awiti has been sentenced to six years and three months in prison for filing fraudulent tax returns using the stolen identities of children.
“This defendant used the stolen identities of children in his scheme to steal from the United States Treasury,” said United States Attorney Sally Quillian Yates. “This office in collaboration with our law enforcement partners will continue to do our best to stop these fraudulent schemes and protect the public from identity theft.”
“Identity thieves are becoming more devious, creative, and conniving,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “They steal our identities, steal government money and prey upon innocent citizens. These criminals must be and will continue to be pursued in order to obtain justice for the victims as well as justice for our nation.”
According to United States Attorney Yates, the charges and other information presented in court: From 2010 through 2012, Awiti owned and operated Fidelity Financial, LLC in Smyrna, Ga. During that time, Awiti engaged in a scheme to defraud the Department of the Treasury by filing over 500 fraudulent income tax returns using stolen identities. This type of scheme is commonly called stolen identity refund fraud. Awiti used the stolen personal identification information of hundreds of victims, along with fake wage and withholding information, to prepare fraudulent tax returns. The majority of the identity theft victims were children. Awiti sought fraudulent refunds totaling approximately $2,678,725.35; however, the IRS rejected some of the claims, resulting in an actual loss to the U.S. Treasury of $1,783,316.00.
Awiti, 29, of Smyrna, Ga., was sentenced by U.S. District Court Judge Charles A. Pannell, Jr. to six years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,783,316.00. Awiti was convicted on these charges on May 5, 2014, after he pleaded guilty.
This case was investigated by Special Agents the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorney Jeffrey Brown prosecuted 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/.
Sixteen Former Puerto Rico Police Officers Plead Guilty to Running Criminal Organization from the Police Department<br />Read the Press Release
Sixteen former Puerto Rico police officers have pleaded guilty for their roles in a criminal organization run out of the police department. The officers used their affiliation with law enforcement to commit robbery and extortion, to manipulate court records in exchange for bribes, and to sell illegal narcotics.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
“These 16 police officers were charged with fighting crime, protecting lives and property, and improving the quality of life in Puerto Rico,” said Assistant Attorney General Caldwell. “Instead, they used their badges and guns to do the opposite, committing crimes, endangering lives, and stealing property under the veil of police authority. This prosecution demonstrates the Justice Department’s commitment to holding all criminals accountable – including those who wear a badge. We will use every tool at our disposal, including the RICO laws, to rid our communities of corruption.”
The following 13 defendants pleaded guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act: Osvaldo Vazquez-Ruiz, 38; Orlando Sierra-Pereira, 37; Danny Nieves-Rivera, 35; Roberto Ortiz-Cintron, 35; Yovanny Crespo-Candelaria, 34; Jose Sanchez-Santiago, 32; Miguel Perez-Rivera, 35; Nadab Arroyo-Rosa, 33; Jose Flores-Villalongo, 52; Luis Suarez-Sanchez, 36; Eduardo Montañez-Perez, 29; Carlos Laureano-Cruz, 40; and Carlos Candelario-Santiago, 47. Three defendants, Ruben Casiano-Pietri, 36, Christian Valles-Collazo, 28, and Ricardo Rivera Rodriguez, 39, pleaded guilty to robbery and extortion charges. Several of the defendants also pleaded guilty to firearms charges in connection with the use of their police-issued firearms in furtherance of their crimes. At the time of their criminal conduct, Flores-Villalongo and Candelario-Santiago were sergeants with the Police of Puerto Rico (POPR), and the other defendants were police officers. Sentencing hearings are scheduled for December 2014.
According to court documents, over the course of the conspiracy, the officers worked together to conduct traffic stops and enter the homes of suspected criminals to steal money, property and drugs for their own personal enrichment. They planted evidence to make false arrests, and then extorted money from their victims in exchange for their release from custody. Additionally, in exchange for bribe payments, the officers gave false testimony, manipulated court records and failed to appear in court when required so that criminal cases would be wrongfully dismissed. The officers also sold and distributed wholesale quantities of narcotics.
As just a few examples of their criminal conduct, in April 2012, defendants Vazquez-Ruiz and Sierra-Pereira conducted a traffic stop in their capacity as police officers and stole approximately $22,000 they believed to be illegal drug proceeds. Vazquez-Ruiz later attempted to extort approximately $8,000 from an individual believed to be a drug dealer’s accomplice in exchange for promising to release a prisoner.
Further, in November 2012, defendants Sierra-Pereira, Nieves-Rivera, Ortiz-Cintron and Valles-Collazo illegally entered an apartment and stole approximately $30,000, which they believed were illegal lottery proceeds.
The defendants frequently shared with one another the proceeds they illegally obtained, and used their power, authority and official positions as police officers to promote and protect their illegal activity. Among other things, the defendants used POPR firearms, badges, patrol cars, tools, uniforms and other equipment to commit the crimes, and then concealed their illegal activity with fraudulently obtained court documents and falsified POPR paperwork that made it appear they were engaged in legitimate police work.
The case was investigated by the FBI’s San Juan Division, and prosecuted by Trial Attorneys Brian K. Kidd, Emily Rae Woods and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana E. Bauzá of the District of Puerto Rico.Sixteen Former Puerto Rico Police Officers Plead Guilty to Running Criminal Organization from the Police DepartmentRead the Press Release
WASHINGTON – Sixteen former Puerto Rico police officers have pleaded guilty for their roles in a criminal organization run out of the police department. The officers used their affiliation with law enforcement to commit robbery and extortion, to manipulate court records in exchange for bribes, and to sell illegal narcotics.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
“These 16 police officers were charged with fighting crime, protecting lives and property, and improving the quality of life in Puerto Rico,” said Assistant Attorney General Caldwell. “Instead, they used their badges and guns to do the opposite, committing crimes, endangering lives, and stealing property under the veil of police authority. This prosecution demonstrates the Justice Department’s commitment to holding all criminals accountable – including those who wear a badge. We will use every tool at our disposal, including the RICO laws, to rid our communities of corruption.”
The following 13 defendants pleaded guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act: Osvaldo Vazquez-Ruiz, 38; Orlando Sierra-Pereira, 37; Danny Nieves-Rivera, 35; Roberto Ortiz-Cintron, 35; Yovanny Crespo-Candelaria, 34; Jose Sanchez-Santiago, 32; Miguel Perez-Rivera, 35; Nadab Arroyo-Rosa, 33; Jose Flores-Villalongo, 52; Luis Suarez-Sanchez, 36; Eduardo Montañez-Perez, 29; Carlos Laureano-Cruz, 40; and Carlos Candelario-Santiago, 47. Three defendants, Ruben Casiano-Pietri, 36, Christian Valles-Collazo, 28, and Ricardo Rivera Rodriguez, 39, pleaded guilty to robbery and extortion charges. Several of the defendants also pleaded guilty to firearms charges in connection with the use of their police-issued firearms in furtherance of their crimes. At the time of their criminal conduct, Flores-Villalongo and Candelario-Santiago were sergeants with the Police of Puerto Rico (POPR), and the other defendants were police officers. Sentencing hearings are scheduled for December 2014.
According to court documents, over the course of the conspiracy, the officers worked together to conduct traffic stops and enter the homes of suspected criminals to steal money, property and drugs for their own personal enrichment. They planted evidence to make false arrests, and then extorted money from their victims in exchange for their release from custody. Additionally, in exchange for bribe payments, the officers gave false testimony, manipulated court records and failed to appear in court when required so that criminal cases would be wrongfully dismissed. The officers also sold and distributed wholesale quantities of narcotics.
As just a few examples of their criminal conduct, in April 2012, defendants Vazquez-Ruiz and Sierra-Pereira conducted a traffic stop in their capacity as police officers and stole approximately $22,000 they believed to be illegal drug proceeds. Vazquez-Ruiz later attempted to extort approximately $8,000 from an individual believed to be a drug dealer’s accomplice in exchange for promising to release a prisoner.
Further, in November 2012, defendants Sierra-Pereira, Nieves-Rivera, Ortiz-Cintron and Valles-Collazo illegally entered an apartment and stole approximately $30,000, which they believed were illegal lottery proceeds.
The defendants frequently shared with one another the proceeds they illegally obtained, and used their power, authority and official positions as police officers to promote and protect their illegal activity. Among other things, the defendants used POPR firearms, badges, patrol cars, tools, uniforms and other equipment to commit the crimes, and then concealed their illegal activity with fraudulently obtained court documents and falsified POPR paperwork that made it appear they were engaged in legitimate police work.
The case was investigated by the FBI’s San Juan Division, and prosecuted by Trial Attorneys Brian K. Kidd, Emily Rae Woods and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana E. Bauzà of the District of Puerto Rico.
Six Former Puerto Rico Police Officers Plead Guilty to Federal Civil Rights, Obstruction of Justice and Perjury ChargesRead the Press Release
Three Puerto Rico police officers, Erick Rivera Nazario, Angel Torres Quinones and Antonio Rodriguez Caraballo today pleaded guilty to federal civil rights charges in connection with the fatal beating of 19-year-old Jose Luis Irizarry Perez, announced Acting Assistant Attorney General Molly Moran for the Civil Rights Division, United States Attorney Rosa Emilia Rodriguez-Velez for the District of Puerto Rico, and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.
These pleas, in conjunction with other recent pleas by Jimmy Rodriguez Vega, David Colon Martinez and Miguel Negron Vazquez brings the total number of Puerto Rico police officers pleading guilty to charges related to this incident to six.
According to documents filed in connection with the guilty pleas, former officer Rodriguez Vega and Lieutenant Rivera Nazario struck Irizarry Perez with their police batons while former officer Colon Martinez physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.
Rivera Nazario pleaded guilty to one count of depriving Irizarry Perez of his civil rights by striking him with his police baton. Torres Quinones pleaded guilty to obstruction of justice for providing misleading information to the local Puerto Rico prosecutor that initially investigated the matter. Former Sergeant Rodriguez Caraballo pleaded guilty to one count of perjury for making a false statement to the federal grand jury.
On Aug. 22, 2014, guilty pleas were entered by Colon Martinez and Negron Vazquez for their role in the case. Colon Martinez pleaded guilty to one count of making a false statement to the FBI and one count of perjury for making a false statement to the federal grand jury that investigated the incident. Negron Vazquez pleaded guilty to making a false statement to the FBI.
Rodriguez Vega pleaded guilty on March 8, 2013, to one count of depriving Irizarry Perez of his civil rights by striking him with his police baton.
“This case reflects the department’s commitment to ensuring that those officers who violate their oath by using excessive force or obstructing a federal investigation will be held accountable,” said Acting Assistant Attorney General Moran. “While the vast majority of police officers serve with the highest distinction, the Justice Department stands ready to investigate and prosecute those officers who cross the line and engage in criminal conduct.”
“We rely upon our police officers to protect and serve the community, but through their illegal actions, these officers abused their power and violated the public trust,” said U.S. Attorney Vélez. “I am hopeful that today’s pleas bring a measure of justice and closure to the victim’s family and the entire community.”
Rodriguez Vega and Rivera Nazario each face a maximum penalty of 10 years in prison and a fine of $250,000 for their convictions for violating Irizarry Perez’s civil rights.
Colon Martinez faces a maximum penalty of five years in prison and a $250,000 fine for each conviction of making a false statement to the FBI and making a false declaration to the federal grand jury.
Negron Vazquez faces a maximum penalty of five years in prison and a $250,000 fine for his conviction of making a false statement to the FBI.
Torres Quinones faces a maximum penalty of 20 years in prison and a fine of $250,000 for his conviction for obstruction of justice by providing misleading information to the local prosecutor.
Rodriguez Caraballo faces a maximum penalty of five years in prison and a $250,000 fine for his conviction for making a false declaration to the federal grand jury.
This case was investigated by the San Juan Division of the FBI and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel from the Civil Rights Division of the U.S. Department of Justice and Assistant U.S. Attorney Jose A. Contreras from the U.S. Attorney’s Office for the District of Puerto Rico.
Second of Five Spice Conspirators SentencedRead the Press Release
BOISE – Troy Palmer, 43, of Boise, Idaho, was sentenced today to 40 months in prison, followed by three years of supervised release for conspiring to launder money, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Palmer to pay a $2,000 fine, and a $100 special assessment. He pleaded guilty on February 10, 2014.
According to court documents, Palmer and three co-conspirators, Mark Ciccarello, William Mabry, and Robert Eoff, conspired to purchase and import from China chemicals known as AM2201, UR-144, and XLR11, which they used to treat innocuous plant matter to make spiceCa synthetic cannabinoid similar to substances—including JWH018—listed in Schedule I of the Controlled Substances Act. The Indictment alleged that they conspired to launder money illegally obtained through spice manufacturing and distribution.
Palmer admitted that he knowingly entered into a conspiracy with co-conspirators to conduct financial transactions in connection with a “spice” manufacturing and distribution business beginning in March 2011. Palmer also admitted to knowingly participating and assisting in the financial activity of the business by engaging in bank and other financial transactions, through both domestic and foreign financial institutions. The transactions consisted of the proceeds of prior illegal spice sales and other specified unlawful activity and, in many cases, the transactions conducted through financial institutions separately consisted of criminally derived property of a value greater than $10,000; most of the transactions occurred in Idaho, Washington and California.
William Mabry was sentenced on May 21, 2014, to 24 months in prison and ordered to pay $80,000 in restitution. Robert Eoff was sentenced July 10, 2014, to 26 months in prison and 36 months of supervised release. The one remaining co-conspirator, Mark Ciccarello, is scheduled to be sentenced on September 8, 2014.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Second East Hampton Resident Admits Role in Real Estate Appraisal Fraud SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANN HILS, 54, of East Hampton, pleaded guilty on Friday, August 22, 2014 before U.S. District Judge Alvin W. Thompson in Hartford to one count of conspiracy to commit mail and bank fraud related to a real estate appraisal scheme.
According to court documents and statements made in court, HILS was not a provisional or certified real estate appraiser in the state of Connecticut at any time. From in or about December 2006 to in or about March 2008, HILS knowingly and willfully conspired with her daughter and co-defendant, Brandy Gomez, to obtain real estate appraisal fees to which they were not entitled.
More specifically, HILS and Gomez knowingly submitted falsified work logs to the Connecticut Department of Consumer Protection purporting to show that Gomez, a provisional appraiser, completed dozens of real estate appraisals under the supervision of a certified appraiser when, in fact, Gomez had not performed such work and was not entitled to such appraisal fees.
Moreover, HILS knowingly and wilfully used the individual names, certified appraiser license numbers, business names, and, in some instances, signatures, of three certified appraisers without their authorization in dozens of materially false real estate appraisals.
HILS and Gomez obtained fees in connection with these false appraisals and split approximately $47,908 in proceeds.
Judge Thompson scheduled sentencing for November 14, 2014, at which time HILS faces a maximum term of imprisonment of 30 years.
On March 19, 2014, Gomez plead guilty to conspiracy to commit mail and bank fraud in the same appraisal scheme. She awaits sentencing.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation Division and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Sayre, Pennsylvania Couple Sentenced for Tax Evasion SchemeRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania, announced that Randy Talada, age 58, and Sandy Talada, age 59, both of Sayre, Pennsylvania, were sentenced by U.S. District Court Judge Matthew W. Brann today in Williamsport.
Randy Talada was sentenced to 21 months’ incarceration to be followed by a three-year term of supervised release for conspiracy to commit mail fraud and tax evasion. Sandy Talada was sentenced to 6 months’ incarceration and 6 months’ home confinement to be followed by a two-year term of supervised release for tax evasion.
The tax evasion was the result of the Taladas’ failure to report income derived from their theft of small game of chance winnings from the Fort Sullivan Post 246 American Legion located in Athens, Pennsylvania. Randy Talada, the Bar Club manager at the time of thefts, also failed to report his wages. He was also convicted for conspiracy to commit mail fraud for supplying false statements via mail to the State Worker’s Insurance Fund (SWIF). At the sentencing hearing today, he was ordered to pay $171,000 in restitution to SWIF. The Taladas also owe IRS approximately $54,000.
The investigation was conducted by the IRS, Criminal Investigations Division, the FBI and the Athens Borough Police Department. The case was prosecuted by Assistant United States Attorney Todd K. Hinkley.
Omaha Contractor and Companies Plead Guilty to Fraud SchemeRead the Press Release
DES MOINES, IA – On August 22, 2014, Omaha, Nebraska contractor Ram Hingorani pled guilty to Major Program Fraud in the United States District Court for the Southern District of Iowa, announced United States Attorney Nicholas A. Klinefeldt. In addition, one of Hingorani’s companies, Midwest Paving, Inc. (MPI), pled guilty to Money Laundering in furtherance of the scheme. MPI is a U.S. General Services Administration, Department of Defense, and Department of Veteran Affairs contractor. These admissions of guilt by Hingorani follow guilty pleas entered by Midwest Contracting, Inc. (MCI), on August 15, 2014, to Major Program Fraud and Wire Fraud.
On May 22, 2013, a Federal grand jury in the Southern District of Iowa issued a 32-count Indictment charging Hingorani, business partner Ronald Waugh, MCI and MPI, in connection with an approximate $23.5 million Service-Disabled Veteran-Owned Small Business (SDVOSB) fraud scheme. The charges included multiple counts of major fraud, wire fraud, money laundering and conspiracy. Additionally, agents seized approximately $3.9 million from 14 separate financial accounts.
Beginning in May of 2007 and continuing through August of 2010, MCI unlawfully received 45 set-aside and/or sole-source SDVOSB contracts from the U.S. Department of Veterans Affairs and U.S. Department of Defense (DoD), to include contracts involving American Recovery and Reinvestment Act (ARRA) funds. The investigation revealed MCI was a pass-through and/or front company for Hingorani’s other businesses and that Waugh was simply a figurehead or “rent-a-vet,” who was being used for his SDV status. Evidence demonstrates that the non-veteran Hingorani controlled MCI and certified MCI’s SDVOSB status through the General Service Administration’s Central Contractor Registration (CCR) and Online Representations and Certifications Application (ORCA) databases. As a result of falsely certifying MCI’s status as a SDVOSB, MCI received 45 federal contracts that would have otherwise been awarded to legitimate Service-Disabled Veteran Owned Small Business Concerns.
The United States has agreed to dismiss all charges against Ronald Waugh, the service disabled veteran utilized by Hingorani to perpetrate the fraud scheme.
As a result of his plea agreement, Hingorani faces a prison term of up to 24 months and forfeiture of the profits obtained as a result of the fraud scheme. The amount of forfeiture will be determined by the District Court following a sentencing hearing which will be scheduled at a later date. In addition, Hingorani, MCI and MPI are currently suspended and face administrative debarment from obtaining future government contracts.
This case was investigated by the General Service Administration-Office of Inspector General, US Department of Veterans Affairs-Office of Inspector General, the Department of Defense-Office of Inspector General, the Small Business Administration-Office of Inspector General, and the Federal Deposit Insurance Corporation-Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Nashville Businessman Charged with Bank Fraud and Aggravated Identity TheftRead the Press Release
NASHVILLE, Tenn.- August 25, 2014 - Eric Stephen Peterson, 52, of Nashville, Tennessee, was indicted by a federal grand jury on August 20, 2014, in connection with a scheme to defraud several banks by depositing checks with forged signatures into various accounts controlled by Peterson, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Peterson is the owner and operator of Peterson Insurance Company, LLC and Peterson Enterprises, LLC.
The indictment charges Peterson with 28 counts of bank fraud and two counts of aggravated identity theft.
"The U.S. Attorney’s Office takes a very serious and aggressive approach when working with our law enforcement partners to pursue those who commit financial crimes and so greatly impact the lives of those they steal from,” said U.S. Attorney David Rivera. “We will continue our efforts to insure that the lives of those responsible are equally impacted and that justice is appropriately served.”
The indictment alleges that Peterson, while managing the financial affairs of another person, obtained access to that person’s investment and bank accounts and then abused his position by forging more than 200 checks totaling more than $800,000. Peterson is alleged to have deposited those checks into seven different bank accounts which he controlled and then used the money to pay purported project principal and/or distributions to investors which he had previously solicited to make investments in certain ostensible business or investment opportunities. The indictment also alleges that Peterson forged the signature of another person who was authorized to sign the checks and that he used the money to pay his general living expenses, such as restaurant tabs, utility bills and mortgage payments.
“The Secret Service remains committed to protecting our nation’s financial security, to include aggressively investigating Ponzi schemes such as the one perpetrated by Mr. Peterson that prey on the trust of individuals, often robbing them of their life savings and financial future,” said Todd Hudson, Special Agent in Charge of the United States Secret Service - Nashville Field Office.
If convicted, Peterson faces up to 30 years in prison for the bank fraud counts, as well as an additional two years for each count of aggravated identity theft.
The case was investigated by the United States Secret Service. The United States is represented by Assistant U.S. Attorney Sandra G. Moses.
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
Murphysboro Resident Sentenced on Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn August 21, 2014, Heather L. Richey, 38, of Murphysboro, Ill., was sentenced for her involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Richey, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 57 months in federal prison, 3 years of supervised release, and fined $200. The offense occurred between 2010 and January 2014, in Jackson, Williamson, Union, and Franklin Counties. Evidence at the plea and sentencing hearings established that Richey obtained over 44 grams of pseudoephedrine to be used in the manufacture of methamphetamine. Co-defendant Leeann Simmerman was previously sentenced to 108 months in prison for her involvement in the methamphetamine conspiracy. Co-defendants Greg Emery and Tasha Craig have pled guilty and are awaiting sentencing. Ten other co-defendants have pled not guilty and are awaiting jury trial.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Multi-Convicted Felon Sentenced to over 11 Years in Prison for Possession of an AK-47 Assault RifleRead the Press Release
Orlando, FL –U.S. District Judge Carlos E. Mendoza today sentenced Tyruss Lydell Lomax (29, Sanford) to 11 years and 8 months in federal prison for possession of a firearm by a convicted felon. The Court also ordered Lomax to forfeit the Century International Arms AK-47 rifle used in the crime. Lomax pleaded guilty on May 14, 2014.
According to court documents, on May 31, 2012, Lomax walked to the rear passenger door of a parked 2006 Dodge Charger and removed an AK-47 assault rifle. He then ran towards the rear of a home in Sanford, Florida and hid. Law enforcement officers on the scene called for Lomax to come out of the home’s backyard, but he refused. Lomax eventually surrendered to officers and was taken into custody. The officers then found the AK-47 and two 30-round magazines near Lomax’s hiding spot. Prior to possessing the rifle, Lomax had been convicted of numerous felonies, including the sale of cocaine and resisting an officer with violence. He was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Joseph M. Schuster. This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy to reduce violent crime in communities.
Mexican National Admits Unlawfully Possessing A FirearmRead the Press Release
BOISE – Ciro Simon-Camacho, 33, a Mexican National, pleaded guilty today in United States District Court to one count of unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on May 18, 2014, Boise Police officers stopped a vehicle Simon-Camacho was driving. During the traffic stop, officers saw a handgun underneath his seat. Officers seized the handgun, which was loaded. During their investigation, law enforcement officers discovered that Simon-Camacho was unlawfully present in the United States and had been previously deported from the United States in 2002. Simon-Camacho is prohibited from possessing firearms because of his status as an alien unlawfully in the United States.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearm.
Simon-Camacho is scheduled to be sentenced on November 13, 2014, by Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Boise Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Homeland Security, Immigration and Customs Enforcement; and the 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.
Simon-Camacho 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.
Mercer County Man Sentenced for Selling HydromorphoneRead the Press Release
BLUEFIELD, W.Va. – Jimmy Dale Wright, age 57, of Rock, West Virginia, was sentenced today in Bluefield, West Virginia, by United States District Court Judge David A. Faber. Wright was sentenced to a 12-month term of imprisonment, and a three year term of supervised release. Wright previously pled guilty in April of 2014, to distributing a quantity of hydromorphone, a powerful and addictive prescription pain medication. Wright admitted that on August 7, 2013, he sold pills to a person who was cooperating with law enforcement authorities. The drug deal took place on Pocosin Fork Road in Lashmeet, Mercer County, West Virginia.
The West Virginia State Police Bureau of Criminal Investigations and the Southern Regional Drug and Violent Crime Task Force conducted the investigation.
This case was 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 United States 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.
Massillon, Ohio Landlords Agree to $850,000 Settlement to Resolve Housing Discrimination LawsuitsRead the Press Release
The Justice Department announced today that Massillon, Ohio landlords John and Mary Ruth have agreed to pay $850,000 to settle lawsuits filed by the Justice Department and other parties alleging that the Ruths discriminated on the basis of race and familial status at properties they formerly owned in Massillon. The settlement must still be approved by United States District Judge John R. Adams in the Northern District of Ohio.
The proposed settlement would resolve a lawsuit filed by the department on October 31, 2011, alleging that the Ruths and the companies through which they manage their properties had discriminated against African Americans and families with children at Yorkshire Apartments, Thackeray Ledges and Wales Ridge— three apartment complexes located in Massillon, Ohio. The settlement would also resolve related lawsuits raising similar allegations filed by Stark County, the Ohio Civil Rights Commission and several former property managers and tenants at the complexes. In an order issued on March 31, 2014, the court noted that 10 of Mr. Ruth’s former employees had testified that they were instructed to discriminate against African Americans and that other former employees had testified that they been instructed to discriminate against families with children. The court ruled that the department had presented sufficient evidence of a pattern or practice of unlawful discrimination by the defendants for the case to go to trial before a jury.
Under the terms of the settlement, the defendants will pay:
· $650,000 in damages and attorney’s fees to the plaintiffs in the lawsuits filed by the Ohio Civil Rights Commission, Stark County and several former residents and property managers;
· $175,000 in damages to 11 additional former residents and employees identified by the United States who had been harmed by the defendants’ discrimination; and
· $25,000 in a civil penalty to the United States.
“It is a sad fact that decades after the passage of the Fair Housing Act, many people still face unlawful discrimination when looking for housing,” said Molly Moran, Acting Assistant Attorney General for the Civil Rights Division. “The magnitude of this settlement makes clear that the Department of Justice will vigorously pursue violations of the Fair Housing Act.”
“The freedom of every family to live where they wish, without regard to their race or if they have kids, is basic to who we are in this country,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “When landlords deny that basic right, there will be consequences. We will continue to work hard to ensure that this fundamental right is protected in Ohio and across the nation.”
The settlement also requires that the defendants hire an independent management company to manage all of their rental properties, receive training on the requirements of the Fair Housing Act and report to the department for a period of three years on their compliance with the settlement. The settlement also requires the defendants to hire a third party to periodically test their properties to ensure compliance with the Fair Housing Act.
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] , or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp .
Massillon Landlords Pay $850,000 to Resolve Housing Discrimination LawsuitsRead the Press Release
The Justice Department announced today that Massillon, Ohio landlords John and Mary Ruth have agreed to pay $850,000 to settle lawsuits filed by the Justice Department and other parties alleging that the Ruths discriminated on the basis of race and familial status at properties they formerly owned in Massillon.
The settlement must still be approved by United States District Judge John R. Adams in the Northern District of Ohio.
The proposed settlement would resolve a lawsuit filed by the department on October 31, 2011, alleging that the Ruths and the companies through which they manage their properties had discriminated against African Americans and families with children at Yorkshire Apartments, Thackeray Ledges and Wales Ridge— three apartment complexes located in Massillon, Ohio. The settlement would also resolve related lawsuits raising similar allegations filed by Stark County, the Ohio Civil Rights Commission and several former property managers and tenants at the complexes. In an order issued on March 31, 2014, the court noted that 10 of Mr. Ruth’s former employees had testified that they were instructed to discriminate against African Americans and that other former employees had testified that they been instructed to discriminate against families with children. The court ruled that the department had presented sufficient evidence of a pattern or practice of unlawful discrimination by the defendants for the case to go to trial before a jury.
Under the terms of the settlement, the defendants will pay:
- $650,000 in damages and attorney’s fees to the plaintiffs in the lawsuits filed by the Ohio Civil Rights Commission, Stark County and several former residents and property managers;
- $175,000 in damages to 11 additional former residents and employees identified by the United States who had been harmed by the defendants’ discrimination; and
- $25,000 in a civil penalty to the United States.
“It is a sad fact that decades after the passage of the Fair Housing Act, many people still face unlawful discrimination when looking for housing,” said Molly Moran, Acting Assistant Attorney General for the Civil Rights Division. “The magnitude of this settlement makes clear that the Department of Justice will vigorously pursue violations of the Fair Housing Act.”
“The freedom of every family to live where they wish, without regard to their race or if they have kids, is basic to who we are in this country,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “When landlords deny that basic right, there will be consequences. We will continue to work hard to ensure that this fundamental right is protected in Ohio and across the nation.”
The settlement also requires that the defendants hire an independent management company to manage all of their rental properties, receive training on the requirements of the Fair Housing Act and report to the department for a period of three years on their compliance with the settlement. The settlement also requires the defendants to hire a third party to periodically test their properties to ensure compliance with the Fair Housing Act.
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Manager Sentenced to 72 Months in Prison in Loan Modification Fraud Scheme CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce that Robert Bacon, 35, of West Newbury, Massachusetts, was sentenced by U.S. District Judge Kenneth Marra to 72 months in prison, to be followed by three years of supervised release and payment of restitution in an amount to be determined. Bacon previously pled guilty to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341.
Eight of ten defendants charged in this case have pled guilty to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. Defendants Jason Vitulano and Jeffrey Taylor are currently set for trial starting on November 10, 2014.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided.
The other defendants who have previously been sentenced include the following, with their respective sentences:
- Peter Brown, 27, of Sound Beach, NY, was sentenced to 33 months in prison and two years of supervised release;
- Ajay Thuraisingham, 27, of Ontario, Canada, was sentenced to 54 months in prison and three years of supervised release;
- Christopher Duharte, 36, of Coconut Creek, was sentenced to 30 months in prison and three of years supervised release;
- Gregory Small, 29, of Boca Raton, was sentenced to 30 months in prison and two years of supervised release;
- Arthur Fogarty, 57, of Hollywood, was sentenced to 21 months in prison and two years of supervised release.
Co-defendants Neil Sack, 40, of Ft. Lauderdale, and Brian Fleuridor, 30, of Delray Beach, are each scheduled for sentencing on September 26, 2014, at 9:00 a.m. and 9:30 a.m., respectively.
The indictment alleges that Jason Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Robert Bacon was an operations manager who wrote and edited sales scripts, while the other eight defendants served as team managers of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments.
As alleged in the indictment, the defendants made false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling more than seven million dollars to the defendants.
Mr. Ferrer commended the investigative efforts of USSS and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
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.
Louisiana Psychiatrist Sentenced to Serve More Than Seven Years in Prison for His Role in $258 Million Medicare Fraud SchemeRead the Press Release
A Louisiana psychiatrist was sentenced in federal court in Baton Rouge, Louisiana, today to serve 86 months in prison for his role in a $258.5 million Medicare fraud scheme involving partial hospitalization psychiatric services. He was further ordered to pay $43.5 million in restitution and to forfeit all proceeds from the fraudulent scheme.
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 D. “Buddy” Caldwell made the announcement. Chief U.S. District Court Judge Brian A. Jackson of the Middle District of Louisiana imposed the sentence.
According to documents filed in the case, Zahid Imran, M.D., 56, of Baton Rouge, served as the medical director of Shifa Community Mental Health Center of Baton Rouge, and co-owned Serenity Center of Baton Rouge and Shifa Community Mental Health Center of Texas. As part of the scheme, Imran admitted mentally ill patients to the facilities, some of whom were inappropriate for partial hospitalization, and then re-certified the patients’ appropriateness for the program in an effort to continue to bill Medicare for services. To support the fraudulent Medicare billing, Imran and others falsified patient treatment records to reflect services on dates when no such services were provided. Imran pleaded guilty on May 13, 2014, to conspiracy to commit health care fraud.
Law enforcement’s 2011 investigation into the three community mental health centers 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 during this period. Medicare paid approximately $43.5 million on those claims.
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.
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 .Lincoln and Council Bluffs Women Sentenced for Conspiracy to Commit Wire FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Tempest Amerson, 24, of Lincoln, Nebraska, and Rosland Starks, 45, of Council Bluffs, Iowa, were sentenced on August 21, in Lincoln, Nebraska, by United States District Judge John M. Gerrard, for conspiracy to commit wire fraud. Amerson received a sentence of 4 months in prison, and Starks received a sentence of 20 months in prison for their roles in the conspiracy. After their release from prison, each will be required to serve a 3 year term of supervised release, and to pay restitution in the amount of $13,671.
The conspiracy which led to the convictions of Amerson and Starks stems from their participation in a scheme which defrauded victims beginning on or about May 2011, and continuing through at least November 2013. As a part of the scheme, co-conspirators would contact elderly individuals in multiple states by phone, and convince the victims to wire money to another member of the conspiracy. Amerson and Starks would receive the wired monies or transfer the monies to another member of the conspiracy after keeping a portion for themselves. To convince the victim to wire money, the caller would purport to be a family relative, or person acting on a relative’s behalf, who needed money immediately due to fabricated emergencies such as motor vehicle accidents or arrests.
This case was investigated by Homeland Security Investigations, United States Department of Homeland Security.
Leader of Cocaine Trafficking Organization Pleads Guilty to Federal ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – The leader of a large drug trafficking organization was convicted in Federal court and now faces a lengthy prison sentence.
United States Attorney William J. Ihlenfeld, II, announced that Cedric Malachi Jones a/k/a “BG,” age 33, of South Ozone Park, New York, and formerly of Palm Coast, Florida, entered a plea of guilty to “Possession with Intent to Distribute Cocaine.” At the request of the government Jones remains in custody pending sentencing, at which time he will face up to 20 years in prison.
JONES was the leader of a group that caused controlled substances to be transported from other parts of the country to Keyser, West Virginia, for redistribution. The case was investigated by the Potomac Highlands Drug & Violent Crime Task Force, which consists of officers from the Federal Bureau of Investigation and the West Virginia State Police - Bureau of Criminal Investigations.
This prosecution of this case is being handled by Assistant United States Attorney Jarod J. Douglas. It was investigated by the Potomac Highlands Drug & Violent Crime Task Force, which consists of officers from the Federal Bureau of Investigation and the West Virginia State Police - Bureau of Criminal Investigations.
In other matters before U.S. Magistrate Judge Robert W. Trumble, Adrian Nicholas Sanchez a/k/a “ACE,” age 30, of Cumberland, Maryland and Christopher Lee Redman, age 30, entered pleas of guilty to “Conspiracy to Distribute Cocaine.” Sanchez and Redman will forfeit $5,661 as well as pay a $90,000 money judgment. Sanchez and Redman are in custody pending sentencing and face up to 20 years in prison.Ebony Ishia Haynes Jack, age 33, of South Ozone Park, New York, formerly of Palm Coast, Florida, entered a plea of guilty to “Money Laundering Conspiracy.” Jack is free on bond and faces up to 20 years in prison.
James Willard Johnson, age 39, of Martinsburg, entered a plea of guilty to “Distribution of Crack Cocaine.” Johnson is in custody pending sentencing and faces up to 20 years in prison.
Navarre Sowell, age 38, of Hagerstown, Maryland, entered a plea of guilty to “Illegal use of a Telephone to Facilitate the Distribution of Crack Cocaine.” Sowell, who is in custody pending sentencing, faces up to 8 years in prison.
Shaye Christopher Donald Cole, age 27, of Shenandoah Junction, West Virginia, entered a plea of guilty to “Felon in Possession of a Firearm.” Cole was previously convicted of a felony in the Circuit Court of Frederick County, Virginia. Cole is free on bond pending sentencing and faces up to 10 years in prison.
Shaquille Montrel Robinson, age 21, of Charles Town, West Virginia, entered a plea of guilty to “Felon in Possession of a Firearm.” Robinson has prior convictions for “Wanton Endangerment” and “Unlawful Assault” in the Circuit Court of Jefferson County, West Virginia. Robinson is in custody pending sentencing and faces up to 10 years in prison. Robinson was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson County Sheriff’s Office and the Ranson Police Department.Kissimmee Man Sentenced to 30 Months in Federal Prison for over $1 Million in Tax EvasionRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell today sentenced Walter Medlin (71, Kissimmee) to 30 months in federal prison for tax evasion. He was also ordered to serve a one year term of supervision, upon his release from prison. Medlin pleaded guilty on February 4, 2014.
According to court documents, Medlin received more than $7.5 million in income from the sale of interest in a landfill. Rather than report that income on his tax return, Medlin attempted to evade his taxes by using several limited partnerships to conduct transactions for his benefit. As the result of a prior ruling of the United States Tax Court, Medlin knew that he could not use nominees, such as the limited partnerships, to evade his taxes in this manner. To further conceal his tax evasion, Medlin failed to file a tax return, but submitted requests for extensions in which he falsely represented that he did not owe any taxes. The total amount of taxes that Medlin attempted to evade was over $1.1 million. As part of his plea agreement, Medlin has agreed to file his tax return and pay his taxes, penalties, and interest.
This case was investigated by the Internal Revenue Service - Criminal Investigation Division. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Kern County Man Sentenced for Conspiracy to Distribute 17 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. —Jorge Guevara, 35, of Arvin, was sentenced today by United States District Judge Lawrence J. O'Neill to six years and eight months in prison for a conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Guevara attempted to sell 17 pounds of methamphetamine to an undercover Kern County Sheriff’s Deputy. On June 26, 2013, Guevara and co-defendant Jerardo Villareal met with the undercover deputy in the parking lot of a fast food restaurant in Bakersfield to complete the sale of drugs. Upon their arrest, 17 pounds of methamphetamine was found hidden in the vehicle that the defendants were driving.
On May 30, 2014, Villareal pleaded guilty to the conspiracy to distribute and possess methamphetamine with the intent to distribute. He is scheduled to be sentenced on September 22, 2014. He faces a sentence of five to 40 years in prison and up to a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Kern County Sheriff’s Department and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Kankakee County Man Pleads Guilty to Three Counts of Distribution of Crack CocaineRead the Press Release
Urbana, Ill. Sentencing has been scheduled for Dec. 15, 2014, for a St. Anne, Ill., man, Edward Dorsey Sr., 42, who entered open pleas of guilty on Friday to three counts of distributing crack cocaine in Kankakee County. Dorsey appeared on Aug. 22, before U.S. Magistrate Judge David G. Bernthal. The indictment, returned by a grand jury in May 2014, charged Dorsey with distribution of more than 28 grams (approximately one ounce) of crack cocaine on two occasions, Nov. 21 and Dec. 18, 2013, and with distribution of crack cocaine on Dec. 10, 2013.
A petition to revoke Dorsey’s federal supervised release remains pending. Dorsey was serving a three-year term of supervised release for a prior federal drug crime at the time he admitted to committing the crimes as charged in the indictment.
The petition to revoke Dorsey’s supervised release was filed by the U.S. Probation Office for the Central District of Illinois based on the drug trafficking charges, as well as allegations of aggravated unlawful restraint and battery involving a firearm in violation of state law. According to the petition to revoke supervised release, Dorsey allegedly kidnapped and battered a man at a Citgo Gas Station in Pembroke, Ill., on Jan. 9, 2014. The petition further alleges that Dorsey grabbed the man by the shirt, forced him into a car, pointed a gun at him, and punched and choked him. The petition alleges that Dorsey drove around with the man until Dorsey found a stolen television, at which point, he let the man go.
At sentencing, for the drug offenses, Dorsey faces a mandatory minimum sentence of 10 years to life in prison under the revised penalties contained in the Fair Sentencing Act. If Dorsey’s supervised release is revoked, he could be sentenced to up to three years in prison in addition to his sentence for the drug trafficking charges. Dorsey remains detained in the custody of the U.S. Marshals Service.
The charges are the result of an investigation by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kankakee Police Department, and the Kankakee County Major Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Justice Department Announces Successful Resolution of Consent Judgment Involving Detroit Police DepartmentRead the Press Release
The Justice Department today announced the U.S. District Court for the Eastern District of Michigan’s termination of the consent judgment relating to the Detroit Police Department’s (DPD) use of force and arrest and witness detention practices. The Justice Department and the city of Detroit jointly sought the termination of the consent judgment and approval of a Transition Agreement maintaining federal oversight of the DPD for an additional 18 months. The transition agreement starts a new chapter of reform and accountability for the DPD as it works in collaboration with the Justice Department to better ensure constitutional policing, promote community confidence, and improve public safety in the city of Detroit. The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Michigan have worked cooperatively throughout the duration of this matter.
The consent judgment was entered in 2003 and required comprehensive reforms of the DPD to remedy its patterns and practices of use of excessive force and unlawful detentions and arrests identified by the Justice Department following a two-and-a-half-year investigation. A second, concurrent consent judgment was also entered addressing unconstitutional conditions of confinement in the DPD’s holding cells. A court-appointed monitor was selected to evaluate the city’s compliance with both judgments.
Through substantial compliance with the consent judgment, the DPD has significantly reformed its use of force and witness detention practices. The DPD has effectively eliminated the unconstitutional practices that made the consent judgment necessary through comprehensive policy revision; enhanced training, supervision and investigative practices; and improved accountability systems, including the development of a comprehensive risk management system. The effects of these changes are evident in the reduction of the DPD’s officer-involved shootings and other uses of force, and the abolition of its past practice of detaining witnesses during investigations of serious crimes.
"Today's transition agreement with the Detroit Police Department is yet another example that law enforcement agencies can change to better serve their communities when they commit to meaningful reform," said Attorney General Eric Holder. "The Department of Justice has entered into agreements with police departments large and small across the country over the past five years and I applaud Detroit for setting an example by showing that these agreements can create the constitutional and community policing models that all communities deserve."
“The court’s order today to terminate the consent judgment and move to a transition agreement is an important step, but does not end the Department of Justice’s oversight of the Detroit Police Department,” said U.S. Attorney Barbara McQuade for the Eastern District of Michigan. “We are pleased that the Detroit Police Department has made fundamental changes in its practices and procedures, but we will continue to monitor for an additional 18 months to ensure that these changes are sustained and that the people of Detroit receive the constitutional policing that they deserve.”
Although the DPD is greatly improved, and the city had substantially complied with the requirements of the consent judgment, the Justice Department and the city acknowledged that additional work remains to be done to ensure that the consent judgment’s reforms are fully realized and maintained. The transition agreement approved today by the court provides an opportunity for the DPD to continue that work and demonstrate to the Justice Department and the people of Detroit that it can satisfy its mission of promoting public safety in a manner that is fair, just and constitutional.
The other concurrent consent judgment relating to the conditions of confinement in DPD holding cells was terminated earlier this year after the city, which had fully complied with that judgment’s terms, completed the transfer of custodial responsibility for all DPD detainees to the Michigan Department of Corrections.
Under the 1994 Violent Crime Control and Law Enforcement Act, the Justice Department has the authority to file civil suits against law enforcement agencies that engage in a pattern of misconduct. The department also has the authority to file suit against law enforcement agencies that receive federal funds and engage in a pattern of discrimination. For more information on the Justice Department’s Civil Rights Division or the Detroit consent judgments, visit www.justice.gov/crt or call the U.S. Attorney’s Office Civil Rights hotline at (313) 226-9151. Community members may also email the Civil Rights Division at [email protected] .
Jackson Woman Sentenced for Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – Ladonna Cooper, age 30, of Jackson, was sentenced to 20 months for conspiracy to defraud the United States, U.S. Attorney Gregory K. Davis announced today.
Cooper, a former employee of the Mississippi Department of Corrections, previously pled guilty to stealing personal identifying information, including names and social security numbers, from the Central Mississippi Correctional Facility located in Rankin County. The information was then used by others to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. Those refunds were then electronically deposited into various bank accounts in Mississippi belonging to Cooper’s co-conspirators. Following her prison sentence, Cooper will be on supervised release for 3 years during which she must pay restitution to the United States Government in the amount of $222,137.13.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Jackson Woman Sentenced for Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – Pamlia Johnson, age 41, of Jackson, was sentenced to 14 months for conspiracy to defraud the United States, U.S. Attorney Gregory K. Davis announced today.
Johnson a former employee of the University of Mississippi Medical Center, previously pled guilty to stealing patient’s personal identifying information, including names and social security numbers, from the Jackson hospital. The information was then used by others to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. Those refunds were then electronically deposited into various bank accounts in Mississippi belonging to Johnson’s co-conspirators. Following her prison sentence, Johnson will be on supervised release for 3 years during which she must pay restitution to the United States Government in the amount of $82,040.00.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Gila River Man Sentenced to over 15 YearsRead the Press Release
PHOENIX – On Aug. 25, 2014, Curtis Ray Manuel, 23, of Bapchule, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge G. Murray Snowto 187 months in prison to be followed by lifetime supervised release. Manuel pleaded guilty on June 11, 2014, to abusive sexual contact of a minor
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, 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.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-00065-PHX-GMS
RELEASE NUMBER: 2014-049_ManuelGeorgia Man Sentenced for Tax Fraud and Identity TheftRead the Press Release
ATLANTA –Mauricio Warner has been sentenced to 20 years in prison for using the identities of thousands of unsuspecting individuals to file federal tax returns claiming over $5 million in bogus refunds.
“Lengthy prison sentences wait for the growing number of criminals who use other people’s personal information to file phony tax returns,” said United States Attorney Sally Quillian Yates. “Mr. Warner deceived over 5,000 victims to get his hands on their names and Social Security numbers, and then used their information to steal over $5 million in fraudulent tax refunds. He will now spend years behind bars and have to pay back his ill-gotten gains. As this sentence shows, tax fraud and identity theft are crimes that do not pay.”
“IRS Criminal Investigation will remain proactive in the investigation of individuals who engage in stealing the identities of innocent people,” said Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service-Criminal Investigation. “We will continue to utilize every tool available to investigate those who victimize members of our community and innocent taxpayers for their own personal gain. As the defendant in this case has learned, stealing from the American people will not be tolerated.”
According to United States Attorney Yates, the charges and other information presented in court: From approximately January 2011 to April 2012, Warner filed over 5,000 false tax returns using the names and Social Security numbers of unsuspecting victims. Victims were told they could submit an application for an “Obama stimulus payment” or “Free Government Money” by providing their names and Social Security numbers. In addition to word-of-mouth marketing, Warner used toll-free telephone numbers to collect victims’ personal identifying information. He then used the victims’ names and Social Security numbers to claim millions of dollars in fraudulent refunds. On the returns, Warner claimed false income amounts and student credits to generate the bogus tax refunds, and directed the IRS to pay the refund amounts to bank accounts he controlled. The victims did not know tax returns were being filed in their names.
Warner, 38, of Smyrna, Ga., was sentenced by United States District Judge Charles A. Pannell, Jr. to 20 years in federal prison and three years of supervised release, and ordered to pay $5,041,869 in restitution. The Court also ordered the forfeiture of seven bank accounts controlled by Warner that contain $4,185,455.31 in funds derived from or involved in this scheme. On April 18, 2014, a jury convicted Warner of 16 counts of wire fraud, 16 counts of aggravated identity theft, 16 counts of filing false claims, and two counts of money laundering. Numerous victims testified at trial. Warner was taken into custody after the verdict.
This case was investigated by Special Agents of the Internal Revenue Service– Criminal Investigation. If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorneys Stephen H. McClain and Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.