Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
8 September 2014
Justice Officials Meet with Key Stakeholders on Launch of Elder Justice WebsiteRead the Press Release
WASHINGTON - Earlier today, Associate Attorney General Tony West, Assistant Attorney General Stuart 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 on the subject matter.
“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. Healthcare fraud prevention and consumer protection efforts are examples of ways the department protects 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.
Justice Officials Meet with Key Stakeholders on Launch of Elder Justice WebsiteRead the Press Release
WASHINGTON - Earlier today, Associate Attorney General Tony West, Assistant Attorney General Stuart 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 on the subject matter.
“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. Healthcare fraud prevention and consumer protection efforts are examples of ways the department protects 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.Justice Department Settles Religious Discrimination Lawsuit Against School District of PhiladelphiaRead the Press Release
The Department of Justice announced today that it has entered into a settlement agreement with the School District of Philadelphia that resolves a religious accommodations lawsuit filed in March 2014. In its lawsuit, the United States alleged that the school district violated Title VII of the Civil Rights Act of 1964 (Title VII) by failing to accommodate the religious beliefs, observances and/or practices of Siddiq Abu-Bakr, a school police officer who is Muslim, and similarly-situated employees who maintain a beard longer than one-quarter inch for religious purposes.
The department’s complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, alleged that in October 2010 the school district implemented a new grooming policy that strictly prohibits school police officers from having a beard longer than one-quarter inch. Abu-Bakr, a 27-year employee of the school district, maintains a beard longer than one-quarter inch in adherence to his Islamic faith. Consistent with his religious beliefs, Abu-Bakr has maintained a beard longer than one-quarter inch the entire time that he has worked for the school district, with no indication that the beard diminished his performance.
According to the United States’ complaint, when Abu-Bakr requested an accommodation to the grooming policy, the school district disciplined him for violating the policy and denied his religious accommodation request. The complaint also alleged that the school district maintains a discriminatory policy under which it routinely denies all accommodation requests to the grooming policy involving beard length. Abu-Bakr, who is individually represented by the Stanford Law School Religious Liberty Clinic, filed a complaint in intervention, asserting claims similar to those of the United States. Abu-Bakr dismissed his complaint in intervention after he and the school district entered a private settlement agreement.
Under the terms of the United States’ settlement agreement, the school district has agreed to develop and distribute a revised school police officer proper attire & appearance policy, which will include a procedure by which school police officers can request a religious accommodation. The school district agreed to notify current and prospective school police officers that their religious accommodation requests will be considered on an individualized basis and that the school district will engage in an interactive process with the school police officers before denying any religious accommodation requests under the revised school police officer proper attire & appearance policy. In addition, the school district has agreed to provide mandatory training on religious accommodation to all supervisors, managers, human resources officials and other individuals who may receive inquiries from school police officers regarding the revised school police officer proper attire & appearance policy. The school district also will pay compensatory damages to two similarly-situated employees and will expunge all discipline related to the policy from their personnel files.
“We are pleased that the school district of Philadelphia has agreed to develop a revised policy that will allow school police officers to request religious accommodations without posing an undue hardship on the school district,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Through our partnership with the EEOC, the Civil Rights Division continues the commitment of the United States Department of Justice to vigorous enforcement of the nation’s employment discrimination laws.”
“This settlement agreement demonstrates once again that the close working relationship between the EEOC and the Department of Justice allows us to use public resources most efficiently to enforce our civil rights laws,” said U.S. Equal Employment Opportunity Commission (EEOC) District Director Spencer H. Lewis Jr. “This settlement agreement contains significant equitable policy changes that will enable school district police officers to request and receive religious accommodations absent an undue hardship.”
This case was litigated by Senior Trial Attorney Raheemah Abdulaleem and Trial Attorney Catherine Sellers of the Civil Rights Division’s Employment Litigation Section.
More information about Title VII and other federal employment laws is available at this website . The continued enforcement of Title VII is a priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Department of Justice is available on its website at www.usdoj.gov/crt.
Related Materials:
US v. School District of Philadelphia Settlement Agreement
Justice Department Files Fair Housing Lawsuit Against Kent State University for Discrimination Against Students with Disabilities in University HousingRead the Press Release
The Justice Department today filed a lawsuit against the Kent State University, the Kent State University Board of Trustees and university officials for violating the Fair Housing Act by discriminating against students with disabilities in student housing.
The lawsuit, filed in the U.S. District Court for the Northern District of Ohio, charges that Kent State and its employees engaged in a pattern or practice of violating the Fair Housing Act by refusing to consider reasonable accommodation requests by students with psychological or emotional disabilities seeking to live with assistance animals in university housing. The suit also charges that Kent State treats students with psychological and emotional disabilities who need to live with assistance animals less favorably than similarly situated students with other types of disabilities such as mobility disabilities or vision impairments . This lawsuit arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD) by a student enrolled at Kent State who sought to live with a dog following a Kent State psychologist’s recommendation that living with a dog would help alleviate symptoms of the student’s disability.
“The Fair Housing Act requires housing providers, including universities operating student housing, to grant reasonable accommodations to people with disabilities to ensure equal housing opportunities,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Housing providers may not discriminate against individuals based on the type of disability they have. The Justice Department is committed to enforcing fair housing laws that protect the rights of all people, including individuals with psychological or emotional disabilities, to obtain reasonable accommodations when they are needed.”
“Many people with disabilities rely on therapy animals to enhance their quality of life,” said HUD Assistant Secretary Gustavo Velasquez for Fair Housing and Equal Opportunity. “HUD and the Department of Justice will continue to work together to take action whenever the nation’s fair housing laws are violated.”
The lawsuit seeks a court order prohibiting future discrimination by the defendants, monetary damages for those harmed by the defendants’ actions and a civil penalty. Any individuals who have information relevant to this case are urged to contact the Housing and Civil Enforcement Section of the Civil Rights Division at 1-800-896-7743, extension 992.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crtg . Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] , or contact HUD at 1-800-669-9777 or through its website, www.hud.gov
The complaint is an allegation of unlawful conduct. The allegation must still be proven in federal court.
Related Materials:
U.S. v. Kent State
Jury Convicts Louisiana Man in Orange County Drug ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 38-year-old Vinton, Louisiana man has been convicted of drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jeremy James Wimberly was found guilty by a jury of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, use of a firearm during a drug trafficking crime and being a felon in possession of a firearm. The jury deliberated for 30 minutes before returning with a guilty verdict on all four counts. The verdict was returned late Friday, Sep. 5, 2014 following a three-day trial before U.S. District Judge Ron Clark.
According to information presented in court, in September 2013 and October 2013, Wimberly made two controlled deliveries of a large amount of methamphetamine to an individual in Orange County, Texas. After the drug transaction on Oct. 23, 2013, law enforcement officers attempted to make a traffic stop on Wimberly. However, he led them on a 23-mile high speed chase at speeds reaching approximately 135 mph in Orange County before running out of gas in south Newton County and fleeing on foot. Wimberly was found to have discarded a gun and a large quantity of methamphetamine during the chase. Further investigation revealed he was a convicted felon and prohibited from owning or possessing a firearm or ammunition. Wimberly was indicted by a federal grand jury on Nov. 6, 2013 and charged with federal drug and gun violations.
Wimberly faces a mandatory sentence of life in federal prison. A sentencing date has not been set.
The case was investigated by the Orange County Sheriff’s Office, Orange Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Drug Enforcement Administration, and the Beaumont Police Department. This case is being prosecuted by Assistant U.S. Attorneys Michelle Englade and Baylor Wortham.
Interior Man Found Guilty of Assault on A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Justin Janis, age 21, of Interior, South Dakota, was found guilty of Assault on a Federal Officer as a result of a federal jury trial in Rapid City, South Dakota. The verdict was returned on August 28, 2014.
The charge carries a maximum penalty of 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
On November 27, 2013, Oglala Sioux Tribe law enforcement was called to a residence on the Pine Ridge Indian Reservation where Janis and other adults were intoxicated. Oglala Sioux Tribe Department of Public Safety Corporal Ann Mousseau responded to the residence, where a woman met Cpl. Mousseau near the front door and unlocked it for her. Janis blocked Cpl. Mousseau from entering by pushing on the door, calling for another male to help him. Once the door was re-opened, Janis came toward Cpl. Mousseau with his hands up. There was a struggle, during which Janis struck Cpl. Mousseau on the right side of her throat, but she was able to continue her attempts to subdue him. Cpl. Mousseau went to the hospital that evening for treatment.
Cpl. Mousseau is a federal law enforcement officer employed by the Oglala Sioux Tribe Department of Public Safety.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Kathryn N. Rich and Eric Kelderman prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for December 17, 2014. The defendant was remanded to the custody of the U.S. Marshals Service.
Husband Sentenced in $3.7 Million Advance Fee SchemeRead the Press Release
Developed Relationships with Religious Groups as Part of the Scam
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Shannon Johnson, age 51, of Laytonsville, Maryland, today to six years in prison followed by three years of supervised release in connection with a fraudulent advance fee scheme and tax evasion. Chief Judge Chasanow also entered an order that Johnson forfeit $3.7 million, and as a special condition of his supervised release, cooperate with the IRS in determining all taxes owed for tax years 2002 through 2009, and to pay the IRS all additional taxes, interest and penalties.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Assistant Attorney General Ronald Cimino of the U.S. Department of Justice Tax Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Johnson admitted that he ran a fraudulent advance fee scheme from 2006 to 2009. Johnson held himself out as a wealthy international investment banker who could provide millions of dollars and euros in financing to businesses and individuals. In return for substantial advance banking fees, the Johnson and his wife Yvette promised to provide investors with money which they claimed they held in an overseas bank account. Shannon Johnson provided these businesses and investors with false documents purporting to be from the overseas bank to authenticate the funds, and developed relationships with pastors, ministers, and religious-based organizations to sell themselves as philanthropists on a humanitarian mission. Shannon Johnson received payments and gifts from pastors and ministers who believed substantial donations would be made to their churches. Businesses and individuals wired and mailed the advance fees to multiple bank accounts controlled by the Johnsons in different states. Yvette Johnson opened bank accounts and conducted financial transactions using proceeds obtained from the Johnsons’ business activities.
According to his plea agreement, despite receiving approximately $3.7 million in advance fees from individuals and businesses, Shannon Johnson never provided the promised financing. Instead, the Johnsons used the money to support their lifestyle, which the indictment alleges included the purchase of Bentley, Mercedes Benz and BMW automobiles, the leasing of a $3.5 million residence in California for $18,000 a month, travel on private jets and the funding of the mortgage on their Laytonsville residence. Johnson admitted that he obtained $3.7 million by victimizing at least 11 individuals and businesses.
The Johnsons also evaded taxes on the millions of dollars in income earned from the advance fee scheme. The Johnsons admitted that they filed individual tax returns for the tax years 1998 through 2001 using false W-2s to fraudulently generate a total of $66,097 in refund claims, evaded the payment of their 2002 through 2006 corporate and individual taxes totaling $98,220, and evaded the assessment of their 2007 through 2009 taxes. The Johnsons attempted to conceal their income and assets from the IRS by selling assets in their own names, titling assets in the names of nominees, using multiple bank accounts in three states to disperse and conceal income, using nominees and fraudulent taxpayer identification numbers to open and maintain bank accounts, and by using multiple business names to conduct business.Shannon Johnson’s bail was revoked in September, 2013, after the Court found that there was probable cause to believe that he attempted to commit another fraud while on pre-trial release for the pending charges in this case.
Yvette Johnson, age 52, of Corona, California, previously pleaded guilty to her participation in the fraud scheme and is scheduled to be sentenced on September 29, 2014 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the IRS Criminal Investigation and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant Chief John N. Kane of the U.S. Justice Department, Tax Division and Assistant United States Attorney Thomas Sullivan, who prosecuted the case.
Hudson County, N.J., Financial Consultant Admits Tax EvasionRead the Press Release
NEWARK, N.J. - A Hoboken, New Jersey, financial consultant today admitted evading payment of taxes on approximately $273,000 in commission payments received from an insurance broker, U.S. Attorney Paul J. Fishman announced.
John Twomey Booth, 66, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count Three of an information charging him with willfully attempting to evade the payment of federal personal income tax for calendar year 2008.
According to documents filed in this case and statements made in court:
Booth was a financial consultant who operated in Hoboken and elsewhere. Beginning in March 2006 and continuing through December 2009, Booth accepted hundreds of thousands of dollars in payments from an insurance broker based in Towson, Maryland, whose companies provided insurance brokerage services for New Jersey municipal entities—including the Weehawken Board of Education and the Union City Board of Education. Booth directed the insurance broker and others to make payments to four entities controlled by Booth.
Booth used the funds to pay for his personal expenses and withdraw cash. Despite receiving approximately $719,000 in income during the calendar years 2006, 2007, 2008, and 2009, including approximately $273,000 from the insurance broker, Booth failed to report any of this income to the IRS, causing a loss to the government of $119,731.
The tax evasion count to which Booth pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 15, 2014.
U.S. Attorney Fishman credited special agents of IRS—Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, and the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-310
Defense counsel: Richard Lawler Esq., New York
Booth, John Twomey Information
Fresno Man Sentenced for Marijuana Cultivation That Diverted Water from the San Joaquin RiverRead the Press Release
FRESNO, Calif. — United States District Judge Anthony W. Ishii sentenced Sam Kounhavong, aka Inpong Kounhavong, 52, of Fresno, today to two years in prison, to be followed by three years of supervised release, for his involvement in a large-scale marijuana cultivation operation in Stanislaus County that was irrigated by water diverted from the San Joaquin River, U.S. Attorney Benjamin B. Wagner announced. Judge Ishii also ordered Kounhavong to register as a drug offender.
In March 2014, Kounhavong pleaded guilty to conspiring to cultivate 907 marijuana plants grown in Newman. Water from the San Joaquin River had been diverted to irrigate the marijuana plants. At the grow site, agents found a firearm, respirators, motion detectors, chemicals, fertilizers, makeshift tents on plywood platforms, some elevated, a guard dog, and a sign that said: “‘Hey You’ ‘Yeah You’ Keep Out.”
The case was the product of an investigation by the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto. Assistant United States Attorney Karen A. Escobar prosecuted the case.
Four Illinois Law Enforcement Agencies share $1.5 Million in Forfeited Assets from 2009 Marijuana Distribution ConspiracyRead the Press Release
Rock Island, Ill. – Four law enforcement agencies in the Central District of Illinois’ Rock Island Division are among 33 agencies in New York, California, and Illinois to share $8,923,708 in forfeited assets as a result of a marijuana distribution conspiracy case U.S. v. Canori et al. that began with a traffic stop by Illinois State Police in June 2009.
Four Illinois agencies will share $1,447,590.16: Geneseo Police Department $212,036.82; Henry County State’s Attorney’s Office $241,506.19; Illinois State Police $752,540.96; and, Quad City Metropolitan Enforcement Group $241,506.19.The U.S. Attorney’s Office for the Northern District of New York held a news conference this afternoon to make the announcement. The news release, attached, provides a comprehensive overview of the prosecution of the five individuals in the Northern District of New York, U.S. v. Canori et al., which resulted from a traffic stop by Illinois State Police on westbound Interstate 80 in Henry County, Ill., on June 13, 2009.
According to federal court documents, while the trooper was conducting the traffic stop, an Illinois State Police drug-detecting K-9 made a positive alert on the trailer which was searched, and approximately 334 pounds of marijuana was seized. The drugs were intended to be transported from California to upstate New York for distribution. Through a controlled delivery executed with the Albany DEA office, the delivery was completed, and five individuals were charged and convicted for drug offenses.
As a result of this prosecution, $12,515,738 represented the proceeds of assets seized; $8,923,708.19 was distributed to law enforcement agencies and the remaining $3,592,029.81 was provided to the Department of Justice Asset Forfeiture Program.
The driver of the truck and trailer was charged in the Central District of Illinois. The defendant entered into a pre-trial diversion agreement with the government. U.S. Probation recommended that the charge be dismissed upon successful completion when the diversion period expired in January 2012. On Feb. 3, 2012, U.S. District Judge Joe Billy McDade granted the government’s motion to dismiss the charge.
Fort Yates Man Sentenced for Abusive Sexual Contact with a MinorRead the Press Release
BISMARCK - U. S. attorney Timothy Q. Purdon announced that on Sept. 8, 2014, George Thunderhawk, 63, Fort Yates, N.D., was sentenced before U. S. District Judge Daniel L. Hovland to serve 41 months in prison for abusive sexual contact.
Thunderhawk was charged by Indictment for having abusive sexual contact with a minor under the age of twelve, stemming from an incident that occurred sometime between January 2008 and December 2008. Thunderhawk was found guilty of the charged offense after a two-day trial before a jury of twelve persons. Judge Hovland also sentenced Thunderhawk to five years supervised release and ordered that he pay a $100 special assessment to the Crime Victims Fund. Restitution in this case has been left open until Nov. 17, 2014.
The case was investigated by Bureau of Indian Affairs-Fort Yates.
Assistant U. S. Attorney Gary Delorme prosecuted the case.
Former Maryland Resident Sentenced for His Role in $3.7 Million Advance Fee Scheme and Tax EvasionRead the Press Release
A Corona, California, man was sentenced today to serve six years in prison to be followed by three years of supervised release in connection with a fraudulent advance fee scheme and tax evasion.
Shannon Johnson, 51, formerly of Laytonsville, Maryland, was sentenced by Chief U.S. District Judge Deborah K. Chasanow, who also entered an order that Johnson forfeit $3.7 million, and as a special condition of his supervised release, cooperate with the Internal Revenue Service (IRS) in determining all taxes owed for tax years 2002 through 2009, and to pay the IRS all additional taxes, interest and penalties.
The sentence was announced by Deputy Assistant Attorney General Ronald Cimino of the U.S. Department of Justice Tax Division; U.S. Attorney Rod J. Rosenstein for the District of Maryland;; Special Agent in Charge Thomas J. Kelly of the IRS - Criminal Investigation, Washington, D.C., Field Office; and Special Agent in Charge Stephen E. Vogt of the FBI.
Johnson admitted that he ran a fraudulent advance fee scheme from 2006 to 2009, wherein Johnson presented himself as a wealthy international investment banker who could provide millions of dollars and euros in financing to businesses and individuals. In return for substantial advance banking fees, Johnson and his wife, Yvette, promised to provide investors with money which they claimed they held in an overseas bank account. Shannon Johnson provided these businesses and investors with false documents purporting to be from the overseas bank to authenticate the funds. The Johnsons developed relationships with pastors, ministers and religious-based organizations to sell themselves as philanthropists on a humanitarian mission. Shannon Johnson received payments and gifts from pastors and ministers who believed substantial donations would be made to their churches. Businesses and individuals wired and mailed the advance fees to multiple bank accounts controlled by the Johnsons in different states. Yvette Johnson opened bank accounts and conducted financial transactions using proceeds obtained from the Johnsons’ business activities.
According to his plea agreement, despite receiving approximately $3.7 million in advance fees from individuals and businesses, Shannon Johnson never provided the promised financing. Instead, the Johnsons used the money to support their lifestyle, which the indictment alleges included the purchase of Bentley, Mercedes Benz and BMW automobiles, the leasing of a $3.5 million residence in California for $18,000 a month, travel on private jets and the funding of the mortgage on their Laytonsville residence. Johnson admitted that he obtained $3.7 million by victimizing at least 11 individuals and businesses.
The Johnsons also evaded taxes on millions of dollars in income they earned from the advance fee scheme. The Johnsons admitted that they filed individual tax returns for tax years 1998 through 2001 using false Forms W-2 to fraudulently generate a total of $66,097 in refund claims; evaded the payment of their 2002 through 2006 corporate and individual taxes totaling $98,220; and evaded the assessment of their 2007 through 2009 taxes. The Johnsons attempted to conceal their income and assets from the IRS by selling assets in their own names, titling assets in the names of nominees, using multiple bank accounts across three states to disperse and conceal income, using nominees and fraudulent taxpayer identification numbers to open and maintain bank accounts and using multiple business names to conduct business.
Shannon Johnson’s bail was revoked in September 2013 after the court found that there was probable cause to believe that he attempted to commit another fraud while on pre-trial release for the pending charges in this case.
Yvette Johnson, 52, of Corona, California, previously pleaded guilty to her participation in the fraud scheme and is scheduled to be sentenced on Sept. 29.
This case was investigated by IRS-Criminal Investigation and the FBI, and was prosecuted by Assistant Chief John N. Kane of the Tax Division and Assistant U.S. Attorney Thomas Sullivan for the District of Maryland.
- Former Houston Banker Charged with Bank Fraud
Former Defense Department Employee Pleads Guilty to Carrying Out $2.5 Million Health Care Fraud-Veteran Admits Submitting Fraudulent Claims for Medical Expenses-Read the Press Release
WASHINGTON – Jonathan M. Hargett, a former civilian employee of the Department of Defense, pled guilty today to a charge of health care fraud stemming from a scheme in which he collected over $2.2 million after submitting fraudulent claims for federal health care benefits.
The guilty plea was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); Patrick E. McFarland, Inspector General for the Office of Personnel Management (OPM); Gregg Hirstein, Special Agent-in-Charge of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Central Field Office of Investigations, and Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.
Hargett, 41, formerly of Germany, pled guilty in the U.S. District Court for the District of Columbia. He was indicted in October 2013, extradited from Germany, and returned to the United States in July 2014. The Honorable Senior Judge Paul L. Friedman scheduled sentencing for Nov. 18, 2014. The charge carries a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, Hargett faces a likely prison term of 46 to 57 months and a fine between $10,000 and $100,000. The plea agreement calls for Hargett to pay over $2.2 million in restitution to the United States. He also is subject to a forfeiture money judgment in the same amount. The government has seized more than $704,000 from Hargett’s bank accounts, and German authorities have seized or frozen over $500,000.
According to a statement of offense submitted to the Court today, and signed by the government and the defendant, Hargett worked from 1996 through 2012 in various positions as a civilian employee for the Department of Defense in Germany. From January 2011 through May 2012, he was an intelligence analyst stationed in Heidelberg. Previously, he had served in the U.S. Army from 1992 to 1996.
As a federal employee stationed overseas, Hargett was enrolled since 2002 in the Foreign Service Benefit Plan (FSBP) a health care benefit program. Because of his service in the Army, he also was eligible for health care coverage from the U.S. Department of Veterans Affairs. For veterans working or residing abroad, the VA provides this coverage through its Foreign Medical Program (VA-FMP).
From January 2007 through April 2012, according to the statement of offense, Hargett carried out a scheme to submit fraudulent claims and invoices to the FSBP and the VA-FMP. The claims falsely represented that he bought prescription medications and other pharmaceutical items from a pharmacy in Germany. They also falsely represented that he had received and paid for various health care items and services from a doctor in Germany. Hargett also created and submitted forged invoices and other fraudulent paperwork.
All told, Hargett admitted submitting more than $2.5 million in false claims to the two programs. He was paid more than $2.2 million, including about $943,519 from the FSBP and $1,261,512 from the VA-FMP.
This case was investigated by the Defense Criminal Investigative Service, the Office of the Inspector General for the Office of Personnel Management, the Office of the Inspector General for the Department of Veterans Affairs, and the U.S. Army Criminal Investigation Command. Assistance was provided by the Office of International Affairs in the Justice Department’s Criminal Division; the Department of Defense; former Assistant U.S. Attorney Courtney G. Saleski; Paralegal Specialist Donna Galindo, and former Paralegal Specialist Nicole Wattelet.
The case is being prosecuted by Assistant U.S. Attorneys Ted Radway and Peter Lallas, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Assistant U.S. Attorney Diane Lucas, of the office’s Asset Forfeiture and Money Laundering Section.
14-196Former Belfair Resident Sentenced to 23 Years in Prison for Manufacturing, Distributing and Possessing Pictures and Videos of Child Rape and MolestationRead the Press Release
A former Belfair, Washington resident who once served as the president of an elementary school PTA was sentenced today in U.S. District Court in Tacoma to 23 years in prison and lifetime of supervised release for four child pornography offenses, announced U.S. Attorney Jenny A. Durkan. DAVID MICHAEL NAVARRO, 38, was arrested in August 2013, after investigators traced a video posted on the internet to NAVARRO. The video showed the rape of an 8-year-old child. NAVARRO pleaded guilty in April 2014 to two counts of production of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. At sentencing U.S. District Judge Benjamin H. Settle said, “it is almost impossible to conjure up any offense more serious than what you've done. Words don't exist in the English language to describe this. Your sentence pales in comparison to the lifetime of nightmares and psychological harm your victims will suffer.”
“This defendant is a dangerous sexual predator,” said U.S. Attorney Jenny A. Durkan. “He preyed on children in a horrific fashion, even recording the sexual assault of a child in the hallway of an elementary school after a PTA event. We are safer because of this much deserved prison sentence.”
According to the facts in the plea agreement, between November of 2011 and May of 2013, NAVARRO produced multiple videos of himself raping and molesting a young child. Some of the videos seized from the defendant also showed a second young victim, and one video depicted NAVARRO engaged in sexually explicit conduct while seated next to an unidentified child on an airplane. Law enforcement analysis revealed more than 700 images of child pornography and 157 videos of child pornography on NAVARRO’s electronic devices including cameras, computers, thumb drives, and smartphones. NAVARRO admits that he shared much of the child pornography he produced over the Internet, trading for other images of child pornography.
Investigators also found videos showing NAVARRO masturbating in public and taking surreptitious photos aimed at women’s underwear in various public settings such as school libraries or at a car repair shop. The people victimized in the photos were unaware NAVARRO was engaged in lewd conduct.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Marci Ellsworth.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Air Force Employee Sentenced to Prison for Retaining Stolen Government Property to Sell to A Foreign GovernmentRead the Press Release
LOS ANGELES – A Marina del Rey man was sentenced today to more than three years in prison for providing sensitive information about a network used to control and communicate with military satellites to an individual he believed was a foreign intelligence officer working for the People’s Republic of China (PRC).
Brian Scott Orr, 42, was sentenced to 37 months in federal prison by United States District Judge Beverly Reid O’Connell. In addition to the prison term, Judge O’Connell ordered Orr to pay a fine of $10,000, and to serve a three-year term of supervised release after he completes the prison term.
After being arrested by the FBI and charged last November, Orr pleaded guilty on March 17 to retention of stolen government property.
Orr is a former civilian employee who worked for the United States Air Force Research Laboratory (AFRL) in Rome, New York, from 2009 through 2011. While employed there, Orr maintained a Top Secret security clearance and was assigned to work on sensitive and classified matters related to the Air Force Satellite Control Network (AFSCN), a computer network used to control military satellites. Some of Orr’s responsibilities included the identification and evaluation of vulnerabilities in the network.
While working in this capacity, Orr obtained various materials used to train personnel on how to operate the computer network. Orr resigned from the Air Force Research Laboratory in 2011 after his access to classified and other sensitive areas had been withdrawn, but he unlawfully retained the restricted materials he had obtained. The materials were labeled with warnings restricting their export from the United States.
From September 2013 until November 2013, Orr met with an individual whom he believed to be a representative of a Chinese intelligence service, but who was in reality an undercover FBI agent (UCA). Orr met with the UCA multiple times and provided a two thumb drives that contained sensitive military technical data he had obtained during his employment at the Air Force Research Laboratory.
According to the plea agreement filed in this case, Orr provided the training materials he had obtained at the AFRL to the UCA and received $5,000.
Orr told the UCA he was the “foremost expert on attacking the computer network.” During the course of his communications with the UCA, Orr stated that he could destroy or disrupt U.S. military satellites on behalf of the PRC government, the entity he believed the UCA was working for, according to the plea agreement.
According to sentencing papers filed by prosecutors, Orr suggested to the UCA that, for a “big reward,” he could explain “the full amount, how to…destroy it,” when discussing the satellite system. Orr also suggested that he would need to be taken out of the country in order to “actually do something to this network.”
During one exchange, Orr explained to the UCA that he was providing him with 2 gigabytes of data that had “all the courses” used to “train satellite network operators.”
The investigation in this case was conducted by the Federal Bureau of Investigation and the Air Force Office of Special Investigations (AFOSI).
Release No. 14-116
Final Defendants in Quarter Billion Dollar 'Old Quest' Tax Refund Scam Plead Guilty to Defrauding Internal Revenue Service with Recent Pleas, 53 Linked to Massive Scheme Have Been ConvictedRead the Press Release
SANTA ANA, California – A licensed tax return preparer has pleaded guilty to filing more than $41 million worth of false claims against the United States, making her the 53rd and final defendant linked to the quarter billion dollar “Old Quest” tax refund scheme to be convicted.
Alma M. Wilbur, 40, of Victorville, pleaded guilty Friday afternoon to one count of making a false claim against the United States. Wilbur admitted that in May 2009 she filing a false federal tax return in her name that sought a refund of $281,146. When she pleaded guilty before United States District Judge Josephine L. Staton, Wilbur also admitted that she prepared more than 70 false tax returns that fraudulently claimed more than $41 million in bogus tax refunds.
The scheme run out of the Fontana-based Old Quest Foundation was the largest tax refund fraud in history involving misuse of Original Issue Discount tax forms. The case against Wilbur and the other Old Quest defendants stems from Operation “Stolen Treasures,” an investigation conducted by Special Agents with IRS - Criminal Investigation that led to 55 people being indicted by a federal grand jury in the fall of 2011.
Old Quest and a related business – the Rancho Cucamonga-based De la Fuente and Ramirez and Associates (DLFRA) – prepared and filed more than 400 false income tax returns that together claimed more than $250 million in fraudulent tax refunds.
During a search warrant executed at Old Quest’s offices, investigators seized several unfiled tax returns, including one signed tax return that falsely reported $10,500,106 in federal income tax had been withheld and fraudulently claimed a $6,868,675 tax refund. Although the IRS stopped most of the false refunds before they issued, several very large refunds were issued, including one for $1,192,653.
With Wilbur’s guilty plea, all of the defendants have been adjudicated with prosecutors securing 53 convictions, with nine defendants found guilty at trial and 44 pleading guilty. One defendant remains a fugitive, and one defendant was acquitted.
Last week, another licensed tax return preparer, who is an ordained minister, also pleaded guilty to preparing false tax returns. Eugene H. Marzette Sr., 71, of San Bernardino, pleaded guilty on Thursday to one count of making a false claim against the United States for preparing a false tax return for an Old Quest customer that claimed a refund of $1,152,024. The evidence shows that the IRS paid a $1 million refund to that Old Quest customer.
Also, last month, Jose Tavares Hernandez, 42, of Riverside, a Correctional Officer for the state of California, was convicted at trial of making false claims against the United States, based on false income tax returns that resulted in a $769,963 refund issued to him by the IRS.
As a result of these convictions, Marzette, Wilbur, and Tavares Hernandez each face a statutory maximum sentence of five years in federal prison when they are sentenced by Judge Staton. Tavares is scheduled to be sentenced on December 12; Marzette on January 9, 2015; and Wilbur on February 13, 2015.
Thus far, many of the other Old Quest schemers have been sentenced to lengthy terms of imprisonment, including:
Old Quest CEO Arturo S. Ruiz, who was sentenced to 14 years in prison;
Old Quest and DLFRA promoter Arturo Villarreal-Alba, who was sentenced to eight years in prison;
DLFRA owner Osman Norales, who was sentenced to 87 months in prison;
Old Quest promoters Ricardo Bonilla and Maribel Rincon, who were each sentenced to 33 months in prison;
Old Quest tax preparer Adel Cotton, who was sentenced 27 months in prison; and
Old Quest customers Fernando Tavares Hernandez and Christine Rincon, who were each sentenced to 15 months in prison.
This case is the product of an investigation by the Internal Revenue Service - Criminal Investigation.
Release No. 14-115
Feds Share $8.9 Million with Local Law Enforcement AgenciesRead the Press Release
Forfeited Assets from 2009 drug case distributed to 33 law enforcement agencies
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian announced today the distribution of $12,515,738 which represented the proceeds of assets seized in a marijuana distribution conspiracy. Of the total assets, $8,923,708.19 have been distributed to thirty-three law enforcement agencies in the Capitol District area and as far away as Illinois and California. Joining in the announcement was Wilbert L. Plummer, Associate Special Agent in Charge of the New York Division, of the United States Drug Enforcement Administration and James R. Burns, Jr., Assistant Special Agent in Charge, Albany District Office, of the Drug Enforcement Administration.
The remaining $3,592,029.81 went to the Department of Justice Asset Forfeiture Program. The primary mission of the Program is to employ asset forfeiture powers in a manner that enhances public safety and security. Asset forfeiture laws are intended to enable law enforcement agencies to disrupt and dismantle criminal organizations and deprive them of their illegal profits.
U.S. Attorney Hartunian stated, “What started as a simple traffic stop in Illinois turned into a well-orchestrated, multi-state effort involving the collaboration of many agencies resulting in the sentencing of five drug traffickers and forfeiture of millions of dollars of assets. By attacking large scale drug trafficking organizations and stripping them of their ill-gotten profits, we make a hard-hitting impact, stopping the distribution of drugs and ensuring the safety of our communities. We are pleased to use our federal resources to provide these forfeited assets to our partner agencies.”
DEA Acting Special Agent in Charge James J. Hunt stated, “Canori reaped millions from the illicit sale of marijuana in the Albany area contributing to drug abuse and drug addiction. Due to law enforcement’s cooperation, those millions will now be used to stop drug trafficking, curb drug abuse and support law enforcement’s ongoing efforts to keep our cities safe and secure.”
The case started on June 13, 2009 when Illinois State Police found approximately 334 pounds of marijuana hidden in a car trailer during a routine traffic stop. The drugs were intended to be transported from California to upstate New York for distribution. Through a controlled delivery executed with the Albany DEA Office, the delivery was completed, resulting in the arrest of three co-conspirators, Melissa Giove, Eric Canori and Robert Reinfurt, and eventually two others, Pamela Grosch and Sara Shafer. All five were later convicted in U.S. District Court for drug offenses.
At the time of his arrest, $1,473,543 in cash was seized from Eric Canori’s Wilton residence, along with approximately 40 pounds of marijuana. A subsequent search of a home in Ross, CA, rented by Canori, resulted in the seizure of an additional $688,660. Law enforcement agents were later provided with the locations of buried gold and silver bars and coins. 172 gold bars, 161 gold coins and a one hundred ounce silver bar were recovered, forfeited and eventually auctioned. Two pickup trucks and one trailer were also seized and forfeited.
As set forth below, agencies receiving a share of the $8,923,708.19 of forfeited assets include twenty local police departments, sheriff’s offices and district attorney’s offices, four New York State agencies and one federal agency. Additionally four Illinois law enforcement agencies and four California law enforcement agencies shared in the distribution. All received a percentage of the shared assets because of their cooperative work on the case.
This case was investigated by the Drug Enforcement Administration and the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Richard Belliss.
U.S. v. Canori et al. asset sharing Chart
Federal Jury Finds Convicted Felon Illegally Possessed PistolsRead the Press Release
PITTSBURGH - After deliberating for just over ten hours, on Friday, Sept. 5, 2014, a federal jury of six men and six women found Michael Eugene Gorny guilty of one count of violation federal firearms laws, United States Attorney David J. Hickton announced today.
Gorny, 25, of Pittsburgh, Pa., was tried before United States District Judge Nora Barry Fischer in Pittsburgh.
According to Assistant United States Attorneys Katherine A. King and Rebecca R. Haywood, who prosecuted the case, the evidence presented at trial established that on or about July 4, 2012, Gorny, being a convicted felon, illegally possessed a .40 S&W caliber Glock pistol, and a 9mm caliber Lorcin pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
Judge Fischer scheduled sentencing for Jan. 28, 2015 at 9 a.m. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Michael Eugene Gorny.
Duluth Man Sentenced for Producing Child PornographyRead the Press Release
ATLANTA – Todd Alexander Pell has been sentenced to 29 years in federal prison for producing pornographic images of young boys.
“The repeated acts of sexual abuse committed by Pell are appalling” said United States Attorney Yates. “We applaud the victim who had the courage to come forward and expose this abuse; he likely saved other young boys from the same fate.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s lengthy prison sentence of Pell removes a dangerous child predator from our community and prevents him from harming others in this manner. In working with our various law enforcement partners in keeping America’s youth safe, the FBI will continue to provide significant assets and resources toward the investigation of violent crimes against children.”
According to United States Attorney Yates, the criminal indictment, and information presented in court: In June 2013, a fourteen (14) year old male reported to Duluth Police that he had been sexually assaulted by Pell from December 2012 through February 2013 at Pell’s residence on Bromley Rowe in Duluth, Ga. Pell initially paid the victim to do yard work, but later propositioned the victim to engage in sex acts with Pell. In late 2012, Pell began taking sexually explicit photos of the victim and sexually abusing him. After each assault by Pell, Pell gave the victim money and took the victim out to eat. Pell also brought two older teens into his home to sexually assault the victim. Pell took photographs of these older males engaged in sex acts with the victim. During the course of the investigation, law enforcement also discovered two additional minor victims who were sexually abused by Pell. During the execution of a search warrant at Pell’s home, law enforcement recovered the camera Pell used to capture the sexual assaults and computers on which child pornography was found.
Pell, 44, of Duluth, Ga., was sentenced by United States District Judge Steve C. Jones to 29 years in prison to be followed by lifetime supervised release. He was also ordered to pay a $100 special assessment. The defendant will be required to register as a sex offender when he is released from prison. As part of his plea agreement with federal and state authorities, Pell will also enter a guilty plea to six counts of aggravated sodomy in Gwinnett County Superior Court.
This case was investigated by the Federal Bureau of Investigation, the Duluth Police Department and the Gwinnett County District Attorney’s Office.
This case is being 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 U.S. Attorneys’ Offices, 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.
Assistant United States Attorney Jill E. Steinberg prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
District Man Sentenced to 46 Months in Prison in $3 Million Embezzlement Scheme-Defendant Bought House and Trips to Las Vegas, Atlantic City, Miami, and Hawaii-Read the Press Release
WASHINGTON – Howard E. Person, Jr., 37, of Washington, D.C., was sentenced today to 46 months in prison on charges stemming from his embezzlement of $3 million from a small business in the District of Columbia, using his employer’s money for the purchase of a house, trips to casinos in Las Vegas and Atlantic City, and other personal expenses.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Kathy A. Michalko, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Person pled guilty in May 2014 in the U.S. District Court for the District of Columbia to interstate transportation of money taken by fraud. He was sentenced by the Honorable Reggie B. Walton. Upon completion of his prison term, Person will be placed on three years of supervised release. He also must pay approximately $3.2 million in restitution and an additional $5,000 in a forfeiture money judgment.
According to the government’s factual proffer, Person was hired to be the Finance Director of a small business in the District of Columbia. As the Finance Director, Person managed and maintained all of the financial accounts and records for the company. He was responsible for and oversaw the company’s payroll, accounts receivable, accounts payable, invoices, bank accounts, loans, and expense payments. From March 2008 to September 2011, Person diverted money from the company to another account which he exclusively controlled in order to embezzle money from the company. He accomplished the theft by opening a bank account in the name of the company but with himself as the sole person with authority to conduct financial transactions on the account. The owner of the company was not aware of this account and did not authorize Person to maintain a company account solely in his exclusive control.
Person then obtained payment checks which had been mailed or delivered from the company’s clients for payment of work performed; instead of depositing the checks into the authorized company bank account, Person caused them to be deposited into the secret account over which he had exclusive control. Person arranged for clients to make electronic payments to the secret account instead of the authorized account for work performed by the company.
Person also arranged for a finance company to send money to the secret account through its system of financing Accounts Receivable for expected payments for work performed by the company, without the knowledge and permission of the owner.
Through this method of depositing checks, diverting client payments, and financing loans, Person obtained in the secret account approximately $6,545,000, which was due and owing the company.
In order to conceal the theft, Person transferred approximately $3,336,000 from the secret account to the company-authorized account and at times paid legitimate company expenses. He also used fake invoices substantially underreporting the amounts of money due and owing to the company. In this way, Person was able to trick the owner into believing that the amounts of deposits into the authorized account matched the incoming money as reflected on the fake invoices.
Person also obtained debit cards on the secret account enabling him to charge goods and services to be paid by the money in the secret account which was funded by money he stole from the company. Person spent the $3,209,000 in stolen money for his own personal business and enjoyment, including: purchasing his home in the District of Columbia, in an amount in excess of $340,000; paying for trips to Las Vegas, Atlantic City, Miami, the Dominican Republic, and Hawaii; transferring money into his personal bank account and into his side-line business account; funding parties and shows; and causing withdrawals of over $55,000 in cash from ATMs and over $35,000 in debit card purchases at casinos in Las Vegas and Atlantic City.
In announcing the sentence, U.S. Attorney Machen, Chief Lanier, and Special Agent in Charge Michalko expressed appreciation for the work performed by MPD detectives from the Financial Crimes and Fraud Unit as well as by the Special Agents and financial analysts from the U.S. Secret Service. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Juan Juarez; Paralegal Specialists Kristy Penny, Donna Galindo and Corinne Kleinman; Assistant U.S. Attorneys Christopher Kavanaugh and Anthony Saler; former Assistant U.S. Attorney Mary Chris Dobbie, and Assistant U.S. Attorneys Virginia Cheatham and Bryan Seeley, who prosecuted the case.
14-197Cuyahoga Falls Man Sentenced to 30 Years in Prison for Trying to Buy A ChildRead the Press Release
A Cuyahoga Falls man was sentenced to 30 years in prison for attempting to purchase a 10-year-old girl, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation.
Robert W. Thomas, age 37, was found guilty earlier this year on three counts: offering to buy a child, enticement and receipt and distribution of visual depictions of minors engaged in sexually explicit conduct.
"This sentence is well-deserved given the disturbing nature of the charges," Dettelbach said. “Our office remains committed to working with the FBI and all our law enforcement partners to defend our children and fight human trafficking.”
“This case is the result of outstanding investigative work completed by the FBI and the Alliance Police Department and our partners,” Anthony said. “Law enforcement will continue to proactively and aggressively pursue predators that intend to harm our children.”
"The city of Alliance is very satisfied with the result in this matter," said Law Director Jennifer L. Arnold. "The level of professionalism and cooperation of all the agencies involved was impressive. I was proud to work with everyone involved, especially Detective Shatzer, who spearheaded the investigation."
On January 11, 2014, detectives from the Alliance Police Department arrested a man who was attempting to purchase a 10-year-old female child to keep and use for sexual purposes. The man had posted on an online site asking for anyone willing to arrange a “marriage” of their daughter to him. An Alliance Police Department officer, also assigned to the Ohio Internet Crimes Against Children Task Force, responded to the man’s posting and began a conversation, according to court documents.
Thomas agreed to a meeting with the online undercover officer to purchase for $400 what he believed to be a 10-year-old child. Thomas and the officer, acting in an undercover capacity, met in a business establishment in Alliance and then went outside to complete the “transaction.” As the two approached the undercover officer’s vehicle, Thomas was arrested. At the time of arrest, Thomas had $400 cash in his hand, according to court documents.
This case was investigated by the Federal Bureau of Investigation and Alliance Police Department, with assistance from the Cuyahoga Falls Police Department. The case was prosecuted by Assistant U.S. Attorney Michael A. Sullivan.
Child Molester Sentenced to 33 Years in PrisonRead the Press Release
Contact Person: Brad Parham (843) 665-6688
Florence, South Carolina ---- United States Attorney Bill Nettles stated today that Kevin Michael Stehlik has been sentenced in federal court in Florence, South Carolina, for Production of Child Pornography, a violation of 18 U.S.C. § 2251(a), and Possession of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B). United States District Judge R. Bryan Harwell of Florence sentenced Stehlik to 396 months (33 years) imprisonment, to be followed by supervised release for life, and restitution in the amount of $25,000.00.
#####
Evidence presented at the change of plea hearing established that Stehlik made numerous video recordings of himself while engaging in sexually explicit acts with a six–year-old child. Agents discovered the videos during the execution of a search warrant at Stehlik’s residence. During a search of Stehlik’s computer, agents also uncovered a significant amount of child pornography depicting sexually explicit images of prepubescent children.
The case was investigated by agents with ICE Homeland Security Investigations in Charleston. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
“While it is heartbreaking to see a registered sex offender gain access to and subsequently sexually abuse a young child, it is a relief to know that Kevin Stehlik will spend the next three decades behind bars,” said acting Special Agent in Charge Ryan L. Spradlin of ICE Homeland Security Investigations in Atlanta. “This investigation displayed terrific work by our special agents, who were able to positively identify Stehlik as the child’s abuser in pornography videos by comparing scars and other distinguishing features. Hopefully this lengthy sentence will bring some peace to the victim and family as they work to heal from the damage he so callously inflicted upon them.” United States Attorney Bill Nettles expressed his thanks for “the outstanding investigative work by the Charleston HSI agents which resulted in this predator being brought to justice.”
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.Bushwick Drug Dealer Convicted of Orchestrating Two Contract MurdersRead the Press Release
Earlier today, following three weeks of trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Shaun Taylor, also known as “S-Dot,” on charges of murder and narcotics trafficking. These charges arose from the defendant’s participation in a decade-long narcotics trafficking conspiracy in the Bushwick neighborhood of Brooklyn, in connection with which the defendant orchestrated two contract murders. When sentenced by United States District Judge Dora L. Irizarry, the defendant faces a mandatory life term of imprisonment. Taylor’s co-defendant, Timothy Pinkney, pleaded guilty on August 6, 2014, to the murder of Terrance Barnett, and is also awaiting sentencing.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
The evidence at trial showed that Taylor hired Pinkney to murder a man who had stolen Taylor’s “drug phone,” the cellular telephone Taylor used to conduct his lucrative narcotics business. Taylor paid Pinkney $1,500 to carry out the murder and mistakenly directed him to Terrance Barnett, who was visiting Brooklyn for the weekend and had no prior relationship with Taylor or Pinkney. On April 29, 2005, just before 10 p.m., Barnett was fatally shot as he stood with a friend on Putnam Avenue in Bushwick, Brooklyn. Two years later, Taylor hired two other men to kill Joseph Vargas. Taylor and his coconspirators targeted Vargas because they feared Vargas might turn against them after they stole a shipment of narcotics destined for Vargas. On June 20, 2007, at 6:20 p.m., at the direction of Taylor, one of the men hired by Taylor shot at Vargas and his brother on DeKalb Avenue in Bushwick. Vargas’s brother survived, but Vargas died at the scene.
“The defendant attempted to insulate himself by hiring young men to carry out brazen acts of violence at his behest, including the murders of Barnett and Vargas. We hope the victims’ families can take some measure of solace in knowing that the individual responsible for their sons’ murders has been brought to justice,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation; Drug
Enforcement Administration, Organized Crime Drug Enforcement Task Force Strike Force; and the New York City Police Department for their outstanding work in this case.
The government’s case is being prosecuted by Assistant United States Attorneys
Matthew Amatruda, David Pitluck, and Tali Farhadian.
The Defendant:
SHAUN TAYLOR
Age:
Brooklyn, NY
E.D.N.Y. Docket No. 10-CR-268
Burtonsville Man Admits He Stole $353,506 in Social Security Benefit Checks over A 20 Year PeriodRead the Press Release
Greenbelt, Maryland – Thomas Jefferson Kirby, Jr., age 50, of Burtonsville, Maryland pleaded guilty today to theft of government property.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division.According to his plea agreement, Kirby’s father received social security retirement benefits based on the father’s earnings record. At the time of his father’s death, the benefits were paid by direct deposit to a bank account on which Kirby was a co-signor. Kirby’s father died on April 2, 1994. His death was not reported to SSA. SSA paid a total of $353,506 from April 1994 until December 2013 when the benefits were terminated. At the time benefits were terminated, the father’s monthly benefit amount was $1,820. Kirby used his father’s benefits to pay for his own personal expenses.
Kirby faces a maximum sentence of 10 years in prison. Kirby has agreed to pay restitution of $353,506. U.S. District Judge Paul W. Grimm scheduled sentencing for December 16, 2014, at l:30 p.m.
United States Attorney Rod J. Rosenstein praised the Social Security Administration - OIG for its work in the investigation, and thanked Special Assistant U.S. Attorney Paul K. Nitze, assigned from the Social Security Administration, who is prosecuting the case.
Buffalo Woman Pleads Guilty to Conspiracy to Defraud the IRSRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Keianna A. Jones, 29, of Buffalo, NY, pleaded guilty to conspiracy to defraud the Internal Revenue Service before Chief U.S. District Judge William M. Skretny. The charge carries a maximum sentence of 10 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant conspired with others to submit false claims for income tax refunds. Blank W-2 forms were obtained from local business establishments for use in committing this fraud. Jones also had others obtain legitimate W-2 forms from actual employers and then altered the forms to create new W-2s by changing income and withholding information so as to maximize the refund to be obtained. In working with others, a portion of the refund received would go to the defendant. The loss to the Government as a result of this scheme totaled $54,316.00.
The plea is the result of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division under the direction of Special Agent-In-Charge, Shantelle P. Kitchen.
Sentencing is scheduled for January 21, 2015, before Judge Skretny.Buffalo Sisters Sentenced for Using Paper as MoneyRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Sayonara Heath, 33, and her sister, Sade Heath, 28, both of Buffalo, NY, who were convicted of bank fraud, were sentenced to time served plus two years supervised release by Chief District Court Judge William M. Skretny.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the prosecution, stated that the defendants were part of a conspiracy to defraud local area banks by participating in a “check kiting” scheme. The defendants opened bank accounts and deposited large checks to the accounts. The deposited checks were written on accounts that had insufficient funds or on accounts that had been closed. Before the banks could determine that the checks were not supported by any funds, the defendants withdrew smaller amounts from the accounts. Sayonara Heath received $628.89 from Key Bank and Bank of America, but the intended loss was $4,000. Sade Heath received $1,027.55 from Key Bank and Bank of America, but the intended loss was $16,050.
Co-conspirators Carlique Deberry, Nichole Dean and Antwan Green have also been convicted of bank fraud charges and are awaiting sentencing.
The sentencings are the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.Bucks County Man Indicted on Child Pornography ChargesRead the Press Release
William Kinsley, 66, of Langhorne, PA., was charged by indictment, unsealed today, with four counts related to child pornography, announced United States Attorney Zane David Memeger. The indictment charges Kinsley with one count of receipt of child pornography, two counts of distribution of child pornography, and count of possession of child pornography.
According to the indictment, between October of 2008 and August 2011, Kinsley possessed child pornography on his ThinkPad and on two computers. It is further alleged that on May 29, 2011, Kinsley received and attempted to receive child pornography. The indictment alleges that between January 21, 2011 and February 16, 2011, and on July 28, 2011, Kinsey aided and abetted the distribution of child pornography.
If convicted of all counts, Kinsley faces a maximum possible sentence of 70 years in prison.
The case was investigated by the Federal Bureau of Investigation, and has been assigned to Assistant United States Attorney Paul G. Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bakersfield Men Sentenced for Damaging Oil Field FacilitiesRead the Press Release
FRESNO, Calif. — Derek A. Brown, 33, and Bryan T. Schaub, 22, both of Bakersfield, were sentenced today to two years in prison and ordered to pay $240,084 in restitution for conspiring to damage energy facilities, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2011 and 2012, Brown and Schaub stole electronic equipment from the oil field facilities of Chevron, Occidental, Seneca Western Minerals Corporation, Aera Energy, and Berry Petroleum. Among the equipment they stole were programmable logic controllers that electronically control the opening and closing of valves in the oil fields. The theft of a programmable logic controller creates the risk of an oil spill or loss of production if not detected and remedied in time. The total loss of equipment by the oil companies exceeded $200,000.
“Brown and Schaub’s thefts resulted in significant losses in excess of the value of the equipment which was stolen and without any regard for the risk to consumers and the community. Removal of these highly technical controllers resulted in material losses and had the potential to negatively impact both production and prevention of oil spills,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento division. “We are thankful for the Kern County Sheriff’s Department for their continued partnership and assistance with the investigation of this matter, the first of its kind in the region.”
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant United States Attorneys Duce Rice and Michael Tierney prosecuted the case.
Attorney General Holder Announces New Drug Take-Back Effort to Help Tackle Rising Threat of Prescription Drug Addiction and Opioid AbuseRead the Press Release
Calling prescription drug addiction an “urgent and growing threat” to our nation’s public health, Attorney General Eric Holder on Monday announced a new Drug Enforcement Administration (DEA) regulation that would allow pharmacies, hospitals, clinics, and other authorized collectors to serve as authorized drop-off sites for unused prescription drugs. Under the new policy, long-term care facilities will also be able to collect controlled substances turned in by residents of those facilities, and prescription drug users everywhere will have permission to directly mail in their unused medications to authorized collectors.
Attorney General Holder said the new changes will help save lives and protect American families from the increased dangers of prescriptions drug misuse. In 2011 alone, more than half of the 41,300 unintentional drug overdose deaths in the United States involved prescription drugs, and hazardous opioid pain relievers led to about 17,000 of those deaths. Young people are especially susceptible to these dangers. The Attorney General noted that nearly four in 10 teens who have misused or abused a prescription drug have obtained it from their parents’ medicine cabinet.
“These shocking statistics illustrate that prescription drug addiction and abuse represent nothing less than a public health crisis,” the Attorney General said in a video message posted on the Justice Department’s website. “Every day, this crisis touches – and devastates – the lives of Americans from every state, in every region, and from every background and walk of life.”
The new policy announced Monday builds on existing take-back programs launched by the DEA. A recent take-back event coordinated by the DEA last April resulted in the safe return of 390 tons of prescription drugs at nearly 6,100 sites. Over the last four years alone, the DEA and other partnering organizations have taken in over 4.1 million pounds—or more than 2,100 tons—of prescription pills. The DEA’s next take-back event will be on Sept. 27, 2014.
In the video message, the Attorney General described the new policy as evidence of the department’s commitment to ending the national epidemic of prescription drug abuse that has already taken too many lives and hurt too many American families.
The complete text of the Attorney General’s video message is below:
“Prescription drug misuse and abuse is an urgent—and growing—threat to our nation and its citizens. According to a 2013 survey, roughly 6.5 million people ages 12 and older are current nonmedical users of prescription drugs. As recently as 2011, more than half of the 41,300 unintentional drug overdose deaths in the United States involved prescription drugs—and opioid pain relievers were involved in nearly 17,000 of those deaths. Nearly 110 Americans died every day that year from drug overdoses.
“And as we’ve learned from scientific studies, treatment providers, victims, and investigations, prescription drug abuse can easily lead to the abuse of heroin—an addiction that has become increasingly lethal. In fact, in the decade from 2002 to 2011, the annual number of drug poisoning deaths involving heroin doubled, making prescription opioids and heroin some of the most lethal substances in common use.
“These shocking statistics illustrate that prescription drug addiction and abuse represent nothing less than a public health crisis. And every day, this crisis touches – and devastates – the lives of Americans from every state, in every region, and from every background and walk of life.
“The Department of Justice has taken aggressive steps to fight back—by targeting the illegal supply chain; by disrupting so-called “pill mills”; and by expanding public health, education, and law enforcement efforts. But we also recognize that much of this work must start at home. Nearly four in 10 teens who have misused or abused a prescription drug have obtained it from their parents’ medicine cabinet.
“That’s why, today, I am announcing that we are expanding drug take-back efforts – by introducing new ways for people to safely dispose of old or unused prescription drugs. Through new DEA regulations, patients will be allowed to more easily join the fight against prescription drug abuse by dropping off their leftover medications at pharmacies, hospitals, clinics, and other “authorized collectors.” Beyond authorizing new drop-off sites, the new DEA rule will allow long-term care facilities to assist in the disposal of prescription controlled substances belonging to current or former residents. And most importantly, patients or their family members can mail their prescription controlled substances to an authorized collector using pre-paid mail-back packages that can be obtained right from their pharmacy, or from other locations like libraries and community centers.
“Drug take-back programs on a more limited scale have already proven effective. At a drug take-back event last April, Americans around the country turned in 390 tons of prescription drugs at nearly 6,100 sites coordinated by the DEA—and more than 4,400 state and local law enforcement partners. Over the last four years alone, the DEA and its allies have taken in over 4.1 million pounds—that's more than 2,100 tons—of prescription pills. Once collected, these medications are then responsibly destroyed to ensure that they don’t damage our environment by ending up in landfills or in the water supply. With these new regulations, and with continued take-back events—like the one scheduled in the coming weeks for September 27th—we hope to increase those numbers, and prevent more potentially harmful medications from being misused or abused by young people and others.
“As a lifelong member of America’s law enforcement community—as a former judge and U.S. Attorney—I have seen the devastating consequences of prescription drug abuse firsthand. And as Attorney General—and as a parent—I am committed to ending the national epidemic that has already stolen too many lives and torn apart too many families. I thank you for your help and your partnership in ensuring that we can continue to save lives and protect the futures of our young people.”
For more information, please visit the DEA’s website at www.DEA.gov. The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php .
Attorney General Holder Announces New Drug Take-Back Effort to Help Tackle Rising Threat of Prescription Drug Addiction and Opioid AbuseRead the Press Release
WASHINGTON – Calling prescription drug addiction an “urgent and growing threat” to our nation’s public health, Attorney General Eric Holder on Monday announced a new Drug Enforcement Agency (DEA) regulation that would allow pharmacies, hospitals, clinics, and other authorized collectors to serve as authorized drop-off sites for unused prescription drugs. Under the new policy, long-term care facilities will also be able to collect controlled substances turned in by residents of those facilities, and prescription drug users everywhere will have permission to directly mail in their unused medications to authorized collectors.
Attorney General Holder said the new changes will help save lives and protect American families from the increased dangers of prescriptions drug misuse. In 2011 alone, more than half of the 41,300 unintentional drug overdose deaths in the United States involved prescription drugs, and hazardous opioid pain relievers led to about 17,000 of those deaths. Young people are especially susceptible to these dangers. The Attorney General noted that nearly four in 10 teens who have misused or abused a prescription drug have obtained it from their parents’ medicine cabinet.
“These shocking statistics illustrate that prescription drug addiction and abuse represent nothing less than a public health crisis,” the Attorney General said in a video message posted on the Justice Department’s website. “Every day, this crisis touches – and devastates – the lives of Americans from every state, in every region, and from every background and walk of life.”
The new policy announced Monday builds on existing take-back programs launched by the DEA. A recent take-back event coordinated by the DEA last April resulted in the safe return of 390 tons of prescription drugs at nearly 6,100 sites. Over the last four years alone, the DEA and other partnering organizations have taken in over 4.1 million pounds—or more than 2,100 tons—of prescription pills. The DEA’s next take-back event will be on Sept. 27, 2014.
In the video message, the Attorney General described the new policy as evidence of the department’s commitment to ending the national epidemic of prescription drug abuse that has already taken too many lives and hurt too many American families.
The complete text of the Attorney General’s video message is below:
“Prescription drug misuse and abuse is an urgent—and growing—threat to our nation and its citizens. According to a 2013 survey, roughly 6.5 million people ages 12 and older are current nonmedical users of prescription drugs. As recently as 2011, more than half of the 41,300 unintentional drug overdose deaths in the United States involved prescription drugs—and opioid pain relievers were involved in nearly 17,000 of those deaths. Nearly 110 Americans died every day that year from drug overdoses.
“And as we’ve learned from scientific studies, treatment providers, victims, and investigations, prescription drug abuse can easily lead to the abuse of heroin—an addiction that has become increasingly lethal. In fact, in the decade from 2002 to 2011, the annual number of drug poisoning deaths involving heroin doubled, making prescription opioids and heroin some of the most lethal substances in common use.
“These shocking statistics illustrate that prescription drug addiction and abuse represent nothing less than a public health crisis. And every day, this crisis touches – and devastates – the lives of Americans from every state, in every region, and from every background and walk of life.
“The Department of Justice has taken aggressive steps to fight back—by targeting the illegal supply chain; by disrupting so-called “pill mills”; and by expanding public health, education, and law enforcement efforts. But we also recognize that much of this work must start at home. Nearly four in 10 teens who have misused or abused a prescription drug have obtained it from their parents’ medicine cabinet.
“That’s why, today, I am announcing that we are expanding drug take-back efforts – by introducing new ways for people to safely dispose of old or unused prescription drugs. Through new DEA regulations, patients will be allowed to more easily join the fight against prescription drug abuse by dropping off their leftover medications at pharmacies, hospitals, clinics, and other “authorized collectors.” Beyond authorizing new drop-off sites, the new DEA rule will allow long-term care facilities to assist in the disposal of prescription controlled substances belonging to current or former residents. And most importantly, patients or their family members can mail their prescription controlled substances to an authorized collector using pre-paid mail-back packages that can be obtained right from their pharmacy, or from other locations like libraries and community centers.
“Drug take-back programs on a more limited scale have already proven effective. At a drug take-back event last April, Americans around the country turned in 390 tons of prescription drugs at nearly 6,100 sites coordinated by the DEA—and more than 4,400 state and local law enforcement partners. Over the last four years alone, the DEA and its allies have taken in over 4.1 million pounds—that's more than 2,100 tons—of prescription pills. Once collected, these medications are then responsibly destroyed to ensure that they don’t damage our environment by ending up in landfills or in the water supply. With these new regulations, and with continued take-back events—like the one scheduled in the coming weeks for September 27th—we hope to increase those numbers, and prevent more potentially harmful medications from being misused or abused by young people and others.
“As a lifelong member of America’s law enforcement community—as a former judge and U.S. Attorney—I have seen the devastating consequences of prescription drug abuse firsthand. And as Attorney General—and as a parent—I am committed to ending the national epidemic that has already stolen too many lives and torn apart too many families. I thank you for your help and your partnership in ensuring that we can continue to save lives and protect the futures of our young people.”
For more information, please visit the DEA’s website at www.DEA.gov. The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Assistant Attorney General Caldwell Announces Sung-Hee Suh <br /> to Serve as Criminal Division Deputy Assistant Attorney GeneralRead the Press Release
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division today announced that Sung-Hee Suh has been appointed to serve as Deputy Assistant Attorney General overseeing the Appellate, Capital Case and Fraud Sections.
“Sung-Hee Suh is an exceptional attorney with a depth of experience across the spectrum of the department’s practice areas, from white collar to violent crime,” said Assistant Attorney General Caldwell. “The Criminal Division continues to attract extraordinary talent both from within government and from the private sector. I am confident that Sung-Hee will be an excellent addition to the Criminal Division.”
Suh returns to the Department of Justice following 15 years at the law firm of Schulte Roth & Zabel LLP, where she was a partner in the Litigation, Financial Institutions, Securities Enforcement and White Collar Crime, and Regulatory and Compliance practice groups. While in private practice, Suh handled numerous matters involving securities and commodities fraud, public corruption, health care fraud, the Foreign Corrupt Practices Act, the Bank Secrecy Act, and anti-money laundering and economic sanctions violations.
Prior to joining that law firm, Suh served in the United States Attorney’s Office for the Eastern District of New York from 1994 to 1999, including as Deputy Chief of the Organized Crime and Racketeering Section. While at the U.S. Attorney’s Office, Suh investigated and prosecuted a wide range of crimes, including murder, drug trafficking, extortion, money laundering and fraud. She successfully prosecuted the acting boss of the Gambino family and more than 60 other members and associates of organized crime families. She also obtained guilty verdicts against a former managing director of a major securities firm, an attorney and an accountant for operating a Ponzi scheme.
In recognition of her work at the U.S. Attorney’s Office, among other awards, she received the Director’s Award for Superior Performance as an Assistant United States Attorney from the Executive Office for United States Attorneys. In 2011, Suh received the Women of Power and Influence Award from the New York chapter of the National Organization for Women, and in 2012, Suh was recognized in Benchmark Litigation’s inaugural edition of the Top 250 Women in Litigation.
Suh joined the U.S. Attorney’s Office after working as an associate at Davis Polk & Wardwell. She served as a law clerk for the Hon. Robert L. Carter in the U.S. District Court for the Southern District of New York. She graduated cum laude from Harvard/Radcliffe College, received a Master of Arts degree from the Harvard Graduate School of Arts and Sciences, and graduated cum laude from Harvard Law School.Another of 20 Defendants Sentenced in Meth Distribution RingRead the Press Release
Two Defendants Still Await Sentencing
BOISE – John Odenwalt, 34, of Mountain Home, Idaho, was sentenced today to 60 months in prison for conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Odenwalt to serve five years of supervised release following his release from prison. He pleaded guilty to the charge on October 9, 2013.
The conspiracy involved two distribution cells in the Treasure Valley: one led by Jason Holmberg, sentenced on December 16, 2013, to 180 months in prison; the other by Andrew Polney, sentenced on April 7, 2014, to 130 months in prison. Another leading co-defendant, Kenneth Jones, of Sacramento, California, supplied multi-pound shipments of methamphetamine for transport to the Treasure Valley for distribution. Jones was sentenced on January 15, 2014, to 130 months in prison. The group operated from about June 2012, through the time of the various arrests on April 18, 2013, and May 23, 2013. Odenwalt carried methamphetamine from Holmberg to Polney.
A majority of Odenwalt’s co-defendants pleaded guilty and have been sentenced. Henry Horne will be sentenced on October 20, 2014. David Echevarria does not have a sentencing date yet.
The case was investigated by the Drug Enforcement Administration (DEA) Task Force, which includes agents of the DEA as well as task force officers from Nampa Police Department.
Alexandria Jury Finds Las Vegas Man Guilty of Kidnapping and MurderRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a federal jury in Alexandria found a Las Vegas man guilty of kidnapping and murdering a 12-year-old girl.
Thomas Sanders, 57, of Las Vegas, was found guilty by a federal jury of one count of kidnapping resulting in death and one count of use of a firearm during a crime of violence resulting in death. United States District Judge Dee D. Drell presided over the guilt phase of the trial, which started September 3rd and ended September 8th with closing arguments. The jury returned a guilty verdict after deliberating for about an hour.
The case will now move to the penalty phase of the trial, during which the same jury will decide whether Sanders should be put to death or serve a mandatory sentence of life without parole in federal prison. The penalty phase is scheduled to start Tuesday, September 16, 2014.
The FBI, Central Louisiana Safe Streets Task Force, Catahoula Parish Sheriff’s Office, Harrison County Sheriff’s Office, Yavapai County Arizona Sheriff’s Office, Coconino County Arizona Sheriff’s Office, and the Las Vegas Metropolitan Police Department conducted the investigation. Assistant U.S. Attorney William J. Flanagan, Assistant U.S. Attorney Brandon B. Brown and Trial Attorney Julie Mosley of the Justice Department Criminal Division’s Capital Case Section are prosecuting the case.
5 September 2014
Williamson County Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
Follow @SDILNewsOn August 29, 2014, Dennis A. Higgins, a/k/a “Dingo,” 43, of Marion, Ill., pled guilty to a one-count indictment charging Possession of a Firearm by a Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that, on May 9, 2014, agents executed a search warrant at Higgins’s Marion residence. Agents located two 12 gauge shotguns. Higgins admitted that the guns were his. Because Higgins had previously been convicted of a felony, he is prohibited from possessing firearms.
The firearm offense carries a penalty of up to 10 years’ imprisonment, to be followed by 3 years’ supervised release, and a fine of $250,000. Higgins is currently being held without bond pending a December 10, 2014, sentencing hearing.
The investigation was conducted by the Southern Illinois Enforcement Group. The Marion Police Department, Williamson County Sheriff’s Office, and Williamson County States Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Marcus Northern, Sr., 54, of South Bend, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 12/8/2014. This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION
- Otis Irvin, Jr , 40 of Gary, Indiana was sentenced to 24 months probation after pleading guilty to the felony offense of Distribution Of Crack Cocaine. According to documents filed in this case, in 2013, the FBI GRIT Task Force purchased a total 10 grams of crack cocaine during three controlled purchases from Irvin in Gary. This case was the result of an investigation by Federal Bureau of Investigation GRIT Task Force. This case was prosecuted by Assistant United States Attorney Dean Lanter.
- James Huddleston 42, of Medaryville, Indiana was sentenced to 18 months imprisonment and ordered to pay $53,790.49 in restitution after pleading guilty to the felony offense of Theft Concerning Programs Receiving Federal Funds And Forfeiture Allegations. According to documents filed in this case, from August 2011 through April 2013, Huddleston, while employed as the business manager for the Lake Ridge Public Schools in Gary, Indiana, embezzled $134,054, caused Lake Ridge to incur associated fees and spent much of the money gambling. Huddleston failed to report the embezzled income to the IRS and owes the IRS $25,000 in taxes as a result of the crime. To date, Huddleston has repaid all but $53,790.49 of the amount of restitution ordered. This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service. This case was prosecuted by Assistant United States Attorneys Gary Bell and Dean Lanter.
- Mario M Stokes 41, of Gary, Indiana was sentenced to 87 months imprisonment after pleading guilty to the felony offense of being a felon in possession of firearms. According to documents filed in this case, on or about December 4, 2013, law enforcement officers executed a Federal search warrant at 2200 Taney Street, Stokes’ residence. Investigators located a safe in a closet in a bedroom of the residence. Stokes provided the combination to the safe. When asked if there was anything in the safe that they should know about, Stokes stated that the safe contained “some marijuana and some money.” Upon opening the safe, investigators located approximately $11,600 cash and approximately 1.2 pounds of marijuana. Additionally, in the safe was a S&W .40 caliber handgun with a magazine containing 14 rounds of ammunition and 1 round in the chamber. This case was the result of an investigation by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Richard Dickus, 72, of Hebron, Indian, was sentenced to 18 months imprisonment, 1 year of supervised release and ordered to pay $217,996.35 in restitution to the Social Security Administration after pleading guilty to the felony offense of embezzlement and stealing money from the Social Security Administration. According to documents filed in this case, for over 22 years, from May 1991 through November 2013, Dickus stole and converted to his own use monthly social security benefits of his deceased mother, with the total amount of social security benefits stolen by Dickus being $217,996.35. This case was the result of an investigation by the Social Security Administration. The case was prosecuted by Assistant United States Attorney Dean Lanter.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Michael C. Wenger, 27, of Fort Wayne, Indiana pled guilty to the felony offense of distribution of material involving the sexual exploitation of minors. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Federal Bureau of Investigation and the United States Postal Inspection Service. Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
- Damion D. Alexander, 20, of Fort Wayne, Indiana was sentenced to 30 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of possession of a firearm after having been convicted of a misdemeanor crime of domestic violence. According to documents filed in this case, the Fort Wayne Police Department responded to a domestic disturbance call in the 2700 block of Paulding Road East, identifying Alexander as one of the parties involved in the disturbance and who had two active warrants. Alexander fled the scene in a described vehicle and subsequently led FWPD officers in a vehicle pursuit, with Alexander disregarding a stop, driving at a high rate of speed and driving the wrong way on a one way street. During the pursuit, a FWPD Officer observed Alexander’s driver door open and he attempted to run out of the vehicle as the vehicle was still moving. The officer observed that Alexander was holding a black handgun when he exited the vehicle and that he threw the handgun. Alexander fled on foot and a foot chase ensued. The firearm, a loaded Wesson .357 revolver, was recovered in the area that officers saw the handgun being thrown. After Alexander was apprehended, the FWPD officers found 3 rounds of .357 magnum ammunition in Alexander’s right front pants pocket. The ammunition was the same caliber and manufacturer as the ammunition found located in the firearm that was recovered. In the trunk of the vehicle that Alexander had been driving, officers located a second firearm, a loaded Winchester .22 caliber rifle. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
- Billy J. Gonzalez, 37, of Fort Wayne, Indiana was sentenced to 135 months imprisonment and 5 years supervised release after pleading guilty to the felony offense of conspiring to distribute and possess with the intent to distribute 5 kilograms or more of cocaine. According to documents filed in this case, this investigation began with controlled buys of powder and crack cocaine and progressed with wiretaps of several cocaine suppliers. Billy Gonzalez was identified as a middle-level supplier of cocaine and marijuana, and he coordinated numerous drug deals among his conspirators. This case was the result of an investigation by Federal Bureau of Investigation, G-Net, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
Waycross Man Pleads Guilty to Enticing Minors to Engage in Sex Acts and with Producing Child PornographyRead the Press Release
Brunswick, GA: Donnell Cornelius Shavers, 22, of Waycross, Georgia, pled guilty earlier this week before Chief United States District Court Judge Lisa Godbey Wood to enticement of minors to engage in sex acts and to the production of child pornography. Shavers will be sentenced after the completion of a presentence investigation by the U. S. Probation Office.
The case against Shavers and his codefendant Jacques Donte Taylor arose out of a joint investigation by Homeland Security Investigations and the Ware County Sheriff’s Office, with additional assistance from the Liberty County Sheriff’s Office. The case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims.
Assistant United States Attorney Daniel R. Crumby is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
U.S. Department of Justice Awards Fresno Police Department A $500,000 Grant to Combat Gang Violence and Gun CrimesRead the Press Release
FRESNO, Calif. — The Bureau of Justice Assistance, an agency of the United States Department of Justice, has announced a grant to the Fresno Police Department to fund Project Safe Neighborhoods, a violent gang and gun crime reduction program, United States Attorney Benjamin B. Wagner announced today.
“The Attorney General of the United States has directed this office and other federal law enforcement agencies to work together with our state and local partners to protect vulnerable communities from violent gangs and gun crimes through a multitrack approach," said U.S. Attorney Wagner. “That approach includes vigorous, proactive enforcement, but also engagement with communities to enhance prevention and stronger re-entry efforts to reduce recidivism. This grant will help do all of those things in the Calwa area of Fresno.”
Chief Dyer with the Fresno Police Department stated: "The PSN grant will further enable us to reduce violence in our neighborhoods and keep our community safer through strong partnerships with our federal, state and local criminal justice partners."
The grant will be used to fund the law enforcement personnel of the Multi Agency Gang Enforcement Consortium (M.A.G.E.C.) partners. The Fresno Police Department, the Fresno County Sheriff’s Department and the Fresno County District Attorney’s Office will conduct investigations of gang-related violence using the intelligence information and the analysis of crime data. M.A.G.E.C. will refer violent crime cases to the U.S. Attorney’s Office and the Fresno County District Attorney’s Office for prosecution.
The grant will also cover the costs of a team of professors and graduate assistants from the California State University, Fresno’s Department of Criminology. They will analyze gun and gang crime and intelligence data to promptly identify emerging crime hot spots. They will use highly advanced computer mapping software and programs that produce simplified maps that can be used for effective decision making.
Due to County jail funding limitations, it is common for gun/gang offenders to be rapidly released from the local facility, at times after a few hours from arrest. Now, three beds in the Fresno County jail will be dedicated to PSN gun/gang offenders.
The grant will also support a public service announcement campaign, which will be launched in newspapers, television, radio, Internet, billboards and on public transportation.
Friends of Calwa- Nature & Nurture. Project funds will be used to fund program staff and the purchase of project related equipment for community beautification (such as shovels, paint, and brushes), youth stipends for enrolled participants, community engagement meetings, facility fees, trainers, field trips (camping trip; zoo), and other project expenses. The program will be conducted within Calwa target area in community centers, churches, schools, parks and affected gang neighborhoods.
The California Governor’s Office of Emergency Services (Cal OES) will be responsible for financial oversight of all grant related activities, and it will be managed by the Fresno Police Department Grants Management Unit.
U.S. Attorney Files Civil Action to Forfeit Dinosaur FossilRead the Press Release
A civil complaint was filed yesterday in federal court in the Eastern District of New York to forfeit the fossilized skull and vertebrae of an Alioramus dinosaur (the “Dinosaur Skull”). The Alioramus was a dinosaur that lived in the late Cretaceous period, approximately 65 to 70 million years ago. It is related to the Tyrannosaurus Rex and Tarbosaurus. The Dinosaur Skull was falsely described as a French replica in January 2014 when it was shipped to the United States by Geofossiles, Inc., (“Geofossiles”) a French fossil dealer. Upon its arrival in the United States from France, the Dinosaur Skull was seized by U.S. Customs and Border Protection (CBP) with the assistance of Homeland Security Investigations (HSI). When Geofossiles petitioned for the Dinosaur Skull’s release, it conceded that the Dinosaur Skull was a genuine Mongolian fossil but attached forged Mongolian export documents. The complaint alleges that the Dinosaur Skull is the property of Mongolia and that it was imported into the United States contrary to law.
The complaint was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, HSI, New York.
“The extraordinary fossils that continue to be unearthed in Mongolia are not only a source of national pride for the Mongolian people, they are the property of the Mongolian people,” stated United States Attorney Lynch. “Property of cultural and historic significance that has been stolen from other countries will not find safe harbor in our ports. We are proud of our ongoing role in the repatriation of stolen and smuggled cultural property to its rightful owners.” Ms. Lynch thanked the Mongolian government and the Central Museum of Mongolian Dinosaurs for their assistance.
“Because of the diligent work of CBP officers and HSI special agents, this prehistoric fossilized skull from Mongolia was intercepted and removed from the stream of commerce,” said HSI Special Agent in Charge Hayes. “HSI works with its law enforcement partners to combat the smuggling of cultural property and return seized items to their rightful owners.”
When Geofossiles shipped the Dinosaur Skull to the United States, it falsely described the shipment as a low-value replica made in France. After the Dinosaur Skull was seized, Geofossiles petitioned CBP for its release. In the petition, Geofossiles conceded that the Dinosaur Skull was a genuine fossil, comprised of 70% original material and 30% cast to complete the skull. Geofossiles further admitted that the Dinosaur Skull’s country of origin was Mongolia, not France, and attached a contract to sell the piece for $250,000.
Under Mongolian law, significant fossil finds like the Dinosaur Skull are national property and, even if privately owned, cannot be sold to non-Mongolians or permanently exported. Nonetheless, Geofossiles attached to the petition several documents that purported to be Mongolian records authorizing the sale and export of the Dinosaur Skull from Mongolia to a Korean company in 2006. The records supplied by Geofossiles described the shipment as containing an incongruous combination of fossils and traditional Mongolian structures called “gers.” When Mongolian authorities located the original records for this shipment, they confirmed that only the gers were declared. Thus, the records supplied by Geofossiles were falsified to include fossils.
The government’s case is being handled by Assistant United States Attorney Karin Orenstein.
E.D.N.Y. Docket No. 14-CV-5198(BMC)
Two Men Indicted in Connection with Murder in Chautauqua CountyRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has indicted Jonathan Conklin, 43, and Charles Sanford, 30, on charges of carjacking, use of a firearm in furtherance of a crime of violence and felon in possession of a firearm. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum sentence of life, and a fine of $250,000.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the indictment, Conklin and Sanford robbed Mary Whitaker inside her Sherman, NY home on August 20, 2014. Soon after Whitaker answered the door at her home, the defendants shot and killed her. The defendants then stole her vehicle and drove it to Erie, Pennsylvania, where they were arrested on August 22, 2014.
The defendants, who are detained, will be arraigned on September 9, 2014 at 10:00 a.m.
The indictment is the culmination of an investigation on the part of the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Chautauqua County District Attorney’s Office, under the direction of District Attorney David W. Foley, the Federal Bureau of Investigation, and the City of Erie (Pennsylvania) Police Department, under the direction of Chief Randy M. Bowers.
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.Two Indicted for Illegally Growing 5,000 Marijuana Plants on Federal LandsRead the Press Release
MEDFORD, OR – Amanda Marshall, United States Attorney for the District of Oregon, announced that two defendants were indicted in relation to an illegal marijuana grow on federal land in Jackson County. Humberto Salgado-Salgado, 36, and Juan Albert Lopez-Moroyoqui, 50, were charged with conspiracy and manufacturing marijuana. In addition, Lopez-Moroyoqui was charged with being an alien who illegally returned to the United States after being deported for a drug related conviction.
Salgado-Salgado and Lopez-Moroyoqui were arrested in the marijuana grow on Forest Service Land in rural Jackson County, Oregon on August 18, 2014. Federal and State agents served a search warrant and seized approximately 5,000 marijuana plants.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
The Jackson County Sheriff’s Office, U. S. Forest Service, Department of Homeland Security, and the DEA all assisted in the investigation, and the prosecution is being conducted by Assistant U. S. Attorney Judith Harper.
Two Highlands County Men Plead Guilty to Firearm and Drug Trafficking OffensesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), Hugo Barrera, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), John Burke and Addy Villanueva, Special Agents in Charge, Florida Department of Law Enforcement (FDLE), Ft. Myers and Miami Regional Offices, respectively, Susan Benton, Sheriff, Highlands County Sheriff’s Office (HCSO), Paul C. May, Sheriff, Okeechobee County Sheriff’s Office (OCSO), and Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), announce that Alex Guerrier, 29, and Robin Jean Guillaume, 28, both of Highlands County, pled guilty to conspiracy to possess with intent to distribute cocaine hydrochloride and possession of a firearm in furtherance of drug trafficking in West Palm Beach.
As to the conspiracy to possess with intent to distribute charge, Guerrier faces a mandatory minimum sentence of ten years in prison up to a maximum of life in prison, a mandatory minimum term of supervised release of five years, a maximum fine of $10 million and a $100 special assessment. As to the conspiracy to possess with intent to distribute charge, Guillaume faces a mandatory minimum sentence of five years in prison up to a maximum of 40 years in prison, a mandatory minimum term of supervised release of four years, a maximum fine of $5 million and a $100 special assessment. As to the possession of a firearm in furtherance of drug trafficking charge, both defendants face a consecutive mandatory minimum sentence of ten years in prison up to a maximum of life in prison, up to three years of supervised release, a maximum $250,000 fine, and a $100 special assessment.
According to court documents, Guerrier and Guillame were part of a drug trafficking organization which operated in Highlands, Broward, and Miami-Dade Counties within the Southern District of Florida and elsewhere. The drug trafficking organization was responsible for the distribution of multi-kilogram quantities of cocaine hydrochloride, cocaine base, commonly referred to as “crack” cocaine, and other illegal narcotics.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the DEA, USMS, ATF, FDLE, HCSO, OCSO, and SLCSO. Mr. Ferrer also thanked the Sebring Police Department for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
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.
Two Companies to Pay $3.75 Million for Allegedly Causing Submission of Claims for Unreasonable or Unnecessary Rehabilitation Therapy at Skilled Nursing FacilitiesRead the Press Release
Life Care Services LLC (LCS), a manager of skilled nursing facilities based in Des Moines, Iowa, and CoreCare V LLP, doing business as ParkVista, a skilled nursing facility in Fullerton, California, have agreed to pay a total of $3.75 million to the government for causing the submission of false claims to Medicare for unreasonable or unnecessary rehabilitation therapy purportedly provided by RehabCare Group East Inc., a subsidiary of Kindred Healthcare Inc.
“The provision of Medicare benefits must be dictated by patient need, not the fiscal interests of providers,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “ Today’s settlement demonstrates the department’s commitment to safeguarding both Medicare beneficiaries and taxpayer dollars by holding accountable all entities involved in billing for unnecessary services.”
LCS has operated and managed skilled nursing facilities across the country, including ParkVista and, until 2013, a facility in Massachusetts. At the suggestion of LCS, ParkVista and the Massachusetts facility hired RehabCare to provide rehabilitation therapy services at their facilities.
The settlement resolves allegations that ParkVista submitted and LCS caused both ParkVista and the Massachusetts facility to submit false claims for rehabilitation therapy. The government alleges that LCS and ParkVista failed to prevent RehabCare from providing unreasonable or unnecessary therapy to patients in order to increase Medicare reimbursement to the facilities. The government contended that the reported therapy did not reflect the lower amounts of therapy generally provided to patients over the course of their stay.
The settlement further resolves allegations that LCS and ParkVista failed to prevent other RehabCare practices designed to inflate Medicare reimbursement, including: in lieu of using individualized evaluations to determine the level of care most suitable for each patient’s clinical needs, presumptively placing patients in the highest reimbursement level unless it was shown that the patients could not tolerate that amount of therapy; providing the minimum number of minutes of therapy required to bill at the highest reimbursement level while discouraging the provision of therapy in amounts beyond that minimum threshold, despite the Medicare requirement that the amount of care provided be determined by patients’ clinical needs; arbitrarily shifting the number of minutes of planned therapy between therapy disciplines to ensure targeted reimbursement levels were achieved; and reporting estimated or rounded minutes instead of reporting the actual minutes of therapy provided.
“Patients in skilled nursing facilities and the patients’ families should be able to have confidence that the facilities are not allowing therapy companies to manipulate the amount of therapy being provided based on financial motives,” said U.S. Attorney Carmen M. Ortiz for the District of Massachusetts. “Settlements like this one show that, when a facility contracts with an outside rehabilitation therapy provider, the facility has a continuing responsibility to ensure that the provider is not engaged in conduct that causes the submission of false claims to Medicare.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the 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.
The case was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the U.S. Department of Health and Human Services-Office of the Inspector General and the FBI . The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Three Wheeling Residents Convicted on Painkiller Distribution ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Three individuals involved in a large prescription painkiller trafficking ring entered pleas of guilty on Friday in Federal court according to United States Attorney William J. Ihlenfeld, II.
Steven L. NAMACK, age 65, entered a plea of guilty to “Distribution of Oxycodone.” NAMACK, who is in custody pending sentencing, faces up to 20 years in prison. As part of his plea, NAMACK will forfeit $2,000 which constitutes proceeds of the illegal activity.
Kristyn Elizabeth FETCKO, age 34, entered a plea of guilty to “Distribution of Oxycodone.” FETCKO, who is free on bond pending sentencing, faces up to 20 years in prison. As part of her plea, FETCKO will forfeit $3,905 which constitutes proceeds of the illegal activity.
Adam W. BARNES, age 40, entered a plea of guilty to “Use of a Telephone to Facilitate the Distribution of Oxycodone.” BARNES, who is in custody pending sentencing on bond, faces up to 4 years in prison.
The last remaining defendant in this case, Brian SCHULTZ, is scheduled for trial on September 23, 2014 before U.S. District Judge Frederick P. Stamp, Jr.
Assistant U.S. Attorney John C. Parr handled the cases on behalf of the government.
This case was investigated by the Ohio Valley Drug Task Force, which includes officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police-BCI, and the U.S. Drug Enforcement Administration. The Ohio Valley Drug Task Force is an Appalachia HITDA-funded initiative.In other court proceedings in Wheeling before Chief Judge John Preston Bailey:
GLENN A. MILLER, age 37, of Moundsville, entered a plea of guilty to “Distribution of Alprazolam within 1,000 feet of a Public Housing Authority.” Miller, who is free on bond pending sentencing, faces up to forty years in prison.
Jodi Howell, age 38, of McMechen, entered a plea of guilty to “Possession of a Controlled Substance.” Howell, who is free on bond, faces up to one year in prison.
These cases was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Marshall County Drug Task Force, consisting of officers and agents from the Moundsville Police Department, the Marshall County Sheriff’s Department, and the Drug Enforcement Administration. The Marshall County Drug Task Force is an Appalachia HITDA-funded initiative.
Three Individuals Charged with Conspiracy to Distribute Methamphetamine as A Result of Operation Glass HouseRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that three individuals have been arrested on federal charges as a result of a joint federal, state, and local law enforcement investigation dubbed Operation Glass House. Luis A. Acosta (34, Crescent City) was charged with conspiracy to distribute multiple quantities of pure/actual crystal methamphetamine pursuant to a federal criminal complaint. Enrique Munoz (41, Del Rio, Texas) and Juan Espinoza (33, Crescent City) were each charged by indictment with one count of conspiracy to distribute multiple quantities of pure/actual crystal methamphetamine and one count of possession with intent to distribute pure/actual crystal methamphetamine. Each faces a maximum penalty of life in federal prison.
According to court documents, Acosta, Munoz, and Espinoza participated in a conspiracy to acquire and distribute methamphetamine across state lines. The methamphetamine was ultimately distributed throughout Putnam County, Florida. As a result of Operation Glass House, law enforcement agents seized approximately four kilograms of methamphetamine.
This case was investigated by the Putnam County Sheriff’s Office, the Drug Enforcement Administration and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Malisa Chokshi.
An indictment/complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
Three Howard County Bloods Gang Members and Associates Plead Guilty to Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, pleaded guilty today to conspiring to participate in a racketeering conspiracy, discharging a firearm in furtherance of a crime of violence and the unlawful transfer of firearms, in connection with his membership in the Bloods gang operating primarily out of Howard County, Maryland. Ryan Gladden, a/k/a "Fats," age 26, and Kyle Austin, a/k/a "Fowdy," age 23, pleaded guilty on September 3 and 4, 2012 respectively, to the racketeering conspiracy.The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
The defendants were identified as members of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. The investigation included four court ordered wiretaps on gang members’ cell phones. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.According to his plea agreement, Wright was a member of the Bloods since at least 2010. Wright has supported fellow incarcerated gang members, participated in gang meetings and discussions regarding gang sanctions, and planned retaliation against gang members suspected of cooperation.
For example, on February 22, 2012, Wright and a co-defendant robbed a rival gang member at gunpoint. In January 2013, Wright fired a gun at a victim’s residence as he and another co-defendant drove by in a truck. Two innocent bystanders were outside and their car was damaged in the shooting. Wright also sold firearms with and to fellow gang members who were prohibited from possessing the firearms.
According to his plea agreement, Gladden was a resident of Wilkes Barre, Pennsylvania who played football on a semi-professional team in Scranton, Pennsylvania. He is formerly of Baltimore City and Randallstown, Maryland. Gladden has been a member of the Bloods gang since 2006. He became a leader and knew of violent crimes committed, or being planned by gang members, using guns and other dangerous weapons. He was also involved in drug trafficking in Pennsylvania, including marijuana and prescription pain pills.
According to his plea agreement, Austin has been a member of the Leuders Park Bloods gang operating in Baltimore, and an associate of the Bloods operating in Howard County, since August 2011. Austin sold marijuana, prescription pills and crack cocaine. He provided some of the drug profits to a jailed gang leader through Green Dot card numbers. Additionally, on October 22, 2012, Austin and two associates beat an individual as he was getting off an MTA bus and walking on East Patapsco Avenue in Baltimore, and robbed him of his money and cell phone. Austin was arrested on November 6, 2012.
On May 8, 2013, law enforcement executed multiple search warrants and arrested approximately 20 individuals connected with the Bloods gang, including Wright and Gladden. A search warrant was executed at Wright’s residence and firearms and ammunition were seized.
Wright and the government have agreed that if the Court accepts the plea agreement, Wright will be sentenced to 18 years in prison followed by 5 years of supervised release. U.S. District Judge George L. Russell III scheduled sentencing for January 16, 2015, at 9:30 a.m.
Gladden faces a maximum sentence of 20 years in prison for the racketeering conspiracy. Austin and the government have agreed that if the Court accepts the plea agreement, Austin will be sentenced to between 60 and 78 months in prison. Judge Russell scheduled their sentencings for December 12 and December 22, 2014, respectively.
To date, 18 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies.
Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who are prosecuting the case.Three Companies to Pay $3.75 Million for Submitting False Claims for Rehabilitation TherapyRead the Press Release
Boston – Life Care Services LLC (LCS), a Des Moines, Iowa-based manager of skilled nursing facilities, its affiliate, group purchasing organization Care Purchasing Services LLC (CPS), and CoreCare V, LLP, d/b/a ParkVista, a skilled nursing facility in Fullerton, Calif., have entered into agreements to pay a total of $3.75 million to resolve allegations that they submitted, or caused the submission of, false claims for rehabilitation therapy purportedly provided by RehabCare Group East, Inc. (RehabCare), a subsidiary of Kindred Healthcare, Inc.
“Patients in skilled nursing facilities and their families should have confidence that the facilities are not allowing therapy companies to manipulate the therapy they provide based on financial motives,” said Carmen M. Ortiz, United States Attorney for the District of Massachusetts. “Settlements like this one show that, when a facility contracts with an outside rehabilitation therapy provider, the facility has a continuing responsibility to ensure that the provider is not engaged in conduct that causes the submission of false claims to Medicare.”
LCS has operated and managed skilled nursing facilities across the country, including ParkVista and, until 2013, a facility in Massachusetts. The settlements resolve allegations that ParkVista submitted, and LCS caused both ParkVista and the Massachusetts facility to submit, false claims that sought inflated amounts of Medicare reimbursement based on the provision of unreasonable or unnecessary rehabilitation therapy that was dictated by financial considerations rather than patient needs. LCS’ affiliate, CPS, referred RehabCare to ParkVista and the Massachusetts facility. The United States alleges that LCS and ParkVista failed to prevent RehabCare from engaging in a pattern and practice of providing high levels of therapy that were not reasonable or necessary during so-called “assessment reference periods,” thereby causing ParkVista and the Massachusetts facility to bill for their Medicare patients at the highest therapy reimbursement level, and then providing less therapy to those same patients outside the assessment reference periods, when the facilities were not required to report to Medicare the amount of therapy RehabCare was providing to their patients. In that way, RehabCare and the facilities “ramped up” Medicare patients’ therapy minutes when it served to maximize the reimbursement rate and correspondingly reduced the patients’ therapy minutes, regardless of patient need, when the time spent on that therapy would not affect the Medicare reimbursement rate. The government alleges that, as a result of RehabCare’s practice of “ramping,” ParkVista and the Massachusetts facility often billed Medicare for their patients’ care at the highest therapy-based levels, even though the patients often were not receiving therapy at those levels.
The settlements further resolve allegations that LCS and ParkVista failed to prevent other RehabCare practices designed to inflate Medicare reimbursement, including: (1) in lieu of using individualized evaluations to determine the level of care most suitable for each patient’s clinical needs, presumptively placing patients in the highest reimbursement level unless it was shown that the patients could not tolerate that amount of therapy; (2) providing the minimum number of minutes of therapy required to bill at the highest reimbursement level while discouraging the provision of therapy in amounts beyond that minimum threshold, despite the Medicare requirement that the amount of care provided be determined by patients’ clinical needs; (3) arbitrarily shifting the number of minutes of planned therapy between therapy disciplines to ensure targeted reimbursement levels were achieved; (4) providing significantly higher amounts of therapy on the final day of an assessment reference period in order to achieve the minimum level of therapy necessary to achieve the highest RUG level; and (5) reporting estimated or rounded minutes instead of reporting the actual minutes of therapy provided.
As recounted in the settlement agreement with LCS and CPS, the United States alleges that LCS had a reduced incentive to monitor RehabCare adequately, since RehabCare was paying CPS three percent of the revenues RehabCare received from those facilities. Finally, the settlement with LCS and CPS resolves the United States’ allegation that CPS accepted a kickback from RehabCare in the form of the “free” services of a RehabCare employee.
“The provision of Medicare benefits must be dictated by patient need, not the fiscal interests of providers,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “Today’s settlement demonstrates the Department’s commitment to safeguarding both Medicare beneficiaries and taxpayer dollars by holding accountable all entities involved in billing for unnecessary services.”
This matter was investigated by the Department of Health and Human Services, Office of the Inspector General and the Federal Bureau of Investigation, and was handled by District of Massachusetts Assistant United States Attorneys Gregg Shapiro and Patrick Callahan and Department of Justice Trial Attorneys Christelle Klovers and Rohith Srinivas.
Tampa Crack Cocaine Traffickers Sentenced to Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell yesterday sentenced Paul Close (30) to 15 years and six months in federal prison for conspiring to distribute crack cocaine. Close was the last of four individuals to be sentenced in this case. On August 8, 2014, Craig Cooley (36) was sentenced to 17 years and six months in federal prison for conspiring to distribute 280 grams or more of crack cocaine. Lataurus Wanser (31) was sentenced to nine years’ imprisonment for conspiring to distribute 28 grams or more of crack cocaine. On August 11, 2014, Daniel Brumfield (35) was sentenced to 21 years in prison for conspiring to distribute 280 grams or more of crack cocaine. As part of their sentences, the Court also entered a money judgment in the amount of $13,215.00 against each individual, which were the proceeds of the charged criminal conduct. In addition, Craig Cooley was ordered to forfeit a 2009 Nissan 370Z Coupe, which was traceable to proceeds of the offense. All four individuals pleaded guilty in April and May of this year.
According to court documents, Cooley, Wanser, and Close were supplying crack cocaine to Brumfield. Brumfield arranged to sell the crack cocaine to an undercover detective on several occasions. Cooley also supplied crack cocaine to the detective on four occasions. Wanser and Close each supplied crack cocaine to the detective on one occasion. The total amount of crack cocaine distributed to the undercover detective was 288.93 grams. In addition to selling the drugs to the undercover detective, Brumfield, a previously convicted felon, also sold the detective a loaded .380 caliber handgun and two boxes of .380 caliber ammunition. Due to his previous felony conviction, Brumfield is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shauna S. Hale.