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30 September 2014
Michigan Home Health Agency Owner Charged in Connection with $2.6 Million Home Health Care SchemeRead the Press Release
An owner of a Detroit-area home health agency has been charged for her alleged role in a $2.6 million home health care scheme involving the payment of kickbacks to patient recruiters and physicians for the referral of Medicare beneficiaries.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office, and Special Agent in Charge Jarod Koopman of the Internal Revenue Service – Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.
Rahmat Begum, 48, of Farmington Hills, Michigan, was charged in a six-count indictment, unsealed today, with conspiracy to commit wire fraud, false statements relating to health care matters, conspiracy to violate the Anti-Kickback Statute and money laundering.
According to allegations in the indictment, Begum co-owned and operated Empirical Home Health Care Inc., an Oakland County, Michigan, home health agency that purported to provide in-home health care services to Medicare beneficiaries. Begum allegedly paid kickbacks to patient recruiters and physicians for their referral of Medicare beneficiaries to Empirical Home Health Care. The indictment also alleges that Begum laundered the proceeds of the scheme through a company known as Focal Project Management Consulting.
According to the indictment, Medicare paid Empirical approximately $2,661,331 for false and fraudulent home health care claims where the referrals were obtained through the payment of kickbacks.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James McDonald of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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Miami-Dade County Resident Sentenced for Identity Theft Schemes Involving Fraudulent Social Security Benefits and Income Tax RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General (OIG), Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Thervil Alcinor, 34, of Miami, was sentenced before U.S. District Judge Cecilia M. Altonaga to 88 months in prison, followed by three years of supervised release.
Alcinor previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, from January 2013 through May 2014, Alcinor was involved in the use of personal identifying information (names, dates of birth, and social security numbers belonging to real people) to file fraudulent applications for Social Security Retirement Insurance Benefits (RIB) and Social Security Disability Insurance Benefits (DIB), and to file fraudulent income tax returns with the IRS claiming false refunds.
Court documents state that Alcinor was involved in establishing online accounts on the Social Security Administration website, MySSA.gov, for already-existing RIB or DIB beneficiaries to redirect RIB and DIB payments to accounts (often prepaid debit card accounts) controlled by him. Law enforcement identified 945 fraudulently established MySSA accounts, all with similarly concocted fraudulent email addresses. The fraudulent claims resulted in $700,462 in fraudulent RIB and DIB payments.
According to court documents, Alcinor was also involved in the filing of fraudulent tax returns claiming refunds from the IRS which he directed into accounts (often prepaid debit card accounts) controlled by him. Specifically from April 2012 through September 2013, 54 fraudulent income tax refunds, totaling $174,862.20, were identified by H&R Block records as having been deposited into accounts associated with Alcinor. An additional 14 fraudulent tax refunds, totaling $31,137.28, were connected to the scheme by IRS.
Mr. Ferrer commended the investigative efforts of SSA-OIG, IRS-CI and FBI. The case was prosecuted by Assistant U.S. Attorney Frank R. Maderal.
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.
Miami Home Health Care Agency Owner Indicted in $8 Million Medicare Fraud SchemeRead the Press Release
The owner of a Miami home health care agency has been arrested in connection with an $8 million health care fraud scheme involving Acclaim Home Healthcare Inc.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
In an indictment returned on Sept. 25, 2014, and unsealed today, Orelvis Olivera, 45, of Miami, was charged with conspiracy to commit health care and wire fraud, conspiracy to pay and receive kickbacks and paying and receiving kickbacks in connection with a federal health care benefit program.
According to the indictment, Acclaim Home Health was a Miami-based home health care agency that purported to provide home health care and physical therapy services to Medicare beneficiaries. Olivera allegedly paid kickbacks to patient recruiters in return for the recruiters’ referral of Medicare beneficiaries to Acclaim Home Health. In addition, Olivera allegedly solicited and received kickbacks in return for referring Medicare beneficiaries to other Miami-based home health care agencies.
As alleged in the indictment, from May 2008 to June 2014, Acclaim Home Health billed Medicare approximately $8 million for fraudulent claims, and was paid approximately $7.3 million by Medicare for those claims.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Kelly Graves of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
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Men Sentenced for Passing Counterfiet CurrencyRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, announces that CHRIS CHARLES CHAMBERS and SCOTT THOMAS TOTO have been sentenced passing counterfeit United States currency in violation of Title 18, United States Code, Section 471. Judge William Steele sentenced Chambers to serve 30 months imprisonment and Toto to serve 33 months imprisonment. Both defendants have to pay a $100 SA, restitution and serve three years supervised release after their release from incarceration.
This case was investigated by Baldwin County Sheriff’s Office and the United States Secret Service. The case was prosecuted by the United States Attorney=s Office for the Southern District of Alabama, AUSA Maria E. Murphy.
Man Who Fled Newark Bank Robbery in A Taxi Pleads GuiltyRead the Press Release
NEWARK, N.J. - An Essex County man who left the scene of the crime by hailing a cab admitted today to robbing the New York Community Bank in Newark, U.S. Attorney Paul J. Fishman announced.
Willie Chestnut Jr., 61, of Newark, pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of bank robbery.
According to documents filed in this case and statements made in court: Chestnut robbed the New York Community Bank in Newark on Oct. 11, 2013, by intimidating the teller and another bank employee who attempted to intercede. He approached the teller and told her he needed to make a withdrawal. After the teller handed him a withdrawal slip, Chestnut demanded bills from the top teller drawer.
Chestnut was arrested by officers of the Newark Police Department shortly after the robbery fleeing the scene in a taxi cab, wearing the same clothes he wore during the robbery, with the stolen money and the withdrawal slip in his pocket.
The bank robbery count carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gain or loss from the offense. Sentencing is currently scheduled for Jan. 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Newark Police Department for its contribution.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Assistant Federal Public Defender Lisa Mack Esq., NewarkChestnut Willie Jr Information.pdf
Man Sentenced to Prison for Selling Counterfeit Baseball Cards, Including Babe Ruth and Mickey Mantle FakesRead the Press Release
A Pennsylvania man was sentenced to nearly three years in prison for selling counterfeit baseball cards of Mickey Mantle, Babe Ruth and others on eBay, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Steven Norris, 39, of Milton, Penn., was sentenced to 32 months in prison after pleading guilty earlier this year to three counts of mail fraud. Norris was also ordered to pay restitution totaling $49,660.
Norris’ brother and co-defendant, Scott Norris, 40, of Brecksville, was previously sentenced to four years of probation for his role in the offense and was ordered to pay restitution of $28,160.
“These defendants used the legends of America’s pastime to fraudulently get tens of thousands of dollars,” Dettelbach said. “This prison sentence should send a message to would-be fraudsters, whether they use baseball cards or elaborate investment schemes to rip off the public.”
From 2006 through 2012, Steven and Scott Norris advertised various baseball cards for sale on eBay. They utilized numerous email addresses to list the cards for sale. The cards, if genuine, would have been rare and valuable, including 1952 Mickey Mantle cards and 1933 Babe Ruth cards, according to court documents.
The Norris’ accepted payments from bidders but failed to deliver the cards as required. In some instances, Steven and Scott Norris sent counterfeit or “reprinted” cards to successful bidders rather than the genuine cards advertised for sale, according to court documents.
In other instances, Steven and Scott Norris contacted individuals who bid on the cards, represented the high bidder was unable to complete the transaction, and asked if the “runner up” bidder was interested in buying the item. They would then negotiate a sales price and direct the buyer to mail a cashier’s check to an address in Brecksville owned by the defendants’ parents. After receiving payment, Steven and Scott Norris would fail to deliver the items in question or sent counterfeit or “reprinted” baseball cards to the buyers, according to court documents.
As a result of the scheme, individual bidders and PayPal suffered losses of approximately $60,310, according to court documents.
The case was prosecuted by Assistant United States Attorney Robert W. Kern following an investigation by the United States Secret Service and the Brecksville Police Department.
Man Sentenced to 35 Years in Prison for Child Pornography OffensesRead the Press Release
TUCSON, Ariz. – On Sept. 29, 2014, Howard Wesley Cotterman, 73, of Truckee, Calif., was sentenced by Chief U.S. District Judge Raner C. Collins to serve 35 years in prison for child exploitation offenses. Following a trial in June 2014, Cotterman was found guilty of two counts of production of child pornography, one count of transportation of child pornography, one count of possession of child pornography, and one count of importation of obscene materialCotterman’s term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender.
On June 27, 2007, Cotterman was indicted by a federal Grand Jury. An investigation revealed that Cotterman sexually abused a young girl multiple times over a two year period, beginning when she was seven years old. The photographs and videos memorializing the abuse were discovered on Cotterman’s laptop after he crossed the international border from Mexico into Arizona. Before his arrest, Cotterman fled to Australia, requiring that he be extradited back to the United States for prosecution.
Cotterman was convicted in 1992 in California of thirty-three offenses, which included two counts of use of a minor in sexual conduct, two counts of lewd and lascivious conduct upon a child, and three counts of annoy/molest a child.
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 Homeland Security Investigations, Tucson. The prosecution was handled by Carin C. Duryee and Carmen F. Corbin, District of Arizona, Tucson.
CASE NUMBER: CR-07-01207-TUC-RCC
RELEASE NUMBER: 2014-055_Cotterman- Long-Time Nigerian Fugitive Ordered to Prison for Importing Heroin into the U.S.
Lebanon Man Pleads Guilty to Firearm ChargeRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Lawrence Young, 54, of Lebanon, Maine, pled guilty today in U.S. District Court before Judge
D. Brock Hornby to being a felon in possession of a firearm.According to court records, Young was discovered hunting with a 16-gauge shotgun in the area of Acton, Maine on May 1, 2014. Young was prohibited from possessing firearms on account of two prior felony convictions.
Young faces up to 10 years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Maine State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lawrence Woman Pleads Guilty to Embezzling More Than $750,000Read the Press Release
TOPEKA, KAN. - A Lawrence woman pleaded guilty Tuesday to embezzling more than $750,000 from her employer, U.S. Attorney Barry Grissom said.
Sharon Ann Holladay, 58, Lawrence, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted the crime occurred while she worked as the officer manager for Westheffer Company, a Lawrence business that manufactures and sells agricultural chemical spray equipment.
Holladay used her access to the company’s financial system to transfer money from the operations account to a petty cash fund she controlled. She also used her access to the payroll system to give herself unauthorized bonuses and commissions. In addition, she made unauthorized purchases on the company’s credit card.She embezzled a total of between $750,000 and $1 million from the company.
Sentencing will be set for a later time. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the Lawrence Police Department, the FB I and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Largo Man Sentenced to More Than Eight Years for Accessing and Viewing Child PornographyRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Eric Thomas (37, Largo) to eight years and one month in federal prison for accessing with the intent to view child pornography. Thomas was indicted on September 25, 2013. A federal jury found him found guilty on June 12, 2014.
According to testimony and evidence presented at trial, on July 21, 2012, Thomas’s then wife discovered evidence that he had been using the couple’s home computer to look at child pornography on the Internet. She notified law enforcement. A subsequent search and forensic analysis of the computer revealed that more than 850 images of child pornography had been deleted from the computer. Thomas had taken considerable steps to conceal his activities and remove Internet history and child pornography files from his computer.
This case was investigated by the Federal Bureau of Investigation, Largo Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Josephine W. Thomas.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Justice Department Settles Allegations of Disability-Based Housing Discrimination with West Virginia DeveloperRead the Press Release
The Justice Department announced today that developer Douglas Pauley and entities affiliated with him have agreed to pay $110,000 and make approximately $1.7 million in retrofits required to remove accessibility barriers at 30 apartment complexes, involving more than 750 units in West Virginia. The parties’ agreement will settle the United States’ claims that defendants had violated the Fair Housing Act and the Americans with Disabilities Act by building the complexes with a variety of features that made them inaccessible to persons with disabilities. The United States District Court for the Southern District of West Virginia approved the settlement yesterday.
Under the terms of the agreement, Pauley, as General Partner of 30 limited liability partnerships, must take extensive actions to make the complexes accessible to persons with disabilities, including wheelchair users. These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb ramps to allow persons with disabilities to access the sidewalks from the parking areas, replacing cabinets in bathrooms and kitchens to provide sufficient room for wheelchair users, and reducing door threshold heights. In addition, defendants will pay $100,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $10,000 as a civil penalty.
“The Fair Housing Act protects the rights of persons with disabilities to have equal opportunities to enjoy the housing of their choice,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “And this comprehensive resolution will ensure equal access to persons with disabilities at 30 apartment complexes and will compensate those injured by the failure to provide accessible housing.”
“Housing is a fundamental human need, and it’s deeply unfair to deny persons with disabilities equal access to it,” said Booth Goodwin, United States Attorney for the Southern District of West Virginia. “Thanks to this case, the developer will be required to devote nearly $2 million to correcting and compensating for the harm that he and his companies have caused. That’s an important victory for West Virginians with disabilities.”
Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement. Notices of the settlement and a list of subject properties will be published in the Charleston Gazette. Persons who believe they were subjected to unlawful discrimination at one of those properties either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993 or e-mail the Justice Department at [email protected].
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Justice Department Settles Allegations of Disability-based Housing Discrimination with West Virginia DeveloperRead the Press Release
Note: The consent order is available here: Pauley Consent Order
_________________________________________________________________________
FOR IMMEDIATE RELEASE CRT
TUESDAY, SEPTEMBER 30, 2014 (202) 514-2007
WWW.JUSTICE.GOV TTY (866) 544-5309WASHINGTON – The Justice Department announced today that developer Douglas Pauley and entities affiliated with him have agreed to pay $110,000 and make approximately $1.7 million in retrofits required to remove accessibility barriers at 30 apartment complexes, involving more than 750 units in West Virginia. The parties’ agreement will settle the United States’ claims that defendants had violated the Fair Housing Act and the Americans with Disabilities Act by building the complexes with a variety of features that made them inaccessible to persons with disabilities. The United States District Court for the Southern District of West Virginia approved the settlement yesterday.
Under the terms of the agreement, Pauley, as General Partner of 30 limited liability partnerships, must take extensive actions to make the complexes accessible to persons with disabilities, including wheelchair users. These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb ramps to allow persons with disabilities to access the sidewalks from the parking areas, replacing cabinets in bathrooms and kitchens to provide sufficient room for wheelchair users, and reducing door threshold heights. In addition, defendants will pay $100,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $10,000 as a civil penalty.
“The Fair Housing Act protects the rights of persons with disabilities to have equal opportunities to enjoy the housing of their choice,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “And this comprehensive resolution will ensure equal access to persons with disabilities at 30 apartment complexes and will compensate those injured by the failure to provide accessible housing.”
“Housing is a fundamental human need, and it’s deeply unfair to deny persons with disabilities equal access to it,” said Booth Goodwin, United States Attorney for the Southern District of West Virginia. “Thanks to this case, the developer will be required to devote nearly $2 million to correcting and compensating for the harm that he and his companies have caused. That’s an important victory for West Virginians with disabilities.”
Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement. Notices of the settlement and a list of subject properties will be published in the Charleston Gazette. Persons who believe they were subjected to unlawful discrimination at one of those properties either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993 or e-mail the Justice Department at [email protected].
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Justice Department Releases New Technical Assistance on the Voting Rights of People with DisabilitiesRead the Press Release
The Justice Department announced today it has published a new technical assistance publication about federal laws that protect the rights of voters with disabilities, including the Americans with Disabilities Act, the Voting Rights Act, the National Voter Registration Act and the Help America Vote Act. The publication, “The Americans with Disabilities Act & Other Federal Laws Protecting the Rights of Voters with Disabilities,” is intended to help election officials, poll workers and voters understand how the ADA and other federal laws ensure equality in the voting process for people with disabilities.
“The right to vote is the foundation upon which our country is built,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “For too long in our history, many people with disabilities have been excluded from exercising this fundamental right and have been prevented from being a full participant in our democracy. A number of federal civil rights laws, including the Americans with Disabilities Act and the Voting Rights Act, have been put in place to address fairness in the voting process for people with disabilities. The Justice Department is fully committed to enforcing these laws to ensure that voters with disabilities are no longer discriminated against in the election process.”
The publication provides guidance about how the federal disability rights laws apply to the election process, from registration to voting. The publication discusses the need for policies, procedures, and programs to be in place to ensure that voters with disabilities are not discriminated against or illegally excluded from voting. For example, the guidance discusses local governments’ obligations under the ADA to ensure polling places are physically accessible to voters with mobility disabilities, as well as their obligation to provide effective communication with voters who have vision and hearing disabilities. Voters with disabilities must be able to access their polling place like everyone else, and vote alongside their neighbors and friends.
The “The Americans with Disabilities Act & Other Federal Laws Protecting the Rights of Voters with Disabilities” publication may be found at http://www.ada.gov/ada_voting/ada_voting_ta.pdf or http://www.ada.gov/ada_voting/ada_voting_ta.htm. Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 1-800-514-0301 (V) or 1-800-514-0383 (TTY), or visit its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
Justice Department Files Lawsuit Alleging Disability-Based Discrimination by West Virginia DevelopersRead the Press Release
The Justice Department filed a lawsuit yesterday against West Virginia-based developer Biafora’s Incorporated (Biafora) and several affiliated companies, for violating the Fair Housing Act and the Americans with Disabilities Act (ADA). The lawsuit alleges that the defendants violated these laws when they designed and constructed twenty-three residential properties with barriers that make them inaccessible to persons with disabilities.
“For over two decades, the Fair Housing Act and ADA have required those who design and build multifamily housing complexes to make them accessible to persons with disabilities,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Residential complexes built with steps but without ramps or other means of access deny Americans with disabilities the basic right to equal housing opportunities.”
“The United States Attorney’s Office is committed to working together with the Civil Rights Division to ensure that the rights of citizens with disabilities in the Northern District of West Virginia are fully protected,” said U.S. Attorney William J. Ihlenfeld for the Northern District of West Virginia. “It’s important that building developers in our district design and construct housing units which comply with the Fair Housing Act and the Americans with Disabilities Act.”
The suit, filed in U.S. District Court in Clarksburg, West Virginia, alleges that twenty-three properties located in Monongalia County, Harrison County, and Marion County, West Virginia, as well as in Greene County, Pennsylvania, have significant barriers, including steps leading to building entrances, non-existent or excessively sloped pedestrian routes from apartment units to site amenities (e.g., picnic areas, dumpsters, clubhouse/leasing offices), insufficient maneuvering space in bathrooms and kitchens, excessively high light switches and temperature controls and inaccessible parking.
The suit seeks a court order requiring the defendants to bring properties they have designed and constructed since 1991 into compliance with the Fair Housing Act and the ADA, as well as monetary damages for persons harmed by the lack of accessibility and civil penalties to the United States. The suit also names Biafora’s affiliates Falconcrest LLC, Five Star Holdings LLC, Metro Rentals LLC, Metro Rentals II LLC, RDR Properties LLC, RDR Properties II LLC, The Gables LLC, The Woodlands LLC, 3BT LLC and CMC Company LLC. Anyone with information about the inaccessible conditions at these properties should call the Justice Department at 1-800-896-7743, and follow the prompts to enter mailbox 998.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, and disability. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court.
Jury Convicts Nashville Man of Drug Trafficking & Firearms ChargesRead the Press Release
Defendant Used Armed Juveniles to Guard Stash House
Brice N. Marchbanks, 32, of Nashville, Tennessee, was found guilty yesterday by a federal jury of multiple drug trafficking and firearms offenses, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. After a week-long trial, the jury returned guilty verdicts on all counts, including drug conspiracy, maintaining a drug house, possessing firearms in furtherance of drug crimes and distributing drugs to a 14 year-old.
United States Attorney David Rivera stated, “Drugs, guns, and kids are a toxic combination. The proof showed that Marchbanks, as a 27 year-old man, was distributing drugs to 14 year old kids and using them as armed guards in a drug house. In return, Marchbanks provided them with marijuana to smoke and offered them $100 to murder another gang member. We will seek an appropriate sentence for the conduct of the defendant.”
Marchbanks’ drug operation was uncovered as part of a lengthy investigation into various Rollin’ 60 Crips gang members who were committing armed robberies of suspected drug dealers under the belief that such violent crime would not be investigated fully and that the targeted victims would not cooperate with law enforcement. Marchbanks is the final defendant to be tried in a case which began in 2009 and involved more than 30 defendants who were charged with drug crimes, firearms and other offenses as part of the investigation. All of the defendants in this case have now been convicted, including more than five gang members who held the status of “OG” (“Original Gangsta”), the highest rank available in Tennessee.
According to the proof at trial, Marchbanks was the target of such a robbery by other gang members and was in fact shot during that robbery. When questioned by police, Marchbanks falsely claimed that the robbery was not drug-related. The investigation, however, showed that Marchbanks was running a drug house in the Creekwood Drive area of Nashville and was using armed minors to guard the house.
The trial also included proof that Marchbanks wrongly suspected another Rollin’ 60 Crips gang member of having participated in that robbery, and solicited the murder of that person. A 15 year- old and a person who is still unidentified then shot the gang member whom they suspected. The wounded gang member survived and the investigation determined that he was not involved in the robbery of Marchbanks. The three people involved in the actual robbery of Marchbanks have been convicted and are also in custody.
Marchbanks faces up to life in prison when he is sentenced on January 14, 2015.
The investigation was conducted by the FBI, the ATF and the Metropolitan Nashville Police Department. Assistant United States Attorneys Sunny A.M. Koshy and Louis Crisostomo prosecuted the jury trial,
Jerome Woman Pleads Guilty to Bank FraudRead the Press Release
Defendant Used Her Position as a Bank Teller to Obtain Money from Customer Account
BOISE – Azucena Ortega, 32, of Jerome, Idaho, pleaded guilty today in United States District Court to one count of bank fraud, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, the defendant used her position as an employee of Wells Fargo Bank in Twin Falls, Idaho to access a customer's checking account, and order an ATM card, without the customer's permission. The defendant admitted receiving the ATM card at the bank, setting a PIN number, and raising the daily cash withdrawal limit on the account. The defendant also admitted using the ATM card on four occasions to withdraw cash from ATM machines in Twin Falls, Idaho, obtaining a total of $1,484.00 from the customer's account. The government is seeking forfeiture of assets and restitution for the victim of the fraud.
Bank fraud is punishable by up to 30 years in prison, a maximum fine of $1,000,000, and up to five years of supervised release.
Sentencing is set for January 7, 2015, before Chief U.S. District Judge B. Lynn Winmill, at the federal courthouse in Boise.
The case was investigated by the United States Secret Service, the United States Postal Inspector Service, and the Twin Falls Police Department.
Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office today announced that during a federal court session in Great Falls, Montana on September 29, 2014, before U.S. Magistrate Judge Strong, the following individuals appeared:
LAWRENCE GEORGE GRINER, a 43-year-old resident of Butte, made an initial appearance on a complaint alleging conspiracy to possess with intent to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, GRINER, faces life in prison, $10,000,000 in fines and 5 years supervised release.. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation is being conducted by the Russell Country Drug Task Force. PACER Case Reference: 14-71
JEFFREY EDWARD JUNE, a 45-year-old resident of Augusta, made an initial appearance on a complaint alleging conspiracy to possess with intent to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, JUNE, faces life in prison, $10,000,000 in fines and 5 years supervised release.. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation is being conducted by the Russell Country Drug Task Force. PACER Case Reference: 14-71
MARTIN EDWARD LELAND, a 32-year-old resident of Belt, made an initial appearance on a complaint alleging conspiracy to possess with intent to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, LELAND, faces life in prison, $10,000,000 in fines and 5 years supervised release.. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation is being conducted by the Russell Country Drug Task Force. PACER Case Reference: 14-71
EDUARDO OCEQUEDA-RUIZ, a 30-year-old resident of Los Angeles, California, made an initial appearance on a complaint alleging conspiracy to possess with intent to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, OCEQUEDA-RUIZ, faces life in prison, $10,000,000 in fines and 5 years supervised release.. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation is being conducted by the Russell Country Drug Task Force. PACER Case Reference: 14-71
JOSHUA ALBERTO RODRIGUEZ, a 25-year-old resident of Los Angeles, California, made an initial appearance on a complaint alleging conspiracy to possess with intent to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, RODRIGUEZ, faces life in prison, $10,000,000 in fines and 5 years supervised release.. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation is being conducted by the Russell Country Drug Task Force. PACER Case Reference: 14-71
A complaint is merely a written statement of the essential facts constituting the offense(s) charged. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indiana Man Pleads Guilty to Prisoner Transportation FraudRead the Press Release
Follow @NDFLNewsTALLAHASSEE – William Cassidy, 50, of Florence, Indiana, pled guilty today to wire fraud in connection with a scheme to obtain money by operating a private prisoner transportation business under false pretenses. The plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment in this case alleged that between October 2010 and June 2014, Cassidy transported prisoners throughout the country as an employee and manager of U.S. Prisoner Extradition Service and Interstate Criminal Extraditions. In contracting with sheriffs’ offices to transport prisoners, including violent felons, from one jurisdiction to another, Cassidy made affirmative misrepresentations concerning the security and treatment of the prisoners, and concealed material facts concerning his fitness to operate as a prisoner transport agent. The indictment alleges that Cassidy concealed the fact that he was on felony probation while transporting prisoners and that his conditions of probation prohibited him from associating with felons, from visiting jails, from carrying weapons, and from leaving the state of Kentucky. The indictment also alleges that during his transportation of female prisoners, Cassidy left the prisoners unrestrained, gave them drugs and alcohol, and had sex with the prisoners in his vehicle and in hotel rooms.
Cassidy faces a maximum sentence of 20 years in prison. Sentencing is scheduled for January 8, 2015, in Tallahassee before United States District Judge Mark E. Walker.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Justice Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorney Karen Rhew-Miller.
Hazleton Man Charged with Drug Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of a criminal information charging Santiago Guerrero-Nova, age 31, of Hazleton, Pennsylvania, with distributing heroin on August 28, 2013.
United States Attorney Peter Smith stated that the charge is the result of an investigation conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Government Settles False Claims Act Allegations Against Guam-Based Construction Company for $285,000Read the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the United States of America, on behalf of the United States Environmental Protection Agency (“U.S. EPA”), secured $285,000 in settlement of a civil lawsuit against GRH Technologies Construction Co., Ltd. (“GRH”), and GRH’s Treasurer, Chen Pei SU (“SU”). The lawsuit alleged that GRH and SU committed a violation of the False Claims Act, 31 U.S.C. § 3729 et seq., when they submitted a fraudulent claim for reimbursement under a contract funded by the American Recovery and Reinvestment Act (“ARRA”) between Guam Waterworks Authority and GRH for services including leak detection, pipeline, location, mapping, leak control, and related training. GRH and SU submitted a claim for reimbursement of $117,912, which GRH and SU purport was used to purchase equipment from a Taiwan-based company. However, the check used to pay the Taiwan-based company was never negotiated and GRH and SU could not produce evidence that such payment was made. The lawsuit sought triple damages and civil penalties from GRH and SU.
The United States settled the False Claims Act lawsuit with GRH and SU for $285,000. Upon collecting the $285,000 in settlement funds, the United States dismissed its claims on August 8, 2014.
U.S. Attorney Alicia A.G. Limtiaco stated, “False claims to the United States government have an effect on all its citizens and on the agencies that serve those citizens. They affect not only the particular agency to whom the specific act was committed, but in the aggregate they affect the overall vitality of government programs and contracts and detract from the millions of Americans who could benefit from those programs. The U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands and federal agencies in this region, most specifically in this case the U.S. Environmental Protection Agency, continue to aggressively enforce the False Claims Act against those that violate the public trust and misuse public funds.”
This case was investigated by the U.S. EPA and prosecuted by Assistant U.S. Attorneys Mikel W. Schwab and Jessica F. Cruz.
Georgia Man Sentenced to 27 Months in Prison for Defrauding Investors Out of More Than $800,000Read the Press Release
NEWARK, N.J. – A Georgia business owner who held himself out to be an investor and loan broker was sentenced today to 27 months in prison for his role in defrauding investors of more than $800,000, U.S. Attorney Paul J. Fishman announced.
Ronnie Singleton, 41, of Lithonia, Ga., previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count One of an indictment charging him with conspiring to commit wire fraud. Judge Salas imposed the sentence today in Newark federal court.According to documents in this case and statements made in court:
Singleton owned and operated a business called Wonder World Inc. and held himself out to be a financier. Using the Internet and telephone, he met his codefendant, Michael Woodruff, 66, of Peeples Valley, Ariz., and the two agreed to work together to find investors. Singleton falsely represented that he would providing financing for real estate deals through a “European system of financing” that involved leasing financial instruments. Singleton received more than $800,000 in investors’ funds, $360,000 of which he wired to Woodruff. Instead of obtaining the promised financing for the real estate projects, Singleton instead used the investors’ money for his own personal benefit.
In addition to the prison term, Judge Salas sentenced Singleton to three years of supervised release and ordered him to pay restitution of $830,500 in restitution. Woodruff previously pleaded guilty in Arizona federal court to his role in the scheme and is awaiting sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jenny Kramer of the Economic Crimes Unit.
The charges and allegations against Woodruff are merely accusations and he remains innocent unless and until proven guilty.
14-349
Defense counsel: Paul Condon Esq., Jersey City, N.J.Four Members of International Computer Hacking Ring Indicted for Stealing Gaming Technology, Apache Helicopter Training SoftwareRead the Press Release
Four members of an international computer hacking ring have been charged with breaking into computer networks of prominent technology companies and the U.S. Army and stealing more than $100 million in intellectual property and other proprietary data. Two of the charged members have already pleaded guilty. The alleged cyber theft included software and data related to the Xbox One gaming console and Xbox Live online gaming system; popular games such as “Call of Duty: Modern Warfare 3” and “Gears of War 3”; and proprietary software used to train military helicopter pilots.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Charles M. Oberly III of the District of Delaware and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Field Office made the announcement.
“As the indictment charges, the members of this international hacking ring stole trade secret data used in high-tech American products, ranging from software that trains U.S. soldiers to fly Apache helicopters to Xbox games that entertain millions around the world,” said Assistant Attorney General Caldwell. “The American economy is driven by innovation. But American innovation is only valuable when it can be protected. Today’s guilty pleas show that we will protect America’s intellectual property from hackers, whether they hack from here or from abroad.”
“Electronic breaking and entering of computer networks and the digital looting of identities and intellectual property have become much too common,” said U.S. Attorney Oberly. “These are not harmless crimes, and those who commit them should not believe they are safely beyond our reach.”
Nathan Leroux, 20, of Bowie, Maryland; Sanadodeh Nesheiwat, 28, of Washington, New Jersey; David Pokora, 22, of Mississauga, Ontario, Canada; and Austin Alcala, 18, of McCordsville, Indiana, were charged in an 18-count superseding indictment returned by a federal grand jury in the District of Delaware on April 23, 2014, and unsealed earlier today. The charges in the indictment include conspiracies to commit computer fraud, copyright infringement, wire fraud, mail fraud, identity theft and theft of trade secrets. The defendants are also charged with individual counts of aggravated identity theft, unauthorized computer access, copyright infringement and wire fraud.
Today, Pokora and Nesheiwat pleaded guilty to conspiracy to commit computer fraud and copyright infringement and are scheduled for sentencing on Jan. 13, 2015. Pokora was arrested on March 28, 2014, while attempting to enter the United States at the Lewiston, New York, Port of Entry. Pokora’s plea is believed to be the first conviction of a foreign-based individual for hacking into U.S. businesses to steal trade secret information.
According to the superseding indictment and other court records, from January 2011 to March 2014, the four men and others located in the United States and abroad allegedly hacked into the computer networks of Microsoft Corporation, Epic Games Inc., Valve Corporation, Zombie Studios and the U.S. Army. The defendants and others allegedly obtained access to the victims’ computer networks through methods including SQL injection and the use of stolen usernames and passwords of company employees and their software development partners. Once inside the victims’ computer networks, the conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works and other confidential and proprietary information. Members of the conspiracy also allegedly stole financial and other sensitive information relating to the companies – but not their customers – and certain employees of such companies.
Specifically, the data cyber-theft allegedly included source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console; intellectual property and proprietary data related to Xbox Live, Microsoft’s online multi-player gaming and media-delivery system; Apache helicopter simulator software developed by Zombie Studios for the U.S. Army; a pre-release version of Epic’s video game, “Gears of War 3;” and a pre-release version of Activision’s video game, “Call of Duty: Modern Warfare 3.” The defendants also allegedly conspired to use, share and sell the stolen information.
The value of the intellectual property and other data that the defendants stole, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
In addition to those charged in the United States, an Australian citizen has been charged under Australian law for his alleged role in the conspiracy.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Patrol, and the U.S. Postal Inspection Service. The investigation also has been coordinated with the Western Australia Police and the Peel Regional Police of Ontario, Canada.
The case is being prosecuted by Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.
# # #
Four Members of International Computer Hacking Ring Indicted for Stealing Gaming Technology, Apache Helicopter Training SoftwareRead the Press Release
WILMINGTON, Del. – Four members of an international computer hacking ring have been charged with breaking into computer networks of prominent technology companies and the U.S. Army and stealing more than $100 million in intellectual property and other proprietary data. Two of the charged members have already pleaded guilty. The alleged cyber theft included software and data related to the Xbox One gaming console and Xbox Live online gaming system; popular games such as “Call of Duty: Modern Warfare 3” and “Gears of War 3”; and proprietary software used to train military helicopter pilots.
U.S. Attorney Charles M. Oberly III of the District of Delaware, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Field Office made the announcement.
“Electronic breaking and entering of computer networks and the digital looting of identities and intellectual property have become much too common,” said U.S. Attorney Oberly. “These are not harmless crimes, and those who commit them should not believe they are safely beyond our reach.”
Nathan Leroux, 20, of Bowie, Maryland; Sanadodeh Nesheiwat, 28, of Washington, New Jersey; David Pokora, 22, of Mississauga, Ontario, Canada; and Austin Alcala, 18, of McCordsville, Indiana, were charged in an 18-count superseding indictment returned by a federal grand jury in the District of Delaware on April 23, 2014, and unsealed earlier today. The charges in the indictment include conspiracies to commit computer fraud, copyright infringement, wire fraud, mail fraud, identity theft and theft of trade secrets. The defendants are also charged with individual counts of aggravated identity theft, unauthorized computer access, copyright infringement and wire fraud.
Today, Pokora and Nesheiwat pleaded guilty to conspiracy to commit computer fraud and copyright infringement. Their sentencings have yet to be scheduled. Pokora was arrested on March 28, 2014, while attempting to enter the United States at the Lewiston, New York, Port of Entry. Pokora’s plea is believed to be the first conviction of a foreign-based individual for hacking into U.S. businesses to steal trade secret information.
According to the superseding indictment and other court records, from January 2011 to March 2014, the four men and others located in the United States and abroad allegedly hacked into the computer networks of Microsoft Corporation, Epic Games Inc., Valve Corporation, Zombie Studios and the U.S. Army. The defendants and others allegedly obtained access to the victims’ computer networks through methods including SQL injection and the use of stolen usernames and passwords of company employees and their software development partners. Once inside the victims’ computer networks, the conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works and other confidential and proprietary information. Members of the conspiracy also allegedly stole financial and other sensitive information relating to the companies – but not their customers – and certain employees of such companies.
Specifically, the data cyber-theft allegedly included source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console; intellectual property and proprietary data related to Xbox Live, Microsoft’s online multi-player gaming and media-delivery system; Apache helicopter simulator software developed by Zombie Studios for the U.S. Army; a pre-release version of Epic’s video game, “Gears of War 3;” and a pre-release version of Activision’s video game, “Call of Duty: Modern Warfare 3.” The defendants also allegedly conspired to use, share and sell the stolen information.
The value of the intellectual property and other data that the defendants stole, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
In addition to those charged in the United States, an Australian citizen has been charged under Australian law for his alleged role in the conspiracy.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Patrol, and the U.S. Postal Inspection Service. The investigation also has been coordinated with the Western Australia Police and the Peel Regional Police of Ontario, Canada.
The case is being prosecuted by Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware and Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section.Founder of Bixby Energy Systems Sentenced to 25 Years in Prison for Stealing More Than $56 Million from InvestorsRead the Press Release
Minneapolis – ROBERT ALLEN WALKER, 72, of Ramsey, Minnesota, was sentenced on September 25, 2014, to 25 years in federal prison for stealing more than $56 million from hundreds of investors. On March 5, 2014, after an 8-week trial, WALKER was found guilty of four counts of Mail Fraud, nine counts of Wire Fraud, one count of Witness Tampering and three counts of Tax Evasion.
From 2001 to 2011, WALKER was the president, chief executive officer, and chairman of the board at Bixby Energy. In that capacity, he raised more than $43 million from at least 1,800 investors by offering company securities based on false and misleading information about 1) the payment of salaries and commissions to Bixby officers and directors; 2) the operational capability of Bixby’s core product, a coal gasification machine; and 3) the prospect of conducting an initial public stock offering. WALKER also used investor money fund his and his family’s lavish lifestyles.
As part of the scheme, WALKER told investors that Bixby officers and directors would not be compensated for selling company securities but then directed payments of at least $3 million to a company officer for doing just that. From those payments, the officer then kicked back more than $600,000 to WALKER. This “commission sharing” arrangement was not only concealed from investors but from the company’s board of directors. WALKER also lied repeatedly about the capability of the company’s coal gasification machine, characterizing it as “proven” and “ready for market,” when, in fact, the technology had never worked, and the machine had substantial defects.
Moreover, throughout the company’s existence, WALKER told investors that Bixby was going to conduct an initial public offering of its stock in the near future, when, in truth, he knew it could not be done because, among other things, the company could not obtain legitimate audited financial statements, and the company’s coal gasification machine was incapable of delivering results consistent with WALKER’s outlandish promises.
As part of his sentence, WALKER was ordered to pay over $56 million in restitution.
Assistant U.S. Attorneys David J. MacLaughlin and Benjamin F. Langner prosecuted this case.
This case was the result of an investigation conducted by U.S. Postal Inspection Service, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation Division.
Defendant Information: ROBERT ALLEN WALKER, 72
Ramsey, MN
Convicted:• Mail Fraud, 4 counts
• Wire Fraud, 9 counts
• Witness Tampering, 1 count
• Tax Evasion, 3 counts
Sentenced: • 25 years in federal prison
• 3 years supervised release###
Former Spokane Man Sentenced to Prison for Defrauding Investors in Ethanol Plant SchemeRead the Press Release
Spokane –Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Robert J. Braun, age 55, originally of Spokane, was sentenced today in United States District Court after pleading guilty to five counts of wire fraud and one count of securities fraud. Senior United States District Court Judge Robert H. Whaley, Jr. sentenced Braun to a three year term of imprisonment for his role in defrauding dozens of investors in the Spokane area. The Court also ordered Braun to pay $1,482,250 in restitution and imposed three years of court supervision following his release from Federal prison.
According to information disclosed during court proceedings, Braun told investors that he was raising funds for an ethanol plant that would be built in the Spokane area. Braun told investors they would be repaid their investment within a few months, and would then earn extraordinary dividends annually. Braun used the business names Novahol Spokane, LLC and S & B Energy Spokane, LLC in furtherance of his scheme.
As part of his fraudulent scheme, Braun used investor funds for personal living expenses, including more than $150,000 on mortgage payments and expenses for three homes, more than $50,000 at department and clothing stores, and more than $80,000 for a women’s shoe and accessory store that he owned in downtown Spokane (Boutique 238). Braun solicited several victims when his bank accounts had low or negative account balances. Between 2008 and 2012, Braun lulled investors into a false sense of security through a series of emails that claimed that billions in funding for the ethanol plant was imminent.
Michael C. Ormsby said, “Investors should be wary of any investment opportunity that seems too good to be true, even if someone they know and trust introduces them to the opportunity. Perpetrators of fraud are aware of the fears of investors and can tailor their schemes to convince even the most cautious investors to part with their money.” Michael C. Ormsby added that, “The sentence imposed in this case will send the right message to would be fraudsters that their schemes will be prosecuted and punished.”
The investigation was conducted by the Federal Bureau of Investigation, the Washington State Department of Financial Institutions (DFI), and the Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorneys K. Jill Bolton and George J.C. Jacobs, III, as well as Special Assistant United States Attorney Robert Kondrat, a DFI attorney cross-designated to the United State Attorney’s Office to prosecute securities fraud cases.
CR-13-083-RHW
Former Owner of Mortgage Lending Company Charged with Bank FraudRead the Press Release
– Submitted 53 fraudulent funding requests for nonexistent mortgage loans totaling $17,900,000
LOUISVILLE, Ky. – The former owner of an Orange County, California mortgage lending company was charged by federal grand jury in Louisville, with devising a scheme to defraud and to obtain moneys owned or under the custody and control of National City Bank and PNC Bank, financial institutions, of $12,000,000 by submitting fraudulent funding requests for nonexistent mortgage loans announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the single count indictment, Brady Bunte, age 49, of Orange County, California, from March 2007 through November 2008, caused his company, Trust One Mortgage, LLC (Trust One), to submit approximately 53 fraudulent funding requests on its warehouse line of credit to National City Bank (NCB) and PNC Bank (PNC). Each of the approximately 53 fraudulent funding requests was for a nonexistent mortgage loan. The fraudulent funding requests caused NCB to issue approximately $17,900,000 in moneys to Trust One.
Further, from approximately March 2007 through October 2008 the fraudulent funding requests submitted by Trust One and Bunte caused NCB to suffer a loss of approximately $12,000,000. NCB’s warehouse lending operations were located in Louisville, Kentucky. In or around October 2008, PNC acquired NCB.
As a warehouse lender, NCB provided revolving, short-term loans, known as warehouse lines of credit, to mortgage lenders. The mortgage lenders, such as Trust One, were required to pay off specific loans issued on its warehouse line, by warehouse lenders, within a set period of time or when the warehouse lender demanded payment.
Bunte was charged in a sealed indictment on September 18, 2014. He was arraigned on the charge yesterday in U.S. District Court located in Santa Ana, California, and was released on a $100,000 third-party bond.
If convicted at trial, Bunte could be sentenced to no more than 30 years in prison, a five year period of supervised release and fined $1,000,000.
This case is being prosecuted by Assistant United States Attorneys Bryan Calhoun and Amanda Gregory and is being investigated by the Federal Bureau of Investigation (FBI).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Klansman Pleads Guilty to Federal Hate Crime for Cross BurningRead the Press Release
Timothy Flanagan, 33, pleaded guilty today in federal court in Nashville, Tennessee, for his role in the April 30, 2012, cross burning in front of an interracial family’s home in Minor Hill, Tennessee, the Department of Justice announced. Flanagan pleaded guilty to one count of conspiring with others to threaten, intimidate and interfere with an African-American man’s enjoyment of his housing rights, and one count of interfering with those housing rights.
Flanagan—a former member of the Church of the National Knights, a Ku Klux Klan affiliate—admitted during the plea hearing that on the night of April 30,2012, he and two other individuals devised a plan to burn a cross in the yard of an African American man in Minor Hill, Tennessee. Flanagan’s co-conspirator, Timothy Stafford, constructed a wooden cross in a workshop behind his house. Using Flanagan’s credit card, Stafford and co-conspirator Ivan “Rusty” London then purchased diesel-fuel with which to soak the cross. Flanagan and the other co-conspirators then drove the cross to the victim’s residence and upon arriving at the residence, Flanagan and London exited the truck. The cross was placed in the driveway leading up to the house and was ignited. The co-conspirators burned the cross with the purpose of intimidating the African-American male who resided at that residence.
Ivan “Rusty” London IV, 21, of Lexington, Kentucky, and Timothy Stafford, 41, of Minor Hill, Tennessee, previously pleaded guilty for their roles in the conspiracy, and are currently awaiting sentencing.
“Hate-motivated crimes will not be tolerated in our country,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Justice Department will vigorously prosecute individuals who violate the rights of others because of race.”
“There can be no tolerance for such acts of intimidation when innocent persons are targeted simply because of their race,” said U.S. Attorney David Rivera for the Middle District of Tennessee. “The U.S. Attorney’s Office and our law enforcement partners will work tirelessly to protect the civil rights of all persons and bring to justice, anyone who would attempt to impede the constitutionally protected right to liberty of any person.”
Timothy Flanagan faces up to 20 years in prison and fines up to $500,000. Timothy Stafford faces up to 10 years in prison and fines of up to $250,000. Ivan London faces up to 5 years in prison and fines of up to $250,000. Sentencing for Flanagan is set for January 8, 2015.
This case was investigated by the Columbia, Tennessee, Division of the FBI and is being prosecuted by Trial Attorney Jared Fishman of the Civil Rights Division and by Assistant U.S. Attorney Hal McDonough of the Middle District of Tennessee.
Former Klansman Pleads Guilty to Federal Hate Crime for Cross BurningRead the Press Release
Timothy Flanagan, 33, pleaded guilty today in federal court in Nashville, Tennessee, for his role in the April 30, 2012, cross burning in front of an interracial family’s home in Minor Hill, Tennessee, the Department of Justice announced. Flanagan pleaded guilty to one count of conspiring with others to threaten, intimidate and interfere with an African-American man’s enjoyment of his housing rights, and one count of interfering with those housing rights.
Flanagan—a former member of the Church of the National Knights, a Ku Klux Klan affiliate—admitted during the plea hearing that on the night of April 30,2012, he and two other individuals devised a plan to burn a cross in the yard of an African American man in Minor Hill, Tennessee. Flanagan’s co-conspirator, Timothy Stafford, constructed a wooden cross in a workshop behind his house. Using Flanagan’s credit card, Stafford and co-conspirator Ivan “Rusty” London then purchased diesel-fuel with which to soak the cross. Flanagan and the other co-conspirators then drove the cross to the victim’s residence and upon arriving at the residence, Flanagan and London exited the truck. The cross was placed in the driveway leading up to the house and was ignited. The co-conspirators burned the cross with the purpose of intimidating the African-American male who resided at that residence.
Ivan “Rusty” London IV, 21, of Lexington, Kentucky, and Timothy Stafford, 41, of Minor Hill, Tennessee, previously pleaded guilty for their roles in the conspiracy, and are currently awaiting sentencing.
“Hate-motivated crimes will not be tolerated in our country,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Justice Department will vigorously prosecute individuals who violate the rights of others because of race.”
“There can be no tolerance for such acts of intimidation when innocent persons are targeted simply because of their race,” said U.S. Attorney David Rivera for the Middle District of Tennessee. “The U.S. Attorney’s Office and our law enforcement partners will work tirelessly to protect the civil rights of all persons and bring to justice, anyone who would attempt to impede the constitutionally protected right to liberty of any person.”
Timothy Flanagan faces up to 20 years in prison and fines up to $500,000. Timothy Stafford faces up to 10 years in prison and fines of up to $250,000. Ivan London faces up to 5 years in prison and fines of up to $250,000. Sentencing for Flanagan is set for January 8, 2015.
This case was investigated by the Columbia, Tennessee, Division of the FBI and is being prosecuted by Trial Attorney Jared Fishman of the Civil Rights Division and by Assistant U.S. Attorney Hal McDonough of the Middle District of Tennessee.Former AXA Agent Charged with Securities FraudRead the Press Release
The United States Attorney’s Office today announced the filing of a one-count information charging Dennis Wright with securities fraud. Wright, a former agent of the AXA Equitable Life Insurance Company (“AXA”), operated Wright Associates in Lewistown, Pennsylvania.
According to United States Attorney Peter Smith, the information alleges that from the early 1990’s through June 2012 Wright fraudulently induced AXA clients to liquidate securities and other assets based on false representations and promises that he would invest their monies and funds in what he purported to be “managed funds,” when, in fact, he never invested the funds, but instead deposited the client funds into his business operating account. The information alleges that as a result of these false and fraudulent representations and promises, Wright received funds, totaling approximately $1,533,416, from at least 30 AXA clients via account transfers, withdrawals, and other means.
Wright, a Lewistown resident, has agreed to plead guilty under the terms of a plea agreement filed with the information. If convicted of the securities fraud charge Wright, age 68, faces a maximum penalty of 25 years in prison, a fine of $1 million, and a supervised release term of five years.
Wright also is the subject of a parallel civil case filed today by the United States Securities and Exchange Commission in the United States District for the Middle District of Pennsylvania.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Securities and Exchange Commission. Prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Federal Court Shuts Down Florida Tax Return PreparerRead the Press Release
The U.S. District Court for the Southern District of Florida permanently barred Marvel Angelita Ebanks, a tax preparer who prepared returns in Palm Beach County, Florida, and her company, Marvelous Enterprises Inc., from preparing federal tax returns for others, the Justice Department announced today. A final judgment of permanent injunction was entered against Ebanks and her company by the court today.
The complaint alleged that Ebanks and her company prepared federal income tax returns for customers that claimed ficticious business expenses. In addition, Ebanks and her company prepared returns that claimed false or inflated education credits and child care credits, and other deductions and/or credits in order to unlawfully understate tax liabilities and generate larger than warranted refunds. Pursuant to the final judgment of permanent injunction, Ebanks and her company are permanently enjoined from preparing or assisting in the preparation or filing of federal tax returns and amended returns.
Return-preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fayetteville Man Sentenced to Serve over Twelve Years in Prison for Distribution of Crack CocaineRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 29, 2014, Dontez Flowers, 35, of Fayetteville, Tenn., was sentenced to serve 151 months in federal prison by the Honorable Harry S. Mattice, Jr., U.S. District Judge. Flowers pleaded guilty in June 2014 to distribution of cocaine base, “crack.” Upon his release from prison, he will be subject to three years of supervised release by the U.S. Probation Office.
In the plea agreement on file with the U.S. District Court, Flowers admitted to selling five grams of crack cocaine to an individual working with law enforcement on one occasion in July 2013. He also tried to sell 20 grams of crack cocaine a few days later. Flowers admitted that he continued to sell crack cocaine even after the police confronted him.
The indictment and subsequent conviction of Flowers was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Tennessee Bureau of Investigations, and Lincoln County Sheriff’s Office. Assistant U.S. Attorney Terra L. Bay represented the United States.
Detroit-Area Doctor and Three Others Indicted for Their Alleged Roles in $7 Million Health Care Fraud SchemeRead the Press Release
Four defendants, including a Detroit-area physician, were charged in a superseding indictment with a $7 million health care fraud conspiracy. Fifteen defendants have now been charged in this case, including seven who have pleaded guilty for their conduct.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
The eight-count superseding indictment, unsealed today, charges defendants Dr. Kutub Mesiwala, 63, of Bloomfield Hills, Michigan, Jaweed Mohammed, 34, of Orland Park, Illinois, Mohammad Zubair Khan, 27, of West Bloomfield, Michigan, and Tousif Khan, 42, of Ypsilanti, Michigan, in connection with Medicare fraud involving unnecessary home health care and therapy services.
According to allegations in the indictment, Advance Home Health Care Services Inc. (Advance Home Health) and Perfect Home Health Care LLP (Perfect Home Health) purported to provide home health care and physical therapy services to eligible Medicare beneficiaries in the Detroit metropolitan area.
Dr. Mesiwala allegedly received kickbacks to refer Medicare beneficiaries to Advance Home Health and to falsely certify that the beneficiaries required home health care. Patient recruiters and office staff, including Tousif Khan, allegedly paid cash kickbacks to Medicare beneficiaries in exchange for their signing blank physical therapy records. Jaweed Mohammed, Mohammed Zubair Khan, and other co-conspirators then allegedly used those pre-signed blank physical therapy records to fabricate patient records for Advance Home Health and Perfect Home Health. Those records were used to support claims to Medicare when, in fact, no services were rendered.
The superseding indictment charges all four defendants with conspiracy to commit health care fraud, and charges Dr. Mesiwala and Tousif Khan with conspiracy to pay or receive health care kickbacks. It also charges Mohammad Zubair Khan, Jaweed Mohammed, and Tousif Khan with destruction of documents with the intent to obstruct the investigation. Additionally, Dr. Mesiwala was charged with two counts of health care fraud in relation to claims for reimbursement submitted to Medicare for visiting physician services that he purportedly rendered to patients in their Michigan homes while he was allegedly out of the country.
Between February 2009 and November 2013, Medicare paid Advance Home Health and Perfect Home Health more than $7 million as a result of these allegedly false and fraudulent claims. Fifteen defendants have been charged with participating in the health care fraud and kickback conspiracies, and seven of those defendants have entered guilty pleas. One of those defendants, Dr. Adelina Herrero, was sentenced by U.S. District Judge Paul D. Borman of the Eastern District of Michigan on Aug. 18, 2014, to three years in prison and ordered to pay $1,321,372 in restitution.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Patrick J. Hurford and Katharine A. Wagner and Special Trial Attorney Katie R. Fink of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
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Desmond Simpson of Wilmington Convicted of Hobb’s Act Robbery and Firearms Violation 924(c)Read the Press Release
ELIZABETH CITY – United States Attorney Thomas G. Walker announced that today in federal court, before United States District Judge Terrence W. Boyle a jury convicted, DESMOND SIMPSON, 29, of Wilmington, for Robbery and Carrying and Brandishing a Firearm, during and in relation to a crime of violence.
SIMPSON was named in an Indictment filed on December 17, 2013.
According to the investigation and information presented in open court during the trial, on April 25, 2012, SIMPSON, robbed a Papa John’s delivery person and repeatedly beat the individual in the head with the butt of a handgun resulting in significant head injuries requiring numerous staples. SIMPSON was connected to the crime with DNA evidence.
At sentencing that will be scheduled at a later date, SIMPSON faces a maximum sentence of 20 years imprisonment for the Hobbs Act Robbery and not less than 7 years and up to life imprisonment for the 924(c) conviction.
Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Charity Wilson and Assistant United States Attorney Jane Jackson prosecuted the case. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute violent crime, firearm related cases, and narcotic crimes.
Department of Justice Enters into Five Agreements to Ensure Small Businesses Provide People with Disabilities Access to Neighborhood Goods and ServicesRead the Press Release
The Justice Department today announced five settlement agreements under the Americans with Disabilities Act (ADA) to make businesses in upstate New York and Corpus Christi, Texas, accessible to people with disabilities.
The settlements are with Hamilton Initiative in Hamilton, New York; Glenwood Plaza in Oneida, New York; Alliance NY in Cazenovia, New York, Subway of Cazenovia in Cazenovia, New York, and Water Street Seafood Company in Corpus Christi, Texas. These businesses, including a strip mall and several restaurants, were investigated in conjunction with the department’s Project Civic Access, a Civil Rights Division initiative to ensure that cities, towns and counties throughout the country comply with the ADA. The investigation revealed that each business had made alterations after the effective date of the ADA, but had failed to make the altered areas accessible.
At each business, certain architectural elements were inaccessible to people with disabilities. All five businesses worked cooperatively with the department after architectural barriers to access were identified. The department and each business agreed to remedy the barriers in compliance with the 2010 ADA Standards for Accessible Design (2010 Standards) within certain timelines. Details on each settlement follow:
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Hamilton Initiative owns and leases property to an eatery called the No. 10 Tavern.Under the agreement, the exterior entrance and restrooms will be modified to comply with the 2010 standards.
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Glenwood Plaza is a strip mall in Oneida, New York.Under the agreement, the parking lot at the strip mall will be modified to include the required accessible parking spaces, compliant signage and access aisles.
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Two settlement agreements were entered regarding Subway of Cazenovia sandwich shop. Alliance NY owns and leases property to Subway of Cazenovia and has agreed to renovate the exterior entrance to the restaurant to make it accessible to persons with mobility impairments.Subway of Cazenovia is the operator of the sandwich shop and has agreed to make modifications to the restroom in compliance with the 2010 Standards.
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Water Street Seafood Company is a restaurant that has already started correcting accessibility barriers at its exterior entrance and restrooms.Under the agreement, the restaurant will continue its modifications to make the restaurant compliant with the 2010 standards.
“The Civil Rights Division of the Justice Department is committed to the full and fair enforcement of the Americans with Disabilities Act,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “While it is important to have equal access to larger venues such as hospitals and stadiums, it is equally important that people with disabilities be able to enjoy all types of goods and services in their own neighborhood. When a business alters its space, it is critical that those alterations be made accessible so that people with disabilities can enjoy access to restaurants and businesses and be fully integrated in their communities.”
The ADA protects individuals with disabilities from discrimination by public accommodations, such as restaurants and shopping malls, and requires that when such entities make alterations, they must do so accessibly to the maximum extent feasible. In addition, businesses have an ongoing obligation to remove architectural barriers to make their businesses accessible to persons with disabilities to the extent it is readily achievable to do so. It is “readily achievable” to remove an accessibility barrier if it is easily accomplishable without much difficulty or expense. The Department of Justice and Small Business Administration have provided an ADA Guide for Small Businesses describing these obligations, as well as tax credits and deductions available, at http://www.ada.gov//smbustxt.htm. People interested in finding out more about the ADA or this agreement can call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or access its ADA Web site at www.ada.gov.
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Department of Justice Awards Hiring Grants to Help Address Critical Law Enforcement NeedsRead the Press Release
Montgomery, Alabama - Yesterday the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) announced a funding award to the Alabama Law Enforcement Agency (ALEA) aimed at creating or protecting twenty-five law enforcement positions within the Department of Public Safety. Nearly $124 million will be awarded nationally, including $3,125,000 to ALEA over a three year period.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer, deputy, and trooper hires for three years.
“Our first priority is increasing the number of state troopers on the road. The troopers have been understaffed for a number of years due to budget cuts and restraints,” said Alabama Secretary of Law Enforcement Spencer Collier. “This grant will allow us to better serve and protect the citizens of Alabama by hiring additional state troopers.”
“The Department of Justice is proud to support the brave men and women of law enforcement that serve and protect our communities every day,” said U.S. Attorney George Beck Jr. from the Middle District of Alabama. “The U.S. Attorney’s Office is committed to reducing crime and increasing public safety. This funding will provide additional resources for law enforcement to develop and implement strategies to reduce violent crime, dismantle drug organizations, and save lives.”
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at cops.usdoj.gov.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Department of Justice Awards $2.1 Million in Grants to Three Nevada Agencies to Prevent School ViolenceRead the Press Release
LAS VEGAS, Nev. – Daniel G. Bogden, United States Attorney for Nevada, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), is pleased to announce that on Monday, Sept. 29, the U.S. Department of Justice awarded three grants totaling $2,125,000 to the North Las Vegas Police Department, the City of Elko, and the Elko County Sheriff’s Office for the hiring of 17 law enforcement officers.
The Justice Department announced the funding awards to the three agencies under the COPS Hiring Program, which provides funds directly to law enforcement agencies to hire or re-hire career law enforcement officers, and to increase their community policing capacity and crime prevention efforts. The program provides salaries and benefits for officer and deputy hires for three years. Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
Nearly $124 million in grants was awarded nationally under the hiring program, including the $2.1 million for the District of Nevada. Of that, $1.6 million was awarded to the North Las Vegas Police Department for the hiring of 13 officers, $375,000 was awarded to the Elko County Sheriff’s Office for the hiring of three officers, and $125,000 was awarded to the City of Elko for the hiring of one officer.
“The Department of Justice continues to support the efforts of law enforcement in Nevada,” said U.S. Attorney Bogden. “This program is specifically designed to advance public safety through community policing, including the hiring of school police officers or school resource officers. Bullying, stalking and other interpersonal crimes affect our children at an alarming rate, making these positions more important than ever.”
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Department of Justice Awards Hiring Grants to Reduce Violence, Protect Schools in KansasRead the Press Release
KANSAS CITY, KAN. Today the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) announced funding awards to six law enforcement agencies in Kansas aimed at creating, and in some cases protecting, law enforcement positions. Nearly $124 million will be awarded nationally, including $704,755 in Kansas.
The list of this year’s grantees includes:
Bel Aire Police Dept., $114,971
Cherryvale Police Dept., $95,645
Derby Police Dept., $125,000
City of Iola, $119,139
Kansas State University, $125,000
Osawatomie Dept. of Public Safety, $125,000.“Our goal is to improve public safety and help strengthen relationships between the officers and the communities they serve,” said U.S. Attorney Barry Grissom.
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime and school safety.”Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Department of Justice Awards Hiring Grants to Help Reduce Violence and Protect SchoolsRead the Press Release
Grants Awarded To Hire School Resource Officers, Reduce Violence And
Address Other Critical Law Enforcement NeedsTAMPA, FL - The U.S. Department of Justice, Office of Community Oriented Policing Services (COPS), yesterday announced funding awards to 10 cities and counties in the Middle District of Florida. These grants, totaling over $7 million, are intended to create 57 law enforcement positions.
The list of this year’s grantees includes: Daytona Beach Police Department, DeLand Police Department, Hardee County Sheriff’s Office, Hillsborough County Sheriff’s Office, Jacksonville Sheriff’s Office, Longwood Police Department, Mount Dora Police Department, Polk County Sheriff’s Office, Sarasota Police Department, and the Starke Police Department.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local, and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
“Community policing emphasizes strong partnerships between local law enforcement and the public it serves,” said U.S. Attorney A. Lee Bentley, III. “These partnerships develop creative ideas, build trust, and increase the effectiveness of law enforcement at all levels. Our Office is excited that ten of our local law enforcement partners will have additional funding to enhance community policing within their jurisdictions.”
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans. Nearly $124 million will be awarded nationally.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products, including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Department of Justice Awards $1,875,00 to Nopd to Hire 15 Police OfficersRead the Press Release
U.S. Attorney Kenneth A. Polite and the U.S. Department of Justice, Office of Community Oriented Policing Services (“COPS”) today announced an award of $1,875,000 to the New Orleans Police Department. The award will assist in recruiting and hiring 15 law enforcement positions.
“This grant of $1,875,000 to the New Orleans Police Department underscores DOJ’s commitment to ensuring public safety in our local communities,” stated U.S. Attorney Polite. “This money is critical to reducing violent crime, not in select portions of the city, but in every New Orleans neighborhood. As U.S. Attorney, I will continue to fight for the necessary federal resources to support our region’s law enforcement efforts.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans. Nearly $124 million will be awarded nationally.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Conspirators Exiled to at Least 11 Years in Prison on Drug, Robbery and Gun ChargesRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow today sentenced Antonio Edwards, age 41, of Capitol Heights, Maryland, to 20 years in prison, followed by eight years of supervised release; and sentenced co-defendants Shane Elliott Hare, age 27, of Hyattsville, Maryland, to 11 years in prison, and Gregory Antoine Williams, age 28, of Washington, D.C., to 150 months in prison, each followed by five years of supervised release. Edwards, Hare, and Williams were convicted at trial on July 27, 2014 of conspiracy to interfere with commerce by robbery; conspiracy to possess with the intent to distribute cocaine; conspiracy to carry and use firearms in furtherance of a crime of violence and drug trafficking; and carry and use of firearms in furtherance of a crime of violence and drug trafficking. Edwards was also convicted of possession of ammunition by a felon.The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Maryland Attorney General Douglas F. Gansler.
According to the evidence presented at their nine-day trial, from May 9 to 16, 2013, Shane Hare, Antonio Edwards, Gregory Williams and co-defendant Marvin Bowden, conspired to rob drug dealers operating in Baltimore, Maryland, and sell over five kilograms of cocaine, using firearms. Witnesses testified that on May 9, 2013, the co-conspirators were introduced to an undercover agent who proposed robbing a stash house. The conspirators agreed to commit the robbery and intended to resell the stolen narcotics to customers in the Prince George’s County and Washington Metropolitan area.
According to trial testimony, on May 14, 2013, the conspirators met again with the undercover agent and outlined their plan to carry guns and execute the robbery soon after the undercover agent entered the stash house. The conspirators told the undercover agent that they would wear black clothing with police insignias as disguises and yell “Police” upon entering. On May 16th, the conspirators left the hotel room they used to prepare for the robbery and drove to the location where they planned to commit the robbery. The conspirators were arrested, and law enforcement seized two loaded pistols from under and in the car used by the conspirators.
Co-conspirator Marvin Bowden, Jr., age 31, of Colmar Manor, Maryland, was sentenced on July 21, 2014, to 10 years in prison for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, and for conspiracy to carry and use firearms in furtherance of a crime of violence and drug trafficking.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorneys Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, and Jennifer Sykes, a prosecutor with the Department of Justice Criminal Division, who prosecuted the case.Choudrant Man Pleads Guilty to Distributing MethRead the Press Release
MONROE, La. –A Choudrant man pleaded guilty last week to distributing methamphetamine from his home, U.S.Attorney Stephanie A. Finley announced.
Christopher Takewell, 38, of Choudrant, La., entered a guilty plea last week before U.S. District Judge Robert G. James, to one count of distribution of methamphetamine. According to evidence presented at the guilty plea, law enforcement agencies conducted a controlled purchase of 104.65 grams of methamphetamine in January of 2014 from Takewell at his home. The residence was searched on January 24, 2014, and the $6,250 used in the controlled purchase was recovered.
Takewell faces 10 years to life in prison, at least five years of supervised release, and a $10 million fine. A sentencing date of January 5, 2015 was set.
The U.S. Drug Enforcement Administration (DEA) Monroe Field Office, the Lincoln Parish Narcotics Enforcement Team and the Metro Narcotics Unit based in Monroe conducted this investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
California Man Convicted of ConcealingRead the Press Release
THUNDERBIRD IN MONTANA BANKRUPTCY CASE
MISSOULA - Following a two-day trial for concealing a 1957 Thunderbird and another vehicle from a bankruptcy trustee, Timothy James Pulliam, 65, of La Mesa, California, was convicted by a Montana jury of concealing property and making false statements under oath related to his bankruptcy proceeding. U.S. District Judge Donald Molloy presided over the trial. Pulliam now faces a maximum five years in prison on each count, a $250,000 fine, and up to three years of supervised release.
Evidence presented at trial by Assistant United States Attorney Chad Spraker showed that Pulliam and his wife filed for bankruptcy in April 2010. Pulliam planned to sell the 1957 Thunderbird in order to fund a Chapter 11 bankruptcy. He also listed the Thunderbird in his bankruptcy schedules, which are a listing of a debtor's assets at the time of filing for bankruptcy. At the beginning of the bankruptcy, Pulliam stated it was his plan to sell the car to raise enough money to finish a house he was building in Corvallis, Montana. Pulliam's bankruptcy schedules listed car's value at $80,000 and the trailer at $10,000.
In October 2010, a Chapter 7 Bankruptcy Trustee traveled to Pulliam's Corvallis residence and saw the Thunderbird parked in a garage connected to the guesthouse. Sometime between October 4th and October 9th, 2010, the Thunderbird and trailer disappeared. Pulliam stated that he had no idea what happened to the Thunderbird. In later proceedings, Pulliam changed his story and claimed he had given the car to his son in 2005. Pulliam then falsely testified under oath that he thought his son took the car and trailer, but he did not know that for certain.
Pulliam later admitted that he had lied under oath and stated that he had called his son and told him to come get the car. Evidence presented at trial showed that in fact Pulliam hid the car shortly after the Chapter 7 Trustee visited Pulliam's residence. Pulliam's sentencing is set for January 23, 2014, in Missoula, Montana.
The case was investigated by the Federal Bureau of Investigations and the Internal Revenue Service, Criminal Investigation.
Bucks County Woman Charged with Embezzling from Levittown BusinessRead the Press Release
PHILADELPHIA - Joan Baranek, 57, of Yardley, PA, is charged by information, filed yesterday, with embezzling $830,504 from her employer, between 2006 and 2012, and not reporting that income on her tax return, announced United States Attorney Zane David Memeger. Baranek was a vice president for sales at Airgas Safety, Inc., a subsidiary of Airgas, Inc., based in Levittown, Pennsylvania. She is charged with mail fraud and filing a false income tax return.
Baranek was responsible for designing and managing a sales incentive program for telesales centers (call centers). She purchased gift cards and other award prizes with her personal American Express card, and then submitted expense reports to Airgas for reimbursement. In support of her expense reports, she attached invoices for the gift cards and award prizes to the expense reports. According to the information, between May 2006 and December 2012, Baranek altered invoices or even created fictitious invoices, which she attached to her expense reports so as to obtain reimbursement for alleged promotional expenses that she never incurred. It is alleged that Baranek submitted approximately 200 expense reports claiming a total of $1.8 million in promotional expenses; of these, approximately 121 of the reports contained altered, fictitious, or duplicate invoices in support of the expensed promotional items, for a total of approximately $830,504 of fraudulent expenses.
It is further alleged that Baranek willfully made and subscribed a United States income tax return for calendar year 2008, that reported her taxable income as $155,419, when her actual taxable income approximately $360,944.
If convicted the defendant faces a maximum possible sentence of 23 years’ imprisonment, a one-year period of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the FBI and IRS Criminal Investigations, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An indictment, information or criminal complaint is an accusation and a defendant is presumed innocent unless and until proven guilty.
Click here to view the information.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bank Robbery Defendant Sentenced to Federal PrisonRead the Press Release
KANSAS CITY, KAN. A defendant in a bank robbery in Lanagan, Mo., was sentenced Tuesday to two years in federal prison, U.S. Attorney Barry Grissom said.
Stephen Hudson, 34, pleaded guilty to one count of attempted bank robbery. In his plea, he admitted that on July 2, 2012, he drove co-defendant Daniel Lee Waddell to Lanagan, Mo., for the purpose of robbing the Corner Stone Bank.
Co-defendant Daniel Lee Waddell was sentenced to 210 months in federal prison for the robbery at the Corner Stone Bank, as well as another robbery March 5, 2013, at the Citizens State Bank in Kincaid, Kan.
Grissom commended the Kansas Bureau of Investigation, the Anderson County Sheriff’s Office, the FBI, Assistant U.S. Attorney Jabari Wamble and Missouri law enforcement agencies for their work on the case.
Baltimore Man Pleads Guilty to Sex Trafficking Conspiracy and Is Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – Travis Lamont Foote, a/k/a “Cash,” age 31, of Baltimore, pleaded guilty today to conspiracy to commit sex trafficking by force, fraud and coercion and was sentenced by U.S. District Judge James K. Bredar to 12 years in prison, followed by five years of supervised release. Judge Bredar ordered that upon his release from prison, Foote must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The guilty plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to Foote’s plea agreement, from September through November 2012, Foote used social media sites to persuade and entice females to work for him in his prostitution business. For example, in September 2012, Foote contacted an 18 year old woman living in Florida (Jane Doe 1) on Facebook, using a female online identity he created using the name “Cash Treasure.” Jane Doe 1 had dropped out of high school and was trying to get back into school or find employment. Foote, using the “Cash Treasure” persona, told Jane Doe 1 that “she” knew someone who would be able to assist her. Foote then reached out to Jane Doe 1, as a friend of “Cash Treasure,” stating that he could help Jane Doe 1 to get back into high school and get a diploma, but it would require her to move to Baltimore. After Jane Doe 1 agreed, Foote paid for an airline ticket for Jane Doe 1 to fly from Florida to Baltimore sometime in September.
Foote met Jane Doe 1 at the airport and drove her to a motel in Catonsville, where he had rented four rooms, three of which were occupied by other females. It was then that Jane Doe 1 learned that Foote was running a prostitution business and the he expected Jane Doe 1 to work for him, engaging in sex with men for money for Foote’s benefit. At first Jane Doe 1 refused, but eventually she agreed and began having sex with men for money, with all of the proceeds going to Foote.
During this time, Foote was using internet websites to advertise the women, including “Malaysia,” and “Mercedez,” who was Jane Doe 1, as available for prostitution. On November 14, 2012, an undercover detective from the Baltimore County Police Department Vice Unit called the number on one of the advertisements to schedule a “date” with “Malaysia.” The undercover detective met Malaysia at the agreed upon time and place. Malaysia was arrested. Officers located and arrested Jane Doe 1 in the hallway. She was holding a baby monitor which was receiving a live video of the interior of Malaysia’s room, where police had conducted the undercover operation. Officers also located and attempted to arrest Foote but he struggled and ran away.
Foote was arrested on May 16, 2013, after a Baltimore County Police officer conducted a traffic stop of the vehicle in which Foote was a passenger. In addition to Foote and the driver, there was an 18 year old female, Jane Doe 2, riding in the vehicle. Jane Doe 2 was listed in police records as a possible runaway. Foote and the driver were on their way back to a motel after taking Jane Doe 2 on an “out-call,” taking her to meet a man who paid to have sex with her. Two other females were located at the motel who worked as prostitutes for Foote and the driver. Jane Doe 2 and the other two females were advertised for prostitution on an internet website, and stated that they gave their earnings to Foote, the driver and another person.
Foote admitted that Jane Doe 2 began working for him in April 2013 and had approximately 100 “dates” with men for money that was provided to Foote. In May 2013, Jane Doe 2 tried to leave the motel after refusing a request from one of the men. Foote pursued her into the hallway and stairwell and physically fought with Jane Doe 2, returning her to the motel room by physical force.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
ATF, Firearms Industry Offer Reward in Indianapolis Firearms TheftRead the Press Release
INDIANAPOLIS – The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the National Shooting Sports Foundation (NSSF) – the trade association for the firearms industry – have announced a reward for information leading to the arrest and conviction of those responsible for the theft of firearms from Wide Open Arms, Inc., a federal firearms licensee in Indianapolis, Ind.
ATF is offering a reward of up to $5,000, which will be matched by the NSSF for a total possible reward of $10,000.
On Sunday, Sept. 28, 2014, a person or persons drove a vehicle into the storefront of Wide Open Arms, located at 3722 East Raymond St., Indianapolis, Ind. Numerous handguns were reported stolen from the scene. ATF, the Indianapolis Metropolitan Police Department, and the Indiana State Police are investigating.
Anyone having information about the burglary should contact ATF at 1-800-ATF-GUNS (800-283-4867). All calls will be kept confidential.
Callers may also provide information anonymously by contacting the following offices: ATF- Indianapolis I Field Office at (317) 287-3500
Crime Stoppers at (317) 262-TIPSThis reward is part of a larger national cooperative initiative between the NSSF and ATF in which NSSF matches ATF rewards in cases involving the theft of firearms from federally licensed retailers. ATF works closely with the members of the firearms industry to curb the criminal acquisition and misuse of firearms.
More information about ATF and its programs is available at www.atf.gov or visit ATF on Twitter @ATFHQ.
13 Individuals Charged with Theft of Public Money and Aggravated Identity TheftRead the Press Release
SAN JUAN, P.R. – A federal grand jury in the District of Puerto Rico returned seven indictments against 13 defendants charged with theft of public money and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Today Internal Revenue Service (IRS) agents and with the assistance of the task force officers of the Puerto Rico Police Department (PRPD), the Puerto Rico Treasury Department, and the Puerto Rico Special Investigations Bureau executed the arrest.
Out of the 13 defendants, nine are charged with conspiracy to unjustly enrich themselves by fraudulently obtaining United States Department of Treasury tax refunds to which they were not entitled. Members of the conspiracy would submit false and fraudulent federal income tax returns to the United States Department of Treasury using names and social security numbers of individuals without their knowledge or authority. They designated mailing addresses where the tax refunds would be sent, but these were not the true and correct mailing addresses of the individuals whose identities were used to file the false and fraudulent federal income tax returns. Based upon these false and fraudulent income tax returns, the United States Department of Treasury issued income tax refunds, unbeknownst to the individuals whose names and social security account numbers were fraudulently used, to the members of the conspiracy by mailing U.S. Treasury checks to the mailing addresses designated in the false and fraudulent federal tax returns. The members of the conspiracy would forge the endorsement of the individual whose name was on each U.S. Treasury check as the recipient of the refund. They would then negotiate and cause the checks to be deposited in exchange for cash.
Upon conviction of one or more of the violations of 18 USC § 641 set forth in the indictments the defendants shall forfeit to the United States of America pursuant to 18 USC § 981 (a) (1) (C) and 28 USC § 2461 (c), any property , real or personal which constitutes or is derived from profits traceable to the offense. The property to be forfeited includes, but is not limited to, the amount of $1,184,937.52.
“Today’s arrests demonstrate our commitment to investigate and prosecute those who steal the identities of unsuspecting victims in order to enrich themselves at the expense of the federal government.” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.
“Identity theft remains a top priority for the Internal Revenue Service. The indictments announced today send a clear message that stealing identities to file tax returns and receive fraudulent refunds will not be tolerated. The individuals who commit these crimes will be brought to justice. We are committed to safeguarding the U.S. Treasury and the public against stolen identity refund fraud,” stated IRS-CI Acting Special Agent in Charge Donnell Young.
Assistant U.S. Attorney Justin Martin is in charge of the prosecution of the case. If convicted, the defendants face a sentence of up to 10 years of imprisonment under 18 U.S.C. § 641, a minimum sentence of 2 years of imprisonment under 18 U.S.C. § 1028A(c) and a sentence of up to 5 years of imprisonment under 18 U.S.C. § 371. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
29 September 2014
Visalia Doctor Sentenced for Illegally Dispensing OxycodoneRead the Press Release
FRESNO, Calif. — Dr. Terrill Eugene Brown, 61, of Visalia, was sentenced today by United States District Judge Lawrence J. O'Neill to four years and nine months in prison for causing the distribution and dispensing of oxycodone and structuring financial transactions to evade a reporting requirement, United States Attorney Benjamin B. Wagner and Fresno County District Attorney Elizabeth Egan announced. In addition, Brown was ordered to forfeit more than $182,000 and three BMW sedans that were involved in or obtained as a result of his criminal activity.
According to court documents, Brown, a medical doctor formerly licensed by the State of California, prescribed large quantities of highly addictive prescription drugs, including oxycodone and hydrocodone, without medical necessity. Brown prescribed to customers who did not have a legitimate medical need and out of the usual course of his professional practice. Brown deposited the cash earned from these prescriptions into different personal bank accounts in a manner designed to avoid currency transaction reporting requirements that would have alerted the Treasury Department to the large cash transactions.
Oxycodone, also known as “oxy,” is a narcotic analgesic or painkiller and is classified as a Schedule II controlled substance. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States, and dealers profit by selling such medication on the street. Oxycodone-based Schedule II drugs have a high potential for abuse, and users will often crush and snort the pills or dissolve and inject them to get an immediate high. The abuse can lead to addiction, overdose, and sometimes death.
“Deaths from prescription drug abuse have been increasing dramatically in recent years,” said U.S. Attorney Wagner. “Studies have shown that a significant portion of chronic prescription drug abusers obtain their drugs from doctors. A few doctors like Dr. Brown, who deliberately over-prescribe for profit, are fueling a deadly epidemic.”
This case was the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Medical Board of California, California Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Kathleen A. Servatius and Laurel J. Montoya, and Fresno County Deputy District Attorney Nathan Lambert who was sworn in as a Special Assistant U.S. Attorney for the case.
This case was brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the IRS-Criminal Investigation, the DEA, and the U.S. Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
In a related case, on April 11, 2013, a federal grand jury charged 13 defendants for a scheme where they obtained prescriptions for oxycodone, hydrocodone, and medical marijuana cards from Dr. Brown in Modesto. They recruited other individuals to obtain prescriptions and marijuana cards from the doctor and paid them for the prescriptions and marijuana cards. After obtaining the oxycodone and hydrocodone pills, the defendants shipped the pills to other states.
Eight defendants in that case pleaded guilty and have been sentenced as follows: David Ruem, of Tacoma, Wash.; sentenced to 10 years and one month in prison
Phary Chim, of Kent, Wash.; sentenced to four years and three months in prison; Sdey Chim, of Modesto; sentenced to three years and 10 months in prison; Chanrath Yath, of Modesto; sentenced to three years and four months in prison; Phally Thach, of Modesto; sentenced to two and a half years in prison; Raeb Chou, of Modesto; sentenced to two years in prison; Cindy Doeum, of Kent, Wash.; sentenced to three years of probation; and
Chantha Chim, of Murietta; sentenced to three years of probation.Another defendant has pleaded guilty and is awaiting sentencing. The charges against the remaining four defendants are pending and are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Utah Man Charged with Assisting Lehigh County Doctor in Defrauding Government AgenciesRead the Press Release
Robert G. Wray, 75, of Torrey, Utah, was arrested Friday on charges that he conspired with a Lehigh County doctor of osteopathy to defraud the Department of Health and Human Service and the Internal Revenue Service, announced United States Attorney Zane David Memeger. The indictment alleges that the fraud scheme amounted to hundreds of thousands of dollars. Wray is charged with one count of conspiracy, thirty counts of wire fraud, and one count of bankruptcy fraud.
According to the indictment, Wray uses many different names for himself in an attempt to evade federal and other laws by arguing that he has not been properly identified in legal documents. Wray also claims to be a “sovereign” who is not subject to federal laws, including laws regarding personal income taxation. It is further alleged that Wray conspired with Dr. Dennis Erik Fluck Von Kiel, of Macungie, Pennsylvania, to help Dr. Von Kiel evade a six-figure debt he owed to HHS for unpaid medical school loans and avoid paying personal income taxes to the IRS. Dr. Von Kiel, charged separately, is scheduled for trial in December 2014.
If convicted of all charges, Wray faces a maximum possible sentence of 610 years’ in prison, three years of supervised release, a fine of up to $8 million, and a $3,200 special assessment.
The case was investigated by the IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
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