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9 September 2014
Former Alabama Sheriff’s Investigator Sentenced to 36 Months for Assaulting Handcuffed Man at Macon County JailRead the Press Release
J. Keith McCray, previously a criminal investigator with the Macon County, Alabama, Sheriff’s Office, was sentenced today by Judge Myron H. Thompson to serve 36 months in prison and two years of supervised release for assaulting a handcuffed man at the county jail, announced the Justice Department and the U.S. Attorney’s Office for the Middle District of Alabama.
On April 4, 2014, McCray pleaded guilty to one felony count of deprivation of rights under color of law. At the plea hearing, McCray admitted that he arrested a salesman who was selling alarm systems in McCray’s neighborhood and transported him to the Macon County Jail. There, McCray struck the victim four times in the face and head while the victim was handcuffed and posed no threat.
“In attacking a defenseless innocent civilian, this officer chose to abuse his power rather than uphold his oath to protect the public,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “ The Justice Department will continue to vigorously prosecute those who cross the line to engage in acts of criminal misconduct.”
“While we look to law enforcement to maintain the safety and security of our citizens, their position of authority does not give them the right to act outside the bounds of the law,” said U.S. Attorney George L. Beck, Jr. for the Middle District of Alabama. “Most members of law enforcement serve honorably and professionally. McCray breached his pledge to protect and serve and he must be held responsible for his actions. Failure to do so would discredit the noble service of every other officer, and weaken the public’s trust in those who are sworn to protect them.”
This case was investigated by the FBI and the Alabama Bureau of Investigation. The case was being prosecuted by Assistant U.S. Attorneys Jerusha T. Adams and Jonathan Ross of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
Former Alabama Sheriff’s Investigator Sentenced to 36 Months for Assaulting Handcuffed Man at Macon County JailRead the Press Release
Montgomery, Alabama - J. Keith McCray, previously a criminal investigator with the Macon County, Alabama, Sheriff’s Office, was sentenced today by Judge Myron H. Thompson to 36 months in prison and two years of supervised release for assaulting a handcuffed man at the county jail, announced the Justice Department and U.S. Attorney George L. Beck, Jr. for the Middle District of Alabama.
An indictment against McCray, 42, charged that on July 4, 2013, he violated the civil rights of a door-to-door salesman who was selling alarm systems in McCray’s Tuskegee, Alabama, neighborhood. On April 4, 2014, McCray pleaded guilty to one felony count of deprivation of rights under color of law. At the plea hearing, McCray admitted that he arrested the salesman and transported him to the Macon County Jail. There, McCray struck the victim four times in the face and head while the victim was handcuffed and posed no threat.
“In attacking a defenseless innocent civilian, this officer chose to abuse his power rather than uphold his oath to protect the public,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in acts of criminal misconduct.”
“While we look to law enforcement to maintain the safety and security of our citizens, their position of authority does not give them the right to act outside the bounds of the law,” stated George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. “Most members of law enforcement serve honorably and professionally. McCray breached his pledge to protect and serve and he must be held responsible for his actions. Failure to do so would discredit the noble service of every other officer, and weaken the public’s trust in those who are sworn to protect them.”
This case was investigated by the FBI and the Alabama Bureau of Investigation. The case was being prosecuted by Assistant U.S. Attorneys Jerusha T. Adams and Jonathan Ross of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
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Fax: (334) 223-7617Former Advertising Department Employee for Las Vegas Casino Company Pleads Guilty to Tax EvasionRead the Press Release
LAS VEGAS, Nev. – Anthony M. Cirulli, a former employee of a Las Vegas casino company, pleaded guilty today before U.S. District Judge Gloria M. Navarro to one count of tax evasion, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Individuals are required to pay federal taxes on income, even if acquired unethically,” said U.S. Attorney Bogden. “If you do not pay the taxes, you risk an investigation by the IRS and criminal prosecution.”
According to the plea agreement, from about 2005 to 2008, Cirulli was employed as a production manager in the corporate advertising department of the casino company. Part of his job involved reviewing bids for printing contracts and deciding which printing companies would be awarded the contracts. For the 2007 tax year, Cirulli willfully filed a false individual income tax return, which omitted and failed to report income that he received during his employment at the company. Cirulli hid the unreported income in two different nominee bank accounts which conducted no actual business activity. The potential tax loss to the U.S.Treasury as a result of Cirulli’s conduct is approximately $350,000.
Cirulli is scheduled to be sentenced on Dec. 18, and faces up to five years prison, three years of supervised release, and a fine of up to $250,000.
The case was investigated by IRS Criminal Investigation and prosecuted by Trial Attorney Christopher Maietta of the Justice Department’s Tax Division and Assistant U.S. Attorney Nicholas Dickinson.
Former APD Officer Sentenced to Ninety Months in Federal Prison for Child Pornography convictionRead the Press Release
ALBUQUERQUE – Nelson Begay, 33, of Albuquerque, N.M., was sentenced this afternoon to 90 months in federal prison for his child pornography conviction. Begay will be on supervised release for 15 years after completing his prison sentence and will be required to register as a sex offender.
The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and New Mexico Attorney General Gary K. King.
Begay was arrested on Nov. 13, 2013, on a criminal complaint charging him with receiving and possessing visual depictions of minors engaged in sexually explicit conduct. Shortly before his arrest, Begay resigned from his position as an officer of the Albuquerque Police Department.
On Dec. 4, 2013, Begay was indicted and charged with two counts of receipt of child pornography and one count of possession of child pornography. The indictment alleged that Begay received child pornography in Nov. 2012 and April 2013, and that he possessed child pornography in Nov. 2013, in Bernalillo County, N.M.
According to court filings, in Sept. 2013, a special agent with the New Mexico Attorney General’s Office (NMAGO) identified an IP address that was being used to share files containing child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to Begay at a residential address in northeast Albuquerque.
Court records reflect that on Nov. 7, 2013, HSI and other agencies participating in the New Mexico Internet Crimes Against Children (ICAC) Task Force executed a federal search warrant at Begay’s residence and seized computers and computer-related media. A forensic examination of a laptop computer taken from a bedroom used by Begay recovered images consistent with child pornography.
On March 26, 2014, Begay entered a guilty plea to Count 1 of the indictment charging him with receipt of child pornography. In his plea agreement, Begay admitted that on Nov. 1, 2012, he used file-sharing software to download and share child pornography, including a video that was almost 30 minutes in duration that was a compilation of many video clips of minors performing various sexual acts. During today’s sentencing hearing, Begay was ordered to pay $1000.00 in restitution to the victim whose image appears in the aforementioned video.
This case was investigated by the Albuquerque office of HSI, the NMAGO, and other members of the New Mexico ICAC Task Force, and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Fleming Island Man Sentenced to More Than 7 Years for Receiving Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard sentenced Jimmy Laverne Holmes (58, Fleming Island) to seven years and eight months in federal prison for receiving child pornography over the Internet. Holmes was also ordered to serve a five-year term of supervision following his release from prison, and to register as a sex offender. Holmes pleaded guilty on January 28, 2014, and has been in custody since his arrest on September 24, 2013. At the time of his arrest, Holmes told agents that he worked at the Barco-Newton YMCA in Fleming Island, where he taught sports to children.
According to court documents, an FBI agent in Jacksonville began an investigation to identify individuals that had access to and/or were trading images and videos depicting child pornography over the Internet. Using specialized software, the agent determined that a host computer in the Jacksonville area was hosting images of child pornography using a particular peer-to-peer file sharing program. The agent made successful connections to the host computer through the Internet and downloaded several video files directly from the host computer that depicted child pornography. Further investigation traced the subscriber information to Holmes’s residence in Fleming Island.
On September 24, 2013, FBI agents and other officers executed a search warrant at Holmes's residence and seized, among other things, several computers and other items of electronic media. Holmes was at the residence and told the agents, among other things, that he knew that child pornography was illegally and that recently he was downloading and watching child pornography two or three times per week.
Subsequent analysis of Holmes's computer media revealed that it contained a total of 203 videos and 247 images depicting young children being sexually abused.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Final Defendant Sentenced in Large Drug and Gun CaseRead the Press Release
Man Sentenced to 46 Months in Federal Prison for His Role in Drug Conspiracy and for Assaulting a Law Enforcement Officer
BOISE – Scott Vicente Hernandez, 43, of Oakland California, was sentenced today to 46 months in prison for conspiring to distribute methamphetamine and for assaulting an officer, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Hernandez to serve four years of supervised release. He pleaded guilty to the conspiracy charge on December 17, 2013, and pleaded guilty to assault on an officer on June 15, 2014.
Hernandez and ten other individuals were indicted on July 9, 2013. The indictment included allegations of conspiring to distribute methamphetamine, distribution of methamphetamine and cocaine, unlawful possession of firearms, and the unlawful use of a firearm in furtherance of the drug trafficking crime. Hernandez was arrested on July 24, 2013, and held at the Ada County Jail until his trial. On October 16, 2013, Hernandez assaulted a jail deputy while awaiting his trial.
Hernandez and the other ten co-defendants all pleaded guilty. Hernandez was the eleventh and final defendant to be sentenced in the case. Co-defendant Jeramie Mahler was previously sentenced to 247 months in prison for his role in the conspiracy and for shooting another person in furtherance of the drug trafficking conspiracy. The shooting was the result of a dispute about the quality and quantity of the methamphetamine. Co-defendant Hernan Gomez-Gutierrez was sentenced to 180 months in prison; Darrell Zirschky was sentenced to 168 months in prison; Michelle Ritch was sentenced to 120 months in prison; Carlos Tovar was sentenced to 87 months in prison; Wendy Harrison and Bobbi Woolsey were both sentenced to 84 months in prison; Daniel Vaughan was sentenced to 80 months in prison; Juan Mojica-Barragan was sentenced to 57 months in prison; and Nearia Pinnell was sentenced to 33 months in prison.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. Other agencies that contributed to this investigation include the Drug Enforcement Administration, Nampa Police Department, Caldwell Police Department, Canyon County Sheriff’s Office, and Ada County Sheriff’s Office. During the investigation, law enforcement agents seized twelve firearms, including a stolen firearm, and an illegal fully-automatic machine gun.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Fenton Man Accused of Filing False ReturnsRead the Press Release
Kleppe Houston, of Fenton, Michigan, was arraigned today on an indictment charging him with five counts of filing false tax returns, United States Attorney Barbara L. McQuade announced today.
United States Attorney McQuade was joined in the announcement by Jarod Koopman Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.
According to the indictment, Houston owner of Co-HR, LLC, a human resource management firm that was based in Pontiac, Michigan, prepared and filed false tax returns for businesses. Co-HR, LLC provided payroll services to Health Management Systems of America, Binson’s Hearing Aid Services and Northwood Provider Network Services. Houston prepared and filed five Employers’ Quarterly Federal Tax Returns, for these employers, falsely reporting that more than $393,381 in payroll taxes had been remitted with the returns. Houston knew, but his clients did not, that the amount remitted with each return was substantially less than reported.
“Our tax system depends on the honest cooperation and integrity of every citizen and business owner, said Koopman. “Employers that engage payroll service companies, and their employees whose wages have amounts withheld for payroll tax purposes, have every right to expect that those funds will be used for the payment of their taxes. The government has the same expectation.”
The case was investigated by special agents of the IRS Criminal Investigation.
Federal Inmates Appear in CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Four Federal prisoners received additional jail time as a result of crimes they committed while behind bars.
United States Attorney William J. Ihlenfeld, II, announced that Roberto SOTO, age 51, Gregory PARDO, age 58, Antonio MARTINEZ-PORTA, age 38, and Ahmed JOHNSON, age 42, all inmates at the Federal Correctional Institution at Gilmer, entered pleas of guilty to “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” U.S. District Judge Irene M. Keeley sentenced PARDO, MARTINEZ-PORTA and JOHNSON to 24 months in prison and SOTO to 30 months in prison to run consecutively to their current Federal sentences. The case was handled by Assistant U.S. Attorney David J. Perri for the government.
In a separate matter, Ricardo PIZANA, age 29, an inmate at the Federal Correctional Institution at Morgantown, entered a plea of guilty to “Possession of a Prohibited Object” and was sentenced to three months in prison. The sentence will run consecutively to his current Federal sentence. This case was prosecuted by Assistant U.S. Attorney Shawn A. Morgan.
These cases were investigated by the Special Investigative Services Unit at FCI Gilmer and FCI Morgantown.
Fairmont Man Sentenced to 20 Years in Prison for Drug TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA - A Fairmont, West Virginia, man has been sentenced to twenty years in Federal prison on drug charges.
United States Attorney William J. Ihlenfeld, II, announced that Lennox BUCKLEY was sentenced to 240 months in prison for “Distribution of Cocaine and more than 50 Kilograms of Marijuana.” BUCKLEY, who was remanded to the custody of the United States Marshal, also was ordered to forfeit a 2002 Lexus ES 300 and $7,011 in U.S. Currency.
The case was prosecuted by Assistant U.S. Attorney Andrew R. Cogar and investigated by the U.S. Postal Inspection Service, the West Virginia State Police-Bureau of Criminal Investigations and the U.S. Marshals Service.
Chief U.S. District Judge John Preston Bailey presided.Elmira Man Pleads Guilty to Stealing and Illegally Selling GunsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Douglas Church, 23, OF Elmira, NY, pleaded guilty to conspiring to deal firearms without a license and possession of stolen firearms. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Zachary Smith, and Brianna Lowe, all of Elmira, N.Y., have been arrested and charged by criminal complaint with conspiring to deal firearms without a license and possession of stolen firearms. In addition, defendants Church and Smith are charged with dealing firearms without a license. The conspiracy charge carries a penalty of five years in prison and a $250,000 fine. Possession of stolen firearms and dealing firearms without a license carry a penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that on October 16, 2013 at approximately 3:05 a.m., the owner of “Scott’s Guns” on Watkins Drive in Horseheads, NY received a telephone call from his security alarm company. The owner alerted police and then went to the store. Upon entering the store, the owner realized he had been burglarized. The owner determined that 49 handguns of various makes and models had been stolen.
As part of their investigation, law enforcement officers reviewed footage from a security camera inside the store which revealed two individuals inside the store during regular business hours the day before, October 15, 2013. Officers recognized the two individuals to be Douglas Church and Zachary Smith. Additional investigation revealed that Church and Smith burglarized the store by having Church climb through a hole in the wall of the building, with Church handing the weapons to Smith. The two men left the guns in backpacks in a swamp behind the building the night of the burglary, with Smith and his girlfriend, Brianna Lowe, retrieving the guns the following day. Investigation also revealed that many of the guns were sold within a week and a half of the burglary in exchange for money.
Charges are also pending against Zachary Smith and Brianna Lowe, both of Elmira. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge James S. Higgins, New York Field Office, the Horseheads Police Department, under the direction of Acting Chief Scott Zelko, The New York State Police, under the direction of Major Scott Crosier, the Chemung County Sheriff’s Department, under the direction of Christopher Moss, the Elmira Police Department, under the direction of Chief Michael Robertson, the Elmira Heights Police Department, under the direction of Chief A. Rich Churches, and the West Elmira Police Department, under the direction of Chief Peter Michalko.Electronics Engineer Admits Lying on U.S. Army Contract Bid to Make Battery for Artillery Weapon Guidance SystemRead the Press Release
NEWARK, N.J. – An electronics engineer for the U.S. Army pleaded guilty today to making false statements in an attempt to obtain a government military contract to manufacture a portable power supply for U.S. Army use, U.S. Attorney Paul J. Fishman announced.
Modesto Torres, 49, of Dover, New Jersey, surrendered today to federal law enforcement and pleaded guilty to an information charging him with making false statements to the U.S. Department of Defense. He entered his guilty plea before U.S. District Court Judge William J. Martini in Newark federal court and was released on $25,000 unsecured bond.
According to documents filed in this case and statements made in court:
In June 2012, Torres, an electronics engineer for the U.S. Army at Picatinny Arsenal, sought to bid – through a company referred to in court documents as “Company A” – on a contract with the U.S. Army. The winner of the contract would manufacture the Artillery Portable Universal Battery Supply, or “APUBS,” a battery that powered the guidance system on the 105 mm Howitzer, a type of artillery weapon used by the U.S. military.
Torres prepared the majority of the content of the proposal submitted to a U.S. Army bidding officer. During his guilty plea, Torres admitted that he included fabricated biographies of personnel not employed by the company, as well as false representations regarding the company’s supplier relationships with manufacturers based in Puerto Rico and China when no such relationships existed.
The charge of false statements carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is currently scheduled for Jan. 14, 2015.
U.S. Attorney Fishman credited special agents with the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit in Newark.
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Defense counsel: Joel M. Bacher Esq., Wayne, N.J.
Torres, Modesto Information
Dentist Sentenced for Obstruction and Interfering with IRS LawsRead the Press Release
DENVER – Jerold R. Sorensen, age 75, of Fresno, CA, was sentenced yesterday by U.S. District Court Judge Raymond P. Moore to serve 18 months in federal prison for obstructing and impeding the Internal Revenue Service, United States Attorney John F. Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Following his prison sentence, Sorensen was ordered to serve one year on supervised release. Sorensen was also ordered by Judge Moore to pay a fine of $100,000.00. The defendant was convicted by a jury on June 16, 2014, following a 6-day trial. The jury deliberated for nearly two hours before returning a verdict of guilty. Sorensen appeared at the sentencing hearing free on bond. He was ordered to report to a Bureau of Prisons facility within 15 days of designation.
Sorensen was indicted by a federal grand jury in Denver on November 20, 2013. According to the indictment and evidence presented at trial, Sorensen was a resident of California and practiced dentistry and oral surgery through a California professional corporation, Jerold R. Sorensen, DDS, PC. Beginning in September of 2000 and continuing through May of 2008, in Colorado and elsewhere, the jury found that Sorensen obstructed and impeded the administration of the Internal Revenue laws.
Specifically, Sorensen worked with an entity known as Financial Fortress Associates, (“FFA”), an organization that promoted and advised its clients on schemes to avoid the payment of income and other federal taxes. Working through FFA, Sorensen established a number of Pure Trust Organizations (“PTOs”) used as vehicles to help disguise Sorensen’s and his son’s receipt of business and personal income and asset ownership. Sorensen worked with Eva Melissa Sugar, an attorney in Denver, Colorado, who was associated with FFA, and he paid her to use an Unincorporated Business Organization (“UBO”) called Northside Management (“Northside”).
Sorensen acted as if the PTOs owned assets that he actually controlled, including his personal residence, his cars, the building where he conducted his dental practice, and the equipment used by that practice. He funneled income from his practice into the PTOs in an effort to reduce his taxable income. Furthermore, Sorensen took additional steps to substantially under-report his income to the IRS for calendar years 2002 through 2007. These steps included filing individual federal income tax returns which failed to report as income any of the millions of dollars deposited into the bank accounts he controlled and which he used for personal expenses. Personal expenses he paid using this unreported income included purchases of automobiles, property taxes, upkeep of his California residence, and over $2 million used to purchase land for and construct two additional homes and a commercial building in Utah. The defendant’s conduct caused approximately $2.3 million in tax loss.
Eva Melissa Sugar, the Denver attorney who helped facilitate the FFA scheme, pled guilty to conspiracy to defraud the United States in connection with the collection for taxes on August 5, 2014 and is scheduled to be sentenced on October 29, 2014. Gregory Nathan Laurence of Germantown, Tennessee was sentenced on September 5, 2014 based on his plea of guilty to attempting to obstruct the administration of internal revenue laws.
“Sorensen participated in a scheme in an attempt to hid his income from the IRS to avoid paying taxes,” said U.S. Attorney John Walsh. “The defendant has been held accountable for his illegal actions. Not only did he have to pay over $2 million in back taxes to the IRS, he also has to pay a $100,000 fine and spend a year and a half in federal prison.”
“For those thinking about promoting or participating in abusive tax schemes should think twice; there is no secret formula that can eliminate a person's tax obligations.” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “We owe it to every American taxpayer to identify and prosecute both those who evade their taxes and those who promote and assist them in evading their tax obligations through fraudulent tax schemes.”
This case was investigated by IRS Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service.
The defendant is being prosecuted by Assistant U.S. Attorneys Matthew Kirsch, Pegeen Rhyne and Anna Edgar.
Cumberland Resident Sentenced to 12 Years in Federal Prison for Robbing 3 Banks in 3 Weeks in Rhode Island and VermontRead the Press Release
PROVIDENCE, R.I. – Joseph G. Petrarca, 50, of Cumberland, R.I., was sentenced in U.S. District Court in Providence today to 12 years in federal prison for robbing three banks, two in Rhode Island and one in Vermont, within a span of twenty-two days, announced United States Attorney Peter F. Neronha; Cranston Acting Police Chief - Rhode Island State Police Captain Kevin M. Barry; Cumberland Police Chief John R. Desmarais; and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
In March 2014, Petrarca admitted to the court that he robbed a Citizens Bank branch office in Cumberland, R.I., on December 26, 2012, of $1,764, and that twenty days later he robbed a Washington Trust Company branch office in Cranston, R.I, of $9,595. Petrarca admitted to the court that in both instances he handed bank tellers a threatening note claiming that he was armed with a gun.
According to information presented to the court, the note handed to a teller at the Washington Trust Company by Petrarca read in part, “I have a gun and I will shoot you.” It further warned, “Watch my hand it has a gun in it.” The teller told police that the robber displayed the handle of a gun which he pulled out from a satchel or briefcase he was holding. Petrarca also handed a note to a teller during the robbery of the Citizens Bank branch office claiming that he was armed. However, no gun was displayed.
Appearing today before U.S. District Court Judge William E. Smith today for sentencing for robbing the banks in Cumberland and Cranston, Petrarca pleaded guilty to robbing the People’s United Bank in Hartford, Vermont, on January, 17, 2013, of $6,216. According to information presented to the court, Petrarca passed a note to a teller announcing the robbery. Petrarca also made a motion under his jacket as if he were reaching for a gun. No weapon was displayed.
Petrarca was arrested by Cranston Police on January 19, 2013.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Petrarca to serve 5 years supervised release upon completion of his prison term and to pay restitution to the banks in the amount of $17,575.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The bank robberies were investigated by the Cranston, R.I., Cumberland, R.I., and Hartford, VT., Police Departments and the FBI.###
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]- Corporation Owner/CEO Pleads Guilty to Federal Income Tax Fraud
Cleveland Man Charged with Robbing Bank on Brookpark RoadRead the Press Release
A grand jury returned a one-count indictments charging Jeremy D. Carpenter, 33, of Cleveland, with one count of bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Carpenter robbed the U.S. Bank, 2132 Brookpark Road, Cleveland, Ohio, on August 5, 2014
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to his case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall, and was investigated by the Cleveland Police Department and the Cleveland Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bay Village Man Indicted for Bank RobberyRead the Press Release
A grand jury returned a one-count indictment charging Robert T. Gauna, 31, of Bay Village, with one count of bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Gauna robbed the Lorain National Bank, 42935 North Ridge Road, Elyria Township, Ohio, a federally insured financial institution, on July 14, 2014.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to his case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall, and was investigated by the Lorain County Sheriff’s Office and the Elyria Resident Agency of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Banker Convicted of Taking More Than One Million Dollars in BribesRead the Press Release
SAN DIEGO - Robert Moreno, a banker who sold mortgages on behalf of GMAC, admitted receiving more than one million dollars in bribe payments while working on behalf of GMAC. As detailed during his guilty plea, in return, Moreno used his position and influence to ensure that his customers won their bids to purchase mortgage notes. Moreno took the bulk of these bribe payments from San Diego businessman Israel Hechter, who pled guilty in September and admitted paying $1,000,000 in bribes to Moreno and others. Moreno also accepted hundreds of thousands of dollars from another customer based in Woodland Hills, California.
Moreno initially accepted the bribes in cash and personal checks, so that he could conceal the payments from the IRS and avoid paying taxes on the illegal income. Several times in 2012, Hechter’s father, Zeev Hechter, met Moreno in New York City at the car wash he owned, where he delivered “laundered” cash payments totaling $330,000. Moreno travelled around the country, including Las Vegas, New York City, and Scottsdale, Arizona, arranging hand-to-hand cash deliveries of the bribes from Zeev Hechter and others. He also accepted personal checks from Israel’s brother Amir Hechter and their business associate Jack Prober.
Moreno and Israel Hechter later set up a sham “Consulting Agreement” and a phony consulting business, Phoenix Asset & Acquisition, Inc., to disguise the bribe payments and make them look like legitimate consulting fees unrelated to Moreno’s work with GMAC. Moreno then copied this sham contract and used it with other customers who paid him bribes, all to cover up the payments. Moreno took in over $500,000 in bribe payments under these bogus contracts.
Israel Hechter, the owner of San Diego-based mortgage investment firms Ocean 18, LLC, and Note Tracker Corporation, admitted as part of his guilty plea that he paid a million dollars in bribes to Moreno and other bank insiders at J.P. Morgan Chase Bank and National City Bank. In order to make sure that Israel Hechter’s bids were accepted, the bankers, including Moreno, corrupted the process by altering bids, rejecting other bids, and erasing or ignoring bids from qualified competitors. The bankers also rigged the bidding by supplying Israel Hechter with confidential information about prices and competing bids.
The mortgages Moreno sold on behalf of GMAC were mostly non-performing or distressed second mortgages. After purchase, Israel Hechter pooled the loans and sold shares of the pools to investors, usually friends and family members including Zeev Hechter, Amir Hechter, and Prober, each of whom invested in the pools. After purchase, Ocean 18, LLC would service the loans and collect monthly payments from the borrowers, or would initiate foreclosure proceedings when the borrowers defaulted. The investors made money when borrowers made payments, sold the properties, or after foreclosure and re-sale.
Moreno was arrested on July 15, 2014, for his role in the conspiracy. He entered his guilty plea today before United States Magistrate Judge Mitchell D. Dembin. Moreno is scheduled to be sentenced by United States District Judge Roger T. Benitez on January 19, 2015, at 9:00 a.m.
Israel Hechter, Zeev Hechter, Amir Hechter, and Prober each pled guilty in September to participating in the conspiracy and making hidden payments to Moreno. They are all scheduled to be sentenced by Judge Benitez on January 5, 2014, at 9:00 am.
The swift resolution of these bribery and tax charges was the result of coordinated investigations by the Federal Bureau of Investigation, the Federal Housing Finance Agency – Office of Inspector General, and Internal Revenue Service, Criminal Investigation.
DEFENDANT PLEADING GUILTY Case Number: 14CR2277-BEN Robert Moreno
DEFENDANTS PREVIOUSLY CHARGED Amir Hechter Case Number: 14CR2701-BEN Jack Prober Case Number: 14CR2704-BEN Zeev Hechter Case Number: 14CR2702-BEN CHARGESConspiracy to commit bank bribery and tax evasion, in violation of 18 U.S.C. § 371.
INVESTIGATING AGENCY
Maximum Penalties: 5 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Federal Bureau of Investigation
Federal Housing Finance Agency – Office of Inspector General
Internal Revenue Service, Criminal InvestigationBank Teller Charged with Stealing from Customers’ AccountsRead the Press Release
JOHNSTOWN, Pa. - A resident of Ebensburg, Pa., was indicted by a federal grand jury in Johnstown on a charge of misapplication of funds by a bank employee, United States Attorney David J. Hickton announced today.
The one-count indictment named Tonya Wade, 40.
According to the indictment presented to the court, from Sept. 17, 2012, to Aug. 29, 2013, Wade, while employed as a teller at C & G Savings Bank in Gallitzin, Pa, removed $20,950 from customers’ accounts and thereafter converted those funds to her personal use.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Attorney Admits Role in Investment and Real Estate FraudsRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, attorney today admitted his role in a scheme that defrauded investors in connection with a Facebook IPO and several real estate deals, U.S. Attorney Paul J. Fishman announced.
Fred Todd, 61, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of transacting in criminal proceeds.According to documents filed in this case and statements made in court:
Todd is an attorney with offices in Seaside Heights, New Jersey, and Los Angeles, California. His two co-defendants, Eliyahu Weinstein, 39, of Lakewood, and Aaron Glucksman, 41, of Brooklyn, New York, have already pleaded guilty to charges related to their roles in the scheme.
Weinstein, already convicted and sentenced to 22 years in prison in a separate Ponzi scheme, pleaded guilty on Sept. 3, 2014, to three counts of an indictment pending against him: one count of conspiracy to commit wire fraud, one count of committing wire fraud while on pretrial release, and one count of money laundering. He is scheduled to be sentenced on those charges on Dec. 15, 2014.
Glucksman has also pleaded guilty and was sentenced by Judge Pisano on May 5, 2014, to 52 months in prison, three years of supervised release, and ordered him to forfeit $1.2 million. Judge Pisano ordered Glucksman’s sentence to run partially concurrently with a 36-month sentence recently imposed by U.S. District Judge Raymond J. Dearie of the Eastern District of New York in an unrelated case.
In February 2012, Todd and his conspirators offered a pair of investors (referred to in the information as the “Facebook victims”) the opportunity to purchase large blocks of Facebook shares prior to the company’s initial public offering, or IPO, in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get and were expected to increase in value at the time of the IPO. Weinstein and his conspirators did not actually have access to the shares.
Based on misrepresentations by the conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account Weinstein and a conspirator controlled. Weinstein and another conspirator provided investors with false documents showing companies owned by various conspirators held assets, which would secure the Facebook victims’ investment.
The conspirators did not use any of the Facebook victims’ money to purchase Facebook shares, instead misappropriating it for their own use.
Around the same time, Todd and his conspirators also persuaded victims to invest in the purported purchase of an apartment complex in Florida. They told the victims that Weinstein had the opportunity to purchase the notes on the condominiums at a discounted price and immediately flip it at a substantial profit. The victims wired money to complete the purchase, but Todd and his conspirators instead used the money for their own purposes.
The conspiracy count to which Todd pleaded guilty carries a maximum potential penalty of 20 years in prison; the transacting in criminal proceeds count carries a maximum potential penalty of 10 years in prison. Both are also punishable by a potential fine of $250,000 or twice the gross loss or gain from the scheme, whichever is greater.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their role in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit; Assistant U.S. Attorneys Zach Intrater of the Economic Crimes Unit; and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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Defense counsel: James Filan Esq., Westport, Conn.Todd, Fred Information
Assistant U.S. Attorney Kevin Koliner Receives Prestigious National AwardRead the Press Release
United States Attorney Brendan V. Johnson announced that Kevin Koliner, an Assistant U.S. Attorney and Appellate Chief for the District of South Dakota, has received the Top Prosecutor Award by Women in Federal Law Enforcement (WIFLE) for his work in Human Trafficking. Koliner received the national award at the WIFLE Foundation’s Fifteenth Annual Leadership Training August 25-27, 2014, at the Omni Shoreham Hotel in Washington D.C. WIFLE is a not for profit organization working to promote the value that women bring to law enforcement.
The Top Prosecutor Award recognizes one career federal prosecutor for exemplary achievements in prosecutions of federal crimes involving trafficking of women or children, trafficking of human beings for forced labor, commission of crimes of violence against women or a minority group, a civil rights violation, any terrorist-related violation against the United States, or commission of any corporate or government fraud. Koliner was specifically commended for his prosecution of human trafficking cases. He is the first male to receive the award.
“Kevin Koliner is among the most tenacious federal prosecutors when seeking justice for victims of human trafficking,” said U.S. Attorney Johnson. “Kevin has been a devoted, passionate, and successful leader on these cases, and it is very fitting that WIFLE has honored him with their top prosecutor award,” added Johnson.
Over the past several years, Koliner has successfully prosecuted five separate sex trafficking cases that each involved defendants preying on multiple girls and young women. Three of those men—Brandon Thompson, Carl Campbell, and Mohammed Alaboudi—received life sentences. Two others, Emmanuel Nyuon and Tajahn Clinton, were sentenced to 30 years and 33 ½ years respectively. The cases have involved defendants using manipulation, violent force, and coercion to lure and keep victims. Many of the victims have been minors, addicted to drugs, homeless, or mentally deficient.
“I’m most proud that South Dakota has become a leader nationwide, and this award acknowledges that. Our example is all about local, state, and federal law enforcement working collaboratively and prioritizing these cases,” Koliner said. “I’m very humbled and honored to receive this award, but these cases are a team effort, and I’m just one member of the team.”
Koliner frequently provides human trafficking training to groups and organizations throughout the country. Koliner is originally from Yankton and has been with the U.S. Attorney’s Office since 2006.
Armed Bank Robbery of Kalamazoo Credit Union Nets Nearly A Decade in Prison for South Bend, Indiana ManRead the Press Release
Dennis Love also must pay restitution of $18,605 to four victim banks and credit unions.
GRAND RAPIDS, MICHIGAN — U.S. Chief District Judge Paul L. Maloney sentenced Dennis Love, 60, of South Bend, Indiana to 9 ½ years’ (114 months) confinement - 30 months’ confinement for the April 26, 2013 armed credit union robbery of Consumers Credit Union in Kalamazoo, to be served consecutively to 84 months’ confinement for brandishing a firearm during that same robbery, U.S. Attorney Patrick Miles, Jr. announced today. The convictions arise from an Indictment that charged four robberies that occurred in 2013: the Consumers Credit Union in Kalamazoo, the Southern Michigan Bank and Trust in Tekonsha, the Honor Credit Union in Berrien Springs, and the PNC Bank in Martin, Michigan.
Chief Judge Maloney also ordered Love to pay a total of $18,605 in restitution to the four banks involved, broken down by the loss amount from the robbery at each institution. Additionally, Love was sentenced to serve four years of supervised release on each of Counts One and Two of the indictment, to be served concurrently.
U.S. Attorney Miles praised the cooperation between federal, state, and local investigators in locating and prosecuting this serial bank robber. “Armed bank robbery while brandishing a firearm places bank employees in understandable fear for their lives. We will not tolerate this sort of offense in Western Michigan. The judgment handed down by Chief Judge Maloney appropriately recognizes the serious impact of armed bank robbery and brandishing on bank employees, customers, area financial institutions, and the community.”
“The investigation, arrest, and sentencing of Mr. Love for his acts of violence is the result of a coordinated effort between local, state, and federal law enforcement authorities,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The message here is clear—those who commit these acts of violence will be relentlessly pursued at every level, and ultimately held accountable for their actions.”
This case was prosecuted by Assistant U.S. Attorney Clay M. West and jointly investigated by the Federal Bureau of Investigation, Berrien Springs-Oronoko Township Police, Berrien County Sheriff’s Office, Kalamazoo County Sheriff’s Office, Calhoun County Sheriff’s Office, Allegan County Sheriff’s Office, and Michigan State Police.
END
Arizona Man Pleads Guilty to Federal Assault Charge in New MexicoRead the Press Release
ALBUQUERQUE – Antonio Yazzie, 22, an enrolled member of the Navajo Nation who resides in Lukachukai, Ariz., pleaded guilty this morning to an assault with a dangerous weapon charge under a plea agreement with the U.S. Attorney’s Office.
Yazzie and his sister Maraintoinette Lynn Yazzie, 26, also of Lukachukai, Ariz., were arrested in April 2014, on a criminal complaint alleging that attacked a Navajo man at his home in Tohlakai, N.M., on Feb. 26, 2014. The two subsequently were indicted in May 2014, and charged with one count of assault with a dangerous weapon and two counts of robbery. According to court filings, Yazzie and his sister allegedly assaulted the victim by restraining him and striking him repeatedly in the face and head with a rock and a coffee mug. The two then allegedly robbed the victim of cash and his truck.
During today’s proceedings, Yazzie pled guilty to Count 1 charging him with assault with a dangerous weapon. In his plea agreement, Yazzie admitted striking the victim in the head and the face with a rock and a coffee mug with the intent to do bodily harm.
Yazzie has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, he faces a statutory maximum penalty of ten years in prison.
Mariantoinette Lynn Yazzie has been in federal custody since her arrest and has entered a not guilty plea to the charges in the indictment. Charges in the indictment are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Area Chiropractor Pleads Guilty to Health Care Fraud in Scheme Involving Billings to D.C. Medicaid ProgramDefendant Signed Prescriptions and Plans for Home Health Care Even Though He Was Not Qualified to ActRead the Press Release
WASHINGTON – Lewis J. Levine, 57, a chiropractor who practiced in Southeast Washington, pled guilty today to a federal charge of health care fraud for his role in a scheme involving fraudulent claims to the District of Columbia Medicaid program.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr.; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
Levine, of Laurel, Md., pled guilty in the U.S. District Court for the District of Columbia. The Honorable Colleen Kollar-Kotelly scheduled a status hearing for Jan. 8, 2015. The charge carries a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, the parties have agreed that Levine faces a likely range of 10 to 16 months in prison and a fine of $3,000 to $30,000. He also has agreed to pay $50,260 in restitution to the D.C. Medicaid program and an identical amount in a forfeiture money judgment.
The plea agreement calls for Levine to cooperate in a continuing investigation involving fraud, kickbacks, and false billings in the field of home care services for D.C. Medicaid patients.
The fraud involved D.C. Medicaid payments for home care services to be performed by personal care aides, working for home care agencies. The aides assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth. In order to be covered for such benefits, the beneficiaries must get prescriptions from physicians or advanced practice registered nurses. D.C. Medicaid only reimburses for care services if a physician determines after a physical examination that the beneficiary has functional limitations impairing activities of daily living. The prescriptions, also known as “intakes,” propose the frequency and duration of the services to be provided. The prescriptions are translated later into plans of care, also to be signed by the physician.
In the District of Columbia, a typical prescription, or “intake,” calls for eight hours of personal care services per day for five days per week, or eight hours per day for seven days per week. Over the six-month time span authorized by such a prescription, D.C. Medicaid could pay between $16,952 and $23,732 for personal care services provided to one beneficiary.
According to a statement of offense, signed by the government as well as the defendant, Levine is licensed as a chiropractor in the District of Columbia, not as a physician. He worked at the Anacostia Neck & Back Pain Center in Southeast Washington. He was not authorized to prescribe personal care services, and he was not enrolled as a provider in D.C. Medicaid.
“This chiropractor fueled health care fraud in the District of Columbia by signing hundreds of fake prescriptions used to bilk Medicaid in exchange for cash payments,” said U.S. Attorney Machen. “Levine even signed off as the ‘ordering physician’ on prescriptions for patients that he never even met. His guilty plea is another step forward in our efforts to address the epidemic levels of fraud in D.C.’s home health care industry. We will continue to battle this fraud that diverts precious taxpayer dollars, drives up the cost of health care, and jeopardizes the strength of a program that serves the most vulnerable members of our society.”
“Mr. Levine took advantage of D.C.’s Medicaid program by taking money from home health care agencies in exchange for illegally writing prescriptions for patients he never saw or services he was not qualified to provide, ” said Assistant Director in Charge McCabe. “The FBI, with our partners at HHS-OIG, will continue to investigate this criminal activity which impacts our health care system and our public safety, and makes it more difficult for those who truly deserve to receive proper health care services.”
“Being a health care provider in the Medicaid program is a privilege, not a right. When Lewis Levine sold prescriptions for personal care services that he was not even authorized to prescribe, just to enrich himself, he violated the basic trust that taxpayers extend to health care professionals,” said Special Agent in Charge DiGiulio. "Our agents will continue to work with the Department of Justice to root out all forms of waste, fraud and abuse in our federal health care programs.”
According to the statement of offense, Levine and others carried out their scheme to defraud the D.C. Medicaid program from approximately November 2012 through February 2014. Personal care aides, working for at least eight home care agencies, brought numerous beneficiaries to Levine, and he wrote prescriptions and plans of care, listing himself as the “ordering physician,” after brief examinations; sometimes, however, he never even met the beneficiary.
Levine initially was paid $75 for each D.C. Medicaid beneficiary brought to his office by a personal care aide, but he later increased the size of the cash payments to $150. Levine’s prescriptions, or “intakes,” typically included a diagnosis such as “chronic severe back pain” and called for services for eight hours a day, seven days a week, for six months.
During the course of the fraud scheme, Levine signed hundreds of prescriptions and plans of care, and in exchange collected at least $50,260 in cash payments from D.C. Medicaid beneficiaries and personal care aides. Home care agencies used Levine’s prescriptions and plans of care to support and justify their claims for payment to Medicaid – even though the paperwork was invalid on its face because it was not prescribed or signed by a physician as required.
This investigation was conducted by the FBI’s Washington Field Office and the U.S. Department of Health and Human Services, Office of Inspector General. Assistance was provided by the District of Columbia’s Department of Health Care Finance and other agencies.
This case is being prosecuted by Assistant U.S. Attorneys Ted Radway, Lionel André, and Michael Friedman, and Special Assistant U.S. Attorney Dangkhoa Nguyen, of the office’s Fraud and Public Corruption Section, and Assistant U.S. Attorney Anthony Saler of the office’s Asset Forfeiture and Money Laundering Section.
The FBI has set up a hotline number to report suspected incidents of Medicaid fraud: 855-281-1242. People can also provide information by e-mail to [email protected].
HHS-OIG also has a hotline that can be reached at 800-HHS-TIPS or by visiting the agency’s website at http://oig.hhs.gov/ and clicking on the “Report Fraud” tab.
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Numerous agencies are participating in the broader investigation into Medicaid fraud, including the U.S. Secret Service; the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General; the Internal Revenue Service-Criminal Investigation; the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI); the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, Department of Labor; the Social Security Administration, Office of Inspector General, and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office.20 Individuals Indicted on Federal Drug ChargesRead the Press Release
Jackson, Miss - Twenty (20) individuals are facing drug charges in three (3) separate federal indictments unsealed today, announced U.S. Attorney Gregory K. Davis, DEA Assistant Special Agent in Charge Floyd Baker, Director Sam Owens of the Mississippi Bureau of Narcotics and US Postal Service Houston Division Inspector in Charge Robert Wemyss.
Sixteen (16) of the twenty (20) charged were arrested this morning in central Mississippi and in California. As a result of those arrests four (4) firearms and numerous rounds of ammunition were seized.
The indictments are the result of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation, dubbed AOperation Yeti Ice@, which began as an operation targeting illegal narcotics distribution in central Mississippi. This drug network involved the distribution of over 100 Kilograms of Methamphetamine and encompasses the states of California and Mississippi.
Charged in the first indictment:Age
City of Residence
Charges
Maximum penalty
Rodney Gerald Henderson
69
Newton, MS/ Rialto, CA
Conspiracy to Possess with Intent to Distribute Fifty grams or more of Actual Methamphetamine, Distribution of Actual Methamphetamine that resulted in the death of another, and Distribution of 50 grams or more of Actual Methamphetamine.
Life in prison and a
$97 million fine (total charges in three indictments)Kafien Kidd
35
Newton, MS
Conspiracy to Possess with Intent to Distribute 50 grams or more of Actual Methamphetamine.
Life in prison and a
$10 million fineJennifer Toole Kidd
30
Newton, MS
Conspiracy to Possess with Intent to Distribute Actual Methamphetamine.
Twenty years in prison and a $1 million fine.
Marcos Jones
35
Newton, MS
Conspiracy to Possess with Intent to Distribute 50 Grams or more of Actual Methamphetamine, Possession with Intent to Distribute 50 Grams or more of Actual Methamphetamine and Felon in Possession of a Firearm.
Life in prison and a
$1 million fineWalter Pernillo
42
San Bernardino, CA
Conspiracy to Possess with Intent to Distribute 50 grams or more of Actual Methamphetamine
Life in prison a
$10 million fineCliff Williams
36
Meridian, MS
Conspiracy to Possess with Intent to Distribute Actual Methamphetamine
Twenty years in prison and a
$1million fineStacy Shelwood
32
Ocean Springs, MS
Conspiracy to Possess with Intent to Distribute Actual Methamphetamine and Possession with Intent to Distribute 50 Grams or more of Actual Methamphetamine
Twenty years in prison and a
$1 million fineAngelina Fortenberry
38
Decatur, MS
Conspiracy to Possess with Intent to Distribute Actual Methamphetamine
Twenty years in prison and a
$1 million finePrincess Grace
35
Meridian, MS
Conspiracy to Possess with Intent to Distribute Actual Methamphetamine and Possession with Intent to Distribute Actual Methamphetamine.
Forty years in prison and a
$2 million fineTerry Garth
24
Newton, MS
Conspiracy to Possess with Intent to Distribute Actual Methamphetamine, Possession with Intent to Distribute Actual Methamphetamine and Felon in Possession of a Firearm.
Fifty years in prison and a
$2.25 million fineCharged in the second indictment:
Name
Age
City of Residence
Charges
Maximum penalty
Rodney Gerald Henderson
69
Newton, MS/ Rialto, CA
Conspiracy to Possess with Intent to Distribute 50 grams or more of Actual Methamphetamine
Life in prison and a
$97 million fine (total for three indictments)Steven Elias Ochoa
29
San Bernardino, CA
Conspiracy to Possess with Intent to Distribute 50 grams or more of Actual Methamphetamine and Distribution of 50 grams or more of Actual Methamphetamine
Life in prison and a
$26 million fineMichael Thomas McLemore
38
Pearl, MS
Conspiracy to Possess with Intent to Distribute Fifty grams or more of Actual Methamphetamine and Distribution of Fifty grams or more of Actual Methamphetamine.
Life in prison and a
$46 million fineJennifer Higgins McLemore
35
Pearl, MS
Conspiracy to Possess with Intent to Distribute Fifty grams or more of Actual Methamphetamine and Distribution of Fifty grams or more of Actual Methamphetamine.
Life in prison and a
$40 million fineKenneth Waggoner
46
Forest, MS
Conspiracy to Possess with Intent to Distribute Actual Methamphetamine
Twenty years in prison and a
$1 million fineCharged in the third indictment:
Name
Age
City of Residence
Charges
Maximum Penalty
Rodney Gerald Henderson
69
Newton, MS, Rialto, CA
Conspiracy to Possess with Intent to Distribute Fifty grams or more of Actual Methamphetamine and Distribution of Fifty grams or more of Actual Methamphetamine
Life in prison and a
$97 million fine (total for three indictments)Christopher Raynard Kidd
26
Rialto, CA
Conspiracy to Possess with Intent to Distribute Fifty grams or more of Actual Methamphetamine and Distribution of Fifty grams or more of Actual Methamphetamine
Life in prison and a
$20 million fineRonnie Round
45
Conehatta, MS
Conspiracy to Possess with Intent to Distribute Actual Methamphetamine and Distribution of Actual Methamphetamine
Forty years in prison and a
$2 million fine.Thomas Odell Mason
55
Little Rock, MS
Conspiracy to Possess with Intent to Distribute 50 Grams or more of Actual Methamphetamine and Distribution of Actual Methamphetamine.
Life in prison and a
$11 million fine.Jakeivia Fairley
24
Rialto, CA
Conspiracy to Possess with Intent to Distribute Actual Methamphetamine and Distribution of Actual Methamphetamine.
Forty years in prison and a
$2 million fine.Beatrice Williams McEntee
56
Forest, MS
Conspiracy to Possess with Intent to Distribute Actual Methamphetamine and Possession with Intent to Distribute 50 Grams or more of Actual Methamphetamine
Forty years in prison and a
$2 million fine.Jamie Tavare Thames
40
Forest, MS
Conspiracy to Possess with Intent to Distribute Actual Methamphetamine, Possession with Intent to Distribute Five Grams or more of Actual Methamphetamine and Distribution of Actual Methamphetamine
One hundred forty years in prison and a $13 million fine.
“The unlawful distribution of controlled substances violates federal law and constitutes a danger to our communities,” said U.S. Attorney Gregory K. Davis. “This operation evidences the commitment of federal law enforcement to aggressively investigate and prosecute those who, through violation of federal criminal laws, pose a threat to the safety of our communities. Through joint law enforcement efforts such as this one, we can make our cities safer for our children and every law abiding citizen. Our thanks go out to the federal, state and local law enforcement officers who contributed to the investigation that led to this prosecution.”
DEA Assistant Special Agent in Charge, Floyd Baker stated: “This investigation demonstrates the effectiveness of the Organized Crime Drug Enforcement Task Force and how cooperation between federal, state and local agencies is an essential component of efforts by law enforcement to disrupt drug trafficking organizations that operate in our area. The successful indictments/arrest of these defendants should put others who engage in this type of activity on notice: if you sell drugs you will face federal charges and a lengthy prison sentence. These combined law enforcement efforts send a message of our unending resolve to pursue drug traffickers who wreak havoc in our communities.”
MBN Director Sam Owens stated: “The arrest of these suspects, the dismantling of their organization, and the seizure of drugs and assets valued at more than $1 million do much to impede the drug trade in Mississippi.”
USPS Inspector in Charge, Houston Division, Robert Wemyss added: "These indictments are merely the latest in a long tradition of Postal Inspectors relentlessly pursuing anyone who misuses the nation's mail system to distribute illegal, dangerous drugs. I'm proud of the work done by all the agents involved in this investigation, and look forward to their continued enforcement."
This OCDETF operation was led by the Drug Enforcement Administration and the Mississippi Bureau of Narcotics with assistance from the U.S. Marshal Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Postal Service, Internal Revenue Service Criminal Investigation, Scott County Sheriff’s Office, Leake County Sherriff’s Office, Madison County Sherriff’s Office, Carthage Police Department, Forest Police Department, Newton County Sherriff’s Office, Lauderdale County Sherriff’s Office, Decatur Police Department, Richland Police Department, Pearl Police Department, Ridgeland Police Department, and the Jackson Police Department. It will be prosecuted by Assistant U.S. Attorney Erin Chalk.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The defendants will be arraigned on September 11, 2014 at 1:00 p.m. before United States Magistrate Judge Linda R. Anderson.
Terry Garth of Newton, Princess Grace of Meridian, Kenneth Waggoner of Forest, and Christopher Raynard Kidd of Rialto, California have not been arrested. Anyone with information on their whereabouts please contact your local police department.
The public is reminded that a criminal indictment is a formal charge against a defendant. It is merely an accusation and a defendant is presumed innocent until proven guilty in a court of law.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
8 September 2014
Westerly Resident Charged with Alleged Assault on Narragansett Indian Tribal LandRead the Press Release
PROVIDENCE, R.I. – Troy Lake Simonds, 26, of Westerly, was released on unsecured bond following an initial appearance today in U.S. District Court in Providence on a federal criminal complaint charging him with assault with a dangerous weapon, with intent to do bodily harm. Simonds is charged in connection with an alleged stabbing incident that occurred on Tribal land on August 9, 2014, during the Tribe’s annual Powwow celebration.
According to an affidavit in support of an arrest warrant and criminal complaint filed with the court, it is alleged that Simonds assaulted a person who was attempting to intervene in large altercation on a roadway on Tribal land. The victim alleges that he was stabbed in the back and in the chest as he attempted to assist a woman who had allegedly been involved in a motor vehicle accident. According to the affidavit, several witnesses identified Simonds as the alleged attacker.
Simonds is charged in federal court pursuant to the Major Crimes Act, 18 U.S.C. 1153 (Offenses Committed within Indian Country) which provides in pertinent part:
Any Indian who commits against the person or property of another Indian any of the following offenses, namely . . . a felony assault . . . within the Indian Country shall be subject to the same law and penalties as all other persons committing any of the above offenses within the exclusive jurisdiction of the United States.
Simonds arrest and initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan is announced by United States Attorney Peter F. Neronha and Narragansett Indian Tribal Police Chief Antone Monroe.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The matter was investigated by the Narragansett Indian Tribal Police, with the assistance of the FBI.
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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]Washington Man Sentenced for Possession of Methamphetamine and a Firearm and AmmunitionRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on Sept. 8, 2014, Christopher Juaquin Russell, 34, Tacoma, Wash., was sentenced before U. S. District Judge Daniel L. Hovland to serve 20 years in prison for possession with intent to distribute a controlled substance and possession of a firearm and ammunition by a convicted felon.
On September 14, 2013, a Montana Highway Patrol officer attempted to stop a car driven by Christopher Russell near Fairview, Montana. Russell refused to stop and a chase commenced which ended in North Dakota. McKenzie County law enforcement officials were able to apprehend Russell on Highway 85 near Arnegard, ND. There was one female passenger in the car. After stopping and arresting Russell, officers found approximately two ounces of methamphetamine and a .380 caliber pistol in the car. Evidence revealed that Russell was traveling to the New Town, ND area to distribute the methamphetamine. Russell was prohibited from legally possessing a firearm due to four felony convictions, including a 2006 Missouri conviction for delivery of a controlled substance.
Judge Hovland also ordered that Russell serve 10 years of supervised release and was ordered to pay a $200 special assessment to the Crime Victims Fund.
The case was investigated by Northwest Narcotic Task Force, McKenzie County Sheriff’s Office, Federal Bureau of Investigation, and the Montana Highway Patrol.
Assistant U. S. Attorney David D Hagler prosecuted the case.
United States Pursues Claims Against Neurosurgeon, Spinal Implant Company, Physician-Owned Distributorships and Their Non-Physician Owners for Alleged Kickbacks and Medically Unnecessary SurgeriesRead the Press Release
The United States has filed two complaints under the False Claims Act against Michigan neurosurgeon Dr. Aria Sabit, spinal implant company Reliance Medical Systems, two Reliance distributorships—Apex Medical Technologies and Kronos Spinal Technologies—and the companies’ owners, Brett Berry, John Hoffman and Adam Pike, the Justice Department announced today. The complaints allege that Apex Medical and Kronos Spinal paid physicians, including Sabit, to induce them to use Reliance spinal implants in the surgeries they performed.
“Improper payments to physicians can alter a physician’s judgment about patients’ true health care needs and drive up health care costs for everyone,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “The Justice Department is committed to enforcing the laws that prohibit such payments.”
Berry and Pike founded Reliance in 2006, and subsequently created more than 12 physician-owned distributorships that sold Reliance devices. Each of Reliance’s distributorships sold spinal implants ordered by their physician-owners for use in procedures the physician-owners performed on their own patients. The complaints allege that Reliance used one of its distributorships, Apex Medical, to funnel improper payments to Sabit for using Reliance spinal implants in his surgeries. According to the complaints, Sabit began using Reliance implants on his patients only after he acquired an ownership interest in Apex and started receiving payments from the sale of Reliance’s spinal implants. Apex allegedly paid Sabit $438,570 between May 2010 and July 2012, during which time Sabit used Reliance implants in approximately 90 percent of his spinal fusion surgeries. The government also alleges that these payments caused Sabit to perform medically unnecessary or excessive surgeries on certain patients who did not need the spinal implants.
The government further alleges that Reliance operated a second distributor, Kronos, in southern California, which made improper payments to two other physicians, Drs. Ali Mesiwala and Gowriharan Thaiyananthan. Allegedly, Reliance’s owners were recorded telling a potential Kronos investor that Reliance was formed as part of a plan to “get around” the federal Anti-Kickback Statute, which prohibits such improper payments, and that Reliance pays its physician-investors enough in the first month or two to “put their kids through college.”
The allegations that Sabit performed medically unnecessary or excessive surgeries were raised in a separate lawsuit filed by Dr. Cary Savitch and Dr. Gary Proffett under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The act also permits the government to intervene in the whistleblowers’ lawsuit. In this case, the government has both intervened in the whistleblowers’ medical necessity claims and filed a separate lawsuit containing kickback claims against both Sabit and the Reliance defendants.
These lawsuits illustrate 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 Attorney General and the Secretary 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 a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This investigation was a coordinated effort among the Commercial Litigation Branch of the department’s Civil Division and the U.S. Department of Health and Human Services-Office of the Inspector General. The lawsuits were filed in the Central District of California (Los Angeles), and are captioned United States ex rel. Carey Savitch, M.D., and Gary Proffett, M.D. v. Aria Sabit, M.D., Moustapha Abou-Samra, M.D., and Community Memorial Health System, Case No. 13-3363, and United States v. Reliance Medical Systems, Apex Medical Technologies, Kronos Spinal Technologies, Bret Berry, John Hoffman, Adam Pike, and Aria Sabit, M.D.
The claims asserted by the government are allegations only, and there has been no determination of liability.
U.S. Attorney’s Office, FBI Prepared to Respond to Complaints of Election Fraud and Voting Rights AbusesRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today reminded voters that the United States Attorney’s Office and the local office of the FBI, in consultation with Justice Department Headquarters in Washington, are prepared to receive and review complaints of allegations of election fraud and voting rights abuses during Tuesday’s primary election.
The Department of Justice’s voting program seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
To report suspected election fraud or voting rights abuses at the polls in Rhode Island, the United States Attorney’s Office can be reached by the public at (401) 709-5068. In addition, the FBI will have special agents available to receive allegations of voting fraud and other election abuses. The FBI Rhode Island field office can be reached by the public at (401) 272-8310.###
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]U.S. Attorney Files Suit to Reclaim Federal Unemployment Compensation, Seeks Triple Damages and Additional Penalties from North Providence Resident Who Allegedly Collected Unemployment Benefits While in SyriaRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today announced the filing of a civil complaint in U.S. District Court in Providence against Ahmad Jbawi, 39, of North Providence, R.I., alleging that Jbawi made multiple false representations to the State of Rhode Island’s Department of Labor and Training in order to collect federally funded extended unemployment benefits to which he was not entitled. It is alleged that Jbawi falsely claimed and certified that he was able and available for work when this was not true under Rhode Island State law. In fact, he was mainly in Syria for more than half of the 700 days between January 18, 2009 and April 16, 2011, during which time he collected nearly $35,000 in federally funded benefits.
In the wake of the global financial crisis, in 2008 Congress authorized multiple federally-funded extensions of benefits for individuals collecting unemployment. In many cases, these extension payments, administered by the state, were critical to the ability of unemployed individuals to meet basic economic needs. Under program guidelines, however, to receive unemployment benefits, an applicant is required to certify that he/she are able and available for work and attached to the labor market. An applicant is also required to report any self or outside employment to the state.
The government’s case is brought under the False Claims Act, which allows the United States to recover federal funds that are paid out as a result of fraud, as well as triple damages and penalties of between $5,500 and $11,000 for each false claim submitted. According to the complaint, it is alleged that Jbawi made at least 56 false claims and fraudulently collected $34,290 in federally funded unemployment benefits. The U.S. Attorney is seeking all legally available remedies in this matter.
“While the amount in question may appear to some to be modest, the principle at issue in this case is not,” said United States Attorney Peter F. Neronha. “These funds were designated to provide unemployed individuals the opportunity to support themselves and their families through difficult times while they looked for work, not to reward fraud like the conduct alleged here. This Office will vigorously pursue abuses of this program with all the legal tools at our disposal.”
A Civil Complaint is merely an allegation and is not evidence of guilt or liability, which the government is required to establish by a preponderance of the evidence.
This case is being handled by Assistant U.S. Attorney Zachary A. Cunha. The matter was investigated by the United States Department of Labor Office of Labor Racketeering and Fraud Investigations and the Rhode Island Department of Labor and Training Fraud Unit.
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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]Two Sioux Falls Men Sentenced for Possession and Distribution of Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that two Sioux Falls, South Dakota, men have been sentenced by U.S. District Judge Roberto A. Lange on controlled substance charges.
Dalton Rogers and Ryan Quarve, both age 21, were indicted by a federal grand jury on January 15, 2014, for Possession with Intent to Distribute a Controlled Substance.
Rogers pled guilty to Possession with Intent to Distribute a Controlled Substance on June 3, 2014. On June 4, 2014, Quarve pled guilty to Possession of a Controlled Substance.
On August 29, 2014, Rogers was sentenced to 45 days in custody, with 2 years of supervised release to follow, and a $100 special assessment to the Federal Crime Victims Fund. Quarve was previously sentenced on June 4, 2014, to 1 month in custody, to be followed by 12 months of supervised release, and a $25 special assessment to the Federal Crime Victims Fund. Both men were ordered to pay a $1,000 fine.
The convictions arose as the result of an October 18, 2013, traffic stop in Lyman County by the South Dakota Highway Patrol of a vehicle occupied by Rogers and Quarve. During a subsequent search of the vehicle, the trooper discovered 10 packages of marijuana, approximately 1-pound each, and 30 vials (30.45 grams) of hashish. Both are Schedule I drugs.
The investigation was conducted by the South Dakota Highway Patrol and the Northern Plains Safe Trails Drug Enforcement Task Force. The case was prosecuted by Assistant U.S. Attorney Jay Miller.
Quarve was remanded to the custody of the U.S. Marshals Service to begin serving his sentence. Rogers has been allowed to self-report to the custody of the U.S. Marshals Service on October 1, 2014.
Two Child Exploitation Cases: Modesto Man Sentenced and Madera Man Pleads GuiltyRead the Press Release
FRESNO, Calif. — One defendant was sentenced and one pleaded guilty today in separate child exploitation cases, United States Attorney Benjamin B. Wagner announced.
In the first case, Senior United States District Judge Anthony W. Ishii sentenced William John Cornelius, 49, of Modesto, to six years and six months in prison, to be followed by 15 years of supervised release, for his conviction for possession of child pornography. According to court documents, between December 8, 2012, and January 11, 2013, Cornelius knowingly possessed more than 600 images of child pornography. Some of the images depicted prepubescent minors and other images depicted violence or sadistic or masochistic conduct. He was also ordered to pay $3,000 to the National Center for Missing & Exploited Children in Alexandria, Virginia. This case was the result of an investigation by the Ceres Police Department.
In the second case, Ernest Garza Reyes, 31 of Madera, pleaded guilty before Judge Ishii to two counts of receiving child pornography. Between July 2, 2011, and November 13, 2011, he knowingly received or distributed images of child pornography using a computer connected to the Internet. A sentencing hearing has been scheduled for November 17, 2014, at 10:00 a.m. At that time Reyes faces a maximum potential sentence, for each count, of 20 years in prison, a $250,000 fine, and a lifetime term of supervised release. The actual sentence, however, will be determined by the court after considering the federal sentencing guidelines and a number of statutory factors. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Sheriff’s Offices of Madera and Fresno Counties.
Assistant United States Attorney David Gappa prosecuted both cases. They were brought as part of Project Safe Childhood (PSC), 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 and prosecute those who sexually exploit children, and to rescue victims. For more information about PSC, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Tuscaloosa County Freight Broker Charged with Bribing Guard Officials to Get Transport ContractsRead the Press Release
BIRMINGHAM -- Federal prosecutors have charged a Tuscaloosa County freight broker with bribing two National Guard officials to steer military transport contracts totaling $441,698 to the two Alabama companies he represented, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.
The U.S. Attorney's Office late Friday charged DANIEL BOYD, 60, of Vance, in a four-count information filed in U.S. District Court. The information charges Boyd with two counts of bribery and two counts of mail fraud in the scheme to illegally obtain shipping contracts for Crimson Express and U.S. Transport. He has entered an agreement with the government to plead guilty to the charges.
One of the National Guard officials Boyd is charged with bribing, Timothy Wooten, 52, a traffic management specialist for the Guard Bureau's U.S. Property and Fiscal Office in South Carolina, pleaded guilty in June to three wire fraud counts and one count of accepting bribes to steer freight contracts to an Alabama broker. Boyd's information and plea agreement reference Wooten as T.W.
Boyd also is charged with bribing a traffic management specialist for the Guard's U.S. Property and Fiscal Office in Florida. The Florida official is identified in the court documents as K.T.
K.T.'s and T.W.'s duties with the National Guard Bureau included procuring funding for and arranging the movement of personnel, items and equipment. Their duties also involved managing the transportation with their respective states, in coordination with the Department of Defense, Department of the Army, National Guard Bureau and active duty installations.
According to Boyd's plea agreement, he and K.T. agreed in January 2011 that Boyd would hire K.T. when he left his National Guard service at the end of February 2011. During that February, K.T. used his position to award transportation contracts to Boyd's Crimson Express, and Boyd paid K.T. about 50 percent of the commissions he received on those contracts.
Boyd reached his bribery agreement with Wooten in October 2011, according to Boyd's and Wooten's plea agreements. In exchange for Wooten using his position to award contracts to Boyd's companies, Boyd paid Wooten about 25 percent of the commissions he received on the contracts.
Boyd received total commissions of about $156,386 on the $441,698 in transportation contracts the two Guard officials awarded to Crimson Express and U.S. Transport, according to Boyd's plea agreement. In exchange, Boyd paid bribes of about $20,252 to K.T. and about $29,742 to Wooten, Boyd acknowledges in his plea agreement.
The two Guard traffic management specialists were able to steer the contracts to Boyd's companies by overriding the government's electronic system that generated a list of "Best Value Carriers" for a freight shipment so that they could manually select a company for the contract, according to court records.
Boyd acknowledges in his plea agreement that he had his wife write checks to Wooten's wife to pay the bribes he promised. The U.S. Postal Service delivered those checks from Alabama to Lexington, S.C., where Wooten lived.
The FBI and Army CID, MPFU, investigated the case, which Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting.
Three Members of Northeast Washington Crew Plead Guilty to Charges in Three SlayingsCrew Operated in Area of 21st and Maryland Streets NE; Shootings Took Place in 2007 and 2011Read the Press Release
WASHINGTON – Anthony Hatton, James L. Harris, and Jekwan Smith, all members of a crew that operated in and near 21st Street and Maryland Avenue in Northeast Washington, pled guilty today to charges stemming from a series of murders that took place in the area, U.S. Attorney Ronald C. Machen Jr. announced.
Hatton, 21, Harris, 22, and Smith, 23, all of Washington, D.C., pled guilty on the day their trial was to begin in the Superior Court of the District of Columbia. According to the government’s evidence, the defendants and other crew members sold drugs and carried guns in the area of 21st and Maryland NE and committed violent crimes, including killing those whose interests were contrary to those of the crew.
Hatton pled guilty to a charge of second-degree murder while armed for the murder of Tyrell Fogle, which took place at about 10:30 p.m. on Aug. 29, 2011. Mr. Fogle, 17, was shot multiple times and collapsed in front of a building in the 1900 block of Bennett Place NE.
Harris and Smith pled guilty to voluntary manslaughter while armed for the shooting death of Isaiah Sheffield, which took place at about 1:45 a.m. on Sept. 24, 2011. Mr. Sheffield, 24, was shot in the 1100 block of 21st Street NE.
Smith also pled guilty to voluntary manslaughter while armed for the shooting death of Michael Pearson, which took place at about 8:20 p.m. on Oct. 29, 2007. Mr. Pearson, 27, was shot in the 2100 block of I Street NE.
The plea agreements, which are contingent upon the Court’s approval, call for Hatton to be sentenced to 15 years of incarceration, Harris to 10 years, and Smith to 17 ½ years in prison. The Honorable Lynn Leibovitz scheduled sentencing for Nov. 14, 2014.
In announcing the pleas, U.S. Attorney Machen praised the investigative work of the Metropolitan Police Department, U.S. Park Police, and the U.S. Marshal Service. He also expressed appreciation for the work of Dr. Lois Goslinoski and Dr. Marie Pierre-Louis of the Office of the Chief Medical Examiner of the District of Columbia. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Alesha Matthews and Meridith McGarrity; Intelligence Analyst Zachary McMenamin; Criminal Investigator Durand Odom; Witness Security Specialists Debra Cannon, David Foster, Michael Hailey, and Tanya Via; Litigation Services Specialists Ron Royal, William Henderson and Paul Howell; and Victim/Witness Advocate Marcia Rinker.
Finally, he commended the work of Assistant U.S. Attorneys Laura R. Bach and Erin O. Lyons, who investigated and prosecuted the cases.
14-198TheBus Former Credit Union Employee Sentenced for EmbezzlementRead the Press Release
HONOLULU – On September 8, 2014, Jenny Nishida, age 41, former Oahu Transit Services Employees Federal Credit Union (OTSEFCU) employee, was sentenced on one felony count of embezzlement and misapplication of funds in a proceeding before Chief United States District Judge, Susan Oki Mollway. Nishida was sentenced to thirteen (13) months imprisonment and ordered to pay restitution in the amount of $330,459.99. OTSEFCU is the credit union for current and former employees and family members of the Oahu Transit Services, the entity that operates “TheBus”.
United States Attorney Florence T. Nakakuni said that, according to the charging documents, the defendant obtained online access to the VISA payment system for OTSEFCU and falsely inputted VISA payments for herself and a family member. These VISA payments were false in that the payments were never actually made to OTSEFCU, but the defendant credited her and the family member’ accounts, as if these payments were made. From approximately 2006 to 2012, Nishida falsely inputted 122 false VISA payments totaling $358,685.
On May 5, 2014, a former OTSEFCU co-worker, Dona Takushi, age 54, former OTSEFCU manager, pled guilty to one felony count of embezzlement and misapplication of funds, and two felony counts of making false entries. Takushi will be sentenced on September 11, 2014, at 10:30 a.m. Another former OTSEFCU co-worker, Nicole Cheung, has already been sentenced to 20 days imprisonment for one felony count of embezzlement and misapplication of funds. Information has not been presented to the court linking the three together in their criminal activity.
The case was investigated by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorney Cynthia Lie.
Suspected Member of Armenian Smuggling Ring Arrested on ComplaintRead the Press Release
SAN DIEGO, CA – An alleged fourth member of an Armenian alien smuggling ring made her first appearance in federal court today before U.S. Magistrate Judge Nita L. Stormes.
Maria Yanakopulus, 57, is charged with participating in an international alien smuggling organization that brought undocumented Armenian nationals illegally into the United States in exchange for thousands of dollars.
A complaint unsealed today alleges that Yanakopulus was a member of an international smuggling enterprise whereby Armenian nationals were smuggled from Armenia to the United States by way of Moscow, Russia and Cancun, Mexico. In exchange, Armenian nationals were made to pay up to $18,000 each to be brought into the United States. Once in Mexico, the smuggling organization would transport the Armenian nationals to Tijuana, Mexico. The alien smuggling ring would then procure valid U.S. legal permanent resident or passport cards from within the United States and attempt to pass the Armenian nationals as imposters to those documents through the San Ysidro, California, Port of Entry.
In this case, on October 30, 2013, Yanakopulus allegedly drove her white Honda Civic with three undocumented Armenian nationals into the United States through the San Ysidro Port of Entry. Yanakopulus presented to a Customs and Border Protection officer valid I-551 cards (“green cards”) bearing the names and photographs of other individuals for the three Armenian nationals. The three Armenian nationals were then admitted into the United States as imposters to the green cards.
Yanakopulus is the fourth member of this alien smuggling organization arrested by federal agents. On November 1, 2013, Varduhi Avagyan, 42, and Meri Avetisyan, 40, both of Glendale, California were arrested for attempting to smuggle two Armenian nationals into the country. On June 12, 2014, Grigor Chatalyan, the alleged ring leader of the smuggling ring, was arrested as he crossed into the United States at the San Ysidro Port of Entry. Chatalyan is charged with coordinating and directing the international alien smuggling organization. Chatalyan, Avagyan, and Avestisyan are charged in case No. 14CR1646-MMA and a motion hearing/trial setting is scheduled for November 3, 2014 in that case.
Yanakopulus is charged with conspiracy and three counts of bringing in illegal aliens for financial gain. In addition, Yanakopulus is charged with aiding and abetting aggravated identity theft. She faces a maximum penalty of up to 15 years imprisonment and a $250,000 fine. If convicted on all charges, Yanakopulus could be sentenced to a mandatory minimum of five years in custody as well as an additional two year consecutive sentence for aggravated identity theft.
Judge Stormes held a bond hearing today and ordered conditions of release for Yanakopulus, which include the posting of a $30,000 cash or corporate surety bond. A preliminary hearing is scheduled for September 18, 2014, before Judge Stormes.
DEFENDANT Case Number: 14MJ3067 Maria Yanakopulus Age: 57 Glendale, California CHARGESConspiracy, 18 U.S.C. § 371
Bringing in Illegal Aliens for Financial Gain, 8 U.S.C. §1324(a)(2)(B)(ii)
Aiding and Abetting Aggravated Identity Theft, 18 U.S.C. § 1028A and 18 U.S.C. § 2
INVESTIGATING AGENCYHomeland Security Investigations
*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.
State Line Defendant Sentenced for Meth Distribution and Felon in Possession of A FirearmRead the Press Release
BOISE – Christian Robert Michael Paradis, 34, of the State line area—at various times a resident of New Plymouth, Fruitland and Payette, Idaho, and Ontario, Oregon—was sentenced to 72 months in prison for possession of a controlled substance with intent to distribute, and felon in possession of a firearm, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Paradis to serve five years of supervised release and 100 hours of community service following his release from prison.
According to court documents, following several “controlled buys” of small amounts of methamphetamine, a search warrant was obtained for a house at which Paradis frequently stayed. In a bedroom of the house, which Paradis shared with relatives’ young children, High Desert Drug Task Force officers found 175 grams of methamphetamine, digital scales, a “cutting agent” and syringes. Officers also found a Bryco.380 caliber semi-automatic pistol and a short-barreled weapon made from a 12 gauge shotgun, having a barrel of less than 18 inches. At the time of his arrest, Paradis had more than $1,200 in currency in his pocket. Paradis had previously been convicted of several felony drug offenses, including two in Malheur County in 2011, and 2013.
The case was investigated by federal agents of the Bureau of Alcohol, Tobacco and Firearms, and High Desert Drug Task Force, including the Payette County Sheriff’s Office and Payette County Prosecuting Attorney’s Office.
Shepherdsville, Kentucky, Man Charged with Embezzling over $800,000 from His EmployerRead the Press Release
– Alleged to have manipulated accounting entries to pay himself bonuses
LOUISVILLE, Ky. – The indictment of a Shepherdsville, Kentucky man, charged with multiple counts of wire fraud, was unsealed Friday, September 5, 2014, in United States District Court, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Robert Kaiser, 58, was charged in a twelve count Indictment on September 4, 2014 with theft of more than $800,000 from his employer, C&M Services of Kentucky, Inc. (“C&M Services”) between June 6, 2006 and March 26, 2013, and with an attempt to defraud Fifth Third Bank by submitting fraudulent financial statements to obtain a loan.
According to the Indictment, Kaiser caused unauthorized transfers of monies to accounts he controlled, by fraudulently manipulating accounting entries in order to pay himself performance compensation and bonuses. Further, the Indictment alleges that Kaiser fraudulently transferred funds of C&M Services via credit card transfers and checks for unauthorized personal expenditures, and then concealed all of his theft from C&M Services by making false accounting entries and submitting fraudulent financial statements to obtain a revolving line of credit from Fifth Third Bank in order to conceal his theft.
In furtherance of the scheme, Kaiser caused interstate automated clearing house financial transfers from the C&M Services bank accounts at Fifth Third and Republic Banks to his personal Wells Fargo Credit Card accounts. According to the Indictment, Kaiser made eleven transactions between September 9, 2009, and January 22, 2013.
Also, between December 14, 2012, and March 26, 2013, Kaiser allegedly submitted materially false financial statements to Fifth Third Bank to obtain a revolving loan line of credit in the amount of $1,815,000.
“When the Secret Service receives allegations about people of high standing in companies taking advantage of their position of trust, we will investigate possible criminal activity,” stated Special Agent in Charge Paul R. Johnson of the U.S. Secret Service Louisville Field Office. “The Secret Service is committed to vigorously pursuing ‘Trusted Insiders’ who operate illegally within business organizations.”
If convicted at trial, Kaiser would forfeit real property he obtained, directly or indirectly, as a result of the violations alleged in the Indictment. Kaiser could be sentenced to no more than 20 years in prison for counts 1-11 of the indictment and no more than 30 years for count twelve, a fine of $1,250,000 and three years of supervised release.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the United States Secret Service, Louisville Field Office.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
SAC Capital Portfolio Manager Mathew Martoma Sentenced in Manhattan Federal Court to Nine Years for Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MATHEW MARTOMA, a former portfolio manager of CR Intrinsic Investors, LLC, a division of SAC Capital, was sentenced today in Manhattan federal court to nine years in prison based on his participation in the most lucrative insider trading scheme ever charged, involving approximately $275 million in illegal profits and avoided losses. Martoma was convicted of one count of conspiracy to commit securities fraud and two counts of securities fraud after a four-week jury trial presided over by U.S. District Judge Paul G. Gardephe in January and February of this year.
Manhattan U.S. Attorney Preet Bharara said: “SAC Capital portfolio manager Mathew Martoma received a bonus of more than $9 million for the $275 million he made for his hedge fund through the most profitable insider trading scheme ever charged. Today, Martoma was sentenced to nine years in prison, and financial penalties that strip him of the ill-gotten millions in proceeds of his crime. Today’s sentence of a lengthy prison term is well-suited to the audacity of the illegal trading in this case. The long and short of Mathew Martoma’s trading is that he traded his liberty, his name and his time with his family for what in the end is nothing.”
According to the allegations in the Superseding Indictment filed in Manhattan federal court, other court documents, and the evidence presented at trial:
During the period of the insider trading scheme, MARTOMA was an SAC Capital portfolio manager responsible for investment decisions in public companies in the health care sector, including pharmaceutical companies Elan and Wyeth, that were involved in the development of experimental drugs to combat Alzheimer’s Disease. At the time, scientists and investors alike were awaiting the results of a clinical trial being conducted by Elan and Wyeth of a drug called bapineuzumab, which offered a novel but untested approach to the treatment of Alzheimer’s Disease (the “Drug Trial”).
In order to obtain material non-public information (the “Inside Information”) about the Drug Trial, MARTOMA, shortly after starting his employment at SAC Capital in the summer of 2006, began using expert networking firms to try to speak to doctors involved in the Drug Trial who had access to confidential information. Through these efforts, MARTOMA arranged dozens of paid consultations with one of the Drug Trial’s principal investigators, Dr. Joel Ross, and the chairman of the Drug Trial’s Safety Monitoring Committee (“SMC”), Dr. Sidney Gilman. Through an exploitation of MARTOMA’s personal and financial relationships with these doctors, MARTOMA was able to obtain Inside Information about the Drug Trial.
The information that MARTOMA initially received from Dr. Ross included anecdotal reports concerning patients under the care of Dr. Ross. The Inside Information MARTOMA initially received from Dr. Gilman included generally positive safety data about which Dr. Gilman was aware through his chairmanship of the SMC. In fact, Martoma arranged a paid consultation shortly after each and every SMC meeting in part to ensure that he would be among the first to learn if any substantial safety issues were emerging from the Drug Trial that could lead to the cancellation of the Drug Trial and decreases in the price of Elan and Wyeth stock. Based in part on the positive safety information, MARTOMA purchased and held shares of Elan and Wyeth, and further recommended that the owner of the Hedge Fund (the “SAC Capital Owner”) purchase and hold Elan and Wyeth securities, which the SAC Capital Owner did. By the spring of 2008, SAC Capital held approximately $700 million worth of Elan and Wyeth equity securities.
Elan and Wyeth planned to release the full results of the Drug Trial to the investing public at the International Conference on Alzheimer’s Disease (the “ICAD Presentation”) on July 29, 2008. Dr. Gilman was selected to present the results on behalf of both drug companies and was “unblinded” to the full safety and efficacy results of the drug trial on July 15, 2008. Until that time, Dr. Gilman had only been privy to the safety results of the Drug Trial. On July 17, 2008, Dr. Gilman received a draft PowerPoint presentation that had been created for the ICAD meeting and that was marked “Confidential, Do Not Distribute.” The draft PowerPoint presentation showed that the Drug Trial results were negative, particularly in comparison with market expectations.
Later on July 17, 2008, MARTOMA called Dr. Gilman from his home and spoke to Dr. Gilman in detail about the negative news in the draft PowerPoint presentation during a phone call that lasted one hour and forty-five minutes. Then, on Saturday, July 19, 2008, MARTOMA flew roundtrip from New York City to Detroit, Michigan, to meet Dr. Gilman in his University of Michigan office and review the negative news in the draft PowerPoint presentation further.
The next day, Sunday, July 20, 2008, MARTOMA sent the SAC Capital Owner an email in which he wrote that “…It’s important [that we speak,]” which they did, for approximately 20 minutes. The SAC Capital Owner then directed SAC Capital to sell Elan and Wyeth securities prior to the ICAD Presentation. Over the next seven days, SAC Capital liquidated its entire equity position in Elan and almost all of its equity position in Wyeth – a total of 17.7 million shares worth approximately $700 million. SAC Capital also shorted Elan and Wyeth by approximately 7.75 million shares. This trading represented over 20% of the reported U.S. trading volume in Elan and 11% of the volume in Wyeth.
MARTOMA also received information about the ICAD presentation from Dr. Joel Ross. In particular, on the evening of July 28, 2008, after Dr. Ross had been unblinded to the Drug Trial results at a dinner for Principal Investigators, Dr. Ross met with MARTOMA in a hotel lobby to discuss the negative results. To the surprise of Dr. Ross, MARTOMA already seemed to know of the Drug Trial results.
The day after the ICAD presentation, Elan stock closed approximately 42% lower and Wyeth shares fell approximately 11%.
Through this trading activity SAC Capital earned profits and avoided losses of approximately $275 million.
In imposing the nine-year prison sentence, Judge Gardephe described Martoma’s conduct as “deeply corrosive to our financial markets,” generating cynicism among investors.
MARTOMA, 40, was also ordered to forfeit to the United States $9.3 million, representing the bonus he earned through the insider trading, as well as his interests in his Florida home and several bank accounts. Judge Gardephe also imposed a term of three years of supervised release following Martoma’s completion of this sentence.
Mr. Bharara praised the efforts of the FBI and also thanked the SEC for its assistance in the investigation. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort 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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Arlo Devlin-Brown and Eugene Ingoglia are in charge of the prosecution. Assistant U.S. Attorney Christine I. Magdo of the Office’s Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
Rock Hill Man Sentenced to Maximum of 10 Years on Firearm and Ammunition ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Clarence L. Rhodes, age 37, of Rock Hill, South Carolina was sentenced to the maximum sentence of 120 months (10 years) imprisonment today in federal court. Earlier this year, Rhodes plead guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1). United States District Judge Joseph F. Anderson, Jr. imposed the sentence, which will be followed by three (3) years of supervised release.
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Evidence presented at the change of plea hearing established that at approximately 11:34 pm on June 15, 2013, York Police Department officers received a call about an intoxicated man in the roadway. Officers responded to the scene and found Rhodes, who appeared to be grossly intoxicated, staggering in the roadway. Rhodes attempted to flee, but fell. Rhodes was placed under arrest for public intoxication and a search incident to arrest revealed a Smith and Wesson .32 caliber handgun in his back right pocket, along with 1.9 grams of crack cocaine. The firearm was loaded with one live round and five spent casings. Rhodes admitted that the firearm belonged to him.
Rhodes is prohibited under federal law from possessing firearms and/or ammunition based upon his prior state convictions, which include convictions for assault of a high and aggravated nature (2 separate convictions), conspiracy to violate SC drug laws, distribution of crack cocaine, distribution of crack cocaine near a school, possession with intent to distribute crack cocaine 2nd offense, possession with intent to distribute crack cocaine near a school, assault and battery (3 separate convictions), malicious injury to real property, receiving/possessing stolen goods, trespassing, false information to police, unlawful carrying of a pistol, unlawful communication/unlawful use of telephone (2 separate counts), resisting arrest, and stalking.
The case was investigated by the York Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.Richard Shane Mabe and Timothy Greer Sentenced for Johnson County Armed CarjackingRead the Press Release
GREENEVILLE, Tenn. – On Sept. 8, 2014, Richard Shane Mabe, 35, of Mountain City, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 240 months in prison. Upon his release from prison, he will be subject to supervision by the U.S. Probation Office for five years. There is no parole in the federal system.
Timothy Greer, 31, of Creston, N.C., was previously sentenced by Judge Greer in August 2014 to serve 188 months in prison. Greer will also be subject to five years of supervision by the U.S. Probation Office upon his release from prison.
Both Mabe and Greer pleaded guilty in June 2013 to carjacking an individual in Johnson County and brandishing a firearm in furtherance of the carjacking. Mabe, who was wanted on an outstanding warrant, and Greer led officers on a high speed chase through Mountain City into Johnson County. During the chase, Mabe fired shots at officers from the moving car. When the car in which Mabe and Greer were traveling began to falter, they pulled into a convenience store and took a customer’s car at gunpoint. Shortly thereafter, officers were able to force the pair off the road and take them into custody.
“These armed and dangerous criminals deserved and received lengthy sentences for their actions. Sentences such as these deter others from committing such violent acts,” said U.S. Attorney Bill Killian.
Law enforcement agencies participating in the joint investigation included the Mountain City Police Department, Johnson County Sheriff’s Department, Tennessee Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Renata Galvan Sentenced to Five Years in Prison for Wire Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
KNOXVILLE, Tenn. – On Sept. 8, 2014, Renata Rochelle Galvan, 52, of Mission, Tex., was sentenced to serve 60 months in prison by the Honorable Pamela L. Reeves, U.S. District Judge for the Eastern District of Tennessee. Judge Reeves further ordered Galvan to pay $1,031,070.09 in restitution to the victim, Telecheck, and imposed a term of supervised release of three years upon her release from prison.
Galvan pleaded guilty in April 2013 to a federal indictment charging her with conspiracy to commit wire fraud and aggravated identity theft. She, her husband, and her sister conspired in a scheme to negotiate counterfeit checks at retailers in Tennessee, Arkansas, North Carolina, South Carolina, Georgia, Virginia, West Virginia, Kentucky, and Texas, resulting in losses in excess of $1 million. The conspirators were able to steal the identities of people who had indicated on social media that they “liked” certain retailers. The trio posed as persons whose identities they stole to negotiate counterfeit checks to purchase electronics and other merchandise, which they re-sold on an Internet auction website, and prepaid credit cards.
The indictment and subsequent conviction of Galvan was the result of an investigation conducted by the U.S. Secret Service. Assistant U.S. Attorney Matthew T. Morris represented the United States.
Raleigh Resident Pleads Guilty to Loan and Insurance FraudRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, TERESA LYN FLETCHER , age 54, of Raleigh, North Carolina pleaded guilty before United States Magistrate Judge Kimberly A. Swank to two counts of bank fraud and one count of mail fraud. At sentencing, FLETCHER faces a statutory maximum of 80 years imprisonment, a $2,250,000 fine, 5 years of supervised release, and $300 in special assessments.
“Teresa Fletcher’s fraudulent conduct in this case was rooted in greed and propelled by deceit. The fact that Fletcher preyed on these companies one after another to fund her lifestyle reflects a disturbing disregard for the kind of fair and honest dealing required of customers seeking loans, insurance, and other valuable financial services. Those who would violate that trust for their own gain, as the defendant did here, will not go unnoticed by federal law enforcement and be prosecuted accordingly,” stated Assistant United States Attorney Adam F. Hulbig.
“This case is a fine example of the extent to which some will take to fraudulently manipulate our financial institutions,” said U.S. Secret Service Resident Agent in Charge Robert Trumbo. “The Secret Service along with our law enforcement counterparts remain vigilant in protecting those financial institutions and pursuing those who wish to take advantage of those institutions.”
According to the investigation, charging documents and statements made in court, FLETCHER engaged in separate schemes to defraud Bank of North Carolina, TD Bank, and Liberty Mutual Insurance over a 10-month span in 2013.
In January 2013, FLETCHER provided false information about her income and assets to Bank of North Carolina in order to obtain a personal loan. Among other things, FLETCHER falsified her credit application and submitted bogus wage records. After Bank of North Carolina approved the loan based on FLETCHER’s fraudulent representations, FLETCHER proceeded to rapidly dissipate the loan proceeds without making a single payment towards the balance. When the loan went into default, FLETCHER filed a false identity theft report with Equifax claiming that the loan account had been opened by someone other than herself.
In February 2013, FLETCHER closed on the purchase of a $1.85 million residence in Raleigh. To finance the purchase, FLETCHER applied to TD Bank for over $1.65 million in loans. Throughout the loan approval and underwriting process, FLETCHER gave false information to TD Bank about her financial health and the nature of the sales transaction. Among other things, FLETCHER completed a loan application in which she falsified her cash assets, provided TD Bank with fake Forms W-2 reflecting grossly inflated wages, and fraudulently represented in the settlement statement (HUD-1) that she had received a “gift of equity” to be applied to the purchase price, when, in fact, it was a concealed side loan. After defaulting on her loan obligations to TD Bank, FLETCHER submitted a false identity theft report to Experian in an effort to prevent the negative item from appearing on her credit report.
From approximately May 2013 to October 2013, FLETCHER repeatedly made false claims against her Liberty Mutual Insurance homeowner’s policy for reimbursement of expenses she allegedly incurred to repair the residence after a spring storm hit the area. In furtherance of her scheme, FLETCHER routinely doctored records from contractors and vendors and provided them to Liberty Mutual to support her claims.
Investigation of this case was conducted by the United States Secret Service. The prosecution is being handled by Assistant United States Attorney Adam F. Hulbig.
Pittsburgh Man with Criminal History Charged with Heroin Trafficking, Firearms CrimesRead the Press Release
PITTSBURGH – Gerard Porter has been indicted by a federal grand jury in Pittsburgh for heroin trafficking and firearms crimes, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on August 12, names Porter, 38, as the sole defendant.
According to the indictment, on Oct. 11, 2013, in the Western District of Pennsylvania, Porter possessed heroin with intent to distribute it, he possessed a firearm in furtherance of a drug trafficking crime, and he possessed three firearms after having been convicted of nine felony crimes, including three drug trafficking crimes and two aggravated assaults, in eight separate prior cases.
The law provides for a maximum total sentence of at least 15 years and up to life in prison, a fine of up to $2,500,000, 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 of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Allegheny County Sheriff’s Office, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives 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.
Owner of Home Heath Care Company Sentenced to 75 Monthsin Prison for $6.5 Million Medicare Fraud SchemeRead the Press Release
The owner and operator of a Miami home health care company was sentenced to 75 months in prison today for her participation in a $6.5 million Medicare fraud scheme involving the now defunct home health care company, Nestor’s Health Services Inc. (Nestor Home Health).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, made the announcement. U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida imposed the sentence.
Cruz Sonia Collado,64, of Homestead, Florida, was an owner and operator of Nestor Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. On June 23, 2014, Collado pleaded guilty to one count of conspiracy to offer and pay health care kickbacks and to defraud the United States, and one count of offering and paying health care kickbacks. In addition to her prison term, Collado was sentenced to serve three years of supervised release and ordered to pay $6,536,657 in restitution.
According to court documents, Collado paid kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Nestor Home Health for home health care and therapy services that were medically unnecessary and, in many instances, not provided. Collado then fraudulently billed the Medicare program for home health care services on behalf of the recruited patients.
From March 2009 through at least January 2014, Nestor Home Health submitted more than $6.5 million in false claims for home health services. Medicare paid Nestor Home Health more than $6.1 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.govOwner of Home Health Care Company Sentenced to 75 Months in Prison for $6.5 Million Medicare Fraud SchemeRead the Press Release
The owner and operator of a Miami home health care company was sentenced to 75 months in prison today for her participation in a $6.5 million Medicare fraud scheme involving the now defunct home health care company, Nestor’s Health Services Inc. (Nestor Home Health).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, made the announcement. U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida imposed the sentence.
Cruz Sonia Collado, 64, of Homestead, Florida, was an owner and operator of Nestor Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. On June 23, 2014, Collado pleaded guilty to one count of conspiracy to offer and pay health care kickbacks and to defraud the United States, and one count of offering and paying health care kickbacks. In addition to her prison term, Collado was sentenced to serve three years of supervised release and ordered to pay $6,536,657 in restitution.
According to court documents, Collado paid kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Nestor Home Health for home health care and therapy services that were medically unnecessary and, in many instances, not provided. Collado then fraudulently billed the Medicare program for home health care services on behalf of the recruited patients.
From March 2009 through at least January 2014, Nestor Home Health submitted more than $6.5 million in false claims for home health services. Medicare paid Nestor Home Health more than $6.1 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Omaha Man Sentenced to more than 9 Years in Prison for Possessing Methamphetamine with the Intent to DistributeRead the Press Release
United States Attorney Deborah R. Gilg announced that Gregory Dreher of Omaha, Nebraska, was sentenced on September 8, 2014, to 114 months in prison by United States District Judge Laurie Smith Camp. Dreher had previously pled guilty for his involvement in distributing methamphetamine after a December 14, 2013, Omaha Police traffic stop revealed Dreher in possession of approximately 38 grams of methamphetamine and numerous small plastic baggies used to distribute narcotics. Dreher’s sentence was increased 30 months as he was serving a Term of Supervised Release from a previous drug conviction at the time of the traffic stop. After serving his sentence, Dreher will be required to serve a Term of Supervised Release of at least 4 years.
This case was the result of an investigation by the Omaha Police Department.
Nixa Man Pleads Guilty to Child PornRead the Press Release
Project Safe ChildhoodSPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Michael Wunderlee, 41, of Nixa, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Nov. 6, 2013, federal indictment.
By pleading guilty today, Wunderlee admitted that he received and distributed child pornography over the Internet between May 13, 2010, and Feb. 25, 2012.
Federal agents from the National Park Service and the FBI executed a search warrant at Wunderlee’s residence as part of an investigation into another person’s use of a stolen government credit card number of a National Park Service employee. Wunderlee’s computer was seized and transported for forensic examination, which found approximately 139 videos and approximately 23 images of child pornography, including pre-pubescent victims.
Wunderlee admitted that he used file-sharing software to download the images and videos. The software automatically saved the downloaded images and videos to a share folder on his computer and made them available to be downloaded by others using the program.
Wunderlee was arrested on Sept. 30, 2013, and released on bond on Nov. 22, 2013, which included home detention and location monitoring. However, on or about Feb. 28, 2014, in order to avoid prosecution, Wunderlee absconded after cashing out his retirement account at Cox Hospital and leaving a note indicating he intended to commit suicide. On Aug. 6, 2014, FBI agents arrested Wunderlee at a home in Spotsylvania, Va.
Under federal statutes, Wunderlee is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI and the National Park Service.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."New York Property Owner and Manager Sentenced to 21 Months in Federal Prison for Conspiring to Violate the Clean Air ActRead the Press Release
John Francis Mills, 64, the owner of more than a dozen properties in Malone, New York, and Terrance Allen, 57, the maintenance manager of Mills’ properties, were sentenced today by U.S. District Judge Thomas J. McAvoy to serve 21 months each in prison for conspiring to violate the Clean Air Act standards for the safe removal of asbestos during renovations of three of Mills’ properties, for releasing asbestos into the environment and failing to notify the authorities, all in violation of the Clean Air Act’s asbestos work practice standards, and the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).
Mills’ and Allen’s prison sentences will be followed by two years of supervised release. In addition, Mills must also pay a $25,000 fine and a $300 crime victim special assessment fee.
On Jan. 21, 2014, Mills and Allen, both of Malone, New York, pleaded guilty to one count of conspiracy to violate CERCLA. Mills also pleaded guilty to two counts of knowingly violating CERCLA for failing to immediately report the release of more than a pound of asbestos from properties owned by Mills. In addition to the conspiracy, Allen pleaded guilty to one count of knowingly violating CERCLA. Mills owned the buildings from which more than 260 linear feet of pipe wrap containing asbestos had been removed by one of Mills’ employees. Mills and Allen directed that employee to remove the asbestos pipe wrap from 458 East Main Street, 144 Elm Street, and 100 Elm Street, all properties owned by Mills, and managed by Allen, who oversaw the asbestos removal work.
As part of the plea, Mills and Allen admitted that that they knowingly failed to report to the National Response Center the release of asbestos, in the form of thermal system insulation, or “pipe wrap,” that had been removed from the basement of buildings owned and operated by John Mills, as soon as they knew of the release. They also admitted to illegally removing and disposing of more than 260 linear feet of pipe wrap containing asbestos. Mills and Allen directed an employee to remove the pipe wrap containing asbestos without warning him or giving him adequate personal protective equipment. They transported and caused others to transport that pipe wrap, which was in open bags, in the open bed of a pickup truck. They further admitted that they conspired together to violate CERCLA. The asbestos pipe wrap was deposited by the defendants in a UHaul-style box truck owned by Mills and a shed maintained by the Malone Department of Public Works in an effort to conceal the material from authorities.
The Clean Air Act requires that owners of public buildings that contain asbestos follow federally established work practice standards to ensure the safe removal of the asbestos. The required standards include providing notice to the U.S. Environmental Protection Agency (EPA) before starting asbestos removal, adequately wetting the asbestos during the removal and before disposal, and properly disposing of the asbestos at an EPA-approved disposal site.
The investigation was conducted by the Environmental Protection Agency Criminal Investigation Division and the New York State Department of Labor Asbestos Control Bureau with assistance from the New York State Department of Environmental Conservation, the Malone Police Department and the Malone Department of Public Works. The case was prosecuted by Trial Attorneys Lana N. Pettus and Gary N. Donner, paralegal Puja Moozhikkattu and litigation support specialist Elga Ozols of the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division.
Monmouth County, N.J. Doctor Admits Structuring and Tax ChargesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, doctor today admitted he structured transactions in order to avoid reporting requirements and filed false tax returns, U.S. Attorney Paul J. Fishman announced.
Dr. Paul DiLorenzo, 60, of Ocean Township, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to Counts Two and 12 of a second superseding indictment charging him with structuring financial transactions and helping to file false tax returns.
According to documents filed in this case and statements made in court:
Between 2009 and June 27, 2012, DiLorenzo received more than $2 million in cash payments from his patients. On at least 35 occasions, the office received payments exceeding $10,000 in a single day. Between May 28, 2009, and Nov. 2, 2011, DiLorenzo deposited approximately $1 million in cash into banks accounts in his name and in the name of his business. The deposits included 150 separate transactions, all but one of which were for amounts of less than $10,000. Transactions of $10,000 or more trigger Currency Transaction Report requirements. DiLorenzo admitted he made the deposits for less than $10,000 to evade the reporting requirement.
On March 29, 2011, DiLorenzo helped his accountant file a U.S. Individual Income Tax Return, Form 1040, for the 2010 tax year, reporting gross receipts of $444,331, knowing his gross receipts were approximately $1 million. In May 2012, DiLorenzo helped his accountant prepare a tax return for the 2011 tax year in which he reported gross receipts of $537, 236. In fact, his gross receipts were in excess of $800,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents of IRS-Criminal Investigations, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and special agents and task force officers from the Tactical Diversion Squad of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, with the investigation leading to today’s guilty plea.
The structuring charge carries a maximum potential penalty of 10 years in prison and a fine of $500,000; the tax charge carries a maximum potential penalty of three years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 18, 2014.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office in Trenton and Yael Epstein, Trial Attorney with the U.S. Department of Justice, Tax Division.
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Defense counsel: Robert J. DeGroot Esq., Newark
DiLorenzo, Paul SSuperseding Indictment
Justice Officials Meet with Key Stakeholders on Launch of Elder Justice WebsiteRead the Press Release
Earlier today, Associate Attorney General Tony West, Assistant Attorney General Stuart F. Delery for the Civil Division and members of the Department’s Elder Justice Initiative met with stakeholders in the field of elder abuse and financial exploitation to launch the Elder Justice website in an effort to further prevent and combat elder abuse and financial exploitation.
Associate Attorney General West and Assistant Attorney General Delery delivered remarks at the outreach event to federal, state and local law enforcement, as well as to other partners who combat elder abuse. The remarks focused on the significant contributions that the Elder Justice website can make to the field and on the Department’s commitment to protecting seniors from abuse and exploitation. The Elder Justice website will serve as a resource for elder abuse prosecutors, researchers and practitioners, and most importantly, for victims of elder abuse and their families. This website will also serve as a forum for law enforcement and elder justice policy communities to share information and enhance public awareness about elder abuse.
“The launch of the Elder Justice website today marks another milestone in reaching our shared goal of keeping older Americans safe from abuse and neglect,” said Associate Attorney General West. “The more we embrace our elders with respect and care, the stronger our society will be. This tool helps move us closer to that goal.”
Protecting older Americans is one of the Department's top priorities, as evidence shows that nearly one in 10 people over the age of 60 suffer abuse and neglect. Elder abuse includes physical, sexual and emotional abuse, neglect and financial exploitation. Elder abuse depletes the resources of individuals, families, businesses and public programs, including Medicare and Medicaid, by billions of dollars each year, which in turn places enormous burdens on our health care, financial and judicial systems.
Older Americans are also targeted by consumer scams, health care fraud and financial exploitation, and protecting this group from financial exploitation is also a priority of the department. It is estimated that older adults in the United States lose more than $2.9 billion annually from financial exploitation. Financial loss may result in loss of independence, decreased health and psychological distress, all of which culminate in a diminished quality of life for older adults. Over the years, the department has successfully prosecuted a number of criminals who targeted the elderly through reverse mortgage fraud scams and lottery scams. In addition, the department's healthcare fraud enforcement and prevention and consumer protection efforts protect older Americans from financial exploitation.
“The website provides resources and a means for improved communication among prosecutors, supports victims and families, and establishes a mechanism for collaboration for researchers and practitioners,” said Assistant Attorney General Delery. “ While there are many other victim support websites available, we believed that the department could add significant value in this domain by consolidating information nationwide and making it more user-friendly. The Civil Division will continue to strengthen its efforts to protect the elderly.”
Partners in attendance included the Federal Trade Commission; the American Bar Association; the U.S. Department of Health and Human Services-Office of the Inspector General; the National Association for Medicaid Fraud Control Units; the Office of the U.S. Attorney General for the District of Columbia; the Consumer Financial Protection Bureau; and the Social Security Administration.