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12 September 2014
District Man Sentenced to 35 Years in Prison for Shooting That Killed One Man, Wounded AnotherDefendant Opened Fire on Group of Young Men as They Walked Down Busy Public StreetRead the Press Release
WASHINGTON – Bernard Fleming, 23, was sentenced today to 35 years in prison for second-degree murder while armed and other charges involving a shooting on a busy public street that killed one man and wounded another, U.S. Attorney Ronald C. Machen Jr. announced.
Fleming, of Washington, D.C., was found guilty by a jury in July 2014, following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury found him guilty of two counts of assault with intent to kill and related weapons offenses. He was sentenced by the Honorable Robert E. Morin.
A co-defendant, Joseph Peoples, 23, also of Washington D.C., was sentenced today to a year in prison for a weapons offense and tampering with evidence in the case.
According to the government’s evidence, Fleming shot the victims at about 10:30 p.m. on Saturday, July 7, 2012, in the 1700 block of Seventh Street NW. The gunfire killed Michael Jones, 30, and injured Mr. Jones’s brother.
Earlier in the day, Fleming got into a physical altercation with Mr. Jones’s brother. Fleming, Peoples, and a third individual then followed Mr. Jones’s brother to his home, banged on the door, threatened him, and demanded that he come outside. They left after Mr. Jones’s brother did not come outside, but returned about 90 minutes later - this time standing outside a window, and at one point shining a laser inside. Concerned for his safety, Mr. Jones’s brother called a friend and Mr. Jones. Soon after that, Mr. Jones, his brother, and two friends set out to try to find Fleming and Peoples to settle the dispute. They encountered Peoples outside an apartment building in the 1700 block of Seventh Street NW, and the shooting followed.
Peoples pulled out a gun. Fleming, who was standing on a balcony above Mr. Jones’s group, began shooting down on the victims. Ballistics evidence suggests that Fleming fired at least 11 shots at the group. Mr. Jones and his friend both took out guns and fired back in defense of themselves and the others in their group. Mr. Jones was struck in the back of the head and was killed almost immediately. Mr. Jones’s brother suffered graze wounds to his chest.
After the shooting, Peoples ran back inside the apartment building, met up with Fleming, and stashed the guns underneath a stairwell; one of the weapons was partially dismantled.
In addition to the sentences in this case, Fleming and Peoples also were sentenced today for their roles in a drug conspiracy that operated in the Shaw area during the summer of 2012. In that matter, Fleming was sentenced to three years and Peoples to 21 months in prison.
In announcing the sentences, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences, the District of Columbia Office of the Chief Medical Examiner, and the U.S. Secret Service. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Erin O. Lyons and Jennifer Kerkhoff; Paralegal Specialists Alesha Matthews Yette, Fern Rhedrick and Mia Beamon; Intelligence Analyst Zachary McMenamin; Litigation Technology Specialist Leif Hickling; Victim/Witness Security Specialists Michael Hailey, M. Laverne Forrest and Debra Cannon, and Victim/Witness Advocate Tamara Ince. Finally, he commended the work of Assistant U.S. Attorneys S. Vinét Bryant and Kathryn Rakoczy, who prosecuted the case.
14-203District Man Sentenced to 20 Years in Prison for Killing Man in Robbery-Victim Was Accosted While Coming Home from WorkRead the Press Release
WASHINGTON – Deandre Shaheed, 19, was sentenced today to 20 years in prison after earlier pleading guilty to second-degree murder while armed in the slaying of a man who was on his way home from work, U.S. Attorney Ronald C. Machen Jr. announced.
Shaheed, of Washington, D.C., pled guilty in July 2014 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Jennifer Anderson. Upon completion of his prison term, Shaheed will be placed on five years of supervised release.
Two other men also pled guilty in July 2014 to charges in the case. Floyd Neal, 21, of Washington, D.C., pled guilty to one count of armed robbery and one count of carrying a dangerous weapon. Lafeyette Robinson, 21, also of Washington, D.C., pled guilty to one count of armed robbery. Neal and Robinson are to be sentenced Oct. 17, 2014.
According to the government’s evidence, on March 14, 2013, Shaheed, Neal, and Robinson decided to rob someone and armed themselves with a sawed-off shotgun. Robinson gave the shotgun to Shaheed. The group walked to the Deanwood Metro station in Northeast Washington, looking for a target.
Once there, they saw the victim, Akinwole Olu Williams, leaving the subway station. Mr. Williams, 31, who had completed his credits at Catholic University and was awaiting the formal graduation ceremony, was enroute home after work and after earlier attending a job fair. He was wearing a business suit and carrying two bags, one of which contained his job fair materials.
The group followed Mr. Williams and confronted him at about 11:40 p.m. in the 1000 block of 44th Street NE. Shaheed took the sawed off shotgun and pointed it at Mr. Williams, demanding his property. Mr. Williams resisted, and the two men wrestled over the shotgun in the street. Shaheed regained control of the weapon, pointed it at Mr. Williams, and shot him. The shot went through Mr. Williams’s job fair folder, through his hand, through his chest, and into his heart. He was taken to a hospital, but lifesaving efforts failed, and he died the following day.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Marcia Rinker; Paralegal Specialists Alesha Matthews Yette, Debra Joyner, and Kendra Johnson; Intelligence Analyst Zachary McMenamin, and Litigation Services Specialist Thomas R. Royal. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Deborah Sines and Michelle Bradford, and former Assistant U.S. Attorney Reagan Taylor, who prosecuted the case.
14-202Department of Navy Employee Sentenced to Federal Prison for Stealing over $22,000 from United States NavyRead the Press Release
Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, announced today that former Department of Navy employee Donna Lorraine Brown, age 45, of Millington, Tennessee, was sentenced yesterday by United States District Judge Sheryl H. Lipman to serve eight months in federal prison followed by one year of supervised release with two months of home confinement and electronic monitoring. Brown was also ordered to pay restitution in the amount of $22,500.19 to the Department of Navy. There is no parole in the federal system.
According to the criminal information and statements made in court, Brown was an employee of the United States Department of Navy assigned to the Navy Personnel Command Onboard Naval Support Activity Mid-South in Millington, Tennessee. Her primary duties included coordinating travel and processing travel reimbursement claims for Navy families of deceased active duty sailors.
Between June 2012 and March 2013, Brown filed approximately 19 false claims for travel reimbursement with the United States Navy using the personal identifying information (such as Social Security numbers) of family members of deceased Navy sailors. She then deposited the money that she received from these false claims into banking accounts controlled by her and her family members. The Navy’s investigation revealed that Brown unlawfully collected $22,500.19 from the Navy as a result of the false claims that she filed.
This case was investigated by the United States Naval Criminal Investigative Service. Assistant United States Attorney Leetra J. Harris represented the government.
Defendant Sentenced to Prison for Theft of Government Property and Aggravated Identity TheftRead the Press Release
Follow @NDFLNewsTALLAHASSEE, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that Porscha Thomas, 29, of Charlotte, North Carolina, was sentenced by United States District Judge Mark Walker to serve 45 months in federal prison. Judge Walker sentenced Thomas to serve 21 months in federal prison for theft of government property, and to a consecutive term of 24 months for aggravated identity theft. Thomas was also ordered to pay $86,402 in restitution.
Thomas’s charges stem from a traffic stop that occurred on February 8, 2012, in the Northern District of Florida. During the traffic stop, officers recovered approximately $52,194.00 in cash, 17 TurboTax debit cards in other people’s names, and receipts showing that those debit cards had been used. Further investigation revealed that fraudulently obtained income tax refunds had been loaded onto the TurboTax debit cards found in Thomas’s possession. Law enforcement was also able to obtain video footage showing Thomas using the TurboTax debit cards at a Publix Grocery Store in Crestview, Florida, and at a Walmart in Pensacola, Florida.
Ms. Marsh credited the successful prosecution of this case to the excellent investigative work and cooperative efforts of all the agencies involved. The case was investigated by the Internal Revenue Service, Homeland Security Investigations, and the Madison County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorney Herbert Lindsey.
Dayton Man Pleads Guilty to Shooting at VA Medical CenterRead the Press Release
CDAYTON, OHIO – Neil Richard Moore, 59, of Trotwood, Ohio, pleaded guilty in U.S. District Court today to one count of assault with a dangerous weapon. Moore admitted to shooting an individual at the Veterans Affairs Medical Center in Dayton on May 5, 2014.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Dayton Police Chief Richard Biehl and Glenn Costie, Director of the Dayton VA Medical Center (VAMC) announced Moore’s plea entered today before U.S. District Judge Thomas M. Rose.
According to court documents, Moore shot an employee of the VAMC with a .38 caliber revolver after confronting him in the basement of a building at the medical center. During a struggle with employees, the handgun discharged multiple times with one shot striking the victim in the leg. Moore then allegedly fled the scene in an elevator where he encountered another individual and pointed the handgun at this person.
Moore faces a maximum sentence of ten years in prison and a possible fine of up to $250,000. He has agreed to forfeit any firearm or ammunition involved in the crime.
Moore remains in custody pending sentencing, which is scheduled for 10:30am on December 12.
U.S. Attorney Stewart commended the prompt response to the reports of the active shooter to the FBI, Dayton Police and other law enforcement agencies including the VA Police Services, Montgomery County Sheriff Philip Plummer’s Office, the Ohio Department of Natural Resources Law Enforcement Division, the Five Rivers Metro Parks Police Department, the Good Samaritan Hospital Police, and the Kettering Police Department. Assistant U.S. Attorneys Dwight Keller and Brent Tabacchi are prosecuting the case on behalf of the United States.
Convicted Sex Offender Sentenced on Child Pornography ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jerald Kicinski, 50, of East Bethany, NY, who was convicted of receipt of child pornography, was sentenced to 20 years in prison and lifetime supervised release by Chief U.S. District judge William M. Skretny.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that between December 2010 and December 14, 2011, the defendant received child pornography on his computer at his residence in East Bethany. These images had been transmitted to the defendant in interstate commerce via the Internet. Kicinski was previously convicted of Sexual Abuse in the Second Degree in 2002 and Sexual Abuse in the Third Degree in 1990. Both of the defendant's prior convictions involved minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge.Community Oriented Policing Services Outlines Best Practices for Use of Body-Worn Cameras for Police OfficersRead the Press Release
Today the U.S. Department of Justice Office of Community Oriented Policing Services (COPS Office) released Implementing a Body-Worn Camera Program: Recommendations and Lessons Learned. The report analyzes some of the costs and benefits of law enforcement using body-worn video technology.
“Law enforcement agencies across the nation are contemplating how best to use body-worn cameras and these guidelines will help them weight the costs and benefits,” said COPS Office Director Ronald L. Davis. “There are many considerations when implementing a body-worn camera and this report will help chiefs and sheriffs make the best decision for their jurisdiction.”
The publication was developed jointly by the Police Executive Research Forum (PERF) and COPS through a cooperative agreement under the FY 2013 Community Policing Development Program. PERF conducted research on the use of body-worn cameras, identified promising practices and lessons learned from the field, and produced a set of guidelines for agencies interested in implement a body-worn camera program. Included in this effort was a one-day executive session with more than 200 police chiefs, sheriffs, scholars, representatives from federal criminal justice agencies, and other experts present to share experiences and lessons learned about body-worn cameras, to identify promising practices from the field, and to engage in a dialogue about the issues surrounding cameras.
The publication reviews the perceived benefits of body-worn cameras and considerations surrounding body-worn cameras before proposing a set of comprehensive policy recommendations that reflect the promising practices and lessons that emerged from PERF’s conference and its extensive discussions with police executives and other experts following the conference.
The policy recommendations cover all aspects of what a police department should consider when deciding to use body cameras including:
· Basic camera usage, such as who will be assigned to wear the cameras and where on the body the cameras are authorized to be placed;
· Recording protocols, including when to activate the camera, when to turn it off, and the types of circumstances in which recording is required, allowed or prohibited;
· The process for downloading recorded data from the camera, including who is responsible for downloading, when data must be downloaded, where data will be stored, and how to safeguard against data tampering or deletion;
· The length of time recorded data will be retained by the agency in various circumstances;
· The process and policies for accessing and reviewing recorded data, including the persons authorized to access data and the circumstances in which recorded data can be reviewed; and
· Policies for releasing recorded data to the public, including protocols regarding redactions and responding to public disclosure requests.
All COPS Office publications can be downloaded from the Resource Center and many can be ordered at no cost either through the Resource Center or by contacting the U.S. Department of Justice Response Center at 800-421-6770.
Related Materials:
COPS Office Report
Canadian National Pleads Guilty to Illegally Importing Prescription Drugs into the United StatesRead the Press Release
PITTSBURGH - A resident of Tainan, Taiwan, pleaded guilty in federal court to charges of conspiracy to commit crimes against the United States, money laundering, and wire and mail fraud, United States Attorney David J. Hickton announced today.
Taimur Khan, 32 and a Canadian national, pleaded guilty to three counts before United States District Judge Cathy Bissoon. Khan had been arrested on July 15, 2014 at Los Angeles International Airport upon his attempted entry into the United States.
In connection with the guilty plea, the court was advised that from 2004 to August, 2014, Javed Sunesra, Zuned Sunesra, and Bismilla Sunesra conspired amongst themselves and with others to import prescription drugs into the United States from India. The drugs sold by the Sunesras were not FDA approved, were not approved for sale in the United States, and were not authentic. Further, no prescription was required to obtain these drugs. Over the years, the Sunesras netted millions of dollars from their illegal enterprise. Zuned Sunesra has pled not guilty to the charges against him. Javed and Bismilla Sunesra remain at-large in India.
In early 2012, Khan joined the Sunesra’s conspiracy, and continued to work with the Sunesras until late 2013. At the time Khan joined the conspiracy, the Sunesras were having trouble obtaining payment processing for their illegal business. This presented a problem, as most consumers purchased the drugs over the Internet with a Mastercard or Visa. Hence, payment processing was a requirement for the business to remain in operation. As a result, Khan set up a fake website called “mygiftcard.biz.” The purpose of mygiftcard.biz was to make it appear to the payment processors that Khan was selling “gift cards” for merchants such as the Gap and JC Penny. In reality, the “gift cards” that Khan sold were being immediately redeemed for illegal drugs. This allowed consumers to continue to use credit cards to purchase illegal medications. This act also constituted wire and mail fraud.
Once the consumer paid for the gift card, Khan had the money from the purchase sent to him in Canada, and from there, after he subtracted his “commission,” he wired the remaining proceeds to Javed and Zuned Sunesra at their bank accounts located at the State Bank of Mauritius. After this transaction was completed, the consumer was shipped their drug product.
Judge Bissoon scheduled sentencing for Jan. 7, 2015 at 10 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Pending sentencing, the court continued the detention of Taimur Khan.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government. The Food and Drug Administration and the Internal Revenue Service conducted the investigation that led to the successful prosecution of Taimur Khan.
Broward Realtor Charged with Making False StatementsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Christopher White, 43, of Fort Lauderdale, was charged with three counts of making material false statements to U.S. Citizenship and Immigration Services (USCIS), in violation of Title 18, United States Code, Section 1001(a)(3).
According to the indictment, these statements were included on White’s April 16, 2014, application for naturalization submitted to the U.S. Department of Homeland Security, U.S. Citizenship and Immigration Services. The indictment charged that White made the following material false statements in his naturalization application: (1) that he had never claimed to be a U.S. Citizen; (2) that he had never committed, assisted in committing or attempted to commit a crime or offense for which he was never arrested; and (3) that he had never failed to support his dependents. If convicted, White faces a maximum penalty of five years in prison, three years of supervised release and a fine of up to $250,000 for each count.
Mr. Ferrer commended the investigative efforts of the FBI and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorneys Randy Katz and Thomas P. Lanigan.
An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bridgeport Man Sentenced to 5 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 LANDERS WILSON, 43, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 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.
Wooten referred to as WILSON as his “man.” For significant parts of the conspiracy, Wooten based his operations out of WILSON’s apartment on Hancock Avenue in Bridgeport, using the apartment to “cook” cocaine into crack cocaine, and as a base to sell crack to others. In addition to helping Wooten, WILSON sold crack cocaine to his own customers.
On July 16, 2013, WILSON pleaded guilty to one count of possession 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]Attorney General Recognizes Outstanding Performance of Five Employees of the U.S. Attorney's Office in ColoradoRead the Press Release
WASHINGTON – Five people from the Colorado U.S. Attorney’s Office were among the 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington D.C.
The District of Colorado was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building on Wednesday, September 10, 2014.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Assistant U.S. Attorney (AUSA) Judith Smith received an award for Superior Performance as an Assistant U.S. Attorney who works on criminal prosecutions. AUSA Smith was recognized for her for her groundbreaking child pornography trial prosecutions and appellate advocacy in United States v. Mueller, United States v. Franklin, and United States v. Sturm. As a result of her extraordinary legal and forensic work in Mueller, over 35 child victims were rescued from sexual abuse. In Franklin, AUSA Smith appears to have been the first federal prosecutor ever to obtain a guilty verdict from a jury on child pornography “advertising” charges for the use of Gigatribe software, resulting in a 100 year sentence. In Sturm, she obtained an en banc opinion from the Tenth Circuit Court of Appeals, establishing a pro-government rule for proof of interstate commerce in child pornography cases. Through her dedication and tireless work, AUSA Smith has obtained convictions and rulings that have saved dozens of children and punished their abusers.
Assistant U.S. Attorney (AUSA) Amanda Rocque received an award for Superior Performance as an Assistant U.S. Attorney who works on civil matters. AUSA Rocque was recognized for her outstanding work spearheading a highly successful initiative to pursue oil and gas companies that defraud the United States of royalty payments. AUSA Rocque mastered the complexities of how oil and gas companies should calculate royalties due for mineral resources extracted from federal land. She trained agents to detect potential royalty fraud, thereby building a base of investigative expertise. AUSA Rocque’s tenacity and careful attention to detail in these investigations has resulted in a string of multimillion-dollar recoveries for the United States and a vigorous, ongoing fraud-detection program.
Special Assistant U.S. Attorney (SAUSA) Beth Gibson, who is assigned to the U.S. Attorney’s Office from U.S. Immigration and Customs Enforcement (ICE) received an award for Superior Performance Award as a SAUSA. Gibson was recognized for her outstanding contributions to the District of Colorado, including her work on two complex cases. Ms. Gibson tried two complex cases, involving forced labor and a Hobbs Act robbery, to verdict. She also successfully resolved several complex worksite enforcement investigations. Ms. Gibson carries one of the heaviest caseloads in the Colorado U.S. Attorney’s Office Criminal Division, has taken the lead for the office on the Department’s immigration benefit fraud initiative, and has managed the national Special Assistant United States Attorney program for United States Immigration and Customs Enforcement-Homeland Security Investigations participants.
Lisa Lara received an award for Superior Performance in a Litigative Support Role. Lara was recognized for her outstanding and creative work in developing spreadsheets and databases to track and analyze complex and voluminous medical information in multifaceted health care fraud investigations. In her work as a health care fraud paralegal, Ms. Lara has consistently taken the initiative to create custom electronic mechanisms that make it possible to efficiently track and analyze data, ranging from Medicare policies to patient records. She developed several highly useful templates for tracking data that will streamline future national health care fraud investigations.
Victoria “Tori” Soltis received an award for Superior Performance in Administration. Soltis was recognized for her outstanding service as an Administrative Specialist. Over the past four years, Ms. Soltis has supported all areas of administration including overseeing the Special Assistant United States Attorney/Special Attorney Program, coordinating the upgrading of the office phone system in three offices, and reviewing numerous floor plans that saved hundreds of thousands of dollars for her district.
“The depth of talent at the Colorado U.S. Attorney’s Office is impressive,” said Colorado U.S. Attorney John Walsh. “It was an honor to join these five recipients as they were recognized by the Attorney General and the Department for their outstanding contributions to our mission. Colorado was well represented when looking at the number of districts recognized nationally.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Atlanta Man Sentenced for Interstate Transportation of 17-Year-Old Girl for ProstitutionRead the Press Release
ATLANTA – Johnathon Kelly has been sentenced to eleven years for interstate transportation of a minor for prostitution.
“This defendant took advantage of a young girl who was especially vulnerable, having run away from her home in Alabama, and exploited her for his personal gain,” said United States Attorney Sally Quillian Yates. “But she was saved as a result of the training and diligence of two state and local law enforcement officers who, during a routine traffic stop, recognized that the defendant might be sexually exploiting this child. The officers’ suspicions proved to be well-founded.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Johnathon Kelly serves as a reminder to all that there are people like him waiting for the opportunity to exploit our nation’s youth. Today’s sentencing of Kelly also illustrates that there are dedicated law enforcement officers who are aware of this type of criminal activity and who remain vigilant in efforts toward protecting those being exploited.”
According to United States Attorney Yates, the charge, and other information presented in court: On or about November 22, 2012, Kelly drove 17-year-old R.W. from her home in Birmingham, Ala., to Atlanta, Ga. After R.W.’s arrival in Atlanta, Kelly posted photographs of R.W. on an Internet website. Using multiple Internet ads of R.W., Kelly obtained prostitution clients for the girl, both in and outside Georgia – including the states of Louisiana and Texas. Kelly caused R.W. to engage in prostitution at various hotels, including hotels in Augusta and Norcross, Ga., Bossier City, La., and Dallas, Texas.
R.W. was rescued from Kelly on January 9, 2013, after Kelly was stopped for speeding while driving on Interstate 20. R.W. was a passenger in the vehicle. A Greene County Sheriff’s deputy, who had recently undergone training in identifying human trafficking victims, and a Georgia State Patrol officer, involved in the traffic stop noticed that R.W. appeared frightened of Kelly; separated R.W. from Kelly; and, after briefly interviewing her, discovered that Kelly was causing R.W. to engage in prostitution.
Kelly, 31, of Atlanta, GA, was sentenced to eleven years in federal prison, to be followed by 20 years of supervised release. He must also register as a sex offender as a condition of his supervised release. Kelly must also pay the victim $7,500 in restitution. Kelly pleaded guilty on June 30, 2014.
The case was investigated by the Federal Bureau of Investigation, Georgia Bureau of Investigation, Greene County Sheriff’s Office, and Georgia State Patrol.
Assistant United States Attorneys Mary F. Kruger, Richard S. Moultrie, Jr., and Susan Coppedge prosecuted the case.
This case is a part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Abilene Man Sentenced to 15 Years in Federal Prison on Child Pornography Production OffenseRead the Press Release
ABILENE, Texas — A 25-year-old Abilene, Texas, resident, Johnny Ray Martinez, was sentenced on Wednesday, by U.S. District Judge Jorge A. Solis, to 15 years in federal prison on a child pornography production offense, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Martinez pleaded guilty in May 2014 to one count of attempted production of child pornography. He has been in custody since his arrest in February 2014 on a related criminal complaint.
According to documents filed in the case, in January and February 2014, Martinez used cell phones to communicate with a female minor whom he had previously met in person, and whose profile he had located online. He initially communicated with the girl anonymously, using alias online identities. He used Pinger, an online texting application, and Facebook, to chat online and text with the female minor. Martinez became sexually explicit with the girl, whom he knew to be 15-years-old, and on more than one occasion, he sent the girl a sexually explicit photo of himself.
After his conduct was reported to law enforcement, an investigation was initiated, during which a U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agent consensually assumed the identity of the female minor. Communication continued between Martinez and the person Martinez believed to be the 15-year-old girl, with Martinez again sending sexually explicit images of himself.
On February 5, 2014, Martinez used his cell phone to communicate with the person he believed to be the 15-year-old girl and asked her to send him a photograph of her genitals. Although no image was created as a result of Martinez’s request, the request amounted to an attempt by him to cause a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI and the Abilene Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
48th Conviction Caps Nearly 5-year Central Ohio Heroin ProbeRead the Press Release
COLUMBUS— Federal, state and local authorities announced the 48th conviction Friday in "Operation Buckeye Storm," a nearly 5-year multi-agency investigation responsible for dismantling a Central Ohio-based heroin trafficking organization. This final conviction caps an investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Delaware County Sheriff’s Office, and the Columbus Division of Police.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Delaware County Sheriff Russell L. Martin, and Columbus Police Chief Kim Jacobs announced the 48th and final defendant charged, Fernando Vargas-Trigueros, who pleaded guilty in federal court Friday to charges related to manufacturing and distributing heroin.
Operation Buckeye Storm commenced in March 2010 after special agents connected a loose network of heroin traffickers who were already under scrutiny by local authorities.
Investigators found that the ring, organized around cells based in Central Ohio, used traffickers to move loads of heroin and other drugs from Mexico for subsequent sale in and around Columbus. After arriving in in the United States, the contraband, which also included cocaine and pills, was sold to distributors nationwide.
“Operation Buckeye Storm has played a significant role in combatting the sales and abuse of heroin in Central Ohio,” said U.S. Attorney Stewart. “This is a great example of dedicated law enforcement on every level.”
"Today marks an important milestone in the effort against the heroin problem that is wreaking havoc in Central Ohio," said Miller, Special Agent in Charge, HIS. "I applaud the work of the dedicated men and women in law enforcement who spent countless hours meticulously dismantling this narcotics scheme over the last five years. But our work is not done. We must continue to collaborate with our law enforcement partners as well as the treatment and prevention community on an aggressive and holistic approach to combatting this problem."
“The Delaware County Sheriff’s Office is grateful for the partnership with our colleagues at the federal level,” said Martin, Delaware County Sheriff. “As we all know, these criminal operations extend well beyond any specific jurisdictional boundary. With the combined resources at the local, state and federal level we can have a more significant impact on the illegal trafficking and distribution of heroin. We are all acutely aware of the quality of life impact heroin and opiate abuse is having in our communities.”
“Dedication and teamwork led to the investigation and convictions of heroin dealers who fueled the heroin epidemic in Central Ohio,” Columbus Police Chief Jacobs said. “The Columbus Division of Police hopes with these convictions, we’ve made a dent in the trade and severed the supply for heroin addicts, many who want to overcome their addiction.”
In addition to the convictions of 48 individuals involved in the scheme, authorities seized nearly a half million dollars in cash, nearly 9,000 grams of heroin, 43 grams of cocaine, 14 firearms and other contraband.
In total, the first 47 individuals convicted have been sentenced to 1,842.5 months, or 153 years, imprisonment for the drug related charges.
U.S. Attorney Stewart commended the cooperative investigation by the HSI, Delaware County Sheriff and Columbus Police, and the Assistant U.S. Attorneys who have prosecuted the cases.
30, 20 and 10 Year Sentences Handed Down for $37 Million Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — Three Sacramento-area residents were sentenced today for their roles in the Diversified Management Consultants Ponzi scheme, United States Attorney Benjamin B. Wagner announced. Christopher Jackson, 46, of Elk Grove, was sentenced to 30 years in prison; Michael Bolden, 60, of Sacramento, was sentenced to 20 years in prison; and Victor Alvarado, 53, of Sacramento, was sentenced to 10 years in prison.
United States District Judge Troy L. Nunley sentenced each defendant during a daylong hearing in which he heard from many defrauded investors and an FBI forensic accountant. At the end of the day, the court determined that three remaining co-defendants will be sentenced at a later date. After hearing from victims, Judge Nunley characterized the scheme as outright greed saying, “When you had an opportunity to stop, even when it involved your own family members, you didn’t. This is one of the worst fraud schemes I have ever seen.”
According to court documents, between 2003 and 2009, Diversified Management Consultants (DMC) purported to help people invest money in real estate development and save their homes from foreclosure. In reality, DMC was an investment fraud scheme that defrauded at least 240 people out of approximately $36,950,000. The defendants ran various investment clubs under the DMC umbrella. They induced people to invest their ordinary savings, tax-deferred retirement savings, and the proceeds of cash-out residential loan refinancing. They told investors that their money would be used for purchasing property and building structures for a real estate venture. In fact, victim money went to pay other investors’ bogus returns on investment and to pay for the defendants’ personal expenses, including luxury lifestyle expenditures. Even as DMC was failing, Bolden urged his subordinate club presidents to recruit still more investors to “keep the lights on” by using new funds to pay returns to earlier investors.
Bolden was the president of DMC and pleaded guilty to one count of wire fraud. This was not Bolden’s first federal fraud conviction. In 1994, Bolden was sentenced to 21 months in prison for conspiracy, loan fraud, and securities fraud in connection with an earlier investment fraud scheme.
Jackson was the president of Genesis Innovations. The only defendant to go to trial, a jury convicted him of six counts of wire fraud. The evidence at trial established that out of the $10 million he took from 80 investors, Jackson invested no more than about $2.5 million in developing real estate. He used the rest to pay false returns to other investors and to live in a way that he himself compared to an entertainment or sports star. Jackson used the Genesis Innovations account to obtain a Lamborghini, a Rolls Royce, a BMW, and a Range Rover. He employed a personal chef and a bodyguard who at times carried Jackson’s cash for him in a metal briefcase. Jackson took an entourage of guests on annual trips to Las Vegas where they joined him at the finest hotels and restaurants. He used over $1 million from his investment club account to go shopping, buy jewelry, and to landscape his house.
Alvarado was the president of Equishare. Alvarado pleaded guilty to one count of conspiracy and one count of making false statements. Alvarado was the one who found a way for DMC to have access to victims’ tax-deferred retirement accounts through a third-party self-directed IRA administrator. When interviewed by the FBI about his involvement in DMC, Alvarado lied.
Garry Bradford, 65, of Sacramento, was the president of Millenium Capital Group. Bradford pleaded guilty to four counts of wire fraud. He used victim money for Ponzi payments and also for gambling at area casinos. His sentencing is set for September 18, 2014. Nicholo Arceo, 41, of Sacramento, was the president of Envision. He pleaded guilty to conspiracy. His sentencing is set for October 2, 2014. Erica Arceo, 46, of Sacramento, was an in‑house attorney at DMC. She pleaded guilty to conspiracy and is no longer eligible to practice law. Her sentencing is set for September 18, 2014.
“Bolden, Jackson and their co-defendants cruelly took advantage of their victims, extracting from many of them a lifetime of hard-earned savings,” said U.S. Attorney Wagner. “They may have destroyed his victims’ dreams of financial security in retirement, but their own retirement in federal prison will be considerably worse.” U.S. Attorney Wagner cited the outstanding work of FBI Special Agent Richard Snodgrass as critical to dismantling the complex investment fraud scheme, which required the analysis of dozens of bank accounts and interviews of scores of victims of other witnesses.
“This egregious crime siphoned funds from investors to support the criminals’ lavish lifestyles and keep the Ponzi scheme afloat instead of fulfilling the promise of substantial return on their investments. As this case demonstrates, potential investors must carefully research both the investment and the people who are soliciting funds prior to investing in any opportunity. If it sounds too good to be true, many times it is,” said Assistant Special Agent in Charge John Gliatta of the FBI’s Sacramento division. “The FBI is committed to identifying and investigating those who abuse trust to commit large-scale fraud to ensure that such criminals will face justice.”
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Matthew D. Segal and Jared C. Dolan prosecuted the case.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force that was established to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, please visit www.StopFraud.gov.
11 September 2014
York Man Indicted for Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury sitting in Harrisburg, Pennsylvania returned a superseding indictment yesterday against Daniel Curran, age 40, of York. The superseding indictment charges Curran with Production of Child Pornography, Receipt of Child Pornography and Possession of Child Pornography.
According to United States Attorney Peter Smith, Curran sexually assaulted a nine year old boy on multiple occasions and recorded the assaults of the child. In addition, the FBI located over 40,000 images of child pornography on Curran’s computer and thumb drives. Curran also purchased and received dozens of videos containing child pornography through the mail.
If convicted, Curran faces a maximum sentence of up to 70 years imprisonment, a mandatory minimum of 15 years imprisonment on the Production offense and a 5 year mandatory minimum on the Receipt offense, as well as a $750,000 fine.
This investigation was conducted by the Federal Bureau of Investigation and the Northern York County Regional Police Department. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
United States Settles False Claims Act Allegations Against Florida-Based Sleep Clinic and Two Physicians; Joins Lawsuit Against Two Additional DoctorsRead the Press Release
Jacksonville, Florida - The United States has formally settled part of, and joined in part of, a lawsuit brought by a whistle-blower that alleges a Northeast Florida based sleep clinic intentionally billed the government for millions of dollars of services that were not medically necessary, and, in some instances, were never actually performed. The qui tam complaint, filed by a former employee of the clinic, alleges that the defendants – a sleep clinic and four physicians – violated the False Claims Act (FCA) by knowingly submitting false claims to the government for payment.
The government announced today that it had reached a settlement with the primary defendant, the Sleep Medicine Center, and two physicians – Dr. Hubert Zachary and Dr. George Restea. In reaching this settlement, the parties resolved allegations that, from January 1, 2010, until November 13, 2013, Zachary ran the Sleep Medicine Center, a clinic that treated patients for sleep-related disorders. Rather than treat patients in accordance with Medicare and TRICARE regulations, the United States contended that Zachary and the Sleep Medicine Center submitted claims for polysomnographic sleep studies and psychological testing that were not medically necessary, were not conducted by appropriately licensed individuals, or were not actually performed. Further, the United States alleged that, while Restea agreed to act as the Medical Director of the Center, he failed to properly supervise the center as he agreed to do. The Sleep Medicine Center agreed to pay $200,000 to resolve the claims and both the Center and Zachary voluntarily agreed to be excluded from participation in the federal healthcare programs for 8 years. Restea agreed to pay nearly $100,000 to resolve the claims.
Today’s actions mean that the government will move forward against remaining defendants Dr. John DeCerce and Dr. George Young. The government contends that these individuals also agreed to act as medical directors and staff physicians. While these doctors certified that they would supervise the clinic, the government alleges that the doctors merely lent their names in exchange for compensation. But for these physicians’ involvement, the lawsuit alleges, the Sleep Medicine Center would not have been able to bill the federal healthcare programs. For example, the government alleges that Dr. Young signed Durable Medical Equipment orders for patients that he never saw and Dr. DeCerce sleep study interpretations even when the machines allegedly performing the approved studies were broken.
This lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Donna Nichols, a former employee at the clinic. Under those provisions, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Nichols will receive more than $60,000 as part of today’s settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Department of Justice along with the Department of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against the defendants was filed in the U.S. District Court for the Middle District of Florida and is captioned United States ex rel. Nichols v. Sleep Medicine Center et al.
United States Attorney’s Office Announces Indictments of Four Marion County Men on Violent Crime ChargesRead the Press Release
The four men account for 12 prior felony convictions and represent the worst-of-the-worst
INDIANAPOLIS – Josh J. Minkler, the Acting United States Attorney, announced today the federal indictments of four Marion County men for violent crimes committed in Indianapolis this summer. The defendants include:
Joe Jones, 33, Indianapolis, felon in possession of a firearm
Jacques Boyd, 24, Indianapolis, felon in possession of a firearm
Shane Schmutte, 30, Indianapolis, felon in possession of a firearm
William Ballard, 25, Indianapolis, two counts, robbery involving a controlled substance“Using the federal hammer to prosecute violent criminals, has been and will remain the top priority of this office,” said Minkler. “Working with our Federal and Indianapolis Metropolitan Police Department partners, we will continue to use every resource possible to make our communities safer.”
The Jones indictment alleges that on May 2, 2014, he was found to be in possession of a 9mm handgun. Jones is a convicted felon, and therefore is not legally entitled to possess a firearm. His extensive criminal history includes felony convictions in Marion County for multiple robberies, battery, and possession of a firearm by a serious violent felon. According to state court documents, Jones was stopped by an IMPD officer for a traffic violation. Jones fled the scene of that stop in the vehicle he was driving, striking other vehicles in the process. An officer observed Jones throw the handgun from his vehicle and once the pursuit ended, recovered the weapon.
The Boyd indictment alleges that on July 3, 2014, he was found to be in possession of a .40 caliber handgun. Boyd’s criminal history includes convictions in Marion County for felony burglary, auto theft, battery, and resisting law enforcement. According to state court documents, Boyd was driving in the area of 30th Street and Emerson Way when he pointed a firearm at occupants of a second vehicle. Once IMPD officers made contact with Boyd, they determined that he had the handgun in his waistband.
The Schmutte indictment alleges that on August 5, 2014, he was found to be in possession of a .40 caliber handgun. Schmutte’s criminal history includes felony convictions in Marion County for multiple robberies and burglary. According to state court documents, Indianapolis Metropolitan Police Department officers were dispatched to the 6300 area of the Monon Trail. As officers approached a group of individuals believed to be involved in the disturbance, Schmutte was observed walking away from the group. An IMPD officer observed Schmutte remove a pistol from his waistband and throw it in the nearby canal. The Indianapolis Fire Department Dive Team recovered the weapon from the canal.
The Ballard indictment alleges he entered two Indianapolis CVS Pharmacies in May of this year and robbed them of Percocet tablets. In both robberies, he approached the pharmacy counter and presented the employee there with a note demanding the narcotic. In one robbery, he verbally threatened that he had a gun and placed his hand in his pocket as if to imply he had a weapon.
FBI Special Agent in Charge (SAC) W. Jay Abbott recognized the dedicated FBI Special Agents, IMPD Officers and Assistant United States Attorney's for their concentrated efforts in identifying and arresting individuals that commit or threaten force, violence, or fear while engaging in heinous illegal activities. “Our law enforcement partnerships are essential in combating violent street crime and ensuring our neighborhoods remain safe,” said Abbott.
“I would like to thank the Indianapolis Metropolitan Police Department for their diligent work on these cases,” stated ATF Special Agent in Charge Michael Boxler. “It is a positive collaboration when ATF works with our law enforcement partners to remove violent criminals from our community.”
Indianapolis Metropolitan Police Chief Rick Hite said, “I am very pleased with the relationship we enjoy with U.S. Attorney’s Office in pursuing criminals who illegally possess firearms. We will continue to aggressively arrest and prosecute anyone who disrupts the safety of our communities.”
The United States Attorney’s Office just last week, hosted the Attorney General’s Advisory Committee meeting in Indianapolis. The goal of the meeting was to have United States Attorneys from around the country make recommendations on best practices to help reduce violence and help make our communities safer. One recommendation was to focus on the most violent offenders and use federal prosecutorial tools keep them off our streets. “We took those recommendations seriously and have demonstrated our resolve to help reduce violent crime,” said Minkler.
According to Special Assistant U.S. Attorney Thomas Lupke, who is prosecuting three of the cases for the government, Schmutte and Jones face from fifteen years to life in federal prison if convicted. Boyd faces 10 years if convicted. According to Assistant United States Attorney Jeffrey D. Preston who is representing the government in the Ballard case, he faces up to 20 years if convicted.
An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two New Jersey Construction Employees Admit Tax Charges and Other Fraudulent SchemesRead the Press Release
TRENTON, N.J. – Two employees of related Parsippany, New Jersey,-based construction companies today admitted underreporting significant amounts of cash income on their tax returns, U.S. Attorney Paul J. Fishman announced.
Joseph Carsillo, 46, of East Hanover, New Jersey, pleaded guilty to an information charging him with one count of subscribing to a false personal federal income tax return for calendar year 2010, and one count of bankruptcy fraud. Carl J. Corso, 59, of Hamilton Township, New Jersey, pleaded guilty to an information charging him with one count of subscribing to a false personal federal income tax return in calendar year 2010, and one count of engaging in a mail fraud scheme to defraud the state of New Jersey with respect to unemployment compensation benefits.
The defendants were previously charged in separate complaints in November 2013. Both of the pleas were entered today before U.S. District Judge Michael A. Shipp in Trenton federal court. Charges against a third defendant, Frank Chimento, III, 46, of Verona, New Jersey, remain pending.
According to the documents filed in this case and statements in court: Chimento Construction, Chimento Construction Services, and FAC Construction, were commingled companies specializing in commercial masonry and concrete work (the “Chimento Companies”). From 2008 through 2011, the Chimento Companies’ primary construction job was the Palmer Square project in Princeton, New Jersey. Chimento Companies operated a cash payroll for a significant portion of the wages paid to employees during the period 2006 through 2011.
Carsillo started working for the Chimento Companies in 2007 and was the project superintendent at Palmer Square. He admitted that he received cash wages from the Chimento Companies of $66,865 in 2010, which he failed to include on his tax return. He also admitted in court that he failed to include cash wages of $58,161 on his 2009 return and $42,440 on his 2011 return.
Carsillo also admitted that he made false statements at a bankruptcy hearing on April 28, 2011, regarding his combined current monthly income and his monthly gross wages for the prior six-month period.Corso started working for the Chimento Companies on Aug. 12, 2009 and worked through 2011. In addition to payroll checks, Corso requested and received cash wages from the Chimento Companies. He disclosed to his return preparer only the wages he received by payroll check and deliberately omitted the cash payments and certain supplemental paychecks from his personal tax returns despite knowing that these payments should have been included on these returns.
Corso received unreported cash income of $52,780 in 2010, as well as unreported income of $10,074 in 2009, and $34,492 in 2011.
Corso further admitted that on Nov. 1, 2009, he falsely advised the N.J. Department of Labor and Workforce Development that he was no longer working and reactivated an earlier application for unemployment benefits. He collected $19,988 in unemployment benefit checks through the U.S. mail.
As part of their guilty pleas, the two defendants agreed to make full restitution to the IRS for all losses resulting from the filing of false tax returns. Corso agreed to make restitution to the NJDOL-WD with regard to his fraudulent unemployment compensation claim.The charge of subscribing to a false tax return is punishable by a maximum potential penalty of three years in prison; the charge of mail fraud is punishable by a maximum potential penalty of twenty years in prison; and the charge of bankruptcy fraud is punishable by a maximum potential penalty of five years in prison. All charges are punishable by a maximum $250,000 fine. Sentencing for both defendants is scheduled for Dec. 18, 2014.
U.S. Attorney Fishman praised the special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Cheryl Garcia New York Regional Office; and special agents of IRS-Criminal Investigation, under the leadership of Acting Special Agent in Charge Jonathan D. Larsen; for investigation leading to today’s guilty pleas. He also thanked the N.J. Department of Labor and Workforce Development, under the leadership of Commissioner Harold J. Wirths, for its assistance in the investigation.The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations in the complaint against Chimento are merely accusations, and he remains innocent unless and until proven guilty.
14-321Defense counsel: Carsillo: Lorraine S. Gauli-Rufo Esq., Assistant Federal Public Defender, Newark
Corso: Lisa Mack Esq., Assistant Federal Public Defender, NewarkCarsillo, Joseph Information
Corso, Carl InformationTwo More Guilty Pleas Entered in Vallejo-Based Drug Trafficking IndictmentsRead the Press Release
SACRAMENTO, Calif. — Andre Cawthorne, 40, of Vallejo, and Eileen Knight, 43, of Los Angeles, entered guilty pleas to drug trafficking charges arising out of a wide-ranging investigation into the distribution MDMA, popularly known as the drug “Ecstasy,” crack cocaine, heroin, Oxycodone, and marijuana in the Vallejo area, United States Attorney Benjamin B. Wagner announced.
According to court documents, the DEA-led investigation uncovered a network of drug distributors working in the “Crest” neighborhood of Vallejo along with individuals transporting large quantities of drugs outside of California to realize a larger profit. A number of the participants, including Major Norton and Gaylord Franklin, performed as rappers under the entertainment label known as “Thizz Entertainment.” In many of songs by artists on the Thizz Entertainment label, the lyrics glorify and promote the use and distribution of MDMA pills. In April 2012, agents arrested a total of 25 individuals in Vallejo, Stockton, Fairfield, Oakland, Los Angeles, New York, and Oklahoma City. During the investigation, agents seized approximately 45,000 MDMA pills, four pounds of crack cocaine, two pounds of heroin, and $200,000 in suspected drug proceeds. Agents also forfeited 230 acres of property valued at approximately $1 million as part of the investigation. Agents also seized a 2010 Audi A6 with an estimated value of $60,000.
Cawthorne and Knight are scheduled to be sentenced on December 11, 2014. Cawthorne faces a maximum statutory sentence of four years in prison and a $250,000 fine. Knight face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentences, 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.
Other defendants indicted in this investigation have recently entered guilty pleas:
Michael Lott, 50, pleaded guilty to conspiracy to distribute MDMA and crack cocaine; Major Norton, 39, pleaded guilty to conspiracy to distribute MDMA; Gaylord Franklin, 34, pleaded guilty to conspiracy to distribute MDMA; Dante Barbarin, 43, pleaded guilty to using a phone to facilitate drug dealing; Clifford Bullock, 37, pleaded guilty to conspiracy to distribute marijuana; Ung Duong, 48, pleaded guilty to conspiracy to distribute MDMA; Phat Nguyen, 43, pleaded guilty to conspiracy to distribute MDMA; Narco McFarland, 46, pleaded guilty to using a phone to facilitate drug trafficking; Damian Peterson, 37 pleaded guilty to using a phone to facilitate drug trafficking; and
Mikel Brown, 51 pleaded guilty to using a phone to facilitate drug trafficking.This case is the product of an investigation by the DEA Sacramento District Office, the Vallejo Police Department, El Dorado County Sheriff’s Office, and the Sacramento FBI Safe Streets Task Force. Assistant United States Attorney Jason Hitt is prosecuting the two related cases. It was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. 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.
Two Area Men Sentenced for Growing Marijuana on Federal Land in Highland CountyRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A pair of men, previously convicted of operating one of the largest marijuana grow operations encountered in the area, were sentenced yesterday afternoon in the United States District Court for the Western District of Virginia in Charlottesville.
Joaquin Gonzalez Vicencio, 30, and Joaquin Berumen Cortes, 24, both Mexican citizens who had been living locally in Harrisonburg, Va., were convicted of four counts related to a conspiracy to grow marijuana within the George Washington and Jefferson National Forests in Highland County following a three-day jury trial in December 2013. Cortes was also convicted of illegally reentering the United States. Yesterday District Court, Vicencio was sentenced to 134 months of federal incarceration to be followed by five years of supervised release. Cortes was sentenced to 120 months of federal incarceration to be followed by five years of supervised release.
“The misuse of federal land to cultivate marijuana remains an enforcement priority of the Department of Justice,” United States Attorney Timothy J. Heaphy said today. “These defendants operated one of the largest outdoor marijuana growing sites we have encountered in this or many other districts, conduct for which they have now been held accountable.”
According to evidence presented at trial by Assistant United States Attorney Elizabeth G. Wright, Cortes and Vicencio conspired together to grow at least 4,571 marijuana plants in the George Washington and Jefferson National Forests in Highland County until they were caught on July 2, 2013. Both defendants planted and cultivated the marijuana plants, which were contained in four gardens that were connected by footpaths. Cortes and Vicencio resided in a camp at the grow site and routinely used fertilizer, insecticides, pesticides and rat poison around the area to protect their crop.
The investigation of the case was conducted by the U.S. Forest Service and the Alleghany Highlands Drug Task Force, with assistance from the Drug Enforcement Administration. The Alleghany Highlands Drug Task Force includes officers from the counties of Alleghany, Highland and Bath, as well as the City of Covington and the Virginia State Police. Assistant United States Attorney Elizabeth G. Wright prosecuted the case for the United States.
Three More Sentenced for Theft from Union FundRead the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp sentenced three individuals yesterday for their roles in stealing from an employee benefit plan of a local union. Two of the individuals, Brandon Alfonso (28, Orange City) and Marta Blackmer (71, Orange City) previously pleaded guilty. Alfonso was sentenced to three years in federal prison and ordered to pay $109,497.82 in restitution. Blackmer was sentenced to three months in federal prison and ordered to pay $106,291.14 in restitution. A third individual, Phillip Simmons (50, Orange City), was convicted by a federal jury on June 3, 2014. He was sentenced to 18 months in federal prison and ordered to pay $44,194.15 in restitution.
According to court documents, Angela Deleon worked at Advance Administration, Inc. (AAI), which was the third-party administrator of an employee benefit plan for the Ironworkers Local 808. As the third-party administrator for the Ironworkers Local 808 Annuity Fund, AAI was responsible for processing members’ payment applications, paying the Fund’s bills, and speaking with union members. Deleon’s duties at AAI included data entry and the processing of payments.
Over a period of about 14 months, Deleon wrote 46 checks from the Fund, totaling more than $427,000, to individuals who were not members of the Local 808 or participants in the Fund, including the individuals sentenced today. Alfonso, Simmons, and Blackmer cashed some of those checks and split some of the proceeds with Deleon.
In total, ten individuals have been charged in connection with this case. Six were previously sentenced. James McCall (32, Orange City) was sentenced to two years and six months in federal prison and ordered to pay $93,405.89 in restitution. Angela Deleon (50, Winter Springs) was sentenced to two years in federal prison and ordered to pay $594,000 in restitution. Ian Chase Dove (26, Orange City) and Jason Wesson (37, Orange City) were each sentenced to 13 months in federal prison. Dove was ordered to pay $18,662.70 in restitution and Wesson was ordered to pay $19,975.32 in restitution. Michael Giesinger (36, Deltona) was sentenced to one year of probation, six months of home confinement, and was ordered to pay $20,009.62 in restitution. Shane Riley (32, Deland) was sentenced to three years of probation and ordered to pay $18,374.64 in restitution.
Jason Ferrari (33, Orange City) pleaded guilty on July 23, 2014, to theft from an employee benefit plan. His sentencing is set for September 24, 2014. Ferrari faces a maximum penalty of five years in federal prison.
“Theft of employee benefit assets jeopardizes the benefits of workers. This case reaffirms the Labor Department’s commitment to protect workers’ benefits by identifying criminal activity wherever and whenever it occurs,” said Isabel Colon, Regional Director of Employee Benefits Security Administration’s Atlanta Regional Office and Miami District Office.
These cases were investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
Statement by the U.S. Department of Justice and the Office of the Director of National Intelligence on the Declassification of Documents Related to the Protect America Act LitigationRead the Press Release
On January 15, 2009, the U.S. Foreign Intelligence Surveillance Court of Review (FISC-R) published an unclassified version of its opinion in In Re: Directives Pursuant to Section 105B of the Foreign Intelligence Surveillance Act, 551 F.3d 1004 (Foreign Intel. Surv. Ct. Rev. 2008). The classified version of the opinion was issued on August 22, 2008, following a challenge by Yahoo! Inc. (Yahoo!) to directives issued under the Protect America Act of 2007 (PAA). Today, following a renewed declassification review, the Executive Branch is publicly releasing various documents from this litigation, including legal briefs and additional sections of the 2008 FISC-R opinion, with appropriate redactions to protect national security information. These documents are available at the website of the Office of the Director of National Intelligence (ODNI), www.dni.gov; and ODNI’s public website dedicated to fostering greater public visibility into the intelligence activities of the U.S. Government, IContheRecord.tumblr.com. A summary of the underlying litigation follows.
FISC Proceedings
In Re: Directives Pursuant to Section 105B of the Foreign Intelligence Surveillance Act involved a challenge by Yahoo! to directives issued by the Director of National Intelligence (DNI) and the Attorney General under the PAA. The PAA was the predecessor to the Foreign Intelligence Surveillance Act (FISA) Amendments Act of 2008 (FISA Amendments Act of 2008 or FAA). The directives issued to Yahoo! under the PAA required it to assist the U.S. Government in acquiring foreign intelligence information through the surveillance of targets reasonably believed to be located outside the United States. Yahoo! refused to comply with the directives, and the U.S. Government initiated proceedings in the FISC to compel compliance.
Yahoo! opposed the U.S. Government’s motion to compel compliance with the directives primarily on the ground that the directives violated the Fourth Amendment rights of its customers. On April 25, 2008, following extensive briefing by the parties, the FISC held that the directives were lawful and ordered Yahoo! to comply.
- The FISC held that there is a foreign intelligence exception to the warrant requirement, and that the exception applied to surveillance conducted pursuant to the directives, including surveillance targeting U.S. persons located outside the United States.
- The FISC held that the U.S. Government has sufficient procedures in place “to ensure that the Fourth Amendment rights of targeted U.S. persons are adequately protected and that the acquisition of foreign intelligence to be obtained through the directives issued to Yahoo!, as to these individuals, is reasonable under the Fourth Amendment.” It further held, based on prior case law and noting the applicable minimization procedures, that “any incidental acquisition of the communications of non-targeted persons located in the United States and of non-targeted U.S. persons, wherever they may be located, is also reasonable under the Fourth Amendment.”
Yahoo! then appealed to the FISC-R.
FISC-R Proceedings
On August 22, 2008, following briefings and oral argument, the FISC-R issued a classified opinion, affirming the FISC’s decision that the directives were lawful. In its decision, the FISC-R first held that Yahoo! had standing to challenge the directives based on the Fourth Amendment interests of its customers that Yahoo! was alleging. Turning to the merits of the case, the FISC-R rejected Yahoo!’s Fourth Amendment challenge to the directives.
- First, the FISC-R held that a traditional warrant was not required. Basing its opinion on a line of U.S. Supreme Court cases recognizing “special needs” exceptions to the Fourth Amendment’s warrant requirement, the FISC-R held that the U.S. Government’s collection of foreign intelligence information pursuant to the directives addressed a special need that justified an exception to the warrant requirement.
- Second, the FISC-R held that the surveillance at issue met the reasonableness requirement of the Fourth Amendment, in light of the national security interests at issue and the “matrix of safeguards” required by the PAA and implemented by multiple branches of the Government. Those safeguards included:
- Targeting procedures reviewed by the FISC and designed to ensure that the U.S. Government targets someone only if the Government has a valid foreign intelligence purpose and reasonably believes that person is located outside of the United States.
- Minimization procedures designed to limit the retention and dissemination of information about U.S. persons.
- Procedures that require the Attorney General to find, before the U.S. Government conducts surveillance of any U.S. person located outside the United States, that the targeted U.S. person is a foreign power or an agent of a foreign power. These procedures were not required by the PAA. Rather, the U.S. Government included them as a requirement in the certifications for the surveillance of U.S. persons located outside the United States, consistent with its practice since 1981 under Section 2.5 of Executive Order 12333.
No rehearing or further review in the U.S. Supreme Court was sought.
The FISA Amendments Act
The PAA expired in February 2008 and was ultimately replaced with the FISA Amendments Act of 2008, codified as Title VII of FISA. The FISA Amendments Act incorporates many of the provisions and procedures that the FISC-R found important to its holding that the U.S. Government’s surveillance was constitutional. The FISA Amendments Act also builds in additional safeguards that did not exist in the PAA. For example:
- The FISA Amendments Act goes beyond the PAA and imposed, for the first time, the requirement for a judicial finding that a U.S. person located outside the United States targeted for surveillance or search is a foreign power, agent of a foreign power, or officer or employee of a foreign power. This finding is made by the FISC under the FISA Amendments Act; as noted above, under the PAA and prior to the PAA this finding was made exclusively by the Attorney General.
- The FISA Amendments Act requires FISC approval of the targeting and minimization procedures. Under the PAA, the FISC reviewed only the targeting procedures.
The FISA Amendments Act, by requiring those and other safeguards, is even more protective of the Fourth Amendment rights of U.S. persons than the statute upheld by the FISC-R as constitutional.
Stamford Man Pleads Guilty to Defrauding Investment Clients of $191kRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL LOMBARDO, Jr., 38, of Stamford, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of wire fraud in connection with a scheme to defraud more than 20 of his investment clients.
According to court documents and statements made in open court, LOMBARDO worked for David Lerner Associates, Inc., a Westport-based company that provided investment services. LOMBARDO provided financial advice to the company’s clients with respect to their retirement savings and other investments. From approximately September 2011 to February 2014, LOMBARDO defrauded more than 20 clients by diverting more than $190,000 in client funds for his personal use. As part of his scheme, LOMBARDO submitted fraudulent requests to disburse a portion of the retirement accounts of clients. LOMBARDO would request that a disbursement check be sent, typically by overnight mail, to him at his Westport office. After he received the check, he would forge the client’s signature on the back of the check and then cause the check to be deposited into his personal bank account.
LOMBARDO is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on December 4, 2014, at which time he faces a maximum term of imprisonment of 20 years and a fine of up to $250,000. As part of his plea agreement, LOMBARDO will be required to pay $191,068.73 in restitution.
This matter is being investigated by the Westport Police Department, the United States Secret Service and the Connecticut Financial Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Spokane, Washington Man Sentenced to Five Years in Federal Prison for Receipt of Child Pornography ImagesRead the Press Release
SPOKANE, Wash. – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ryan Raymond Joseph Comerford, age 26, of Spokane, Washington, was sentenced today after having previously pleaded guilty on May 5, 2014 to Receipt of Child Pornography. United States District Court Judge Thomas Rice sentenced Comerford to a five year term of imprisonment, to be followed by a 20 year term of court supervision after he is released from Federal prison. In addition, Comerford was ordered to pay a $1,000 fine, forfeit his computers and digital storage media and will be required to register as a sex offender.
According to court records, between November 30, 2012 and February 19, 2013, Comerford used Peer to Peer file sharing software to distribute images of child pornography on the Internet. As a result of an online undercover investigation conducted by the United States Secret Service, on March 27, 2013 a federal search warrant was executed at a Spokane south hill residence where Comerford was living. Comerford’s computers and digital media were seized. On these devices a computer forensic examiner discovered in excess of 10,000 sexually explicit images and videos of minors, some under the age of 3 years.
Michael C. Ormsby said, “Prosecuting offenders who are collecting and distributing child pornography using Peer to Peer file sharing software is a priority of the United States Attorney’s Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the United States Secret Service. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.CR-13-00145-TOR
South Hills Bookkeeper Pleads Guilty to Fraud ChargeRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania, pleaded guilty yesterday in federal court to a charge of wire fraud, United States Attorney David J. Hickton announced today.
Mary L. Schneir, 42, of Bethel Park, Pa., pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Schneir was employed as the bookkeeper and office manager at Karna C. Goldsmith, C.P.A., an accounting firm located at Summerfield Commons Office Park, Suite 611, 2555 Washington Road, in Pittsburgh, Pa. Schneir devised and executed a fraud scheme during her tenure as an employee of Goldsmith, whereby she used funds of Goldsmith clients to make online payments to her personal credit card and mortgage accounts. To hide her activity, Schneir would regularly move money between the bank accounts of Goldsmith’s clients, to which she had access. Specifically, on Feb. 28, 2013, Schneir caused an electronic transfer of funds in the amount of $54,145.36, from the account of Cybergenetics Corporation, to an A.L. Brourman Associates, Inc., account maintained at Citizen’s Bank. At the time Schneir’s scheme was detected, Cybergenetics accounts were the only ones remaining affected. The total loss to the business was in excess of $270,000.
Judge Bissoon scheduled sentencing for Feb. 19, 2015, at 10 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and detectives of the Allegheny County District Attorney’s Office conducted the investigation that led to the prosecution of Schneir.
Sixteen Indicted in North Texas Bank Fraud ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas - U.S. Attorney John M. Bales announced today that 16 individuals have been indicted on federal charges involving bank fraud and aggravated identity theft in the Eastern District of Texas.
Robert Aaron Green, Christopher Henry Cosby, Mallori Lee Moss, Wendi Lee Wren and Katherine Jones Reynolds made initial appearances today before U.S. Magistrate Judge Amos Mazzant on charges of conspiracy to commit bank fraud and aggravated identity theft. The defendants were named, along with 12 others, in a 76-count indictment returned by a federal grand jury on Aug. 13, 2014, charging them with federal violations that are alleged to have caused over $1.3 million in losses to banks. Those charged are:
- Robert Aaron Green, 27, of Lauderdale Lakes, FL
- Christopher Henry Cosby, 25, of Fort Lauderdale, FL
- Dianna Leigh Painton, 23, of Fort Lauderdale, FL
- Shelton Jerrod Green, 23, of Casselberry, FL
- Demetris Jerome Cunnigham, 28, of Fort Lauderdale, FL
- Mallori Lee Moss, 25, of Port Orange, FL, and Dallas, Texas
- Benny Lee Doe, Jr., 30, of Fort Lauderdale, FL
- Steven Taurus Green, 23, of Fort Lauderdale, FL
- Christina Lynn Gallo, 34, of Coral Springs, FL
- David Lee Brown, 26, of Fort Lauderdale, FL
- Johnthavias Keon Brown, 26, of Lauderhill, FL
- Kamesha Nycole Brown, 24, of Fort Lauderdale, FL
- Moses George Freelove, 23, of Fort Lauderdale, FL
- Wendi Lee Wrenn, 47, of Port Orange, FL
- Christian Dominique Scott, 28, of Dallas, Texas, and
- Katherine Jones Reynolds, 51, of Mesquite, Texas
According to the indictment, members of the conspiracy are alleged to have broken into vehicles at various locations such as public parks, daycare facilities, gyms and neighborhood pools, stealing purses, wallets, bank checks, bank cards, drivers’ licenses, and other personal identifying information. The defendants then transferred the stolen items to other members of the conspiracy for use at the banks. Certain members of the conspiracy disguised themselves as theft victims often through the use of wigs, and drove into the drive-thru teller lanes of the banks using rented vehicles. Other members of the conspiracy were usually hidden in the back seat of the rented vehicles so as to remain out of sight of bank personnel; they provided the disguised drivers with the stolen checks made payable from one victim to another, and the corresponding stolen drivers’ licenses and bank cards. When the banks cashed the checks, the payee victims’ banks suffered the loss when the checks were returned from the maker victims’ banks as stolen. While the banks were processing the checks, other members of the conspiracy provided surveillance for the rental vehicles used to present the stolen checks, typically in other rented vehicles. The conspirators often used stolen Texas license plates to conceal the true license plates of the rental vehicles used in the scheme. While the alleged criminal conduct was concentrated in the Dallas Metroplex, the conspiracy also extended to other states such as South Carolina, Alabama, Arkansas, Oklahoma and Florida.
If convicted of the conspiracy to commit bank fraud, the defendants each face up to 30 years in federal prison. If convicted of the aggravated identity theft charges, each defendant faces up to a mandatory 2 additional years in federal prison for each count charged to run consecutive to the bank fraud punishment.
In a related case, another 11 individuals were indicted by a federal grand jury on Aug. 15, 2013, and charged with using the same scheme in the Dallas area. Several defendants have already pleaded guilty and been sentenced to federal prison, including:
- Melvin Donnell Ferrell, 29, of Fort Lauderdale, sentenced to 70 months in federal prison on Sep. 8, 2014 and ordered to pay $28,281 in restitution;
- Craig Dwayne Tobias, 34, of Fort Lauderdale, sentenced to 46 months in federal prison on Sep. 3, 2014 and ordered to pay $6,673.37 in restitution;
- Atamian Rajuan Johnson, 32, of Riviera Beach, Florida, sentenced to 37 months in federal prison on Sep. 8, 2014, and ordered to pay $6,673.37 in restitution;
- Makeisha Ann Williams, 37, of Dallas, sentenced to 27 months in federal prison on Sep. 8, 2014, and ordered to pay $4,010 in restitution;
- Misty Dawn Hendrix, 38, of Dallas, sentenced to 37 months in federal prison on Sep. 3, 2014, and ordered to pay $2,313.37 in restitution; and
- Marc Anthony Booker, 25, of Austin, Texas, sentenced to 54 months in federal prison and ordered to pay $63,951.73 in restitution.
This case is being investigated by the Federal Bureau of Investigation, the Plano Police Department, the Richardson Police Department, the Dallas Police Department, the Cedar Hills Police Department, the McKinney Police Department, the Arlington Police Department, and the Grapevine Police Department. This case is being prosecuted by Assistant U.S. Attorney Christopher A. Eason.
An indictment or arrest is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Shreveport Woman Pleads Guilty to Health Care Fraud, Wire FraudRead the Press Release
SHREVEPORT, La. – The owner and operator of a Shreveport intensive outpatient program company pleaded guilty to charging Medicare for services never rendered, U.S. Attorney Stephanie A. Finley announced today.
Sharon Monroe, 43, of Shreveport, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of health care fraud and one count of wire fraud. According to evidence presented at the guilty plea, Monroe, owner of Monroe Medical Management LLC, submitted approximately $6 million in claims to Medicare for Part B psychotherapy services from 2007 to 2011. As a result of the fraudulent claims, she improperly received $2 million in payments from Medicare. Monroe filed claims for psychotherapy services that were never performed. She also used physicians’ Medicare provider numbers to submit claims without the physicians’ knowledge. In some cases, she claimed her employees rendered services in excess of 24 hours a day, that some of her employees were qualified to perform services when they were not, and that some of the services were performed at medical offices when they were not.
The FBI and Health and Human Services, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Monroe faces up to 10 years in prison and three years of supervised release for the health care fraud count, and up to 20 years in prison and five years of supervised release for the wire fraud count. She also faces a $250,000 fine and restitution for both counts. A sentencing date of January 8, 2015 was set.Sentencings for September 5-11, 2014Read the Press Release
Brian Hayden Allen, 42, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 11, 2014, for being a felon in possession of a firearm and ammunition. Allen was arrested in Cheyenne, Wyoming. He received 114 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Joseph Matthew Colvin, 44, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on September 5, 2014, for conspiracy to possess with intent to distribute, and distribution of methamphetamine and heroin. Colvin was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
San Antonio Man Sentenced to 220 Months in Federal Prison for Distribution of Child PornographyRead the Press Release
In San Antonio today, U.S. District Judge Orlando Garcia sentenced 23-year-old Michael Douglas Glasenapp was sentenced to 220 months in federal prison followed by a 30 years of supervised release for distribution of child pornography announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher H. Combs.
On March 21, 2013, federal authorities executed a search warrant at the defendant’s residence. A forensics examination of computer related equipment revealed the presence of more than 400 images and 48 videos depicting child pornography some of which the defendant shared with others, including an undercover officer, via the Internet. On April 17, 2014, Glasenapp pleaded guilty to the distribution charge.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Sarah Wannarka and Tracy Thompson prosecuted this case on behalf of the Government.
Rutland Women Charged in Crack Cocaine ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Sherry Flower, 48, of Rutland, Vermont has been charged in a three-count Indictment with one count of conspiring to distribute crack cocaine and two counts of distributing crack cocaine in the Rutland area. At an arraignment in Burlington before Magistrate Judge John Conroy, Flower pled not guilty to the charges. Magistrate Judge Conroy ordered her detained without bail in light of her criminal record and substance abuse issues. In 2003 Flower was convicted in U.S. District Court of conspiring to distribute cocaine base and was sentenced to 36 months imprisonment by Judge William K. Sessions III.
The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty. If she is convicted, Flower faces a maximum possible term of imprisonment of twenty years.
The United States is represented in this matter by Assistant U.S. Attorney Joseph Perella and Flower is represented by Lisa Shelkrot, Esq. The investigation was conducted by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, and the Drug Enforcement Administration.
Rhode Island Builder Pleads Guilty to Filing False Claims, Making False Statements to Collect More Than $500,000 in Federal Stimulus FundsRead the Press Release
PROVIDENCE, R.I. – Donald F. Ihlefeld, 71, of Cranston, R.I., owner of Alhambra Building Company of Warwick, R.I., pleaded guilty in federal court in Providence on Wednesday to filing false claims and false documents in order to collect more than $500,000 in federal stimulus funds during a renovation project of a former textile mill building in West Warwick, announced United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General (HHS OIG).
An investigation by the Department of Health and Human Services, Office of Inspector General and the United States Attorney’s Office determined that Ihlefeld falsely represented that he paid employees locally prevailing wages for work performed during the renovation project of the former mill building into a walk-in health center. The construction project, known as the Cotton Shed Project, was funded by the American Recovery and Reinvestment Act of 2009, through grants provided by the U.S. Department of Health and Human Services, Health Resources and Services Administration.
According to court documents and information presented to the court, in October 2010, Thundermist Health Center, a non-profit community health center, awarded a contract to Alhambra Building Company as construction manager for the Cotton Shed Project. As a condition of payment, as required by the Stimulus Program pursuant to the Davis-Bacon Act, Alhambra Building Company was required to pay laborers no less than locally prevailing wages plus benefits. In bidding on the project, Alhambra noted its prior experience working on Davis-Bacon projects.
According to information presented to the court, in February 2011, Ihlefeld submitted an invoice for $521,022.60 for payment for construction work performed by his company from December 2010 through January 2011, knowing that he and his company failed to pay employees local prevailing wages. Further, between January 1, 2011 and April 13, 2011, Ihlefeld and his company submitted false certified payroll reports to Thundermist which misrepresented the identity of employees working on the project, total hours worked by employees and that it was paying Davis-Bacon wages to employees working on the project. According to information presented to the court, the employees to whom Alhambra failed to pay the appropriate wages were non-citizen Spanish speaking employees hired by Alhambra. Those employees were paid substantially less than the prevailing wage of approximately $34 per hour.
U.S. Attorney Peter F. Neronha commented, “Federal stimulus funds are intended to benefit both employers and employees, and through them, the broader economy. Here, the defendant/employer wanted the benefit largely for himself, at the expense of his workers. To make matters worse, the defendant pocketed federal funds at the expense of those employees who perhaps were least able to make meaningful protest. Such conduct cannot stand.”
"What Donald Ihlefeld did is not only reprehensible, it’s illegal: he underpaid laborers, billed the federal government as if he had paid prevailing wages, and then pocketed the difference for his own personal use,” said Special Agent in Charge Coyne, HHS OIG. “We will continue to protect the integrity of federal grant dollars and hold those accountable for such fraudulent schemes.”Filing a false claim and filing false documents are punishable by statutory penalties of up to 5 years in federal prison; a fine of up to $250,000; and a term of supervised release of up to 3 years.
Ihlefeld is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on December 2, 2014.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Postal Employee Charged with Stealing Cash, Gift Card from Mail ItemRead the Press Release
PITTSBURGH - A resident of Butler, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of theft of mail by postal employee, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Sept. 9, named Kasy N. Bell, 27, as sole defendant.
According to the indictment, Bell, being an employee of the United States Postal Service, did steal, abstract and remove from a greeting card on or about Feb. 4, 2014 articles or things contained therein, that is two $20 bills and one WalMart gift card.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States Postal Service Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Permian Basin Businessman Pleads Guilty to Federal Wire Fraud ChargesRead the Press Release
James Edward “Jasper” Jones, age 44, of Midland, TX, faces up to 20 years in federal prison after pleading guilty to two wire fraud charges in connection with a cattle purchasing scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
According to court records, for approximately one year beginning in March 2011, Henry Resources retained Jones, doing business as Stampede Ranch and Lease Management (Stampede), to manage several of its ranching properties in West Texas. One such entity was JJB Lands, LLC (JJB Lands).
In approximately April 2011, Jones agreed with JJB Lands that he would purchase $250,000 worth of cattle for a ranch near Eldorado, TX, and that amount was subsequently wire transferred to a Stampede bank account. Jones’ representations to JJB Lands concerning how he would use these funds were material in JJB Lands’ decision to transfer them. In subsequent months, Stampede would invoice JJB Lands for additional purchases of cattle for this ranch, and JJB Lands paid those invoices.
In pleading guilty last Friday, Jones admitted that he did not actually use all of the money designated by JJB Lands for cattle purchases for that purpose, even though he had promised and represented otherwise. Instead, Jones diverted a large portion of the funds for other purposes, including personal expenses. When a cattle inventory was conducted in early March 2012 at the Eldorado ranch, approximately 120 head of cattle, which Jones represented to JJB Lands that he had purchased, could not be located. The Government estimates the resulting loss to JJB lands exceeded $400,000.
Jones remains on bond pending sentencing which is scheduled for 9:30am on December 5, 2014, before United States District Judge Robert A. Junell in Midland.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.
Owner of Tax Return Preparation Franchise and Health Provider Business Sentenced to Prison for Tax Fraud, Healthcare Fraud and Money LaunderingRead the Press Release
A man formerly of Raleigh, North Carolina, and now of Miami, was sentenced today to serve 135 months in prison for tax fraud, healthcare fraud and money laundering crimes in two separate cases in federal court, announced Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
Claude Arthur Verbal II was also ordered to serve three years of supervised release following his prison term, to pay restitution of $4,078,584 to the Internal Revenue Service (IRS) and to pay $2,382,378 to the North Carolina Department of Health and Human Services. On April 9, Verbal pleaded guilty to one count of conspiracy to defraud the United States, one count of aiding and assisting the preparation of false tax returns, one count of healthcare fraud and one count of money laundering.
“Mr. Verbal’s sentence sends a clear message to those who operate fraudulent tax return businesses,” said Deputy Assistant Attorney General Ronald A. Cimino of the department’s Tax Division. “The Justice Department will continue to prosecute and seek just punishment against those who prepare fraudulent tax returns.”
The Tax Case
Verbal was the owner of Nothing But Taxes (NBT), a tax return preparation franchise with 10 branches throughout the state of North Carolina that operated from 2005 to at least 2012. Verbal personally prepared false tax returns for clients of NBT and taught and encouraged his employees to do so as well. Verbal and NBT employees frequently offered clients a dramatically larger tax refund if the client agreed to make a cash payment to their tax preparer. These cash payments were over and above the flat return preparation fee that NBT charged every client, whether or not their return was falsified.
From 2005 to 2007, Verbal personally prepared dozens of false tax returns on a computer at NBT’s location on Fayetteville Street in Durham, North Carolina. One such return was a 2006 tax return for an NBT client that falsely reported the client had a Schedule C business and a dependent, which Verbal knowingly prepared and electronically filed with the IRS.
The most common types of falsifications at NBT were false dependents, false Schedule C businesses, false tip income, false Earned Income Tax Credits and false education credits. Verbal falsified returns using these items and taught his managers and line employees how to do so as well. Verbal and many of his employees facilitated the purchase and sale of false dependents at NBT by purchasing the names, dates of birth and social security numbers of individuals from the community for use as false dependents on other clients’ tax returns.
“Mr. Verbal’s fraudulent schemes victimized taxpayers in multiple ways, damaged the Medicaid program and the many patients who rely on it,” said U.S. Attorney Ripley Rand for the Middle District of North Carolina. “We will continue to work with law enforcement and the victimized agencies to shut down these types of fraud schemes, hold the fraudsters accountable, and return the ill-gotten gains to the programs for which they were intended.”
In November 2010, one of Verbal’s employees informed a U.S. probation officer of the fraudulent practices at NBT’s location on Fayetteville Street. The probation officer informed Verbal of this fraud and he falsely denied knowledge of it. Afterward, Verbal took steps to keep the profitable Fayetteville Street location open and to continue operating as usual, but to also further distance himself from the fraudulent practices. In order to do this, Verbal transferred the electronic filing privileges for that NBT branch to a nominee. Verbal and others jointly persuaded a relative of Verbal who allowed Verbal to use their name to apply for new electronic filing privileges for the Fayetteville Street location. In exchange, Verbal and his wife paid the relative $10,000, and the relative had no role in operating NBT, no professional tax experience and no knowledge of the fraud that was occurring at NBT.
Later, in 2012, the IRS shut down electronic filing privileges at all 10 NBT branches due to persistent fraud. Verbal re-applied for electronic filing privileges twice for all NBT locations, first in the name of the relative and, when that attempt failed, in the name of another relative who had no knowledge of NBT’s business.
The Healthcare Fraud Case
According to court documents, Verbal was the owner and operator of Infinite Wellness Concepts (IWC), a Medicaid behavioral health provider with locations in Burlington, Durham and Greensboro, North Carolina. IWC was contracted to provide group therapy, intensive in-home services, and enhanced mental health and substance abuse services. Verbal acquired at least $1 million in fraudulently obtained funds from the Medicaid program. The fraudulent activities included:
· changing diagnosis codes so that codes with higher reimbursement rates could be billed;
· falsely inflating the number of clients treated during group therapy;
· billing for services not rendered and submitting false treatment notes in support of the services not rendered using forged signatures from counselors and therapists;
· unqualified personnel conducting therapy; and
· creating fraudulent clinical assessments and creating clinical assessments prepared and signed by unqualified preparers.
Verbal used the proceeds of the tax and healthcare fraud schemes to make extensive purchases of luxury cars, homes and jewelry. The money laundering charge to which Verbal pleaded guilty relates to the purchase of a $52,000 diamond ring with the proceeds of healthcare fraud.
“It is both despicable and illegal when scammers like Claude Verbal cheat the Medicaid program and its beneficiaries by billing for badly needed services for poor and mentally ill patients – services that were never actually provided or were provided by unqualified staff -- just so that Verbal could build a $700K+ bank account and go on a diamond-encrusted shopping spree with the ill-gotten money,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), Atlanta Regional Office. “Verbal’s audacious, greed-fueled fraud cheated both taxpayers and needy patients; now, thanks to our hard working investigators and our law enforcement partners, Verbal will pay dearly for his reprehensible crimes.”
“Today’s sentence is the strongest type of affirmation that criminals such as Mr. Verbal, who commit tax fraud and engage in other criminal activities, will be forced to bear the consequences of their actions,” said Special Agent in Charge Thomas J. Holloman for IRS-Criminal Investigation. “We, along with our law enforcement partners are committed to working together in bringing individuals such as Mr. Verbal to justice.”
In the course of the healthcare fraud investigation, law enforcement authorities seized $765,917 from bank accounts controlled by Verbal, a 2011 Toyota Camry and four pieces of diamond jewelry, including a 7-carat diamond ring. The United States initiated a civil forfeiture action alleging the properties constituted proceeds traceable to the healthcare fraud and on Sept. 19, 2013, U.S. District Judge Catherine C. Eagles entered an order forfeiting the property to the government.
The tax case against Verbal was investigated by agents of IRS - Criminal Investigation and was prosecuted by Assistant U.S. Attorney Frank Chut for the Middle District of North Carolina and Trial Attorney Jonathan Marx of the Tax Division. The healthcare fraud case against Verbal was investigated by agents of HHS-OIG, the North Carolina State Bureau of Investigations, the North Carolina Department of Justice’s Medicaid Investigations Division and IRS – Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Robert Hamilton for the Middle District of North Carolina.
Owner of Tax Return Preparation Franchise and Health Provider Business Sentenced to Prison for Tax Fraud, Healthcare Fraud and Money LaunderingRead the Press Release
WASHINGTON – A man formerly of Raleigh, North Carolina, and now of Miami, was sentenced today to serve 135 months in prison for tax fraud, healthcare fraud and money laundering crimes in two separate cases in federal court, announced Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
Claude Arthur Verbal II was also ordered to serve three years of supervised release following his prison term, to pay restitution of $4,078,584 to the Internal Revenue Service (IRS) and to pay $2,382,378 to the North Carolina Department of Health and Human Services. On April 9, Verbal pleaded guilty to one count of conspiracy to defraud the United States, one count of aiding and assisting the preparation of false tax returns, one count of healthcare fraud and one count of money laundering.
“Mr. Verbal’s sentence sends a clear message to those who operate fraudulent tax return businesses,” said Deputy Assistant Attorney General Ronald A. Cimino of the department’s Tax Division. “The Justice Department will continue to prosecute and seek just punishment against those who prepare fraudulent tax returns.”
The Tax Case
Verbal was the owner of Nothing But Taxes (NBT), a tax return preparation franchise with 10 branches throughout the state of North Carolina that operated from 2005 to at least 2012. Verbal personally prepared false tax returns for clients of NBT and taught and encouraged his employees to do so as well. Verbal and NBT employees frequently offered clients a dramatically larger tax refund if the client agreed to make a cash payment to their tax preparer. These cash payments were over and above the flat return preparation fee that NBT charged every client, whether or not their return was falsified.
From 2005 to 2007, Verbal personally prepared dozens of false tax returns on a computer at NBT’s location on Fayetteville Street in Durham, North Carolina. One such return was a 2006 tax return for an NBT client that falsely reported the client had a Schedule C business and a dependent, which Verbal knowingly prepared and electronically filed with the IRS.
The most common types of falsifications at NBT were false dependents, false Schedule C businesses, false tip income, false Earned Income Tax Credits and false education credits. Verbal falsified returns using these items and taught his managers and line employees how to do so as well. Verbal and many of his employees facilitated the purchase and sale of false dependents at NBT by purchasing the names, dates of birth and social security numbers of individuals from the community for use as false dependents on other clients’ tax returns.
“Mr. Verbal’s fraudulent schemes victimized taxpayers in multiple ways, damaged the Medicaid program and the many patients who rely on it,” said U.S. Attorney Ripley Rand for the Middle District of North Carolina. “We will continue to work with law enforcement and the victimized agencies to shut down these types of fraud schemes, hold the fraudsters accountable, and return the ill-gotten gains to the programs for which they were intended.”
In November 2010, one of Verbal’s employees informed a U.S. probation officer of the fraudulent practices at NBT’s location on Fayetteville Street. The probation officer informed Verbal of this fraud and he falsely denied knowledge of it. Afterward, Verbal took steps to keep the profitable Fayetteville Street location open and to continue operating as usual, but to also further distance himself from the fraudulent practices. In order to do this, Verbal transferred the electronic filing privileges for that NBT branch to a nominee. Verbal and others jointly persuaded a relative of Verbal who allowed Verbal to use their name to apply for new electronic filing privileges for the Fayetteville Street location. In exchange, Verbal and his wife paid the relative $10,000, and the relative had no role in operating NBT, no professional tax experience and no knowledge of the fraud that was occurring at NBT.
Later, in 2012, the IRS shut down electronic filing privileges at all 10 NBT branches due to persistent fraud. Verbal re-applied for electronic filing privileges twice for all NBT locations, first in the name of the relative and, when that attempt failed, in the name of another relative who had no knowledge of NBT’s business.
The Healthcare Fraud Case
According to court documents, Verbal was the owner and operator of Infinite Wellness Concepts (IWC), a Medicaid behavioral health provider with locations in Burlington, Durham and Greensboro, North Carolina. IWC was contracted to provide group therapy, intensive in-home services, and enhanced mental health and substance abuse services. Verbal acquired at least $1 million in fraudulently obtained funds from the Medicaid program. The fraudulent activities included:
• changing diagnosis codes so that codes with higher reimbursement rates could be billed;
• falsely inflating the number of clients treated during group therapy;
• billing for services not rendered and submitting false treatment notes in support of the services not rendered using forged signatures from counselors and therapists;
• unqualified personnel conducting therapy; and
• creating fraudulent clinical assessments and creating clinical assessments prepared and signed by unqualified preparers.
Verbal used the proceeds of the tax and healthcare fraud schemes to make extensive purchases of luxury cars, homes and jewelry. The money laundering charge to which Verbal pleaded guilty relates to the purchase of a $52,000 diamond ring with the proceeds of healthcare fraud.
“It is both despicable and illegal when scammers like Claude Verbal cheat the Medicaid program and its beneficiaries by billing for badly needed services for poor and mentally ill patients – services that were never actually provided or were provided by unqualified staff -- just so that Verbal could build a $700K+ bank account and go on a diamond-encrusted shopping spree with the ill-gotten money,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), Atlanta Regional Office. “Verbal’s audacious, greed-fueled fraud cheated both taxpayers and needy patients; now, thanks to our hard working investigators and our law enforcement partners, Verbal will pay dearly for his reprehensible crimes.”
“Today’s sentence is the strongest type of affirmation that criminals such as Mr. Verbal, who commit tax fraud and engage in other criminal activities, will be forced to bear the consequences of their actions,” said Special Agent in Charge Thomas J. Holloman for IRS-Criminal Investigation. “We, along with our law enforcement partners are committed to working together in bringing individuals such as Mr. Verbal to justice.”
In the course of the healthcare fraud investigation, law enforcement authorities seized $765,917 from bank accounts controlled by Verbal, a 2011 Toyota Camry and four pieces of diamond jewelry, including a 7-carat diamond ring. The United States initiated a civil forfeiture action alleging the properties constituted proceeds traceable to the healthcare fraud and on Sept. 19, 2013, U.S. District Judge Catherine C. Eagles entered an order forfeiting the property to the government.
The tax case against Verbal was investigated by agents of IRS - Criminal Investigation and was prosecuted by Assistant U.S. Attorney Frank Chut for the Middle District of North Carolina and Trial Attorney Jonathan Marx of the Tax Division. The healthcare fraud case against Verbal was investigated by agents of HHS-OIG, the North Carolina State Bureau of Investigations, the North Carolina Department of Justice’s Medicaid Investigations Division and IRS – Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Robert Hamilton for the Middle District of North Carolina.
Orlando Man Sentenced to 14 Years in Prison for Robbing Credit UnionRead the Press Release
Orlando, FL – Chief U.S. District Judge Anne C. Conway today sentenced Raulier Rivas Lopez (28, Orlando) to 14 years in federal prison for one count of credit union robbery with assault and one count of possessing a firearm in furtherance of the robbery. As part of his sentence, the Court also ordered Lopez to pay over $7,000 in restitution. Lopez pleaded guilty on June 10, 2014.
According to court documents and testimony at sentencing, on the morning of January 25, 2012, Lopez, along with three co-conspirators, robbed the American Eagle Credit Union located at 7007 SeaWorld Drive, in Orlando. Lopez and two of his co-conspirators, all wearing masks, entered the credit union and demanded money from the credit union employees. Lopez pointed a firearm at the employees as his co-conspirators pepper-sprayed the employees so that they would not be able to identify the robbers. Lopez and his co-conspirators stole approximately $7,000 during the robbery.
To date, one other individual, Joseph Cotto-Diaz, has been arrested for his role in this robbery. Cotto-Diaz was charged in a superseding indictment on March 19, 2014. He is scheduled for trial in October 2014.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
Orange Park Man Pleads Guilty to Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Ronald Boike (50, Orange Park) has pleaded guilty to possession of child pornography. Boike faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Boike was involved in an online relationship with a minor child for at least two years. He used a cell phone chat application to communicate with the minor. Boike sent sexually explicit pictures of himself to the minor in order to encourage and coax her to produce and send him pornographic pictures or videos of herself. During ongoing conversations with the minor, Boike saved pornographic pictures and videos of the minor on his family’s computer. Boike’s wife learned of his relationship with the minor after finding the videos on the family’s computer. Boike’s wife subsequently filed a complaint with the Federal Bureau of Investigation.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Malisa Chokshi.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Northwest MO, KC Residents Sentenced for Meth, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a mother and son in northwest Missouri and a Kansas City, Mo., man have been sentenced in federal court for their roles in a conspiracy to distribute methamphetamine and for illegally possessing firearms.
Carlos Olivas, also known as “Chuco,” 40, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays today to 15 years in federal prison without parole.
On Wednesday, Sept. 10, 2014, co-defendant John B. Carr, also known as “Brandon,” 25, of Galt, Mo., and his mother, Onis R. Eads, also known as Onis Regina Jones, 47, of Humphreys, Mo., were sentenced. Carr was sentenced to eight years and 11 months in federal prison without parole. Eads was sentenced to three years and 11 months in federal prison without parole.
On April 7, 2014, Olivas pleaded guilty to participating in a conspiracy to distribute methamphetamine from April 2012 to Feb. 11, 2013. He also pleaded guilty to possessing firearms in furtherance of a drug-trafficking crime. Olivas admitted that he was in possession of a Smith and Wesson .380-caliber semi-automatic pistol, a Springfield Armory .40-caliber semi-automatic pistol and a Taurus 9mm semi-automatic pistol in furtherance of the drug-trafficking conspiracy.
Law enforcement officers executed a federal search warrant at Olivas’s residence on Jan. 25, 2013. Officers found methamphetamine and numerous firearms in the house. An officer searched Olivas and discovered two small plastic bags – one bag with approximately 19 grams of crack cocaine and the other bag with approximately .91 grams of methamphetamine – and $1,080 in cash.
Carr pleaded guilty on March 11, 2013, to his role in the drug-trafficking conspiracy and with possessing firearms in furtherance of a drug trafficking crime. Carr admitted that he was in possession of a Hi-Point Firearms .45-caliber pistol and a Calwestco .22-caliber pistol in furtherance of the drug-trafficking conspiracy. Carr admitted that he obtained methamphetamine from Olivas, and had been selling methamphetamine for 18 months, working up to selling a quarter pound of methamphetamine each week. Carr admitted that, for several months, he paid Olivas $2,500 per week for a quarter pound of methamphetamine.
Eads pleaded guilty to her role in the drug-trafficking conspiracy on April 7, 2014. She admitted that she purchased methamphetamine from Olivas. In December 2012 and January 2013, Eads purchased approximately one-half ounce of methamphetamine from Olivas three times per week, paying approximately $550 for each half ounce.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Trenton, Mo., Police Department.Norristown Resident Charged with Illegal ReentryRead the Press Release
Josue Isaias-Rosales, 24, of Norristown, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about August 6, 2014, Isaias-Rosales, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about March 31, 2008, July 3, 2008, and July 21, 2009.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Nine Lawyers in Manhattan U.S. Attorney’s Office Recognized at Annual U.S. Attorney Awards CeremonyRead the Press Release
PREET BHARARA, the United States Attorney for the Southern District of New York, announced that the Department of Justice held its 30th annual Executive Office for United States
Attorneys (EOUSA) Director’s Awards Ceremony yesterday, during which 243 award recipients from 44 districts were recognized for their dedication to carrying out the mission of the Department of Justice. Among the award recipients were Arlo Devlin-Brown, Antonia M. Apps, John T. Zach, Sharon Cohen Levin, Christine Magdo, Micah Smith, Daniel Filor, Ellen London, and Carina H. Schoenberger from the U.S. Attorney’s Office for the Southern District
of New York. Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson presided at yesterday’s ceremony in the Great Hall at the Robert F. Kennedy Department of Justice Building in Washington, D.C.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Manhattan U.S. Attorney Preet Bharara said: "This year’s Director’s Award winners exemplify the extraordinary intellect, determination, and dedication that are the hallmarks of this Office. I congratulate them for this well-deserved recognition. Their commitment to justice serves the interests of the citizens of New York and the entire country.”
Arlo Devlin-Brown, Antonia M. Apps, John T. Zach, Sharon Cohen Levin, Christine Magdo, and Micah Smith, working with Federal Bureau of Investigation Special Agents Matthew Callahan, B.J. Kang, James Hinkle, Matt Thoresen, Ronan Byrne, and David Makol, were recognized for Superior Performance by a Litigative Team for their successful investigation and prosecution of the entities managing the hedge fund SAC Capital, in an insider trading scheme that was on a scale without known precedent in the hedge fund industry. The criminal charges against SAC Capital, and a related civil money laundering and forfeiture action, were based on insider trading committed by numerous SAC Capital employees (eight of whom have been individually prosecuted) that was, as charged, “made possible by institutional practices that encouraged the widespread solicitation and use of insider information.” The SAC entity defendants pleaded guilty to all charges pursuant to a plea agreement, requiring the SAC Capital hedge fund to cease operating as investment advisers and to pay a historic financial penalty of $1.8 billion, the largest ever imposed in an insider trading prosecution.
Daniel Filor, Ellen London, and Carina H. Schoenberger were recognized for Superior Performance as an Assistant United States Attorney - Civil for their work in representing the United States in the In re Ambac bankruptcy proceeding, which culminated in a substantial recovery for the government. The United States had challenged Ambac's accounting for its credit default swap losses during the financial crisis, which allowed Ambac to obtain a $700 million tax refund from the Internal Revenue Service. AUSAs Filor, London, and Schoenberger led efforts to recover $101.9 million in cash and secured a $1 billion reduction of Ambac's net operating losses.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
New York City Employee Pleads Guilty in Manhattan Federal Court to Million-Dollar Medicaid FraudRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that AKIM MURRAY, an employee of the Medicaid Reimbursement Unit of the New York City Human Resources Administration (“HRA”), pled guilty before U.S. District Judge Richard M. Berman to a Medicaid fraud scheme in which MURRAY, whose job involved issuing reimbursements for Medicaid-eligible expenses, manipulated the system in order to have over one million dollars’ worth of checks issued to his friends and criminal associates. Those co-conspirators, in turn, gave MURRAY a substantial cut of the proceeds.
Manhattan U.S. Attorney Bharara said: “For over a year, Akim Murray used his job within New York City government to essentially embezzle funds intended to benefit low-income people entitled to reimbursements for certain of their health care payments. He stole from a program for people in need and gave the money to his friends and himself. Today, what Murray has earned is a felony conviction and the prospect of serious prison time."
According to the allegations in the Information, a previously filed Complaint, other documents filed in Manhattan federal court, and statements made at today’s guilty plea:
Medicaid is a federally funded program designed to provide low-income families with affordable health care. The HRA oversees the program and processes applications from New York City residents. Under Medicaid, individuals who successfully apply for Medicaid coverage can be reimbursed for eligible expenses submitted in the approximate three-month period prior to the application (“Pre-Enrollment Services”). In order to be reimbursed for Pre-Enrollment Services, the successful Medicaid applicant requesting reimbursement must provide proof that he or she made eligible health care payments out of pocket before applying for Medicaid. City employees known as Eligibility Specialists, working for HRA’s Medicaid Reimbursement Unit, receive and process requests for reimbursement using a computer system, and make recommendations for HRA supervisors as to whether a request should be approved.
From at least July 2009 until September 2010, MURRAY, an HRA Eligibility Specialist, exploited loopholes in HRA’s systems to both recommend and then separately approve the issuance of Medicaid reimbursement checks without meaningful oversight. MURRAY used the personal identifying information of his co-conspirators to create and unilaterally approve requests for reimbursement checks in their names. When the checks were sent to his friends and other associates, MURRAY demanded that they cash the checks and give him a substantial portion of the proceeds, often between 50 and 70 percent. MURRAY approved over $1.3 million in illicit Medicaid reimbursement requests during the course of the fraud.
MURRAY, 52, of New York, New York, pled guilty to one count of conspiracy to commit health care fraud, which carries a maximum sentence of 10 years. Sentencing is scheduled for December 17, 2014, before Judge Berman.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI’s Health Care Fraud Task Force and the DOI for their assistance in this investigation, which he noted remains ongoing. The New York FBI Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force comprises agents, officers, and investigators from the FBI, NYPD, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, New York State Attorney General’s Office, New York State Office of Medicaid Inspector General, New York State Health and Hospitals Inspector General, and the National Insurance Crime Bureau.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
U.S. v. Akim Murray Complaint
Native of Dominican Republic Charged with Illegal ReentryRead the Press Release
Roberto Garcia-Duran, 38, of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about August 6, 2014, Garcia-Duran, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about December 19, 2001 and December 21, 2007.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Missouri Man Sentenced to 54 Months in Prison for Failing to Update Sex Offender RegistrationRead the Press Release
SHREVEPORT, La. –A man from Missouri was sentenced Wednesday to 30 months in prison and five years of supervised release for moving to Shreveport without updating his sex offender registration, U.S. Attorney Stephanie A. Finley announced.
John Mark Phillips, 50, of Springfield, Mo., was sentenced to the 30-month prison term by U.S. District Judge S. Maurice Hicks Jr. for one count of failing to update his sex offender registration. Hicks also revoked Phillips’ supervised release for a previous offense, which added 24 months to Phillips’ prison term for a total of 54 months. According to evidence presented at the May 19, 2014 guilty plea, Phillips was convicted in Christian County Missouri on September 22, 1995, for sexual abuse of a victim under the age of 14, which requires 25 years of sex offender registration. In 2006, he updated his sex offender registration to reflect a move to Wisconsin. In May of 2011, he failed to report that he had moved back to Missouri. In August of 2011, he pleaded guilty to failure to register as a sex offender in the Western District of Missouri. He was sentenced to serve 18 months in prison and five years of supervised release. After the prison term ended, U.S. Probation Officers discovered on April 30, 2013, that Phillips had left his Springfield, Mo., housing complex. Probation officers were unable to locate him and issued a warrant for his arrest. Shreveport Police arrested Phillips the same day the warrant was issued.The U.S. Marshals Service, the U.S. Office of Probation - Western District of Missouri, and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Minnesota Sex Offender Indicted for Traveling to Engage in Unlawful Sexual Activity with A Tampa MinorRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Matthew William McLean (25, Minneapolis, Minnesota) with the attempted transportation of a minor with the intent to engage in criminal sexual activity, interstate travel to meet a minor with the intent to engage in illicit sexual conduct, and committing a felony sex offense as a registered sex offender. If convicted on all counts, McLean faces a maximum penalty of life in federal prison.
According to court documents, McLean, a registered sex offender from Minnesota, traveled to Tampa to meet a minor female he was corresponding with online. McLean picked up the minor from her house and transported her to the Greyhound bus station, where he purchased two bus tickets from Tampa to Brownsville, Texas.
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.
This case was investigated by the Hillsborough County Sheriff’s Office, the Tallahassee Police Department, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Stacie B. Harris.
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.projectsafechildhood.gov.
Miami-Dade County Resident Sentenced for Her Role in Massive Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), announce that Crystal Booker, 31, of Miami-Dade County, was sentenced today before U.S. District Judge James I. Cohn to 36 months in prison, to be followed by three years of supervised release.
Booker previously pled guilty to one count of filing a false claim with the IRS, in violation of Title 18, United States Code, Section 287.
According to court documents, defendant Orlando Cairo, 32, of Miami-Dade County, was involved in a massive stolen identity income tax refund fraud scheme where he obtained the names, social security numbers, and other personal identifying information of individuals and unlawfully used this information to file and cause to be filed fraudulent income tax returns with the IRS. The returns reported false withholdings and requested refunds based on fraudulent IRS Forms W2-G, purportedly issued by the Florida Lottery Commission when an individual has gambling income exceeding a certain threshold amount.
Court documents state that Booker assisted Cairo in this scheme by opening approximately eighteen bank accounts at financial institutions located in Broward and Miami-Dade counties. The fraudulent refunds that the IRS paid out were deposited into these bank accounts. Cairo filed and caused to be filed 378 returns identifying one of Booker’s accounts as the account where the refund should be deposited. The returns requested $2,128,841 in fraudulent refunds. In furtherance of the scheme, Cairo, with Booker’s assistance, presented to the IRS a fraudulent tax return, which claimed an income tax refund of $7,064. The refund was paid into one of the bank accounts that Booker opened.
On May 14, 2014, Cairo was sentenced to 120 months in prison, to be followed by three years of supervised release, and was ordered to pay $277,133.58 in restitution. He pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Mr. Ferrer commended the investigative efforts of IRS-CI and USPIS. The case was prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Attorney Sentenced for Not Filing Income Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Steven E. Siff, 56, of Davie, was sentenced today before U.S. District Judge William P. Dimitrouleas to 13 months in prison, to be followed by one year of supervised release.
Siff previously pled guilty to three counts of failing to file an income tax return, in violation of Title 26, United States Code, Section 7203. As part of his plea agreement, Siff agreed to pay restitution to the IRS of $924,684.
According to court documents, since at least 1982, Siff worked as an attorney in the Miami office of an international law firm, first as an associate, then as a partner. Siff failed to file personal United States income tax returns since at least tax year 1997. Between 2001 and 2011, Siff earned approximately $8,248,401 in partnership profits. For tax years 2009 through 2011, Siff failed to make an income tax return reporting gross partnership income of $716,464, $705,967, and $694,449, respectively.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Longmeadow Tax Preparer Sentenced for 29 Counts of Preparing False Tax ReturnsRead the Press Release
BOSTON – A Longmeadow tax preparer was sentenced today in U.S. District Court in Springfield for filing false tax returns for customers of his business, JLF Tax Group, Inc.
Jonathan Fein, 55, of Longmeadow, Mass., was sentenced by U.S. District Judge Michael A. Ponsor to six months in prison, six months in a community corrections center, and six months in home confinement. The court also ordered Fein to repay $138,474 to the IRS and $29,000 to the Massachusetts Department of Revenue. Fein is permanently enjoined from preparing tax returns. In December 2012, Fein pleaded guilty to twenty-nine counts of falsely preparing tax returns.
Fein operated a tax preparation business called JLF Tax Group, Inc., d/b/a American Tax or American Tax Service (JLF), which was located in Springfield and Greenfield. Fein prepared individual federal income tax returns for various JLF customers, most of whom were unfamiliar with the Internal Revenue laws and relied upon Fein to prepare correct, accurate, and complete returns. Between January 2007 and April 2012, Fein prepared numerous tax returns that he knew were fraudulent, so that his customers could receive larger tax refunds from the IRS. Fein generally deducted his tax preparation fee from the fraudulently obtained tax refunds. In November 2010, Fein falsely stated to federal agents that he did not fraudulently prepare any tax returns in order to conceal his fraud.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Lead Defendant Pleads Guilty to Using Hundreds of Stolen Identities to Steal More Than $1.5 Million from U.S. TreasuryRead the Press Release
Federal Authorities continue to focus on the growing problem of identity theft
SAN DIEGO – Arthur Grigorian admitted in federal court today that he defrauded the Internal Revenue Service of over $1.5 million by filing false tax returns in the names of stolen identities. Grigorian’s plea was the 27th conviction obtained by prosecutors since charges were filed in four related cases as part of a joint investigation by the FBI and IRS, dubbed “Operation Trillion Troubles,” in September, 2013.
Grigorian, the lead defendant in one indictment, admitted stealing personal identity information from unwitting victims in order to file false tax returns in their names. These false returns generated well over $1.5 million in fraudulent tax refunds that should never have been taken from the U.S. Treasury. According to the indictment, Grigorian and his conspirators falsely claimed refunds in the names of the victims in a number of ways, all of which involved some form of falsified income and withholdings. Most commonly, the conspirators claimed that the victims – many of whom were elderly and had not filed federal income tax returns in years – made tens of thousands of dollars in gambling winnings before losing nearly the identical amount.
The “losses” effectively canceled out the fabricated winnings, thus entitling the conspirators to a refund for the amount allegedly withheld on the initial winnings. As part of this scheme, Grigorian and his fellow conspirators directed the IRS to send the ill-gotten refunds to postal addresses and/or bank accounts under their control. The conspirators then would often circulate the money through several other accounts before withdrawing it and distributing the money amongst the group.
For his part, Grigorian admitted in court today that he stole the identities of people to use on the fraudulent tax returns, provided this personal information to conspirators, obtained fraudulent identification documents in the names of the stolen identity theft victims, facilitated the receipt of the ill-gotten funds, and enforced discipline on others related to the conspiracy. In all, Grigorian admitted to participating in filing false tax returns in the names of hundreds of victims. According to his plea agreement, Grigorian personally profited from his role in the organization’s activities.
Grigorian faces a maximum potential sentence of five years in prison. He is also required by the terms of his plea to make full restitution to the IRS for the losses caused by his criminal conduct, which totaled nearly $1.5 million.
Grigorian’s plea is the latest of 27 convictions following the September 2013 arrests of dozens of people in “Operation Trillion Troubles.” The four related cases charged the individuals with multiple tax fraud conspiracies and several schemes to defraud American banks. In all, over 58 defendants have been charged and 28 remain as international fugitives.
United States Attorney Laura E. Duffy praised the hard work of the agents from the FBI and IRS on their continued success in these related cases. "Today's guilty plea marks the culmination of the investigation and prosecution of a network of individuals whose scope of criminal actions was only exceeded by their brazen disregard for the sanctity of victims’ personal identity information. Our citizens’ identities are not commodities for criminals to trade and exploit for their own personal gain. Our office will continue to prosecute those who illegally take advantage of others at the expense of the American taxpayer."
FBI Acting Special In Charge Robert Howe commented, “Today's conviction is an example of the FBI's commitment to root out sophisticated fraudulent schemes by criminal enterprises. In this case, the defendant and his co-conspirators were involved in an elaborate scheme using Visa holders and stolen personal information to steal millions of dollars from American taxpayers. The FBI will continue to work with our law enforcement partners to protect American citizens from aggravated identity theft and protect our precious tax dollars from waste, fraud and abuse.”
Erick Martinez, Special Agent in Charge for IRS Criminal Investigation commented: “Identity theft and tax refund fraud was the lifeblood that Arthur Grigorian and his conspirators used to further their multi-million dollar fraud scheme. Operation Trillion Troubles exhibits the efforts of the IRS Criminal Investigation and the U.S. Attorney’s Office to protect the integrity of the federal tax administration system. Today’s guilty plea by Arthur Grigorian, the leader of the crime ring, demonstrates IRS Criminal Investigation’s commitment to holding accountable those individuals who victimize others through identity theft and tax refund fraud.”
DEFENDANT Case Number: Arthur Grigorian Age: 33 Glendale, CA CHARGESConspiracy to Commit Mail and Wire Fraud – Title 18, U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment and $250,000 fine
PROGRESS OF CASES CHARGED AS PART OF
"OPERATION TRILLIONS TROUBLE"Summary: As of September 11, 2014, 27 (non-fugitive) defendants have been convicted.
13CR3479-BTM B Convictions (Conspiracy to commit wire fraud – All defendants)
Ernest Soloian
Harout Gevorgyan
Yvonne Mihailescu
Yermek Dossymbekov
Yelena Sklyarova
Vyacheslav Tsoy13CR3480-BTM B Conviction
Arman Eritsian – Conspiracy to commit wire fraud13CR3481-BTM B Convictions (Conspiracy to commit bank fraud – All defendants)
Karen Galstian
Vahag Stepanyan
George Karapetian
Christopher Buckely
Carlos Ferrufino
Akop Galstian
Farbob Golhassani
Paul Gonnelly
Tatyana Kabachinskya
David Megurian
Ashot Mnatsakanyan
Sedrak Movesyan
Robert Rodriguez
Christopher Ruiz13CR3482-BTM B Convictions (Conspiracy to commit bank fraud – All defendants)
INVESTIGATING AGENCIES
Hovakim Sogomonian
Harout Gevorgyan
Tigran Eritsyan
Konstantin Yugay
Mae Barbara WeissbergerFederal Bureau of Investigation
Internal Revenue Service
Los Angeles Police Department*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Lakewood Business Man Is Sentenced for Failing to File Income Tax Returns and Pays the IRS Approximately $2.9 MillionRead the Press Release
DENVER – Jeremy J. Shull, age 36, of Lakewood, CO, was sentenced earlier this week by U.S. District Court Judge William J. Martinez to serve 4 months in federal prison for failure to file tax returns, United States Attorney John F. Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Following his prison sentence, Shull was ordered to serve one year on supervised release. Shull was charged by an information on September 3, 2013 and plead guilty before Judge Martinez on October 7, 2013. As part of the plea agreement, he agreed to pay $1,268,478 in taxes, over $975,000 in penalties, and nearly $700,000 in interest. Shull paid these amounts in full prior to his sentencing hearing.
According to documents filed with the courts, the defendant’s relevant conduct began in January of 2002. From August 2004, Shull has been the sole owner and operator of Independent Roofing Specialists, LLC, ("Independent") a business which is and has been active in commercial and residential roofing in Colorado since 1999. Prior to August 2004, Shull operated Independent with another individual, first as a partnership and then as a two-member LLC.
During the calendar years 2002 through 2009, Independent was a profitable business that brought in substantial revenues. Shull knew his business had significant gross income for each of the calendar years that required him to file personal federal income tax returns with the Internal Revenue Service ("IRS"). As a result of his income from Independent from 2002 through 2009, Shull had federal income taxes due and owing totaling approximately $1,268,478, in the amounts of approximately: $34,807 for 2002; $46,636 for 2003; $113,422 for 2005; $215,708 for 2006; $548,780 for 2007; $205,538 for 2008; and $103,587 for 2009.
Particularly, for calendar year 2007, Independent had gross income of approximately $4,840,683, requiring Shull to file a personal income tax return on or before April15, 2008 with the IRS. Shull had approximately $548,780 in federal income tax due and owing for calendar year 2007. As part of the plea agreement, Shull agreed to file, and has filed, tax returns for all of the years in question.
“Failing to file income tax returns can come with criminal consequences,” said U.S. Attorney John Walsh. “In Mr. Shull’s case, he intentionally failed to report his income to the IRS. By hiding his income the court held him accountable for not paying his fair share of income taxes.”
The defendant is being prosecuted by Assistant U.S. Pegeen Rhyne.
“Income tax fraud is based on greed; individuals who commit tax fraud are merely stealing money and creating an unfair tax burden on honest tax paying citizens,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
This case was investigated by IRS Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service.