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16 September 2014
Elyria Man Faces Likely 20-Year Prison Sentence for Dealing Heroin and Fentanyl That Caused Fatal OverdoseRead the Press Release
An Elyria man faces a likely sentence of 20 years in prison after pleading guilty to distributing heroin and fentanyl, including fentanyl that caused the death of an Elyria resident last year, law enforcement officials said.
The guilty plea was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Ohio Attorney General Mike DeWine, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, and Elyria Police Chief Duane Whitely.
Siarres R. Noble, age 29, pleaded guilty to four counts of distribution of fentanyl, two counts of distribution of heroin and one count of possession with intent to distribute fentanyl.
Noble’s plea agreement calls for a recommended sentence of 20 years in federal prison. He is scheduled to be sentenced Dec. 17.
Noble admitted selling heroin and fentanyl at various times in March and November 2013, including fentanyl that he sold on November 8, 2013, which resulted in the death of an Elyria resident one day later.
“The drugs sold by this defendant killed a woman,” Dettelbach said. “Heroin and fentanyl use leads to death, destroys lives and damages families. This should send a clear message to drug dealers who are doing nothing more than selling poison, that we in law enforcement will work death and overdose cases back from the victims, identify who supplied them the drugs and hold them accountable for their actions.”
“State, local and federal authorities are taking the opiate epidemic very seriously, and drug dealers need to know that they will be held accountable for overdose deaths,” said Attorney General DeWine. “Not only are these dealers putting the lives of those they sell to at risk, but they are also putting themselves at risk of being locked up for decades in prison.”
“Information about heroin and other dangerous illegal drugs has become too common place in our daily news reports,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The partnership between law enforcement, social services and the community must continue in order to further attempts to rid our territory of these highly addictive substances.”
Elyria Police Chief Duane Whitely said: “There is a serious drug problem in this country and it is important that law enforcement at every level take the steps necessary to combat the sales of illegal drugs. Sadly, in this case, the sale of drugs led to someone’s death. The weapon used may not have been a gun, but it is just as deadly.
“I want to thank everyone involved in this case for the effort they put into it. Starting with the response from Elyria Police Investigative Unit for responding so quickly to the spike in overdoses that led to the arrest of Siarres Noble for selling the drugs that led to the death. I appreciate the great working relationship with have with the FBI and the U.S. Attorney’s office. It is the strong working relationship between all of these agencies that led to the federal conviction of Siarres Noble,” Whitely said.
This case was investigated by the Elyria Police Department and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Robert F. Corts and Vasile C. Katsaros and Special Assistant United States Attorney Margaret Tomaro of the Ohio Attorney General’s Office.
Elizabethton Man Sentenced to 188 Months in Prison for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Eullis Monroe Goodwin, 40, of Elizabethton, Tenn., was sentenced on Sept. 15, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 188 months in federal prison. Goodwin pleaded guilty to conspiracy to distribute crack cocaine in April 2014.
Beginning in 2012, law enforcement began investigating a large-scale crack cocaine conspiracy originating out of Atlanta, Ga. As part of the conspiracy, numerous individuals trafficked kilogram quantities of powder cocaine to Johnson City. To transport and distribute the drugs, coconspirators used a series of rental cars procured in Georgia. Upon arrival in Johnson City, the drugs were manufactured into crack cocaine and then distributed throughout the area. Goodwin was one of those distributors, dealing in multi-ounce quantities. The resulting drug sale proceeds were subsequently used to procure additional powder cocaine and repeat the cycle of distribution.
This conspiracy involved multiple individuals. Coconspirators who have already been convicted and sentenced include: Tavares Lashaun Dalton, 36, of Covington, Ga., 240 months; Marcus Lavoya Holliman, 36, of Atlanta, Ga., 210 months; Micah Antwan Still, 34, of Covington, Ga., 120 months; Derrick Henry Connor, 40, of Sherills Ford, N.C., 120 months; Devin Deonte Blalock, 20, of Jonesboro, Ga., 120 months; Kwanza Tarveze Worthy, age 20, of Atlanta, Ga., 120 months; Don Juan Glass, Jr., 22, of Atlanta, Ga., 120 months; Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn., 120 months; Demario Jenard Serchion, 29, of Atlanta, Ga., 77 months; and Cody Alan Sherrill, 22, of Jonesborough, Tenn., 41 months. Three more have been convicted and are awaiting sentencing in Greeneville. Others are still awaiting prosecution.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department; First Judicial District Drug Task Force; and Drug Enforcement Administration. Assistant United States Attorney Nick Regalia represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Detroit-Area Doctor Admits to Providing Medically Unnecessary Chemotherapy to PatientsRead the Press Release
A Detroit-area hematologist-oncologist pleaded guilty today for his role in a health care fraud scheme, admitting that he administered unnecessary chemotherapy to fraudulently bill the Medicare program and private insurance companies. According to court records, the scheme enabled the doctor to submit approximately $225 million in claims to Medicare over six years.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office and Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
Farid Fata, M.D., 49, of Oakland Township, Michigan, pleaded guilty today before U.S. District Judge Paul D. Borman of the Eastern District of Michigan to 13 counts of health care fraud, one count of conspiracy to pay or receive kickbacks and two counts of money laundering. At his sentencing, scheduled for Feb. 23, 2014, Fata faces a statutory maximum of 175 years in prison.
“At a time when they are most vulnerable and fearful, cancer patients put their lives in the hands of doctors and endure risky treatments at their recommendation,” said Assistant Attorney General Caldwell. “Dr. Fata today admitted he put greed before the health and safety of his patients, putting them through unnecessary chemotherapy and other treatments just so that he could collect additional millions from Medicare. The mere thought of what he did is chilling. Thanks to the quick action of our partners, he was arrested and has now admitted his guilt.”
“This defendant not only stole funds from taxpayer funded insurance programs, but he also deliberately administered unnecessary chemotherapy so that he could bill insurers for expensive chemotherapy treatments,” said U.S. Attorney McQuade. “His exploitation of patients for his own profit caused victims to suffer physically and emotionally.”
“A little more than a year ago, the FBI and its law enforcement partners acted swiftly to arrest Dr. Farid Fata and shield his patients from further harm,” said FBI Special Agent in Charge Abbate. “Today’s plea is the culmination of the diligent investigative work jointly conducted by the FBI, IRS, the Department of Health and Human Services, and prosecutors to protect the public and ensure that justice is served. Our hope is that this outcome offers some measure of solace to the victims and reassures the community of our collective resolve to prevent similar violations of patients’ trust.”
“Dr. Fata’s utter disregard for his patients’ welfare was quite simply deplorable,” said HHS-OIG Special Agent in Charge Pugh. “The OIG will ceaselessly work to bring such criminals to the justice they deserve.”
“It’s exceptionally distressing to see this kind of fraud committed by individuals in occupations that profess high ethical standards," said IRS-CI Chief Weber. “When doctors commit fraud through their profession, it is not only a violation of the public trust but also a complete renunciation of their Hippocratic oath. Those who commit Medicare fraud are pick-pocketing from every American taxpayer.”
Fata admitted that he is a licensed medical doctor who owned and operated a cancer treatment clinic, Michigan Hematology Oncology, P.C. (MHO), which had locations in Rochester Hills, Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park, Michigan. He also owned a diagnostic testing facility, United Diagnostics PLLC, located in Rochester Hills, Michigan.
In his guilty plea today, Fata admitted to prescribing and administering aggressive chemotherapy, cancer treatments, intravenous iron and other infusion therapies to patients who did not need them in order to increase his billings to the Medicare program and other insurance companies. Fata then submitted fraudulent claims to Medicare and other insurers for these unnecessary treatments.
Fata submitted approximately $225 million in claims to Medicare between August 2007 and July 2013, of which approximately $109 million was for chemotherapy and other cancer treatments. Medicare paid over $91 million to Fata, of which over $48 million was for chemotherapy and other cancer treatments.
Fata also admitted to soliciting kickbacks from Guardian Angel Hospice and Guardian Angel Home Health Care in exchange for his referral of patients to those facilities.
Fata further admitted to using the proceeds of the health care fraud at his medical practice, MHO, to promote the carrying on of additional health care fraud at United Diagnostics, where he administered unnecessary and expensive PET (positron emission tomography) scans for which he billed a private insurer.
This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Deputy Chief Gejaa T. Gobena, Assistant Chief Catherine K. Dick and Trial Attorney Matthew C. Thuesen of the Fraud Section, and by Health Care Fraud Unit Chief Wayne F. Pratt, Deputy Chief Sarah Resnick Cohen and White Collar Crime Unit Chief John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
For further information about this case, visit: http://www.justice.gov/usao/mie/news/2013/2013_9_18_2013_dr_fata.html.
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Detroit-Area Doctor Admits to Providing Medically Unnecessary Chemotherapy to PatientsRead the Press Release
WASHINGTON — A Detroit-area hematologist-oncologist pleaded guilty today for his role in a health care fraud scheme, admitting that he administered unnecessary chemotherapy to fraudulently bill the Medicare program and private insurance companies. According to court records, the scheme enabled the doctor to submit approximately $225 million in claims to Medicare over six years.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office and Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
Farid Fata, M.D., 49, of Oakland Township, Michigan, pleaded guilty today before U.S. District Judge Paul D. Borman of the Eastern District of Michigan to 13 counts of health care fraud, one count of conspiracy to pay or receive kickbacks and two counts of money laundering. At his sentencing, scheduled for Feb. 23, 2014, Fata faces a statutory maximum of 175 years in prison.
“At a time when they are most vulnerable and fearful, cancer patients put their lives in the hands of doctors and endure risky treatments at their recommendation,” said Assistant Attorney General Caldwell. “Dr. Fata today admitted he put greed before the health and safety of his patients, putting them through unnecessary chemotherapy and other treatments just so that he could collect additional millions from Medicare. The mere thought of what he did is chilling. Thanks to the quick action of our partners, he was arrested and has now admitted his guilt.”
“This defendant not only stole funds from taxpayer funded insurance programs, but he also deliberately administered unnecessary chemotherapy so that he could bill insurers for expensive chemotherapy treatments,” said U.S. Attorney McQuade. “His exploitation of patients for his own profit caused victims to suffer physically and emotionally.”
“A little more than a year ago, the FBI and its law enforcement partners acted swiftly to arrest Dr. Farid Fata and shield his patients from further harm,” said FBI Special Agent in Charge Abbate. “Today’s plea is the culmination of the diligent investigative work jointly conducted by the FBI, IRS, the Department of Health and Human Services, and prosecutors to protect the public and ensure that justice is served. Our hope is that this outcome offers some measure of solace to the victims and reassures the community of our collective resolve to prevent similar violations of patients’ trust.”
“Dr. Fata’s utter disregard for his patients’ welfare was quite simply deplorable,” said HHS-OIG Special Agent in Charge Pugh. “The OIG will ceaselessly work to bring such criminals to the justice they deserve.”
“It’s exceptionally distressing to see this kind of fraud committed by individuals in occupations that profess high ethical standards," said IRS-CI Chief Weber. “When doctors commit fraud through their profession, it is not only a violation of the public trust but also a complete renunciation of their Hippocratic oath. Those who commit Medicare fraud are pick-pocketing from every American taxpayer.”
Fata admitted that he is a licensed medical doctor who owned and operated a cancer treatment clinic, Michigan Hematology Oncology, P.C. (MHO), which had locations in Rochester Hills, Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park, Michigan. He also owned a diagnostic testing facility, United Diagnostics PLLC, located in Rochester Hills, Michigan.
In his guilty plea today, Fata admitted to prescribing and administering aggressive chemotherapy, cancer treatments, intravenous iron and other infusion therapies to patients who did not need them in order to increase his billings to the Medicare program and other insurance companies. Fata then submitted fraudulent claims to Medicare and other insurers for these unnecessary treatments.
Fata submitted approximately $225 million in claims to Medicare between August 2007 and July 2013, of which approximately $109 million was for chemotherapy and other cancer treatments. Medicare paid over $91 million to Fata, of which over $48 million was for chemotherapy and other cancer treatments.
Fata also admitted to soliciting kickbacks from Guardian Angel Hospice and Guardian Angel Home Health Care in exchange for his referral of patients to those facilities.
Fata further admitted to using the proceeds of the health care fraud at his medical practice, MHO, to promote the carrying on of additional health care fraud at United Diagnostics, where he administered unnecessary and expensive PET (positron emission tomography) scans for which he billed a private insurer.
This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Deputy Chief Gejaa T. Gobena, Assistant Chief Catherine K. Dick and Trial Attorney Matthew C. Thuesen of the Fraud Section, and by Health Care Fraud Unit Chief Wayne F. Pratt, Deputy Chief Sarah Resnick Cohen and White Collar Crime Unit Chief John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
For further information about this case, visit: http://www.justice.gov/usao/mie/news/2013/2013_9_18_2013_dr_fata.htmlDepartment of Justice and Federal Trade Commission Sign Cooperation Agreement with Colombian Antitrust AgencyRead the Press Release
Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division has signed an antitrust cooperation agreement with the Colombian antitrust agency on behalf of the Department of Justice. The agreement also was signed by Federal Trade Commission Chairwoman Edith Ramirez, and went into effect today with the signature of Pablo Felipe Robledo, Colombia’s Superintendent of Industry and Commerce. The agreement will enable the antitrust agencies in the two countries to further enhance their law enforcement relationship.
The new agreement contains provisions for antitrust enforcement cooperation and coordination, conflict avoidance and consultations with respect to enforcement actions, and technical cooperation. The agreement also contains confidentiality protections.
The U.S. antitrust agencies and Colombia’s Superintendence of Industry and Commerce, the agency that enforces Colombia’s competition law, have built a strong enforcement relationship over the years, both bilaterally and under the terms of the U.S.-Colombia Trade Promotion Agreement.
“The Colombians have a proven antitrust system, and this agreement will allow us to work more closely with our colleagues in Bogotá,” said Assistant Attorney General Baer. “Enforcement cooperation based on sound policies is critical to maintaining competitive markets in the Americas, particularly for economies as linked as ours.”
“Colombia has a well-developed competition regime, and we have a strong working relationship with its competition agency,” said Chairwoman Ramirez. “We look forward to working with the Superintendence to advance our shared goal of promoting convergence around sound competition policy throughout the hemisphere.”
Highlights of the new agreement include:
- Mutual acknowledgment of the importance of antitrust cooperation, including information sharing and possible coordination of enforcement actions with regard to related matters;
- Agreement to take one another’s important interests into account in order to minimize possible conflicts arising out of antitrust enforcement actions; and
- Agreement to maintain the confidentiality of any sensitive information provided by the other party.
The agreement entering into force today does not change existing law in either country. Colombia has had a law dedicated to the preservation of competition since 1959. This cooperation agreement is similar in substance to those previously signed by the U.S. antitrust agencies with other jurisdictions in the Americas, including Brazil, Canada, Chile and Mexico.
According to the Office for the United States Trade Representative, Colombia is currently the United States’ 21st-largest goods trading partner, with $40 billion in total (two way) goods trade during 2013. Goods exports totaled $19 billion, while imports totaled $22 billion.
DOJ MEDIA CONTACT: Emily Pierce, Office of Public Affairs
202-514-2007
FTC MEDIA CONTACT: Peter Kaplan, Office of Public Affairs
202-236-2334
Defense Contractors Settle Alleged Violation of the False Claims Act for $5.5 MillionRead the Press Release
United States Attorney Andrew M. Luger today announced a settlement agreement between the United States, Relator David McIntosh, M.K. Battery, Inc. (MK Battery), East Penn Manufacturing Co., Inc. (East Penn), NPC Robotics, Inc. (NPC), BAE Systems, Inc., and BAE Systems Tactical Vehicle Systems LP (BAE). The $5.5 million agreement resolves an alleged violation of the False Claims Act related to the sale of batteries for use in gun turrets on military vehicles.
According to documents filed in court, East Penn manufactured batteries that were sold to NPC, for use by the United States Department of Defense (DOD). DOD wanted dual-purpose batteries, with both a strong starting capacity and good deep cycling ability, to power the turrets atop Humvee vehicles. Based on representations made by Defendants, DOD believed that the East Penn batteries were deep cycle batteries, and contracted with BAE to install the batteries in the Humvees.
DOD received samples of the battery in 2005 and approved its use. However, East Penn later made changes to the design and manufacturing of the battery that negatively affected its deep cycle performance. Defendants did not inform DOD of the change.
“The Department of Defense relies on companies it deals with to be honest about the products they provide, especially when those products will be used on the battlefield,” said Assistant United States Attorney Chad A. Blumenfield. “Inaccuracies about such products cannot be tolerated.”
Despite knowledge by MK Battery, East Penn, NPC, and BAE of the diminished battery performance, BAE continued to install the batteries in Humvees supplied to DOD through 2012, and did not inform DOD about the decreased deep cycle performance of the batteries. The United States only became aware of the change to the battery’s design and performance by the filing of a qui tam complaint. The $5.5 million settlement resolves allegations contained in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act that are pending in Minnesota. As part of the resolution, the whistleblower will receive a payment of $990,000.
Assistant U.S. Attorney Chad Blumenfield handled this matter for the United States.
U.S. Attorney Luger thanked the Defense Criminal Investigative Service for investigating this case.###
Defendant Who Conspired to Kidnap, Rape, and Murder Women Sentenced in Manhattan Federal Court to Ten Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RICHARD MELTZ, the former Chief of Police, United States Department of Veterans Affairs, at the Bedford Veterans Affairs Medical Center, was sentenced today in Manhattan federal court to ten years for conspiring to kidnap, rape, and murder the wife of a man he had met over the Internet, and a female Federal Bureau of Investigation agent working in an undercover capacity. MELTZ pled guilty before U.S. District Judge Paul G. Gardephe, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Today’s sentence ensures that Richard Meltz will pay with his liberty for his role in a macabre conspiracy to kidnap, brutalize, and kill two victims that, fortunately, did not come to full fruition.”
According to the Information to which MELTZ pled guilty, statements made during the plea proceeding, and other court documents:
Between the spring of 2011 and January 2013, MELTZ, Robert Christopher Asch and Michael Van Hise engaged in a series of electronic email and instant message communications during which they discussed and planned the kidnapping, torture, and murder of Van Hise’s wife and other members of Van Hise’s family. Van Hise sent to MELTZ and Asch photographs of these family members, and the approximate location of their residence. MELTZ engaged in detailed discussions about kidnapping and brutalizing the proposed victims, and ultimately agreed with Van Hise and Asch to kidnap, rape, and kill Van Hise’s wife. The co-conspirators ceased active planning of the kidnapping when the FBI arrested New York City Police Officer Gilberto Valle for a related kidnapping conspiracy, and began investigating Van Hise.
In addition, beginning in approximately January 2013, MELTZ, Asch, and an FBI agent working in an undercover capacity (“UC-1”) began discussions about kidnapping a woman, who unbeknownst to MELTZ and his co-conspirators, was also an FBI agent working in an undercover capacity. MELTZ participated in multiple conversations with both UC-1 and Asch about the conspiracy’s objective to kidnap and commit acts of violence against the intended victim and other women. MELTZ advised Asch to obtain a stun gun to subdue the intended target, and based on MELTZ’s direction, Asch purchased a high-voltage Taser gun at a gun show in Pennsylvania, which they intended to use in the commission of the kidnapping offense.
In addition to his prison term, MELTZ, 66, of Linden, New Jersey, was sentenced to three years of supervised release, and was ordered to pay a $200 special assessment fee.
Van Hise and Asch were both convicted following a two-week jury trial. Both men await sentencing.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the Department of Veterans Affairs and the New Jersey State Police for their assistance in the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Brooke E. Cucinella and Hadassa Waxman are in charge of the prosecution.
Defendant Pleads Guilty to Mail Fraud and Conspiracy to Commit Money LaunderingRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Kyong Hee Kim, 56, entered a guilty plea to mail fraud and conspiracy to commit money laundering. Kim joined with Sun Sims, 52, and others to defraud the Municipality of Anchorage by evading the payment of cigarette excise tax. Sun Sims pleaded guilty on September 5, 2014, for her role in the crimes..
According to the plea agreement, Kyong Hee Kim knowingly purchased illegally obtained tax exempt cigarettes from Sun Sims and her business partner who owned, operated, and managed Up in Smoke, located in the Municipality of Anchorage, and Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, both located outside the Municipality of Anchorage. Because they owned Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, Sun Sims and her partner could legitimately purchase Municipality of Anchorage excise tax exempt cigarettes from tobacco wholesale distributors located in the Municipality, but only if those cigarettes were actually transported outside of the Municipality and offered for sale at those two stores. However, cigarettes that they purchased within the Municipality and intended to sell at Up in Smoke or distribute to others within the Municipality were not excise tax exempt.
Between 2009 and October 10, 2012, Sun Sims and her partner used their Golden Eagle Tobacco and Longmere Lake Grocery and Liquor store accounts with tobacco wholesale distributors within the Municipality to purchase excise tax exempt cigarettes that they intended to sell and distribute within the Municipality. Thus, they avoided paying the excise tax and increased their own profits.
Kyong Hee Kim, who owns and operates the Mini Stop, paid a fee to Sun Sims and her business partner for the purchase of excise tax exempt cigarettes. Kyong Hee Kim paid this fee for the tax exempt cigarette in an effort to avoid paying the tax owed to the Municipality. Sun Sims and her partner would collect payment from Kyong Hee Kim and other retailers. They would then convert the money collected into cashier’s checks that appeared to be purchased by either Golden Eagle Tobacco or Longmere Lake Grocery and Liquor. They then used these cashier’s checks to purchase more tax exempt cigarettes, which they delivered to Kyong Hee Kim and the other retailers within the Municipality.
“When individuals attempt to evade their lawful tax obligations, be it federal, state, or local, they really steal from all of us,” said Assistant Special Agent in Charge Steve Bellis of IRS Criminal Investigation. “In this case, the conspirators effectively stole excise tax from the municipality of Anchorage; monies that would have been used to support important local infrastructure. IRS Criminal Investigation is proud to partner with the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department to bring this criminal conspiracy to justice.”
As part of the plea, Kim agreed to forfeit $1,214,802 in currency as well as 500 1-ounce silver coins. Mail fraud carries a sentence of up to 20 years imprisonment and fines up to $250,000. Conspiracy to money launder carries a sentence of up to 20 years imprisonment and fines up to $500,000.
The case was jointly prosecuted by Assistant U.S. Attorneys Stephan A. Collins and Erin W. Bradley of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Anchorage Police Department.
Defendant Charged with Producing Child Pornography CapturedRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jordan McCloud, 22, of Rochester, NY, was taken into police custody early this morning by members of the U.S. Marshals Service with assistance from the Federal Bureau of Investigation’s Cyber Task Force and the Rochester Police Department. McCloud was charged by criminal complaint on August 18, 2014 with producing child pornography and possessing child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the complaint, the defendant used his cellular phone to film co-defendant Shahmell Robinson while Robinson raped a female child under the age of 16. The conduct occurred at a residence in Greece on August 8, 2014. The videos came to the attention of law enforcement when another individual posted them on Facebook.com.
The defendant made an initial appearance this afternoon before U.S Magistrate Judge Marian W. Payson. The Government moved to detain McCloud on the grounds that he poses a risk of flight and a danger to the community. A status conference regarding bail is scheduled for September 23, 2014 at 12:00 p.m.
The criminal complaint is the culmination of an investigation on the part of members of the Federal Bureau of Investigation’s Cyber Task Force, along with Task Force officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli and members of the Greece Police Department, under the direction of Chief Patrick Phelan.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Columbus Man Ppleads Guilty for Role in Hydrocodone ConspiracyRead the Press Release
Conspirators Transported Prescription Drugs from Florida to Charleston in Bi-monthly Trips
Charleston, W.Va. – United States Attorney Booth Goodwin announced that David Frizzell, age 44, of Columbus, Ohio, plead guilty today in federal court in Charleston for his role in a conspiracy to distribute hydrocodone. Frizzell admitted that from early 2010 through October of 2011, he arranged bi-monthly trips for himself and others to obtain Lortab tablets, which contain hydrocodone, from various pharmacies in Florida. Some of the drugs were brought back to Charleston to be sold. Frizzell paid the travel expenses and provided the transportation for the trips.
Frizzell faces up to ten years imprisonment and a $500,000 fine when he sentenced December 18, 2014.
The Metropolitan Drug Enforcement Network Team (MDENT) was responsible for the investigation of Frizzell and others involved in the conspiracy.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Carbondale Resident Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
Follow @SDILNewsOn September 12, 2014, Johnathan T. Buck, a/k/a “Buffalo,” of Carbondale, Illinois, pled guilty to a one-count indictment charging conspiracy to distribute crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2013 and March 2014, in Jackson County. Evidence at the plea hearing established that Buck was involved with others in the distribution of crack cocaine in Carbondale. Buck and his associates were transporting crack cocaine from northern Illinois to Carbondale for distribution. On multiple occasions, Buck sold crack cocaine to a confidential source working for law enforcement.
The crack cocaine offense carries a penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Buck is currently being held without bond pending a December 16, 2014, sentencing hearing.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Carbondale Police Department, and Drug Enforcement Administration. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
California Residents Indicted for Retail Fraud SchemeRead the Press Release
BOISE - Arleen Cifuentes, 31, of Riverside, California, and Rocio Contreras-Loya, 40, of Sante Fe Springs, California, made their initial appearance today on charges of wire fraud, aggravated identity theft, and possession of fifteen or more unauthorized access devices, U.S. Attorney Wendy J. Olson announced. Cifuentes and Contreras-Loya were indicted on September 9, 2014, by a federal grand jury in Boise. Trial is set for November 11, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The Indictment charges the defendants with devising a scheme to defraud retail stores in Idaho by materially false and fraudulent pretenses, representations, and promises, by fraudulently using the personal identifying information of unknowing third party victims to apply for and receive credit accounts through the retail stores. The Indictment alleges that the defendants obtained the personal identifying information of the victims, ran credit checks on them, then created false identifications purportedly from California with the victim's information and the defendants' photos. The defendants are alleged to have applied for, and received, credit accounts from several Boise-area department stores in the names of the victims, then utilized the credit accounts to make purchases of merchandise and gift cards. The Indictment alleges the credit application process, as well as the merchandise purchases, resulted in an interstate wire transmission. A third defendant, Ivan Fonseca, 30, of Richmond, California, remains a fugitive.
Wire fraud is punishable by up to 20 years in prison, a $250,000 fine, and three years of supervised release. Aggravated identity theft is punishable by a mandatory two years in prison, to be served consecutively to the sentence imposed for the underlying felony. Possession of fifteen or more unauthorized access devices is punishable by up to 10 years in prison, a $250,000 fine, and three years of supervised release.
The case was investigated by Boise Police Department and the United States Secret Service.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Baton Rouge Woman Pleads Guilty to Embezzling $600,000 from Her EmployerRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of DONNA M. DODSON, age 52, of Baton Rouge, Louisiana, who pled guilty today before Chief U.S. District Judge Brian A. Jackson to five (5) counts of wire fraud, in violation of Title 18, United States Code, Section 1343. DODSON faces a maximum sentence of one hundred (100) years in prison and fines totaling $1,250,000.
According to the factual basis presented to the Court in connection with her plea in 2009, DODSON was hired by a surgical center used by physicians throughout the Baton Rouge area. DODSON worked as the company’s office manager until mid-2013. During that time, she engaged in a scheme to defraud her employer, by (a) creating false and fraudulent entries in the company’s accounting records and software that appeared to indicate that the company owed money to various third parties; (b) preparing check requests for the false entries she had created; and then (c) fraudulently altering each check request, before the check was actually printed, so that her own name would appear on the face of each check as the “payee.” As DODSON obtained the checks, she would deposit the funds into one of her personal accounts. In total, throughout the scheme, DODSON created and generated more than one hundred (100) checks and fraudulently obtained approximately $600,000.
This investigation is being conducted by the United States Secret Service and the East Baton Rouge Parish Sheriff’s Office. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief.
Armed Robber ConvictedRead the Press Release
Anthony Robinson, 40, of Philadelphia, PA, was found guilty today by a federal jury hearing the robbery case against him. Robinson was found guilty of two counts of robbery which interferes with interstate commerce and one count of using a firearm during a crime of violence. A sentencing hearing is pending.
On December 1, 2012, at approximately 5:40 p.m., Robinson robbed the Subway shop at 545 N. Broad Street. The victim, a Subway store employee, was intimidated into giving the defendant $100 cash from the register. After the employee gave Robinson the money, Robinson asked for the code to the safe. When the employee responded that she did not know it, the defendant, armed with a gun, said, “You better not be lying or I’m going to hurt you.” The robbery was recorded on Subway’s surveillance camera.
On December 1, 2012, at approximately 7:20 p.m., Robinson robbed Anna’s Linens by threatening an employee. The employee gave the defendant $750 from the register. The surveillance video from the store clearly showed the robbery and the defendant’s face. The following day, the victim from the Subway store robbery saw the defendant and recognized him. The victim alerted police and positively identified the defendant after the police stopped him. The victim in the second robbery also identified the defendant in a photo array as the person who robbed him.
Robinson faces a maximum possible sentence of life in prison with a mandatory minimum sentence of seven years, up to five years of supervised release, a possible fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Armed Career Criminal Sentenced to Fifteen Years in PrisonRead the Press Release
BOSTON – A former Springfield man was sentenced today in U.S. District Court in Springfield for illegally possessing a firearm and ammunition.
Luis Colon, 31, was sentenced by U.S. District Judge Michael A. Ponsor to 15 years in prison, and three years of supervised release. In October 2013, Colon was convicted following a four-day jury trial of possessing a firearm and ammunition after being previously convicted of a felony. On Sept. 7, 2010, Colon sold a Smith & Wesson 9mm pistol with 14 rounds of Remington 9mm ammunition to a man working with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Colon was targeted for federal prosecution because he had more than a dozen prior criminal convictions including crimes of violence and narcotics trafficking. In addition, at the time of this sentence, Colon was under a state criminal justice sentence. These prior convictions qualified Colon as an armed career criminal under federal law.
United States Attorney Carmen M. Ortiz; Interim Hampden County District Attorney James C. Orenstein; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri, made the announcement today. The case was prosecuted by Steven H. Breslow of Ortiz’s Springfield Branch Office.
Anti-gang and Violent Crime Reduction Initiative Leads to More Than 135 ArrestsRead the Press Release
CHARLOTTE, N.C. – A total of 138 defendants have been arrested and currently face state charges in connection with operation “Southern Snare,” an anti-gang and violent crime reduction initiative led by the United States Marshals Service in coordination with federal, state and local law enforcement agencies. The arrests took place over the course of the four-month long operation, which began in May and concluded on September 5, 2014.
This anti-gang and violent crime reduction initiative targeted gang activities and violent crime in Gaston and Cleveland counties, with special emphasis placed on communities within Gastonia and Shelby, N.C. During this operation, authorities seized 56 firearms, narcotics with an approximate street value of $178,000, and an estimated $15,000 in U.S. currency.
Kelly M. Nesbit, United States Marshal of the United States Marshals Service (USMS) for the Western District of North Carolina; Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Ryan L. Spradlin, Acting Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas; B.W. Collier, Acting Director of the North Carolina State Bureau of Investigation; Johnny Hawkins, Director of Security Services, North Carolina Department of Public Safety; Chief James W. Buie of the Gaston County Police Department; Chief Robert Helton of the Gastonia Police Department; Sheriff Alan Cloninger of the Gaston County Sheriff’s Office; Locke Bell District Attorney for Gaston County; Chief Jeffrey H. Ledford of the Shelby Police Department; Chief Melvin Proctor of the Kings Mountain Police Department; Sheriff Alan Norman of the Cleveland County Sheriff’s Office; and Rick Shaffer, District Attorney for Cleveland and Lincoln Counties join Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina in making today’s announcement.
“I commend the law enforcement partners involved in this cross-jurisdictional and multi-agency operation for their hard work and their commitment to making our streets and communities safer,” stated Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
“The success of Operation Southern Snare is the result of our close cooperation and coordination with our law enforcement partners. Targeted initiatives like this one bring relief to communities afflicted by gang activity and the violence it brings. I want to thank all our law enforcement partners for their involvement and support throughout this operation, and I look forward to our continued partnership, as we work together to remove gang members and violent offenders from our streets and to protect our neighborhoods from the spread of violence. Most of all, I commend the law enforcement agents and officers who worked tirelessly to make this initiative a success and I want to thank them for continuing to put their lives at risk to safeguard our communities,” said Kelly M. Nesbit, U.S. Marshal, Western District of North Carolina.
“ATF’s mission is to identify, pursue and perfect criminal cases against individuals who illegally possess and use firearms in furtherance of their criminal activities,” said ATF’s Special Agent in Charge Wayne L. Dixie. “We will continue to work with the U.S. Marshals Service and our local counterparts in Cleveland and Gaston Counties to ensure that those who foster violence in this region are held to account for their activities.”
“Operation Southern Snare’s arrests have made a significant difference in eliminating Shelby and Gastonia’s gang activity and apprehending those who commit violent crimes,” SBI Director B.W. Collier said. “A lot of effort and collaboration among the participating law enforcement agencies has led to safer communities in Cleveland and Gaston counties. I applaud this successful operation.”
“Collaborating with our partners at the federal and local levels on operations like this one brings tremendous benefits,” said Johnny Hawkins, Director of Security Services for the North Carolina Department of Public Safety. “The law enforcement agencies benefit from the sharing of expertise and resources and citizens know that their communities are safer due to these efforts.”
“The efforts of all the law enforcement officers involved in this operation will result in amazing returns for our community. This project is a great example of the impact we can make by working hand-in-hand with our federal and state partners. Together, we have addressed issues such as gangs, drugs and guns, which have been deteriorating our communities. Although this operation is coming to a close, we see it as a beginning instead of an ending. The partnerships formed over the past few months will continue to grow and our communities will reap the benefits,” said Chief of Shelby Police Department, Jeffrey H. Ledford.
“The success of Operation ‘Southern Snare’ had a positive and lasting impact on our community. This type of multiagency cooperation sends a clear message to the citizens of Kings Mountain and to criminals who think they can conduct their illegal activities in our area: The Kings Mountain Police Department will work alongside our federal and state law enforcement partners to protect the safety of the communities we serve,” said Chief Melvin Proctor of Kings Mountain Police Department.
“The U.S. Marshalls Service has been very beneficial in assisting us in dealing with our gang members in Cleveland County. We are looking forward to continuing this team approach with future operations,” said Sheriff Alan Norman of the Cleveland County Sheriff’s Office.
The defendants arrested during this operation currently face state charges in connection with this investigation which include: narcotics-related offenses, firearms violations and other violent crimes. The investigations are ongoing which may result in additional charges against the defendants.
This initiative was led by the U.S. Marshals Service in coordination with ATF, HSI, NC SBI, NC Dept. of Public Safety, Gaston Co. PD, Gastonia PD, Gaston Co. SO, Shelby PD, Kings Mountain PD, and Cleveland County SO.
Ambulance Company Manager Pleads Guilty to $5.5 Million Medicare Fraud ConspiracyRead the Press Release
The general manager of a Southern California ambulance company pleaded guilty yesterday in Los Angeles to conspiracy to commit Medicare fraud, conspiracy to obstruct a Medicare audit, and making materially false statements to law enforcement officers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill Lewis of the FBI’s Los Angeles Field Office made the announcement.
Wesley Harlan Kingsbury, 34, of Bloomington, California, pleaded guilty to the charges before U.S. District Judge Dale S. Fischer. Sentencing is scheduled for Feb. 9, 2015.
According to court documents, Kingsbury was the general manager of Alpha Ambulance Inc., which specialized in the provision of non-emergency ambulance transportation services to Medicare beneficiaries, primarily to and from dialysis treatments. Between April 2010 and July 2012, Kingsbury conspired with Alex Kapri and Aleksey (Russ) Muratov, the owners of Alpha Ambulance, as well as the training supervisor Danielle Medina, to bill Medicare for ambulance transportation services for individuals that Kingsbury knew did not need to be transported by ambulance. In addition, as general manager, Kingsbury instructed emergency medical technicians (EMTs) that worked at Alpha Ambulance to conceal the true medical condition of patients they were transporting by altering requisite paperwork and creating false reasons to justify the transportation services.
In early 2012, Medicare notified Alpha Ambulance that the company would be subject to a Medicare audit. In response, Kingsbury and his co-conspirators altered patient documentation to create false justifications for the ambulance transportation services. Kingsbury and others used light tracing tables to trace over original documents and create falsified patient documentation for the purpose of sending those falsified documents to Medicare, and then they used a paper shredder to destroy the original patient documents.
Kingsbury and his co-conspirators submitted $5,522,079 in fraudulent claims to Medicare, and Medicare paid $1,338,413 on those fraudulent claims.
Further according to court documents, in April 2012, Kingsbury was approached by law enforcement officers and was asked to assist with the investigation into Alpha Ambulance. Kingsbury disclosed to the owners of Alpha Ambulance the names of the law enforcement officers who were conducting the investigation and the questions they had asked Kingsbury about the company. On May 1, 2012, Kingsbury falsely denied to the law enforcement agents that he had previously disclosed that information to the owners of Alpha.
Kapri, Muratov and Medina pleaded guilty to conspiracy to commit health care fraud on October 28, 2013. They were sentenced to terms of imprisonment of 75 months, 108 months, and 30 months, respectively.
The case was investigated by the FBI and the Los Angeles Region of HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case was prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter and Assistant Chief Ben Curtis of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare 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.
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Alexander County Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
Follow @SDILNewsOn September 12, 2014, Keithy D. Carter, a/k/a “Darnell K. Carter,” 23, of Tamms, Ill., pled guilty to a one-count indictment charging Possession of a Firearm by a Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that, on January 14, 2014, Carter possessed a Hi-Point, model C9, 9mm Luger semiautomatic pistol, in Tamms, Alexander County. The firearm had recently been used by another individual to commit a homicide in Jackson County. Because Carter had previously been convicted of a felony, he is prohibited from possessing firearms.
The firearm offense carries a penalty of up to 10 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $250,000. Carter is currently being held without bond while he awaits a December 16, 2014, sentencing hearing.
The investigation was conducted by the Jackson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Carbondale Police Department and Jackson County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
23 Arrests Made Today in 62-count Federal Drug Trafficking IndictmentRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI); and Little Rock Police Department Chief Kenton Buckner announced the unsealing of a 62-count indictment charging multiple defendants in Arkansas, Georgia, Texas and Tennessee, with multiple drug, weapons and money laundering charges. An investigation into a large-scale drug trafficking organization based in Little Rock resulted in the early-morning arrests of 22 defendants on charges involving distribution of cocaine, crack cocaine, and marijuana, weapons possession, and money laundering charges. 20 arrests were made in Little Rock; one, Christian White, was arrested in the Mesquite/Dallas, Texas area; and one, Rachel Green, was arrested in Atlanta, Georgia. Three; Michael Dawkins, Rodriques Davis and Richard Beason, are still at large.
“These large-scale investigations and ultimate arrests take a well-planned coordinated effort by many law enforcement partners on the federal, state and local levels,” stated Thyer. “We are fortunate to have good working relationships where drug trafficking organizations such as this one are dismantled. Not only are the drugs taken off the street, but the associated weapons and criminal enterprise is removed from our neighborhoods.
“We are proud of this partnership which remains focused on dismantling the violent criminal enterprises which attempt to root their networks within our communities,” said Special Agent In Charge David T. Resch of the FBI Little Rock Field Office. “Today’s arrests are the culmination of a long term collaboration between the Little Rock, Benton, and Sherwood Police Departments, as well as the Pulaski County Sheriff’s Department, U.S. Marshals, Arkansas National Guard, Arkansas State Police, the US Attorney’s office, and the FBI.”
“Today’s events provide an excellent example of the partnerships between local, county, state, and federal agencies. We greatly appreciate the FBI and their continued support for this critical mission,” said Chief Kenton Buckner of the Little Rock Police Department.
The FBI investigation began in January 2013. Multiple undercover operations and numerous other law enforcement actions, including multiple seizures of cocaine and crack cocaine were used during the investigation. All told, the FBI purchased more than 1.75 kilos of cocaine from the Freddie Brewster drug trafficking organization (DTO) in a dozen controlled purchases. In addition, agents seized more than nine ounces of crack cocaine and more than 165 pounds of marijuana.
The Brewster DTO was based out of Brewster’s Used Auto and Detail shop on Forbing Road in southwest Little Rock. Included in the indictment were several forfeiture counts which called for the forfeiture of multiple vehicles used by the Freddie Brewster organization, including the inventory of the used car shop. As part of the operation on Tuesday more than 20 vehicles and more than $35,000 in drug proceeds from multiple bank accounts was seized.
The indictment was handed down by a Federal Grand Jury on September 11, 2014. The indictment charges 25 defendants in 62 separate counts. The counts include conspiracy to possess with intent to distribute more than 5 kilograms of cocaine, conspiracy to possess with intent to distribute crack cocaine, conspiracy to possess with intent to distribute marijuana, aiding and abetting the distribution of cocaine, felon in possession of firearms, money laundering, and the use of telephone to facilitate a drug trafficking crime. If convicted of conspiracy to distribute more than 5 kilograms of cocaine each defendant will face a sentence of not less than 10 years to life imprisonment.
The investigation was conducted by the FBI, with assistance from multiple law enforcement agencies including: the Little Rock Police Department, Benton Police Department, Sherwood Police Department, Pulaski County Sheriff’s Office, Arkansas National Guard, Arkansas State Police, Homeland Security Investigations, and United States Marshal Service. The case is being prosecuted by Assistant United States Attorneys Chris Givens and Benecia Moore.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
BREWSTER DTO INDICTMENT
DEFENDANTS/CHARGES
Conspiracy to possess with intent to distribute cocaine:
- Freddie Eugene BREWSTER, 30, Little Rock
- Alton Elijah GIVENS, 30, Little Rock
- Christopher Lamont JONES, 41, Little Rock
- Thomas Stacy CAFFREY, 42, Mabelvale
- Richard BEASON, 42, West Memphis
- Tommie ICE, 24, Little Rock
- Clarence ALLEN, 56, Little Rock
- Rachel LEWIS, 34, Little Rock
- Ladeitrick HAMPTON, 33, North Little Rock
- Ashley RAMAGE, Pine Bluff
- Linda BREWSTER, 52, Little Rock
- David BOWMAN, JR., 40, Little Rock
- D’Angelo CANNON, 29, Mabelvale
- Michael Deshun DAWKINS, 27, Little Rock
- Verna THOMPSON, 35, Conway
- Brunson Jay TAYLOR, 29, Little Rock
- Charles OLIVER, 57, Little Rock
- Taquila SHOTO, 27, Hope
- Freddie Eugene BREWSTER, 30, Little Rock
- Alton Elijah GIVENS, 30, Little Rock
- Thomas Stacy CAFFREY, 42, Mabelvale
- Richard BEASON, 42, West Memphis
- Darrell GREEN, 31, Camden
- Willie Joseph TYLER, JR., 37, Little Rock
- Ashley RAMAGE, Pine Bluff
- David BOWMAN, JR., 40, Little Rock
- Charles OLIVER, 57, Little Rock
- Clinton BREWER, 41, Benton
- Rodriques D’Angelo DAVIS, 30, Little Rock
Conspiracy to possess with intent to distribute marijuana:
- Freddie Eugene BREWSTER, 30, Little Rock
- Jennifer MAY, 38, Sherwood
- Christian WHITE, 24, Mesquite, Texas
Possession with intent to distribute and distribution of cocaine:
- Freddie Eugene BREWSTER, 30, Little Rock
- Alton Elijah GIVENS, 30, Little Rock
- Christopher Lamont JONES, 41, Little Rock
- Darrell GREEN, 31, Camden
- Rachel LEWIS, 34, Little Rock
- David BOWMAN, JR., 40, Little Rock
Possession with intent to distribute crack cocaine:
- Darrell GREEN, 31, Camden
Felon in possession of a firearm:
- Alton Elijah GIVENS, 30, Little Rock
Money laundering:
- Christina Akins BREWSTER, 27, Little Rock
Use of a communication facility:
- Freddie Eugene BREWSTER, 30, Little Rock
- Alton Elijah GIVENS, 30, Little Rock
- Christopher Lamont JONES, 41, Little Rock
- Thomas Stacy CAFFREY, 42, Mabelvale
- Richard BEASON, 42, West Memphis
- Darrell GREEN, 31, Camden
- Tommie ICE, 24, Little Rock
- Clarence ALLEN, 56, Little Rock
- Willie Joseph TYLER, JR., 37, Little Rock
- Ladeitrick HAMPTON, 33, North Little Rock
- Ashley RAMAGE, Pine Bluff
- David BOWMAN, JR., 40, Little Rock
- D’Angelo CANNON, 29, Mabelvale
- Michael Deshun DAWKINS, 27, Little Rock
- Verna THOMPSON, 35, Conway
- Brunson Jay TAYLOR, 29, Little Rock
- Charles OLIVER, 57, Little Rock
- Clinton BREWER, 41, Benton
- Rodriques D’Angelo DAVIS, 30, Little Rock
- Taquila SHOTO, 27, Hope
STATUTORY SENTENCES
Conspiracy to possess with intent to distribute and to distribute more than 5 kilograms of cocaine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 500 grams but less than 5 kilograms of cocaine is punishable by not less than 5 years, not more than 40 years incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Conspiracy to possess with intent to distribute and to distribute less than 500 grams of cocaine is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 280 grams of crack cocaine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 28 grams but less than 280 grams of crack cocaine is punishable by not less than 5 years, not more than 40 years incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Conspiracy to possess with intent to distribute and to distribute less than 28 grams of crack cocaine is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Conspiracy to possess with intent to distribute more than 50 kilograms but less than 100 kilograms of marijuana is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Distribution of less than 500 grams of cocaine is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with the intent to distribute less than 500 grams of cocaine is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with intent to distribute more than 28 grams but less than 280 grams of crack cocaine is punishable by not less than 5 years, not more than 40 years incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Possession of a firearm by a felon is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Use of a communication facility to facilitate a drug trafficking crime is punishable by not more than 4 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 1 year supervised release.
Money laundering is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $500,000, and not more than 3 years supervised release.
15 September 2014
Yulee Man Charged in Federal Court with Receiving and Distributing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Nicholas Mitko Clark (21, Yulee) has been charged by a federal criminal complaint with distributing and receiving child pornography. If convicted, he faces a mandatory minimum penalty of five years, up to twenty years in federal prison, and a potential life term of supervision. Clark was arrested on September 11, 2014, at his residence. He was ordered detained pending a hearing on September 18, 2014, at 1:00 p.m., before United States Magistrate Judge James R. Klindt, in Jacksonville.
According to the criminal complaint, during an investigation leading to the arrest of an individual in Canada in 2013, law enforcement discovered communications between the individual in Canada and others relating to child exploitation offenses. Included in the communications were conversations between the Canadian individual and Clark. Specifically, on April 30, 2013, Clark and this individual engaged in an instant message conversation wherein Clark received and distributed images of a minor engaging in sexually explicit conduct. A forensic examination of Clark’s computer revealed additional images of child pornography. In addition, agents located Google search terms such as “young boys on cam” and “teen boy sex” on Clark’s computer, as well as remnants of chats using another messaging service discussing a preference for young and little boys.
Clark was employed as an after-school counselor by a youth development organization in Northeast Florida, and worked with youth through various churches. He also advertises his babysitting and child transportation services on the Internet.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Nassau County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
- Worker Guilty of Calling in Bomb Threat to Avoid Working
Woman Sentenced for Growing Marijuana in Sequoia National Forest and Damaging Public LandsRead the Press Release
FRESNO, Calif. — Marcelina Botello Charles, aka Marcelina Botello Arias (Botello), 46, of Hemet, was sentenced today to four years and two months in prison for her involvement in a marijuana cultivation operation that had adverse environmental impacts on public lands, U.S. Attorney Benjamin B. Wagner announced.
On May 19, 2014, Botello pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute 9,746 marijuana plants grown in the Lilly Canyon area of the Sequoia National Forest and distributing Ratone: Fosfuro de Zinc, an illegal rodenticide, and QúFuran, an illegal insecticide, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
According to court documents, Botello and a companion delivered the illegal pesticides and other materials to the forest cultivation site. The cultivation operation caused extensive environmental damage. Native oak trees and other vegetation were killed or cut down to make room for the marijuana plants. The soil was tilled and fertilizers, pesticides, and rodenticides were spread throughout the site. Cans of rat poison and insecticide were found at both the cultivation site and a residence Botello rented in Bakersfield. During the execution of a search warrant, agents also found marijuana seeds, other items associated with the cultivation operation, and $2,634 in cash.
Ratone: Forsfuro de Zinc contains zinc phosphide, an inorganic rodenticide that is highly toxic to mammals and fish. A single swallow of zinc phosphide could be fatal to a small child. Zinc phosphide can be expected to persist in soil for approximately two weeks. When it breaks down in soil it can release phosphine gas.
QúFuran contains carbofuran, a highly toxic insecticide. In granular form, a single grain will kill a bird; for humans, one quarter of a teaspoon is a sufficient dose to be fatal. It is also a powerful endocrine disrupter. Effective December 31, 2009, EPA cancelled all food tolerances for carbofuran.
“Illegal marijuana cultivation plagues our pristine national forests,” said Scott Harris, U.S. Forest Service Special Agent in Charge. “Those involved in this criminal activity place the community and their natural resources in danger. U.S. Forest Service Law Enforcement and our partners are committed to deterring, investigating, and prosecuting individuals and organizations that would exploit our public lands for such purposes.”
“Increasingly, dangerous, unregistered pesticides are being encountered by law enforcement officers who investigate illegal marijuana grows,” said Jay M. Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “Through their indiscriminate application, these unregistered pesticides pollute our lands and waters, create a significant safety risk to humans and animals, and present a mounting cleanup expense for taxpayers. Today’s sentence demonstrates the government’s commitment to hold accountable those individuals who traffic unregistered pesticides onto our public lands.”
Upon completion of her prison sentence, Botello will be on supervised release for five years. She was also ordered to pay $4,294 in restitution to the U.S. Forest Service to cover the cost of cleaning up the grow site. Earlier this year, Botello’s co-defendant, Julio Cesar Villanueva Cornejo was sentenced to six years in prison for his involvement in the conspiracy.
This case was the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.
Wichita Man Sentenced to Federal Prison for CounterfeitingRead the Press Release
WICHITA, KAN. A Wichita man was sentenced Monday to two years federal prison for counterfeiting, U.S. Attorney Barry Grissom said.
Billy J. Antrobus, 25, Wichita, Kan., pleaded guilty to one count of manufacturing counterfeit currency. In his plea, he admitted he counterfeited four $50 bills, 27 $20 bills, five $100 bills, and four sheets of uncut $20 bills.
Co-defendants include: Harvey D. Salisbury, who was sentenced to two years.
Dustelia D. Watts, who is set for sentencing Oct. 6.Grissom commended the Department of Homeland Security and Assistant U.S. Attorney Alan Metzger for their work on the case.
Washington, DC Man Convicted in Armed Robbery and Carjacking ShootingsRead the Press Release
Investigation by FBI’s Cross Border Task Force Results in The Conviction of the Final Defendant in a Violent Robbery and Carjacking
Greenbelt, Maryland – A federal jury convicted Anthony Terrell Cannon, age 25, of Washington, D.C., late on September 12, 2014, of conspiracy, robbery, carjacking, and two counts of discharging a gun during a crime of violence, and interstate transportation of a stolen vehicle, in connection with an armored car robbery and a carjacking in which a victim was shot in the arm and head.The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the evidence presented at Cannon’s two week trial, on October 26, 2012, Cannon, Tonnie Floyd, and Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, driving a stolen Jeep, followed a Garda Cash Logistics armored transport vehicle to the Cricket store located in the 1300 block of University Boulevard East, Takoma Park, Maryland. A Garda employee exited the armored truck, went into the store and picked up a bag containing $3,911. As the employee returned to the armored truck, he was confronted by two co-conspirators with guns. The Garda employee dropped the money bag and at least one co-conspirator fired a gun at the employee. The employee shot back. One of the co-conspirators picked up the money bag. The co-conspirators ran back to the stolen Jeep. As the co-conspirators drove away, the employee continued to fire his handgun at the Jeep, striking a tire and the back window. Floyd was wounded in the shoulder during the gunfire.
The co-conspirators left the Jeep in a neighborhood nearby because it had a flat tire as a result of the shooting. They saw a man entering a vehicle, and shot the man in the arm and head, causing permanent and life-threatening bodily injury, then stole his vehicle. They drove the vehicle into the District of Columbia, where they set it on fire.
The evidence also included a recorded call between Cannon and an inmate at Prince George’s County Detention Center in which Cannon acknowledged his participation in the crimes and expressed disappointment in leaving an evidence trail in the stolen Jeep.
Cannon faces a maximum penalty of 20 years in prison for the conspiracy; 20 years in prison for armed robbery; life in prison for each count of using and discharging a weapon during a crime of violence; 25 years in prison for carjacking; and 10 years in prison for interstate transportation of a stolen vehicle. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for December 1, 2014 at 9:30 a.m.
Co-conspirator Tonnie Floyd, age 22, of Washington, D.C., previously pleaded guilty to robbery, and discharging a gun during the robbery and carjacking. Floyd is scheduled to be sentenced on November 25, 2014. Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 23, also of Washington, D.C., pleaded guilty to the same offenses. Freeman and the government have agreed that if the Court accepts his plea, Freeman will be sentenced to between 241 months and 30 years in prison at his sentencing on December 11, 2014.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department, the Takoma Park Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.
Visalia Woman Pleads Guilty to Fraud and Identity Theft for Filing False Tax Returns Using Stolen IdentitiesRead the Press Release
FRESNO, Calif. —Rebekah Root, 33, of Visalia, pleaded guilty today to wire fraud, making a false claim for a tax refund, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2011, Root obtained tax documents that were stolen from an Internal Revenue Service office in Visalia. She used those tax documents to submit false tax returns on behalf of six taxpayers, without their knowledge or permission, and claimed approximately $50,000 in fraudulent tax refunds.
San Francisco Field Division Special Agent-in-Charge Rod Ammari for the Office of Investigations, Treasury Inspector General for Tax Administration stated: “When individuals steal information from the Internal Revenue Service and use that information to further identity theft, victims are left picking up the pieces from the financial problems they are left with due to the crimes committed. The Treasury Inspector General for Tax Administration is committed to pursuing individuals that use the IRS to further their identity theft schemes.”
This case is the product of an investigation by the Treasury Inspector General for Tax Administration and the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Patrick R. Delahunty are prosecuting the case.
Root is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on January 20, 2015. Root faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for wire fraud, five years in prison and a $250,000 fine for making a false claim for a tax refund, and a mandatory minimum penalty of two years in prison to be served consecutively with any other charged offenses for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
United States Attorney Booth Goodwin to Host Law Enforcement & Victim Assistance Awards Ceremony TomorrowRead the Press Release
*****MEDIA ADVISORY*****
Event to Honor Outstanding Service and Achievement of Law Enforcement, Community Leaders, Among Others
CHARLESTON, W.Va. –United States Attorney Booth Goodwin will host the 2014 Law Enforcement and Victim Assistance Awards ceremony on TUESDAY, SEPTEMBER 16, 2014, AT NOON, at the Glade Springs Resort in Daniels, West Virginia.
The annual awards ceremony, hosted by the U.S. Attorney's Office, recognizes exemplary service of federal, state and local law enforcement officers, as well as other leaders who have made significant contributions on behalf of the criminal justice system. In addition, several nominees chosen as part of the victim advocacy category will be honored for outstanding efforts, vision and/or leadership in support of crime victims.
WHO: U.S. Attorney Booth Goodwin, joined by various representatives from the law enforcement community and community leaders; WHAT: Annual Law Enforcement and Victim Assistance Awards ceremony; WHEN: Tuesday, September 16, 2014; TIME: 12:00 p.m. to 1:30 p.m.
WHERE: Glade Springs Resort
255 Resort Drive
Daniels, WV*The awards ceremony will be preceded by a brief reception.
U.S. Attorney Barry Grissom to Speak at Hutchinson Community CollegeRead the Press Release
HUTCHINSON, KAN. U.S. Attorney Barry Grissom will speak during Constitution Day on Wednesday, Sept. 17, at Hutchinson Community College.
Grissom’s speech will be titled, “The Constitution, the Bill of Rights and Beyond.” The presentation will begin at 10:20 a.m. in the Shears Technology Center on the Hutchinson Community College campus, 1300 N. Plum in Hutchinson.
Constitution Day is an annual event recognizing the signing of the U.S. Constitution in September 1787.
Grissom was appointed by President Barack Obama and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.Two Sentenced and One Pleads Guilty in Child Exploitation CasesRead the Press Release
FRESNO, Calif. — Today in federal court in Fresno, one man was sentenced to nearly 22 years in prison for producing child pornography, one was sentenced to 10 years in prison for receiving and distributing child pornography, and a third man pleaded guilty to receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.
Fresno Man Sentenced to Nearly 22 Years in Prison for Producing Child Pornography (1:12-cr-236 LJO)
Benjamin Ruiz, 29, of Fresno, was sentenced today by U.S. District Judge Lawrence J. O'Neill to 21 years and 10 months in prison for producing child pornography.
According to court documents, in July 2012, Fresno law enforcement received a lead from the Concord Police Department that indicated Ruiz had been producing child pornography in Fresno in September 2010. A grand jury returned an indictment against Ruiz charging him with the above crime on August 2, 2012. He has been in federal custody and pleaded guilty to producing child pornography on June 3, 2014.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office, and the Concord Police Department. Assistant United States Attorney Brian W. Enos prosecuted the case.
“While there is no way to undo the despicable crimes committed against these innocent and vulnerable children, it is a relief that the defendants found guilty of these crimes will no longer be in a position to carry out their criminal acts,” said Ray Greenlee, assistant special agent in charge for HSI San Francisco. “HSI will continue to work tirelessly with its federal and local law enforcement partners to seek justice for the young victims in these cases, who will bear the emotional and physical scars of these crimes for the rest of their lives.”
Former Kern County Man Sentenced to 10 Years in Prison (Case #: 1:13-cr-146 AWI)
Senior United States District Judge Anthony W. Ishii sentenced former Kern County resident Robert Aron Sprenkle, 36, to 10 years in prison, to be followed by 15 years of supervised release, for receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.According to court documents, between September 29, 2012, and November 4, 2012, Sprenkle received and distributed images of child pornography via the Internet. On May 16, 2013, he was arrested in Clearwater, Florida where he had relocated. This case is the result of an investigation by the United States Marshals Service with assistance from the Clearwater Police Department and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney David Gappa prosecuted the case.
Fresno Man Pleads Guilty to Child Pornography Offense (Case #: 1:12-cr-403 LJO)
In a separate case, Bradley Allen Vaine, 28, of Fresno, pleaded guilty to two counts of receipt and distribution of child pornography. According to court documents, on October 25 and 27, 2012, Vaine received and distributed images of child pornography via the Internet He has been in custody as a danger to the community and a flight risk since his arrest on November 6, 2012. He is scheduled to be sentenced on December 8, 2014, by U.S. District Judge Lawrence J. O’Neil. The plea agreement contemplates a sentence of 25 years in prison and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court at the hearing. Assistant U.S. Attorney David Gappa is prosecuting the case.This case was brought as part of Operation Sunflower, an international enforcement action, which ran from November 1 through December 7, 2012, spearheaded by HSI and aimed at rescuing victims and targeting individuals who own, trade, and produce child pornography. Operation Sunflower commemorated the one-year anniversary of a Kansas preteen victim who was located based upon a sunflower-shaped highway sign in the background of a picture.
All three cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Two Plead Guilty in Theft of Cooking Oil from Restaurants in R.I. and Mass.Read the Press Release
PROVIDENCE, R.I. – Andrew Jeremiah, 78, and his brother, Bruce Jeremiah, 72, of Cranston, R.I., owners and operators of Jeremiah Motors Corp., and Removal Services and Green Energy, in Central Falls, R.I., have pleaded guilty in federal court in Providence to conspiring to sell and transport used cooking oil stolen from restaurants in Rhode Island and Massachusetts to a processing plant in New Hampshire for processing to animal feed and biofuel.
Andrew and Bruce Jeremiah pleaded guilty to one count of conspiracy to unlawfully transport stolen goods with a value in excess of $5,000. They each face a statutory penalty of up to 5 years in federal prison and a fine of up to $250,000 when they are sentenced by U.S. District Court Judge John J. McConnell, Jr., on December 4, 2014. In addition, the defendants will forfeit $44,730 in cash and a 1984 Ford F700 truck seized from them during the investigation.
The guilty pleas are announced by United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI; and Central Falls Police Chief James J. Mendonca.
Anthony Simone, Sr., 60, of Cranston, a co-defendant in this matter, pleaded guilty on August 21, 2013, to one count each of conspiracy to transport in interstate commerce stolen goods and transport in interstate commerce stolen goods. He is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on October 1, 2014.
According to information presented to the court, between January 1, 2011, and November 9, 2012, Andrew and Bruce Jeremiah conspired to steal used vegetable cooking oil from restaurants in Rhode Island and Massachusetts, and to sell the product to a New Hampshire company that specializes in processing used cooking oil for use in animal feed and biofuel. During that time, Anthony Simone, Sr., was provided lists of businesses in Rhode Island and Massachusetts where quantities of used cooking oil could be found. About three times a week, between the hours of midnight and 6:00 am, Simone, using a truck registered to Jeremiah Motors, visited those businesses and others, and, without permission from the businesses, pumped the used cooking oil into a storage tank on the truck. The used cooking oil was transported to the Central Falls industrial facility operated by the Jeremiah brothers.
At the direction of the Jeremiahs, a New Hampshire company regularly sent tanker trucks to the Central Falls facility where the defendants loaded between 2,000 and 7,000 gallons of used vegetable oil per trip. More than 200,000 gallons of used cooking oil was stolen and sold to the New Hampshire processing plant.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Central Falls Police Department and the FBI.
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[email protected]Two Arrested in Identity Theft and Tax Refund SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging two individuals with conspiracy to defraud the United States, multiple counts of aggravated identity theft, wire fraud, and access device fraud. Laura Butler (39) and Cherica Daniels (32), both of Jacksonville, were arrested early Thursday morning. If convicted, the conspiracy charge carries a maximum penalty of five years’ imprisonment. The aggravated identity theft offenses each carry a mandatory prison term of two years, which must be served consecutive to any other term of imprisonment. The maximum penalty for each wire fraud count is 20 years, and the access device fraud count carries a maximum sentence of 10 years in prison.
According to the Indictment, Butler and Daniels agreed and conspired with each other to intentionally and deliberately disrupt the collection of federal income tax by, among other means, filing fraudulent income tax returns. Butler is alleged to have acquired the identification of others through her employment by an insurance company and, along with Daniels, to have filed false and fraudulent income tax returns with the Internal Revenue Service.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
The case was investigated by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Kelly S. Karase is handling the prosecution of this case.
Three Individuals Charged in Investment SchemeRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Jenifer E. Hoffman (37, Clermont), John C. Boschert (43, Apopka), and Bryan T. Zuzga (37, Coldwater, Michigan) with one count of conspiracy and eleven counts of wire fraud. Hoffman has also been charged with one count of filing a false tax return. If convicted, each faces a maximum penalty of 20 years in federal prison for each conspiracy and wire fraud count. Hoffman faces a maximum penalty of three years’ imprisonment for the false tax return count.
According to court documents, Hoffman, Boschert, and Zuzga defrauded over 100 victims out of more than $10 million, through investments offered in connection with a company called Assured Capital Consultants. As part of their solicitations, the defendants represented to investors that their money would be invested in a Performing Private Placement Investment, and that Boschert had connections to the trading program that was being used. Investors were told that their investments were safe and that none of their money would leave the attorney escrow account that belonged to Zuzga, who was represented as being an attorney licensed in Florida. Investors were further advised that their funds would be used as collateral for a line-of-credit, which would then be used in trading. None of those representations were true.
Zuzga was not an attorney licensed in Florida or any other state, and the funds were not deposited into any escrow account controlled by him. Instead, the three operated a scheme in which money from later investors was paid to earlier investors. The three also used some of the money from the scheme for themselves, including purchasing residences for Hoffman and Zuzga.
In a prior civil proceeding, the United States forfeited two residences belonging to Hoffman and Zuzga, which had been purchased with proceeds from the scheme. The United States obtained over $850,000 from the sale of the two properties. The proceeds from those sales were distributed to the victims of the scheme.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Roger B. Handberg, James Mandolfo, and Nicole M. Andrejko.
Tax Preparer Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday sentenced Tyree Middleton (38, Riverview) today to ten months in federal prison for preparing fraudulent income tax returns. The Court also ordered him to pay restitution to the Internal Revenue Service, in the amount of $8,000. Middleton was indicted on January 14, 2014. He pleaded guilty on July 1, 2014.
According to court documents, Middleton owned and operated Middleton Financial, LLC, a tax preparation and consulting business located in Tampa. As part of his tax preparation business, Middleton prepared and filed numerous federal income tax returns, for tax years 2008 and 2009, claiming the First Time Homebuyer Credit (“FTHC”) on behalf of his clients. Included with the filings were Internal Revenue Service (“IRS”) were Forms 5405, which laid out each taxpayer’s qualification for the credit.
In many of the returns filed by Middleton, the information to support the FTHC was materially false, in that the clients and/or the homes themselves did not actually qualify for the FTHC. Despite not qualifying for the credit, Middleton falsely represented to the IRS that the taxpayer was purchasing a specific home, which the taxpayer never purchased. Middleton filed dozens of fraudulent IRS Forms 5405 requesting over $270,000 in FTHC funds for his taxpayer clients.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Matthew Jackson.
Stella Man Sentenced to 13 Years in Prison for Transporting a Minor for Illicit SexRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Stella, Mo., man was sentenced in federal court today for transporting a minor across state lines for illicit sex.
Tong Yang, 46, of Stella, was sentenced by U.S. Chief District Judge Greg Kays to 13 years in federal prison without parole.
Yang, who pleaded guilty on May 1, 2014, admitted that he traveled to Minnesota to pick up a 15-year-old girl and bring her back to Missouri on Dec. 7, 2013, with the intent to engage in illicit sexual activity.
Yang had contacted the minor victim a couple of weeks earlier by sending her a friend request on Facebook. Yang talked to her about coming to live with him in Missouri and told her he owned his own business. The minor victim went to her mother’s house to retrieve some clothing on Dec. 6, 2013, and while there, she asked Yang to come get her. She snuck out and met with Yang in front of her mother’s house the next day, and they drove to a hotel in Neosho, Mo., where they engaged in unprotected sex.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Cassville, Mo., Police Department and the Neosho, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Stamford Man Sentenced to More Than 7 Years in Federal Prison for Distributing CrackRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GARY ENGLAND, 42, of Stamford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 92 months of imprisonment, followed by four years of supervised release, for his role in a southwestern Connecticut narcotics trafficking ring.
This matter stems from a six-month investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, 20 individuals were charged with various federal offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford. In addition, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, the investigation revealed that Marvin Wooten, also known as “Smash,” of Norwalk, was operating a significant crack cocaine distribution ring in Fairfield County. Between September 2012 and January 2013, Wooten regularly purchased multi-hundred gram quantities of cocaine from various sources of supply, including individuals who were selling cocaine out of a Bridgeport barbershop. He then converted the cocaine to crack cocaine and distributed it to other dealers and customers.
ENGLAND was Wooten’s most-trusted associate, to whom Wooten regularly supplied crack cocaine. ENGLAND distributed the crack to several individuals in Stamford and Norwalk who sold the drug to their own customers.
On October 2, 2013, ENGLAND pleaded guilty to one count of conspiracy to possess with the intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
Wooten also pleaded guilty and, on May 22, 2013, was sentenced to 120 months of imprisonment.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – including the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The U.S. Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Sinaloa Cartel Member Pleads Guilty to Drug ConspiracyRead the Press Release
CONCORD, NEW HAMPSHIRE – Jesus Gonzalo Palazuelos Soto, 51, of Mexico pleaded guilty today in United States District Court for the District of New Hampshire to conspiracy to distribute five or more kilograms of cocaine, announced United States Attorney John P. Kacavas.
Soto was arrested in Spain on August 7, 2012 after he and others arrived there to monitor the delivery of 346 kilograms of cocaine to Algeciras, Spain. The cocaine was hidden in a shipping container that was purported to contain glassware. The delivery resulted from negotiations between members of the Sinaloa Cartel, led by Joaquin Guzman-Loera, a/k/a “Chapo”, and undercover agents of the Federal Bureau of Investigation posing as members of an organized crime syndicate. Negotiations for the shipment began in 2009 and culminated in the delivery of the cocaine in 2012. Soto was responsible for supervising the loading of the cocaine in Brazil and monitoring its arrival in Algeciras.
A sentencing hearing has been scheduled for December 22, 2014. Soto is facing a mandatory minimum sentence of 10 years and a maximum sentence of life.
The case was investigated by the Federal Bureau of Investigation and prosecuted by First Assistant United States Attorney Donald Feith.Saratoga Resident Sentenced to Two and A Half Years in Prison for Failing to Report over $2.1 Million of IncomeRead the Press Release
SAN JOSE – Liping Liu was sentenced today to 30 months imprisonment, a $25,000 fine, and ordered to pay $744,248 in restitution for tax evasion, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.
According to the plea agreement, Liu was the receptionist and office manager for her spouse’s pediatric dental and orthodontic practice. Liu created a tax evasion scheme in which she skimmed money from various sources, including rental properties and her spouse’s dental and orthodontic practice. Liu admitted that she knew her actions were against the law and she was evading the assessment and payment of federal taxes throughout the course of her scheme.
Liu evaded taxes by funneling money from her husband’s practice into various bank accounts to prevent those funds from appearing in the business bank accounts. The only funds deposited into the business bank accounts were insurance payments, aside from thirteen personal checks in 2006 and one personal check in 2009. Liu admitted that she deposited the insurance proceeds exclusively into the business accounts because she knew the insurance company reported these payments to the IRS. Liu further admitted that she offered a 10% discount to dental clients if they paid in cash or by check, as long as they left the payee section on the check blank. Liu also modified checks, in the memo and payee fields to disguise the source of the payment. This enabled her to deposit the checks into the non-business accounts and evade taxes.
In addition, according to her plea agreement, from 2006 through 2010, Liu was a 50% partner in a limited liability corporation, HSL, which was created to hold rental property. Liu diverted rental checks paid to HSL to non-business bank accounts for the purpose of evading taxes on the HSL entity. She also changed the payee information on numerous rental checks.
From 2006 through 2010, Liu omitted $2,147,741.04 in gross receipts. This resulted in additional tax due and owing of $744,248.
Liu also admitted to providing incomplete and false information to the family bookkeeper, and engaging in a series of structured cash transactions from September 2008 to September 2009, which allowed her to continue to hide taxes from the IRS.
Liu, 56, of Saratoga was charged on March 19, 2014, with one count of tax evasion. She pleaded guilty to the charge on March 24, 2014.
The sentence was handed down by the Honorable Ronald M. Whyte, United States District Court Judge, in San Jose. Judge Whyte also sentenced Liu to a three-year term of supervised release. The defendant was ordered to surrender on December 1, 2014.
Assistant United States Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Liu indictment )
Sanderson Drug Dealer Sentenced to over 19 YearsRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard sentenced Arnold Clayton (42, Sanderson) to nineteen years and six months in federal prison for one count of distributing cocaine base and cocaine, and for violating his supervised release in a prior federal case. Clayton was also sentenced to a term of six years of supervision, after his release from prison.
Clayton pleaded guilty on June 9, 2014.
According to court documents, on July 13, 2012, Clayton sold cocaine base and cocaine to a confidential source for $320. Clayton was sentenced as a career offender because of his two previous federal drug convictions. On July 27, 1999, Clayton was sentenced to almost five years in federal prison for conspiracy to distribute cocaine and cocaine base. On August 16, 2007, he was sentenced to over eight years in federal prison for distribution of cocaine base. Clayton was still on supervised release for the 2007 case when he distributed cocaine base and cocaine in the current case.
This case was investigated by the Baker County Sheriff’s Office and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorneys Rodney Brown and Frank Talbot.
SYRACUSE, NEW YORK - Guilty pleas for violations of the Clean Water Act entered.Read the Press Release
SYRACUSE, NEW YORK - Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today the entry of guilty pleas for violations of the Clean Water Act by Mark Pullyblank, 53, of Caledonia, NY, William Clements, 53, of Victor, New York, and Crane-Hogan Structural Systems, Inc., 3001 Brockport Road, Spencerport, New York, (which employs Pullyblank and Clements) before the Honorable Thomas J. McAvoy in federal district court in Binghamton, NY.
Crane-Hogan is a company that uses hydro-demolition to renovate concrete structures. Hydro-demolition uses high pressure water to remove concrete from buildings such as parking garages, dams, bridges, and highways prior to resurfacing. The waste-water from the hydrodemolition process contains a slurry of industrial waste including concrete residue which has a highly caustic pH and total suspended solids, both of which are pollutants under the Clean Water Act. Mark Pullyblank was Crane-Hogan’s Project Manager in charge of renovation projects at the Binghamton Governmental Center Parking Garage and Johnson City Wilson Hospital Parking Garage throughout 2008 and 2009. He directed workers to discharge concrete slurry into the Susquehanna River for portions of two years, and into the Binghamton-Johnson City Publically Owned Treatment Works (POTW) during the summer 2009, both without Clean Water Act permits and without treatment for the high pH. William Clements was also a Project Manager in charge of the Johnson City Wilson Hospital Parking Garage renovation who participated in the unpermitted POTW discharges in 2009.
The Clean Water Act was enacted into law in 1972. Since that time it has been illegal to discharge pollutants into waters of the United States without a permit and without approved pretreatment prior to discharge. The Susquehanna River is a navigable water of the United States that provides drinking water to many thousands of individuals. It traverses through New York State, Pennsylvania, and Maryland and flows into the Chesapeake Bay and Atlantic Ocean. Mark Pullyblank and Crane-Hogan both plead guilty to felony violations of the Clean Water Act. William Clements pled guilty to a misdemeanor Clean Water Act violation. Pullyblank faces a maximum possible penalty of three years in prison and a $700,000 fine, plus supervised release thereafter. Crane-Hogan faces a maximum fine of $750,000 and five years of probation. If the plea agreement is accepted by the court, Crane-Hogan will be required to prepare and implement an environmental compliance plan to alter its policies and practices so as to reduce the likelihood of future criminal environmental conduct. William Clements faces a maximum possible term of incarceration of one year and a fine of $350,000 plus a term of supervised release. Sentencing will take place on January 23, 2014 in Binghamton, NY at 11:30AM for Mark Pullyblank, 1:30PM for Crane-Hogan, and 2:00PM for William Clements.
This case was investigated by Criminal Investigators with the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigations, and Special Agents of the United States Environmental Protection Agency. Assistance with this case has been provided by the New York State Office of General Services, the Binghamton City Engineer, and the Binghamton-Johnson City Publically Owned Treatment Works. The case is being prosecuted by Assistant United States Attorney Craig Benedict. Questions may be directed to AUSA Benedict at 315-391-1110.
Rutland Man Pleads Guilty to Heroin ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Nicholas Louras, 28, of Rutland, Vermont, has pled guilty in federal court to a charge of conspiring to distribute heroin in the Rutland, Vermont area from November 2013 to March 2014. Louras appeared today before Chief Judge Christina Reiss in United States District Court in Burlington. Judge Reiss accepted the plea of guilty and released Louras on conditions, including that he continue with his drug rehabilitation program.
Judge Reiss scheduled Louras’ sentencing for January 9, 2015 in Burlington. Under the terms of the plea agreement Louras faces a maximum possible term of imprisonment of twenty years but his sentence will ultimately be determined by Judge Reiss after completion of a pre-sentence investigation and report and consideration of the advisory U.S. Sentencing Guidelines. At the change-of-plea hearing Louras admitted to trafficking heroin in the Rutland, Vermont area. Louras also admitted that when he was stopped by New York State Police on March 17, 2014 in Albany County, New York with fourteen grams of heroin he was transporting those drugs back to Rutland, Vermont for distribution.
The United States is represented by Assistant U.S. Attorney Joseph Perella and the defendant is represented by Natasha Sen, Esq. This matter was investigated jointly by the Vermont State Police Drug Task Force, the FBI, the DEA, and the New York State Police.Rochester Man Sentenced on Gun Trafficking ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Paul Davis, 49, of Rochester, who was convicted of conspiracy to unlawfully deal firearms without a federal firearms license, selling firearms to a convicted felon, and being a felon in possession of a firearm, was sentenced to 72 months in prison by U.S. District Judge Frank P. Geraci, Jr. The defendant was also ordered to forfeit 10 firearms and over 500 rounds of ammunition.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that between August 2012 and February 6, 2013, Davis and Liddon Young conspired to unlawfully traffic firearms from the Atlanta, Georgia area to Rochester. Young supplied multiple firearms and rounds of ammunition from the Atlanta area to Davis, who then transported them and illegally resold them on the black market in Rochester.
Davis was arrested in Rochester on February 6, 2013 after selling a Georgia pistol to a confidential informant. Federal search warrants executed at Davis’s residence and business netted 10 firearms and several hundred rounds of ammunition. Young was arrested in Rochester on February 8, 2013 in possession of a loaded .380 caliber pistol. Federal search warrants executed at Young’s residences in Stone Mountain, Georgia resulted in the seizure of an additional firearm, hundreds of rounds of ammunition, a gun ledger, and other firearms trafficking paraphernalia.On June 25, 2014, Judge Geraci, Jr. sentenced Young to 15 years in prison for his role.
The sentencing is the culmination of an investigation on the part of on the part of Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins and the Rochester Police Department, under the direction of Chief Michael Ciminelli.Owner of Costa Rican Call Center Pleads Guilty <br /> to Defrauding Elderly Through Sweepstakes ScamRead the Press Release
A dual United States-Costa Rican citizen pleaded guilty today for his role in a $1.88 million sweepstakes fraud scheme that defrauded hundreds of elderly Americans.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Anne M. Tompkins of the Western District of North Carolina made the announcement.
Geoffrey Alexander Ramer, 34, of Costa Rica, pleaded guilty before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina to wire fraud and money laundering in connection with the telemarketing fraud scheme. Sentencing will be scheduled at a later date.
“Ramer preyed upon some of the most vulnerable members of our society, callously and repeatedly defrauding elderly Americans by stealing their life savings,” said Assistant Attorney General Caldwell. “We hope that today's guilty plea brings some solace to his victims. This prosecution sends a clear message to the next would-be con-artist: in protecting our citizens, the reach of the Justice Department will not stop at our country's borders.
“Ramer and his fellow con artists swindled their victims and pocketed people’s life savings,” said U.S. Attorney Tompkins. “If conscience is not enough to deter scammers from taking advantage of the elderly and vulnerable, the certainty that justice is coming should.”
According to his plea agreement, from 2008 through December 2013, Ramer owned and operated call centers located in Costa Rica. Ramer and his co-conspirators called U.S. residents, many of whom were elderly, and falsely informed them that they had won a substantial cash prize in a sweepstakes. The victims were told that in order to receive the prize, they had to send money to Costa Rica for a purported refundable insurance fee. After receiving the fee, Ramer and his co-conspirators contacted the victims again, and falsely informed them that the prize amount had increased and, therefore, the victims had to send additional money to pay for new purported fees. These attempts to collect additional money continued until the victims ran out of money or discovered the fraud. To mask that they were calling from Costa Rica, Ramer and his co-conspirators utilized VoIP phones that displayed a (202) area code, giving victims the false impression the calls were coming from Washington, D.C. Ramer often falsely claimed to be calling on behalf of a U.S. federal agency to lure victims into a false sense of security.
Plea documents state that, along with his co-conspirators, Ramer was responsible for causing more than $1.88 million in losses to hundreds of elderly Americans.
The case was investigated by the U.S. Postal Inspection Service, FBI, Internal Revenue Service – Criminal Investigation Division, Federal Trade Commission and the U.S. Department of Health and Human Services. This case is being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section.Owner of Alpha Diagnostics Indicted for $7.5 Million Health Care Fraud SchemeRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted the owner of Alpha Diagnostics, Rafael Chikvashvili, age 67, of Baltimore, Maryland, on health care fraud and other charges related to a scheme to defraud Medicare and Medicaid of more than $7.5 million. The indictment was returned on September 11, 2014, and unsealed today. Chikvashvili had an initial appearance today in U.S. District Court in Baltimore and was released under the supervision of U.S. Pretrial Services.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the indictment, Chikvashvili formed Alpha Diagnostics Services, Inc., which later became Alpha Diagnostics, LLC, in 1993, and always acted as Managing Member, Authorized Official, Managing Employee, President and Chief Executive Officer for Alpha Diagnostics. Chikvashvili holds a PhD in mathematics, but was never a medical doctor or licensed physician. Alpha Diagnostics was principally a mobile diagnostic medical service provider of X-rays, but also procured and transmitted mobile diagnostic ultrasound tests, electrocardiograms (“EKGs”), echocardiograms, and other medical tests. Alpha Diagnostics operated in Maryland, Delaware, Pennsylvania, Virginia and the District of Columbia.
The 12-count indictment alleges that beginning at least in 1997 through October 2013, Chikvashvili defrauded Medicare and Medicaid by creating false radiology, ultrasound and cardiologic interpretation reports; by submitting insurance claims for medical examination interpretations that were never completed by licensed physicians; by falsely representing to Medicare and Medicaid, as well as to treating physicians, that the interpretations had in fact been completed by actual licensed physicians; and by submitting insurance claims for radiology, ultrasound and cardiologic examinations (and their associated costs) that were never performed, and/or which were in excess of the number of examinations ordered by the treating physician.
Specifically, the indictment alleges that Chikvashvili instructed his non-physician employees to: perform interpretations of X-rays, medical tests, ultrasounds and cardiologic exams in lieu of licensed radiologists and physicians; draft a licensed “physician’s” examination report in the name of a licensed physician to which Chikvashvili caused a copy of the handwritten signature of the actual physician to be affixed to the report. The indictment alleges that the names and titles of physicians Chikvashili used were physicians who did not interpret the examinations, nor provide the medical findings to create the reports. If a patient caregiver contacted Alpha Diagnostics to question medical interpretations, Chikvashvili allegedly reassigned the test/examination to a licensed physician for a second interpretation without informing the licensed physician of the prior interpretation. In addition, Chikvashvili instructed a non-physician employee to represent that he was a physician while speaking with others on the phone.
According to the indictment, Chikvashvili and Alpha Diagnostics routinely submitted insurance claims to Medicare and Medicaid that, among other things, exaggerated the services performed by its technologists or exceeded the services ordered by the treating physician; overcharged for transportation costs; and falsely represented that Alpha Diagnostics was properly overseen by supervising physicians.
Finally, the indictment seeks forfeiture of at least $7.5 million, including two properties, luxury vehicles, bank and investment accounts, and a safe deposit box.
Chikvashvili faces a maximum sentence of 10 years in prison for health care fraud; a maximum of five years in prison for each of nine counts of making false statements; and a mandatory two years, consecutive to any other sentence imposed, for two counts of aggravated identity theft.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the HHS-OIG and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Mark W. Crooks, who is prosecuting the case.
Omaha Man Sentenced to 15 Years in Prison for Possessing a Firearm while Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Steven Payment of Omaha, Nebraska, was sentenced on September 15, 2014, to 15 years in prison by United States District Judge Laurie Smith Camp. Payment had previously pled guilty for his involvement in a conspiracy to distribute multiple pounds of methamphetamine in Douglas and Sarpy Counties. Payment’s sentence was increased 5 years as he was found to have possessed a handgun during the course of the conspiracy. After serving his sentence, Payment will be required to serve a Term of Supervised Release of 5 years.
This case was the result of an investigation by the Sarpy County Sheriff’s Office.
Oil Company Charged with Felony Clean Water Act ViolationRead the Press Release
U.S. Attorney Kenneth Polite announced today that XPLOR ENERGY SPV-1, INC. (“XPLOR”), an Oklahoma corporation located in Southlake, Texas, was charged today in a one-count bill of information with knowingly violating the Clean Water Act, Title 33, United States Code, Section 1319(c)(2)(A), in connection with their oil and gas production activities in the Breton Sound Area of the Gulf of Mexico.
According to the bill of information, from on or about October 1, 2009, and continuing through November 18, 2011, in the navigable waters of the United States and within the Eastern District of Louisiana, XPLOR., by and through its agents and employees acting within the scope of their agency and employment and for the intended benefit of the defendant, did knowingly discharge and cause to be knowingly discharged a pollutant, namely, produced water containing oil, from a point source (injection lines and disposal wells attached to the MP 35 Platform) into a water of the United States without a permit.
The case was investigated by the Criminal Investigation Division of the United States Environmental Protection Agency (“EPA-CID”) and the Criminal Investigation Division of the Louisiana Department of Environmental Quality (“DEQ-CID”). The case is being prosecuted by Assistant United States Attorney Matthew Coman.
(Download Bill of Information )
Newman Drug Organization Member Sentenced for Illegal Gun PossessionRead the Press Release
Huntington W.Va – United States Attorney Booth Goodwin announced today that William Petties, 33, of Huntington, West Virginia, was sentenced in federal court in Huntington to three years and ten months in federal prison on a charge of felon in possession of a firearm. On January 20, 2014, agents with the United States Drug Enforcement Administration searched the home of Petties’ girlfriend at 1130 28th Street in Huntington. Petties, who regularly stayed at the home, was outside when agents arrived with the search warrant. The search uncovered a loaded Springfield .40 caliber pistol, which was owned by Petties’ girlfriend, but which Petties admitted he jointly possessed and controlled. Petties was convicted in 2000 of aggravated robbery and is prohibited from possessing any firearm.
Petties is a former member of the drug trafficking organization operated by Kenneth Dewitt Newman, also known as “K-Kutta.” The investigation of the Newman Organization established that Newman, along with others, distributed cocaine, heroin, MDMA, marijuana, and prescription pills in the Huntington area.
This case was investigated by the United States Drug Enforcement Administration, and is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Newington Man Admits Operating Extensive Mortgage Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FILIPPOS MILIOS, also known as Filip Milios, 55, of Newington, pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to conspiracy and money laundering offenses stemming from his role in a mortgage fraud scheme that involved dozens of Connecticut properties.
According to court documents and statements made in court, from approximately June 2005 to July 2010, MILIOS and others conspired to defraud banks and mortgage lenders in obtaining dozens of mortgages for the sale of properties owned by MILIOS and others. The conspiracy involved the use of straw borrowers, false mortgage applications, false HUD-1 forms and fraudulent down payments in connection with the purchase of nearly 50 houses primarily located in Hartford, New Haven and Middlesex counties.
As part of the scheme, MILIOS purchased properties, either in his own name, in a limited liability corporation in which he had an interest, or in the name of a co-conspirator. MILIOS and others then recruited borrowers to purchase these properties. Unbeknownst to the lenders who extended mortgages to the borrowers, MILIOS and his co-conspirators submitted fraudulent documents in connection with the loan applications, including false HUD-1 forms, employment verification letters and rental verification letters.
MILIOS also made the down payments on behalf of the borrowers who were recruited to purchase the properties. Attorney Gabriel Serrano, who served as a closing attorney for most of the fraudulent transactions, often released the seller’s proceeds checks from closing to MILIOS before receiving the down payment, and MILIOS used the seller’s proceeds checks to purchase the down payment check for the same transaction. MILIOS also failed to disclose to mortgage lenders that he paid money to borrowers, mortgage brokers, and recruiters.
In pleading guilty, MILIOS also admitted that he engaged in a money laundering conspiracy with Serrano. The conspiracy involved Serrano’s disbursing the fraudulently-obtained loan proceeds to the private lenders who had loaned MILIOS money when he originally purchased the properties.
Lenders lost a total of approximately $5.6 million as a result of this scheme.
MILIOS pleaded guilty to one count of conspiracy to commit mail and bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of conspiracy to commit money laundering, which carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on December 8, 2014.
MILIOS was originally charged by criminal complaint in January 2013. He has been detained since March 20, 2014, when his bond was revoked.
On August 6, 2013, Serrano also pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering. He awaits sentencing.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation Division, the United States Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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(203) 821-3722 [email protected]Monroe County Woman Pleads Guilty to Participating in A Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 33-year-old Effort woman pleaded guilty today before Senior U.S. District Court Judge A. Richard Caputo to conspiring with others to distribute heroin in the Monroe County area during a six-month time period.
According to United States Attorney Peter Smith, the defendant, Tamika Davis, admitted to committing the crime between November 2013 and April 22, 2014.
Davis was charged in a criminal Information filed by the United States Attorney on August 15, 2014, following an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
Davis faces a potential maximum sentence of 20 years in prison and a $1 million fine. Judge Caputo scheduled sentencing in the case for December 17, 2014.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Monroe County Man Pleads Guilty to Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 21-year-old Tobyhanna man pleaded guilty today before Senior U.S. District Court Judge James M. Munley to distributing heroin in the Monroe County area between November 2013 and August 2014.
According to United States Attorney Peter Smith, the defendant, Kyle Westry, admitted to distributing and possessing with intent to distribute multiple bricks of heroin. A brick of heroin consist of 50 small bags.
Westry was charged in a criminal Information filed by the United States Attorney on September 10, 2014, following an investigation by the Drug Enforcement Administration and the Monroe County Drug Task Force.
Westry faces a potential maximum sentence of 20 years in prison and a $1 million fine. Judge Munley scheduled sentencing in the case for December 16, 2014.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****Mexican National Sentenced for Meth DistributionRead the Press Release
POCATELLO – Juan Ramon Yuen-Rodriguez, 29, of Sinaloa, Mexico, was sentenced today to 210 months in prison, followed by five years of supervised release for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered to pay a $500 fine. Yuen-Rodriguez pleaded guilty to the charge on May 24, 2014.
According to the plea agreement, on various dates, including August 14, 2013, Yuen-Rodriguez agreed with an undercover officer to deliver methamphetamine to an undercover officer in Heyburn, Idaho. While driving to the meeting, Yuen-Rodriguez, along with co-defendant Jose Felix-Burgos, were stopped by law enforcement. In a box in the back seat of the vehicle officers found 2024 grams of actual methamphetamine. At sentencing Judge Winmill commented that part of the reason for the sentence imposed was that he believed Yuen-Rodriguez’ sole purpose for coming to the United States was to sell large quantities of drugs. Co-defendant Felix-Burgos is scheduled to be sentenced October 7, 2014.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force.
The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Maryland Skilled Nursing Facility Agrees to Pay $1.3 Million to Resolve Allegtions That It Submitted False Claims for Rehabilitation TherapyRead the Press Release
Boston, MA – Episcopal Ministries to the Aging, Inc. (EMA), an Eldersburg, Md. based company that operates William Hill Manor, a skilled nursing facility in Easton, Md., has entered into an agreement to pay $1.3 million to resolve allegations that it submitted false claims for rehabilitation therapy purportedly provided by RehabCare Group East, Inc. (RehabCare), a subsidiary of Kindred Healthcare, Inc.
“Patients in nursing homes should not be left to wonder whether the therapy they receive is based on their own clinical needs, or is instead tied to the financial targets of the companies providing their care,” said Carmen M. Ortiz, United States Attorney for the District of Massachusetts. “This settlement, like others recently announced by this office, makes it clear that when a skilled nursing facility contracts with an outside rehabilitation therapy provider, the facility remains responsible for ensuring that its patients are receiving, and Medicare is paying for, reasonable and necessary care.”
This settlement resolves allegations that EMA submitted false claims to Medicare that sought inflated amounts of reimbursement based on the provision of unreasonable or unnecessary rehabilitation therapy that was dictated by financial considerations rather than patient needs.
In January 2010, William Hill Manor hired RehabCare to provide rehabilitation therapy at its facility. As with the prior settlements involving facilities that hired RehabCare, the United States alleges that EMA and William Hill Manor failed to prevent RehabCare from engaging in a pattern and practice of providing high levels of therapy that were not reasonable or necessary during so-called “assessment reference periods.” EMA billed Medicare patients at the highest therapy reimbursement level, and then provided less therapy to those same patients outside the assessment reference periods, when the facility was not required to report to Medicare the amount of therapy RehabCare was providing to its patients. In that way, RehabCare, EMA, and William Hill Manor “ramped up” Medicare patients’ therapy minutes when it served to maximize the reimbursement rate and correspondingly reduced the patients’ therapy minutes, regardless of patient need, when the time spent on that therapy would not affect the Medicare reimbursement rate. The government alleges that, as a result of RehabCare’s practice of “ramping,” EMA frequently billed Medicare for its patients’ care at the highest therapy-based levels, even though the patients frequently were not receiving therapy at those levels.
This settlement further resolves allegations that EMA and William Hill Manor failed to prevent other RehabCare practices designed to inflate Medicare reimbursement, including: (1) presumptively placing patients in the highest reimbursement level unless it was shown that the patients could not tolerate that amount of therapy, rather than using individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; (2) providing the minimum number of minutes of therapy required to bill at the highest reimbursement level while discouraging the provision of therapy in amounts beyond that minimum threshold, despite the Medicare requirement that the amount of care provided be determined by patients’ clinical needs; (3) arbitrarily shifting the number of minutes of planned therapy between different therapy disciplines to ensure targeted reimbursement levels were achieved; (4) providing significantly higher amounts of therapy on the final day of an assessment reference period in order to achieve the minimum level of therapy necessary to achieve the highest RUG level; and (5) reporting estimated or rounded minutes instead of reporting the actual minutes of therapy provided.
“Patient need must dictate the provision of Medicare benefits rather than the fiscal interests of providers,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “Today’s settlement demonstrates the department’s continued commitment to safeguarding both Medicare beneficiaries and taxpayer dollars by holding accountable all entities involved in billing for unnecessary services, including those that did not directly provide the unnecessary services.”
This announcement follows a $3.75 million settlement announced by this office and the Department of Justice on Sept. 5, 2014, which arose out of a related investigation involving two other skilled nursing facilities that allegedly retained RehabCare to provide rehabilitation therapy and then failed to prevent RehabCare from engaging in the practices described above in an effort to inflate amounts of Medicare reimbursement.
This matter was investigated by the Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation. The case was handled by District of Massachusetts Assistant United States Attorneys Gregg Shapiro and Patrick Callahan and Department of Justice Trial Attorneys Christelle Klovers and Rohith Srinivas.