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Thursday 19 June 2014
El Paso TX Man Arraigned for Cocaine DistributionRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ELADIO ARGUELLES, 26, of El Paso, Texas, was arraigned in federal court today on charges of POSSESSION WITH INTENT TO DISTRIBUTE 5 KILOGRAMS OR MORE OF COCAINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The Indictment filed on June 11, 2014, alleges that beginning on or about April 5, 2014, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally possess with the intent to distribute five (5) kilograms or more of a mixture or substance containing a detectable amount of Cocaine, a Schedule II Controlled Substance.
The charge arose from an investigation by the Savanna Police Department and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. The Defendant was remanded into the custody of the United States Marshal Service.
The statutory range of punishment for ARGUELLES is not less than 10 years imprisonment and/or up to $10,000,000.00 in fines.
Assistant United States Attorney Christopher Wilson represented the United States.
El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor Realizan Acuerdo Conciliatorio de 169 Millones de Dólares en Resolución de Hechos de Alegatos de Discriminación en el Ot...Read the Press Release
WASHINGTON – El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor [Consumer Financial Protection Bureau (CFPB)] anunciaron hoy un acuerdo conciliatorio en resolución de alegatos de que GE Capital Retail Bank, conocido a partir de este mes como Synchrony Bank, exhibió un patrón o práctica nacional de discriminación al excluir a prestatarios hispanos de dos de sus programas de cancelación de deudas de tarjeta de crédito. El acuerdo conciliatorio resuelve alegaciones por parte del departamento y la CFPB que GE Capital violó la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)] al excluir a prestatarios que indicaron que preferían que las comunicaciones fueran en español o tenían dirección postal en Puerto Rico de dos programas de cancelación de deudas de tarjeta de crédito. El acuerdo es una acción de coacción de préstamos justos conjunto del departamento y la CFPB y es históricamente el mayor acuerdo conciliatorio de discriminación asociado a tarjetas de crédito del gobierno federal.
El acuerdo conciliatorio dispone el pago de 169 millones de dólares como reparación a alrededor de 108,000 prestatarios, en la forma de pagos monetarios, y la reducción o dispensa total de los saldos de las tarjetas de crédito de los prestatarios. El propio GE Capital identificó y reportó la discriminación a la CFPB, fue proactivo en tomar medidas para proporcionar reparación a los prestatarios afectados, y ha trabajado estrechamente con el departamento y la CFPB para identificar e indemnizar a otras víctimas de dicha discriminación. Específicamente, GE Capital ya ha provisto los beneficios de las ofertas o su valor equivalente a aproximadamente 84,000 prestatarios por un total de $131.8 millones en reparación. Según el acuerdo conciliatorio, el banco proveerá los $37 millones restantes en pagos, reducciones y dispensas a los prestatarios afectados.
"La evidente discriminación exhibida en este caso es ilegal y no será tolerada", señaló la Secretaria de Justicia Auxiliar Interina Jocelyn Samuels de la División de Derechos Civiles. "Los prestatarios tienen derecho a términos de tarjeta de crédito que no difieran según su origen nacional, y el acuerdo conciliatorio de hoy transmite el mensaje de que el Departamento de Justicia puede hacer valer la ley enérgicamente contra los prestamistas que violen dicho derecho, y así lo hará".
"La discriminación no tiene lugar en el mercado financiero de consumo. Nadie debe ser excluido de oportunidades de crédito simplemente debido a dónde vive o el idioma que habla", señaló el Director de la CFPB Richard Cordray.
De acuerdo con la demanda presentada por los Estados Unidos, el departamento alega que, entre enero de 2009 y marzo de 2012, GE Capital excluyó a ciertos prestatarios debido a su origen nacional, de su "Oferta de crédito de estado de cuenta" – un programa que ofrecía a prestatarios elegibles un crédito en su cuenta si cumplían con ciertos criterios – y la "Oferta de cancelación" – un programa que ofrecía a prestatarios elegibles la oportunidad de cancelar su deuda de tarjeta de crédito si pagaban un porcentaje del saldo pendiente de la cuenta, equivalente a entre el 25 y el 55 por ciento. Como resultado de las exclusiones, los prestatarios hispanos fueron objeto de niveles de deuda más altos y períodos más largos de deuda; algunos de estos prestatarios hispanos pueden haber sufrido daños económicos consecuenciales adicionales, incluidos mayor riesgo de problemas de crédito, insolvencia y reposesión, les pueden haber cerrado las cuentas, sus cuentas pueden haber sido contabilizadas como "incobrables" y vendidas a terceros, y pueden abrir sufrido otros daños, tales como sufrimiento emocional.
El acuerdo conciliatorio de GE Capital con el departamento, el que está sujeto a la aprobación del tribunal, fue presentado hoy en el Tribunal Federal de Distrito para el Distrito de Utah en conjunto con la demanda del departamento. GE Capital resolvió los alegatos del CFPB por medio de un acuerdo conciliatorio administrativo público.
Además de los 169 millones de dólares en reparación, GE Capital también ha aceptado eliminar los informes de crédito negativos de los prestatarios afectados, emitidos durante períodos de la supuesta discriminación. GE Capital también tomará medidas afirmativas para fortalecer su cumplimiento con las leyes de préstamos justos, y el departamento aplaude los esfuerzos del banco, realizados hasta el momento con dicha finalidad. Estos pasos implementan fuertes mecanismos de revisión y capacitación para garantizar que no se discrimine contra prestatarios debido a su origen nacional.
La coacción asociada a las leyes de otorgamiento justo de préstamos por parte del departamento es llevada a cabo por la Unidad de Préstamos Justos de la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Desde que se estableció la Unidad de Préstamos Justos en febrero de 2010, ésta ha entablado o resuelto 34 casos de préstamos bajo la Ley de Vivienda Justa, la ECOA y la Ley de Alivio Civil para los Miembros de las Fuerzas Armadas [Servicemembers Civil Relief Act]. Los acuerdos conciliatorios en estos casos proveen más de 1,000 millones de dólares en reparación monetaria para comunidades y prestatarios individuales afectados. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso bajo ECOA destacan los logros del departamento en el otorgamiento de préstamos justos y están disponibles en el portal de la división en Internet.
La División de Derechos Civiles y la CFPB son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero. El Presidente Obama fundó la Fuerza de Tarea de Coacción contra el Fraude Financiero interagencial para generar una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros. La fuerza de tarea incluye a representantes de un amplio rango de agencias federales, autoridades regulatorias, inspectores generales y fuerzas del orden público estatales y locales quienes, trabajando juntos, ponen en uso un conjunto poderoso de recursos de coacción penal y civil. La fuerza de tarea está trabajando para mejorar las iniciativas en todo el poder ejecutivo federal y, junto con asociados estatales y locales, investigar y enjuiciar delitos financieros importantes, garantizar un castigo justo y eficaz para quienes cometen delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar ganancias para las víctimas de delitos financieros. Para obtener más información sobre la fuerza de tarea, visite www.StopFraud.gov.
El Departamento de Justicia Realiza Acuerdo Conciliatorio con el Distrito Escolar del Condado de Clay, Alabama, para Garantizar Igualdad de Oportunidades para Estudiantes del Programa Aprendiz del Idioma InglésRead the Press Release
El Departamento de Justicia anunció hoy un acuerdo conciliatorio con el Distrito Escolar del Condado de Clay en Alabama. Con la cooperación del distrito, el departamento llevó a cabo una revisión de cumplimiento del programa Aprendiz del Idioma Inglés [English Language Learner (ELL)] del distrito, para determinar si los estudiantes de ELL del distrito estaban recibiendo servicios exigidos por la Ley de Igualdad de Oportunidades Educativas [Equal Educational Opportunities Act of 1974 (EEOA)] de 1974.
El acuerdo conciliatorio de tres años de duración garantizará que este distrito rural tome medidas adecuadas para atender a su población pequeña pero creciente de estudiantes de ELL, incluidos: brindar más servicios para estudiantes de ELL, obtener instructores adicionales con certificación como instructores de inglés como segundo idioma, brindar oportunidades de desarrollo profesional significativas para docentes, brindar materiales y medios de apoyo adecuados para las salas de aula de estudiantes de ELL, monitorear del desempeño académico de estudiantes de ELL actuales y anteriores, y mejorar la comunicación accesible en términos idiomáticos con los padres con conocimientos limitados del idioma inglés.
"El Departamento de Justicia se compromete a asegurar que todos los aprendices del idioma inglés reciban los servicios que requieren para el éxito, inclusive en un distrito rural pequeño como el Distrito Escolar del Condado de Clay", señaló Jocelyn Samuels, Secretaria de Justicia Auxiliar Interina de la División de Derechos Civiles. "Aplaudimos la decisión del Distrito Escolar del Condado de Clay de realizar este importante acuerdo. Nos complacerá seguir trabajando en conjunto con el distrito en satisfacer las diversas necesidades de sus aprendices del idioma inglés".
Hacer valer la Ley de Igualdad de Oportunidades Educativas es una de las principales prioridades de la División de Derechos Civiles del Departamento de Justicia. Este año se cumplen 40 años de la promulgación de la EEOA. Para obtener información adicional sobre la División de Derechos Civiles del Departamento de Justicia, visite www.justice.gov/crt.
Documentos Relacionados:
- Acuerdo de Resolución entre los Estados Unidos y el Distrito Escolar del Condado de Clay
Eddie Lopez-Lopez Sentenced to 33 Months in Prison for Possession of Cocaine with Intent to DistributeRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Eddie Lopez-Lopez, 36, to 33 months in prison for possession with intent to distribute cocaine, United States Attorney Ronald W. Sharpe announced.
According to court records, Lopez-Lopez was arrested on May 18, 2013, as part of the drug trafficking investigation of Roberto Tapia, the former Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of Environmental Enforcement. On November 7, 2013, Lopez-Lopez was charged in a 69-count indictment charging various drug trafficking offenses, along with seven other defendants, including Angelo Hill, Raymond Brown, Edwin Monsanto, Stephen Torres, Hector Alcenio, Walter Hill, and Angel Negron-Beltran. On January 29, 2014, Lopez-Lopez pleaded guilty to possession of cocaine with intent to distribute.
The case was investigated by the Public Corruption Task Force, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA); Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Office of the Virgin Islands Inspector General. Assistant U.S. Attorneys Kelly B. Lake and Kim Lindquist prosecuted the case.
Eagle Butte Woman Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Jessalynn Cook, age 19, was indicted on June 10, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on June 13, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Cook is alleged to have assaulted an adult male with a knife in May 2014 in Eagle Butte. The victim received three different stab wounds.
The charges are merely accusations and Cook is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Cook was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Eagle Butte Man Sentenced for Sexual Contact with A Person Incapable of ConsentingRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Sexual Contact with a Person Incapable of Consenting was sentenced on June 16, 2014, by U.S. District Judge Roberto A. Lange.
Sheldon Miner, a/k/a Salty Miner, age 62, was sentenced to 36 months in custody, 5 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and he must register as a sex offender.
Miner was indicted by a federal grand jury on April 12, 2013, for Sexual Abuse of a Person Incapable of Consenting and Sexual Contact with a Person Incapable of Consenting. He pled guilty to the sexual contact charge on March 24, 2014.
The conviction arose from an October 2012 incident in Dewey County when Miner engaged in sexual contact with the victim who was asleep on a couch following a house party. The contact occurred when the victim was incapable of appraising the nature of the sexual conduct and was physically incapable of declining participation in the sexual contact.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Miner was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Department of Justice Reaches Settlement with Clay County, Alabama School District to Ensure Equal Opportunities for English Language Learner StudentsRead the Press Release
The Justice Department announced today a settlement agreement with the Clay County School District in Alabama. With the district’s cooperation the department conducted a compliance review of the district’s English Language Learner (ELL) program to determine whether the district’s ELL students were receiving services required by the Equal Educational Opportunities Act of 1974 (EEOA).
The three-year settlement agreement will ensure that this rural district takes appropriate action to serve its small but growing population of ELL students, including: increasing services for ELL students, obtaining additional English as a Second Language-certified instructors, conducting significant professional development for teachers, providing adequate materials and classroom supports for ELL students, monitoring the academic performance of current and former ELL students and improving language-accessible communication with limited English proficient parents.
“The Department of Justice is committed to ensuring that all English language learners are provided the services they need to succeed, including in a small rural district like the Clay County School District,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “We applaud the Clay County School District’s decision to enter into this important agreement and look forward to continuing to work cooperatively with the district to address the diverse needs of its English language learners.”
The enforcement of the Equal Educational Opportunities Act is a top priority of the Justice Department’s Civil Rights Division. This year marks the 40th anniversary of the EEOA. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt .Related Materials:
Clay County Agreement
Dallas Man Sentenced to 24 Months in Federal Prison for Committing Financial Aid Fraud at Local Community CollegesRead the Press Release
Defendant Commits Offense While Waiting to Report to Federal Prison on Separate Conviction
DALLAS — A Dallas man who used family members’ personal identifiers and photos to apply for admission to, and receive financial aid from, certain institutions and colleges was sentenced this afternoon, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Desmond Ladell Johnson, 35, was sentenced by U.S. District Judge Jane J. Boyle to 24 months in federal prison and ordered to pay $22,442.00 in restitution. Johnson pleaded guilty in October 2013 to one count of financial aid fraud. He must surrender to the Bureau of Prisons in late August 2014.
At the hearing, it was noted that Johnson committed the instant crimes while on pre-sentence release for another conviction in the Northern District of Texas. Johnson pleaded guilty to one count of theft of government property on May 19, 2009, and in November 2009, he was sentenced to serve 46 months in federal prison for that offense. He was ordered to surrender to the Bureau of Prisons exactly two months later, on January 19, 2010, which he did, to begin serving that sentence. It was during that two-month period that Johnson committed the financial aid fraud crimes.
According to documents filed in the case, between May 2009 and January 2010, Johnson used the personal identifiers, including social security numbers, dates of birth and photo identifications of several family members, including his brother, stepbrother and father, to apply for admission to, and financial aid from the Dallas County Community College District and Trinity Valley Community College (TVCC). Those family members had no knowledge that Johnson was using this information or receiving disbursed funds.
When an address was required or requested on applications and forms, Johnson would typically list an address where he resided, or over which he had control, as opposed to the correct address for the relevant family member. When a telephone number or email address was required, Johnson would typically list a telephone number and email address over which he had control, as opposed to the correct telephone number or email address for the relevant family member. Johnson also obtained a student identification card at TVCC under his brother’s name, but which contained Johnson’s picture.
Using this scheme, Johnson stole $25,429.00 that he used for non-educational purposes.
The U.S. Department of Education investigated the case. Assistant U.S. Attorney P. J. Meitl prosecuted.
Convict Pleads Guilty to Criminal Contempt ChargeRead the Press Release
PITTSBURGH - A resident of Farrell, Pennsylvania, pleaded guilty in federal court to a charge of criminal contempt, United States Attorney David J. Hickton announced today.
Robert M. Spruill, 30, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that in 2007, Spruill was prosecuted in federal court in the Western District of Pennsylvania for drug-trafficking and firearms offenses. On June 6, 2008, he was sentenced to 57 months imprisonment, followed by three years of supervised release.
Spruill was released from custody and began his supervised release on Dec. 27, 2011. During the following year, Spruill was convicted in state court of misdemeanor Criminal Trespass and Theft by Unlawful Taking. He also failed to comply with various conditions of his supervised release, including refraining from illegal marijuana use.
The United States Probation Office filed a petition to revoke Spruill’s supervised release. A hearing was held on Dec. 14, 2012, after which the Honorable Terrence F. McVerry revoked Spruill’s supervised release and sentenced him to six months’ incarceration. Judge McVerry initially stated that Spruill would commence his term of imprisonment immediately. Spruill’s counsel, however, requested that the Court allow Spruill to spend the holidays with his family, and Judge McVerry agreed to permit Spruill to remain at home for the holidays. He was specifically instructed to surrender to the United States Marshals Service’s office on the Second Floor of the United States Federal Courthouse, in downtown Pittsburgh, on Jan. 3, 2013, by noon, to begin to serve his sentence.
Spruill disobeyed that Court Order, and he failed to turn himself in as directed. On Jan. 4, 2013, a bench warrant was issued for Spruill’s arrest.
On Jan. 10, 2013, the United States Marshals Service’s Fugitive Task Force found and arrested Spruill at his girlfriend’s residence in Mercer County. Spruill was found hiding in the attic, under clothing.
Judge Bissoon scheduled sentencing for Oct. 9, 2014, at 10 a.m. The law provides for a maximum total sentence of an unlimited period of incarceration, an unlimited fine, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation that led to the prosecution of Spruill.
Connecticut U.S. Attorney’s Office Celebrates Annual U.S. Attorney’s AwardsRead the Press Release
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The United States Attorney’s Office for the District of Connecticut hosted its annual United States Attorney’s Office Law Enforcement Awards Ceremony this afternoon in New Haven. The ceremony at the City of New Haven’s aldermanic chambers recognized more than 160 individuals for their investigative efforts in 30 significant federal criminal prosecutions and civil cases in Connecticut.
The highlighted cases demonstrate the broad variety of work performed by local, state and federal law enforcement agencies in Connecticut, including the FBI, DEA, ATF, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard, U.S. Department of Health and Human Services, U.S. Department of Housing and Urban Development, U.S. Department of Labor, U.S. Department of Transportation, U.S. Department of Homeland Security, U.S. Department of Defense, SIGTARP, the Connecticut State Police, Connecticut Department of Correction, and Connecticut Department of Banking. More than 30 of the award recipients are members of local police departments from across Connecticut.
“Today, we proudly recognize our law enforcement partners for their exceptional work,” stated U.S. Attorney Daly. “We are grateful for the courage and dedication they bring to the job. It is our great honor to work with them and to celebrate their accomplishments as they devote their lives to ensuring the safety and security of our communities and all those who live in our state.”
Several unit awards and special awards were also presented during the ceremony.
The U.S. Attorney’s Award for Outstanding Investigator was presented to FBI Financial Analyst Elizabeth McCartney for her exceptional work on many significant financial fraud investigations.
The U.S. Attorney’s Award for Outstanding Partnership was presented to a group of local and state law enforcement officers who are assigned to various federal task forces. Award recipients include Captain Luis Sosa of the Connecticut Department of Correction, Detective Stanford Dowling of the Bridgeport Police Department, Detective Mark Solomon of the Greenwich Police Department, Detective Francis Bellizzi of the New Britain Police Department, Officers Michael Mastropetre and Jonathan Young of the New Haven Police Department, Officer Brian Laurie of the New London Police Department, and Officer Heather Bozentko, Detective William Brevard, Sergeant Christopher Broems and Sergeant Kevin Keenan of the Stamford Police Department.
The Civil Division Unit Award was presented to Debra Reale, who has been the Associate Area Counsel, Small Business, Self Employed Division for the Internal Revenue Service’s Office of Chief Counsel for 26 years.
The National Security and Major Crimes Unit Award was presented to Peter Kenyon, Regional Criminal Enforcement Counsel for the Environmental Protection Agency, for his investigation and prosecution of numerous major environmental cases in Connecticut during the past 23 years.
The Financial Fraud and Public Corruption Unit Award was presented to FBI Special Agents William Aldenberg, Stacy Bowery, Matthew McPhillips and Jeffrey Waterman, whose investigative efforts led to the successful prosecution of eight individuals who engaged in a scheme to direct illegal contributions into the campaign of a candidate for the U.S. House of Representatives.
The Violent Crimes and Narcotics Unit Award was presented to the lead investigators in Operation Bloodline, which targeted narcotics trafficking and gang violence in New Haven, and resulted in more than 90 federal convictions. The award recipients were DEA Special Agents Michael Cogan and Anastas Ndrenika, DEA Task Force Officers Tony Miranda and David Rivera of the New Haven Police Department, and DEA Task Force Officers Joshua Cameron and Dedric Jones, and Investigator Lance Helms, of the Hamden Police Department.
The United States Attorney’s Office is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District. The District is composed of approximately 64 Assistant U.S. Attorneys and approximately 60 staff members at offices in New Haven, Hartford and Bridgeport.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Charles City Man Sentenced to Life in Prison on Firearms ViolationsRead the Press Release
Sentencing Judge Finds Defendant Murdered Burglary Victim
Randy Patrie, age 41, from Charles City, Iowa, received a life sentence after a September 6, 2013, guilty plea to possessing sawed-off shotguns and being a felon in possession of firearms. The court found at sentencing that he had used a sawed-off shotgun to commit a murder while stealing other firearms from the victim.
Evidence presented at a sentencing hearing in February 2014 showed that, in October 2012, Patrie burglarized the home of Ken Gallmeyer, located outside Nashua, Iowa. Finding Gallmeyer asleep in his bed, Patrie shot Gallmeyer in the head with a sawed-off .410 gauge shotgun. Patrie then ransacked the house in search of a large amount of cash Gallmeyer was rumored to have had in his house. In July 2013, a Charles City Police Officer arrested Patrie for burglarizing his step-mother’s house. In a search of Patrie’s house, officers found three firearms stolen from Gallmeyer, along with Gallmeyer’s large screen television and other property belonging to Gallmeyer. Patrie was also found in possession of approximately 32 firearms, two of which had been stolen in March 2013 during a burglary of another residence near Gallmeyer’s house, and 22 of which had been stolen in May 2013 during a burglary of the Gilbert’s Sales Yard in Floyd, Iowa. Among the firearms recovered from Patrie’s house was a .410 gauge sawed-off shotgun believed to have been the weapon Patrie used to murder Ken Gallmeyer.
Patrie was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. After hearing the evidence during the February sentencing hearing, the Court took the case under advisement. On June 12, 2014, the Court issued written findings of fact and made rulings on legal issues (Document 58). In the written findings, the Court concluded Patrie had murdered Gallmeyer. The Court found that Patrie qualified as an Armed Career Criminal, which carries a mandatory minimum of fifteen years and a maximum sentence of life imprisonment. At today’s hearing, the Court heard victim impact statements, and then imposed sentence. Patrie was sentenced to life imprisonment. There is no parole in the federal system.
Patrie is being held in the United States Marshal’s custody until he can be transported to a federal prison.
“This was a horrible crime,” said U.S. Attorney Techau. “The sentence is just and will certainly ensure that Randy Patrie never inflicts such intolerable and unspeakable cruelty on anyone else again. It is a measure of justice for Mr. Gallmeyer and his family.”
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Iowa Division of Criminal Investigation, the Chickasaw and Floyd County Sheriff’s Offices, and the Charles City Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-2016.
Canton Man Faces Child Pornography ChargesRead the Press Release
Richard B. Elbert, 50, of Canton, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about April 24, 2014, through on or about May 21, 2014, Elbert knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On May 22, 2014, images of child pornography were also found on his HP Compaq Presario laptop computer.
If convicted, the sentence in this case 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.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Canton Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Indicted for Possession of an Unregistered FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fontana, California, man has been indicted by a federal grand jury for Possession of an Unregistered Firearm.
Gregorio Aguirre, age 26, was indicted on May 20, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 12, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Aguirre possessing an unregistered firearm made from a Remington Model 12, .22 Caliber Rifle, on April 12, 2014, in South Dakota.
The charge is merely an accusation and Aguirre is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Unified Narcotics Enforcement Team, the South Dakota Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Aguirre was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for August 19, 2014.
Calhoun City MS Man, Houlka MS Woman Arraigned for Methamphetamine DistributionRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BRANDON JEVAR PITTMAN, 32 of Calhoun City, Mississippi, and DEJA MONET PHILLIPS, 18, of Houlka, Mississippi, were arraigned in federal court today on charges of POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B) and Title 18, United States Code, Section 2.
The Indictment alleges that on or about March 6, 2014, within the Eastern District of Oklahoma, the defendants, did knowingly possess with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. Both defendants were remanded into the custody of the United States Marshal Service.
The statutory range of punishment for PITTMAN and PHILLIPS is not less than 5 years and not more than 40 years imprisonment and/or up to $5,000,000.00 in fines.
Assistant United States Attorney Kyle E. Waters represented the United States.
Bullhead Man Sentenced for Sexual Contact with A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man convicted of two counts of Abusive Sexual Contact was sentenced on June 16, 2014, by U.S. District Judge Charles B. Kornmann.
Landon Iron Thunder, age 24, was sentenced to 36 months in custody on one count and 24 months in custody on the second count, to run concurrently. The Court further ordered that these sentences be served consecutive to a Burleigh County, North Dakota, sentence. Iron Thunder was also sentenced to 5 years of supervised release and a $200 special assessment to the Federal Crime Victims Fund.
Iron Thunder was indicted by a federal grand jury on July 17, 2013. He pled guilty on March 21, 2014.
The conviction stems from an incident occurring between June 1, 2010, and July 31, 2010, when Iron Thunder was socializing with family members, including the juvenile female victim. Late one evening, the group went to Iron Thunder’s house to sleep. The victim slept on a mattress, along with other family members, located on the floor of Iron Thunder’s room. At some point during the night, the victim awoke to discover that her belt had been unbuckled and her pants had been pulled down. Iron Thunder was lying next to her and had his hands inside the victim’s underwear. The victim woke up others in the room and was able to flee the residence.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Iron Thunder was immediately turned over to the custody of the U.S. Marshals Service to be returned to North Dakota to finish serving his state sentence before serving his federal sentence.
Buffalo Woman Pleads Guilty to Theft of Government FundsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Bernice Robinson, 79, of Buffalo, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio to theft of public money. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine or both.
Assistant U.S. Attorney Kathleen A. Lynch, who is handling the case, stated that between October 1998 and April 2011, the defendant fraudulently collected $101,150.95 in benefits from the Social Security Administration. Robinson began collecting Social Security benefits as a widow in 1992 following the death of her first husband. In 1998, using a false name and birth certificate, the defendant applied for and began to receive an additional set of supplemental benefits.
In March 2001, Robinson again began collecting widow benefits following the death of her second husband. In August 2010, the defendant began to receive social security retirement benefits using a false name and social security number.
The plea is the result of an investigation on the part of the United States Social Security Administration, Office of the Inspector General, under the direction of Special Agent-in-Charge Edward J. Ryan.
Sentencing will be scheduled at a later date.Buffalo Woman Pleads Guilty to Theft of Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Bernice Robinson, 79, of Buffalo, N.Y., who was convicted of theft of public money, was sentenced to three years supervised release, by Chief U.S. District Judge William M. Skretny. The defendant was also ordered to pay restitution totaling $101,150.95.
Assistant U.S. Attorney Kathleen A. Lynch, who handled the case, stated that between October 1998 and April 2011, the defendant fraudulently collected $101,150.95 in benefits from the Social Security Administration. Robinson began collecting Social Security benefits as a widow in 1992 following the death of her first husband. In 1998, using a false name and birth certificate, the defendant applied for and began to receive an additional set of supplemental benefits.
In March 2001, Robinson again began collecting widow benefits following the death of her second husband. In August 2010, the defendant began to receive social security retirement benefits using a false name and social security number.
The sentencing is the result of an investigation on the part of the United States Social Security Administration, Office of the Inspector General, under the direction of Special Agent-in-Charge Edward J. Ryan.
Buffalo Appraiser Sentenced for Bank FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Darryl Glasco, 55, of Pendleton, N.Y., who was convicted of bank fraud, was sentenced to six months home detention and four years supervised release by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $334, 024.08 to JP Morgan Chase and Bank of America.
According to Assistant U.S. Attorney Kathleen A. Lynch, Glasco, a New York State licensed real estate appraiser, submitted a fraudulent appraisal in connection with a mortgage fraud scheme. The defendant conspired with a borrower, James P. Vasiliou, Jr., to submit a fraudulent appraisal report to support an inflated property value for a mortgage loan. Glasco inflated the value of the property in Lockport, N.Y. by using false locations and values for comparable properties resulting in an inflated fair market value for the appraised property. The appraisal was submitted to JP Morgan Chase Bank which approved and funded a loan for the property.
Vasiliou has been convicted of bank fraud and will be sentenced in August 2014. As part of the plea agreement, Glasco admitted to providing false appraisals for nine additional properties.
The plea is the result of an investigation by the Mortgage Fraud Task Force of WNY, led by the U.S. Attorney’s office, which includes agents and personnel from the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast, the Federal Bureau of Investigation, and Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Christina Scaringi.Box Elder Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man has been indicted by a federal grand jury for Distribution of Child Pornography and Possession of Child Pornography.
Michael J. Fech, age 30, a Captain in the U.S. Air Force, was indicted on June 17, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 19, 2014, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 5 years’ imprisonment up to 20 years’ imprisonment and/or a $250,000 fine, lifetime of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between December 2013 and June 2014, at Box Elder, Fech knowingly distributed and possessed computers files containing images of child pornography.
The charges are merely accusations and Fech is presumed innocent until and unless proven guilty.The investigation was conducted by the Pennington County Sheriff’s Department, and the South Dakota Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Fech was released pending trial, with conditions limiting his use of the internet and contact with children. A trial date has not been set.
Boston Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday to armed bank robbery.
Anthony Hamilton, 28, pleaded guilty to armed bank robbery and being a previously convicted felon in possession of a firearm. U.S. District Court Judge Rya W. Zobel scheduled sentencing for Sept. 24, 2014.In December of 2010, after entering the Citizen’s Bank in Malden, Hamilton approached a teller and handed her a demand note which stated he would shoot her if she did not give him money. After the teller complied Hamilton fled, but became trapped in the bank’s vestibule. Hamilton pulled out a semi-automatic firearm and fired into the vestibule’s door. The door released and he fled. A few weeks later, he was located and arrested at his home in Dorchester where he was in possession of a semi-automatic firearm with an obliterated serial number and multiple rounds of ammunition.
Hamilton, a previously convicted felon, faces a maximum sentence of a lifetime in prison, five years of supervised release, and a $250,000 fine on the gun possession charge; and a maximum sentence of 25 years in prison, five years of supervised release, a $250,000 fine, and $4,700 in restitution on the armed bank robbery charge.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Bergen County, N.J., Man Arrested for Defrauding Foreign Nation of More Than $3.5 MillionRead the Press Release
NEWARK, N.J. - A Bergen County, N.J., man who was re-entering the United States from a trip abroad was arrested today at Newark International Airport on charges that he allegedly orchestrated a scheme to defraud a foreign nation of more than $3.5 million, U.S. Attorney Paul J. Fishman announced today.
Bobby Boye, a/k/a “Bobby Ajiboye,” a/k/a “Bobby Aji-Boye,” 50, of Franklin Lakes, N.J., is charged by complaint with one count of wire fraud conspiracy and six counts of wire fraud. He is scheduled to make his initial appearance tomorrow before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the complaint:
Beginning in July 2010, Boye worked as an international legal advisor for the victim nation, which is referred to in the complaint as “Country A.” Boye served on a three-member committee responsible for reviewing and evaluating bids, solicited in February 2012, for a multi-million dollar contract to provide legal and tax accounting advice to Country A. Boye allegedly deceived Country A representatives into awarding the lucrative contract to Opus & Best Services LLC (Opus & Best), a sham New York law and accounting firm that, unbeknownst to Country A, was secretly controlled by Boye.
On March 17, 2012, Boye allegedly caused Opus & Best to submit by email a bid for the contract with Country A. The bid documents, which allegedly were authored by Boye and a conspirator (CC-1), contained multiple, material misrepresentations and omissions, including: (1) a false claim that Opus & Best was founded in 1985, when in fact it was not founded until late March 2012; (2) a fraudulent listing of several purported employees of Opus & Best, who were described in the bid as a “first class talent of attorneys, accountants and economists.” There was no record of individuals of those same names as being admitted to practice law in New York or New Jersey or as being New York-licensed certified public accountants; (3) a false representation that Opus & Best had no conflicts of interest; Boye was both the sole member of Opus & Best and a member of the committee reviewing the bids; (4) a reference to prior consulting work purportedly performed by Opus & Best for another foreign country when that country had never awarded any type of consulting services contract to Opus & Best; and (5) a false representation that there were no third-party beneficiaries to the proposed contract between Opus & Best and Country A, when Boye himself was an undisclosed third-party beneficiary, given his alleged concealed intent to misappropriate the contract for his own benefit.
Unaware that Opus & Best allegedly was a sham firm, and relying on the recommendation of Boye, Country A awarded the contract to Opus & Best in June 2012. Under the terms of the consulting contract, Boye was one of the two project coordinators acting on behalf of Country A and had authority to receive and approve invoices for payment.
Between June 2012 and December 2012, Country A wired more than $3.5 million to Opus & Best’s New York business checking account, which was controlled by Boye. He used the money to purchase four properties in New Jersey for more than $1.5 million in cash, three luxury vehicles (a 2012 Bentley for $172,000, a 2012 Range Rover for $100,983, and a 2011 Rolls Royce for $215,000) and two designer watches for almost $20,000.
The conspiracy and wire fraud counts with which Boye is charged each carry a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford in Newark with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark and Assistant U.S. Attorney Evan S. Weitz of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
This arrest 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. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
14-224Defense counsel: TBD
Boye, Bobby Complaint
Bay County Man Sentenced for PerjuryRead the Press Release
A Bay County man was sentenced on June 17, 2014, to 21 months in prison for committing perjury before a federal grand jury, announced U.S. Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Randall Ashe, Special Agent in Charge, U.S. Environmental Protection Agency Criminal Investigation Division in Michigan.
U.S. District Judge Thomas Ludington imposed sentence on Rodolfo Rodriguez, 57.
According to court records, Rodriguez was called to testify before a grand jury investigating asbestos-related crimes and knowingly provided false testimony regarding the illegal removal of asbestos from a church, which was being converted to a school used by the Bay City Academy.
Co-defendants Roy Bradley and Gerald Essex have been charged with illegally disturbing and handling asbestos while performing the demolition work on the church. They are currently scheduled for trial on August 19, 2014, in Bay City, Michigan.
“Our criminal justice system depends upon witnesses to provide truthful information,” McQuade said. “Witnesses who lie to a grand jury commit a serious crime that will be prosecuted.”
“As with any criminal case, the prosecution of environmental crimes depends on honest answers and testimony,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Michigan. “Lying under oath is criminal conduct, and when it’s about removing asbestos illegally, potentially endangering vulnerable children, it’s especially egregious. Today’s sentencing demonstrates that companies and individuals who callously place the American people at risk, then lie about it under oath, will be held accountable.”
The case was investigated by special agents of the U.S. Environmental Protection Agency and the Internal Revenue Service. The prosecution is being handled by the U.S. Attorney’s Office in Bay City, Michigan.
Armed Career Criminal Sentenced to 15 Years in Prison for Federal Firearms ViolationRead the Press Release
ASHEVILLE, N.C. – A South Carolina man was sentenced in federal court on Tuesday, June 10, 2014, for being a felon in possession of a firearm, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Lawrence Doe, Jr., 30, of Beaufort, S.C. was sentenced by Chief U.S. District Judge Martin Reidinger to 180 months in prison, followed by three years of supervised release.
Chief Chris Beddingfield of the Columbus Police Department joins U.S. Attorney Tompkins in making today’s announcement.
According to the criminal indictment and statements made in court, on or about August 10, 2012, Columbus PD conducted a traffic stop of a vehicle in which Doe was a passenger. During the traffic stop, law enforcement found a loaded Smith & Wesson .357 magnum revolver inside the car. Doe’s foot had been resting on the firearm until law enforcement ordered Doe out of the vehicle. At the time of the offense, Doe was a convicted felon and was prohibited from possessing a firearm. In August 2013, Doe pleaded guilty to the gun charge. Court records indicate that Doe had four prior burglary convictions in South Carolina and at sentencing he qualified as an armed career criminal.
Doe has been in federal custody since January 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by Columbus PD. The case was prosecuted by Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville.
Ardmore Man Arraigned for Methamphetamine DistributionRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that NIKEA PAUL LEE, 38, of Ardmore, Oklahoma, was arraigned in federal court today on charges of POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The Indictment alleges that on or about February 6, 2014, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with the intent to distribute over five (5) grams or more of actual Methamphetamine, a Schedule II Controlled Substance.
The charge arose from an investigation by the Chickasaw Lighthorse Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. The Defendant was remanded into the custody of the United States Marshal Service.
The statutory range of punishment for LEE is not less than 5 years and not more than 40 years imprisonment and/or up to $5,000,000.00 in fines.
Assistant United States Attorney Kyle E. Waters represented the United States.
Alleged Leader of Sex Trafficking Ring Lands in U.S. After Extradition from MexicoRead the Press Release
HOUSTON - Gerardo Salazar has landed in the U.S. to face charges related to the smuggling of minor girls and young women from Mexico and using deception, threats of harm, physical force and psychological coercion to compel their service as prostitutes in Houston area bars, announced U.S. Attorney Kenneth Magidson along with Acting Special Agent in Charge Carlos J. Barron of the FBI.
“The formal arrest following the successful extradition of the defendant today represents our commitment to bring those accused of human trafficking to the bar of justice,” said Magidson.
“The victims in this case were young Mexican women and girls alleged to have been beaten and forced into prostitution inside Houston area cantinas,” said Barron. “Let Salazar’s return provide assurance to these victims and others that those who engage in the egregious crimes of human trafficking will be pursued around the globe and brought to justice.”
Salazar, 47, of Mexico City, Mexico, had been a fugitive since 2005. He was recently arrested in Mexico and arrived in Houston this afternoon. He is expected to make an initial appearance before U.S. Magistrate Judge Mary Milloy tomorrow.
Gerardo Salazar aka “El Gallo" was indicted in 2005 along with Mexican nationals Salvador Fernando Molina Garcia, Angel Moreno Salazar, Jose Luis Moreno Salazar, Juan Carlos Salazar and Ivan Salazar.
The indictment alleged “El Gallo” was the leader of the group. He is charged with conspiracy, sex trafficking, transportation of minor for immoral purposes, alien harboring for prostitution and transportation of illegal aliens. If convicted, he faces up to life in federal prison and a maximum $250,000 fine.
All the other co-defendants have entered guilty pleas in the case and were sentenced to federal prison.
The investigation was conducted by the FBI, Harris County Sheriff's Office, Homeland Security Investigations, Texas Alcoholic Beverage Commission and others as part of the Human Trafficking Rescue Alliance. The Justice Department's Office of International Affairs provided assistance with the extradition.
Assistant U.S. Attorneys Ruben R. Perez and Joe Magliolo are prosecuting the case.
A defendant is presumed innocent unless and until convicted through due process of law.Albuquerque Woman Sentenced to Prison for Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – Daisy Alaniz, 28, of Albuquerque, N.M., was sentenced today to 27 months in federal prison followed by two years of supervised release for her bank robbery conviction.
Alaniz and her co-defendant, Anthony Paloni, 51, also of Albuquerque, were arrested on April 20, 2013, on bank robbery charges. Both have been in federal custody since that time.
According to court filings, Alaniz and Paloni robbed the Bank of the West branch located at 1422 Carlisle Blvd. NE in Albuquerque on the morning of April 20, 2013. On that day, Paloni drove Alaniz to the bank where Alaniz demanded that the tellers put currency into her duffle bag while holding her hand inside the front pocket of her jacket in a way that suggested that she might be holding a weapon. Paloni drove Alaniz away from the bank, and officers later located the pair at a truck stop in the vicinity of University Blvd NE and Menaul in Albuquerque. The officers were able to recover the money that Alaniz stole from the bank, most of which was in the duffle bag that Alaniz used during the robbery and the remainder was in Paloni’s possession.
Alaniz entered a guilty plea to a bank robbery charge on March 24, 2014, and admitted robbing the bank on April 20, 2013. In her plea agreement, she stated that she drew a beard and mustache on her fact to make herself look like a man before entering the bank.
Paloni plead guilty to a bank robbery charge in July 2013, and was sentenced to 30 months in federal prison followed by two years of supervised release in Oct. 2013.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Charles L. Barth.
16 Charged in Alleged Large Scale Marijuana Trafficking OrganizationRead the Press Release
HOUSTON – A multi-count federal indictment has been unsealed following the arrest of 11 individuals throughout south Texas and the Houston areas, announced United States Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI), and Joseph M. Arabit, special agent in charge of the Drug Enforcement Administration (DEA).
The indictment was returned under seal May 29, 2014, and unsealed upon each arrest yesterday. Those taken into custody are expected to make initial appearances before U.S. magistrate judges in Houston or McAllen today.
“These arrests demonstrate the value of multi-agency collaboration, which is essential to our ability to disrupt and dismantle drug trafficking organizations,” said Arabit. “DEA, HSI and the numerous state and local agencies that worked on this investigation underscore the commitment that enabled us to dismantle this network charged with the distribution of marijuana and other illicit drugs from McAllen to Houston and the transportation of bulk cash from Houston to south Texas.”
The joint DEA/HSI - led investigation into the organization began in March 2011. Since that time, agents have seized approximately 7500 pounds of marijuana and thousands of dollars.
During the course of the arrests, law enforcement also discovered and seized approximately 400 pounds of marijuana and thousands of dollars in U.S. currency as well as several utility trailers, tractors, vehicles and firearms.
“Our collective efforts today under ‘Operation Ranch Hand’ have struck a blow to what we believe is a significant drug trafficking organization operating in south Texas,” said Moskowitz. “Those who bet the ranch on being able to traffic tons of marijuana from the border up through our cities are now feeling the long arm of the law upon them.”
Those taken into custody include Daniel Villarreal Sr., 55, of Conroe; Jose Villarreal aka Mikey, 38, Ishmael Villarreal, 56, Guadalupe Arechiga-Gutierrez aka Lupe, 36, Felipe Licea, 35, and Danny Sandoval aka Capo, 29, all of Sullivan City; Jaime Garcia aka YuYu, 49, of Palmview; Severiano Homero Garza Jr. aka Cuerdas or Borracho, 55, of Rio Grande City; Osvaldo Martinez-Trevino, 42, and Joel Blanco, 31, both of Houston; and Gerardo Flores, 37, of Mission.
Also charged but not as yet in custody are Gilberto Mena-Garcia, aka Yune, 60, and Daniel Garza, 33, both of Mexico; David Isaac Garcia, 43, of Pharr; Erbey Siller aka BiBi, 35, of Mission; and Gerardo Mena, 32, of Pasadena.
Anyone with information about their whereabouts is asked to contact the U.S. Marshals Service at 1-877-WANTED2 (1-877-926-8332), DEA at 1-713-693-3000 or HSI at 1-866-347-2423.
All have been charged with conspiracy with the intent to distribute more than 1000 kilograms of Marijuana. If convicted, they each face a minimum of 10 years and up to life in prison as well as a possible $4 million fine. With the exception of Ishmael Villarreal, Flores and Licea, all are also charged with one or more counts of possession with intent to distribute more than 100 kilograms of marijuana for which they face a mandatory minimum of five and up to 40 years in federal prison and another possible $2 million on each count. Martinez-Trevino is further charged with two counts of distribution of marijuana and faces up to 20 years and a potential $1 million fine, while Ishmael Villarreal and Martinez-Trevino further face a maximum of 20 years upon conviction of conspiracy to launder drug proceeds.
The indictment also includes a notice of forfeiture of 10 properties, including a ranch in Conroe, as allegedly used in the facilitation of drug smuggling or acquired with drug proceeds. The United States is also seeking a money judgment in the amount of $4 million.
The investigation was led by both HSI and DEA as part of the High Intensity Drug Trafficking Area Task Force in Houston and McAllen with the assistance of sheriff's offices in Montgomery, Harris and Hidalgo Counties, Texas Department of Public Safety, Border Patrol, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas National Guard, as well as police departments in Houston, Pasadena, Palmview, Sullivan City, McAllen, Weslaco, San Juan, Pharr, Mission and Rio Grande City. Assistant U.S. Attorney Bertram Isaacs is prosecuting.
A defendant is presumed innocent unless convicted through due process of law."Breaking Bad" Heroin Case Charging DocumentRead the Press Release
U.S. v. Dennis Sica and John Rohlman Complaint
$20,000 Methamphetamine Deal Sends Wichita Man to Federal Prison for 10+ YearsRead the Press Release
WICHITA, KAN. – A Wichita man who sold an undercover buyer a pound of methamphetamine for $20,000 was sentenced Thursday to 121 months in federal prison, U.S. Attorney Barry Grissom said.
Patrick C. Hains, 39, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking.
In his plea, Hains admitted he was arrested Jan. 14, 2014, at Pelican Point Apartments, 2150 N. Meridian, after a Wichita police officer working undercover paid him $20,000 cash for a pound of methamphetamine. Investigators searched Hains’ residence in the 500 block of South Woodchuck and seized a shotgun that he kept behind the front door to protect himself during drug transactions.
Co-defendants include:
Wyatt Leedy, 35, Wichita, who is awaiting trial.
Jose Ramon Montelongo-Castrejon, 28, Wichita, is set for sentencing Aug. 1.Grissom commended the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Wednesday 18 June 2014
York County Man Pleads Not Guilty to Federal Firearms Offenses and Drug TraffickingRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced today that Brandon Dawson, age 29 of York pleaded not guilty today before United States Magistrate Judge Susan E. Schwab in federal court in Harrisburg. A federal grand jury indicted Dawson for distributing heroin and marijuana and possession of firearms on June 11, 2014.
According to United States Attorney Peter Smith, on October 23, 2013, the York County Quick Response Team executed a search warrant at Dawson’s apartment on Cottage Place, York, and allegedly found reinforced doors, surveillance cameras, heroin, marijuana, drug trafficking materials, ammunition, and a stolen firearm. Dawson has a prior federal conviction for drug trafficking and a firearms offense, which makes it unlawful for him to possess a firearm.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and York City Police Department and assigned to Special Assistant United States Attorney David Sunday, of the York County District Attorney’s Office.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is life imprisonment and a term of supervised release following imprisonment and a fine. 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.
Wheeling Resident Sentenced on Firearms ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
WHEELING, WEST VIRGINIA – A 44-year old Wheeling resident was sentenced to prison as a result of a Federal firearms conviction, according to U.S. Attorney William J. Ihlenfeld, II.
Donald L. ELLIS was sentenced to five months in prison and two years of supervised release, with the first five months of the supervised release to be served in a half-way house, for being a prohibited person in possession of a firearm. ELLIS admitted that he possessed a gun in February in Wheeling.
ELLIS had prior convictions in Martin County, Florida, in 1998 for the felony offenses of resisting a law enforcement officer with violence and battery on a law enforcement officer and therefore was prohibited from possessing a firearm. ELLIS was remanded to the custody of the United States Marshal pending designation to a Federal institution. He was sentenced by U.S. District Judge Frederick P. Stamp, Jr.
The case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department.Virginia Man Sentenced to Five Years in Prison for Violent Attack and Sexual Assault at LoungeFor Violent Attack and Sexual Assault at LoungeRead the Press Release
WASHINGTON -Amulraj Arun, 29, of Fairfax, Va., was recently sentenced to five years in prison for a vicious attack he committed last year against a young woman at a lounge in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Arun was found guilty by a jury in March 2014, following a trial in the Superior Court of the District of Columbia, of kidnapping and sexual abuse. He was sentenced on June 6, 2014 by the Honorable Milton C. Lee. Following his prison term, Arun will be placed on three years of supervised release. He also must register as a sex offender for 10 years following his release.
According to the government’s evidence, on the evening of May 30, 2013, the victim and her husband traveled to Washington D.C. by way of New York from their home in San Francisco to attend a college reunion. The victim and her husband met a few friends for dinner before going to the 18th Street Lounge, in the 1200 block of 18th Street NW.
After arriving at the lounge, the victim separated from her friends and husband to find the bathroom. She went up one flight of stairs and encountered Arun, a stranger to her. Arun was leaning against a desk and, though she did not realize it at the time, blocking the bathroom. Arun directed the victim up another flight of stairs, telling her that she would find the bathroom there.
The victim, trusting the defendant, went up the stairs. The upper floor where Arun had directed the victim was dark and dimly lit, and so she took out her cell phone to illuminate the path. The victim felt concerned that the floor was so removed from any other activity in the establishment, and so she also texted her husband, asking him to come upstairs.
Once the victim reached the top of the stairs, Arun raced behind her. He lunged for her, grabbing and squeezing her breast with one hand while wrapping his other arm around her body. Arun wrapped his arms around her neck, choking the victim and cutting off her air supply. He then aggressively tried to drag her into the room he had previously identified to the victim as the bathroom – which was actually a small, dark utility closet. The victim struggled with all her might, wrapping her arms around the bannister at the top of the stairs and clinging to it. She started screaming in the hope that someone would come to her aid.
In response, Arun wrapped his hands around the victim’s mouth to muffle her screams. He continued to choke her and tried to drag her back into the room behind them. The victim continued to fight, kicking out one of the railings below the bannister. Once the railing was dislodged, the victim slid to the floor, her leg sliding between the railings, her foot dangling precariously over the floors below. Arun slid down, too, and he continued to try to drag her back.
The victim’s husband came upstairs, and Arun ran away as the husband came to the victim’s aid. A bouncer, who had heard screaming and went toward the crime scene to investigate, crossed paths with Arun as he fled the lounge. The bouncer pursued the defendant and saw him drop his passport as he ran down the stairs. The bouncer turned the passport over to members of the Metropolitan Police Department (MPD), who were on patrol outside the lounge. Arun was apprehended by the police a short time later in the vicinity of the lounge.
In announcing the sentence, U.S. Attorney Machen commended the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joyce Arthur and Victim Witness Advocate Meshall Thomas. Lastly, he expressed appreciation for the work of Assistant U.S. Attorney Michelle Parikh, who investigated and prosecuted the case.
14-140USA Lynch Interviewed in Documentary About Sex TraffickingRead the Press Release
http://fusion.net/Modern_Life/video/fusion-investigates-pimp-city-full-investigation-778729
http://abcnews.go.com/Nightline/video/inside-americas-secret-neighborhood-brothels-24293507
Two Men Sentenced for Harassing ManateesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Taylor Blake Martin (22, Alabama) and Seth Andrew Stephenson (22, Rockledge) were sentenced today by U.S. Magistrate Judge Gregory J. Kelly. Martin and Stephenson previously pleaded guilty to harassing an endangered species.
Judge Kelly ordered Martin to pay a $3,000 fine, and sentenced him to 175 hours of community service, and 2 years’ probation. Stephenson was ordered to pay a $2,000 fine, and was sentenced to 175 hours of community service, and 2 years’ probation. Martin and Stephenson were also ordered to individually post an apology and a statement of remorse on Facebook.
According to court documents, the U.S. Fish and Wildlife Service became aware of a video posted on Facebook that showed one individual luring two manatees to a dock with a water hose and another individual jump off of a boat dock and “cannonball” an adult manatee and a calf. Further investigation revealed that Martin was the person who “cannonballed” on top of the manatees and Stephenson lured the manatees to the dock with the water hose. The video shows Martin land on the back of the adult manatee as the manatees swim away. Stephenson then begins to use the water hose in an attempt to lure the manatees back as the video ends.
After the video was posted on Facebook, several people commented on it. In response to a post that expressed displeasure with Martin’s actions, Martin responded, “hahaha…in my debue [sic] as tayla the manatee slaya…im f---- ready to cannonball on every manatee living yewwww.”
"The U.S. Magistrate Judge sent a clear message with this sentence that Manatee Harassment is a serious crime which will be dealt with harshly. If there had been evidence of physical damage to the Manatees he would have put them in jail," said Andrew Aloise Resident Agent in Charge for the US Fish and Wildlife Service.
“There’s absolutely no excuse for this type of reckless behavior with any wildlife species, but particularly those that are endangered,” said Ken Warren, U.S. Fish and Wildlife Service spokesperson. “We hope these sentences serve as a reminder of that and as a deterrent to anyone thinking of harassing or bothering, in any way, manatees or any type of wildlife.”
Manatees are protected under the Endangered Species Act and the Marine Mammal Protection Act. They are found in marine, estuarine and freshwater environments.
This case was investigated by the United States Fish and Wildlife Service and the Florida Fish and Wildlife Conservation Commission. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Three Defendants Sentenced to Prison in $3.2M Medicare Fraud SchemeRead the Press Release
SAN FRANCISCO – Patrick Adebowale Sogbein, his wife, Adebola Adefunke Adebimpe, and Eduardo Abad were sentenced yesterday to prison terms of 144 months, 51 months, and 12 months and 1 day, respectively, for conspiracy to commit health care fraud and health care fraud, announced United States Attorney Melinda Haag; David Johnson, Special Agent in Charge of the FBI in San Francisco; and Glenn R. Ferry, the Special Agent in Charge for the Los Angeles Regional Office of Inspector General of the Department of Health and Human Services.
The sentences for Sogbein and Abad also included their convictions for conspiracy to pay and receive kickbacks involving the Medicare program.
Evidence at trial showed that, beginning in approximately December 2006, Sogbein, the owner of Debs Medical Distributors, a Van Nuys, Calif., durable medical equipment company, worked with Edna Calaustro, a San Francisco physician, and street level recruiters, including Abad and Mele Saavedra, to locate Medicare beneficiaries and write bogus prescriptions for expensive power wheelchairs for the beneficiaries. In 2008, after Sogbein had increasing difficulties with Medicare scrutinizing the claims that he submitted, Sogbein and his wife, Adebimpe, began submitting claims through a separate company in Adebimpe’s name, Dignity Medical Supply, a Santa Clarita, Calif., durable medical equipment company. The evidence showed that Sogbein and Edna Calaustro worked with Abad, Saavedra, and others to identify Medicare beneficiaries. Abad and Saavedra recruited beneficiaries at locations in the Tenderloin and South of Market neighborhoods in San Francisco, including a fast food restaurant at the Powell Street cable car turnaround and a Tenderloin neighborhood senior center. After identifying beneficiaries, Calaustro, with Abad or Saavedra, went to the beneficiaries’ homes with a portable copy machine, copied their Medicare cards, and conducted sham examinations to obtain background information for the required Medicare paperwork. Calaustro gave the fraudulent paperwork and bogus prescriptions to Sogbein and Adebimpe. Sogbein and Adebimpe, in turn, created additional fraudulent paperwork in the names of their respective companies and submitted the claims to Medicare. Sogbein paid Calaustro a $100 kickback for each power wheelchair prescription. Sogbein paid Abad and Saavedra $100 and $50 kickback, respectively, for each beneficiary they identified. This scheme continued through July 2011.
From December 2006 through July 2011, Sogbein and Adebimpe were paid more than $1.6 million for over 400 fraudulent power wheelchair claims submitted to Medicare using the bogus prescriptions written by Calaustro, for beneficiaries identified by Saavedra and Abad.
Prior to trial, co-defendants Edna Calaustro and Mele Saavedra, both of San Francisco, pleaded guilty to conspiracy to commit health care fraud, conspiracy to receive kickbacks involving the Medicare program, and health care fraud. Calaustro and Saavedra are scheduled to be sentenced on Aug. 26, 2014.
Sogbein, 61, Adebimpe, 47, both of Santa Clarita, Calif., Abad, 68, Calaustro, 71, and Saavedra, 49, of San Francisco, Calif., were indicted by a federal grand jury on Jan. 26, 2012, for conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349 and health care fraud, in violation of 18 U.S.C. § 1343. On Sept. 19, 2013, a grand jury returned a superseding indictment adding charges against Sogbein, Calaustro, Abad, and Saavedra for conspiracy to pay and receive kickbacks involving the Medicare program, in violation of 18 U.S.C. § 371. Sogbein was remanded into custody following his conviction at trial. Adebimpe, Abad, Calaustro, and Saavedra remain out of custody.
The sentences were handed down today by the Honorable Jeffrey S. White, United States District Court Judge, following their convictions at trial. Judge White also sentenced the defendants to three-year terms of supervised release and ordered payment of restitution and forfeiture. Sogbein and Adebimpe were ordered to pay restitution of $1,577,426 and $1,019,937, respectively, to Medicare and were also ordered to forfeit $1,577,426 and $1,019,937, respectively, to the United States. Abad was ordered to pay restitution of $100,000 to Medicare and was ordered to forfeit the same amount. Defendants Adebimpe and Abad were ordered to begin serving their prison sentences on Aug. 19, 2014.
Denise Marie Barton and Randy Luskey are the Assistant U.S. Attorneys who are prosecuting the case with the help of Assistant U.S. Attorney David Countryman, Beth Margen, and Bridget Kilkenny. The prosecution is the result of an investigation by the FBI in San Francisco and DHHS OIG in Los Angeles.
(Sogbein superseding indictment )
Somerset Oncology Practice and Office Manager Plead Guilty to Food, Drug and Cosmetic Act Offenses Related to Misbranded Cancer Treatment DrugRead the Press Release
LEXINGTON, KY - Hematology and Oncology Center PLLC (HOC) in Somerset, Ky., pled guilty in federal court on Tuesday to charges of knowingly receiving a misbranded cancer treatment drug.
HOC’s former office manager, Natarajan Murugesan, also pled guilty; he admitted to aiding and abetting in the introduction of an unapproved oncology drug into interstate commerce. HOC and Murugesan’s offenses qualify as misdemeanors under the Food, Drug, and Cosmetic Act. The criminal charges stem from a 2014 civil settlement in which HOC, Murugesan, and Dr. N Mullai agreed to pay $2 million, plus interest, to resolve allegations that they violated the False Claims Act by submitting false claims to the Medicare program for misbranded and unapproved chemotherapy drugs that were administered through HOC’s Somerset clinic.
“The Food, Drug and Cosmetic Act establishes a ‘closed’ system of drug manufacturing and distribution to protect the safety of drugs used in the United States,” said U.S. Attorney Kerry Harvey. “Efforts to bypass this system with non-FDA approved foreign source drugs put patients at risk of receiving counterfeit, contaminated, or ineffective medications. The government will continue to prosecute such efforts – particularly when motivated by profit – to minimize the chances of patients receiving unsafe medications, and to ensure that the Medicare program does not pay for unapproved drugs.”
The defendants admitted that, between January 2010 and July 2011, HOC purchased substantial amounts of chemotherapy drugs and other cancer treatment drugs from a foreign distributor in Canada, which was operating under the name Quality Specialty Products (“QSP”). These drugs were sourced from foreign locations including: Turkey, India, the European Union, the United Kingdom, or other unidentified international locations. Often, the drugs arrived at HOC with labeling and dosage instructions in foreign languages. Some of the QSP drugs were distributed with labeling that wasn’t approved by the United States Food and Drug Administration (FDA), and therefore were misbranded. Also, many of these QSP drugs were not the version of the international oncology drug approved by the FDA for distribution within the United States.
Murugesan was responsible for ordering the drugs from QSP. He and HOC purchased the foreign QSP drugs for prices substantially below what drugs from FDA-approved manufacturers and distributors cost. Mullai administered the QSP drugs to her patients, and HOC submitted claims for reimbursement to Medicare, which typically does not cover misbranded or unapproved drugs by the FDA.
The parallel civil and criminal investigation was conducted by the FDA, Office of Criminal Investigation (FDA-OCI), and the plea agreements and settlement resulted from joint efforts of FDA-OCI, the Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the U.S. Attorney’s Office.
HOC and Murugesan are scheduled to be sentenced on October 3, 2014. HOC faces up to five years of probation and a maximum fine of $200,000. Murugesan faces up to one year in prison and a maximum fine of $100,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and other federal statutes.
Sex Offender Pleads Guilty to Producing Child Porn of ToddlerRead the Press Release
Oklahoma City, Oklahoma – Today, ANTHONY RAY SACKETT, 35, of Norman, Oklahoma, pled guilty to producing child pornography, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on January 31, 2014, Sackett used an approximately two-year-old girl to engage in sexually explicit conduct and took pictures of the encounter with his Samsung phone. Sackett then used the phone to transfer the images to others via the Internet. At the time of this offense, Sackett was a registered sex offender due to a 2002 Cleveland County conviction for possession of child pornography.
Due to his prior conviction, Sackett faces a heightened penalty in federal court of 25 years to 50 years in prison. A sentencing hearing will be set by the court in approximately 90 days.
This case is the result of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Los Angeles County Sheriff’s Department in California. The case is being prosecuted by Assistant U.S. Attorney Brandon Hale.
Serial Fraudsters Sentenced to Prison for Scheme Using Medical Patients’ Identities to Fraudulently Obtain MerchandiseRead the Press Release
Stole Personal Identifying Information of over 100 Individual Victims
to Obtain Over $993,000 of Merchandise
Greenbelt, Maryland – U.S. District Judge Ellen L. Hollander sentenced Denise W. Wearing, age 37, of Philadelphia, Pennsylvania, today to seven years in prison followed by five years of supervised release for conspiracy to commit bank fraud and aggravated identity theft in connection with a scheme to obtain merchandise using stolen personal identifying information of medical patients. Wearing also admitted that from November 2011 through June 2012, she received $20,068 in disaster assistance from the Federal Emergency Management Agency after she falsely claimed that she was displaced by Hurricane Irene. Judge Hollander also ordered Wearing to pay restitution of $993,772.43.On June 16, 2014, Judge Hollander sentenced Michelle Jernell Cole, age 28, of Baltimore, to six years in prison followed by five years of supervised release for the same offenses, as well as for an unrelated fraud scheme in which Cole fraudulently received the Social Security benefits of a deceased relative. Judge Hollander ordered Cole to pay restitution of $409,305.53 for the bank fraud scheme and an additional $50,635 in restitution to the Social Security Administration.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to their plea agreements, Michelle Cole’s sister, Chanell Cole, met Wearing between 2004 and 2005 while both were serving fraud-related sentences in the Maryland Department of Corrections. Chanell introduced Michelle to Wearing.
From 2008 through approximately May 2010, Chanell Cole worked for a rheumatologist who had an office at Good Samaritan Hospital in Baltimore. Using her access to the physician’s patient files, Cole unlawfully obtained the personal identifying information (PII) of numerous patients, including names, addresses and social security numbers, which she provided to Wearing.
From 2010 through February 2012, Michelle Cole worked at a medical practice in Laurel, Maryland, where she also stole PII of patients, which she provided to Wearing. After being fired from that practice for reasons unrelated to the PII theft, from February 2012 through February 2013, she worked for a rheumatologist who had an office in Glen Burnie, Maryland. In that position she also fraudulently obtained the PII of numerous patients which she provided to Wearing. Michelle Cole obtained that position after submitting a fraudulent resume in support of her application. Michelle Cole had three previous state convictions for similar conduct.
From 2010 to February 2013, Wearing and other conspirators used the stolen PII to fraudulently open credit accounts and assume control of existing credit accounts at Macy’s, Bloomingdale’s and Nordstrom. The conspirators used the accounts to purchase merchandise in the names of the unknowing victims without intending to pay for the goods. Wearing and other conspirators caused the delivery of the fraudulently obtained merchandise to their own residences, and to the residences of friends and family members, primarily in the Philadelphia, Pennsylvania area. After the merchandise was delivered, Wearing and others drove to the delivery address and picked up the packages, and paid the recipient a fee for having received the packages. The fee was either cash or a previously determined item of merchandise that was part of the delivery.
Once she received the merchandise, Wearing provided it to other members of the conspiracy so that it could be sold for cash, typically for 50% of its retail value, or returned to the retail stores in exchange for gift cards. Wearing provided most of the merchandise to Yolanda Welch for sale and Welch paid Wearing in cash after she completed the sales.
During the course of the scheme, Wearing placed more than 1000 calls to retail stores and delivery services in furtherance of the scheme. Additionally, Wearing caused more than 200 deliveries of fraudulently obtained goods. On some occasions, Wearing sent merchandise to Michelle Cole or Chanell Cole for them to sell to their acquaintances. Both Michelle and Chanell Cole sent cash to Wearing through Western Union transactions and wire transfers through their banks. Wearing had seven previous fraud-related convictions.
Over the course of the scheme, the identities of over 100 individual victims were used to obtain over $993,000 of merchandise.
Chanell Y. Cole, age 31, of Owings Mills, Maryland, and Yolanda Gail Welch, age 39, of Philadelphia, Pennsylvania, pleaded guilty to their roles in the scheme and were sentenced to three years in prison and 33 months in prison, respectively. Judge Hollander ordered Chanell Cole to pay restitution of $32,091.91, and ordered Welch to pay restitution of $993,772.43. Judge Hollander sentenced co-conspirator Linda Nguyen, age 28, of Philadelphia, to one day in prison, followed by four months of home detention as part of five years supervised release, for her role in the conspiracy and ordered Nguyen to pay restitution of $54,399.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation and Macy’s fraud investigators for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Paul Budlow, who prosecuted the case.
Serial Bank Robber Sentenced to More Than 14 Years in Federal PrisonRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges yesterday sentenced Renita Mount Rayner (53, Tampa) to 14 years and 7 months in federal prison for three counts of robbery of a federally insured financial institution and one count of possession of a firearm in furtherance of a crime of violence. The court also ordered Rayner to forfeit $8,028, traceable proceeds of the offenses. Rayner pleaded guilty on February 13, 2014.
According to court documents, on November 12, 2013, Rayner entered an Ocala branch of Alarion Bank, displayed a handgun, and handed a teller a note that read, “Have gun. Will use it. Give me all the money.” Once she had obtained $1,940, Rayner dropped the demand note and fled the bank in a red Honda automobile.
Detectives subsequently identified Rayner’s thumbprint on the recovered demand note. They also confirmed that Rayner’s car matched the description of the getaway vehicle. Days after the robbery, she was arrested on unrelated charges in the Tampa area. At the time of her arrest, Rayner had $1,602 in cash still inside of her purse.
Subsequent investigation showed that Rayner had committed at least two other robberies in the previous three months. On August 7, 2013, she walked into a Grow Financial Credit Union branch, in St. Petersburg. During that robbery, Rayner handed a teller a note that read, “Give me all your money, do not give a dye pack.” After obtaining $3,348, Rayner fled the credit union in the same red getaway car. When surveillance images of the robbery were released to the media, one of Rayner’s long-time friends recognized her as the robber and contacted authorities.
On September 5, 2013, Rayner robbed a Dunedin branch of BB&T bank. In that incident, Rayner handed a note to a bank employee that read, “Give me all your money, I have a gun and I am not afraid to use it.” After taking $2,740, Rayner fled the bank. Investigators ultimately recovered from a nearby trash can the demand note, wig and sunglasses that Rayner had used as a disguise. Rayner’s fingerprints were found on the sunglasses. Her DNA was later identified on the discarded wig.
This case was investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives; the Federal Bureau of Investigation; the Marion County Sheriff’s Office; the Pinellas County Sheriff’s Office; the City of St. Petersburg Police Department; and the State Attorney’s Offices for Marion and Pinellas Counties. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Savannah Man Sentenced for Distributing Child PornographyRead the Press Release
Memphis, TN – Kenneth Wayne Johnson, age 48, of Savannah, Tenn., was sentenced to 121 months in federal prison Tuesday following his guilty plea to one count of distribution of child pornography, announced U.S. Attorney Edward L. Stanton III.
According to the facts alleged in the indictment and revealed during the sentencing hearing, from November of 2011 to July of 2012, Johnson used a peer-to-peer (P2P) file-sharing program on a computer connected to the internet to seek out images of child pornography and download them to his computer. Once the images were downloaded to Johnson’s computer, they became available for download by others using similar programs. On several occasions, undercover law enforcement agents in Virginia, Oklahoma, and Tennessee were able to use such a program to download illicit images from Johnson’s computer. Johnson was downloading the images at his place of employment, copying the images to a thumb drive, and then transferring them to his home computer.
In addition to the prison sentence, U.S. District Judge S. Thomas Anderson ordered Johnson to serve five years of supervised release, forfeit all computers and media containing alleged child pornography, and pay $2,668 in restitution to identified victims depicted in the pornographic images. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations and the Jackson Police Department. Assistant U.S. Attorney Debra Ireland represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”San Francisco Tax Attorney Sentenced to Prison for Failing to Report IncomeRead the Press Release
SAN FRANCISCO – James P. Kleier was sentenced today to serve 12-months in custody for his failure to file tax returns for 2008-2010, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to his plea agreement, Kleier, a practicing tax attorney and partner at Preston, Gates, & Ellis, LLP, from 1999 through 2005, and associate at Reed Smith, LLP, from 2005 through 2010, failed to report any income he earned from 1999 through 2010. According to court documents, for 2008, 2009, and 2010 Kleier earned $624,923, $476,088, and $200,734, respectively. He was ordered to pay past-due taxes to the government in the total amount of $650,993 for 2003, 2008, 2009, and 2010.
“Our tax system is vital to this country and our communities. The defendant, a tax attorney, knew that he was required to file tax returns and pay taxes. This office will continue to work with the IRS to ensure that each person pays his or her fair share,” stated U.S. Attorney Melinda Haag.
Special Agent-in-Charge José M. Martinez said, “The prosecution of individuals who brazenly attempt to avoid their tax filing and payment obligations and prevent the IRS from performing its mission is necessary to maintaining public confidence in our tax system.”
Kleier, of San Francisco, 58, was charged on May 1, 2013, with three counts of failure to file income tax returns. He admitted to failing to file tax returns for several years and pleaded guilty to one count. The sentence was imposed by the Honorable Laurel Beeler, United States Magistrate Court Judge, in San Francisco. Kleier was ordered to self-surrender in September 2014 to start serving his sentence.
Assistant U.S. Attorney Thomas Newman is prosecuting this case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
(Kleier information )
Rochester Man Pleads Guilty to Tax SchemeRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Norman Perry, 51, of Rochester, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa, to making a false claim to the United States and aggravated identity theft. Making a false claim to the United States carries a maximum penalty of five years in prison, a fine of $250,000 or both. Aggravated identity theft carries a mandatory term of two years in prison, to be served consecutively to any sentence imposed on the false claim charge.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant posted advertisements in Rochester claiming that he could find lost or unclaimed funds. Individuals then provided Perry with their name, address and social security number and agreed to pay the defendant a fee, generally in the amount of $300, for each $1,000 check they received. In reality, Perry used the information to prepare and file false and fraudulent tax returns with the Internal Revenue Service, claiming that the individuals had qualified educational expenditures and were entitled to receive the American Opportunity Credit, a refundable tax credit for educational expenses. None of the individuals were students, none had incurred any educational expenditures and none provided such information to Perry.
In addition, the defendant filed a false tax return with the IRS in another individual’s name, and had the check sent to an address in Rochester. The check was subsequently cashed.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service – Criminal Investigations, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
Sentencing is scheduled for October 14th, at 11:00 a.m. before Judge Siragusa.Repeat Bank Robber Handed Significant SentenceRead the Press Release
CORPUS CHRISTI, Texas – Joseph C. M. Krist, 43, of San Antonio, has been ordered to prison for 30 years for bank robbery and using a firearm during the commission of a crime of violence, announced United States Attorney Kenneth Magidson. Krist was convicted by a Corpus Christi federal jury Dec. 12, 2013.
Today, U.S. District Judge Nelva Gonzalez Ramos, who presided over the trial, handed Krist a sentence of 240 months for the bank robbery and a consecutive sentence of 120 months for the firearm charge, resulting in a total 360-month federal prison sentence. In handing down the sentence, Judge Ramos noted the need to protect the public. Krist will also be required to serve a term of five years of supervised release following completion of the prison term.
Joseph C. M. Krist was found to have committed the bank robbery of the IBC Bank on corner of Everhart and Burney in Corpus Christi on Jan. 13, 2013. He entered the bank wearing a grey hoodie and green shirt sleeve covering the lower portion of his face while brandishing a .40 caliber pistol at employees.
Evidence demonstrated that Krist was a prior convicted bank robber both in state and federal court. At the time of the IBC bank robbery, he was wanted by the authorities for violations of his state parole and federal supervised release.
Authorities located him at a campground in Uvalde three days after the robbery. At the time of his arrest, Krist was found in possession of a large amount of cash and a .40 caliber handgun as well as the grey hoodie and a green t-shirt missing a single shirt sleeve.
Krist had initially admitted to the robbery. At trial, however, he contended he was not present at the robbery, but he refused to identify the actual robber. The jury deliberated for approximately four hours before finding him guilty as charged.
Krist will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by FBI with the assistance of the U.S. Marshals Service and Corpus Christi Police Department and is being prosecuted by Assistant United States Attorney Lance Duke.
Pittsburgh Man Facing Drug ChargeRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The one-count indictment returned on June 17 named Jerome Johnson, 36, as the sole defendant.
According to the indictment, on or about Feb. 26, 2014, Johnson possessed with the intent to distribute a quantity of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Katherine A. King and Craig Haller are prosecuting this case on behalf of the government.
A task force led by the Drug Enforcement Administration conducted the investigation leading to the indictment in this case. The task force also included several other federal, state, and local agencies from multiple states, including the Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Pennsylvania State Police, the Allegheny County District Attorney’s Office, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Penn Hills Police Department, the Monroeville Police Department, and the McKees Rocks Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Illegally Possessing Heroin, Gun and AmmoRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of violating various federal laws, United States Attorney David J. Hickton announced today.
The three-count indictment named Tony Gay, 24, currently incarcerated, as the sole defendant.
According to the indictment, on Nov. 6, 2013, Mr. Gay possessed with intent to distribute 100 grams or more of heroin, unlawfully possessed a Glock 9mm pistol and ammunition, and possessed that firearm in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence of up to 40 years in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Police, and the Pennsylvania Board of Probation and Parole 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.
Philadelphia Woman Alleged to Have Fraudulently Applied for Hurricane FundsRead the Press Release
Kia Arthur, 41, of Philadelphia, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant applied for and received Federal Emergency Management Agency (“FEMA”) benefits, alleging that she had been displaced from her home as a result of Hurricane Irene. The Information alleges that the representations in the defendant’s application to FEMA were false, and that, in fact, she was never displaced from her primary residence. The defendant’s alleged actions resulted in a loss to the government of approximately $18,413.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three year period of supervised release, restitution to the government of $18,413, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Department of Homeland Security, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
An Information 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, 215-861-8525Operator of Hazelton Business Indicted in Stolen Identity Tax Refund Fraud CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rafael Sanchez, 50, formerly of Hazleton, was charged yesterday by a federal grand jury in Scranton in a 43-count Indictment with conspiracy in respect to claims, false claims, theft of public money, aggravated identity theft, conspiracy to commit wire fraud, and conspiracy to commit an offense against the United States. The charges are felonies with each charge carrying a maximum possible prison sentence of between 5 and 20 years.
According to U.S. Attorney Peter Smith, the Indictment alleges that Sanchez operated a business under the name of Sanchez Multi Service in Hazleton and that, from 2011 to 2014, Sanchez and others not named in the indictment used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns. The Indictment alleges that Sanchez deposited and cashed fraudulently obtained tax refund checks totaling hundreds of thousands of dollars. Sanchez is also alleged to have conspired to make false statements to a federal firearms dealer in connection with the purchase of a firearm.
Sanchez was arrested in January 2014 and is currently on pre-trial release.
The charges are the result of an on-going investigation by the Scranton Office of the Internal Revenue Service, Criminal Investigation. The IRS received assistance in the investigation from the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Hazleton City Police Department.
The case is assigned to Assistant United States Attorney William Houser for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a fine. 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.
Ohio Couple Plead Guilty in Extortion CaseRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A husband and wife from Ohio admitted to extorting nearly a million dollars from a woman who had embezzled the money from a West Virginia college, according to United States Attorney William J. Ihlenfeld, II.
Jason Kirkland Weese, age 31, and his wife, Rachaelle Marie Weese, age 26, pleaded guilty today in Federal court to “Extortion”, admitting that they used fear and the threat of force to cause Shelly Lough to provide them with large amounts of cash that Lough took from her former employer, Bethany College. Jason Weese also pleaded guilty to “Money Laundering” as a result of his purchase of a 2013 Chevrolet Camaro with a portion of the cash he received from Lough.
The Weeses, who both are from East Liverpool, Ohio, admitted to using the money received from Lough to purchase a 2013 Mitsubishi Sport Utility Vehicle, a 2013 Honda All-Terrain Vehicle, as well as large amounts of prescription drugs.
Evidence introduced at the plea hearings established that Lough had exchanged sexually explicit messages and images with Jason Weese. The Weeses then threatened to turn over the images and messages to Lough’s husband if Lough did not comply with the demands for cash. Lough complied until she lost her job at the college, and when she could no longer pay the Weeses, Jason Weese threatened to burn down her Ohio County home.
Lough was prosecuted on State charges and was convicted of embezzlement and falsification of accounts in Brooke County (W.Va.) Circuit Court, admitting to the theft of $1,038,000.00 from Bethany.
Jason Weese faces up to 40 years in prison as a result of his convictions, and Rachaelle Weese faces up to 20 years. The Weeses are required to make full restitution to Bethany College. Part of the restitution will be satisfied through the liquidation of motor vehicles acquired by the Weeses and seized by the U.S. Attorney’s Office.
U.S. Attorney Ihlenfeld handled the matter on behalf of the government. The case was investigated by the Federal Bureau of Investigation and the Brooke County Sheriff’s Department. U.S. Magistrate Judge James E. Seibert presided.
Office Worker Pleads Guilty in Miami for Role in $7 Million Health Care Fraud SchemeRead the Press Release
An office worker pleaded guilty today in connection with a health care fraud scheme involving Anna Nursing Services Corp. (Anna Nursing), a 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 Brian Martens of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Lizette Garcia, 37, of Miami, Florida, pleaded guilty before U.S. District Judge Joan A. Lenard in the Southern District of Florida to one count of payment of health care kickbacks. Sentencing is scheduled for Aug. 27, 2014.
Garcia was an office worker at Anna Nursing, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. According to court documents, Anna Nursing was operated for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were medically unnecessary and/or were not provided.
On behalf of the owners and operators of Anna Nursing, Garcia paid kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Anna Nursing for home health care and therapy services that were medically unnecessary and/or were not provided. Anna Nursing then billed the Medicare program on behalf of the recruited patients, which Garcia knew was in violation of federal criminal laws.
From approximately October 2010 through approximately April 2013, Anna Nursing was paid by Medicare approximately $7 million for fraudulent claims for home health care services that were medically unnecessary and/or were not provided.
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 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 more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, has removed over 17,000 providers from the Medicare program since 2011.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Office Worker Pleads Guilty in Miami for Role in $7 Million Health Care Fraud SchemeRead the Press Release
An office worker pleaded guilty today in connection with a health care fraud scheme involving Anna Nursing Services Corp. (Anna Nursing), a 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 Brian Martens of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Lizette Garcia, 37, of Miami, Florida, pleaded guilty before U.S. District Judge Joan A. Lenard in the Southern District of Florida to one count of payment of health care kickbacks. Sentencing is scheduled for Aug. 27, 2014.
Garcia was an office worker at Anna Nursing, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. According to court documents, Anna Nursing was operated for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were medically unnecessary and/or were not provided.
On behalf of the owners and operators of Anna Nursing, Garcia paid kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Anna Nursing for home health care and therapy services that were medically unnecessary and/or were not provided. Anna Nursing then billed the Medicare program on behalf of the recruited patients, which Garcia knew was in violation of federal criminal laws.
From approximately October 2010 through approximately April 2013, Anna Nursing was paid by Medicare approximately $7 million for fraudulent claims for home health care services that were medically unnecessary and/or were not provided.
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 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 more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, has removed over 17,000 providers from the Medicare program since 2011.
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.