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Wednesday 30 July 2014
Belleville Man Charged in Circle K RobberyRead the Press Release
Case is One of Many Prosecuted by United States Attorney Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsA Belleville man was charged today in federal court in East St. Louis in connection with the robbery which occurred at Circle K Gas Station, located on South Belt East, Belleville, IL, on July 25, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Patrick S. McGuire, 48, of Belleville, IL, was charged with Interference with Commerce by Robbery (Hobbs Act Robbery).
“I will continue to use these harsh federal sentences as a tool to try to deter folks from terrorizing our businesses.” said United States Attorney Wigginton. “If you commit these crimes, be prepared to face hard federal time.”
At his first appearance on the complaint filed today, Federal Magistrate Judge Wilkinson ordered that McGuire be held without bond pending a further hearing on the United States Attorney’s motion that McGuire continue to be held without bond pending his trial.
The case was investigated by the Federal Bureau of Investigation and the Belleville Police Department. The case is being prosecuted by Assistant United States Attorney Laura V. Reppert.
Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
Bank Robbers SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Orlando Brock, aged 43, of Hartwell, Georgia, and Walter Butler, Jr., aged 45, of Gainesville, Georgia, were sentenced on July 30, 2014 by United States District Court Judge C. Ashley Royal in Athens, Georgia for armed bank robbery. Mr. Brock was sentenced to serve 16 years (192 months) in Federal prison. Mr. Butler received a sentence of 7 years (87 months) of incarceration.On April 21, 2014, Mr. Brock was found guilty of armed bank robbery and Mr. Butler was found guilty of aiding and abetting a bank robbery following a five day jury trial. Evidence presented at trial showed that on September 22, 2011, Mr. Butler and Mr. Brock, aided and abetted by Allen Colbert and Juan Vladimir Camp, robbed the North Georgia Credit Union in Lavonia, Georgia. Mr. Brock organized and planned the robbery. Mr. Butler was the driver. Approximately $310,500 in currency was taken from the bank.
The case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Franklin County Sheriff’s Office, the Lavonia Police Department and the Georgia State Patrol. Assistant United States Attorneys Graham Thorpe and Sonja B. Profit represented the Government in the prosecution of the case.“When people commit bank robberies in the Middle District of Georgia, they might as well pack a toothbrush, because my office will use every resource we have to make sure they go straight to jail for a long time. It doesn’t matter if you are doing the planning or doing the driving, the law is going to ultimately catch up with you,” said U.S. Attorney Michael Moore.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: The lengthy sentences imposed on these two defendants reflect the serious nature of armed bank robbery. The FBI is proud of the role it played in working with its law enforcement partners in the area to get two violent offenders off of our streets and making our community a safer place for all.”
Questions regarding this matter should be directed to Karen Moore of the United States Attorney’s Office for the Middle District of Georgia (478/621-2606; [email protected]).Baltimore Man Sentenced to over 6 Years in Prison in Identity Theft SchemeRead the Press Release
Used Stolen Identity Information to Purchase over $124,000 in Motorcycles and Other Goods
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Tavares Davon Miller, a/k/a “Tavon Jackson,” “Tavon Miller,” and “Ooh,” age 30, of Baltimore, Maryland today 75 months in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft, in connection with a scheme to use the personal identifying information of others to purchase motorcycles, electronic equipment, jewelry and other goods. Judge Hollander also entered an order that Miller pay restitution of $105,899.66.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Anne Arundel County Police Chief Kevin Davis; Charles County Sheriff Rex Coffey; Howard County Police Chief Gary Gardner; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Michael Phillips of the Fruitland Police Department.
According to his plea agreement, from September 25 through November 1, 2012, Miller acquired the identifying information of more than 10 victims, and used that information to fabricate driver’s licenses and credit cards in the names of those victims, but using the photograph of co-conspirator Monika Hill (where applicable). Miller and Hill traveled to motorcycle dealerships and retail stores in Maryland, Delaware, Virginia and Pennsylvania, and used the fraudulent identification documents to purchase merchandise, including electronic equipment, jewelry and clothing, or apply for lines of credit at those stores. Miller and Hill then loaded the motorcycles and merchandise into their vehicle and returned to Maryland. Miller advertised the motorcycles and merchandise for sale over the internet, retaining the proceeds of the sales and paid Hill a fee for her services.Judge Hollander determined today that the total amount of loss to the victims is $140,462.03.
Monika Michelle Hill, age 34, of Gwynn Oak, Maryland, pleaded guilty to the same offenses and is scheduled to be sentenced on October 24, 2014 at 2:00 p.m.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service, Maryland State Police, the Anne Arundel, Howard and Montgomery County Police Departments, Charles County Sheriff’s Office and Fruitland Police Department for their work in the investigation. Mr. Rosenstein also recognized the following agencies for their assistance in the investigation: the Delaware State Police; Leesburg (Virginia) Police Department and Stafford County (Virginia) Sheriff’s Department; and the Lancaster (Pennsylvania) Police Department and Springettsbury Township (Pennsylvania) Police Department. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.Avoca Woman Charged with Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Sandra Jalowiec, age 43, Avoca, Pennsylvania was charged with health care fraud in a criminal information filed in U.S. District Court in Scranton yesterday.
According to United States Attorney Peter Smith, Jalowiec, allegedly engaged in a scheme and artifice to defraud Blue Cross of Northeastern Pennsylvania for the period beginning January 2008 through May 2014.
The charges stem from an investigation initiated in June 2014 by the Federal Bureau of Investigation and the Department of Health and Human Services.
The information alleges that Jalowiec defrauded Blue Cross of Northeastern Pennsylvania by forging prescriptions in the name of a licensed medical doctor. The prescriptions were fraudulently written by Jalowiec for pain medications. Blue Cross was then billed for the forged and fraudulent claims. The government also filed a plea agreement in the case. The agreement is subject to the approval of the Court. Jalowiec will be required to pay restitution for the loss amount.
In this particular case, the maximum penalty under the federal statute is 10 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.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Attorney General Holder Announces Justice Department Filings in Voting Rights Cases in Wisconsin and OhioRead the Press Release
Attorney General Eric Holder announced today that the Justice Department has submitted filings in voting rights cases in Wisconsin and Ohio. The department’s involvement in these two cases represents its latest steps to enforce the remaining parts of the Voting Rights Act against restrictive state laws, following up on the department’s lawsuits last year against similar measures in Texas and North Carolina.
In the Wisconsin case, the department filed an amicus brief in Frank v. Walker and LULAC v. Deininger, supporting an earlier ruling by the U.S. District Court for the Eastern District of Wisconsin that struck down Wisconsin’s strict photo voter identification requirement due to its effects on minority voters under Section 2 of the Voting Rights Act, and because it unduly burdens a substantial number of voters in violation of the Fourteenth Amendment. In the Ohio case, the department filed a statement of interest in NAACP v. Husted, a challenge by a civil rights group to a state law curtailing early voting and same day registration. The department’s brief contests the state of Ohio’s incorrect interpretation of the standards set forth by Section 2 of the Voting Rights Act.
“These filings are necessary to confront the pernicious measures in Wisconsin and Ohio that would impose significant barriers to the most basic right of our democracy,” said Attorney General Eric Holder. “These two states’ voting laws represent the latest, misguided attempts to fix a system that isn’t broken. These restrictive state laws threaten access to the ballot box. The Justice Department will never shrink from our responsibility to protect the voting rights of every eligible American. And we will keep using every available tool at our disposal to guard against all forms of discrimination, to prevent voter disenfranchisement, and to secure the rights of every citizen.”
In the amicus brief filed today in the U.S. Court of Appeals for the Seventh Circuit, the department argues that the district court reached the correct decision by finding that Wisconsin’s voter ID law, known as Act 23, violated the Fourteenth Amendment, because it imposes unjustified burdens on a significant number of voters, and violated Section 2 of the Voting Rights Act, because it has a discriminatory result on African-American and Hispanic voters. In addition to finding that Act 23 would result in minority voters having less opportunity to participate in the political process relative to other members of the electorate, the court found that the state’s claimed interests in combating voter fraud and promoting electoral confidence did not justify the significant burdens Act 23 imposes on substantial numbers of voters who lack a qualifying ID.
In the statement of interest filed today in U.S. District Court for the Southern District of Ohio, the department makes clear that Section 2 prohibits the state of Ohio from imposing any voting qualification, prerequisite to voting, or any standard, practice or procedure that would result in the denial or abridgement of the right to vote on account of a person’s race, color or membership in a language minority group. The filing also makes clear that in its own filings in the case the state of Ohio has incorrectly interpreted its requirements under Section 2. The department did not take a position on any of the other claims in the case.
“The United States Department of Justice today affirms its clear position that, under Wisconsin’s Act 23, minority voters have less opportunity to participate in the political process,” said James L. Santelle, United States Attorney for the Eastern District of Wisconsin. “The amicus brief that we are filing not only supports the trial court’s findings but also reflects the department’s continuing focus on ensuring that the franchise remains fully available to all qualified voters.”
“Wisconsin's proud history is one of expanding the opportunity to vote,” said John W. Vaudreuil, United States Attorney for the Western District of Wisconsin. “I'm honored to file this brief with the United States Department of Justice seeking to ensure that this great Wisconsin tradition is reaffirmed, and that every Wisconsin citizen has an equal opportunity to participate in democracy.”
“This office remains committed to preserving the rights of every Ohio voter,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Making sure that courts continue to carefully examine voting restrictions, such as the ones recently imposed in this state, is an important part of that effort.”
In the year since the Supreme Court struck down the coverage formula that determined which jurisdictions were subject to preclearance underthe Voting Rights Act in Shelby v. Holder, Section 2 of the Voting Rights Act remains one of the department’s most powerful tools to protect voting rights. Last year the department used Section 2 to file two lawsuits against the state of Texas to stop the newly enacted discriminatory voter ID law and and to obtain a ruling that the state engaged in intentional discrimination in adopting its 2011 redistricting plans. In North Carolina, the department used Section 2 to sue to stop a number of provisions in an election law that imposes strict voter ID requirements, restricts early voting, eliminates same-day registration and refuses to count otherwise valid provisional ballots cast in the wrong precinct. The suit alleges that the challenged law was motivated by a racially discriminatory purpose and will result in African-American voters having less opportunity than other citizens to participate in the political process. All three cases are ongoing.
Related Materials:
Amicus Brief
Statement of InterestAlamo, N.M., Man Pleads Guilty to Convenience Store RobberyRead the Press Release
ALBUQUERQUE – Ronnie Ganadonegro, 38, a member of the Navajo Nation who resides in Alamo, N.M., pleaded guilty this morning to a robbery charge.
Ganadonegro was arrested on Jan. 23, 2014, on a criminal complaint charging him with robbing the Tiis’ Tsoh Mini Mart in Alamo, which is located in the Navajo Indian Reservation, on Dec. 30, 2013. Ganadonegro subsequently was indicted and charged with one count of robbery.
During today’s proceedings, Ganadonegro entered a guilty plea to the indictment and admitted robbing the Tiis’ Tsoh Mini Mart on Dec. 30, 2013. According to the plea agreement, Ganadonegro approached the counter in the convenience store, pointed an air pistol at the cashier, and demanded the money from the cash register. When the cashier opened the cash register, Ganadonegro grabbed the cash out of the register and fled on foot from the convenience store.
Ganadonegro has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Ganadonegro faces a statutory maximum penalty of 15 years in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Albuquerque office of the FBI, and the Crownpoint office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and Marisa A. Lizarraga.
Additional Charges Filed Against Members of Ironworkers UnionRead the Press Release
Local School Construction Sites Targeted in Additional Extortions
PHILADELPHIA- A federal grand jury returned a superseding indictment today adding two counts of extortion which interferes with interstate commerce against members of Ironworkers Local 401 and allegations of additional criminal conduct as part of the RICO conspiracy. Those allegations concern 14 additional acts of extortions, or “night work,” committed by the defendants at various construction sites in the Philadelphia area, including several local schools. Named in the two new counts are Joseph Dougherty, Christopher Prophet, Richard Ritchie, Edward Sweeney, and William O’Donnell. Co-defendant Francis Sean O’Donnell is also named in the narrative added to the RICO count. They were indicted in February with co-defendants James Walsh, William Gillin, Daniel Hennigar, Greg Sullivan, and Francis Sean O’Donnell.
The superseding indictment charges that the business agents of the Ironworkers Local 401 would approach non-union contractors performing the ironwork at the job sites and demand that they hire union ironworkers. If the non-union contractors refused, members of the Ironworkers Local 401, sometimes referred to as the “Shadow Gang,” would sneak into the construction site at night, use sledgehammers to smash the anchor bolts of the building, and damage equipment. Each incident caused tens of thousands of dollars in damage and construction delays. The vandalized construction sites included elementary schools in Wallingford, PA, and Sharon Hill, PA, a firehouse in Eddystone, PA, an assisted living facility in Horsham, PA, as well as sites in Havertown, Wynnewood, Malvern, and Drexel Hill.
One example of the additional conduct alleged in the superseding indictment includes significant damage to a construction site at a commercial business in Malvern, PA. On January 20, 2012, defendant Francis Sean O’Donnell allegedly reported at a general meeting of the Ironworkers Local 401, in the presence of defendants Dougherty, Sweeney, Prophet, Ritchie, and William O’Donnell, that he was “in negotiations” with the contractors to hire union ironworkers and that if the Ironworkers Local 401 does not “get some men put on they are going to run into some unsuspected delays.” On February 17, 2012, defendant O’Donnell allegedly reported this contractor failed to hire any union ironworkers and stated “I just want to thank the Shadow Crew for another job well done. They were shut down for about a week and cost them about $150,000.” O’Donnell further allegedly reported at this meeting that “about a week after that I got a call” from the contractor wanting to hire some union ironworkers.
Each additional count of extortion which interferes with interstate commerce carries up to 20 years in prison. Each of the defendants is facing a substantial prison term if convicted.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance from Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-852541 Linked to El Monte Street Gang Charged in Federal Racketeering Indictment That Alleges Murders, Robberies and Narcotics TraffickingRead the Press Release
LOS ANGELES – More than 400 law enforcement officers this morning conducted an operation that led to the arrest of 17 members and associates of the El Monte Flores gang, an organization that takes direction from the Mexican Mafia prison gang and controls criminal activity in the cities of El Monte and South El Monte.
Those taken into custody today are among 41 defendants named in a 167-page racketeering indictment that alleges “El Monte Flores gang members commit crimes, including acts of violence (ranging from battery to murder), drug trafficking offenses, robbery, burglary, carjacking, witness intimidation, kidnapping, weapons trafficking, credit card fraud, identity theft, and hate crimes directed against African-Americans who might reside or be present in the cities of El Monte and South El Monte in an effort to rid these cities of all African-Americans.”
Other gang-related crimes are outlined in the 62-count indictment, including the execution of a former Mexican Mafia member and the fatal shooting of four others in an El Monte residence in 1995. The indictment also outlines an ongoing dispute involving members of the Mexican Mafia who are attempting to exercise control over the gang. One of those Mexican Mafia members – James “Chemo” Gutierrez, 52, who is currently in federal custody after his supervised release following a 20-year sentence in a federal homicide case was revoked – is the lead defendant in the indictment. Other Mexican Mafia members serving life prison terms are not charged in the indictment, but they are listed as co-conspirators.
The gang maintains a significant presence at the Boys & Girls Club of America – San Gabriel Valley Club on Mountain View Road, where gang members openly sold drugs, held gang meetings and even held a car wash fundraiser, according to the indictment. Members of the gang also regularly use and threaten to use violence to extort “taxes” from drug dealers at “Crawford’s Plaza” (at Valley Boulevard and Garvey Avenue) and the “Klingerman” apartments, as well as from fraudulent document vendors who operate at Crawford’s Plaza. The indictment further alleges several incidents dating back to early 2001 in which African-American victims in El Monte were attacked, threatened and subjected to racial epithets.
The investigation into the El Monte Flores gang was conducted by a task force that included the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS – Criminal Investigation; and the El Monte Police Department
According to the indictment that was unsealed this morning, El Monte Flores, which has an estimated 800 members, operated as a criminal enterprise that used violence and intimidation to exercise authority in the area it claimed. The multi-generational gang was formed in the 1960s, and since then it has controlled the drug trade in El Monte and South El Monte.
The defendants named in the federal indictment face various charges, including conspiracy to engage in racketeering activity in violation of the federal Racketeer Influenced and Corrupt Organizations (RICO) Act; violent crimes in aid of racketeering; conspiracy to possess with intent to distribute and distribute controlled substances; using a firearm in relation to a crime of violence or drug trafficking; weapons charges; conspiracy to launder money; and being an illegal alien after previously being deported.
Those taken into custody today are expected to be arraigned this afternoon in United States District Court.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If they are convicted, all of the defendants would face up to 20 years for the RICO and potentially decades more depending on which additional offenses they are charged with. One defendant – Johnny Mata, 33, of Baldwin Park, California – faces a potential death penalty if he is convicted of being the shooter in the slaying of a rival gang member in Baldwin Park on Christmas Eve in 2010.
Out of the 41 defendants named in the federal indictment, 17 were arrested this morning. Fifteen defendants named in the grand jury indictment were already in custody. Authorities are continuing to search for nine defendants.
In addition to the law enforcement agencies who conducted the investigation, several agencies provided substantial assistance during this morning’s takedown, including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the California Department of Corrections and Rehabilitation, the Irvine Police Department, the Covina Police Department, the Montebello Police Department, the Azusa Police Department, the Baldwin Park Police Department, the United States Marshals Service, the Los Angeles Sheriff’s Department, the San Bernardino Sheriff’s Department, and the Los Angeles County District Attorney’s Office.
Release No. 14-099
Tuesday 29 July 2014
“Doctor at Home” Manager Arrested on Federal Health Care Fraud Charge; Allegedly Ran Extensive Medicare Fraud SchemeRead the Press Release
CHICAGO — A registered nurse who operates a suburban health care provider that sends physicians to patients’ homes was arrested today on a federal health care fraud charge. The defendant, DIANA JOCELYN GUMILA, who manages Suburban Home Physicians, doing business as Doctor At Home, was charged with health care fraud in a criminal complaint that was unsealed upon her arrest. The complaint alleges a scheme to defraud Medicare by falsely certifying patients as being confined to their homes and requiring home health services; falsely increasing, or “upcoding,” claims for services; over-scheduling and double-billing patient visits, submitting false claims for providing extensive oversight of patients’ home health services, and billing for tests that were not medically necessary.
Gumila, 45, a licensed registered nurse in Illinois since 1991, was scheduled to appear at 3 p.m. today before U.S. Magistrate Judge Young Kim in U.S. District Court.
Simultaneous with Gumila’s arrest, agents from the FBI, the U.S. Department of Health and Human Services Office of Inspector General, and other law enforcement agencies executed search warrants at the offices of Doctor At Home and an affiliated business, Xpress Mobile Imaging, both located in the 800 block of East Higgins Road in Schaumburg, as well as at Gumila’s residence in Streamwood. A warrant was also executed to seize alleged fraud proceeds in a bank account maintained by Suburban Home Physicians.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG. The Railroad Retirement Board Office of Inspector General is also participating in the investigation.
According to a 69-page affidavit in support of the arrest, search and seizure warrants, Doctor At Home sends physicians and physician’s assistants, who are accompanied and driven by a medical assistant, to visit patients in their homes. Doctor At Home gets many of its patients from home health agencies, which refer patients to Doctor At Home so that a physician will sign a form ordering the home health agency to provide nursing services to the patient.
According to Medicare claims data, from 2013 through May 2014, more than 300 home health agencies have submitted Medicare claims stating that they were ordered by just four Doctor At Home physicians to provide home health services to approximately 4,000 patients. Those home health agencies were paid more than $20 million as a result of their claims.
The affidavit alleges that most of Doctor At Home’s visits were billed to Medicare as if they were complicated, with the average payment for most visits approximately $120. As a result of alleged double-billing, over-billing, and certifying patients for home health services who were not confined to the home, Doctor At Home assisted home health agencies in falsely billing Medicare, allegedly causing Medicare to pay more than $1,000 a month on many patients simply so a nurse can visit once a week and conduct a basic check of the patient’s condition.
“Doctor At Home’s practices and processes regularly cause Medicare to pay more than $1,250 a month for basic maintenance of many patients who do not need such services,” the complaint alleges.
The affidavit states that agents have interviewed one current and seven former employees of Doctor at Home, including a current physician’s assistant who contacted law enforcement in January this year. Investigators have also reviewed an audio recording provided by a former Doctor At Home physician of an October 2013 meeting she had with Gumila, as well as emails and documents, claims data, and patient files, and have conducted interviews with patients of Doctor At Home and their primary care physicians whose statements contradict Doctor At Home’s billing and patient records.
In the recorded meeting, the doctor, identified as “Physician D,” who began working for Doctor At Home only a few weeks earlier, told Gumila that several patients did not qualify for certain services. Gumila responded by telling Physician D that she was an “artist” who should “paint the picture” of each patient in a way that Medicare would accept, the affidavit states.
Gumila allegedly overruled at least one physician and manipulated the certification of many patients as being confined to the home and requiring home health services. In doing so, she assisted home health agencies in billing Medicare for ineligible patients and medical services in exchange for Doctor At Home receiving patient referrals from the home health agencies. As part of the scheme, Doctor At Home allegedly scheduled patient visits on a monthly basis rather than based on patient need and billed Medicare as if the visits were complicated when they were actually routine and short in duration. Doctor At Home also frequently double-billed the same visit as a “patient visit” and also as a “wellness visit.” Doctor At Home also claimed that physicians and physician’s assistants provided extensive oversight of patients’ home health services when, in fact, employees in the Philippines prepared those oversight claims in part by counting routine visits toward oversight.
The complaint also alleges that Doctor At Home has billed Medicare for thousands of eye-movement tests that some providers believe were medically unnecessary, and it has referred thousands of echocardiograms and ultrasound tests to Xpress Mobile Imaging, which has several business ties to Doctor At Home.
Health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Stephen Chahn Lee.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The Medicare Fraud Strike Force began operating in Chicago in February 2011, and consists of agents from the FBI and HHS-OIG, working together with prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Scores of defendants have been charged locally in health care fraud cases since the strike force began operating in Chicago.
To report health care fraud to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Complaint
West Des Moines Woman Sentenced for Fentanyl DistributionRead the Press Release
DES MOINES, IOWA - On Tuesday, July 29, 2014, Macey Lynn Stills, age 23 of West Des Moines, Iowa, was sentenced to 21 months imprisonment for distributing fentanyl, announced United States Attorney Nicholas A. Klinefeldt. Chief District Judge James E. Gritzner also ordered Stills to serve a term of three years supervised release following the term of imprisonment, and to pay a $100 special assessment to the Crime Victim’s Fund.
In early 2013, Stills took fentanyl patches from her place of employment, and subsequently sold them. On January 10, 2013, Stills sold four patches for $160 to an individual who later died that same date from a fentanyl overdose. On March 24, 2014, Stills pled guilty to distribution of fentanyl in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(C).
This investigation was conducted by the Ames, Iowa, Police Department, the Central Iowa Drug Task Force and the Drug Enforcement Administration. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Wentzville Woman Pleads Guilty to Theft of Government FundsRead the Press Release
St. Louis, MO – VICTORIA JEAN BRILEY, of Wentzville, admitted to collecting $138,000 in veteran’s benefits in the name of her deceased mother.
According to the plea agreement, after her mother’s death in 2006, Briley maintained control over a bank account in her mother’s name which received the monthly payments from the U.S. Department of Veterans Affairs. When confronted by investigators, Briley admitted she had been concealing her mother’s death from the government and improperly receiving the benefits for years.
Briley pled guilty to one count of theft of government funds before United States District Judge Audrey G. Fleissig. Sentencing has been set for November 4, 2014.
The maximum term of imprisonment for theft of government funds is 10 years and/or a fine of $250,000. Restitution to the government is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Department of Veterans Affairs-Office of Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Vending Machine Company Executive Who Provided False IRS Forms to Pepsi Sentenced to Six Months in Prison, Six Months’ Home ConfinementRead the Press Release
Must Also Pay $1 Million in Restitution
NEWARK, N.J. - The former principal of a New Jersey vending company was sentenced today to six months in prison, six months of home confinement and agreed to pay restitution of $1 million to the Pepsi Bottling Group for his role in a tax fraud scheme, U.S. Attorney Paul J. Fishman announced.
Joseph Belasco, 65, of Cedar Grove, New Jersey, previously pleaded guilty before U.S. District Judge Jose L. Linares to a superseding information charging him with providing a false 2008 IRS 1099 form to the wife of a PepsiCo executive for consulting services that she never performed. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:In the spring of 1998, Belasco, along with a business associate, created Impact Cause Related Marketing (Impact Marketing), a subsidiary of Culinary Ventures Vending, a company that placed and stocked vending machines in private and commercial facilities, such as state colleges and entertainment venues. The purpose of Impact Marketing was allegedly to provide Pepsi Bottling Co. with leads for acquiring new customers to purchase its cans, bottles and fountain products. Impact Marketing and Belasco would receive commissions for as long as the client remained a Pepsi customer. According to its contract, Impact Marketing would also receive quarterly rebates, depending upon the amount of Pepsi product a customer purchased on an annual basis.
Edwin Glasspool, a Pepsi employee who developed new customers, assigned those customers to Impact Marketing. He also reassigned existing Pepsi customers to the list of new customers allegedly referred by Impact Marketing, generating additional commissions for leads for Belasco that Belasco had not actually generated himself. Between 1998 and 2008, Impact Marketing received from Pepsi $2.9 million in commissions and rebates as a result of the fraudulent scheme. Glasspool’s wife, Janice Bachman, who filed joint tax returns with her husband, received approximately $135,000 in annual income for a no-show position with Belasco and Impact Marketing. Glasspool had previously pleaded guilty to defrauding Pepsi of $2.9 million dollars and having his wife receive his annual share of the defrauded money through checks for consulting services issued by Impact Marketing, the vending company.
In addition to the incarceration and the $1 million in restitution, Judge Linares sentenced Belasco to two years of supervised release and fined him $30,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by V. Grady O’Malley, Senior Litigation Counsel of the U.S. Attorney's Office Organized Crime/Gangs Unit, in Newark.
14-265
Defense counsel: John A. Azzarello Esq., and David Fassett Esq., Chatham, New JerseyUnited States Attorney’s Office Announces Indictment of Clark County SheriffRead the Press Release
Sheriff indicted as part of on-going effort to fight public corruption
NEW ALBANY– Joseph H. Hogsett, United States Attorney, announced the indictment of Daniel N. Rodden, 60, Jeffersonville, today. Rodden was indicted for seven counts of making a false statement and one count of counseling the destruction of evidence in a federal investigation. He will have his initial appearance this afternoon in front of a Magistrate Judge.
On May 14, 2013, Rodden, the elected sheriff of Clark County, allegedly provided a prostitute with official law enforcement credentials and an official deputy’s badge of the Clark County Sheriff’s Department so that the prostitute could obtain a government employee rate at a hotel in Louisville, KY. Rodden allegedly met the prostitute at the hotel on May 29 in a bedroom and engaged in a sex act with the prostitute.
The Federal Bureau of Investigation (“FBI”) identified Rodden as it was conducting an investigation concerning wire fraud and enticing an individual to travel in interstate commerce to engage in prostitution. FBI agents and Task Force officers interviewed Rodden in May and June of 2014. Over the course of three interviews, Rodden allegedly told FBI agents that he did not give the prostitute government credentials, did not pay to have sexual relations with her, and did not contact her and instruct the prostitute to destroy evidence of their encounter.
“Our message has been consistent but bears repeating: if you violate the public trust, our Public Corruption Working Group will find you, will investigate you, and will prosecute you to the fullest extent of the law,” said Hogsett.
This investigation is part of the U.S. Attorney’s Office Public Integrity Working Group (“PIWG”), a collaborative effort between federal state and local law enforcement agencies to rid Indian of the “culture of corruption” that too often deprives citizens of proper representation. This prosecution comes as part of a joint effort between the Indiana State Police, the FBI, and the U.S. Attorney’s Office.
"FBI investigations seek out truth in the interest of justice and integrity is a bedrock principal of law enforcement. Truth and integrity are essential for those in public office," said Special Agent in Charge W. Jay Abbott.
Anyone who has information to share about public corruption matters is encouraged to contact the Public Integrity Hotline at 317-229-2443.
According to Senior Litigation Counsel Bradley Blackington, who is prosecuting the case on behalf of the government, Rodden faces up to 20 years imprisonment for counseling the destruction of evidence and five years for each count of making a false statement.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Union President Charged with Embezzling FundsRead the Press Release
PITTSBURGH – A Ross Township man has been indicted by a federal grand jury in Pittsburgh on a charge of union embezzlement, United States Attorney David J. Hickton announced today.
The one-count indictment named Michael C. Trembulak, 41, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, Trembulak, while serving as the President of the Utility Workers Union of America AFL-CIO Local 475, embezzled approximately $31,528.65 from the union by making unauthorized debit card cash withdrawals, charges and purchases, and unauthorized teller cash withdrawals, from the union’s checking account during the period from April 19, 2012, to Sept. 19, 2012.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor-Management Standards conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office Reaches Settlement with Olympia Entertainment to Improve Access for People with Disabilities at Joe Louis Arena and Ensure Full Compliance with the Americans with Disabilities Act at Olympia’s Planned New Events CenterRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Michigan has reached an agreement with Olympia Entertainment, Inc. under the Americans with Disabilities Act (ADA) for extensive changes to improve physical accessibility and opportunities for people with disabilities at Joe Louis Arena, a large entertainment complex, and home of the NHL team the Detroit Red Wings, located in Detroit, Michigan. The settlement agreement also requires Olympia to work closely with an Independent Licensed Architect, as well as the U.S. Attorney’s Office, to ensure that Olympia’s planned new Events Center will be designed, constructed, and operated in full compliance with the ADA. The settlement agreement resolves an investigation following a complaint filed by a patron with a disability who was unable to attend Red Wing games at Joe Louis Arena.
“This agreement provides people with disabilities with much improved access to enjoy events at Joe Louis Arena, and perhaps even more importantly, ensures full and equal opportunity at Olympia’s new Events Center for generations of hockey fans to come” said U.S. Attorney Barbara L. McQuade. “The Department of Justice is committed to knocking down these types of barriers, and we commend Olympia for its cooperation and efforts to do the same.”
Under the settlement agreement, Olympia will provide 45 wheelchair accessible seats, and an equal number of companion seats at Joe Louis Arena, with substantial improvements in the lines of sight over standing spectators. Tickets for the accessible and companion seats will be offered at prices proportionate to the number of general seats in each price category, and will be able to be purchased in the same manner as general seats, including online through Ticketmaster. Olympia has also agreed to improve accessibility in restrooms, concession stands, restaurants, and clubs; improve signage throughout Joe Louis Arena; provide additional Assistive Listening Devices; and annually train its employees on the ADA.
The settlement agreement also requires Olympia to submit to inspections by an Independent Licensed Architect to allow the U.S. Attorney’s Office to monitor all stages of the design and construction process for Olympia’s new Events Center which is planned to house Olympia’s future entertainment operations, including Red Wings games, to ensure full ADA compliance. Under the agreement, all operating policies and procedures for the new Events Center concerning the ADA also will have to be approved by the U.S. Attorney’s Office.
Today’s agreement was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by public accommodations. The U.S. Attorney’s Office will actively monitor compliance with the agreement.
For more information on the ADA and today’s agreement with Olympia Entertainment, Inc., visit www.ada.gov or call the United States Justice Department’s toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY) or the U.S. Attorney’s Civil Rights hotline at (313) 226-9151U.S. Attorney Luger Announces Guilty Plea in Violent Drug ConspiracyRead the Press Release
Andrew M. Luger, United States Attorney for the District of Minnesota, today announced the guilty plea of ANTONIO NAVARRO, a/k/a TONY SANCHEZ, 19, to Conspiracy to Distribute Methamphetamine. NAVARRO pleaded guilty before United States District Court Judge John R. Tunheim. NAVARRO was indicted on May 5, 2014, with three co-defendants: JESUS RAMIREZ, 31; JONATAN DELGADO ALVAREZ, 22; and JUAN RICARDO ELENES VILLAVAZO, a/k/a. CHAPO, 32. RAMIREZ and ALVAREZ are in custody and awaiting trial. VILLALVAZO remains unapprehended.
“This case is a powerful example of the violent tactics of drug traffickers,” said U.S. Attorney Luger. “The United States Attorney’s Office in Minnesota, along with our local and federal law enforcement partners, is committed to stopping the flow of illegal drugs into our state, and aggressively prosecuting the violent crime that so often comes with it.”
As set forth by the defendant’s guilty plea, between February 2014, and April 2014, NAVARRO distributed methamphetamine and maintained a house in St. Paul where a large amount of methamphetamine was stored.
According to the indictment, on April 14, 2014, RAMIREZ and ALVAREZ flew from Los Angeles to Minneapolis. Later than evening, the defendants are charged with kidnapping two victims at gunpoint, holding them captive, and beating and making violent threats against their lives that of their families. According to the indictment, VILLAVAZO sliced and nearly severed one of the victim’s fingers.
NAVARRO was arrested at approximately 7:30 p.m. on April 15, 2014. He is expected to be sentenced at a future date. This conviction is the result of an investigation by the Safe Streets Task Force. Safe Streets is a FBI-sponsored task force focused on combating violent street crime, as well as gang and drug- trafficking offenses. This case is being prosecuted by Assistant United States Attorney Jeffrey S. Paulsen.
United States Attorney Andrew Luger thanked the Minneapolis Police Department, and the St. Paul Police Department, for their assistance in the investigation.Two Mexican Citizens Sentenced to Prison for Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Mexican citizens, who were in the United States illegally, were sentenced to prison on charges of illegal reentry into the United States.
German Espinosa-Hernandez, also known as Ferdinand Gonzalez-Velez, age 36, a native and citizen of Mexico in the United States illegally, was sentenced today by United States District Judge Yvette Kane to 36 months imprisonment and three years of supervised release following his release from imprisonment after pleading guilty to illegal reentry into the United States on March 11, 2014.
According to U.S. Attorney Peter Smith and documents filed in federal court, Espinosa-Hernandez was ordered removed by an Immigration Judge in York, Pennsylvania in May, 2008 and was previously removed from the United States on two prior occasions, in May and June, 2008.
Additionally, Espinosa-Hernandez was granted voluntary returns to Mexico on two other occasions, in December, 1999 and August, 2008. Since 2003 Espinosa-Hernandez has accumulated seven prior criminal convictions as an adult, including resisting arrest and three driving under the influence of alcohol offenses. On September 24, 2013, after having reentered the United States illegally Espinosa-Hernandez was again apprehended in Franklin County by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.
On Wednesday, July 23, 2014, Alberto Bautista-Sanchez, age 30, a native and citizen of Mexico in the United States illegally, was sentenced by United States District Judge Yvette Kane to 41 months imprisonment and three years of supervised release following his release from imprisonment after pleading guilty to illegal reentry into the United States on March 19, 2014.
According to U.S. Attorney Peter Smith and documents filed in federal court, Bautista-Sanchez was ordered removed from the United States by an Immigration Judge in Arizona in November, 2002. Between November 2002 and January 2013, Bautista-Sanchez was previously removed from the United States eight times. Additionally, since 2001, Bautista-Sanchez has accumulated thirteen prior criminal convictions as an adult, including two aggravated felony sex offenses involving a minor.
On December 3, 2013, after reentering the United States illegally, Bautista-Sanchez was apprehended in Franklin County by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.
These cases were investigated by the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) and were prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
****Tuscaloosa County Man Sentenced to Three Years in Prison for Defrauding SBA and Financial InstitutionsRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Tuscaloosa County man to three years in prison for his schemes to defraud financial institutions and the Small Business Administration of more than $3 million, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
DANNY RAY BUTLER, 58, of Fosters, Ala., pleaded guilty in February to three counts each of wire fraud and bank fraud, and consented to forfeit $1.76 million to the government as proceeds of illegal activity. U.S. District Judge L. Scott Coogler sentenced Butler to the prison term, ordered him to forfeit the $1.76 million and to pay restitution of $1.76 million to the SBA and $50,000 to Next Gear Capital, a finance company that loaned money to Butler's used car dealership. The court will decide later the amount of restitution that Butler must pay to Alabama One Credit Union, which he defrauded.
Butler's crimes were related to three separate fraud schemes.
Butler owned and operated Butler Wholesale Inc., a used car lot in Tuscaloosa, and Fosters Groceries, LLC, a company formed to build and operate a grocery store in Fosters. According to his plea agreement and other court records, Butler defrauded the SBA of $1.76 million in connection with a loan to build Fosters Groceries. He also engaged in a check-kite scheme that caused Alabama One Credit Union to lose about $1.28 million, and he misrepresented Butler Wholesale's car inventory to Next Gear Capital, causing Next Gear to lose $50,000.
"The defendant perpetrated his two most lucrative schemes – the SBA fraud and the check-kite scheme – simultaneously, garnering the use of $3 million to satiate his need for money," the government said in its sentencing memorandum. Butler created counterfeit documents, altered existing documents, forged signatures, and repeatedly lied to his several victims, the government said.
The SBA is a federal agency that supports and protects the interests of small businesses. Through public and private partnerships, the agency helps Americans start, build, and grow small businesses. One of its supports is the SBA 504 Loan Program.
In early 2010, Butler sought to borrow about $5 million from West Alabama Bank and Trust to build a grocery store in Fosters. When the bank refused to finance the entire project, Butler applied for and obtained an SBA 504 loan. West Alabama Bank and Trust ultimately agreed to loan Butler half of the project's total cost, and SBA agreed to finance 35 percent. Butler was required to provide the remaining 15 percent as his cash injection into the project.
Almost immediately, after construction was complete, Butler defaulted on the loans by failing to make payments to SBA and West Alabama Bank and Trust as promised, according to court records.
Butler's check-kite scheme in 2011 and 2012 involved carefully timed deposits and checks between his Fosters Groceries account at West Alabama Bank and Trust and his Butler Wholesale account at Alabama One Credit Union, in order to artificially inflate the account balances. He deposited hundreds of checks, totaling about $45 million, from one account to the other at the two financial institutions, according court records. When the bank and trust discovered the check-kite scheme in February 2012 and refused to honor a number of Fosters Groceries' checks deposited into Butler's Alabama One Credit Union account, the credit union lost about $1.28 million.
The third fraud scheme involved Butler's misrepresentations to Next Gear Capital. Butler received loans from Next Gear to buy inventory for his car lot. A specific car secured each loan, and Next Gear inspected the dealership's inventory monthly. According to court records, Butler employed various schemes to defraud Next Gear and continue receiving loans. His misrepresentations included listing cars as part of the dealership's inventory, even though they already had been sold, and lying to Next Gear representatives when they inspected his inventory.
The FBI and SBA-OIG investigated the case. Assistant U.S. Attorney George A. Martin Jr. prosecuted it.Statement of Manhattan U.S. Attorney Preet BhararaOn the Conviction of Daniel HalloranRead the Press Release
“With today’s verdict of guilty reached by an impartial and independent jury, the clean-up of corruption in New York continues in courtrooms. As the jury unanimously found, Daniel Halloran played a key role in two distinct political corruption schemes: first, for $20,000, Halloran was willing and able to serve as a go-between to deliver bribes to political party officials, and second he also took nearly $25,000 in cash and illegal campaign contributions to steer $80,000 in City Council money to other bribe payers. Dan Halloran was the lone defendant in the trial that just ended in his conviction, but he is unfortunately not alone in a crowded field of New York officials who are willing to sell out their offices for self-enrichment. This Office will continue the vigorous prosecution of political corruption to secure for the people of New York – regardless of party affiliation – what they deserve: the honest labors of their elected representatives. And we will continue to partner with the FBI, whose outstanding investigative work in this case was instrumental to achieving a just result.”
Specially Designated Global Terrorist Al-Haramain Islamic Foundation, Inc. Pleads Guilty to Tax FraudRead the Press Release
Conviction Relates to Distribution of $150,000 for ChechnyaEUGENE, Ore. - Amanda Marshall, United States Attorney for the District of Oregon, announced that on July 29, 2014, the Al-Haramain Islamic Foundation (AHIF), Inc., a tax exempt charity registered in Oregon, pleaded guilty in U.S. District Court in Eugene, Oregon to one count of filing a false tax return with the Internal Revenue Service.
The conviction relates to a $150,000 donation AHIF’s parent organization in Saudi Arabia received in 2000, intended to be sent to Chechnya. The $150,000 was wire transferred by the donor from an overseas bank account into an AHIF-US bank account in Ashland, Oregon. An employee of AHIF flew from Saudi Arabia to Oregon and, together with the head of AHIF-US, they withdrew the $150,000, and the funds were transported to Saudi Arabia.
Under U.S. law, tax exempt charities must file a return with the Internal Revenue Service, known as a Form 990, reporting the receipt and distribution of all its donations. An accountant in Medford, Oregon was retained by AHIF-US to prepare the Form 990. This accountant was not told by AHIF that the $150,000 was sent overseas. Instead, AHIF-US representatives informed the accountant that most of the funds were used as part of the purchase price for a building in Missouri, and that a portion of the funds were refunded to the donor. This information was false.
Relying on the information provided to him by AHIF representatives, the accountant prepared a Form 990, which falsely reported how the $150,000 was distributed, and made no mention that the funds were sent overseas. A representative of AHIF-US signed the return and it was filed with the IRS.
In its guilty plea today, AHIF, acting through its attorney, acknowledged that it filed the Form 990 with the IRS, knowing it was false as to a material manner.
Prior to entering the plea agreement, AHIF paid the IRS $121,275.00 to satisfy all taxes, penalties and interest due as a result of the false return. At sentencing, AHIF was placed on probation for three years. During that time, AHIF agreed that it will make no attempt to resume operations as a tax exempt charity in the United States.
In return, the United States agreed to dismiss criminal charges pending against Pirouz Sedaghaty (Pete Seda), the former head of AHIF in the United States. A third defendant, Soliman Al-But’he, remains under indictment. An arrest warrant is outstanding for Al-But’he and he is a fugitive.
“This conviction sends an important message to charities such as Al-Haramain that they need to carefully scrutinize donations to ensure they are used for proper purposes,” said US Attorney Amanda Marshall. “When they fail, and lie to the Internal Revenue Service about where charitable funds are sent, there will be consequences.”
“We have a duty to protect the sanctity of our nation’s charitable donations”, said Special Agent in Charge Kenneth Hines of IRS Criminal Investigation. “When an organization misrepresents the cause and destination of pledged funds, IRS Criminal Investigation, together with our partners at the FBI and Homeland Security Investigations, will be there to bring it to justice. We will not tolerate any organization that exploits its’ exempt status.”
This case was investigated by the IRS, the FBI and Homeland Security Investigations. Assistant U.S. Attorney Chris Cardani, Assistant U.S. Attorney Charles Gorder and First Assistant U.S. Attorney Kent Robinson handled the prosecution of the case.
South Texas Tax Preparer Sentenced to Federal PrisonRead the Press Release
In Del Rio, 34-year-old John Andrew Cardenas of Uvalde, TX, was sentenced to three years in federal prison followed by one year of supervised release and ordered to pay $97,445.95 restitution to the IRS after pleading guilty to preparing fraudulent Income Tax Returns announced U.S. Attorney Robert Pitman and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steven McCollough.
Cardenas is the owner and operator of Cardenas Income Tax Service with offices in Uvalde, Crystal City, Kingsville and Corpus Christi. On August 29, 2013, Cardenas pleaded guilty to one count of aiding and abetting the preparation of a false and fraudulent tax return. By pleading guilty, Cardenas admitted that he knowingly and intentionally prepared tax returns for calendar years 2007, 2008 and 2009 which fraudulently claimed that the taxpayers operated fictitious businesses in order to generate larger tax refunds for the taxpayers.
In addition to the prison term and restitution, Cardenas has expressly consented to a permanent injunction barring him from preparing, filing, or assisting in the preparation of, income tax returns in the future.
“IRS-Criminal Investigation will continue to vigorously pursue unscrupulous return preparers, such as Mr. Cardenas, who abuse their position of trust and prepare fraudulent tax returns. These criminal actions are effectively stealing from hard-working, honest taxpayers who pay their fair share. Taxpayers expect that individuals who present themselves as qualified return preparers will prepare their tax returns accurately and with integrity,” stated IRS-CI Special Agent in Charge McCollough.
Assistant United States Attorneys Bryan N. Reeves and Jay Hulings prosecuted this case on behalf of the Government.
Seven Sentenced to Federal Prison in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
HOUSTON - The final two defendants charged for their roles in a multi-million dollar mortgage fraud scheme operating in the Houston area have been ordered to prison, announced United States Attorney Kenneth Magidson. Din Chaney, 36, and Lisa Lipton, 50, admitted to participating in a conspiracy to commit bank, mail and wire fraud as did Catherine Sanoubane, 35, Jose Batista, 36, Dennis Hannah, 43, Nathaniel Gordon III, 32, and Shawn Lewis Washington, 38.
All were convicted of the conspiracy. Chaney, Sanoubane, Hannah and Gordon also admitted to conspiracy to commit money laundering
Today, U.S. District Judge Lee H. Rosenthal sentenced Chaney to a total of 36 months, while Lipton received a 52-month-term of imprisonment. Lipton and Chaney were also ordered to pay $3,499,129.06 and $4,551,917.65 in restitution, respectively.
Sanoubane, Hannah, Gordon, Washington and Batista were all sentenced earlier this year to respective terms of 115, 46, 24, 97 and six months in federal prison. All were also ordered to pay restitution in varying amounts ranging from more than $1.6 million to more than $6.3 million.
The scheme involved the recruitment of straw borrowers to purchase residential properties at an inflated value. Financing was obtained from various lenders who were provided false and fraudulent information meant to induce them to fund the loans. The defendants arranged to be compensated with a portion of the loan proceeds.
Ultimately, the loans fell into default which resulted in a substantial loss to the lenders. Sanoubane, Lipton, Chaney and Gordon were all licensed loan officers in the State of Texas engaged in mortgage lending during the commission of the fraud. In addition, Lipton was also a licensed mortgage broker doing business as TWMC Inc.
The criminal investigation was led by the FBI, U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Melissa Annis is prosecuting.
Ringleader of Tax Refund Check Scam Admits $2.6 Million ConspiracyRead the Press Release
NEWARK, N.J. - The ringleader of a conspiracy to steal income tax refund checks issued by the United States today admitted his role in the scheme, which led to the theft of more than $2.6 million from the government, U.S. Attorney Paul J. Fishman announced.
Raymundo Hernandez, 35, of Bronx, New York, pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to an information charging him with conspiracy to steal government funds.
According to the documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They complete IRS-1040 tax return forms using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data, always ensuring that fraudulent tax return generates a refund. The perpetrators then direct the U.S. Treasury Department to mail the refund checks to locations they control or can access. In some cases, they bribe mail carriers to remove the refund checks from their mail routes. With the fraudulently obtained refund checks in hand, the perpetrators generate cash proceeds by depositing the checks into bank accounts they control.
Hernandez admitted he knew the checks had been generated by conspirators filing false and fraudulent income tax returns with the IRS in order to obtain refunds to which he was not entitled. He admitted that from November 2010 through October 2012 he recruited and maintained a network of conspirators in the Newark and Bronx areas and distributed fraudulent treasury checks to that network in exchange for payment. Hernandez obtained at least 44 such checks from Luis Pena, 32, of Bronx, who pleaded guilty to his role in the conspiracy in March 2014. Pena had arranged for the fraudulent checks to be sent to a postal route and intercepted by the mail carriers on that route: Gloria Rivera 40, of Bronx, and Lourdes Ortiz, 41, of Bronx, Rivera and Ortiz also entered guilty pleas in March 2014 to their respective roles in the conspiracy.
Hernandez admitted that once he distributed the fraudulent checks, he and his conspirators deposited them into bank accounts, primarily in the names of businesses they controlled and then withdrew large amounts of the proceeds in cash. They used some of the money to purchase cars and gamble at Atlantic City casinos.
The fraudulently cashed checks totaled $2,659,718. Of these deposits, $171,589 was deposited into three bank accounts under Hernandez’ direct control.
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing before U.S. District Judge Faith S. Hochberg is currently scheduled for Nov. 6, 2014.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; postal inspectors of the U. S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and special agents of the U.S. Postal Service - Office of Inspector General, under the direction of Special Agent in Charge Rafael A. Medina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-264Defense counsel: Roy Greenman Esq., Union, N.J.
Hernandez, Raymundo Information
Return Preparer Pleads Guilty in Identity Theft Tax Refund Scheme Involving Personal Identification Information of Miami-Dade County Public School StudentsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that Donald Claude, 34, of Miramar, pled guilty today to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing is scheduled for October 24, 2014. At sentencing, Claude faces up to 20 years in prison for wire fraud, and a mandatory term of two years in prison, consecutive to any other term in prison, for aggravated identity theft.
According to court documents, Claude was the Chief Executive Officer of J&D Tax Services, LLC. Claude obtained an Electronic Filing Identification Number (EFIN) for J&D Tax Services, LLC which permitted Claude and co-defendant James Jean-Baptiste to file tax returns electronically in the names of other individuals. Claude also obtained a Preparer Tax Identification Number (PTIN) as a tax preparer that permitted him to identify himself as the preparer on tax returns electronically filed in the names of other individuals.
Claude and Jean-Baptiste obtained the personal identification information (PIl) of students from an employee of Miami-Dade County Public Schools. Claude and Jean-Baptiste used the students’ stolen identities to file false and fraudulent tax returns with the IRS to fraudulently obtain tax refunds for their personal use and benefit. Claude and his co-conspirators caused over $200,000 in false and fraudulent tax refund claims to be submitted to the IRS from 2009 through 2011 through his EFIN and PTIN.
James Jean-Baptiste was charged with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, seven counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and seven counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Jean-Baptiste remains at large.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
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.
Real Estate Developer Admits Diverting Money from Trenton Affordable Housing ProjectsRead the Press Release
TRENTON, N.J. – The developer of three Trenton affordable housing projects admitted today that he made false statements to a financial institution to divert project money for personal and other unauthorized purposes, and to conducting a transaction with the proceeds of this crime, U.S. Attorney Paul J. Fishman announced.
Robert Kahan, 68, of Sunny Isles Beach, Florida, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to two counts of an indictment charging him with making false statements in a loan application (Count 8) and to transacting in criminal proceeds that resulted from those false statements (Count 12).
According to documents filed in this case and statements made in court:
Between 2006 and 2009, Kahan was a developer of three affordable housing projects in Trenton – the Canal Plaza Homeownership Project, the Southwest Village II Project and the Catherine S. Graham Project – for which he obtained both private and public funding.
The Southwest Village II Project was a project to construct 52 affordable housing units. Kahan diverted substantial portions of the project’s financing from a $6,435,000 construction loan from Roma Bank to his own personal use, his other development projects and other uses that were outside of the project budget. In October 2008, Kahan diverted $343,354 of Southwest Village II project financing and applied it as a down payment to purchase a Florida condominium. In numerous payment applications made to the loan administrator for the project financing requesting advances of loan and subsidy money, Kahan falsely stated that all money that he was previously paid had been used to pay costs for labor, materials and other obligations for the Southwest Village II Project.
The count of making false statements in a loan application carries a maximum potential penalty of 30 years in prison and a $1 million fine. The charge of transacting in criminal proceeds carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Kahan has agreed to forfeit $989,901 in criminal proceeds. Sentencing is scheduled for Nov. 18, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Christina Scaringi, Special Agent in Charge, Northeast Region, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Eric Moran in Trenton and Senior Litigation Counsel Mark J. McCarren in Newark, both of the U.S. Attorney’s Office Special Prosecutions Division.
14-268Defense counsel: Scott Krasny Esq., West Trenton, New Jersey
Kahan, Robert Indictment
Pittsfield Man Pleads Guilty to Producing, Possessing Child PornographyDefendant Agrees to 40-50 Years in PrisonRead the Press Release
BOSTON - A Pittsfield man pleaded guilty today in federal court to producing and possessing child pornography.
Jason Gendron, 34, pleaded guilty to 16 counts of sexual exploitation of minors by producing child pornography and possessing child pornography.
Between May 13, 2011 and August 24, 2012, Gendron produced 16 files of child pornography, most of which were video files that depicted Gendron engaged in sexually explicit conduct with minor females, aged approximately two, three, eight, and 13-years-old. In addition, on July 16, 2013, Gendron possessed other files of child pornography.
Pursuant to a plea agreement, Gendron will be sentenced to between 40 to 50 years in prison, to be followed by 10 years of supervised release. Gendron has also agreed to pay restitution to the minor females depicted in the child pornography collection, and to forfeit his computer media. Gendron also faces a maximum $250,000 fine on each count.
United States Attorney Carmen M. Ortiz; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; Bruce M. Foucart, Special Agent in Charge of the Department of Homeland Security Investigations in Boston; and Michael Wynn, Chief of the Pittsfield Police Department made the announcement today. The case was investigated by the Massachusetts State Police, with assistance from Homeland Security Investigations and the Pittsfield Police Department. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Pittsburgh Man Sentenced for Conspiring to Distribute Heroin While on Federal Supervised ReleaseRead the Press Release
PITTSBURGH – Terrious Harper, of Pittsburgh, Pa., was sentenced to 84 months in prison for conspiring to distribute over 100 grams of heroin, United States Attorney David J. Hickton announced today.
Harper, 30, was sentenced in Pittsburgh by United States District Judge Nora Barry Fischer. Judge Fischer also imposed a four-year term of supervised release to follow the prison sentence.
At the time Harper was conspiring to distribute heroin, he was on federal supervised release following a prior prison sentence for being a convicted felon in possession of a firearm. Judge Fischer ordered that the prison sentence run consecutively to the 24-month prison sentence Harper received for violating the terms of his federal supervised release.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction and sentence in this case.
Physician Assistant and Certified Nursing Assistant Convicted in $200 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Miami convicted a physician assistant and a certified nursing assistant, both South Florida residents, for their participation in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health care company headquartered in Miami.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Reginald France of the Health and Human Services Office of Inspector General (HHS-OIG) region including all of Florida made the announcement.
Roger Bergman, 65, a physician assistant licensed in Florida, and Rodolfo Santaya, 55, a certified nursing assistant licensed in Florida, were each charged in an indictment on Jan. 28, 2014. Yesterday, Bergman was found guilty of conspiracy to commit health care fraud and wire fraud and conspiracy to make false statements relating to health care matters. Santaya was found guilty of conspiracy to commit health care fraud and wire fraud, conspiracy to pay and receive bribes and kickbacks, and two counts of receiving bribes and kickbacks in connection with a federal health care benefit program.
ATC, Medlink Professional Management Group Inc. – a management company associated with ATC – and multiple individuals, including ATC’s owners, have all previously pleaded guilty or have been convicted at trial in connection with the fraud scheme. ATC operated purported partial hospitalization programs (PHPs) in seven locations throughout Orlando and south Florida. A PHP is a form of intensive treatment for severe mental illness.
According to evidence presented at trial, Bergman, Santaya and their co-conspirators caused the submission of fraudulent claims to Medicare through ATC seeking reimbursement for mental health services that were not provided or were provided to patients who were not eligible to receive the services. Bergman, who worked at ATC’s Miami and Homestead, Florida, offices, created, falsified and signed fraudulent medical documentation to make it appear to Medicare that ATC’s patients qualified for, and received, PHP services, even though they did not. Santaya received hundreds of thousands of dollars in illegal kickback payments in exchange for delivering ineligible Medicare beneficiaries to ATC’s Homestead office.
Throughout the course of the conspiracy, ATC and its employees paid tens of millions of dollars in kickbacks in exchange for the names and identification numbers of Medicare beneficiaries so that ATC could fraudulently bill Medicare for PHP services that it never provided or that it purportedly provided to beneficiaries who were not eligible to receive PHP treatment.
The 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 Southern District of Florida. The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorneys Nicholas E. Surmacz and Kelly Graves of the Criminal Division.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .
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.
Palm Beach Resident Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that United States District Judge Jose E. Martinez sentenced Tia Lashonda Miller, 39, of West Palm Beach, to 70 months imprisonment, to be followed by 2 years of supervised release. .
Miller previously pled guilty to one count of unlawful possession of more than fifteen access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Miller was found in possession of notebooks containing stolen personal identifying information (PII) for 726 persons (including names, dates of birth and social security numbers), and 20 debit cards, eighteen of which were in the names of persons also found in the notebooks. The IRS determined that approximately 59 of the names and accompanying information were used to file fraudulent tax returns. During a court-authorized search of Miller’s home, agents found additional names and identifying information of identity theft victims, and some letters from the IRS addressed in other persons’ names. Miller admitted that she went to houses, collected mail and debit cards, and gave the envelopes and cards to two other individuals, whom Miller knew were filing fraudulent tax returns using the stolen PII.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Martin County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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.
PG&E Charged with Obstruction of the Investigation of the National Transportation Safety Board and Additional Violations of the Natural Gas Pipeline Safety ActRead the Press Release
SAN FRANCISCO – A federal grand jury for the Northern District of California returned a superseding indictment charging Pacific Gas and Electric Company (PG&E) with obstruction of the investigation of the National Transportation Safety Board (“NTSB”), as well as additional violations of the Natural Gas Pipeline Safety Act of 1968 (PSA), announced U.S. Attorney Melinda Haag, California Attorney General Kamala D. Harris, San Mateo County District Attorney Stephen M. Wagstaffe, U.S. Department of Transportation Office of Inspector General Special Agent in Charge William Swallow, and FBI Special Agent in Charge David J. Johnson.
The superseding indictment alleges that PG&E obstructed the NTSB’s investigation that began immediately after the deadly San Bruno explosion. According to the superseding indictment, during the course of the NTSB’s investigation, PG&E provided a version of a policy outlining the way in which PG&E addressed manufacturing threats on its pipelines. PG&E later withdrew that policy claiming it was produced in error, and was an unapproved draft. In fact, PG&E was operating under the so-called unapproved draft from 2009 through April 5, 2011. The consequence of this practice was that PG&E did not prioritize as high-risk, and properly assess, many of its oldest natural gas pipelines, which ran through urban and residential areas.Additionally, the superseding indictment charges PG&E with 27 counts of knowingly and willfully violating the PSA. These charges stem from PG&E’s record keeping and pipeline “integrity management” practices. The superseding indictment alleges that PG&E failed to address recordkeeping deficiencies concerning its larger natural gas pipelines knowing that their records were inaccurate or incomplete. The superseding indictment also alleges that PG&E failed to identify threats to its larger natural gas pipelines and that PG&E did not take appropriate actions to investigate the seriousness of threats to pipelines when they were identified. Finally, the superseding indictment alleges that PG&E failed to adequately reprioritize and assess threatened pipelines after the pipelines were over pressurized as required by the PSA and its regulations.
PG&E is charged with one count of obstruction of an agency proceeding in violation of 18 U.S.C. §1505, and 27 separate counts of violations of the PSA. The maximum statutory penalty for each count is a $500,000 fine or a fine based on the twice the gross gain PG&E made as a result of the violations, or twice the losses suffered by the victims. The superseding indictment alleges that PG&E derived gross gains of $281 million, and victims suffered losses of approximately $565 million. PG&E is next scheduled to appear on August 18, 2014 before the Honorable Thelton E. Henderson, United States District Judge.
Kim A. Berger and Hallie M. Hoffman are the Assistant U.S. Attorneys who are prosecuting the case, with the assistance of Alycee Lane and Pat Mahoney, along with Deputy Attorneys General Brett Morris and Deborah Halberstadt from the California Attorney General’s Office. The prosecution is the result of an investigation conducted by the San Mateo County District Attorney’s Office, the United States Department of Transportation Office of Inspector General, the FBI, the Pipeline and Hazardous Material Safety Administration, and the city of San Bruno Police Department.Please note, an indictment contains only allegations and, as with all defendants, PG&E must be presumed innocent unless and until proven guilty.
(PG&E superseding indictment )
Owner of Lone Wolf Outdoor Supplies in Calamas Is Sentenced After Pleading Guilty to Transfer of Unregistered Machine GunRead the Press Release
DAVENPORT, IA - On July 28, 2014, Larry Lee Brauer, age 63, from Calamus, Iowa, owner of Lone Wolf Outdoor Supplies was sentenced by United States District Court Judge John A. Jarvey to 14 months imprisonment, after pleading guilty to possession and transfer of an unregistered machine gun, announced United States Attorney Nicholas A. Klinefeldt. Brauer was also ordered to serve one year of supervised release following the term of imprisonment, pay a $5,000 fine, and pay $100 towards the Crime Victims Fund.
In September 2013, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents began an investigation of the potential ongoing possession of machine guns, silencers, and sawed off shotguns at Brauer’s business in Calamus, Iowa, and requested a National Firearms Act (NFA) check on Larry Brauer. An NFA check queries all registered NFA firearms through ATF, and the National Firearms Registration and Transfer Record (NFRTR), which is the central registry of all NFA firearms in the United States. The results of the check show no NFA firearms registered to Brauer.
By federal law, to possess an NFA firearm, it must be registered to the owner in this registration database. Machineguns, silencers, and sawed off shotguns are all NFA firearms which must be registered within the NFRTR. On October 19, 2013, law enforcement officers conducted a controlled purchase of a Norinco, MAK-90 machine gun from Brauer at Lone Wolf Outdoor Supplies. This firearm was later determined to be a functioning machine gun that was required to be registered under the NFA.
On November 13, 2013, law enforcement officers performed a search of Lone Wolf Outdoor Supplies and Brauer’s residence pursuant to federal search warrants. Officers found and seized an additional six sawed off shotguns, a firearm with a silencer, and a second machine gun. None of these firearms were properly registered as required by the NFA.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Davenport, Iowa, Police Department, the Clinton County Sheriff’s Office, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Owner of Home Health Agency Sentenced to Nearly Five Years for Bilking Medicare Out of $5 Million in Health Care Fraud SchemeRead the Press Release
LOS ANGELES – A registered nurse who operated GreatCare Home Health, Inc., a home health agency based in the Westlake district of Los Angeles, has been sentenced to 57 months in federal prison for orchestrating a $5 million Medicare fraud scheme involving kickbacks to doctors and patients who did not qualify for in-home health services provided by GreatCare.
Hee Jung Mun, who often used the name Angela Mun, 52, of Rancho Palos Verdes, was sentenced late yesterday by United States District Judge Dean D. Pregerson. In addition to the prison term, Judge Pregerson also ordered Mun to pay $5.144 million in restitution to Medicare.
As part of the investigation, authorities previously seized $1.2 million from bank accounts owned by Mun and GreatCare. Another federal judge ordered Mun to pay nearly $15 million to resolve a “whistleblower” lawsuit associated with the scheme (see: http://www.justice.gov/usao/cac/Pressroom/2013/116.html).
Mun pleaded guilty in 2012 and admitted orchestrating a three-year scheme to defraud Medicare. In her plea agreement, Mun admitted that she bilked Medicare out of millions by 1) paying illegal kickbacks to doctors and individuals known as “cappers” or “marketers” for patient referrals, and to patients themselves to sign up for home health services, 2) billing Medicare for patients who were not homebound or who otherwise did not quality for home health services, and 3) billing Medicare for services provided by unlicensed individuals or not provided at all.
The scheme targeted elderly, primarily Korean, Medicare beneficiaries. GreatCare was shut down by federal agents after the execution of a search warrant there in March 2011.
While Mun was the leader of the scheme, seven other defendants have been convicted in related cases for their roles in the Greatcare fraud:
shortly after Mun’s sentencing yesterday, Sang Whan Ahn, 60, of Koreatown, who recruited many of GreatCare’s Medicare beneficiaries in exchange for illegal kickbacks, was sentenced to four months in prison;
doctor Whan Sil Kim, also known as “Victoria,” 71, of Hancock Park, was sentenced to a year and a day in prison for receiving illegal kickbacks for health care referrals;
one of GreatCare’s nurses, Hwa Ja Kim, also known as “Helen,” 70, of Harbor City, was sentenced to 18 months in prison for signing off on patient evaluations and visits she did not do;
Yeong Ja Lee, 52, of Mid-City, one of the unlicensed individuals Greatcare used to see patients and create fake paperwork, was sentenced to 15 months in prison just last week;
physical therapist Seonweon Kim, 48, of Arcadia, is scheduled to be sentenced on October 6; and
GreatCare employee Jung Sook Lee, 53, of Koreatown is scheduled to be sentenced on October 20.
An eighth defendant in the case, Registered nurse Ji Hae Kim, 43, of Fullerton, is a fugitive.
“Home health scams and the payment of illegal kickbacks to physicians remain serious problems in the Los Angeles area, costing taxpayers millions of dollars,” said Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (OIG) Los Angeles Region. “Home health remains a top oversight priority for OIG, and we will continue to work with our law enforcement partners to aggressively investigate and prosecute anyone who engages in home health fraud.”
In a related “whistleblower” lawsuit brought by one of GreatCare’s former employees, two other GreatCare referring doctors, Dr. Dong Shin and Dr. Bo W. Paik, agreed to pay $217,810 and $530,000, respectively, to resolve allegations that they received cash payments and patient referrals in exchange for referring Medicare beneficiaries to GreatCare.
Dr. Kim has agreed to pay $1.088 million as a part of a consent judgment for her conduct, while Seonweon Kim has agreed to pay $205,000 to resolve his civil liability related to GreatCare.
The investigation into GreatCare was conducted by the Federal Bureau of Investigation and United States Department of Health and Human Services, Office of the Inspector General.
Release No. 14-098
Owner and Employee of Illegal Online Gambling Website Admit Conspiring with Genovese Organized Crime FamilyRead the Press Release
NEWARK, N.J. – Two Union County, New Jersey, men, including the owner of an illegal online sports betting website, today admitted to conspiring with the Genovese organized crime family, U.S. Attorney Paul J. Fishman announced.
Joseph Graziano, 77, and Dominick J. Barone, 44, both of Springfield, New Jersey, each pleaded guilty before District Judge Claire C. Cecchi in Newark federal court to separate informations charging them with one count of racketeering conspiracy. Graziano agreed to forfeit $1 million to the United States and Barone agreed to forfeit $100,000.
According to documents filed in this case and statements made in court:
Graziano was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Barone worked with Graziano in carrying out the daily activities of the website and both men conspired with the Genovese Crime Family of La Cosa Nostra in the operation of Beteagle.Joseph Lascala, 80, of Monroe, New Jersey, was the alleged “capo” and a made member of the Genovese family operating in northern New Jersey. He directed the criminal activities of a smaller group of associates, referred to as a crew, whose activities included illegal gambling and the collection of unlawful debt.
This organized crime crew and Graziano and Barone joined forces to allow traditional organized crime members and associates to use the Internet and current technology to conduct traditional organized crime by engaging in and profiting from illegal sports betting through the website. Associates of the crew were given access to Beteagle and were considered “agents.” Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” or bookies, under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Associates of the crew paid out winnings or collected losses in person. If a bettor failed to pay his gambling losses, the crew used their LCN status and threats of violence to collect on these debts.
The agent or sub-agent paid a fee to the website for each bettor added to a package. Barone and others made weekly collections of cash in furtherance of the scheme.
The count of racketeering conspiracy carries a maximum potential punishment of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Barone is scheduled for Nov. 12, 2014, and for Graziano, Nov. 18, 2014.
To date, John Breheney, a/k/a “Johnny Fugazi, Fu, Johnny Fu,” 49, and Salvatore Turchio, 48, both of Little Egg Harbor, New Jersey; Patsy Pirozzi, a/k/a “Uncle Patsy,” 75, of Suffern, New York; and José Gotay, 76, New Milford, New Jersey, have pleaded guilty to their respective roles in this racketeering conspiracy and await sentencing.
As to the remaining defendants, the charges and allegations contained in a criminal complaint sworn in May 2012 are merely accusations and they are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Serina M. Vash and Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel:
Graziano: Lawrence S. Lustberg Esq., Newark
Barone: John C. Whipple Esq. Morristown, New JerseyGraziano, Joseph Information
Barone, Dominick InformationOrlando Man Sentenced to More Than 6 Years in Federal Prison and Ordered to Pay $25,000 Fine for Receiving Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Timothy Beaver (49, Orlando) to 6 years and 6 months in federal prison for receipt of child pornography. The Court also ordered Beaver to pay a $25,000 fine, to forfeit the computer equipment that he used to commit the offense, and to serve a life term of supervised release, following his release from prison. Beaver pleaded guilty on March 5, 2014.
According to court documents, Beaver used a file-sharing program and the Internet to download about 14,500 images and 300 videos depicting the sexual abuse and exploitation of mostly prepubescent boys for at least seven years. Beaver also purchased DVD recordings of child pornography from a Canadian website that was subsequently seized by law enforcement authorities.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Karen L. Gable.
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.
Ohio Woman Admits Creating Fictitious Evidence to Obstruct A Federal InvestigationRead the Press Release
NEWARK, N.J. - An Ohio woman who claimed she investigates labor unions on behalf of attorneys admitted her role today in impeding a federal investigation, U.S. Attorney Paul J. Fishman announced.
Debbie Shank Morgan, 57, of Euclid, Ohio, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to obstruction of justice.
According to documents filed in this case and statements made in court:
In May 2012, Morgan contacted federal agents from the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL-OIG) in New Jersey, a law enforcement agency that investigates allegations related to federal crimes, such as bribery and theft, involving labor unions, union officers, and employee benefit plans.
Morgan said she was a non-practicing lawyer who investigates crimes associated with labor unions, employee benefit plans and other alleged violations of federal criminal and civil law. Morgan said she had information that a former union officer and his father, both from an international labor union, had committed serious violations of federal law. She alleged they had embezzled $30 million from a political action committee (PAC) associated with the union.
Morgan provided federal agents with e-mails and other documents and items as evidence. She had, in fact, falsified, altered and created these items. For example, Morgan provided federal agents with e-mails she claimed were evidence in support of her allegations. Federal agents then obtained a court-authorized search warrant and seized the actual e-mails transmitted through the service provider. The e-mails from the search warrant demonstrated that she had altered and fabricated the e-mails before giving them to federal agents. In addition, in September 2012, she claimed that an unknown individual had fired a weapon at her car while she was driving it in Ohio. Morgan then provided federal agents with two digital recordings, allegedly with the wife of the alleged shooter. In these consensual recordings, the wife admitted that her husband had fired a weapon at Morgan’s car. The recordings, however, were fabricated and created by Morgan and an unknown third party.
The obstruction count to which Morgan pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 6, 2014.
U.S. Attorney Fishman credited special agents of the U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Region, under the direction of Special Agent in Charge Cheryl Garcia, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Jack A. Meyerson Esq., Philadelphia
Morgan, Debbie Shank Information
Miami-Dade County Resident Sentenced in Stolen Identity Tax Refund Scheme Involving Thousands of Individuals’ Personal Identifying InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Paul Evans Auguste, 30, of Miami, was sentenced today to 61 months in prison, to be followed by three years of supervised release for his participation in a stolen identity tax refund scheme.
Auguste previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, beginning on approximately September 30, 2013, Auguste began advertising to friends and acquaintances that he had personal identifying information (PII) for sale, that is, stolen names, dates of birth, and social security numbers belonging to real individuals. On December 9, 2013, Auguste sold PII belonging to 200 different individuals to an undercover law enforcement officer for $2,000. The PII sold by the defendant consisted of patient information sheets from rehabilitation center in Philadelphia.
Court documents also state that on January 6, 2014, the defendant sold an additional 60 pieces of PII to an undercover law enforcement officer for $500. During that exchange, the defendant stated that he was opening a “tax” office and needed money; the defendant reiterated that he obtained the PII from Philadelphia and offered to sell another 200 pieces of PII for $1,000.
According to court documents, on January 28, 2014, law enforcement executed a search warrant of the defendant’s residence and discovered an additional 2,164 pieces of PII (702 of which were in his car, which the defendant was driving on his way to another controlled sale to law enforcement, and the remaining 1,462 of which were found in the defendant’s room).
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Francisco 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.
Mescalero Apache Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Sheridan Gerard Lester, 24 was sentenced in federal court in Las Cruces, N.M., this afternoon to 21 months in federal prison followed by three years of supervised release for his assault conviction.
Lester, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., was arrested in Aug. 2013, on a criminal complaint alleging assault with a dangerous weapon and assault resulting in serious bodily injury. On Jan. 28, 2014, Lester entered a guilty plea to a felony information charging him with assault resulting in serious bodily injury and admitted assaulting another Mescalero Apache man on Nov. 27, 2012, at a location within the Mescalero Apache Reservation.
According to court filings, Lester assaulted the victim on Nov. 27, 2012, at Lester’s residence, which is located within the Mescalero Apache Reservation. Lester was intoxicated when he began quarreling with the victim and began attacking the victim with his fists. In entering his guilty plea, Lester admitted intentionally striking the victim about the body and in the face, causing the victim to suffer serious injuries.
Lester was in tribal custody for 302 days based on a tribal conviction related to the assault charged in the federal case before he was transferred to federal custody. Lester will receive credit for the 302 days spent in tribal custody.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U .S. Attorney’s Las Cruces Branch Office.
Mescalero Apache Man Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Gabriel Gene Ortega, 34, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this morning for his methamphetamine trafficking conviction. Ortega was sentenced to 41 months in federal prison to be followed by three years of supervised release.
Ortega was arrested on Dec. 7, 2012, based on a criminal complaint charging him with the manufacture and distribution of methamphetamine. On April 18, 2013, Ortega pled guilty to a felony information charging him with manufacturing and distributing methamphetamine in the Mescalero Apache Reservation in Otero County, N.M., between Aug. 1, 2011 and Aug. 8, 2012.
Court filings reflect that Ortega was charged based on evidence developed by a BIA investigation. As part of that investigation, the BIA executed a federal search warrant at Ortega’s residence on Aug. 8, 2012, and seized chemicals, equipment and items associated with the manufacturing of methamphetamine. The BIA also seized a vial containing methamphetamine.
In entering his guilty plea, Ortega admitted that he had been involved in the manufacturing and distribution of methamphetamine for a year preceding the execution of the search warrant.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services with assistance from the Las Cruces office of the FBI, the Ruidoso Police Department and the New Mexico State Police. Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Mentor Man Indicted for Selling Drugs Not Approved by the FDARead the Press Release
A Mentor man was indicted for marketing and selling at least $220,000 worth of suntan and/or erectile dysfunction drugs that were not approved by the Food and Drug Administration, said Steven M. Dettelbach, United States Attorney for the Northern District.
Timothy J. Parr, 31, was indicted in federal court on one count to distributing misbranded drugs.
“These regulations are mandated to ensure drugs made available to the public are safe and have been properly tested,” Dettelbach said. “This defendant ignored those regulations in an effort to make money.”
“Today’s announcement demonstrates the continued commitment of FDA's Office of Criminal Investigations to aggressively pursue those who distribute unapproved and misbranded drugs,” said Special Agent in Charge Antoinette V. Henry of FDA’s Office of Criminal Investigations. “We will remain vigilant in our efforts to protect consumers from these potentially dangerous products.”
Parr formed U.S. Lab Research, Inc., and later, U.S. Lab Exports, Inc., which he operated from his home. The businesses existed to market and sell drugs over the Internet which had not been approved by the FDA, according to the indictment.
Parr, through U.S. Lab Research, Inc., and later, U.S. Lab Exports, Inc., sold injectable peptide drug products and injection aids to consumers over various web sites. These products included Melanotan I, Melanotan II and Bremalanotide, which were unapproved injectable drugs. Melanotan I and Melanotan II were marketed as producing the equivalent of a sun tan while Bremalanotide was known to cause erections in male subjects, according to the indictment.
From 2008 through December 2010, Parr sold approximately $220,000 in misbranded drugs, according to the indictment.
Parr, through his companies, marketed the drugs as “for research only” and “not for human use,” which he did to avoid FDA scrutiny.” He also labeled containers as “sun screen” to avoid scrutiny, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by the FDA’s Office of Criminal Investigations.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mason City Man Charged with Meth ConspiracyRead the Press Release
Peoria, Ill. – A Mason City, Ill., man, Teddy Lee, Jr., 25, of the 400 block of S. Keefer Street, is scheduled to appear in federal court in Peoria on Aug. 6, 2014, to face charges returned by a federal grand jury last week, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. The three-count indictment charges Lee with conspiracy to manufacture methamphetamine, possession of a firearm by a felon, and possession of a stolen firearm.
The indictment alleges that from the summer of 2013 to the present, Lee conspired with others to manufacture methamphetamine, that he possessed a firearm as a felon, and that he possessed a stolen firearm. The conspiracy allegedly involved more than 50 grams of a mixture and substance containing a detectable amount of methamphetamine.If convicted, the statutory maximum penalty for conspiracy to manufacture methamphetamine is life in prison, and a fine of up to $4,000,000. The maximum penalty for the offenses of felon in possession of a firearm and possession of a stolen firearm is 10 years in prison and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney K. Tate Chambers. The charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mason County Sheriff’s Office, the Tazewell County Sheriff’s Office, and the Pekin Police Department.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
# # # #Man Faces Five Years in Federal Prison in “Swatting” CaseRead the Press Release
DALLAS — Jason Allen Neff, 33, pleaded guilty today to federal charges in a “swatting” case, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Swatting refers to falsely reporting an emergency to a police department to cause a Special Weapons and Tactics (SWAT) response to a physical address, or making a false report to elicit an emergency response by other first responders to a specific physical address.
Neff, also known as “Crazy J,” is from Omaha, Nebraska, although he was living in Jackson, Missouri when he was arrested. Neff pleaded guilty to one count of aiding and abetting the conspiracy to use access devices to modify telecommunications instruments and to make unauthorized access to protected telecommunications computers and one count of obstruction by retaliating against a witness, victim or informant. If the Court accepts the terms of the plea agreement, the parties have agreed that a specific sentence of 60 months in federal prison is the appropriate sentence for the obstruction conviction, and it should run concurrently to any sentence imposed for the other count of conviction. Neff, who remains in custody, is scheduled to be sentenced on December 1, 2014, by U.S. District Judge Sam A. Lindsay.
According to documents filed in the case, Neff, along with previously charged and convicted co-conspirators Guadalupe Martinez, Stuart Rosoff, Jason Trowbridge, Chad Ward, Matthew Weigman, Angela Roberson and others,* were members of, and participated in, telephone chat/party lines in which they made, or facilitated the making of, swatting 911 calls. They concealed the true caller ID and made false reports of violent crimes to elicit a police SWAT response to the targeted members of the telephone chat/party line, their family members, and associated persons.
Neff participated in multiple telephone party line chat groups (party lines) that conspirators and thousands of other callers frequented. Participants in these party lines generally used pseudonyms or nicknames to protect their identities, and they would often be rude and obnoxious to antagonize other party line participants, other conspirators and their families.
Neff, along with Martinez, Rosoff and Weigman, according to the indictment, were “phone phreakers,” using social engineering or subterfuge to acquire sensitive information from telephone service providers. That sensitive information enabled them to exploit telephone network computer service by obtaining subscriber information; altering billing information and service plans; redirecting, changing service charges, and discontinuing telephone service; monitoring or taping telephone lines; and obtaining telephone company security policies and procedures.
In May 2006, Neff obtained publicly available voter information about another party line member and provided it to co-conspirator Roberson so she could repeat the information in the party line. Neff knew the information could be used for harassment.
A few days later, Neff obtained identifying information about another party line member with whom co-conspirator Roberson was upset. Neff listened in on a three-way phone call made from a private room on the party line where co-conspirator Rosoff used information that Roberson provided in order to social engineer an SBC employee and obtain the caller’s current phone number and address. That information was verified and used to prompt a neighbor of the caller to respond to a false request for assistance.
In January 2007, Neff confronted a party line member, “SP,” about her providing misleading and inaccurate information to the FBI regarding his ownership of a party-line related website, which he did not own, and his being a member of the group that had previously swatted her. Neff threatened her on the party line, stating, “snitches get stitches.” Neff made the threats to intimidate SP and to retaliate against her for providing information about him to the FBI.
The FBI investigated the case. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
*Martinez sentenced in March 2008 to 30 months; Rosoff sentenced in May 2008 to 60 months; Trowbridge sentenced in May 2008 to 60 months; Ward sentenced in May 2008 to 60 months; Weigman sentenced in June 2009 to 135 months; and Roberson sentenced in July 2008 to 30 months.
Lewiston Man Sentenced to 25 Years for Sexual Exploitation of a ChildRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Derek
Hinkley, a/k/a “Ethan Hinkley,”30, of Lewiston, Maine, and formerly of Strong, was
sentenced yesterday in U.S District Court by Judge Nancy Torresen to 25 years in prison and
supervised release for life for sexual exploitation of a child. Hinkley pled guilty on January 30,
2014.On July 17, 2012, Hinkley invited two boys, ages 12 and 15, to spend the night at his
apartment telling the boys that he was 18 years old. Upon arrival at his apartment, Hinkley used
a laptop computer to show them pornography and then, brandishing a knife, forced both to
masturbate and play with a sex toy. On July 18, 2012, shortly after midnight, Hinkley used a
webcam on his computer to capture and disseminate live over the internet on a social media
website the image of the older boy masturbating at knifepoint. On July 19, 2012, Hinkley’s
apartment was searched and detectives seized the computer and the sex toy. A forensic analysis
of the computer revealed that Hinkley used the social media website at the same time reported by
the victims. On July 20, 2012, Hinkley confessed to committing the crime.The charge required imposition of a mandatory minimum 15 year term in prison. In
imposing sentence, Judge Torresen said: "You do have a very serious problem and I can't be
comfortable that others will be protected unless I give you a very serious sentence."The investigation was conducted by the Lewiston Police Department and U.S.
Immigration and Customs Enforcement’s Homeland Security Investigations.Leader of Heroin Trafficking Ring Sentenced to 34 Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Cornell Clisby, 46, of Cincinnati, who led a heroin trafficking conspiracy in the greater Cincinnati area, was sentenced in U.S. District Court on July 27 to 408 months’ imprisonment. Five other members of the conspiracy, including Cornel Clisby’s ex-wife, have also been sentenced.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, James V. Allen, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), the Ohio Bureau of Criminal Investigation, and the Drug Abuse Resistance Task Force (DART), announced the sentences imposed by U.S. District Judge Michael R. Barrett.
A federal grand jury indicted Cornell Clisby and six others in October 2012 following a year-long investigation. All the defendants pleaded guilty to one count of conspiracy to possess with intent to distribute more than one kilogram of heroin. Others charged are:
Dorothy Clisby, 46, Cincinnati, who was sentenced to 100 months in prison.
Dwayne Williams, 47, Fairburn, Georgia, was sentenced to 120 months in prison.
Michael Williams, 35, Cincinnati, was sentenced to 57 months in prison.
Allen Carnes, 45, Cincinnati, was sentenced to 210 months in prison.
Marcus Gentry, 42, Florence, Kentucky, was sentenced today to 48 months in prison.
Anthony Anderson, 47, Columbus, Ohio, is scheduled for sentencing on July 30.All seven were arrested following their indictment and all except for Dorothy Clisby have been in custody since their arrest.
Beginning in 2011, DEA agents and investigators with DART identified several houses in the Cincinnati and Lincoln Heights area that Clisby and the co-conspirators used as “stash houses” to prepare and distribute heroin throughout the greater Cincinnati area. In court documents filed with Clisby’s plea, he admitted that he organized and led the distribution process. He also admitted that he was responsible for obtaining the heroin.
The court concluded that Clisby is a career offender who merits a lengthy sentence. Clisby previously served nine years on a federal narcotics trafficking conviction. The court also noted that Clisby was on parole for a state narcotics trafficking conviction at the time he committed the most recent crime.
“The illegal trade in drugs has done nothing but destroy inner city neighborhoods, damage the very foundations of the families who live there and stunt the legitimate community activity that might otherwise occur there,” Assistant U.S. Attorney Karl Kadon told the court prior to the sentencing hearings. “It is inherently violent, cancerously pervasive, and contributes nothing.”
U.S. Attorney Stewart commended the investigation by the DEA and agencies participating in the DEA Task Force, DART, Ohio BCI and the New York office of the DEA, who assisted in the investigation. He also recognized Assistant U.S. Attorney Karl Kadon, who represented the United States in the case.
###Leader of Drug Trafficking Organization Pleads GuiltyRead the Press Release
JOHNSTOWN, Pa. - A Detroit resident pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Kenneth Irving Carter, 34, of Detroit, Michigan, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from the spring of 2011 to May 15, 2012, Carter, along with 14 co-defendants, conspired to distribute and possess with intent to distribute more than one kilogram of heroin. In addition to his plea of guilty to the heroin trafficking charge, Carter also accepted responsibility for conspiring to distribute and possess with the intent to distribute approximately 8,000 Opana pills.
Carter, as the leader of this multi-member drug trafficking organization, orchestrated and directed the movement of the heroin from Detroit to locations in Johnstown and Blairsville for ultimate sale by various members of his drug trafficking network. In addition to his leadership role in his drug organization, Carter employed threats of violence and the actual use of violence in managing his subordinate co-defendants.
Judge Gibson scheduled sentencing for Jan. 15, 2015, at 10 a.m. The law provides for a maximum total sentence of life in prison and a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation that led to the prosecution of Carter. Other agencies participating in this investigation included the Pennsylvania Attorney General's Office, the Cambria County Drug Task Force, the Cambria County Sheriff's Department, the Cambria County District Attorney's Office, the Indiana County Drug Task Force, and the Indiana County District Attorney's Office.
Las Vegas Street Gang Member Pleads Guilty to Racketeering and Drug ChargesRead the Press Release
On the second day of his federal jury trial, a Las Vegas Playboy Bloods street gang member pleaded guilty today to racketeering and drug charges, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division.
“We will use federal resources to prosecute street gang members who commit cowardly and horrible crimes in our community,” said U.S. Attorney Bogden. “I commend the many law enforcement officers who worked on this investigation and assisted us in ensuring a conviction in this case.”
Markette Tillman, 31, pleaded guilty to one count of RICO conspiracy and one count of possession with intent to distribute cocaine base, and is scheduled to be sentenced by U.S. District Judge Kent J. Dawson on Oct. 28, 2014. Tillman faces up to 20 years in prison on each count, as well as fines of up to $1 million. The jury trial began yesterday, July 28, 2014, and the government had called seven witnesses to testify. Tillman is the remaining gang member to be convicted out of 10 charged in a RICO indictment filed in 2008.
According to the guilty plea agreement and evidence produced at trial, the Bloods are a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence. The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area. The Playboy Bloods operate primarily in the Sherman Gardens Annex, a public housing complex, located at the corner of Doolittle and H Streets in Las Vegas, and commonly called the “Jets.” On or about Jan. 20, 2004, Tillman aided and abetted the murder of a security guard at the Jets. The guard approached Tillman and several other Playboy Bloods and told them to leave the property. An argument ensued, and the guard rode away on his bicycle to get help. One of the Playboy Bloods fired a gun at the guard, hitting him two times and killing him. Tillman admitted that he aided and abetted the murder of the guard and acted deliberately and intentionally with extreme disregard for human life. Tillman further admitted that he agreed with other members of the Playboy Bloods to manufacture and distribute narcotics, primarily crack cocaine, and to operate drug houses within the Playboy Bloods’ turf. Tillman specifically admitted to distributing in excess of 280 grams of crack cocaine. Tillman also admitted that he distributed crack cocaine to another person on about Jan. 3, 2007, at one of the drug houses.
Nine other defendants who have been convicted and sentenced, as follows:· Jacorey Taylor, aka “Mo-B,” 31, convicted by a jury of engaging in a racketeering conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, participating in a drug conspiracy, and possessing crack cocaine with the intent to distribute and sentenced to life in prison Oct. 21, 12013.
· Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy involving two murders and was sentenced to 20 years in prison on April 10, 2013
· Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy involving one murder and was sentenced to 20 years in prison on April 9, 2013
· Demichael Burks, aka “Mikey P,” 29, pleaded guilty to RICO conspiracy and was sentenced to 6½ years in prison on Dec. 3, 2010
· Anthony Mabry, aka “Akim Slim,” 43, pleaded guilty to RICO conspiracy and was sentenced to 14 years in prison on Oct. 20, 2010
· Delvin Ward, aka “D-Luv,” 37, pleaded guilty to RICO conspiracy and was sentenced to 11 years in prison on Sept. 17, 2010
· Terrence Thomas, aka “Seven,” 40, pleaded guilty to drug conspiracy and was sentenced to 10 years in prison on June 16, 2010
· Sebastian Wigg, aka “Rock,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
· Fred Nix, aka “June P,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
The cases were investigated by the FBI’s Las Vegas Safe Streets Gang Task Force, which includes officers from the North Las Vegas Police Department and Las Vegas Metropolitan Police Department, and are being prosecuted by Assistant United States Attorneys Nicholas D. Dickinson and Phillip N. Smith, Jr., and Kevin L. Rosenberg, Trial Attorney with the U.S. Department of Justice Organized Crime and Gang Section.
Las Vegas Street Gang Member Pleads Guilty to Racketeering and Drug ChargesRead the Press Release
LAS VEGAS, Nev. On the second day of his federal jury trial, a Las Vegas Playboy Bloods street gang member pleaded guilty to racketeering and drug charges, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division.
“We will use federal resources to prosecute street gang members who commit cowardly and horrible crimes in our community,” said U.S. Attorney Bogden. “I commend the many law enforcement officers who worked on this investigation and assisted us in ensuring a conviction in this case.”
Markette Tillman, 31, pleaded guilty to one count of RICO conspiracy and one count of possession with intent to distribute cocaine base, and is scheduled to be sentenced by U.S. District Judge Kent J. Dawson on Oct. 28, 2014. Tillman faces up to 20 years in prison on each count, as well as fines of up to $1 million. The jury trial began yesterday, July 28, 2014, and the government had called seven witnesses to testify. Tillman is the remaining gang member to be convicted out of 10 charged in a RICO indictment filed in 2008.
According to the guilty plea agreement and evidence produced at trial, the Bloods are a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence. The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area. The Playboy Bloods operate primarily in the Sherman Gardens Annex, a public housing complex, located at the corner of Doolittle and H Streets in Las Vegas, and commonly called the “Jets.” On or about Jan. 20, 2004, Tillman aided and abetted the murder of a security guard at the Jets. The guard approached Tillman and several other Playboy Bloods and told them to leave the property. An argument ensued, and the guard rode away on his bicycle to get help. One of the Playboy Bloods fired a gun at the guard, hitting him two times and killing him. Tillman admitted that he aided and abetted the murder of the guard and acted deliberately and intentionally with extreme disregard for human life. Tillman further admitted that he agreed with other members of the Playboy Bloods to manufacture and distribute narcotics, primarily crack cocaine, and to operate drug houses within the Playboy Bloods’ turf. Tillman specifically admitted to distributing in excess of 280 grams of crack cocaine. Tillman also admitted that he distributed crack cocaine to another person on about Jan. 3, 2007, at one of the drug houses.
Nine other defendants who have been convicted and sentenced, as follows:
- Jacorey Taylor, aka “Mo-B,” 31, convicted by a jury of engaging in a racketeering conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, participating in a drug conspiracy, and possessing crack cocaine with the intent to distribute and sentenced to life in prison Oct. 21, 12013.
- Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy involving two murders and was sentenced to 20 years in prison on April 10, 2013
- Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy involving one murder and was sentenced to 20 years in prison on April 9, 2013
- Demichael Burks, aka “Mikey P,” 29, pleaded guilty to RICO conspiracy and was sentenced to 6½ years in prison on Dec. 3, 2010
- Anthony Mabry, aka “Akim Slim,” 43, pleaded guilty to RICO conspiracy and was sentenced to 14 years in prison on Oct. 20, 2010
- Delvin Ward, aka “D-Luv,” 37, pleaded guilty to RICO conspiracy and was sentenced to 11 years in prison on Sept. 17, 2010
- Terrence Thomas, aka “Seven,” 40, pleaded guilty to drug conspiracy and was sentenced to 10 years in prison on June 16, 2010
- Sebastian Wigg, aka “Rock,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
- Fred Nix, aka “June P,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
KC Man Charged with Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with the robbery of Commerce Bank.
David E. Clark, 35, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s complaint alleges that Clark stole $3,037 from Commerce Bank, 118 W. 47th Street, Kansas City, Mo., on Monday, July 28, 2014.
According to an affidavit filed in support of the federal criminal complaint, Clark entered the bank at about 1:25 p.m. He walked to a teller station, the affidavit says, and grabbed a note from his pocket. The teller refused to look at the note and asked if Clark needed help. Clark allegedly told the teller to pull out his drawers. When the teller told Clark his teller drawers were locked, the affidavit says, Clark instructed him to get the keys. As the teller turned to get the keys, Clark told him not to move and reached back into his pocket. According to the affidavit, the teller was frightened because he believed Clark might be reaching for a gun. Clark allegedly told the teller to “give me 100’s, 50’s and 20’s.” The teller grabbed the money from his teller drawer and gave it to him.
According to the affidavit, Clark walked swiftly out of the bank’s front door then ran up Wyandotte Street. Another bank employee saw Clark exit a parking garage in a white truck. At about 1:56 p.m., Clark’s vehicle was spotted by Kansas City police officers. Clark was arrested after a car chase and utilization of their K9 unit dog.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the FBI and the Kansas City, Mo., Police Department.Justice Department Files Lawsuit Alleging Sex Discrimination Against the Commonwealth of Pennsylvania and the Pennsylvania State PoliceRead the Press Release
The Justice Department announced the filing of a lawsuit today against the Commonwealth of Pennsylvania and the Pennsylvania State Police, alleging that the defendants are engaged in a pattern or practice of employment discrimination against women in violation of Title VII of the Civil Rights Act of 1964. Specifically, the lawsuit challenges the state police’s use of two physical fitness tests to screen and select entry-level state troopers.
The complaint, filed in the U.S. District Court for the Middle District of Pennsylvania, alleges that the physical fitness tests used by the state police between 2003 and the present excluded qualified women from consideration for hire as entry-level state troopers by testing for physical skills that are not required to perform the job. The department also alleges that, during the relevant time period, the defendants’ use of physical fitness tests as part of a multi-step employment selection process disproportionately screened out female applicants, resulting in a disparate impact against those applicants.
Title VII prohibits both intentional discrimination on the basis of race, color, sex, national origin and religion as well as employment practices that result in a disparate impact upon a protected group, unless the practices are job-related and consistent with business necessity. The department alleges that the defendants’ use of the challenged physical fitness tests violates Title VII because that use does not meet this standard and does not identify the best qualified applicants for entry-level state trooper jobs.
“The Department of Justice is deeply committed to eliminating artificial barriers that keep qualified women out of public safety work,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to challenge discriminatory hiring practices that unnecessarily exclude qualified applicants on account of sex.”
In the lawsuit, the department seeks a court order that would require the Pennsylvania State Police to stop using the challenged physical fitness tests, develop hiring procedures that comply with Title VII and provide make-whole relief, including offers of hire, retroactive seniority, and back pay to individual women who have been harmed as a result of the defendants’ use of the challenged physical fitness tests.
Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt/.
Related Materials:
Complaint
Jasper County Man Sentenced to 168 Months in Prison on Child Pornography ChargesRead the Press Release
DES MOINES, IA – Arleigh Joe Esqueda, age 35, of Newton was sentenced to 168 months in prison on federal child pornography charges in U.S. District Court for the Southern District of Iowa on July 28, 2014, announced United States Attorney Nicholas A. Klinefeldt. Esqueda was also ordered to serve eight years of supervised release after imprisonment and to pay $100 to the Crime Victims Fund.
Esqueda pled guilty to knowingly possessing child pornography that included images of a prepubescent child or children under 12.
The sentence imposed on Esqueda was based, in part, on Esqueda’s criminal history and the nature of the offense. According to court documents, Esqueda had over 10 previous state-court convictions for various crimes, including one prior sex offense when he was 17. His collection of child pornography was accumulated over approximately 5 years, and he had 351 images and 77 videos of child pornography on his computer when he was caught by law enforcement officers in 2013.
The case was investigated by law enforcement agents with Homeland Security Investigations, and prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Jamaican Native Sentenced for Passport FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Christopher Brown, 30, a native of Jamaica, who was convicted of making a false statement in connection with an application for a United States Passport, was sentenced to a time-served (six months) by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that in March 2012, Brown submitted an application for a U.S. Passport with the United States Department of State. On the application, the defendant falsely claimed that his name was Torey Khalif Murray and that he was born in Brooklyn, New York. In fact, the investigation revealed that his real name was Christopher Brown and that he had been born in Jamaica.
The sentencing is the culmination of an investigation on the part of United States Department of State, Diplomatic Security Service, under the direction of Buffalo, New York Resident Agent in Charge William P. Ferrari.