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30 July 2014
Interlachen Man Sentenced to More Than 7 Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan yesterday sentenced Franklin Stuart King (40, Interlachen) to 7 years and 6 months in federal prison for receiving child pornography over the Internet. He was also ordered to serve a life term of supervision and register as a sex offender upon his release from prison. King has been in the custody of the U.S. Marshals Service since his arrest on October 10, 2013.
According to court documents, an agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Jacksonville began an investigation to identify individuals in that area that had access to and/or were trading images and videos depicting child pornography over the Internet. Using specialized software, the agent determined that a host computer using an Internet Protocol (IP) address in Putnam County was hosting images of child pornography using a file-sharing program. The agent made a successful connection to this host computer over the Internet and downloaded several images that depicted child pornography.
Further investigation revealed that the subscriber information traced back to King’s residence in Interlachen. Subsequently, HSI agents and other officers executed a federal search warrant at King’s residence. Agents seized, among other things, King’s computer and other items of electronic media. A forensic analysis of King's computer media revealed that it contained a total of 808 images that featured the sexual abuse of minor children.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, the Putnam County Sheriff’s Office, the Bradford County Sheriff’s Office, and the United States Marshals Service. It was prosecuted by Assistant United States Attorney D. Rodney Brown. It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Immigration Attorney Sentenced for Bribing an Immigration OfficialRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced attorney Kiran Dewan, age 60, of Woodbine, Maryland today to two years in prison, followed by three years of supervised release, for bribing a public official. Judge Quarles also ordered Dewan to forfeit $50,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.Dewan operated the Law Offices of Dewan and Associates, P.C., located at 7100 Security Boulevard in Windsor Mill, Maryland. He held himself out as having experience handling immigration matters and as a certified public accountant.
According to his plea agreement and court documents, from March 2011 to May 2013, Dewan conspired with clients, including Mohammad Khan, Narayan Thapa and Amjad Israr, to bribe an immigration official to provide immigration documents and benefits which would permit the clients to legally live and work in the United States. Unknown to Dewan and the clients, the immigration contact was actually an undercover agent posing as a public official. Dewan’s clients paid $170,000 in cash to Dewan to bribe the “public official,” of which Dewan kept $50,000. In return for the bribes, the purported public official provided green cards for the clients.
Additionally, in March 2011, Dewan offered to pay the purported public official $5,000 to have a foreign national removed from the United States. Dewan believed that the foreign national was going to start his own accounting business and compete with Dewan. The purported public official pretended to issue the notice to appear before an immigration judge, although in reality the USCIS had already decided to issue this notice independently. Dewan paid the $5,000 bribe in May 2011.
In the fall of 2011, Dewan offered to pay the purported public official another $5,000 to remove and add documents to the foreign national’s USCIS files. Dewan explained that he had previously submitted false tax returns to USCIS in support of the foreign national’s employment visa application and wanted those false tax returns replaced with new tax returns. In November, the purported public official pretended to provide the requested tax returns and Dewan subsequently paid the additional $5,000 bribe.
In 2012, Dewan spoke extensively about his knowledge of establishing an overseas hawala to transfer the purported public official’s alleged bribery profits. A hawala allows an individual to transfer money overseas using personal connections, without the money going through traditional government monitored means like money transfer services or banks. Dewan stated that he had previously used this hawala method for other clients, including a $400,000 transfer via a reverse hawala method.
Mohammad Khan, age 59, a citizen of Pakistan living in Baltimore who operated Pizza City in Brooklyn Park, Maryland, previously pleaded guilty to immigration fraud and was sentenced to a year and a day in prison.
Amjad Israr, age 47, a Pakistani citizen living in Cheshire, Connecticut, who operated many convenience stores in Connecticut, previously pleaded guilty to conspiring to bribe an immigration official in order to obtain lawful permanent residence (green card) and employment authorization documents. Judge Quarles sentenced Israr to 15 months in prison. Narayan Thapa, age 52, a citizen of Nepal residing in Baltimore, also pleaded guilty to his role in the conspiracy and awaits sentencing.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department and USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Gregory R. Bockin, who prosecuted the case.
Idaho Resident Pleads Guilty to Social Security TheftRead the Press Release
BOISE - Melinda Sue Priddy, 43, of New Meadows, Idaho, pleaded guilty today to theft of $138,910.00 from the Social Security Administration, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Priddy’s grandmother died in May 2004. At the time of her death, Priddy’s grandmother was receiving survivor benefits from the Social Security Administration, which were being deposited on a monthly basis into a bank account held jointly with Priddy. No one notified Social Security of the death, and the Social Security Administration continued to make monthly deposits into the account. Priddy, who was not entitled to receive any of her deceased grandmother’s Social Security benefits, withdrew those funds from the account from July of 2004 through May of 2013 for her own personal use, stealing a total of $138,910.00 from the Social Security Administration.
The charge carries a maximum punishment of up to 10 years in prison, a fine up to $250,000, and a minimum term of three years of supervised release.
Sentencing is scheduled for October 20, 2014, before Chief U.S. District Judge B. Lynn Winmill in Boise.
The case was investigated by the Office of Inspector General for the Social Security Administration.
IceoPlex Owner Charged with Tax ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of tax violations, United States Attorney David J. Hickton announced today.
The 11-count indictment, returned on July 29, named Steven J Lynch, 59, as the sole defendant.
According to the indictment, between 2004-2011, Lynch impeded collection of payroll taxes under the Internal Revenue Code in connection with the operation of the IceoPlex at Southpointe, located in Canonsburg, Washington County. The indictment alleges that payroll taxes were underpaid by various business entities controlled by Lynch in the total amount of approximately $1 million during the years 2008-2010.
The law provides for a maximum total sentence of 53 years in prison, a fine of $2,750,000 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 James Y. Garrett is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, Special Agent Paul Bauer 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.
Husband and Wife Arrested on Federal Fraud ChargesRead the Press Release
GREENSBORO, N.C. – Sandy and Casey Parsons were arrested today on a federal criminal indictment charging them with fraud, announced Ripley Rand, United States Attorney for the Middle District of North Carolina. The 76-count criminal indictment was unsealed today following the couple’s arrest by FBI and IRS-CI agents in Fayetteville, N.C.
The indictment alleges that, from February 2010 to August 2013, Sandy Parsons, 40, and Casey Parsons, 39, committed tax fraud, mail fraud, theft of government funds, and identity theft, and engaged in a conspiracy to defraud the government. The indictment alleges that the Parsons received government funded adoption assistance, Medicaid, Social Security, and Food and Nutrition Services benefits for a dependent that did not live with them and used the mail to commit the fraud. The indictment also alleges that Casey Parsons fraudulently used the identities of other persons as dependents and used other false information when preparing federal tax returns.
Sandy and Casey Parsons are charged with one count of conspiracy to defraud the government, which carries a maximum sentence of five years in prison and a $250,000 fine; twenty counts of theft of government funds, each of which carries a maximum sentence of five years in prison and a $250,000 fine; and twenty counts of mail fraud, each of which carries a maximum sentence of twenty years in prison and a $250,000 fine.
The indictment also charges Sandy Parsons with one count of aggravated identity theft, which carries a mandatory sentence of two years, consecutive to any other sentence, and a $250,000 fine; and one count of false statement to a government agency, which carries a maximum sentence of two years in prison and a $250,000 fine.
Casey Parsons is also charged with one count of false pretense in a health care matter, which carries a maximum sentence of five years in prison and a $250,000 fine; two counts of Social Security fraud, each of which carries a maximum sentence of five years in prison and a $250,000 fine; fifteen counts of aggravated identity theft, each of which carries a mandatory sentence of two years, consecutive to any other sentence, and a $250,000 fine; two counts of false statement to a government agency, each of which carries a maximum sentence of five years in prison and a $250,000 fine; six counts of aiding in the preparation of a false tax return, each of which carries a maximum sentence of three years in prison and a $250,000 fine; six counts of 2 wire fraud, each of which carries a maximum sentence of twenty years in prison and a $250,000 fine; and one count of making false claim against the government, which carries a maximum sentence of five years in prison and a $250,000 fine.
Sandy and Casey Parsons are scheduled to have their initial appearance at 2:30 p.m. today in U.S. District Court in Winston-Salem.
The case was investigated by the Rowan County Sheriff’s Office, the Federal Bureau of Investigation, and Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Anand Ramaswamy.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Houston Man Guilty of Beaumont Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher M. Carmon Thomas pleaded guilty to bank robbery on July 29, 2014 before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, on June 3, 2014, Thomas entered the Wells Fargo Bank on Gladys Avenue in Beaumont, Texas and presented the bank teller with a demand note. During the robbery, Thomas displayed a gun tucked into his pants by lifting his shirt. Thomas fled the bank with $2,309.00. Surveillance camera photographs were disseminated by the media and Thomas was identified by citizen tipsters and the victim bank teller. Thomas was taken into custody in Houston on June 25, 2014.
Thomas faces up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.
###Harrisburg Woman Sentenced to Prison for Making False Claims to the IRSRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that Stephanie A. Metz, age 25, of Harrisburg, Pennsylvania, was sentenced to serve a year in prison and pay $57,216.22 to the IRS for her role in a conspiracy to submit 33 fraudulent income tax returns to the IRS requesting $242,095 in fraudulent tax refunds for the years 2010 and 2011. U.S. District Court Judge Yvette Kane ordered that Metz surrender to the Bureau of Prisons on August 25, 2014 to commence serving her sentence.
According to U.S. Attorney Peter Smith, Metz provided a co-conspirator with addresses where the fraudulent income tax refund checks could be delivered by mail and was paid a fee for each refund check she delivered to her co-conspirator. For the tax years 2010 and 2011, Metz provided addresses for 33 fraudulent income tax returns requesting $242,095 in fraudulent tax refunds. The IRS paid out $57,216 to the co-conspirator before the scheme was detected in early 2012.
The investigation is part of a project known as Operation Mass Mail involving the filing of hundreds of thousands of false returns using stolen identity information of residents of Puerto Rico. The investigation was conducted by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler.
****Grand Prairie, Texas Man Sentenced for Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 44-year-old Grand Prairie, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Daniel Martinez pleaded guilty on Jan. 28, 2014 to conspiracy to distribute narcotics and was sentenced to 87 months in federal prison on july 28, 2014 by U.S. District Judge Marcia Crone.
According to information presented in court, in May 2010, Martinez became involved in a conspiracy to distribute marijuana and cocaine in the Eastern District of Texas. Martinez used cellular telephones to conduct coded conversations about drug trafficking activity with various co-conspirators. Martinez admitted responsibility for distributing approximately 900 kilograms of marijuana.
On May 12, 2011, a federal grand jury returned a seven-count second superseding indictment against Martinez and 15 co-defendants, charging them with numerous federal drug trafficking conspiracy and firearm violations.
Twelve co-defendants have pleaded guilty and been sentenced as follows:
- Armando Basaldua – sentenced to 57 months
- Paola Alonso – sentenced to 21 months
- Armando Iniguez – sentenced to 6 months
- Guadalupe Patricia Rangel-Salazar – sentenced to 71 months
- Jorge Enrique Perez-Solis – sentenced to 71 months
- Diego Hernandez – sentenced to 57 months
- Daniel Hernandez-Gutierrez – sentenced to 69 months
- Jose Frederico Flores – sentenced to 262 months
- Orthon Carranza Rodriguez – sentenced to 30 months
- Jonathan Belen Lugo – sentenced to 24 months
- Juan Antonio Roslaes – sentenced to 60 months
- Oscar Omar Guerra-Moreno – sentenced to 6 months
- Guadalupe Chavez-Figueroa – sentenced to 60 months
Two additional defendants, Eliezer Aleman and Luis Enrique Arguero, are currently fugitives from justice.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation and Homeland Security Investigations.
Georgia Man Sentenced to Prison for Counterfeit Check Cashing SchemeRead the Press Release
PITTSBURGH - A Georgia resident has been sentenced in federal court to 27 months incarceration and three years supervised release on his conviction of conspiracy to make and utter counterfeit securities, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Brandon Roseberry, 24, of Snellville.
According to the information presented to the court, Roseberry conspired with others to recruit persons to negotiate counterfeit checks at banks in Western Pennsylvania in October 2011, causing losses of nearly $130,000 to local banks.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Roseberry. The WPFCTF was established as a collaborative, multi agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Four Farmer's Co-op Employees Indicted for Falsifying Harvest Load WeightsRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted four employees of a north Alabama farmer's cooperative for making false statements to the U.S. Department of Agriculture, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell and U.S. Department of Agriculture, Office of Inspector General-Investigations, Special Agent in Charge Karen Wilcox-Citizen.
In separate indictments filed in U.S. District Court, the grand jury charged AARON BLAKE WILLIAMS, 25, and TYLER THOMAS GLAZE, 26, both of Decatur, JAMES EDWARD TOON JR., 35, of Elkmont, and JOSHUA WAYNE HOLT, 32, of Hartselle, with falsifying certifications of harvest load weights from August 2009 to March 2013 at the Alabama Farmer's Cooperative in Decatur.
The maximum penalty for making false statements to the government is five years in prison and a $250,000 fine.
The Secret Service and USDA, OIG, investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Former Police Officer Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDREW W. NIELSEN, 50, of South Windsor, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 24 months of imprisonment, followed by five years of supervised release, for possessing child pornography.
According to court documents and statements made in court, between November 2010 and April 2011, NIELSEN purchased several DVDs containing child pornography from a foreign company and had them shipped to his residence. NIELSEN was arrested on November 1, 2012. On that date, law enforcement searched NIELSEN’s residence and seized several of the DVDs that he had ordered.
NIELSEN was a police officer with the East Hartford Police Department at the time of the offense. He resigned from the department after his arrest.
On March 25, 2014, NIELSEN pleaded guilty to one count of possession of child pornography.
NIELSEN, who has been released on bond under electronic monitoring by the U.S. Probation Office since November 2012, was ordered to report to prison on September 8, 2014.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Neeraj N. Patel and Special Assistant U.S. Attorney Charles Rombeau.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
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(203) 821-3722 [email protected]Former Midwestern Intermediate IU4 Official Pleads GuiltyRead the Press Release
PITTSBURGH - A resident of Grove City, Pennsylvania, pleaded guilty in federal court to a charge of theft concerning a program receiving federal funds, United States Attorney David J. Hickton announced today.
Cecelia H. Yauger, age 56, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around January 2012, to in and around December 2012, Yauger, being an agent of the Midwestern Intermediate Unit IV (“IU4”), did knowingly steal property worth at least $5,000, which was owned by and under the custody and control of IU4.
Judge Conti scheduled sentencing for Nov. 14, 2014 at 3 p.m. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, and the United States Department of Education, Office of Inspector General conducted the investigation that led to the prosecution of Cecelia H. Yauger.
Former Letter Carrier Sentenced for Illegally Destroying MailRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Daniel Brautlacht, 20, of Cheektowaga, N.Y., who was convicted of delay or destruction of mail, was sentenced to time served by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney, Russell T. Ippolito, Jr., who handled the case, stated that the defendant started working for the United States Postal Service (“USPS”) as a city carrier assistant on March 9, 2013. In this position, Brautlacht was responsible for delivering letters, postal cards, packages, bags or mail on behalf of the USPS.
The sentencing is the culmination of an investigation on the part of the U.S. Postal Service, Office of Inspector General, Eastern Area Field Office, under the direction of Special Agent in Charge Monica Weyler.
On March 21, 2013, while delivering mail on Davey Street in the City of Buffalo, the defendant unlawfully secreted and destroyed 31 pieces of mail, including nine pieces of First Class mail. A neighbor on Brautlacht’s route observed the defendant discard the mail into a garbage receptacle. According to admissions made by Brautlacht, the mail had become jumbled and disorganized. Rather than re-ordering the mail, the defendant discarded it. Brautlacht committed these acts less than two weeks after starting work at the USPS.Former Employee of a U.S. Construction Company Working in Afghanistan Pleads Guilty to Receiving Illegal KickbackRead the Press Release
A former project manager of a U.S. construction company working on U.S. government contracts in Afghanistan who solicited a $60,000 kickback from an Afghan subcontractor pleaded guilty today in federal court in Tucson, Arizona.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John S. Leonardo of the District of Arizona made the announcement.Robert L. Bertolini, 67, of Arivaca, Arizona, pleaded guilty to one count of conspiracy to commit wire fraud and receive an illegal kickback. He is scheduled to be sentenced on Oct. 8, 2014.
According to court documents, Bertolini worked for a construction company that received a U.S. Army Corps of Engineers contract to build a forward operating base for the Afghan National Army in Kabul Province, Afghanistan. The company for which Bertolini worked entered into a subcontract with an Afghan construction company. Shortly after the subcontract was awarded in the spring of 2011, Bertolini solicited personal financial benefits from the subcontractor, including a $60,000 kickback and employment for his son. On May 11, 2011, the subcontractor’s vice president wired approximately $59,975 from Afghanistan to Bertolini’s son’s bank account in Ohio. In return, Bertolini approved two modifications on the subcontract – for which Bertolini did not have actual approval from his company – that were worth $980,000 and $680,000 respectively.
This case is being investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, the Defense Criminal Investigative Service and the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit. This case is being prosecuted by Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Zipps of the District of Arizona.Former Director of Pop Warner Sentenced to 27 Months in Prison for Stealing Hundreds of Thousands of Dollars from the OrganizationRead the Press Release
TRENTON, N.J. – The former regional director of the Eastern Region of Pop Warner Little Scholars Inc. (Pop Warner) was sentenced today to 27 months in prison for stealing hundreds of thousands of dollars from the organization and using the funds for his personal benefit, U.S. Attorney Paul J. Fishman announced.
David Marshall, 58, of Jackson, New Jersey, previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with one count of wire fraud. Judge Pisano imposed the sentence today in Trenton federal court.
According the documents filed in this case and statements made in court:
Between 2005 and 2011, Marshall performed work for Pop Warner on a voluntary basis and held various positions. From 2006 through 2011, Marshall was the regional director for the Eastern Region of Pop Warner. He was responsible for handling the finances of the Eastern Region and had access to its bank and credit card accounts. Marshall used his authority to steal hundreds of thousands of dollars from Pop Warner. He improperly used funds from Pop Warner bank accounts to pay off personal debts and make cash withdrawals. Marshall also used a Pop Warner credit card to purchase personal items and other things unrelated to Pop Warner.
In addition to the prison term, Judge Pisano sentenced Marshall to three years of supervised release, ordered to pay $559,841 in restitution and forfeit $559,841.
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 today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.14-272
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, TrentonFormer Connecticut Resident Charged with Running Iraq Business Opportunity Investment SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging JOSEPH T. MORRIS, 51, of Fort Lauderdale, Fla., formerly of Connecticut, with defrauding the co-founders and investors of his Wilton-based company out of approximately $175,000. The indictment was returned on July 1, 2014, and was unsealed yesterday during MORRIS’s arraignment before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport.
According to the indictment, MORRIS and two other individuals formed a company in October 2011 to develop business opportunities in Iraq. The company’s initial focus was on establishing a pizza restaurant at the U.S. Consulate compound in Erbil, Iraq, and establishing a business to distribute and install specialty window film on vehicles and at hotels, residences, and government buildings, which would protect windows and windshields from blast and breakage, and provide heat retention, ultra-violet shielding, and privacy. MORRIS was the company’s in-country manager in Iraq.
The indictment alleges that MORRIS made numerous fraudulent representations to his co-founders regarding the restaurant and the window film business, knowing that the representations would be communicated to potential investors to induce them to invest in the company. Through the use of fraudulent emails and photographs, MORRIS falsely represented that a lease had been signed to establish a pizzeria on the U.S. consulate compound in Erbil, that renovations were underway, and that progress was being made toward completing renovations and opening the restaurant. MORRIS also falsely represented that the company had an exclusive arrangement with a specialty window film manufacturer to distribute and install the window film in all of Iraq. Based on these misrepresentations, MORRIS caused approximately a dozen investors, most of whom were U.S. military veterans, to invest approximately $175,000 in the company. Instead of using the money from investors to pay for legitimate business expenses, MORRIS diverted large sums of money for his own personal use.
The alleged scheme collapsed in late April to early May 2012 when one of the co-founders discovered that the company did not have a lease or agreement to open and operate a pizza restaurant at the U.S. consulate compound in Erbil and that the company did not have an exclusive arrangement with a window film manufacturer to distribute and install specialty window film in Iraq.
The indictment charges MORRIS with five counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the U.S. Secret Service, the Wilton Police Department, and the Connecticut Financial Crimes Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
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(203) 821-3722 [email protected]Former Buffalo Police Officer Sentenced for Mail FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that former Buffalo Police Officer Johnnie Fritz, 49, of Buffalo, N.Y., who was convicted of mail fraud, was sentenced to 10 months home confinement by Chief U.S. District Court Judge William M. Skretny. The defendant was also ordered to pay restitution in the amount of $6,400 to victims.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the prosecution, stated that between April 20, 2009, and June 9, 2009, Fritz conspired with another individual to defraud State Farm Automobile Insurance Company (“State Farm”) by inflating a claim for automobile insurance policy proceeds. The defendant assisted the co-conspirator in making a claim with State Farm following the theft of the co-conspirator’s automobile, a 2003 Cadillac CTS. The claim included two fraudulent receipts. One of the receipts falsely indicated that new tire rims had been added to the vehicle and the other receipt falsely indicated that a new muffler had recently been installed on the vehicle. The two false receipts inflated the value of the vehicle by more than $3,000.
Fritz made three other unrelated false claims for automobile insurance policy proceeds involving three other vehicles.
In addition to the false claims for insurance, the defendant also abused his position as a police officer with the City of Buffalo Police Department. In October 2009, Fritz unlawfully opened a New York State Department of Motor Vehicles (“DMV”) account that enabled him to search DMV databases at no charge. Only law enforcement officials could open a DMV no-fee account like the one opened by Fritz.
The defendant was previously convicted in Buffalo City Court on June 9, 2011, for Attempted Grand Larceny in the 4th Degree, a misdemeanor, and failure to keep records under the New York State Tax Law, a misdemeanor, for his failure to pay State of New York sales tax receipts related to his automobile dealership.
The sentencing is the culmination of an investigation on the part of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, NYS Department of Motor Vehicles, under the direction of Director Barbara Fiala, NYS Department of Taxation and Finance, Criminal Investigations Division, under the direction of Commissioner Thomas Mattox, the NYS Department of Financial Services, under the direction of Superintendent Benjamin Lawsky, Criminal Investigations Division, and the Federal Bureau of Investigation.Former Bank Employee Pleads Guilty to Bank FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Patricia Margaret Drake (24, Jacksonville) today pleaded guilty to three counts of bank fraud. She faces a maximum penalty of 30 years in federal prison for each count. A sentencing date has not yet been set. Drake was indicted on May 7, 2014.
According to court documents, on December 5, 2013, a Wells Fargo Bank customer in Jacksonville contacted the bank in order to discuss his concerns regarding unauthorized withdrawals from his bank account. After an internal review of the matter, Wells Fargo Bank identified a series of fraudulent withdrawals from the victim’s bank account. Drake, a Wells Fargo Bank employee, was identified as the teller who had handled every fraudulent withdrawal.
The investigation revealed that the victim was not present in the bank branch on the days when the withdrawals took place, including days when withdrawals were made by counter withdrawal slips. U.S. Secret Service agents later interviewed Drake about the fraudulent bank withdrawals. Drake stated that while using the victim’s bank account number, she made multiple unauthorized withdrawals from the victim’s bank account. Drake also stated that she was not sure how many transactions were completed or the total amount of money stolen from the victim’s account. She did not think the victim would notice the withdrawals quickly because he had a larger account balance.
This case was investigated by United States Secret Service. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Former Arkansas State Police Lieutenant Pleads Guilty to Drug ConspiracyRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Colonel Stan Witt, Director of the Arkansas State Police (ASP), announced today that former Arkansas State Police Lieutenant Sedrick L. Reed, age 44, entered a plea of guilty to conspiracy to distribute and to possess with intent to distribute a controlled substance in the August 7, 2013 indictment in United States v. Sedrick L. Reed. The charge stemmed from an investigation by the Federal Bureau of Investigation’s ArkTrust Public Corruption Task Force with the full cooperation of the Arkansas State Police. The investigation was also referred to as Organized Crime and Drug Enforcement Task Force (OCDETF) operation “Diverted Justice.”
“Today, Sedrick L. Reed, a former Arkansas State Police lieutenant, admitted his guilt to a cocaine distribution conspiracy. An investigation of this nature is challenging to conduct. I commend the FBI and the Arkansas State Police for their diligence and cooperation to fully investigate this case even though it was another law enforcement official,” stated Thyer. “Citizens of the Eastern District of Arkansas deserve to know that their law enforcement members are trustworthy law abiding citizens and when they are not, they will be held accountable for their illegal actions.
Reed pleaded guilty to participating in a conspiracy to distribute and to possess with intent to distribute controlled substances. The United States dismissed the remaining four counts against the defendant upon acceptance of the guilty plea. Reed faces a potential sentence of not less than 10 years and up to life imprisonment; not less than 5 years and up to life supervised release; up to a $10 million fine, and a $100 special assessment. Reed also agreed to the forfeiture of bank accounts, real property, firearms, vehicles, and more than $30,000 in cash constituting proceeds of his illegal conduct.
At his plea hearing before U.S. District Court Judge Billy Roy Wilson in open court, Reed admitted to participating in a conspiracy to distribute between five and fifteen kilograms of cocaine between 2006 and 2013. Reed admitted that he abused a position of public trust in a manner that significantly facilitated the conspiracy. Reed also admitted to possessing a firearm during the conspiracy. Reed admitted to diverting drugs from a traffic stop and taking drugs from the ASP evidence locker. Reed further admitted that during the course of the conspiracy, Reed profited in excess of $200,000 from the resale of these stolen drugs.
The investigation was conducted by the FBI’s ArkTrust Public Corruption Task Force. It is being prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
The remaining defendant in the indictment, Lamont Johnson, is set for trial before Judge Wilson on October 7, 2014.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Former Arkansas State Police Lieutenant Pleads Guilty to Drug ConspiracyRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Colonel Stan Witt, Director of the Arkansas State Police (ASP), announced today that former Arkansas State Police Lieutenant Sedrick L. Reed, age 44, entered a plea of guilty to conspiracy to distribute and to possess with intent to distribute a controlled substance in the August 7, 2013 indictment in United States v. Sedrick L. Reed. The charge stemmed from an investigation by the Federal Bureau of Investigation’s ArkTrust Public Corruption Task Force with the full cooperation of the Arkansas State Police. The investigation was also referred to as Organized Crime and Drug Enforcement Task Force (OCDETF) operation “Diverted Justice.”
“Today, Sedrick L. Reed, a former Arkansas State Police lieutenant, admitted his guilt to a cocaine distribution conspiracy. An investigation of this nature is challenging to conduct. I commend the FBI and the Arkansas State Police for their diligence and cooperation to fully investigate this case even though it was another law enforcement official,” stated Thyer. “Citizens of the Eastern District of Arkansas deserve to know that their law enforcement members are trustworthy law abiding citizens and when they are not, they will be held accountable for their illegal actions.
Reed pleaded guilty to participating in a conspiracy to distribute and to possess with intent to distribute controlled substances. The United States dismissed the remaining four counts against the defendant upon acceptance of the guilty plea. Reed faces a potential sentence of not less than 10 years and up to life imprisonment; not less than 5 years and up to life supervised release; up to a $10 million fine, and a $100 special assessment. Reed also agreed to the forfeiture of bank accounts, real property, firearms, vehicles, and more than $30,000 in cash constituting proceeds of his illegal conduct.
At his plea hearing before U.S. District Court Judge Billy Roy Wilson in open court, Reed admitted to participating in a conspiracy to distribute between five and fifteen kilograms of cocaine between 2006 and 2013. Reed admitted that he abused a position of public trust in a manner that significantly facilitated the conspiracy. Reed also admitted to possessing a firearm during the conspiracy. Reed admitted to diverting drugs from a traffic stop and taking drugs from the ASP evidence locker. Reed further admitted that during the course of the conspiracy, Reed profited in excess of $200,000 from the resale of these stolen drugs.
The investigation was conducted by the FBI’s ArkTrust Public Corruption Task Force. It is being prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
The remaining defendant in the indictment, Lamont Johnson, is set for trial before Judge Wilson on October 7, 2014.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Final Member of Heroin Distribution Conspiracy SentencedRead the Press Release
HARRISONBURG, VIRGINIA – The last of seven defendants convicted of conspiring to distribute large amounts of heroin in and around the Winchester, Va. region, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg.
Christopher Haack, 29, of Winchester, Va., previously pled guilty to one count of conspiring to distribute and possess with the intent to distribute more than 100 grams but less than 400 grams of heroin and one count of possessing with the intent to distribute and distributing heroin. Today in District Court, Haack was sentenced to 24 months of imprisonment and five years of supervised release.
“The issue of heroin abuse has risen to epidemic levels in parts of Virginia,” United States Attorney Timothy J. Heaphy said today. “We will continue to work to reverse this disturbing trend through rigorous law enforcement as well as education, prevention and treatment programs. If we are going to make progress in the fight against this deadly drug, we must work together and approach the problem with a comprehensive strategy.”
Previously convicted and sentenced for their roles in the conspiracy were: Raymond Thomas Conrad, 26, of Strasburg, Va., 120 months; William Russell Carroll, II, 27, of Winchester, Va., 30 months; Dana James Hardy, 27, of Fredericksburg, Va., 84 months; Jennifer Elizabeth Breeden, 26, of Winchester, Va., 84 months; Brian Gary Pelczynski, 29, of Winchester, Va., 44 months; and Charles Lynwood Kline, 26, of Winchester, Va., 120 months.
According to information presented at previous hearings by Assistant United States Attorney Donald Wolthuis, this conspiracy consisted of a group of people who were working together to bring heroin from Baltimore, Md. to the Winchester, Va. area both for use and re-distribution. While the group had no formal organization, the central player in the conspiracy was Raymond Conrad. Heroin was purchased on the streets of Baltimore for $90-$120 per gram and later sold on the streets of Winchester for $50 per 1/10 of a gram.
The investigation revealed that during the life of the conspiracy, April 2010 to June 2013, some two kilograms of heroin were re-distributed, representing roughly 20,000 dosage units of heroin being put on the streets in Winchester, and the surrounding areas.
The investigation of the case was conducted by the Northwest Virginia Regional Drug Task Force and the Drug Enforcement Administration. The Northwest Virginia Regional Drug Task Force is comprised of nine participating jurisdictions, the counties of Frederick, Clarke, Shenandoah, Warren, and Page, the cities and towns of Winchester, Front Royal, and Strasburg, and the Virginia State Police. Assistant United States Attorney Donald Wolthuis prosecuted the case for the United States.
Essex County, N.J., Man Charged with Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – Special agents of the FBI arrested a Bloomfield Township, New Jersey, man this morning on charges that he distributed sexually explicit images of children from his home computer, U.S. Attorney Paul J. Fishman announced.
Paul J. Spisto, 52, is charged by complaint with two counts of distributing images of child pornography over the Internet. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.According to the complaint:
On Dec. 3, 2012, and Dec. 24, 2012, Spisto distributed videos and images depicting child sexual abuse on the Internet via a Usenet newsgroup, which allowed others access to the material. An undercover agent discovered and downloaded the images and videos; the username and IP address of the distributor were traced back to Spisto’s residence.
Each distribution count carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Barry A. Kamar of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
14-270Defense counsel: Scott Telson Esq., Edison, New Jersey
Spisto, Paul Complaint
El Salvadorian National Charged with Fraudulently Receiving Unemployment Insurance BenefitsRead the Press Release
BOSTON - A Chelsea man was charged today with mail fraud for fraudulently accepting over $46,000 in unemployment insurance benefits.
Oscar P. Valles-Lopez, a/k/a Oscar Valle, 44, was charged in a criminal complaint with mail fraud.
Valles-Lopez is an El Salvadorian national who illegally reentered the United States in or around July 2003 after previously living in this country between 1996 and 2001. After working for several years based upon fraudulently obtained immigration papers, he lost his job sometime in 2009. It is alleged that, although though he knew he was not entitled to unemployment insurance benefits without a valid work permit, Valles-Lopez paid $400 for a false permit and made three claims for benefits in 2009, 2010, and 2012. Over the course of several years, Valles-Lopez allegedly cashed 111 unemployment checks totaling $46,218, all of which were mailed by the United States Postal Service.
The maximum sentence under the statute is 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Regional Office; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police made the announcement today. The case is being prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Director of Nursing Pleads Guilty in Miami for Role in $7 Million Health Care Fraud SchemeRead the Press Release
A former director of nursing pleaded guilty yesterday in connection with a health care fraud scheme involving Anna Nursing Services Corp. (Anna Nursing), a defunct home health care company in Miami. 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 Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Armando Buchillon, 42, of Hialeah, Florida, pleaded guilty before U.S. District Judge Joan A. Lenard in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Oct. 6, 2014, before Judge Lenard.
According to court documents, Buchillon was a director of nursing at Anna Nursing, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. The owners and operators of Anna Nursing agreed to and actually did operate Anna Nursing for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
As part of the fraudulent scheme, Buchillon and his co-conspirators regularly falsified patient documentation in order to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for or receive such services. In addition, Buchillon 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. Buchillon also worked as a patient recruiter for Anna Nursing and was paid kickbacks and bribes by the owner of Anna Nursing. Buchillon and his co-conspirators caused the submission of false and fraudulent claims to Medicare on behalf of these beneficiaries.
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 P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Deported Man Charged with Immigration ViolationRead the Press Release
PITTSBURGH – An Ambridge resident was indicted on July 29, 2014, by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Elionardo Juarez-Escobar, 41, as the sole defendant.
According to the indictment, Juarez-Escobar, having previously been deported from the United States pursuant to law on Dec. 5, 2005, was present in the Western District of Pennsylvania on April 17, 2014, without having applied for and received permission from the Secretary of the Department of Homeland Security for re-application for admission into the United States.
The law provides for a maximum total sentence of not more than two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
Homeland Security Investigations and the New Sewickley Township Police Department 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.
Department of Justice and Federal Trade Commission Extend Public Comment Period for Workshop on Conditional Pricing PracticesRead the Press Release
The Department of Justice and the Federal Trade Commission (FTC) have extended the deadline for submitting comments on their recent Conditional Pricing Practices Workshop from Aug. 22, 2014, to Sept. 22, 2014.
The workshop, held June 23, 2014, explored the economics and legal policy implications of certain pricing practices, such as loyalty and bundled pricing. Interested parties may submit public comments online. Submitted comments and additional information about the workshop can be found on the Department of Justice and FTC websites.Del City Man Charged with Assault of Federal Officer with A Dangerous WeaponRead the Press Release
Oklahoma City, Oklahoma – Earlier today, a criminal complaint was unsealed charging JAMES WILLIAMS, 60, from Del City, Oklahoma, with assaulting a federal officer with a dangerous weapon, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on June 26, 2014, law enforcement on Tinker Air Force Base received a report of a man acting in a suspicious manner in a sport utility vehicle (SUV) on base. It is alleged that while law enforcement attempted to conduct a traffic stop the SUV fled and a high speed chase ensued. It is alleged that when a Senior Airman attempted to close the gate to prevent the SUV from exiting the base the driver of the SUV accelerated towards the Airman nearly striking her with the vehicle as it exited the installation. It is alleged that law enforcement for Tinker Air Force Base and the Oklahoma Highway Patrol pursued the vehicle at speeds over 100 miles per hour. The SUV was later identified as belonging to Williams.
Williams was arrested on July 29, 2014, and appeared before a United States Magistrate Judge in Oklahoma City earlier today. A preliminary hearing is set August 15, 2014.
If convicted, Williams faces up to 20 years in prison and a $250,000 fine. The public is reminded that the defendant is presumed innocent unless and until proven guilty.
This case is the result of an investigation by the Air Force Office of Special Investigations, Oklahoma Highway Patrol, and Oklahoma County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Robert Don Gifford II.
Dallas Man Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 51-year-old Dallas real estate recruiter has been sentenced to federal prison for bank fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Marcus Dewane Carr pleaded guilty on Feb. 13, 2014 to conspiracy to commit bank fraud and was sentenced to 30 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, from July 2008 to August 2010, Carr conspired with others to defraud Wells Fargo Bank and Flagstar Bank by inflating the purchase price of residential properties in Dallas and requiring buyers to secure mortgage loans for the fraudulent amount. Excess loan funds were then used to pay kickbacks to Carr, who recruited buyers, and others for arranging the sale of the properties.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the HUD-OIG and Federal Home Finance Agency-OIG and prosecuted by Assistant U.S. Attorney J. Andrew Williams.
Charleston Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Troy Lawrence, 45, of Charleston, West Virginia, pleaded guilty in federal court in Charleston to aggravated identify theft. Lawrence admitted that he used a dead person’s name and driver’s license to purchase pseudoephedrine from a Rite Aid store in Charleston. Lawrence faces a mandatory two years’ imprisonment when he is sentenced on November 13, 2014.
This case was investigated by the West Virginia State Police and the Drug Enforcement Administration.
Carbondale Resident Sentenced on Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn July 30, 2014, Leeann M. Simmerman, 21, of Carbondale, was sentenced for her involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Simmerman, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 108 months in federal prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2010 and January 2014, in Jackson, Williamson, Union, and Franklin Counties. Evidence at the plea and sentencing hearings established that Simmerman obtained over 151 grams of pseudoephedrine to be used in the manufacture of methamphetamine. Two co-defendants have pled guilty and are awaiting sentencing. Eleven co-defendants have pled not guilty and are awaiting jury trial.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
California Man Sentenced to 16 Years for Conspiracy to Distribute Heroin & MethamphetamineRead the Press Release
Anchorage, Alaska-United States Attorney Karen L. Loeffler announced that a Stockton, California man was sentenced today by U.S. District Court Judge Sharon Gleason to 16 years in federal prison for his role in a drug conspiracy.
Ernie Benny Juarez, Jr., 35, of Stockton, California previously pled guilty to conspiring with others to distribute large amounts of methamphetamine and heroin throughout the Anchorage community. As part of his plea, Juarez admitted flying to Alaska from California in October 2013. Co-conspirators subsequently sent Juarez and his associates an Express Mail package containing large quantities of heroin and methamphetamine, which Juarez intended to distribute in Anchorage. In total, the package contained approximately 385 grams of heroin and more than 500 grams of methamphetamine.
The sentence announced today included enhancements based upon Juarez’s classification as a career offender. Prior to flying to Anchorage to distribute drugs, Juarez had been convicted of multiple other felonies, including drug crimes in California.
In sentencing Juarez, Judge Gleason noted the seriousness of Juarez’s crime and the need to protect the public from future crimes. Judge Gleason also emphasized the need for deterrence in these types of cases.
In announcing the sentencing, U.S. Attorney Loeffler praised the United States Postal Inspection Service, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Alaska State Troopers, who conducted the investigation in this case.Buffalo Man Sentenced to 20 years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Buffalo, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Emilio R. Haro, 30, of Buffalo, was sentenced by U.S. District Judge Greg Kays to 20 years in federal prison without parole. Haro pleaded guilty on Dec. 19, 2013. The court also sentenced Haro to spend the rest of his life on supervised release following his prison term.
Law enforcement officers from two separate agencies independently identified Haro’s computer during their investigations into the sharing of child pornography over peer-to-peer file-sharing networks during the summer of 2012. Officers executed a search warrant at Haro’s residence and seized two laptop computers and an external hard drive, which contained hundreds of videos and images of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force, the Republic, Mo., Police Department, the Nixa, Mo., Police Department and the Dallas County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Bolivar Man Sentenced to 10 Years for Possessing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bolivar, Mo., man was sentenced in federal court today for possessing child pornography.
Leland Wallace Crull, 44, of Bolivar, was sentenced by U.S. District Judge Greg Kays to 10 years in federal prison without parole. Crull pleaded guilty on Feb. 3, 2014. The court also sentenced Crull to spend the rest of his life on supervised release following his prison term.
Law enforcement investigators with the Southwest Missouri Cyber Crimes Task Force were investigating child pornography images and/or videos being shared on a peer-to-peer file-sharing network in April 2012. Crull’s computer was identified as sharing child pornography over the Internet. Officers executed a search warrant at Crull’s apartment on Aug. 9, 2012. He initially refused to answer the door and then attempted to exit the back of the residence, but was detained by law enforcement officers. Investigators seized Crull’s laptop computer, an external hard drive and his cellular phone, which contained hundreds of images and videos of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Polk County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Boise Man Pleads Guilty to Distribution of MarijuanaRead the Press Release
BOISE – Luke Michael Marria, 19, of Boise, Idaho, pleaded guilty yesterday in the United States District Court to distributing marijuana, U.S. Attorney Wendy J. Olson announced.
According to court documents, the defendant admitted to distributing at least five kilograms, but not more than ten kilograms of marijuana from April 2012 to March 2014, in the Treasure Valley. The charge is punishable by up to five years imprisonment, not more than three years of supervised release, and a $250,000 fine. Sentencing is set for October 16, 2014, before Chief U.S. District Judge B. Lynn Winmill. Mr. Marria’s offense was related to Operation Candle Wax which resulted in the indictment of twelve other individuals for the distribution of oxycodone and heroin.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service; the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Big Game Hunting Guide Pleads Guilty to Felony Conspiracy Charge in Connection with Colorado Outfitter’s Illegal Mountain Lion and Bobcat Hunting ActivitiesRead the Press Release
Nicholaus J. Rodgers, 31, of Shady Cove, Oregon, pleaded guilty in federal court in Denver to a felony conspiracy charge stemming from the assistance he provided to an outfitter who sold illegal mountain lion and bobcat hunts in Colorado and Utah, the Justice Department announced.
Rodgers pleaded guilty to one count of conspiracy to violate the Lacey Act. The Lacey Act is a federal law that makes it illegal to knowingly transport or sell in interstate commerce any wildlife that has been taken or possessed in violation of state laws or regulations.
According to an indictment returned by the grand jury for the District of Colorado on Jan. 7, 2014, and the plea agreement, Rodgers conspired with others to provide numerous illegal hunts of mountain lions and bobcats in Colorado and Utah from 2007 to 2009. In particular, Rodgers and his confederates trapped, shot and caged mountain lions and bobcats prior to hunts in order to provide easier chases of the cats for clients. Rodgers also admits that he and his partners guided several hunters that did not possess a Utah mountain lion or bobcat license on mountain lion or bobcat hunts in Utah. The outfitter for whom Rodgers guided, Christopher W. Loncarich, was also indicted on Jan. 7, 2014. Loncarich is based in Mack, Colorado, which is approximately five miles from the Utah-Colorado border. Loncarich sold mountain lion hunts for between $3,500 and $7,500 and bobcat hunts for between $700 and $1,500 and shared a portion of the proceeds from successful hunts with Rodgers.
Three of Loncarich’s assistant guides have previously pleaded guilty to Lacey Act violations in connection with their guiding activities with Loncarich.
The maximum penalty for conspiring to violate the Lacey Act is up to five years in prison and a $250,000 fine. Under the terms of the plea agreement, the prosecution agreed to a sentencing calculation pursuant to the advisory United States Sentencing Guidelines but did not agree on a term of imprisonment, an amount of fines or an amount of restitution. A sentencing hearing for Rodgers is set for Nov. 7, 2014.
The case was investigated by the United States Fish & Wildlife Service, Colorado Parks and Wildlife and the Utah Division of Wildlife Resources. The case is being prosecuted by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.Bergen County Man Arrested, Charged with Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – Federal agents arrested a Bergen County, New Jersey, man this morning on a charge that he distributed sexually explicit images of children from his home computer, U.S. Attorney Paul J. Fishman announced.
Robert Miller, 65, of Hackensack, New Jersey, is charged by complaint with one count of distributing images of child pornography over the Internet. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was remanded without bail.
According to the criminal complaint unsealed today:
From April 30, 2014, to May 7, 2014, Miller distributed videos depicting child sexual abuse on the Internet via a peer-to-peer file-sharing program, which allowed others access to the material. An undercover agent discovered and downloaded the videos, and the username and IP address of the distributor were traced back to Miller’s residence.
On July 30, 2014, special agents from U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) executed a search warrant at Miller’s residence and seized his computer and related electronic devices, which allegedly contained the peer-to-peer program as well as multiple videos and/or images of child sexual abuse.
The distribution count with which Miller is charged carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of ICE-HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark; the Bergen County Prosecutor’s Office, under the direction of Prosecutor John Molinelli; and the Hackensack Police Department, under the direction of Police Director Mike Mordaga, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Barry A. Kamar of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
14-275
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark
Miller, Robert Complaint
Belleville Man Charged in Circle K RobberyRead the Press Release
Case is One of Many Prosecuted by United States Attorney Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsA Belleville man was charged today in federal court in East St. Louis in connection with the robbery which occurred at Circle K Gas Station, located on South Belt East, Belleville, IL, on July 25, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Patrick S. McGuire, 48, of Belleville, IL, was charged with Interference with Commerce by Robbery (Hobbs Act Robbery).
“I will continue to use these harsh federal sentences as a tool to try to deter folks from terrorizing our businesses.” said United States Attorney Wigginton. “If you commit these crimes, be prepared to face hard federal time.”
At his first appearance on the complaint filed today, Federal Magistrate Judge Wilkinson ordered that McGuire be held without bond pending a further hearing on the United States Attorney’s motion that McGuire continue to be held without bond pending his trial.
The case was investigated by the Federal Bureau of Investigation and the Belleville Police Department. The case is being prosecuted by Assistant United States Attorney Laura V. Reppert.
Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
Bank Robbers SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Orlando Brock, aged 43, of Hartwell, Georgia, and Walter Butler, Jr., aged 45, of Gainesville, Georgia, were sentenced on July 30, 2014 by United States District Court Judge C. Ashley Royal in Athens, Georgia for armed bank robbery. Mr. Brock was sentenced to serve 16 years (192 months) in Federal prison. Mr. Butler received a sentence of 7 years (87 months) of incarceration.On April 21, 2014, Mr. Brock was found guilty of armed bank robbery and Mr. Butler was found guilty of aiding and abetting a bank robbery following a five day jury trial. Evidence presented at trial showed that on September 22, 2011, Mr. Butler and Mr. Brock, aided and abetted by Allen Colbert and Juan Vladimir Camp, robbed the North Georgia Credit Union in Lavonia, Georgia. Mr. Brock organized and planned the robbery. Mr. Butler was the driver. Approximately $310,500 in currency was taken from the bank.
The case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Franklin County Sheriff’s Office, the Lavonia Police Department and the Georgia State Patrol. Assistant United States Attorneys Graham Thorpe and Sonja B. Profit represented the Government in the prosecution of the case.“When people commit bank robberies in the Middle District of Georgia, they might as well pack a toothbrush, because my office will use every resource we have to make sure they go straight to jail for a long time. It doesn’t matter if you are doing the planning or doing the driving, the law is going to ultimately catch up with you,” said U.S. Attorney Michael Moore.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: The lengthy sentences imposed on these two defendants reflect the serious nature of armed bank robbery. The FBI is proud of the role it played in working with its law enforcement partners in the area to get two violent offenders off of our streets and making our community a safer place for all.”
Questions regarding this matter should be directed to Karen Moore of the United States Attorney’s Office for the Middle District of Georgia (478/621-2606; [email protected]).Baltimore Man Sentenced to over 6 Years in Prison in Identity Theft SchemeRead the Press Release
Used Stolen Identity Information to Purchase over $124,000 in Motorcycles and Other Goods
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Tavares Davon Miller, a/k/a “Tavon Jackson,” “Tavon Miller,” and “Ooh,” age 30, of Baltimore, Maryland today 75 months in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft, in connection with a scheme to use the personal identifying information of others to purchase motorcycles, electronic equipment, jewelry and other goods. Judge Hollander also entered an order that Miller pay restitution of $105,899.66.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Anne Arundel County Police Chief Kevin Davis; Charles County Sheriff Rex Coffey; Howard County Police Chief Gary Gardner; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Michael Phillips of the Fruitland Police Department.
According to his plea agreement, from September 25 through November 1, 2012, Miller acquired the identifying information of more than 10 victims, and used that information to fabricate driver’s licenses and credit cards in the names of those victims, but using the photograph of co-conspirator Monika Hill (where applicable). Miller and Hill traveled to motorcycle dealerships and retail stores in Maryland, Delaware, Virginia and Pennsylvania, and used the fraudulent identification documents to purchase merchandise, including electronic equipment, jewelry and clothing, or apply for lines of credit at those stores. Miller and Hill then loaded the motorcycles and merchandise into their vehicle and returned to Maryland. Miller advertised the motorcycles and merchandise for sale over the internet, retaining the proceeds of the sales and paid Hill a fee for her services.Judge Hollander determined today that the total amount of loss to the victims is $140,462.03.
Monika Michelle Hill, age 34, of Gwynn Oak, Maryland, pleaded guilty to the same offenses and is scheduled to be sentenced on October 24, 2014 at 2:00 p.m.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service, Maryland State Police, the Anne Arundel, Howard and Montgomery County Police Departments, Charles County Sheriff’s Office and Fruitland Police Department for their work in the investigation. Mr. Rosenstein also recognized the following agencies for their assistance in the investigation: the Delaware State Police; Leesburg (Virginia) Police Department and Stafford County (Virginia) Sheriff’s Department; and the Lancaster (Pennsylvania) Police Department and Springettsbury Township (Pennsylvania) Police Department. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.Avoca Woman Charged with Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Sandra Jalowiec, age 43, Avoca, Pennsylvania was charged with health care fraud in a criminal information filed in U.S. District Court in Scranton yesterday.
According to United States Attorney Peter Smith, Jalowiec, allegedly engaged in a scheme and artifice to defraud Blue Cross of Northeastern Pennsylvania for the period beginning January 2008 through May 2014.
The charges stem from an investigation initiated in June 2014 by the Federal Bureau of Investigation and the Department of Health and Human Services.
The information alleges that Jalowiec defrauded Blue Cross of Northeastern Pennsylvania by forging prescriptions in the name of a licensed medical doctor. The prescriptions were fraudulently written by Jalowiec for pain medications. Blue Cross was then billed for the forged and fraudulent claims. The government also filed a plea agreement in the case. The agreement is subject to the approval of the Court. Jalowiec will be required to pay restitution for the loss amount.
In this particular case, the maximum penalty under the federal statute is 10 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.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Attorney General Holder Announces Justice Department Filings in Voting Rights Cases in Wisconsin and OhioRead the Press Release
Attorney General Eric Holder announced today that the Justice Department has submitted filings in voting rights cases in Wisconsin and Ohio. The department’s involvement in these two cases represents its latest steps to enforce the remaining parts of the Voting Rights Act against restrictive state laws, following up on the department’s lawsuits last year against similar measures in Texas and North Carolina.
In the Wisconsin case, the department filed an amicus brief in Frank v. Walker and LULAC v. Deininger, supporting an earlier ruling by the U.S. District Court for the Eastern District of Wisconsin that struck down Wisconsin’s strict photo voter identification requirement due to its effects on minority voters under Section 2 of the Voting Rights Act, and because it unduly burdens a substantial number of voters in violation of the Fourteenth Amendment. In the Ohio case, the department filed a statement of interest in NAACP v. Husted, a challenge by a civil rights group to a state law curtailing early voting and same day registration. The department’s brief contests the state of Ohio’s incorrect interpretation of the standards set forth by Section 2 of the Voting Rights Act.
“These filings are necessary to confront the pernicious measures in Wisconsin and Ohio that would impose significant barriers to the most basic right of our democracy,” said Attorney General Eric Holder. “These two states’ voting laws represent the latest, misguided attempts to fix a system that isn’t broken. These restrictive state laws threaten access to the ballot box. The Justice Department will never shrink from our responsibility to protect the voting rights of every eligible American. And we will keep using every available tool at our disposal to guard against all forms of discrimination, to prevent voter disenfranchisement, and to secure the rights of every citizen.”
In the amicus brief filed today in the U.S. Court of Appeals for the Seventh Circuit, the department argues that the district court reached the correct decision by finding that Wisconsin’s voter ID law, known as Act 23, violated the Fourteenth Amendment, because it imposes unjustified burdens on a significant number of voters, and violated Section 2 of the Voting Rights Act, because it has a discriminatory result on African-American and Hispanic voters. In addition to finding that Act 23 would result in minority voters having less opportunity to participate in the political process relative to other members of the electorate, the court found that the state’s claimed interests in combating voter fraud and promoting electoral confidence did not justify the significant burdens Act 23 imposes on substantial numbers of voters who lack a qualifying ID.
In the statement of interest filed today in U.S. District Court for the Southern District of Ohio, the department makes clear that Section 2 prohibits the state of Ohio from imposing any voting qualification, prerequisite to voting, or any standard, practice or procedure that would result in the denial or abridgement of the right to vote on account of a person’s race, color or membership in a language minority group. The filing also makes clear that in its own filings in the case the state of Ohio has incorrectly interpreted its requirements under Section 2. The department did not take a position on any of the other claims in the case.
“The United States Department of Justice today affirms its clear position that, under Wisconsin’s Act 23, minority voters have less opportunity to participate in the political process,” said James L. Santelle, United States Attorney for the Eastern District of Wisconsin. “The amicus brief that we are filing not only supports the trial court’s findings but also reflects the department’s continuing focus on ensuring that the franchise remains fully available to all qualified voters.”
“Wisconsin's proud history is one of expanding the opportunity to vote,” said John W. Vaudreuil, United States Attorney for the Western District of Wisconsin. “I'm honored to file this brief with the United States Department of Justice seeking to ensure that this great Wisconsin tradition is reaffirmed, and that every Wisconsin citizen has an equal opportunity to participate in democracy.”
“This office remains committed to preserving the rights of every Ohio voter,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Making sure that courts continue to carefully examine voting restrictions, such as the ones recently imposed in this state, is an important part of that effort.”
In the year since the Supreme Court struck down the coverage formula that determined which jurisdictions were subject to preclearance underthe Voting Rights Act in Shelby v. Holder, Section 2 of the Voting Rights Act remains one of the department’s most powerful tools to protect voting rights. Last year the department used Section 2 to file two lawsuits against the state of Texas to stop the newly enacted discriminatory voter ID law and and to obtain a ruling that the state engaged in intentional discrimination in adopting its 2011 redistricting plans. In North Carolina, the department used Section 2 to sue to stop a number of provisions in an election law that imposes strict voter ID requirements, restricts early voting, eliminates same-day registration and refuses to count otherwise valid provisional ballots cast in the wrong precinct. The suit alleges that the challenged law was motivated by a racially discriminatory purpose and will result in African-American voters having less opportunity than other citizens to participate in the political process. All three cases are ongoing.
Related Materials:
Amicus Brief
Statement of InterestAlamo, N.M., Man Pleads Guilty to Convenience Store RobberyRead the Press Release
ALBUQUERQUE – Ronnie Ganadonegro, 38, a member of the Navajo Nation who resides in Alamo, N.M., pleaded guilty this morning to a robbery charge.
Ganadonegro was arrested on Jan. 23, 2014, on a criminal complaint charging him with robbing the Tiis’ Tsoh Mini Mart in Alamo, which is located in the Navajo Indian Reservation, on Dec. 30, 2013. Ganadonegro subsequently was indicted and charged with one count of robbery.
During today’s proceedings, Ganadonegro entered a guilty plea to the indictment and admitted robbing the Tiis’ Tsoh Mini Mart on Dec. 30, 2013. According to the plea agreement, Ganadonegro approached the counter in the convenience store, pointed an air pistol at the cashier, and demanded the money from the cash register. When the cashier opened the cash register, Ganadonegro grabbed the cash out of the register and fled on foot from the convenience store.
Ganadonegro has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Ganadonegro faces a statutory maximum penalty of 15 years in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Albuquerque office of the FBI, and the Crownpoint office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and Marisa A. Lizarraga.
Additional Charges Filed Against Members of Ironworkers UnionRead the Press Release
Local School Construction Sites Targeted in Additional Extortions
PHILADELPHIA- A federal grand jury returned a superseding indictment today adding two counts of extortion which interferes with interstate commerce against members of Ironworkers Local 401 and allegations of additional criminal conduct as part of the RICO conspiracy. Those allegations concern 14 additional acts of extortions, or “night work,” committed by the defendants at various construction sites in the Philadelphia area, including several local schools. Named in the two new counts are Joseph Dougherty, Christopher Prophet, Richard Ritchie, Edward Sweeney, and William O’Donnell. Co-defendant Francis Sean O’Donnell is also named in the narrative added to the RICO count. They were indicted in February with co-defendants James Walsh, William Gillin, Daniel Hennigar, Greg Sullivan, and Francis Sean O’Donnell.
The superseding indictment charges that the business agents of the Ironworkers Local 401 would approach non-union contractors performing the ironwork at the job sites and demand that they hire union ironworkers. If the non-union contractors refused, members of the Ironworkers Local 401, sometimes referred to as the “Shadow Gang,” would sneak into the construction site at night, use sledgehammers to smash the anchor bolts of the building, and damage equipment. Each incident caused tens of thousands of dollars in damage and construction delays. The vandalized construction sites included elementary schools in Wallingford, PA, and Sharon Hill, PA, a firehouse in Eddystone, PA, an assisted living facility in Horsham, PA, as well as sites in Havertown, Wynnewood, Malvern, and Drexel Hill.
One example of the additional conduct alleged in the superseding indictment includes significant damage to a construction site at a commercial business in Malvern, PA. On January 20, 2012, defendant Francis Sean O’Donnell allegedly reported at a general meeting of the Ironworkers Local 401, in the presence of defendants Dougherty, Sweeney, Prophet, Ritchie, and William O’Donnell, that he was “in negotiations” with the contractors to hire union ironworkers and that if the Ironworkers Local 401 does not “get some men put on they are going to run into some unsuspected delays.” On February 17, 2012, defendant O’Donnell allegedly reported this contractor failed to hire any union ironworkers and stated “I just want to thank the Shadow Crew for another job well done. They were shut down for about a week and cost them about $150,000.” O’Donnell further allegedly reported at this meeting that “about a week after that I got a call” from the contractor wanting to hire some union ironworkers.
Each additional count of extortion which interferes with interstate commerce carries up to 20 years in prison. Each of the defendants is facing a substantial prison term if convicted.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance from Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-852541 Linked to El Monte Street Gang Charged in Federal Racketeering Indictment That Alleges Murders, Robberies and Narcotics TraffickingRead the Press Release
LOS ANGELES – More than 400 law enforcement officers this morning conducted an operation that led to the arrest of 17 members and associates of the El Monte Flores gang, an organization that takes direction from the Mexican Mafia prison gang and controls criminal activity in the cities of El Monte and South El Monte.
Those taken into custody today are among 41 defendants named in a 167-page racketeering indictment that alleges “El Monte Flores gang members commit crimes, including acts of violence (ranging from battery to murder), drug trafficking offenses, robbery, burglary, carjacking, witness intimidation, kidnapping, weapons trafficking, credit card fraud, identity theft, and hate crimes directed against African-Americans who might reside or be present in the cities of El Monte and South El Monte in an effort to rid these cities of all African-Americans.”
Other gang-related crimes are outlined in the 62-count indictment, including the execution of a former Mexican Mafia member and the fatal shooting of four others in an El Monte residence in 1995. The indictment also outlines an ongoing dispute involving members of the Mexican Mafia who are attempting to exercise control over the gang. One of those Mexican Mafia members – James “Chemo” Gutierrez, 52, who is currently in federal custody after his supervised release following a 20-year sentence in a federal homicide case was revoked – is the lead defendant in the indictment. Other Mexican Mafia members serving life prison terms are not charged in the indictment, but they are listed as co-conspirators.
The gang maintains a significant presence at the Boys & Girls Club of America – San Gabriel Valley Club on Mountain View Road, where gang members openly sold drugs, held gang meetings and even held a car wash fundraiser, according to the indictment. Members of the gang also regularly use and threaten to use violence to extort “taxes” from drug dealers at “Crawford’s Plaza” (at Valley Boulevard and Garvey Avenue) and the “Klingerman” apartments, as well as from fraudulent document vendors who operate at Crawford’s Plaza. The indictment further alleges several incidents dating back to early 2001 in which African-American victims in El Monte were attacked, threatened and subjected to racial epithets.
The investigation into the El Monte Flores gang was conducted by a task force that included the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS – Criminal Investigation; and the El Monte Police Department
According to the indictment that was unsealed this morning, El Monte Flores, which has an estimated 800 members, operated as a criminal enterprise that used violence and intimidation to exercise authority in the area it claimed. The multi-generational gang was formed in the 1960s, and since then it has controlled the drug trade in El Monte and South El Monte.
The defendants named in the federal indictment face various charges, including conspiracy to engage in racketeering activity in violation of the federal Racketeer Influenced and Corrupt Organizations (RICO) Act; violent crimes in aid of racketeering; conspiracy to possess with intent to distribute and distribute controlled substances; using a firearm in relation to a crime of violence or drug trafficking; weapons charges; conspiracy to launder money; and being an illegal alien after previously being deported.
Those taken into custody today are expected to be arraigned this afternoon in United States District Court.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If they are convicted, all of the defendants would face up to 20 years for the RICO and potentially decades more depending on which additional offenses they are charged with. One defendant – Johnny Mata, 33, of Baldwin Park, California – faces a potential death penalty if he is convicted of being the shooter in the slaying of a rival gang member in Baldwin Park on Christmas Eve in 2010.
Out of the 41 defendants named in the federal indictment, 17 were arrested this morning. Fifteen defendants named in the grand jury indictment were already in custody. Authorities are continuing to search for nine defendants.
In addition to the law enforcement agencies who conducted the investigation, several agencies provided substantial assistance during this morning’s takedown, including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the California Department of Corrections and Rehabilitation, the Irvine Police Department, the Covina Police Department, the Montebello Police Department, the Azusa Police Department, the Baldwin Park Police Department, the United States Marshals Service, the Los Angeles Sheriff’s Department, the San Bernardino Sheriff’s Department, and the Los Angeles County District Attorney’s Office.
Release No. 14-099
29 July 2014
“Doctor at Home” Manager Arrested on Federal Health Care Fraud Charge; Allegedly Ran Extensive Medicare Fraud SchemeRead the Press Release
CHICAGO — A registered nurse who operates a suburban health care provider that sends physicians to patients’ homes was arrested today on a federal health care fraud charge. The defendant, DIANA JOCELYN GUMILA, who manages Suburban Home Physicians, doing business as Doctor At Home, was charged with health care fraud in a criminal complaint that was unsealed upon her arrest. The complaint alleges a scheme to defraud Medicare by falsely certifying patients as being confined to their homes and requiring home health services; falsely increasing, or “upcoding,” claims for services; over-scheduling and double-billing patient visits, submitting false claims for providing extensive oversight of patients’ home health services, and billing for tests that were not medically necessary.
Gumila, 45, a licensed registered nurse in Illinois since 1991, was scheduled to appear at 3 p.m. today before U.S. Magistrate Judge Young Kim in U.S. District Court.
Simultaneous with Gumila’s arrest, agents from the FBI, the U.S. Department of Health and Human Services Office of Inspector General, and other law enforcement agencies executed search warrants at the offices of Doctor At Home and an affiliated business, Xpress Mobile Imaging, both located in the 800 block of East Higgins Road in Schaumburg, as well as at Gumila’s residence in Streamwood. A warrant was also executed to seize alleged fraud proceeds in a bank account maintained by Suburban Home Physicians.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG. The Railroad Retirement Board Office of Inspector General is also participating in the investigation.
According to a 69-page affidavit in support of the arrest, search and seizure warrants, Doctor At Home sends physicians and physician’s assistants, who are accompanied and driven by a medical assistant, to visit patients in their homes. Doctor At Home gets many of its patients from home health agencies, which refer patients to Doctor At Home so that a physician will sign a form ordering the home health agency to provide nursing services to the patient.
According to Medicare claims data, from 2013 through May 2014, more than 300 home health agencies have submitted Medicare claims stating that they were ordered by just four Doctor At Home physicians to provide home health services to approximately 4,000 patients. Those home health agencies were paid more than $20 million as a result of their claims.
The affidavit alleges that most of Doctor At Home’s visits were billed to Medicare as if they were complicated, with the average payment for most visits approximately $120. As a result of alleged double-billing, over-billing, and certifying patients for home health services who were not confined to the home, Doctor At Home assisted home health agencies in falsely billing Medicare, allegedly causing Medicare to pay more than $1,000 a month on many patients simply so a nurse can visit once a week and conduct a basic check of the patient’s condition.
“Doctor At Home’s practices and processes regularly cause Medicare to pay more than $1,250 a month for basic maintenance of many patients who do not need such services,” the complaint alleges.
The affidavit states that agents have interviewed one current and seven former employees of Doctor at Home, including a current physician’s assistant who contacted law enforcement in January this year. Investigators have also reviewed an audio recording provided by a former Doctor At Home physician of an October 2013 meeting she had with Gumila, as well as emails and documents, claims data, and patient files, and have conducted interviews with patients of Doctor At Home and their primary care physicians whose statements contradict Doctor At Home’s billing and patient records.
In the recorded meeting, the doctor, identified as “Physician D,” who began working for Doctor At Home only a few weeks earlier, told Gumila that several patients did not qualify for certain services. Gumila responded by telling Physician D that she was an “artist” who should “paint the picture” of each patient in a way that Medicare would accept, the affidavit states.
Gumila allegedly overruled at least one physician and manipulated the certification of many patients as being confined to the home and requiring home health services. In doing so, she assisted home health agencies in billing Medicare for ineligible patients and medical services in exchange for Doctor At Home receiving patient referrals from the home health agencies. As part of the scheme, Doctor At Home allegedly scheduled patient visits on a monthly basis rather than based on patient need and billed Medicare as if the visits were complicated when they were actually routine and short in duration. Doctor At Home also frequently double-billed the same visit as a “patient visit” and also as a “wellness visit.” Doctor At Home also claimed that physicians and physician’s assistants provided extensive oversight of patients’ home health services when, in fact, employees in the Philippines prepared those oversight claims in part by counting routine visits toward oversight.
The complaint also alleges that Doctor At Home has billed Medicare for thousands of eye-movement tests that some providers believe were medically unnecessary, and it has referred thousands of echocardiograms and ultrasound tests to Xpress Mobile Imaging, which has several business ties to Doctor At Home.
Health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Stephen Chahn Lee.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The Medicare Fraud Strike Force began operating in Chicago in February 2011, and consists of agents from the FBI and HHS-OIG, working together with prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Scores of defendants have been charged locally in health care fraud cases since the strike force began operating in Chicago.
To report health care fraud to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Complaint
West Des Moines Woman Sentenced for Fentanyl DistributionRead the Press Release
DES MOINES, IOWA - On Tuesday, July 29, 2014, Macey Lynn Stills, age 23 of West Des Moines, Iowa, was sentenced to 21 months imprisonment for distributing fentanyl, announced United States Attorney Nicholas A. Klinefeldt. Chief District Judge James E. Gritzner also ordered Stills to serve a term of three years supervised release following the term of imprisonment, and to pay a $100 special assessment to the Crime Victim’s Fund.
In early 2013, Stills took fentanyl patches from her place of employment, and subsequently sold them. On January 10, 2013, Stills sold four patches for $160 to an individual who later died that same date from a fentanyl overdose. On March 24, 2014, Stills pled guilty to distribution of fentanyl in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(C).
This investigation was conducted by the Ames, Iowa, Police Department, the Central Iowa Drug Task Force and the Drug Enforcement Administration. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Wentzville Woman Pleads Guilty to Theft of Government FundsRead the Press Release
St. Louis, MO – VICTORIA JEAN BRILEY, of Wentzville, admitted to collecting $138,000 in veteran’s benefits in the name of her deceased mother.
According to the plea agreement, after her mother’s death in 2006, Briley maintained control over a bank account in her mother’s name which received the monthly payments from the U.S. Department of Veterans Affairs. When confronted by investigators, Briley admitted she had been concealing her mother’s death from the government and improperly receiving the benefits for years.
Briley pled guilty to one count of theft of government funds before United States District Judge Audrey G. Fleissig. Sentencing has been set for November 4, 2014.
The maximum term of imprisonment for theft of government funds is 10 years and/or a fine of $250,000. Restitution to the government is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Department of Veterans Affairs-Office of Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Vending Machine Company Executive Who Provided False IRS Forms to Pepsi Sentenced to Six Months in Prison, Six Months’ Home ConfinementRead the Press Release
Must Also Pay $1 Million in Restitution
NEWARK, N.J. - The former principal of a New Jersey vending company was sentenced today to six months in prison, six months of home confinement and agreed to pay restitution of $1 million to the Pepsi Bottling Group for his role in a tax fraud scheme, U.S. Attorney Paul J. Fishman announced.
Joseph Belasco, 65, of Cedar Grove, New Jersey, previously pleaded guilty before U.S. District Judge Jose L. Linares to a superseding information charging him with providing a false 2008 IRS 1099 form to the wife of a PepsiCo executive for consulting services that she never performed. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:In the spring of 1998, Belasco, along with a business associate, created Impact Cause Related Marketing (Impact Marketing), a subsidiary of Culinary Ventures Vending, a company that placed and stocked vending machines in private and commercial facilities, such as state colleges and entertainment venues. The purpose of Impact Marketing was allegedly to provide Pepsi Bottling Co. with leads for acquiring new customers to purchase its cans, bottles and fountain products. Impact Marketing and Belasco would receive commissions for as long as the client remained a Pepsi customer. According to its contract, Impact Marketing would also receive quarterly rebates, depending upon the amount of Pepsi product a customer purchased on an annual basis.
Edwin Glasspool, a Pepsi employee who developed new customers, assigned those customers to Impact Marketing. He also reassigned existing Pepsi customers to the list of new customers allegedly referred by Impact Marketing, generating additional commissions for leads for Belasco that Belasco had not actually generated himself. Between 1998 and 2008, Impact Marketing received from Pepsi $2.9 million in commissions and rebates as a result of the fraudulent scheme. Glasspool’s wife, Janice Bachman, who filed joint tax returns with her husband, received approximately $135,000 in annual income for a no-show position with Belasco and Impact Marketing. Glasspool had previously pleaded guilty to defrauding Pepsi of $2.9 million dollars and having his wife receive his annual share of the defrauded money through checks for consulting services issued by Impact Marketing, the vending company.
In addition to the incarceration and the $1 million in restitution, Judge Linares sentenced Belasco to two years of supervised release and fined him $30,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by V. Grady O’Malley, Senior Litigation Counsel of the U.S. Attorney's Office Organized Crime/Gangs Unit, in Newark.
14-265
Defense counsel: John A. Azzarello Esq., and David Fassett Esq., Chatham, New JerseyUnited States Attorney’s Office Announces Indictment of Clark County SheriffRead the Press Release
Sheriff indicted as part of on-going effort to fight public corruption
NEW ALBANY– Joseph H. Hogsett, United States Attorney, announced the indictment of Daniel N. Rodden, 60, Jeffersonville, today. Rodden was indicted for seven counts of making a false statement and one count of counseling the destruction of evidence in a federal investigation. He will have his initial appearance this afternoon in front of a Magistrate Judge.
On May 14, 2013, Rodden, the elected sheriff of Clark County, allegedly provided a prostitute with official law enforcement credentials and an official deputy’s badge of the Clark County Sheriff’s Department so that the prostitute could obtain a government employee rate at a hotel in Louisville, KY. Rodden allegedly met the prostitute at the hotel on May 29 in a bedroom and engaged in a sex act with the prostitute.
The Federal Bureau of Investigation (“FBI”) identified Rodden as it was conducting an investigation concerning wire fraud and enticing an individual to travel in interstate commerce to engage in prostitution. FBI agents and Task Force officers interviewed Rodden in May and June of 2014. Over the course of three interviews, Rodden allegedly told FBI agents that he did not give the prostitute government credentials, did not pay to have sexual relations with her, and did not contact her and instruct the prostitute to destroy evidence of their encounter.
“Our message has been consistent but bears repeating: if you violate the public trust, our Public Corruption Working Group will find you, will investigate you, and will prosecute you to the fullest extent of the law,” said Hogsett.
This investigation is part of the U.S. Attorney’s Office Public Integrity Working Group (“PIWG”), a collaborative effort between federal state and local law enforcement agencies to rid Indian of the “culture of corruption” that too often deprives citizens of proper representation. This prosecution comes as part of a joint effort between the Indiana State Police, the FBI, and the U.S. Attorney’s Office.
"FBI investigations seek out truth in the interest of justice and integrity is a bedrock principal of law enforcement. Truth and integrity are essential for those in public office," said Special Agent in Charge W. Jay Abbott.
Anyone who has information to share about public corruption matters is encouraged to contact the Public Integrity Hotline at 317-229-2443.
According to Senior Litigation Counsel Bradley Blackington, who is prosecuting the case on behalf of the government, Rodden faces up to 20 years imprisonment for counseling the destruction of evidence and five years for each count of making a false statement.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Union President Charged with Embezzling FundsRead the Press Release
PITTSBURGH – A Ross Township man has been indicted by a federal grand jury in Pittsburgh on a charge of union embezzlement, United States Attorney David J. Hickton announced today.
The one-count indictment named Michael C. Trembulak, 41, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, Trembulak, while serving as the President of the Utility Workers Union of America AFL-CIO Local 475, embezzled approximately $31,528.65 from the union by making unauthorized debit card cash withdrawals, charges and purchases, and unauthorized teller cash withdrawals, from the union’s checking account during the period from April 19, 2012, to Sept. 19, 2012.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor-Management Standards 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.