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27 August 2014
City of Buffalo Employee Sentenced for Stealing Thousands of Dollars from Parking MetersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Francis Tronolone, 33, of Buffalo, N.Y., who was convicted of stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding, was sentenced to 6 months in prison by U.S. District Judge, Richard J. Arcara. The defendant has also been ordered to pay $9,000 in restitution.
“As we have stated previously, this office intends to prosecute any public official responsible for stealing money or breaching their public trust,” said U.S. Attorney William Hochul. “This marks the fourth defendant who from a single government agency did just that.”
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was employed by the City of Buffalo for approximately 10 years. During that time, the defendant held various positions within the Department of Parking Enforcement, including parking meter collector and parking meter mechanic. In this capacity, Tronolone was responsible for collecting coins deposited into parking meters and repairing malfunctioning meters.
During the period of his employment, the defendant stole approximately $9,000 in coins from city parking meters, money that was supposed to be deposited into the City treasury. Some of the money was stolen from parking meters that had been rigged by other parking meter mechanics. Tronolone kept a small cooler in the back of his vehicle where he would conceal the stolen coins.
In 2011, the City of Buffalo's Department of Parking Enforcement initiated a review of parking meters after suspecting that quarters were being stolen from the meters. That review and subsequent investigation by the City of Buffalo and the FBI revealed that hundreds of thousands of dollars had been stolen from the City by multiple employees.
Tronolone is the third employee of the Department of Parking Enforcement to be sentenced in this case. James Bagarozzo was convicted of stealing over $200,000 from Buffalo parking meters and sentenced to 30 months in prison on August 16, 2013. Bagarozzo was also ordered to pay $210,000 in restitution. Lawrence Charles has also been convicted of stealing over $10,000 from Buffalo parking meters and was sentenced to six months and prison and ordered to pay $15,000 in restitution. A fourth employee, Franklin Lopez, pleaded guilty to stealing thousands of dollars from the City of Buffalo, and will be sentenced on October 16, 2014.
The sentencing is the culmination of an investigation on the part of Special Agents from the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Chicago Man Allegedly Exploited U.S. Visa Program to Defraud Chinese Investors of $160 Million in Purported O’Hare ComplexRead the Press Release
CHICAGO — A Chicago man who purported to be building a $912 million hotel and convention center complex near O’Hare International Airport was indicted today on federal charges for allegedly exploiting a U.S. visa program to fraudulently raise approximately $160 million from some 290 Chinese nationals who invested in the project while seeking U.S. residency.
The defendant, ANSHOO SETHI, 30, of Chicago, was charged with eight counts of wire fraud and two counts of making false statements in a 10-count indictment returned today by a federal grand jury. He was the founder and a managing member of A Chicago Convention Center, LLC, which purported to be building the hotel and convention center on nearly three acres of land located at 8201 West Higgins Rd., east of the airport. Sethi, who was also the managing member of the Intercontinental Regional Center Trust of Chicago, LLC, will be arraigned on a date yet to be determined in U.S. District Court.
The indictment seeks forfeiture of at least $11 million in administrative fees that Sethi allegedly collected from Chinese investors and expended as part of the fraud scheme. Sethi misappropriated at least $320,000 of the fees to purchase luxury goods for himself, his family, and friends, and for an unrelated civil lawsuit settlement, to fund a cosmetic surgery business, and for other personal expenses, the indictment alleges.
The U.S. Securities and Exchange Commission sued Sethi over the purported project in early 2013 and the case was settled earlier this year. Approximately $147 million, which had been escrowed by Sethi and frozen by the SEC, was returned to Chinese investors.
The indictment alleges that between January 2011 and February 2013, Sethi defrauded investors and deceived the U.S. Department of Homeland Security’s U.S. Citizenship and Immigration Services (USCIS) in its review of visa applications through false statements and representations about the participation of established hotel brands in the project; the appraised value of the project site; government financing; the City of Chicago’s provision of Tax Increment Financing; the development of the project; and the use of the investors’ administrative fee.
According to the indictment, foreign nationals may obtain an EB-5 visa, qualifying them for U.S. residency, if they invested $1 million, or if they invested at least $500,000 in a domestic project in a high unemployment or rural area and their investment would create or preserve at least 10 jobs for U.S. workers. In addition, EB-5 visas were set aside to be granted to foreign investors in Regional Centers that promoted economic development, such as Sethi’s Intercontinental Regional Center Trust of Chicago. The USCIS granted Sethi’s application for Regional Center status in June 2011.
Sethi solicited Chinese nationals who were interested in obtaining EB-5 visas to invest $500,000 each plus a $41,500 administrative fee in A Chicago Convention Center and the Intercontinental Regional Center, representing that the $500,000 would be used for construction of the complex and the $41,500 would be used for administrative and marketing expenses, the indictment alleges. Each Chinese national who invested $541,500 in the project also applied for an EB-5 visa with USCIS, but no EB-5 visas were actually granted to investors through the convention center project.
A Private Offering Memorandum stated that each investment interest constituted approximately 0.025 percent ownership of the project, and it projected raising $249 million through investor contributions. Additional funding for the project would be obtained through a contribution of the three-acre site on Higgins Road, which Sethi allegedly represented had a greatly inflated appraised value of $177 million, approximately $339 million in government bond financing, and various government tax credits and grants, the memorandum stated.
To raise investment funds, Sethi used employees and foreign sales agents and provided them with numerous documents and marketing materials to distribute to investors in China. Sethi also made presentations regarding the project directly to investors in China, according to the indictment.
A Private Offering Memorandum stated that each investment interest constituted approximately 0.025 percent ownership of the project, and it projected raising $249 million through investor contributions. Additional funding for the project would be obtained through a contribution of the three-acre site on Higgins Road, which Sethi allegedly represented had a greatly inflated appraised value of $177 million, approximately $339 million in government bond financing, and various government tax credits and grants, the memorandum stated.
To raise investment funds, Sethi used employees and foreign sales agents and provided them with numerous documents and marketing materials to distribute to investors in China. Sethi also made presentations regarding the project directly to investors in China, according to the indictment.
The indictment further alleges that Sethi falsely represented that the project had executed franchise agreements with established hotel brands, namely Hyatt, Starwood, and Intercontinental Hotel Group, to operate at least three separate hotels at the complex, knowing at the time that no such agreements existed.
Sethi also allegedly falsely represented that that the State of Illinois and the federal government were investing funds and providing tax credits for the project, including circulating a forged letter stating that the project qualified for financing through the Illinois Finance Authority. He also falsely represented that the City of Chicago had agreed to provide approximately $97 million through Tax Increment Financing, and he distributed a fake agreement and a fake city ordinance as evidence that the project had been approved for TIF financing, the indictment alleges.
Sethi further falsely represented that the $41,500 administrative fee was fully refundable if the investors’ EB-5 visas were not approved, even though he knew that he had spent nearly all of the administrative fees collected and did not have the resources to repay the investors.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The SEC and the USICS assisted in the investigation.
The government is being represented by Assistant U.S. Attorney Sunil Harjani.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or an alternate fine of twice the loss or twice the gain, whichever is greater, and restitution is mandatory. Each count of making false statements carries a maximum sentence of five years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Chamico Employees Plead Guilty to Conspiracy to Commit Mail FraudRead the Press Release
U.S. Attorney Kenneth Polite announced that JERRY ATHEY, age 56; DAVID LOWE, age 48; and TERRY CASTILOW, age 48, all residents of Bogalusa, Louisiana, pleaded guilty today before U.S. District Court Judge Helen G. Berrigan, to one count of conspiracy to commit mail fraud for their participation in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits. CASTILOW also pleaded guilty to one count of mail fraud.
CASTILOW, LOWE, and ATHEY, were indicted in April 2014, along with CHARLES “CHUCK” MIZELL, JR., JAMES CREEL, WILLIAM DARRYL KING, TENILLE NIELSON, JACQUELINE MYERS, and ROGER NADEAU, for mail fraud and conspiracy to commit mail fraud. According to the indictment, beginning at a time unknown, but no later than on or about September 24, 2009, and continuing through on or about January 11, 2014, MIZELL, JR., CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU, conspired to defraud the Louisiana Workforce Commission (“LWC”) of money and property by means of false and fraudulent representations, pretenses and promises, well knowing the representations, pretenses and promises were false, and mailed and caused to be mailed through the United States Postal Service unemployment (“UI”) benefit claim forms for the purpose of obtaining UI benefits to which they were not entitled. Specifically, at the time CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU applied for UI benefits and made weekly representations to LWC that they were unemployed and not getting paid, MIZELL, JR. actually employed them at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.
MIZELL, JR., was the President of Chamico and, according to the factual basis signed by CASTILOW, LOWE, and ATHEY, he asked them to fraudulently file for unemployment so that he would not have to pay their full salaries during tough economic times for Chamico. CASTILOW, LOWE and ATHEY would each get cash from Chamico during the weeks they were claiming unemployment benefits reporting that they were not working and not getting any income from work.
When CASTILOW became Chamico’s office manager in 2013, she began assisting MIZELL, JR., in facilitating the scheme for the other employees. According to the factual basis for CASTILOW’s plea, she completed the unemployment forms for six Chamico employees fraudulently representing to the Louisiana Workforce Commission that the employees did not work at Chamico when she knew that they were working and/or receiving income from Chamico. CASTILOW kept the payroll records for the employees and the ledgers showing how much cash each employee who was participating in the unemployment scheme was to receive each week. CASTILOW cashed the checks that MIZELL, JR. endorsed for those employees he was paying while they were drawing unemployment and still working for him. On pay day, those employees picked up the cash payments from CASTILOW.
On May 7, 2014, JACQUELINE MYERS pleaded guilty to conspiracy to commit mail fraud for her participation in the same scheme. MYERS is scheduled to be sentenced on September 24, 2014. CASTILOW, LOWE, and ATHEY will be sentenced on December 3, 2014.
CASTILOW, LOWE, ATHEY, and MYERS each face a maximum term of five years incarceration, a $250,000 fine, and three years supervised release on the conspiracy conviction. CASTILOW faces an additional sentence of up to twenty years in prison, a $250,000 fine and three years supervised release for her mail fraud conviction.
The trial of the remaining defendants is scheduled for September 15, 2014.
The case was investigated by the Department of Labor-OIG and the Federal Bureau of Investigation with assistance from the Louisiana Workforce Commission. The case is being prosecuted by Assistant United States Attorney Emily K. Greenfield.
(Download Factual Basis - Athey )
(Download Factual Basis - Castilow )
(Download Factual Basis - Lowe )
Carrollton Woman Indicted in $185,000 Bank Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carrollton, Mo., woman was indicted by a federal grand jury today for a $185,000 bank fraud scheme.
Carol Joyce Noble, 62, of Carrollton, was charged in a three-count indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that Noble defrauded Central Trust Bank in Jefferson City, Mo., in September 2011 as part of a scheme to obtain a fraudulent $185,000 loan. According to the indictment, Noble caused false loan documents to be prepared in order to obtain the loan to purchase a convenience store in Stover, Mo.
Also as part of the scheme, the indictment says, Noble caused the fraudulent appraisal of her Gravois Mills, Mo., residential property in order to obtain the loan. Noble allegedly changed the physical address of the residence to an adjacent residence by altering the last digit of the house number, unbeknownst to the neighbor. Noble allegedly met the appraiser at her neighbor’s home and misrepresented to the appraiser that it was her own. The appraiser then appraised the wrong home, the indictment says, at a value $100,000 higher than the true value of Noble’s property.
Noble is charged with three counts of bank fraud – two counts related to the fraudulent appraisal, and one count related to the loan documents she submitted to Central Trust Bank that falsely represented the value of her residence.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lauren Kummerer. It was investigated by the FBI.Branson Woman Pleads Guilty to False Tax Return after Embezzling from Branson TheaterRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Branson, Mo., woman has pleaded guilty in federal court to filing a false tax return after embezzling more than $678,000 from the Andy Williams Moon River Theatre in Branson.
Dawn K. Cleveringa, 59, of Branson, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Tuesday, Aug. 26, 2014, to a federal information that charges her with making a false federal income tax return.
Cleveringa was the controller of the Andy Williams Moon River Theatre from 1992 to 2009. Cleveringa’s duties as controller included conducting or supervising financial transactions of the Andy Williams Theatre, including employee payroll and issuing IRS Forms W-2 to employees.
By pleading guilty, Cleveringa admitted that she made unauthorized payments to herself, and unauthorized payments of her personal expenses, from funds of the Andy Williams Moon River Theatre in 2007 and 2008. To disguise her theft, Cleveringa manipulated the accounting system of the Andy Williams Moon River Theatre.Cleveringa has been prosecuted in state court for embezzling more than $678,000 from the Andy Williams Moon River Theatre. The federal charge is related only to the portion of the embezzled income for which Cleveringa did not pay federal income taxes.
Cleveringa admitted that she failed to include some of the embezzled income on her federal income tax return. In 2007, Cleveringa embezzled approximately $160,642 from the Andy Williams Theatre that was not claimed on her federal income tax return. In 2008, Cleveringa embezzled approximately $102,013 from the Andy Williams Moon River Theatre that was not claimed on her federal income tax return. The total amount embezzled during 2007 and 2008, which was not claimed on her federal income tax return, was approximately $262,656.
Under federal statutes, Cleveringa is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.Branford Woman Admits Failing to Pay Taxes on Money Received During Gifting Tables Pyramid SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EILEEN BRENNAN, 77, of Branford, pleaded guilty on August 19, 2014, before U.S. District Judge Alvin W. Thompson in Hartford to a federal tax charge related to her participation in an illegal pyramid scheme known as “Gifting Tables.”
According to court documents and statements made in court, a Gifting Table is configured as a four-level pyramid, with eight participants assigned to the bottom row, four participants assigned to the third row, two participants assigned to the second row, and one participant assigned to the top row. The top row participant is referred to as the “Dessert,” the two participants on the second row as “Entrees,” the four participants on the third row as “Soup and Salads,” and the eight participants on the bottom row as “Appetizers.” To join a Gifting Table, new participants were required to pay $5,000, typically cash, to the Dessert, that is, the participant occupying the top position on the pyramid. The $5,000 payment, which was fraudulently characterized as a gift, secured the new participant a position as an Appetizer on the bottom row. Participants progressed from the bottom row of the pyramid by recruiting additional people to join the Gifting Table. When eight new participants joined a Gifting Table, each having made a $5,000 “gift” to the person occupying the Dessert position at the top of the pyramid, the Dessert left the Gifting Table and kept the $40,000 paid by the eight new participants. That particular Gifting Table was then split, with the two participants occupying the Entree position on the second row moving to the top position (Dessert) of two new pyramids. The other incumbent members of the Gifting Table moved up a row on one of the two newly-formed pyramids, and the search for 16 new participants began. The success of the Gifting Tables depended on new participants joining and making the $5,000 “gift.”
In 2008, 2009 and 2010, BRENNAN received $100,000 while participating in the Gifting Tables scheme. Even though she had been advised by an attorney that the money was taxable income and not a gift, she failed to pay federal income taxes on the money she received.
BRENNAN pleaded guilty to one count of willful failure to file a return, supply information or pay tax, a charge that carries a maximum term of imprisonment of one year and a fine of up to $25,000. Judge Thompson scheduled sentencing for November 17, 2014.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Peter S. Jongbloed.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Bellevue Man Sentenced for Firearms CrimesRead the Press Release
Terrance Joseph Kilburg, age 48, from Bellevue, Iowa, received a 235-month prison term after an April 14, 2014, guilty plea to one count of being a felon in possession of firearms and ammunition and one count of possessing unregistered National Firearms Act Weapons.
In a plea agreement, Kilburg admitted he was a felon and possessed fifteen firearms and various forms of ammunition. Two of these firearms were short barreled, or “sawed-off,” shotguns. Kilburg also admitted to allowing an individual access to his property to manufacture methamphetamine. Items associated with the manufacture of methamphetamine were seized from his property during the execution of a search warrant. While on release pending sentencing, Kilburg fled the Northern District of Iowa and was declared a fugitive from justice. Kilburg was eventually arrested by the Michigan State Patrol.
Kilburg was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Kilburg was sentenced to 235 months’ imprisonment. A special assessment of $200 was imposed and he must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Kilburg is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Lisa C. Williams and investigated by the Iowa Department of Natural Resources, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-cr-1005.
Alabama Pest Control Company and Its Owner Sentenced for Unlawful Application of Pesticides at Georgia Nursing HomesRead the Press Release
Steven A. Murray, 54, of Pelham, Alabama, and his company, Bio-Tech Management Inc., were sentenced today in federal court in Macon, Georgia, after pleading guilty to charges of conspiracy, unlawful use of pesticides, false statements and mail fraud in connection with the misapplication of pesticides in Georgia nursing homes, announced Acting Assistant Attorney General Sam Hirsch of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Murray was sentenced by District Judge Marc T. Treadwell to two years in prison, one year of supervised release and to pay a fine of $7,500. Bio-Tech was sentenced to three years of probation and to pay a fine of $50,000.
From October 2005 to June 2009, Murray and Bio-Tech provided monthly pest control services to hundreds of nursing homes in several southern states including Georgia, South Carolina, North Carolina and Alabama by spraying pesticides in and around their clients’ facilities. Bio-Tech employees routinely applied the pesticide Termidor indoors, contrary to the manufacturer’s label instructions, and then created false service reports to conceal that illegal use. After the Georgia Department of Agriculture made inquiries regarding Bio-Tech’s illegal use of Termidor and other pesticides, Murray directed several of his Bio-Tech employees to alter company service reports with the intent to obstruct the investigation.
“Today’s sentence is fair and just punishment for Murray and his company’s abuse of pesticides in nursing homes, their fraud against their clients, and their concealment of crimes from state and federal investigators,” said Acting Assistant Attorney General Hirsch. “Companies must abide by the laws that protect the public from the harmful effects of improperly applied pesticides.”
“This case is particularly disturbing because of the defendants’ intentional disregard for the wellbeing of a vulnerable group of victims whose safety was entirely in the defendants’ hands,” said U.S. Attorney Moore. “This sentence is a just punishment for them and a stern warning to others who might be similarly tempted in the future.”
“Today’s sentence highlights the importance of using pesticides in a safe and legal manner, especially around vulnerable populations,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Georgia. “The defendant exposed patients to harmful pesticides which jeopardizing their health and safety and tried to cover it up by submitting false reports. EPA and its partner agencies are committed to holding these kinds of dangerous actions accountable to the law.”
The case was prosecuted by Trial Attorneys Richard J. Powers and Adam Cullman of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, with assistance from the U.S. Attorney’s Office Middle District of Georgia. U.S. EPA-CID Region 4 in Atlanta conducted the investigation.Alabama Pest Control Company and Its Owner Sentenced for Unlawful Application of Pesticides at Georgia Nursing HomesRead the Press Release
WASHINGTON – Steven A. Murray, 54, of Pelham, Ala., and his company, Bio-Tech Management Inc., were sentenced today in federal court in Macon, Ga., after pleading guilty to charges of conspiracy, unlawful use of pesticides, false statements and mail fraud in connection with the misapplication of pesticides in Georgia nursing homes, announced Sam Hirsch, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division, and Michael J. Moore, U.S. Attorney for the Middle District of Georgia.Murray was sentenced by District Judge Marc T. Treadwell to two years in prison, one year of supervised release and to pay a fine of $7,500. Bio-Tech was sentenced to three years of probation and to pay a fine of $50,000.
From October 2005 to June 2009, Murray and Bio-Tech provided monthly pest control services to hundreds of nursing homes in several southern states including Georgia, South Carolina, North Carolina and Alabama by spraying pesticides in and around their clients’ facilities. Bio-Tech employees routinely applied the pesticide Termidor indoors, contrary to the manufacturer’s label instructions and then created false service reports to conceal that illegal use. After the Georgia Department of Agriculture made inquiries regarding Bio-Tech’s illegal use of Termidor and other pesticides, Murray directed several of his Bio-Tech employees to alter company service reports with the intent to obstruct the investigation.
“Today’s sentence is fair and just punishment for Murray and his company’s abuse of pesticides in nursing homes, their fraud against their clients, and their concealment of crimes from state and federal investigators,” said Acting Assistant Attorney General Hirsch. “Companies must abide by the laws that protect the public from the harmful effects of improperly applied pesticides.”
“This case is particularly disturbing because of the defendants’ intentional disregard for the wellbeing of a vulnerable group of victims whose safety was entirely in the defendants’ hands,” said U.S. Attorney Moore. “This sentence is a just punishment for them and a stern warning to others who might be similarly tempted in the future.”“Today’s sentence highlights the importance of using pesticides in a safe and legal manner, especially around vulnerable populations,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Georgia. “The defendant exposed patients to harmful pesticides which jeopardizing their health and safety and tried to cover it up by submitting false reports. EPA and its partner agencies are committed to holding these kinds of dangerous actions accountable to the law.”
The case was prosecuted by Trial Attorneys Richard J. Powers and Adam Cullman of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, with assistance from the U.S. Attorney’s Office Middle District of Georgia. U.S. EPA-CID Region 4 in Atlanta conducted the investigation.
Questions concerning this case should be directed to Karen Moore, United States Attorney’s Office, at (478) 621-2606.
14 Area Defendants, Including 12 Felons, Charged with Illegally Possessing or Selling Firearms; More Than 100 Guns SeizedRead the Press Release
CHICAGO ― More than 100 assorted pistols, revolvers, rifles, and shotguns have been seized and 14 Chicago area defendants are facing federal firearms charges as a result of an investigation that ended yesterday and was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives. ATF agents, together with Chicago police and other state and local law enforcement partners, executed arrest and search warrants yesterday and seized 17 firearms from a residence in Gary, Ind. The investigation, which began in January, relied in part on three confidential informants, including one who posed as a broker for an individual who sold firearms overseas.
Nine defendants were arrested yesterday while three others were already in state custody. Nine separate criminal complaints were unsealed charging 12 defendants with being felons-in-possession of firearms, one with dealing firearms without a federal license, and one with illegal possession of a machine gun with an obliterated serial number. Those arrested yesterday remain in federal custody pending detention hearings, which Magistrate Judge Jeffrey Cole scheduled for Thursday and Friday in U.S. District Court.
This investigation is the culmination of ATF’s 2014 Firearms Trafficking and Violent Crime Strategy, also known as the “Chicago Initiative,” a four-month mission involving concentrated resources and efforts to attack violent crime associated with illegal firearms and narcotics. During the broader initiative, and including yesterday’s developments, ATF agents arrested 90 state and federal defendants, executed 25 search warrants, and seized more than 270 firearms, as well as seized more than four kilograms of marijuana, more than a kilogram of heroin, and nearly a kilogram each of powder cocaine and crack cocaine.
“This investigation, coupled with our enhanced efforts over the last four months, makes a difference by reducing the potential for violence that is associated with the illegal possession and sale of firearms,” said Carl J. Vasilko, Special Agent-in-Charge of ATF’s Chicago Field Division.
“Every gun we take out of the hands of individuals who allegedly possess and sell them illegally helps reduce the risk of violent crimes occurring with those weapons,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois.
Chicago Police Superintendent Garry McCarthy said: “You have heard me say it repeatedly and I will say it again, we have too many illegal guns flooding our streets. But every little bit helps, and certainly this mission and confiscating as many weapons as we did will keep our communities safer.”
The Illinois State Police, the Cook County Sheriff’s Department, the Lake County, Ind., Sheriff’s Department, and task force officers from the Indiana State Police, and the Gary, Ind., Police Department also assisted in the investigation.
According to the complaints, in March of this year, one of the confidential informants (CI-3) identified an individual known as “Batman,” who agents later identified as JOHN THOMAS, as one of CI-3’s sources of illegally obtained firearms. CI-3 and Thomas had previously agreed that CI-3 would pay Thomas approximately $100 for every handgun and $150 for every long gun purchase that Thomas arranged for CI-3. Thomas allegedly arranged firearms transactions between CI-3 and other defendants, including ANTHONY LOGAN, who in turn allegedly arranged additional firearms transactions between CI-3 and other defendants. CI-3 also allegedly purchased firearms directly from STEVE THOMAS and WESLEY PICKETT. During these controlled purchases with the defendants, CI-3 posed as a firearms broker for an individual who sold firearms overseas. The complaint affidavits together detail 45 firearms that CI-3 purchased during the investigation. All of those guns were among a total of 108 firearms that were purchased or seized during the investigation.
Details of the nine complaints follow:
JOHN THOMAS, aka “Batman,” 38, and DANIEL BINGMON, aka “Tiny,” 36, both of Chicago, were each charged with being a felon-in-possession of a 20-gauge shotgun. At the direction of ATF agents, CI-3 allegedly purchased a total of five firearms from Thomas and Bingmon on April 30 and May 8;
ANTHONY LOGAN, aka “Snake,” 29, of Chicago, was charged with being a felon-in-possession, and DANIEL JONES, 23, of Chicago, was charged with selling firearms without a federal license. Between April 10 and June 27, CI-3 allegedly purchased a total of 17 firearms, including six handguns and 11 long guns, from Logan and Jones;
LARRY McINTOSH, aka “Ten,” 38, of Gary, Ind., and CHARLES HAWKINS, 31, of Richton Park, were charged with being a felon-in-possession of various firearms. Between June 2 and July 2, McIntosh allegedly possessed nine firearms that he sold to CI-3, and Hawkins allegedly possessed three of those firearms that he delivered to CI-3 on McIntosh’s behalf;
TYRECE McCLINTON, 24, and RODEARL McELROY, 21, both of Chicago, were each charged with being a felon-in-possession of a firearm. McClinton, McElroy, and John Thomas allegedly sold a .38 caliber pistol to CI-3 on May 13;
TRAISON WATSON, 22, of Country Club Hills, was charged with illegally possessing and transferring a machine gun with an obliterated serial number. CI-3 allegedly purchased two firearms, including the machine gun and a 7.62 caliber rifle, from Watson and John Thomas on May 16. The machine gun had been modified from its original configuration as a 9 mm pistol making it capable of firing more than one shot with a single pull of the trigger, according to the complaint affidavit;
STEPHEN CARLOS, aka “Steve-O,” 26, of Chicago, was charged with being a felon-in-possession of a 12-gauge shotgun. CI-3 allegedly purchased a gun from Carlos and Logan on April 30, and two firearms from Carlos, Logan, and Jones on June 4;
STEVE THOMAS, 38, of Chicago, was charged with being a felon-in-possession of a firearm. Steve Thomas allegedly sold CI-3 four firearms between May 19 and July 8;
WESLEY PICKETT, 25, of Dolton, was charged with being a felon-in-possession of a firearm. Pickett allegedly sold CI-3 four firearms between March 20 and July 1; and
KENNETH SMITH, 30, and RICO SMITH, 38, both of Chicago, were each charged with being a felon-in-possession of a firearm. Both Smiths and Logan allegedly sold a .40 caliber pistol to CI-3 on May 20.
Being a felon-in-possession of a firearm carries a maximum sentence of 10 years in prison and a $250,000 fine. Dealing firearms without a federal license carries a maximum sentence of five years in prison and a $250,000 fine, and illegal possession of a machine gun with an obliterated serial number carries a maximum of 10 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorneys Nicole Kim and Lela Johnson.
Criminal complaints are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
26 August 2014
Williamsport Resident Charged with Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a criminal charge of health care fraud has have been filed against Ronald McAdams of Williamsport, Pennsylvania.
According to United States Attorney, Peter Smith, McAdams, age 57, is charged in a one-count felony Information with health care fraud based on submitting false claims to the Pennsylvania Attendant Care Medicaid Waiver Program. The Information alleges McAdams billed for and received reimbursement for attendant care services which were never performed.
The investigation is being conducted by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Pennsylvania Attorney General’s Medicaid Fraud Control Section. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is ten years imprisonment, and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Wayne County Woman Sentenced for Lying and Buying Guns for A Prohibited AssociateRead the Press Release
Huntington, W.Va. – A Wayne County woman was sentenced yesterday, to 12 months and 1 day in federal prison for her role in helping a convicted felon acquire five firearms from a Huntington pawn shop announced U.S. Attorney Booth Goodwin. Brittany Amanda Hewlett, 25, previously pleaded guilty in May of 2014 to making a false statement in acquisition of a firearm.
On February 26, 2014, Hewlett and an associate went to a Huntington pawn shop to buy five guns. Hewlett completed a federally required form, and claimed that she was buying the guns for herself when, in fact, the guns were for her associate. Hewlett had previously agreed to buy the guns, understanding that they would be given to the associate who was legally prohibited from buying or possessing guns. When Hewlett and the associate returned later to the pawn shop to finalize the gun purchase, an undercover federal agent was present and posed as the sales clerk.
The United States Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
Washington Man Admits to Distributing OxycodoneRead the Press Release
BOISE – Tyler Goodwin, 28, of Shelton, Washington, pleaded guilty yesterday in federal court to distributing oxycodone, U.S. Attorney Wendy J. Olson announced.
According to court documents, the defendant admitted to distributing approximately 100, 30 mg oxycodone pills from January 2014 to March 2014 in the Treasure Valley. Goodwin also agreed to forfeit $3,000 in cash proceeds.
The charge is punishable by up to 20 years in prison, three years of supervised release, and a $1,000,000 fine. Sentencing is set for November 12, 2014, before Chief U.S. District Court Judge B. Lynn Winmill.
Goodwin’s charges are part of Operation Candle Wax, which resulted both in the charges against Goodwin and the indictment of twelve other defendants. Trial for ten of those indicted is set for November 4, 2014, on charges of conspiracy to distribute oxycodone and heroin. The eleventh defendant is in custody in California and is awaiting his initial appearance. The twelfth defendant is a fugitive.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service; the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Virginia Man Sentenced to 16 Months in Prison for Pandering Woman He Lured to District of Columbia-Defendant Advertised Himself as Security for Fake Escort Business-Read the Press Release
WASHINGTON – John Burrell Crist, 44, was sentenced today to 16 months in prison after earlier pleading guilty to two felony counts of pandering for inducing and compelling a woman to engage in prostitution in various sections of the District of Columbia, U.S. Attorney Ronald C. Machen Jr. announced.
Crist, of Alexandria, Va., pled guilty in June 2014 in the Superior Court of the District of Columbia. He was sentenced by the Honorable John Ramsey Johnson. Upon completion of his prison term, Crist will be placed on three years of supervised release.
According to the government’s evidence, Crist posted ads on Backpage.com soliciting partners for his alleged escort business, promising to provide transportation and security for the dates in exchange for half of the profits. Enticed by one of these ads, the victim agreed to meet Crist. Crist picked the victim up from Union Station and housed her in his Alexandria home. Crist would screen the calls for “dates,” telling the victim, who was unfamiliar with the District of Columbia, where she could and could not agree to go for dates, to which he would then provide the transportation. The criminal activities began on April 20, 2014. Within days, Crist turned violent against the victim, beating her, taking all of her possessions, identification, and money as she was forced to continue to prostitute.
Crist came to the attention of the Metropolitan Police Department after he beat the victim in a public parking lot in the District of Columbia on April 28, 2014.
In announcing the sentence, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department. He also praised those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the matter.
14-183United States Files Lawsuit Against York County Man for Health Care FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a civil health care fraud lawsuit has been filed today against Kurt Bauer age 61, York, PA. The lawsuit alleges that Bauer, despite being excluded from participation in Medicare, was a manager and administrator of Leader Heights Healthcare, P.C., which caused the submission of thousands of false claims to Medicare.
According to U.S. Attorney Peter Smith, Leader Heights Healthcare, formerly ChiroCare Center, is a York County-based chiropractic and primary care provider that accepted Medicare patients. The complaint alleges that Bauer owned Leader Heights under its former name, but his chiropractic license was revoked by the Pennsylvania Department of State in 2008 for an inappropriate relationship with a patient, resulting in Bauer’s exclusion from Medicare. According to the complaint, the U.S. Department of Health and Human Services warned Bauer that he generally could no longer be employed and could not provide administrative and management services for a Medicare provider because of the exclusion.
Despite the warning and after falsely informing Medicare that he had “[r]etired,” Bauer allegedly retained ownership of Leader Heights Healthcare until 2009 and continued to be involved in the management and administration of Leader Heights until he learned of the government’s investigation in 2013. During this period of time, Leader Heights Healthcare allegedly submitted thousands of claims to Medicare for reimbursement for several million dollars. Between 2008 and 2013, Leader Heights received approximately $3 million from Medicare.
The government contends that, because of Bauer’s involvement in the management and administration of Leader Heights during his exclusion, Bauer knowingly caused the submission of false claims to Medicare that improperly sought reimbursement for the services he provided.
The government’s lawsuit is brought pursuant to the False Claims Act. Under the False Claims Act, a person that causes the submission of false or fraudulent claims to the government is liable for three times the government’s damages, plus civil penalties for each false claim. The claims asserted against Bauer are allegations only, and there has been no determination of liability.
This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General and the Health Care Fraud Unit of the U.S. Attorney’s Office. The case is assigned to Assistant U.S. Attorney Anthony Scicchitano of the U.S. Attorney’s Office’s Civil Division.
The lawsuit is captioned United States v. Kurt Bauer (M.D. Pa.).
Two Sentenced for Selling ExplosivesRead the Press Release
ERIE, Pa. - A resident of Bradford, Pennsylvania and a resident of Smethport, Pennsylvania, have been sentenced in federal court on their convictions of violating federal explosives laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed a sentence of 3 years probation and 6 months home detention on Jarred Douglas Major, 29, and 2 years probation on Rechelle Lea Judd, 32.
According to information presented to the court, Major and Judd distributed explosive materials to a person who was not a licensee.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Major and Judd.
Two Plead Guilty to Drug ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania and a former residence of Michigan, pleaded guilty in federal court to charges of violating federal drug laws, United States Attorney David J. Hickton announced today.
Chris Pomaville, 24 and Randall Keith Harries, 27, each pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that the defendants conspired to distribute and possessed with intent to distribute approximately 1.5 kilograms of methylone, also known as “Molly”, which was imported into the United States from China.
Judge Cercone scheduled sentencing for December 22, 2014. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Pending sentencing, the court continued Harries on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation that led to the prosecution of Pomaville and Harries.
Two More Individuals Plead Guilty in Credit Card SchemeRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Darius Cohn (34, Orlando) and Brenda Shoukry (64, Orlando) have pleaded guilty to access device fraud. Shoukry pleaded guilty today, while Cohn pleaded guilty on July 31, 2014. Each faces a maximum penalty of 15 years in federal prison. The sentencing hearing for Cohn is set for October 30, 2014. Shoukry is scheduled to be sentenced on December 17, 2014.
According to court documents, Cohn, Shoukry, and others engaged in a scheme to defraud several Central Florida area Sam’s Clubs stores and Wal-Mart stores through the fraudulent acquisition of duplicate Sam’s Club credit cards, and the subsequent use of those credit cards. A conspirator manufactured counterfeit identification documents of existing Sam’s Club customers. Conspirators who received those counterfeit identification documents, such as Shoukry, used them to obtain duplicate credit cards on existing accounts. Other conspirators, such as Cohn, obtained duplicate credit cards on the existing accounts, after being fraudulently added as users of those accounts. Cohn, Shoukry, and others then used those credit cards to make fraudulent purchases at area Sam’s Club and Wal-Mart stores. They also turned some of the cards over to another conspirator to do the same. The fraudulently-purchased items were then sold. The proceeds from those sales were divided amongst the conspirators. The total amount of actual loss suffered by the victims of this scheme is over $2 million. Of that amount, Cohn was involved in $127,329 in fraudulent transactions. Shoukry’s involvement included $67,207 in fraudulent transactions.
Two other participants in this scheme have already been sentenced. Sirrico Lewis (42, Orlando) is currently serving 8 years in federal prison and Reginald Holley is serving 2 years and 9 months in federal prison.
Two additional individuals have been charged for their alleged participation in this scheme. Santonio Meyers (45, Orlando) and Trevino Gray (39, Orlando) were charged by criminal complaint with access device fraud. Meyers had his initial appearance in the Southern District of Florida on August 25, 2014. Gray has not yet been arrested. If convicted, each faces up to 15 years in federal prison.
A criminal complaint is merely a charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the United States Secret Service. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
Two Men Charged with Defrauding Cleveland Credit Union Out of $1.9 MillionRead the Press Release
Two men from Northeast Ohio were charged with conspiring to defraud a Cleveland credit union out of nearly $1.9 million, law enforcement officials said.
Gary Chaney, 49, of Streetsboro, and Patrick Bruckman, 58, of Chester Township, were each charged with one count of conspiracy to commit theft or embezzlement from a credit union.
The charges were announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony and Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Bruckman and Chaney both maintained personal accounts at Taupa Lithuanian Credit Union, as well as a corporate account for Network Systems Engineering (NSE), a computer consulting firm they owned together, according to the information.
Bruckman, Chaney, credit union CEO Alex Spirikaitis and others conspired to defraud the credit union from at least 2007 through 2013. During that time, Bruckman and Chaney knowingly wrote checks drawn on their personal and corporate accounts for which there were insufficient funds, according to the criminal information.
Chaney withdrew approximately $241,000 from his personal account, Bruckman withdrew approximately $63,000 from his personal account and they collectively withdrew $1,582,000 from their corporate accounts for which there were insufficient funds, for a total loss to the credit union of $1,886,000, according to the information.
Chaney and Bruckman did not have sufficient funds in their accounts to cover the checks, and Spirikaitis allowed the overdrafts to clear the account. Chaney and Bruckman made minimal deposits to their accounts, which did not offset the large amount of funds which Spirikaitis transferred to their accounts at Taupa. At no time during the conspiracy did Chaney or Bruckman submit any credit applications or loan documentation for the money they received from Spirikaitis to cover their overdrafts, according to the information.
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last year and placed it into receivership due to its insolvency. Taupa, based in Cleveland, had about 1,150 members and assets of approximately $24 million, according to court records.
Spirikaitis, former teller Michael Ruksenas and Vytas Apanavicius have previously been found guilty for their roles in conspiracies related to defrauding the credit union.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation.
If convicted, the defendants’ sentences will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Troy Hill Man with Several Convictions Charged with Illegally Possessing GunRead the Press Release
PITTSBURGH – A former resident of Pittsburgh’s Troy Hill neighborhood has been indicted by a federal grand jury in Pittsburgh for violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment names Kia Jones, 35, of Pittsburgh, as the sole defendant.
According to the indictment, on Feb. 9, 2014, in the Western District of Pennsylvania, Jones possessed a firearm after having been convicted of several felony crimes. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm.
The law provides for a sentence of not less than 15 years’ incarceration, and up to life, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Katherine A. King and Craig W. Haller are prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Pittsburgh Bureau of Police, and the Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Toledo Man Sentenced to More Than 18 Years in Prison for Human TraffickingRead the Press Release
A Toledo man was sentenced to more than 18 years in prison sex trafficking involving a minor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Taurus Devault, 27, was sentenced to 224 months in prison by U.S. District Judge James Carr. Devault pleaded guilty last year to one count of sex trafficking of a minor and one count of conspiring to use a facility of interstate commerce (i.e. the internet and the telephone network) to promote a business enterprise involving prostitution.
Co-conspirator Duane Hill, 26 and also from Toledo, was sentenced to more than 16 years in prison earlier this year.
"These defendants made their profits using underage girls," Dettelbach. "We will continue to work with our partners to prosecute human trafficking cases in all their many forms."
"Protecting our nation's children is one of the highest priorities in the FBI," Anthony said. "No one should be able to pick up a phone or go online to purchase a child. People who traffic children for their own financial gain deserve - and are getting - the highest possible sentences the court can hand down. "
Devault and Hill conspired together in 2012 to offer underage girls for sale on the web site backpage.com to engage in commercial sex acts, according to court documents.
The investigating agency in this case is the Northwest Ohio Violent Crimes Against Children Task Force which consists of the Federal Bureau of Investigation, Toledo, Ohio, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, and the Bureau of Criminal Investigation. The case is being handled by Assistant United States Attorney Daniel Hurley.
Texas Business Executive Pleads Guilty to Illegally Selling Oxycodone on Silk RoadRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Matthew Jones, a/k/a “Caligirl,” “Dynamite2k,” “Dynamite`,” “Tyler Zeddai,” “Mateo Jones” (44, Dallas, Texas) today pleaded guilty to the illegal distribution of controlled substances. Jones faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement and court documents, while Jones was working as the Chief Technology Officer for a software consulting company in Dallas, he operated as the vendor “Caligirl” on the Silk Road drug marketplace. Between April 10, 2013 and September 9, 2013, Caligirl’s Silk Road account completed 685 finalized sales of controlled substances. Between July 11, 2013 and March 20, 2014, Drug Enforcement Administration (DEA) agents purchased and seized more than 400 Oxycodone tablets and more than 900 Hydrocodone tablets from Jones. Jones shipped the controlled substances from Texas to Central Florida.
When Jones was arrested, travelling back to the United States from Colombia, he was in possession of approximately 8,500 Oxycodone pills. The pills were concealed in vitamin bottles in his luggage. Simultaneous with his arrest, a federal search warrant was executed at Jones’ Texas residence. At his residence, agents recovered approximately $75,000 in cash, and seized a variety of controlled substances, including but not limited to Oxycodone, Hydrocodone, MDMA, methamphetamine, cocaine, and hashish. A drug lab was also located in the residence. In addition to operating on Silk Road, Jones conducted his illicit drug trafficking business utilizing an encrypted and anonymized peer-to-peer program.
This case was investigated by the Drug Enforcement Administration’s Orlando District Office, with assistance from the United States Postal Inspection Service in Dallas, Texas. It is being prosecuted by Assistant United States Attorney David Haas.
Tax Return Preparers Charged in Fraudulent Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald A. Cimino, Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Claudia Zuloaga, 43, and Sharon Elizabeth Angulo, 49, both of Miami, have been charged in a 32 count indictment with one count of conspiring to defraud the United States, in violation of Title 18, United States Code, Section 371, and 20 and 11 counts, respectively, of assisting in the preparation of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2).
If convicted, the defendants face a maximum of five years in prison on the conspiracy count and a maximum of three years in prison on each of the Title 26 counts.
According to the indictment, beginning in approximately September 2008 and continuing through September 2012, the defendants jointly operated a tax preparation business from offices located at 18710 SW 107th Avenue, Miami, Florida. The indictment further alleges that Zuloaga and Angulo recruited clients by falsely representing that they could eliminate a substantial portion of their debts by obtaining sizable tax refunds for them. As alleged in the indictment, this would be accomplished through false and fraudulent tax returns which the defendants would prepare for each client in exchange for fees usually amounting to 30percent of the tax refunds fraudulently obtained and totaled in excess of $250,000 from those clients who were successful in receiving fraudulently obtained refunds.
As further alleged in the indictment, the tax returns prepared by the defendants falsely set forth that certain financial institutions had withheld sizable amounts of tax from falsely declared interest income earned from these same financial institutions. Through this fraudulent mechanism, each return gave the false appearance of entitling the client to a significant tax refund due to over-withholding of tax payments in connection with their claimed interest earnings. In addition, the indictment alleges that, in order to provide false substantiation for these fraudulent tax refund claims, the defendants caused fictitious IRS Forms 1099-OID to be created which set forth the false interest and tax withholding amounts fraudulently reported upon their clients’ tax returns.
The indictment also alleges that Zuloaga and Angulo promoted the fictitious “redemption theory” to their clients as the purported justification for their fraudulent tax refund claims. Through this promotion, clients were falsely informed that the submission of tax returns in this manner allowed their clients to legitimately access large amounts of money allegedly contained in certain non-existent “straw man” accounts which the defendants claimed were being maintained by the United States Treasury for each individual who possessed a Social Security number.
As part of the conspiracy, Zuloaga and Angulo are also alleged to have engaged in various acts designed to prevent the IRS from investigating their fraudulent activities and collecting the repayment of any tax refunds falsely and fraudulently obtained. These acts included the submission of numerous false documents on behalf of both their clients and themselves which were designed to obstruct the IRS from taking investigative and enforcement actions against their clients and themselves.
Mr. Ferrer commended the investigative efforts of the IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Peter B. Outerbridge and the department’s Tax Division Trial Attorney Alexander Effendi
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tahlequah Man Pleads Guilty to Possession of Unregistered Firearm (Destructive Device)Read the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOBY TUCSON NORTHINGTON, age 34, of Tahlequah, Oklahoma, pled guilty to POSSESSION OF UNREGISTERED FIREARM (DESTRUCTIVE DEVICE), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871.
The charge is a result of an investigation by the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in July, 2014.
The Indictment alleged that on or about April 12, 2014, within the Eastern District of Oklahoma, the defendant did knowingly possess a destructive device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is up to 10 years imprisonment, and/or up to a $250,000.00 fine.
Assistant United States Attorney Chris Wilson represented the United States.
Spiro Woman Pleads Guilty to Conspiracy (Methamphetamine Distribution)Read the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DONNA JEAN SCHAFER, age 53, of Spiro, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Section 846 and 841(a)(1) and 841(b)(1)(A).
The charge is a result of an investigation by the District 16 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The defendant was indicted in March 2014.
The Indictment alleged that from in or about the beginning of 2011, the exact date being unknown to the Grand Jury, and continuing until on or about December 31, 2013, in the Eastern District of Oklahoma, and elsewhere, DONNA JEAN SCHAFER, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States, to wit: to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing and ordered the completion of a presentence and investigation report. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than 10 years imprisonment or more than life, and/or up to a $10,000,000 fine and mandatory supervised release of at least 5 years.
Assistant United States Attorney Shannon Henson represented the United States.
Secret Service Investigation Leads to Conspiracy and Counterfeiting ChargesRead the Press Release
PITTSBURGH – Three Pittsburgh-area residents and a New York City man have been indicted by a federal grand jury in Pittsburgh on conspiracy and counterfeiting charges, United States Attorney David J. Hickton announced today.
The six-count indictment charges John Viloria, 25, of Bronx, New York; Barry Robert Youger, Jr., 36, of Belle Vernon, Pa.; Cheryl Leigh Johnson, 36, of Charleroi, Pa.; and Eric Seighman, 31, of Belle Vernon, Pa., with conspiring to possess and pass counterfeit currency in the denomination of $100 dollars.
According to the indictment, Viloria obtained thousands of dollars of counterfeit Federal Reserve notes in the denomination of $100 dollars and transported the counterfeit Federal Reserve notes into the Western District of Pennsylvania. The indictment also charges that on numerous occasions, Youger, Johnson and Seighman passed and attempted to pass counterfeit Federal Reserve notes at various retail store locations in the Western District of Pennsylvania and received legitimate currency as change.
The law provides for a maximum total sentence for Viloria of 45 years in prison, a fine of $750,000 or both. The law provides for a maximum total sentence for Youger, Johnson and Seighman of 25 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rutland Man Imprisoned 5 Years for Heroin TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that today Evan Murphy, 23, of Rutland, was sentenced by Chief United States District Judge Christina Reiss to five years imprisonment on his guilty plea to a charge of conspiracy to distribute 100 grams or more of heroin. Chief Judge Reiss also ordered that Murphy serve four years on supervised release after his incarceration ends.
According to court documents, from January to November 2012 Murphy trafficked between 400 and 700 grams of heroin in the Rutland area. In July 2012, Murphy began selling heroin supplied by Joshua Rose, 21, Devon Cruz, 29, and Charles Hercules, 23, all of New York. During August, September and October 2012, the Vermont Drug Task Force (VDTF) used a confidential informant to make three controlled buys of heroin from Murphy in Rutland. In November 2012, Murphy was incarcerated for an unrelated state offense, ending his heroin sales.
On July 24, 2013, based on a joint investigation by the VDTF, the Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation (FBI), the grand jury returned an indictment charging Murphy, Rose, Cruz, Hercules, Alan H. Willis, II, 42, of Tinmouth, and Jean Marie Phillips, 47, of Rutland, with conspiracy to distribute 100 grams or more of heroin. All of the defendants have entered guilty pleas to the conspiracy charge, except Phillips, who pled guilty to aiding and abetting Rose=s possession with intent to distribute heroin. On April 28, 2014, Willis was sentenced to 37 months imprisonment. On May 9, 2014, Phillips was sentenced to 13 months imprisonment. Rose, Cruz, and Hercules are scheduled for sentencing over the next two months.
United States Attorney Tristram J. Coffin commended the joint investigation by the VDTF, DEA and FBI, and thanked the Vermont Attorney General's Office for its cooperation. Burlington attorney Doug Kallen represented Murphy. The case is being prosecuted by Assistant U.S. Attorney Craig S. Nolan.
Rapid City Man Sentenced for Hiring Alien WorkersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Continuing Unlawful Employment of Aliens was sentenced on August 15, 2014, by U.S. District Judge Karen E. Schreier.
Benjamin Munoz-Botello, age 49, was sentenced and ordered to pay a $3,000 fine and a $10 special assessment to the Federal Crime Victims Fund.
Between January 2008 and February 2010, while owner of the El Ranchito Mexican Restaurant, Munoz-Botello knowingly employed illegal aliens to work at the restaurant.
The investigation was conducted by U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI), in cooperation with the U.S. Forest Service, Rapid City Police Department, Pennington County Sheriff's Office, and other federal and state law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Providence Man Detained on Sex Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Kemont Bowie, 34, of Providence, was ordered detained in federal custody today by U.S. District Court Magistrate Judge Patricia A. Sullivan on sex trafficking charges, for allegedly trafficking a 17-year-old girl from the Boston area to Rhode Island for the purposes of commercial sexual activity, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI; Pawtucket Police Chief Paul King and Central Falls Police Chief James J. Mendonca.
According to an affidavit in support of a criminal complaint and arrest warrant filed with the court, the victim was allegedly taken against her will from South Station in Boston in the early morning hours of August 18, 2014, and driven to Rhode Island for the purposes of being trafficked for commercial sexual activity. According to the victim, she was driven to the same residence where she was located yesterday and rescued by FBI agents, Pawtucket and Central Falls Police.
According to the affidavit, on Monday, the victim contacted an individual at a residence she resided at in Arlington, Massachusetts, requesting assistance. The Arlington Police Department and the FBI were contacted, which subsequently led to the FBI, along with Pawtucket Police and Central Falls Police rescuing the victim from a Pawtucket residence and the arrest of the defendant.
Bowie is charged in a federal criminal complaint with one count each of sex trafficking of a child and transportation of a minor. A preliminary hearing on this matter has been scheduled for September 2, 2014.A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.The FBI, Pawtucket Police and Central Falls Police are being assisted in the investigation of this matter by the Rhode Island State Police. The U.S. Attorney’s Office is working in conjunction with the Rhode Island Department of Attorney General in the prosecution of this matter.
U.S. Attorney Peter F. Neronha and the law enforcement agencies involved in the rescue of the alleged victim wish to acknowledge Day One in Providence for their quick response and services provided to the young woman.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Port St. Lucie Broker Sentenced to 87 Months in Prison in Wire Fraud Embezzlement SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Danny Banks, Special Agent in Charge, Orlando Regional Operations Center, Florida Department of Law Enforcement (FDLE), announce that Paul Elvidge, 54, of Port Saint Lucie, was sentenced by U.S. District Judge Jose E. Martinez to 87 months in prison, followed by three years supervised release, and ordered to pay restitution in the amount of $1,289,878 for embezzling from client investment accounts while acting as a securities broker for Cape Securities, Inc. (Cape Securities) and Seacoast Investor Services, Inc. (Seacoast).
Specifically, Elvidge was sentenced to 63 months in prison for eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343, followed by a consecutive 24 months on the aggravated identity theft count, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Elvidge, formerly a registered representative and stockbroker with Cape Securities and Seacoast from 2010 to 2012, did willfully and knowingly obtain money fraudulently by authorizing numerous wire transfers from his clients’ brokerage accounts to his own personal bank and brokerage accounts.
To carry out the fraud, Elvidge prepared fraudulent letters of authorization directing that funds be transferred from a client’s account to his own Seacoast brokerage or his PNC bank account. He would then forge the client’s signature on the letter of authorization to make it appear that the transfer was authorized by the account holder. Thereafter, he would fax the fraudulent letter of authorization to Cape Securities’ main office in Georgia, or – when he operated as Seacoast – to Pershing LLC, which was the clearing house used to conduct Seacoast transactions. Once the money was transferred to his accounts, he used the money to pay his personal and business expenses, and to conduct day trades through a personal account he had at AMP Global Clearing.
Mr. Ferrer commended the investigative efforts of the FBI and FDLE. This case was prosecuted by former Assistant U.S. Attorney Shaniek Maynard.
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.
Pipe Bomb Crafted from Vehicle Airbag Gets Birmingham Man 10 Years in Federal PrisonRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Birmingham man to 10 years in prison for possessing a pipe bomb crafted from a vehicle airbag canister, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Glenn Anderson.
A jury in March convicted JAMES DAVID KIRCUS, 55, on one count of knowingly possessing an unregistered destructive device. U.S. District Judge David Proctor sentenced Kircus on that charge. Kircus has remained in custody since the conviction.
"Improvised explosive devices can maim and kill. They are illegal," Vance said. "Mr. Kircus was working at an auto salvage business in Birmingham when he took a vehicle airbag, broke it down and reconfigured it into a dangerous weapon containing a high-powered explosive. This was a serious crime met today with serious punishment," she said.
"ATF's Frontline model of reducing violent crime, along with the collaborative efforts of our local partners, led to the success of this investigation," Anderson said.Airbag cylinders contain sodium azide, a chemical that when ignited in a crash, quickly creates a gas to inflate the bag. According to evidence at trial, Kircus took the sodium azide tablets out of the airbag cylinders and crushed them to enhance their explosive power, then placed the crushed material back into the cylinders.
Employees at the salvage company called police after discovering what they thought were bombs in Kircus' toolbox. One airbag cylinder had been fully transformed into a bomb, another was in process and other unmodified cylinders were found, according to testimony.
At the time of the incident in August 2013, Kircus was living at Keeton Corrections, a half-way house in Birmingham for federal prisoners. Kircus was nearing the end of a seven-year and three-month sentence for his guilty plea related to making pipe bombs and possession of firearms by a convicted felon, according to trial evidence.
ATF investigated the case, which Special Assistant U.S. Attorney E. Wilson Hunter prosecuted.
Palm Coast Man Indicted for Receiving and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Timothy Edward McDermott (age 60, Palm Coast) was indicted by a federal grand jury on two counts of receiving child pornography over the internet and one count of possessing child pornography. If convicted, McDermott faces a minimum mandatory sentence of not less than 5 years and up to 20 years’ imprisonment, a $250,000 fine, and a potential life term of supervised release for each of the receipt counts. For the possession count, McDermott faces a maximum term of 10 years’ imprisonment, a $250,000 fine, and a potential life term of supervised release. McDermott was arrested on August 25, 2014 at his residence in Palm Coast.
This case was investigated by the Federal Bureau of Investigation in Dallas, Daytona Beach and Jacksonville, the Flagler County Sheriff’s Office, and the Wheaton (Illinois) Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
Owner of Home Health Care Company Sentenced to Nearly Six Years in Prison for Role in $6 Million Medicare Fraud SchemeRead the Press Release
A co-owner of Professional Medical Home Health LLC was sentenced today to serve 70 months in prison and ordered to pay $6.2 million in restitution for her participation in a health care fraud scheme involving the now defunct home health care company .
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Reginald France of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement. U.S. District Judge Federico A. Moreno of the Southern District of Florida imposed the sentence.
According to court documents, Annarella Garcia, 44, of Hialeah, Florida, was a co-owner of Professional Medical Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Between December 2008 and February 2014, Garcia and others engaged in a scheme to bill the Medicare Program for expensive physical therapy and home health care services that were not medically necessary or were not provided. During that time, Professional Medical Home Health was paid approximately $6.25 million by Medicare for the fraudulent claims.
Specifically, Garcia and her co-conspirators paid kickbacks and bribes to patient recruiters in return for their providing patients to Professional Medical Home Health for home health and therapy services that were not medically necessary or were not provided. In furtherance of the scheme, Garcia and her co-conspirators falsified patient documentation to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for such services and did not receive such services.
Garcia pleaded guilty to conspiracy to commit health care fraud on June 25, 2014.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Owner of Home Health Care Company Sentenced to Nearly Six Years in Prison for Role in $6 Million Medicare Fraud SchemeRead the Press Release
A co-owner of Professional Medical Home Health LLC was sentenced today to serve 70 months in prison and ordered to pay $6.2 million in restitution for her participation in a health care fraud scheme involving the now defunct home health care company.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Reginald France of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement. U.S. District Judge Federico A. Moreno of the Southern District of Florida imposed the sentence.
According to court documents, Annarella Garcia, 44, of Hialeah, Florida, was a co-owner of Professional Medical Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Between December 2008 and February 2014, Garcia and others engaged in a scheme to bill the Medicare Program for expensive physical therapy and home health care services that were not medically necessary or were not provided. During that time, Professional Medical Home Health was paid approximately $6.25 million by Medicare for the fraudulent claims.
Specifically, Garcia and her co-conspirators paid kickbacks and bribes to patient recruiters in return for their providing patients to Professional Medical Home Health for home health and therapy services that were not medically necessary or were not provided. In furtherance of the scheme, Garcia and her co-conspirators falsified patient documentation to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for such services and did not receive such services.
Garcia pleaded guilty to conspiracy to commit health care fraud on June 25, 2014.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
New Jersey Man Indicted in Connection with Asbestos RemovalRead the Press Release
PHILADELPHIA - Ronen Bakshi, 53, of Voorhees, New Jersey, was charged today by indictment in connection with the removal of asbestos-containing material from a former church located at 1133 Spring Garden St., in Philadelphia, announced United States Attorney Zane David Memeger. Bakshi is charged with one count of falsifying records to obstruct or impede the investigation of a matter within the jurisdiction of the United States Environmental Protection Agency and one count of wire fraud.
According to the indictment, on or about April 23, 2009, Bakshi submitted a bill to his client, Siloam, via e-mail covering his charges for March 9 through April 23, 2009. The bill totaled $34,910, and included charges for time that Bakshi claimed that he or his employees had performed asbestos project inspector duties at the Church, including taking air samples. According to the indictment, Bakshi made up log book entries and sampling data to correspond with the bill, making it appear that Bakshi had worked at the Church on those days monitoring the work of the asbestos abatement contractor when he knew that neither he nor his employees had been present.
If convicted of all charges, Bakshi faces a maximum possible statutory sentence of 40 years in prison, a fine of up to $500,000, and possible restitution.
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, with assistance from the City of Philadelphia’s Air Management Services office. The case is being prosecuted by Special Assistant United States Attorneys Martin Harrell and Patricia C. Miller from EPA.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Nevada Prosecutor and Homeland Security Investigations Special Agent Receive Awards for Their Work on Cybercrime CaseRead the Press Release
LAS VEGAS, Nev. – Assistant United States Attorney (AUSA) Kimberly Frayn of the U.S. Attorney’s Office for the District of Nevada and Special Agent Michael P. Adams of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Las Vegas, received awards today in Phoenix, Ariz., from the International Association of Financial Crimes Investigators for the investigation and prosecution of members of a highly sophisticated international cybercrime organization known as “Carder.su,” announced Daniel G. Bogden, United States Attorney for the District of Nevada and Michael Harris, Assistant Special Agent in Charge for HSI Las Vegas.
AUSA Frayn received the William D. Neumann Prosecutor of the Year Award for her efforts as the primary prosecutor in the Nevada case, known as, “Operation Open Market.” The Award acknowledges prosecutors who have shown exceptional diligence, cooperation and tenacity, and who have made significant contributions to financial fraud prevention.
Special Agent Adams received the Cyber Investigations Contributor of the Year award for his efforts as the case agent in Operation Open Market. The Award acknowledges Agent Adams’ cyber investigative skills which significantly aided in the apprehension, arrest and prosecution of the suspects.
“It pleases me that AUSA Frayn and Special Agent Adams have been recognized by an international association for their superior work and efforts in fighting financial fraud,” said U.S. Attorney Bogden. “The investigation and prosecution of a cybercrime case requires special skills and expertise, as well as diligence and tenaciousness of character. AUSA Frayn and Special Agent Adams have all of those qualities combined, which has led to successful court cases and convictions.”
“These awards are richly deserved and reflect the extraordinary amount of work both the agent and prosecutor invested in this complex and far-reaching case,” said Assistant Special Agent in Charge Michael Harris. “There’s no question their collaborative efforts are in large measure responsible for the successful outcome of this investigation. For prosecutors and investigators, seeing career criminals like the defendants in this case brought to justice is its own reward, but having those efforts recognized in such a public way makes the outcome even more gratifying.”
Special Agent Adams assumed the identity as a member of the Carder.su organization when it was in its infancy. The investigation determined that its members or “carders,” were involved in large scale trafficking of compromised credit card account data and counterfeit identifications and credit cards, as well as money laundering, narcotics trafficking, and various types of computer crime. The organization operated an internet web portal called a forum, where members could purchase the illicitly obtained data and share knowledge of various fraud schemes. A second forum was also created to vet incoming new members. The forums were generally hosted within the former Soviet Union and the upper echelon of the organization resides within the former Soviet Union. It was estimated that in July 2011, there were over 5,500 members of the organization. Members of the organization had different roles, including moderators who directed other members in carrying out activities; reviewers who examined and tested products, services, and contraband; vendors who advertised and sold products, services and contraband; and members. Members were required to successfully complete a number of security features designed to protect the organization from infiltration by law enforcement or members of rival criminal organizations.
Operation Open Market resulted in federal criminal charges against 56 individuals. The defendants are charged with conspiracy to participate in a racketeer influenced corrupt organization, trafficking in compromised credit card account data and counterfeit identifications, money laundering, narcotics trafficking, and computer crimes. To date, 25 individuals have been convicted, and the rest are either fugitives or are pending trial in Las Vegas.
The International Association of Financial Crimes Investigators (IAFCI) is a non-profit organization with over 4,000 members whose mission is to identify and prevent financial crimes utilizing new technologies and investigative techniques. The Association has 40 Chapters worldwide.Nampa Man Pleads Guilty to Drug CrimeRead the Press Release
BOISE – Lawrence Joseph Kren, 64, of Nampa, Idaho, pleaded guilty yesterday in federal court to distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Kren was indicted by a federal grand jury in Boise on April 8, 2014, charged with three counts of distributing methamphetamine.
According to information presented in court, Kren admitted to selling methamphetamine to another person, who was assisting law enforcement as a confidential informant. Kren admitted that he sold methamphetamine to the informant on three separate occasions in February and March 2014. Kren also admitted that he possessed firearms in connection with the drug distribution offense and that he showed the firearms to the informant.
The charge is punishable by up to twenty years in prison, a maximum fine of $1 million, and at least three years of supervised release. The government is seeking forfeiture of the firearms. Kren is scheduled for sentencing on November 12, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Nampa Police Department and Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Muskogee Man Sentenced to 15 Months for Failure to Register as Sex OffenderRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that PAUL EVERETT KILLMAN, age 50, of Muskogee, Oklahoma, was sentenced to 15 months imprisonment, followed by 5 years of supervised release for Failure to Register as Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(A) and 2250(a)(3).
Charges arose from an investigation by the United States Marshal Service. The defendant was indicted in March, 2014.
The Indictment alleged that from in or about December 2011, until on or about March 5, 2014, in the Eastern District of Oklahoma, and elsewhere, PAUL EVERETT KILLMAN, defendant herein, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having been Court-Martialed and convicted of felonies by the United States of America Air Force on or about February 10, 1997, for two counts of Committing Indecent Acts, two counts of Indecent Liberties, one count of Indecent Acts with Another, one count of Receipt of Child Pornography and one count of Possession of Child Pornography, did knowingly fail to update his registration as required by the Sex Offender Registration and Notification Act.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Mission Man Sentenced for Misprision of A FelonyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Misprision of a Felony was sentenced on August 11, 2014, by U.S. District Judge Roberto A. Lange.
Na’pe Young, age 34, was sentenced to 15 months in custody, 1 year of supervised release, $1,135.80 in restitution to the Rosebud Elderly Affairs Program, and a $100 special assessment to the Federal Crime Victims Fund.
Young was indicted for First Degree Burglary, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury by a federal grand jury on March 11, 2014. He pled guilty to a Superseding Information charging him with Misprision of a Felony on May 29, 2014.
The conviction stems from an incident that took place on July 2, 2013, when two men walked to the home of the victim. After a verbal altercation started, one of the men struck the victim on the head and in the face with his fists. Young was present during the assault. After the assault was over, Young concealed it from tribal and federal law enforcement officers and did not report the assault to a judge or other person in civil authority under the United States.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher prosecuted the case.
Young was immediately turned over to the custody of the U.S. Marshals Service.
Michigan Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bessimer, Michigan, man charged with Failure to Pay Child Support pled guilty and was sentenced on August 11, 2014, by U.S. District Judge Roberto A. Lange.
Daryl Ready, a/k/a Nick D. Ready, age 55, was sentenced to 5 years of probation, ordered to pay $29,900.59 in restitution and a $100 special assessment to the Federal Crime Victims Fund.
Ready was indicted by a federal grand jury on September 10, 2013.
The conviction stems from Ready’s failure to pay child support from about July 1, 2009 through May 2014.
This case was investigated by the Department of Health and Human Services. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Insider Trading Charges Against Director of Market Intelligence at Investor Relations FirmRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that MICHAEL A. LUCARELLI, the Director of Market Intelligence at Lippert/Heilshorn & Associates, Inc. (“LHA”), an investor relations firm, was arrested this morning on 13 counts of insider trading. LUCARELLI is expected to be presented today in Manhattan federal court before United States Magistrate Judge James L. Cott.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, and despite the well-known parade of convicted insider trading perpetrators over the past several years, Michael Lucarelli was not deterred and violated both his company’s policies and his responsibility to its clients by trading on material nonpublic information for his personal financial gain. For the over $500,000 he earned from his illicit trades he is charged with 13 counts of securities fraud.”
FBI Assistant Director-in-Charge George Venizelos said: “Instead of doing his job, Lucarelli spent his days setting up brokerage accounts to make illegal trades using inside information from unwitting clients. He violated the responsibility he had to both company and clients. He also broke the law and today finds himself under arrest and charged in a thirteen count complaint.”
According to the Complaint unsealed in Manhattan federal court:
From at least August 2013 through at least August 2014, LUCARELLI engaged in an insider trading scheme to use and trade upon material non-public information that he acquired during his employment at LHA, an investor relations firm based in Manhattan. Specifically, LUCARELLI, as an LHA employee, had access to working drafts of press releases prepared by LHA for its clients prior to their issuance to the investing public. Those draft press releases contained material, non-public information about business events and announcements relating to LHA’s clients.
In violation of LHA’s policies and in breach of his duties to LHA and its clients, on multiple occasions, LUCARELLI took positions in the stock of LHA clients shortly before the announcement by these companies of material information through press releases prepared by LHA. Shortly following the issuance of the press releases drafted by LHA, LUCARELLI exited the positions in these securities that he had acquired prior to the issuance, thereby profiting on the movement in the stock price.
LUCARELLI repeatedly traded in LHA client securities despite LHA’s written code of conduct, which strictly prohibited LHA employees from trading in any security issued by an LHA client. LUCARELLI carried out his scheme in at least four different brokerage accounts. When opening new brokerage accounts through which to conduct his illegal trades, LUCARELLI did not reveal his affiliation with LHA. And, on two occasions, LUCARELLI opened new brokerage accounts soon after his ability to trade in other accounts had been suspended by the respective brokerage firms.
On or about July 24, 2014, the FBI obtained a search warrant to search LUCARELLI’s office at LHA for evidence of his insider trading activities. During that search, which was conducted without LUCARELLI’s knowledge, the FBI located a locked briefcase which, when opened, contained a draft press release for LHA client, TREX Company (“TREX”). That press release was marked “DRAFT” and contained TREX’s second fiscal quarter 2014 financial results. The following day, after the FBI completed the search, LUCARELLI started purchasing shares of TREX. Between July 25, 2014 and August 1, 2014, LUCARELLI took a net position of 37,400 shares of TREX. Then, on August 4, 2014, shortly before the market opened, TREX issued a press release announcing its second fiscal quarter 2014 financial results. Among other things, TREX announced that sales and earnings before taxes had increased 23 percent and 62 percent, respectively, in comparison with the comparable period in 2013. TREX also issued revenue guidance for the third fiscal quarter of 2014, which was a 27 percent increase over the comparable period in 2013. Within two hours of the announcement, LUCARELLI sold 35,058 of the 37,400 TREX shares he previously purchased. Those sales yielded a profit of almost $90,000.
As a result of the 13 instances of insider trading alleged in the Complaint, LUCARELLI earned at least $538,215.32 in illicit proceeds. Furthermore, the FBI has discovered numerous additional trades that LUCARELLI conducted in LHA client securities and that exhibit a similar pattern of fraud. The FBI’s investigation is ongoing.
LUCARELLI is charged with 13 counts of securities fraud. The securities fraud counts each carry a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and thanked the SEC, which has filed civil charges in a separate action.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais and Damian Williams are in charge of the prosecution. Assistant U.S. Attorney Carolina Fornos of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture of assets.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Michael Lucarelli Complaint
Louisiana Psychiatrist and Five Others Sentenced in $258 Million Medicare Fraud SchemeRead the Press Release
BATON ROUGE, LA – A Louisiana psychiatrist was sentenced in federal court in Baton Rouge yesterday to serve 86 months in prison for his role in a $258.5 million Medicare fraud scheme involving partial hospitalization psychiatric services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division and Louisiana State Attorney General James Buddy Caldwell made the announcement.
ZAHID IMRAN, M.D., 56, of Baton Rouge, pleaded guilty on May 13, 2014, to count one in a superseding indictment charging him with conspiracy to commit health care fraud. In addition to his prison term, IMRAN was sentenced to serve two years of supervised release and ordered to pay $23.8 million in restitution, jointly and severally with his conspirators. IMRAN will also be ordered to forfeit an additional $23.8 million as illegal proceeds of the fraudulent scheme.
According to documents filed in the case, in 2011 law enforcement opened an investigation into three community mental health centers – Shifa Community Mental Health Center of Baton Rouge (Shifa), Serenity Center of Baton Rouge (Serenity) and Shifa Community Mental Health Center of Texas (Shifa Texas) – and has resulted in 17 convictions of individuals employed by the facilities, including therapists, marketers, administrators, owners and the medical director. The companies billed Medicare for partial hospitalization program services for the mentally ill that were unnecessary or never provided over a period of approximately seven years. The companies, collectively, submitted more than $258 million in claims to Medicare for partial hospitalization program services during this period. Medicare paid approximately $43.5 million on those claims.
IMRAN served as Shifa’s medical director and co-owner of Serenity Center and Shifa Texas. As part of the scheme, IMRAN would admit mentally ill patients to the facilities, some of whom were inappropriate for partial hospitalization. IMRAN would then re-certify these patients’ appropriateness for the program, in an effort to continue to bill Medicare for services. To support the fraudulent Medicare billing, IMRAN and others would falsify patient treatment records to reflect services on dates where no such services were provided.
IMRAN’s lengthy sentence follows the sentences imposed last week on five other defendants in the case, including several recreational therapists and an office administrator. Last week, Chief U.S. District Court Judge Brian A. Jackson sentenced the individuals as follows:
• SEDRA J. SIGNATER, age 48, of Baton Rouge, Louisiana. According to court documents, from 2008 forward, SIGNATER worked as an administrator at Shifa. On numerous occasions, SIGNATER would falsify documents, including patient records, group progress notes, and other medical documentation, to make it appear as though Shifa social workers had provided services and/or treatments to patients, despite the fact that the treatments had not been provided. On August 21, 2014, SIGNATER was sentenced to 3-year term of imprisonment, a 2-year term of supervised release following his release from imprisonment, and restitution in the amount of $23.8 million.
• ROBERT E. BOOKER, age 35, JUNE M. DURIO, age 50, JAMES J. MYER, age 42, and NANCY N. REED, age 45, all of Baton Rouge. At the direction of their supervisors, BOOKER, DURIO, MYER, and REED knowingly participated in the falsification of documents, including patient records, group progress notes, and other medical documentation, so that their supervisors could use the false documents to support false claims to Medicare. On August 22, 2014, each defendant was sentenced to serve a 2-year term of probation.
The case is being investigated by HHS-OIG, the FBI and the Medicaid Fraud Control Unit of the Louisiana Attorney General’s Office, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shubhra Shivpuri of the Middle District of Louisiana.
U.S. Attorney Green stated: “This case illustrates the enormity of this country’s healthcare fraud epidemic which is estimated to cause tens of billions of dollars in financial losses each year. In addition to financial losses, such fraud exposes patients to unnecessary medical treatments and compromises the integrity of their medical records by falsifying their medical status, treatments, and other important information. My great appreciation to the prosecutors and agents who worked tirelessly on this important matter. We will continue to devote the necessary resources to track down and aggressively pursue those who engage in health care fraud.”
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Las Cruces Man was Sentenced to Seventy-Eight Months for Violating Federal Drug and Fireram LawsRead the Press Release
ALBUQUERQUE – John Wade Crist, 57, of Las Cruces, N.M., was sentenced this morning in Las Cruces federal court for his conviction on methamphetamine trafficking and firearms charges. Crist will serve a 78-month prison sentence that will be followed by four years of supervised release.
Crist was arrested on Nov. 15, 2013, and a two-count indictment charging him with distribution of methamphetamine and being a felon in possession of a firearm. According to the indictment, Crist distributed methamphetamine and possessed a firearm in Doña Ana County, N.M., on June 19, 2013. At the time, Crist was prohibited from possessing firearms or ammunition because he previously had been convicted of two narcotics trafficking offenses.
On May 7, 2014, Crist entered a guilty plea to the indictment. In his plea agreement, Crist admitted selling 23.3 grams of methamphetamine to an undercover officer who was posing as a drug dealer on June 19, 2013, in Doña Ana County. Crist also admitted that on that same date, he possessed a shotgun and sold the firearm to the undercover officer.
This case was investigated by the Las Cruces office of the FBI and was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Lansdowne Man Charged with CounterfeitingRead the Press Release
Keith Scutching, 35, Lansdowne, PA, was charged by indictment, unsealed yesterday, with two counts of dealing in counterfeit currency, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 40 years in prison, a three-year period of supervised release, a $500,000 fine, a $200 special assessment, and the imposition of full restitution.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525KCK Man Indicted for Crashing into Barrier at Lake City Army Ammunition PlantRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was indicted by a federal grand jury today for ramming a stolen car into the checkpoint barrier at the Lake City Army Ammunition Plant.
Eric Keith Mendoza, 41, of Kansas City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Mendoza on Aug. 7, 2014.
Today’s indictment alleges that Mendoza damaged the barrier when he accelerated through the checkpoint at the Lake City Army Ammunition Plant on Aug. 7, 2014. Mendoza is also charged with entering the plant without authorization and with transporting a stolen vehicle across the state line from Kansas to Missouri.
According to an affidavit filed in support of the original criminal complaint, Mendoza was driving a stolen 1997 Cadillac Deville when he arrived at the Lake City installation’s primary entry gate. His identification was requested, the affidavit says, but Mendoza accelerated at a high rate of speed through the checkpoint onto the installation. Per standard operating procedure, security personnel activated the final denial barrier, which consists of an in-ground steel plate barrier which is activated in an emergency situation. The barrier rises out of the ground in order to stop an oncoming vehicle from gaining access to the installation. Prior to the barrier are two speed mitigation “humps” in the roadway to slow approaching vehicles. The barrier is equipped with signage and red lights which illuminate upon activation, allowing vehicles the opportunity to stop prior to impacting it.
Mendoza’s vehicle struck the barrier, rendering the vehicle inoperable and causing moderate damage to the barrier. Damage to the barrier is estimated up to $20,000.
Mendoza fled the accident scene on foot, the affidavit says, travelling southbound on the installation. The Independence, Mo., Police Department K-9 unit provided assistance and located Mendoza adjacent to an inner fence where he was apprehended without further incident.
According to the affidavit, during inventory of the vehicle prior to it being towed from the scene, three clear plastic bags containing a “user quantity” of a white crystalline substance were recovered from underneath the front edge of the driver’s seat. Mendoza told officers he had smoked methamphetamine the day before.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the Department of the Army, the Independence, Mo., Police Department, the FBI and the Jackson County, Mo., Sheriff’s Department.KC Man Indicted for Laser StrikeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for aiming his laser pointer at a Kansas City, Mo, Police Department helicopter.
Jordon Clarence Rogers, 24, of Kansas City, was charged in an indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Rogers aimed the beam of a laser pointer at a Kansas City, Mo., Police Department helicopter on Oct. 8, 2013.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Casey. It was investigated by the FBI.KC Man Indicted for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for robbing Bank of America.
Lorene Harris, 54, of Kansas City, Mo., was charged with bank robbery in an indictment returned by a federal grand jury in Kansas City. Today’s indictment replaces a federal criminal complaint that was filed against Harris on Aug. 6, 2014.
The indictment alleges that Harris stole $3,000 from Bank of America, 6320 Prospect Ave., Kansas City, on Aug. 4, 2014.
According to an affidavit filed in support of the original criminal complaint, Harris cut in front of everyone in line and told a teller to “give me the money.” The teller asked Harris if this was a robbery and he allegedly responded that he was robbing the bank. The teller asked if he had a “note or something,” the affidavit says, and Harris told the teller he could write a note. Harris requested a piece of paper, according to the affidavit, then passed the note and asked for the money. However, when the teller put about $5,000 dollars on the counter, Harris allegedly told her to give him less. The teller took approximately $2,000 back and Harris allegedly took the remaining money.
Harris then asked what he should do next, the affidavit says. He indicated he would wait outside; however; he fled from the bank on foot.
Harris was identified after bank surveillance photos appeared on the news. The following day, Harris was arrested by Raytown, Mo., police officers who were dispatched with paramedics to a convenience store. According to the indictment, Harris, who was complaining of chest pains, told officers he robbed Bank of America the day before.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the FBI and the Kansas City, Mo., Police Department.KC Man Charged with Craigslist Robberies, ShootingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been charged in federal court for his role in a conspiracy to commit armed robberies against victims who were contacted via craigslist.
Debvon Buckner, 23, of Kansas City, was charged in a three-count criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Aug. 20, 2014. Buckner had his initial court appearance today.
The federal criminal complaint alleges that Buckner participated in a conspiracy with others to commit robberies of several individuals by posting false advertisements on craigslist between June 30 and July 17, 2014. In addition to the conspiracy, Buckner is charged with one count of armed robbery, which he allegedly committed by falsely posting a motor vehicle for sale on craigslist in order to arrange a meeting with three victims on July 16, 2014. Buckner is also charged with one count of discharging a firearm during a crime of violence (the armed robbery on July 16, 2014).
According to an affidavit filed in support of the federal criminal complaint, Buckner was involved in five robberies in which craigslist ads were used to lure victims, who were robbed at gunpoint by Buckner’s co-conspirators, who have not been charged and are not identified in the court documents.
July 16, 2014, Armed Robberies
On the evening of July 16, 2014, the affidavit says, three victims met Buckner at 5500 E. 84th Terrace, Kansas City, Mo., to look at a Hyundai Sonata that was listed for sale in a craigslist advertisement. Two of the victims took a test drive in the vehicle with Buckner, the affidavit says, and one of them made a purchase offer. Buckner allegedly agreed, but stated he needed to call his wife about the purchase and walked away. As he walked away, the affidavit says, two other men with handguns approached the two victims and asked for money. The victims tried to return to their car when the two men shot them. The men took one victim’s purse, which contained $500. They jumped into the Sonata with Buckner and fled the area. One of the victims was transported to a local hospital for life-threatening injuries from multiple gunshot wounds.
According to the affidavit, the telephone number used to contact the victims was the same number used to contact a separate victim in another armed robbery earlier the same day.
On the afternoon of July 16, 2014, this victim (identified as Victim#4 in the affidavit) told police that he had listed an XBOX One for sale on craigslist. He arranged to meet a prospective buyer at Ridge Pointe Apartments in Kansas City, Mo. When he arrived, the affidavit said, Buckner approached him and asked to see the XBOX. The victim handed the XBOX to Buckner. Two other men then came up behind Buckner, the affidavit says. One of those men lifted his shirt, pulled out a black semi-automatic handgun and stated, “Give me the connections.” The other approaching male also had a gun. Victim #4 then gave the men the XBOX accessory cords, two remote controllers, and two video games. The three men then fled the area on foot.
The next day, Kansas City Police detectives saw another craigslist advertisement for a car for sale that used the same telephone number. In the background of the photograph was a residence, which the detectives later identified as Buckner’s residence. They obtained location data for the cell phone and set up surveillance in the area of East US 40 Highway and Sterling. When Buckner boarded a metro bus, police officers took him into custody.
In addition to the two robberies on July 16, 2014, victims from three earlier robberies also identified Buckner.
June 30, 2014, Armed Robbery
One victim met Buckner on June 30, 2014, to purchase a cell phone that was advertised on craigslist, the affidavit says. She decided not to purchase the phone and began to walk away, according to the affidavit, when two other men approached her, pointed guns at her and told her to give them money. She gave the men $100. They then demanded her car keys, cellphone and purse. She pressed the panic button on her car keys and the alarm sounded, the affidavit says, and all three of the men ran.
June 30, 2014, Armed Robbery #2
Another victim met Buckner later that night on the same date, according to the affidavit. She told police officers that she had been contacted about purchasing an XBOX One that she had posted for sale on craigslist. When she arrived at Ridge Pointe Apartments, Buckner showed her that he had cash to make the purchase. As soon as she took out the XBOX, he allegedly took it and ran. Two other men, armed with handguns, then approached her and pointed the guns at her and a passenger in her vehicle. The men took their purses, along with video games and controllers for the XBOX. The passenger asked for her purse back, and one of the men said, “Get back in the car or I’ll shoot you” and racked the slide on his gun.
July 3, 2014, Armed Robbery
On July 3, 2014, another victim told police that he had been robbed while trying to buy an XBOX from a craigslist advertisement. The victim met Buckner at Ridge Pointe Apartments, the affidavit says, after he had agreed to give him $160 and a Samsung Galaxy watch to buy the XBOX. Buckner refused to do the deal, the affidavit says, and the victim began walking back to his car when he was approached by another man pointing a gun at him. While this man pointed the gun at him, another man he had been talking to came over and frisked the victim. The two men took the watch and the cash, and then fled.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Matthew P. Wolesky and Jess E. Michaelsen. It was investigated by the FBI and the Kansas City, Mo., Police Department.Justice Department Sues to Stop Chicago-Area Woman and Her Businesses from Preparing Tax ReturnsRead the Press Release
The United States filed a complaint in federal court in Chicago to bar Laurie G. Helfer, aka Laurie G. Powell, individually and through her businesses Laurie’s Freelance & Tax Preparation Services and Tax Lady Laurie Inc., from preparing federal tax returns for others, the Justice Department announced today.
The complaint alleges that Helfer prepares and files amended tax returns for individuals claiming refunds that they are not legally entitled to receive. According to the complaint, Helfer has prepared hundreds of amended tax returns for customers in the Chicago area and the tax loss to the U.S. Treasury as a result of her fraudulent conduct could exceed $3 million.
According to the civil injunction complaint, Helfer promises her customers that she can obtain tax refunds for them by amending their tax returns from prior years. To do this, Helfer allegedly fabricates expenses from businesses that do not exist and enters those expenses on a Schedule C-Profit or Loss From Business that she files with her customers’ amended tax returns. The complaint alleges that the expenses offset her customers’ income from prior years and illegally generates a refund. The complaint further alleges that Helfer also prepares original returns for customers during tax-filing season using this same scheme to generate a refund. In an attempt to avoid detection by the Internal Revenue Service (IRS), Helfer stopped signing the tax returns that she prepares and also frequently changes the locations in which she prepares customers’ tax returns, including various Chicago-area hotel rooms, the complaint alleges.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2014 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Laurie G. Helfer, etc. et al.
Complaint for Permanent Injunction and Other ReliefJury Finds Two Men Guilty of Methamphetamine ConspiracyRead the Press Release
TULSA, Okla. — On Friday, a federal jury found Samuel Garcia-Escalera, 36, and Joel Deloera-Escalera, 34, guilty of conspiring to distribute and possess with the intent to distribute 15 kilograms or more of methamphetamine; maintaining drug-involved premises; possession of firearms and ammunition; and being aliens illegally in the United States after deportation; announced United States Attorney Danny C. Williams Sr., for the Northern District of Oklahoma.
The second Superseding Indictment was filed on April 14, 2014, and unsealed on April 15, 2014. United States District Judge Claire V. Eagan, who presided over the trial, scheduled the sentencings on November 24, 2014, for Joel Deloera-Escalera, and November 25, 2014, for Samuel Garcia-Escalera.
According to court documents, from April 2012 to August 2013, Garcia-Escalera and Deloera-Escalera conspired to distribute and possess with intent to distribute 15 kilograms or more of methamphetamine. The jury also found Garcia-Escalera and Deloera-Escalera guilty of maintaining houses for the purpose of storing and distributing methamphetamine, and possession of firearms and ammunitions while being aliens illegally and unlawfully in the United States. Specifically, Garcia-Escalera was found guilty of possessing a .45 caliber pistol; and Deloera-Escalera was found guilty of possessing a .40 caliber pistol, 9mm caliber semi-automatic pistol, a .22 caliber revolver, and various ammunitions. Garcia-Escalera was also found guilty of possessing a .45 caliber pistol in furtherance of a drug trafficking crime.
In a separate criminal information, Garcia-Escalera pleaded guilty to attempting to corruptly persuade others with the intent to prevent witnesses from testifying in the trial. He faces up to 20 years in prison and a $250,000 fine.
At the time of sentencing, the defendants face up to life in prison and up to a $10,000,000 fine for the drug conspiracy; up to 20 years in prison and a $500,000 fine for maintaining a drug-involved premise; up to 10 years in prison and a $250,000 fine for possession of firearms and ammunition as illegal aliens. Garcia-Escalera also faces up to life in prison and a $250,000 for possession of a firearm in furtherance of a drug trafficking crime.
As a part of their sentence, the defendants face entry of a forfeiture money judgment in the amount of at least $1,750,000. The judgment represents proceeds obtained as a result of the methamphetamine conspiracy.The case was investigated by the Tulsa Police Department, Oklahoma Bureau of Narcotics, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and prosecuted by Assistant U.S. Attorneys Gary L. Davis II, Jan Reincke, and Catherine Depew on behalf of the United States.
U.S. v. Samuel Garcia-Escalera and Joel Deloera-Escalera