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30 July 2014
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.
U.S. Attorney’s Office Reaches Settlement with Olympia Entertainment to Improve Access for People with Disabilities at Joe Louis Arena and Ensure Full Compliance with the Americans with Disabilities Act at Olympia’s Planned New Events CenterRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Michigan has reached an agreement with Olympia Entertainment, Inc. under the Americans with Disabilities Act (ADA) for extensive changes to improve physical accessibility and opportunities for people with disabilities at Joe Louis Arena, a large entertainment complex, and home of the NHL team the Detroit Red Wings, located in Detroit, Michigan. The settlement agreement also requires Olympia to work closely with an Independent Licensed Architect, as well as the U.S. Attorney’s Office, to ensure that Olympia’s planned new Events Center will be designed, constructed, and operated in full compliance with the ADA. The settlement agreement resolves an investigation following a complaint filed by a patron with a disability who was unable to attend Red Wing games at Joe Louis Arena.
“This agreement provides people with disabilities with much improved access to enjoy events at Joe Louis Arena, and perhaps even more importantly, ensures full and equal opportunity at Olympia’s new Events Center for generations of hockey fans to come” said U.S. Attorney Barbara L. McQuade. “The Department of Justice is committed to knocking down these types of barriers, and we commend Olympia for its cooperation and efforts to do the same.”
Under the settlement agreement, Olympia will provide 45 wheelchair accessible seats, and an equal number of companion seats at Joe Louis Arena, with substantial improvements in the lines of sight over standing spectators. Tickets for the accessible and companion seats will be offered at prices proportionate to the number of general seats in each price category, and will be able to be purchased in the same manner as general seats, including online through Ticketmaster. Olympia has also agreed to improve accessibility in restrooms, concession stands, restaurants, and clubs; improve signage throughout Joe Louis Arena; provide additional Assistive Listening Devices; and annually train its employees on the ADA.
The settlement agreement also requires Olympia to submit to inspections by an Independent Licensed Architect to allow the U.S. Attorney’s Office to monitor all stages of the design and construction process for Olympia’s new Events Center which is planned to house Olympia’s future entertainment operations, including Red Wings games, to ensure full ADA compliance. Under the agreement, all operating policies and procedures for the new Events Center concerning the ADA also will have to be approved by the U.S. Attorney’s Office.
Today’s agreement was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by public accommodations. The U.S. Attorney’s Office will actively monitor compliance with the agreement.
For more information on the ADA and today’s agreement with Olympia Entertainment, Inc., visit www.ada.gov or call the United States Justice Department’s toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY) or the U.S. Attorney’s Civil Rights hotline at (313) 226-9151U.S. Attorney Luger Announces Guilty Plea in Violent Drug ConspiracyRead the Press Release
Andrew M. Luger, United States Attorney for the District of Minnesota, today announced the guilty plea of ANTONIO NAVARRO, a/k/a TONY SANCHEZ, 19, to Conspiracy to Distribute Methamphetamine. NAVARRO pleaded guilty before United States District Court Judge John R. Tunheim. NAVARRO was indicted on May 5, 2014, with three co-defendants: JESUS RAMIREZ, 31; JONATAN DELGADO ALVAREZ, 22; and JUAN RICARDO ELENES VILLAVAZO, a/k/a. CHAPO, 32. RAMIREZ and ALVAREZ are in custody and awaiting trial. VILLALVAZO remains unapprehended.
“This case is a powerful example of the violent tactics of drug traffickers,” said U.S. Attorney Luger. “The United States Attorney’s Office in Minnesota, along with our local and federal law enforcement partners, is committed to stopping the flow of illegal drugs into our state, and aggressively prosecuting the violent crime that so often comes with it.”
As set forth by the defendant’s guilty plea, between February 2014, and April 2014, NAVARRO distributed methamphetamine and maintained a house in St. Paul where a large amount of methamphetamine was stored.
According to the indictment, on April 14, 2014, RAMIREZ and ALVAREZ flew from Los Angeles to Minneapolis. Later than evening, the defendants are charged with kidnapping two victims at gunpoint, holding them captive, and beating and making violent threats against their lives that of their families. According to the indictment, VILLAVAZO sliced and nearly severed one of the victim’s fingers.
NAVARRO was arrested at approximately 7:30 p.m. on April 15, 2014. He is expected to be sentenced at a future date. This conviction is the result of an investigation by the Safe Streets Task Force. Safe Streets is a FBI-sponsored task force focused on combating violent street crime, as well as gang and drug- trafficking offenses. This case is being prosecuted by Assistant United States Attorney Jeffrey S. Paulsen.
United States Attorney Andrew Luger thanked the Minneapolis Police Department, and the St. Paul Police Department, for their assistance in the investigation.Two Mexican Citizens Sentenced to Prison for Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Mexican citizens, who were in the United States illegally, were sentenced to prison on charges of illegal reentry into the United States.
German Espinosa-Hernandez, also known as Ferdinand Gonzalez-Velez, age 36, a native and citizen of Mexico in the United States illegally, was sentenced today by United States District Judge Yvette Kane to 36 months imprisonment and three years of supervised release following his release from imprisonment after pleading guilty to illegal reentry into the United States on March 11, 2014.
According to U.S. Attorney Peter Smith and documents filed in federal court, Espinosa-Hernandez was ordered removed by an Immigration Judge in York, Pennsylvania in May, 2008 and was previously removed from the United States on two prior occasions, in May and June, 2008.
Additionally, Espinosa-Hernandez was granted voluntary returns to Mexico on two other occasions, in December, 1999 and August, 2008. Since 2003 Espinosa-Hernandez has accumulated seven prior criminal convictions as an adult, including resisting arrest and three driving under the influence of alcohol offenses. On September 24, 2013, after having reentered the United States illegally Espinosa-Hernandez was again apprehended in Franklin County by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.
On Wednesday, July 23, 2014, Alberto Bautista-Sanchez, age 30, a native and citizen of Mexico in the United States illegally, was sentenced by United States District Judge Yvette Kane to 41 months imprisonment and three years of supervised release following his release from imprisonment after pleading guilty to illegal reentry into the United States on March 19, 2014.
According to U.S. Attorney Peter Smith and documents filed in federal court, Bautista-Sanchez was ordered removed from the United States by an Immigration Judge in Arizona in November, 2002. Between November 2002 and January 2013, Bautista-Sanchez was previously removed from the United States eight times. Additionally, since 2001, Bautista-Sanchez has accumulated thirteen prior criminal convictions as an adult, including two aggravated felony sex offenses involving a minor.
On December 3, 2013, after reentering the United States illegally, Bautista-Sanchez was apprehended in Franklin County by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.
These cases were investigated by the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) and were prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
****Tuscaloosa County Man Sentenced to Three Years in Prison for Defrauding SBA and Financial InstitutionsRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Tuscaloosa County man to three years in prison for his schemes to defraud financial institutions and the Small Business Administration of more than $3 million, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
DANNY RAY BUTLER, 58, of Fosters, Ala., pleaded guilty in February to three counts each of wire fraud and bank fraud, and consented to forfeit $1.76 million to the government as proceeds of illegal activity. U.S. District Judge L. Scott Coogler sentenced Butler to the prison term, ordered him to forfeit the $1.76 million and to pay restitution of $1.76 million to the SBA and $50,000 to Next Gear Capital, a finance company that loaned money to Butler's used car dealership. The court will decide later the amount of restitution that Butler must pay to Alabama One Credit Union, which he defrauded.
Butler's crimes were related to three separate fraud schemes.
Butler owned and operated Butler Wholesale Inc., a used car lot in Tuscaloosa, and Fosters Groceries, LLC, a company formed to build and operate a grocery store in Fosters. According to his plea agreement and other court records, Butler defrauded the SBA of $1.76 million in connection with a loan to build Fosters Groceries. He also engaged in a check-kite scheme that caused Alabama One Credit Union to lose about $1.28 million, and he misrepresented Butler Wholesale's car inventory to Next Gear Capital, causing Next Gear to lose $50,000.
"The defendant perpetrated his two most lucrative schemes – the SBA fraud and the check-kite scheme – simultaneously, garnering the use of $3 million to satiate his need for money," the government said in its sentencing memorandum. Butler created counterfeit documents, altered existing documents, forged signatures, and repeatedly lied to his several victims, the government said.
The SBA is a federal agency that supports and protects the interests of small businesses. Through public and private partnerships, the agency helps Americans start, build, and grow small businesses. One of its supports is the SBA 504 Loan Program.
In early 2010, Butler sought to borrow about $5 million from West Alabama Bank and Trust to build a grocery store in Fosters. When the bank refused to finance the entire project, Butler applied for and obtained an SBA 504 loan. West Alabama Bank and Trust ultimately agreed to loan Butler half of the project's total cost, and SBA agreed to finance 35 percent. Butler was required to provide the remaining 15 percent as his cash injection into the project.
Almost immediately, after construction was complete, Butler defaulted on the loans by failing to make payments to SBA and West Alabama Bank and Trust as promised, according to court records.
Butler's check-kite scheme in 2011 and 2012 involved carefully timed deposits and checks between his Fosters Groceries account at West Alabama Bank and Trust and his Butler Wholesale account at Alabama One Credit Union, in order to artificially inflate the account balances. He deposited hundreds of checks, totaling about $45 million, from one account to the other at the two financial institutions, according court records. When the bank and trust discovered the check-kite scheme in February 2012 and refused to honor a number of Fosters Groceries' checks deposited into Butler's Alabama One Credit Union account, the credit union lost about $1.28 million.
The third fraud scheme involved Butler's misrepresentations to Next Gear Capital. Butler received loans from Next Gear to buy inventory for his car lot. A specific car secured each loan, and Next Gear inspected the dealership's inventory monthly. According to court records, Butler employed various schemes to defraud Next Gear and continue receiving loans. His misrepresentations included listing cars as part of the dealership's inventory, even though they already had been sold, and lying to Next Gear representatives when they inspected his inventory.
The FBI and SBA-OIG investigated the case. Assistant U.S. Attorney George A. Martin Jr. prosecuted it.Statement of Manhattan U.S. Attorney Preet BhararaOn the Conviction of Daniel HalloranRead the Press Release
“With today’s verdict of guilty reached by an impartial and independent jury, the clean-up of corruption in New York continues in courtrooms. As the jury unanimously found, Daniel Halloran played a key role in two distinct political corruption schemes: first, for $20,000, Halloran was willing and able to serve as a go-between to deliver bribes to political party officials, and second he also took nearly $25,000 in cash and illegal campaign contributions to steer $80,000 in City Council money to other bribe payers. Dan Halloran was the lone defendant in the trial that just ended in his conviction, but he is unfortunately not alone in a crowded field of New York officials who are willing to sell out their offices for self-enrichment. This Office will continue the vigorous prosecution of political corruption to secure for the people of New York – regardless of party affiliation – what they deserve: the honest labors of their elected representatives. And we will continue to partner with the FBI, whose outstanding investigative work in this case was instrumental to achieving a just result.”
Specially Designated Global Terrorist Al-Haramain Islamic Foundation, Inc. Pleads Guilty to Tax FraudRead the Press Release
Conviction Relates to Distribution of $150,000 for ChechnyaEUGENE, Ore. - Amanda Marshall, United States Attorney for the District of Oregon, announced that on July 29, 2014, the Al-Haramain Islamic Foundation (AHIF), Inc., a tax exempt charity registered in Oregon, pleaded guilty in U.S. District Court in Eugene, Oregon to one count of filing a false tax return with the Internal Revenue Service.
The conviction relates to a $150,000 donation AHIF’s parent organization in Saudi Arabia received in 2000, intended to be sent to Chechnya. The $150,000 was wire transferred by the donor from an overseas bank account into an AHIF-US bank account in Ashland, Oregon. An employee of AHIF flew from Saudi Arabia to Oregon and, together with the head of AHIF-US, they withdrew the $150,000, and the funds were transported to Saudi Arabia.
Under U.S. law, tax exempt charities must file a return with the Internal Revenue Service, known as a Form 990, reporting the receipt and distribution of all its donations. An accountant in Medford, Oregon was retained by AHIF-US to prepare the Form 990. This accountant was not told by AHIF that the $150,000 was sent overseas. Instead, AHIF-US representatives informed the accountant that most of the funds were used as part of the purchase price for a building in Missouri, and that a portion of the funds were refunded to the donor. This information was false.
Relying on the information provided to him by AHIF representatives, the accountant prepared a Form 990, which falsely reported how the $150,000 was distributed, and made no mention that the funds were sent overseas. A representative of AHIF-US signed the return and it was filed with the IRS.
In its guilty plea today, AHIF, acting through its attorney, acknowledged that it filed the Form 990 with the IRS, knowing it was false as to a material manner.
Prior to entering the plea agreement, AHIF paid the IRS $121,275.00 to satisfy all taxes, penalties and interest due as a result of the false return. At sentencing, AHIF was placed on probation for three years. During that time, AHIF agreed that it will make no attempt to resume operations as a tax exempt charity in the United States.
In return, the United States agreed to dismiss criminal charges pending against Pirouz Sedaghaty (Pete Seda), the former head of AHIF in the United States. A third defendant, Soliman Al-But’he, remains under indictment. An arrest warrant is outstanding for Al-But’he and he is a fugitive.
“This conviction sends an important message to charities such as Al-Haramain that they need to carefully scrutinize donations to ensure they are used for proper purposes,” said US Attorney Amanda Marshall. “When they fail, and lie to the Internal Revenue Service about where charitable funds are sent, there will be consequences.”
“We have a duty to protect the sanctity of our nation’s charitable donations”, said Special Agent in Charge Kenneth Hines of IRS Criminal Investigation. “When an organization misrepresents the cause and destination of pledged funds, IRS Criminal Investigation, together with our partners at the FBI and Homeland Security Investigations, will be there to bring it to justice. We will not tolerate any organization that exploits its’ exempt status.”
This case was investigated by the IRS, the FBI and Homeland Security Investigations. Assistant U.S. Attorney Chris Cardani, Assistant U.S. Attorney Charles Gorder and First Assistant U.S. Attorney Kent Robinson handled the prosecution of the case.
South Texas Tax Preparer Sentenced to Federal PrisonRead the Press Release
In Del Rio, 34-year-old John Andrew Cardenas of Uvalde, TX, was sentenced to three years in federal prison followed by one year of supervised release and ordered to pay $97,445.95 restitution to the IRS after pleading guilty to preparing fraudulent Income Tax Returns announced U.S. Attorney Robert Pitman and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steven McCollough.
Cardenas is the owner and operator of Cardenas Income Tax Service with offices in Uvalde, Crystal City, Kingsville and Corpus Christi. On August 29, 2013, Cardenas pleaded guilty to one count of aiding and abetting the preparation of a false and fraudulent tax return. By pleading guilty, Cardenas admitted that he knowingly and intentionally prepared tax returns for calendar years 2007, 2008 and 2009 which fraudulently claimed that the taxpayers operated fictitious businesses in order to generate larger tax refunds for the taxpayers.
In addition to the prison term and restitution, Cardenas has expressly consented to a permanent injunction barring him from preparing, filing, or assisting in the preparation of, income tax returns in the future.
“IRS-Criminal Investigation will continue to vigorously pursue unscrupulous return preparers, such as Mr. Cardenas, who abuse their position of trust and prepare fraudulent tax returns. These criminal actions are effectively stealing from hard-working, honest taxpayers who pay their fair share. Taxpayers expect that individuals who present themselves as qualified return preparers will prepare their tax returns accurately and with integrity,” stated IRS-CI Special Agent in Charge McCollough.
Assistant United States Attorneys Bryan N. Reeves and Jay Hulings prosecuted this case on behalf of the Government.
Seven Sentenced to Federal Prison in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
HOUSTON - The final two defendants charged for their roles in a multi-million dollar mortgage fraud scheme operating in the Houston area have been ordered to prison, announced United States Attorney Kenneth Magidson. Din Chaney, 36, and Lisa Lipton, 50, admitted to participating in a conspiracy to commit bank, mail and wire fraud as did Catherine Sanoubane, 35, Jose Batista, 36, Dennis Hannah, 43, Nathaniel Gordon III, 32, and Shawn Lewis Washington, 38.
All were convicted of the conspiracy. Chaney, Sanoubane, Hannah and Gordon also admitted to conspiracy to commit money laundering
Today, U.S. District Judge Lee H. Rosenthal sentenced Chaney to a total of 36 months, while Lipton received a 52-month-term of imprisonment. Lipton and Chaney were also ordered to pay $3,499,129.06 and $4,551,917.65 in restitution, respectively.
Sanoubane, Hannah, Gordon, Washington and Batista were all sentenced earlier this year to respective terms of 115, 46, 24, 97 and six months in federal prison. All were also ordered to pay restitution in varying amounts ranging from more than $1.6 million to more than $6.3 million.
The scheme involved the recruitment of straw borrowers to purchase residential properties at an inflated value. Financing was obtained from various lenders who were provided false and fraudulent information meant to induce them to fund the loans. The defendants arranged to be compensated with a portion of the loan proceeds.
Ultimately, the loans fell into default which resulted in a substantial loss to the lenders. Sanoubane, Lipton, Chaney and Gordon were all licensed loan officers in the State of Texas engaged in mortgage lending during the commission of the fraud. In addition, Lipton was also a licensed mortgage broker doing business as TWMC Inc.
The criminal investigation was led by the FBI, U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Melissa Annis is prosecuting.
Ringleader of Tax Refund Check Scam Admits $2.6 Million ConspiracyRead the Press Release
NEWARK, N.J. - The ringleader of a conspiracy to steal income tax refund checks issued by the United States today admitted his role in the scheme, which led to the theft of more than $2.6 million from the government, U.S. Attorney Paul J. Fishman announced.
Raymundo Hernandez, 35, of Bronx, New York, pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to an information charging him with conspiracy to steal government funds.
According to the documents filed in this case and statements made in court: Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They complete IRS-1040 tax return forms using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data, always ensuring that fraudulent tax return generates a refund. The perpetrators then direct the U.S. Treasury Department to mail the refund checks to locations they control or can access. In some cases, they bribe mail carriers to remove the refund checks from their mail routes. With the fraudulently obtained refund checks in hand, the perpetrators generate cash proceeds by depositing the checks into bank accounts they control.
Hernandez admitted he knew the checks had been generated by conspirators filing false and fraudulent income tax returns with the IRS in order to obtain refunds to which he was not entitled. He admitted that from November 2010 through October 2012 he recruited and maintained a network of conspirators in the Newark and Bronx areas and distributed fraudulent treasury checks to that network in exchange for payment. Hernandez obtained at least 44 such checks from Luis Pena, 32, of Bronx, who pleaded guilty to his role in the conspiracy in March 2014. Pena had arranged for the fraudulent checks to be sent to a postal route and intercepted by the mail carriers on that route: Gloria Rivera 40, of Bronx, and Lourdes Ortiz, 41, of Bronx, Rivera and Ortiz also entered guilty pleas in March 2014 to their respective roles in the conspiracy.
Hernandez admitted that once he distributed the fraudulent checks, he and his conspirators deposited them into bank accounts, primarily in the names of businesses they controlled and then withdrew large amounts of the proceeds in cash. They used some of the money to purchase cars and gamble at Atlantic City casinos.
The fraudulently cashed checks totaled $2,659,718. Of these deposits, $171,589 was deposited into three bank accounts under Hernandez’ direct control.
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing before U.S. District Judge Faith S. Hochberg is currently scheduled for Nov. 6, 2014.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; postal inspectors of the U. S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and special agents of the U.S. Postal Service - Office of Inspector General, under the direction of Special Agent in Charge Rafael A. Medina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-264Defense counsel: Roy Greenman Esq., Union, N.J.
Hernandez, Raymundo Information
Return Preparer Pleads Guilty in Identity Theft Tax Refund Scheme Involving Personal Identification Information of Miami-Dade County Public School StudentsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that Donald Claude, 34, of Miramar, pled guilty today to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing is scheduled for October 24, 2014. At sentencing, Claude faces up to 20 years in prison for wire fraud, and a mandatory term of two years in prison, consecutive to any other term in prison, for aggravated identity theft.
According to court documents, Claude was the Chief Executive Officer of J&D Tax Services, LLC. Claude obtained an Electronic Filing Identification Number (EFIN) for J&D Tax Services, LLC which permitted Claude and co-defendant James Jean-Baptiste to file tax returns electronically in the names of other individuals. Claude also obtained a Preparer Tax Identification Number (PTIN) as a tax preparer that permitted him to identify himself as the preparer on tax returns electronically filed in the names of other individuals.
Claude and Jean-Baptiste obtained the personal identification information (PIl) of students from an employee of Miami-Dade County Public Schools. Claude and Jean-Baptiste used the students’ stolen identities to file false and fraudulent tax returns with the IRS to fraudulently obtain tax refunds for their personal use and benefit. Claude and his co-conspirators caused over $200,000 in false and fraudulent tax refund claims to be submitted to the IRS from 2009 through 2011 through his EFIN and PTIN.
James Jean-Baptiste was charged with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, seven counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and seven counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Jean-Baptiste remains at large.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
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.
Real Estate Developer Admits Diverting Money from Trenton Affordable Housing ProjectsRead the Press Release
TRENTON, N.J. – The developer of three Trenton affordable housing projects admitted today that he made false statements to a financial institution to divert project money for personal and other unauthorized purposes, and to conducting a transaction with the proceeds of this crime, U.S. Attorney Paul J. Fishman announced.
Robert Kahan, 68, of Sunny Isles Beach, Florida, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to two counts of an indictment charging him with making false statements in a loan application (Count 8) and to transacting in criminal proceeds that resulted from those false statements (Count 12).
According to documents filed in this case and statements made in court:
Between 2006 and 2009, Kahan was a developer of three affordable housing projects in Trenton – the Canal Plaza Homeownership Project, the Southwest Village II Project and the Catherine S. Graham Project – for which he obtained both private and public funding.
The Southwest Village II Project was a project to construct 52 affordable housing units. Kahan diverted substantial portions of the project’s financing from a $6,435,000 construction loan from Roma Bank to his own personal use, his other development projects and other uses that were outside of the project budget. In October 2008, Kahan diverted $343,354 of Southwest Village II project financing and applied it as a down payment to purchase a Florida condominium. In numerous payment applications made to the loan administrator for the project financing requesting advances of loan and subsidy money, Kahan falsely stated that all money that he was previously paid had been used to pay costs for labor, materials and other obligations for the Southwest Village II Project.
The count of making false statements in a loan application carries a maximum potential penalty of 30 years in prison and a $1 million fine. The charge of transacting in criminal proceeds carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Kahan has agreed to forfeit $989,901 in criminal proceeds. Sentencing is scheduled for Nov. 18, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Christina Scaringi, Special Agent in Charge, Northeast Region, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Eric Moran in Trenton and Senior Litigation Counsel Mark J. McCarren in Newark, both of the U.S. Attorney’s Office Special Prosecutions Division.
14-268Defense counsel: Scott Krasny Esq., West Trenton, New Jersey
Kahan, Robert Indictment
Pittsfield Man Pleads Guilty to Producing, Possessing Child PornographyDefendant Agrees to 40-50 Years in PrisonRead the Press Release
BOSTON - A Pittsfield man pleaded guilty today in federal court to producing and possessing child pornography.
Jason Gendron, 34, pleaded guilty to 16 counts of sexual exploitation of minors by producing child pornography and possessing child pornography.
Between May 13, 2011 and August 24, 2012, Gendron produced 16 files of child pornography, most of which were video files that depicted Gendron engaged in sexually explicit conduct with minor females, aged approximately two, three, eight, and 13-years-old. In addition, on July 16, 2013, Gendron possessed other files of child pornography.
Pursuant to a plea agreement, Gendron will be sentenced to between 40 to 50 years in prison, to be followed by 10 years of supervised release. Gendron has also agreed to pay restitution to the minor females depicted in the child pornography collection, and to forfeit his computer media. Gendron also faces a maximum $250,000 fine on each count.
United States Attorney Carmen M. Ortiz; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; Bruce M. Foucart, Special Agent in Charge of the Department of Homeland Security Investigations in Boston; and Michael Wynn, Chief of the Pittsfield Police Department made the announcement today. The case was investigated by the Massachusetts State Police, with assistance from Homeland Security Investigations and the Pittsfield Police Department. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Pittsburgh Man Sentenced for Conspiring to Distribute Heroin While on Federal Supervised ReleaseRead the Press Release
PITTSBURGH – Terrious Harper, of Pittsburgh, Pa., was sentenced to 84 months in prison for conspiring to distribute over 100 grams of heroin, United States Attorney David J. Hickton announced today.
Harper, 30, was sentenced in Pittsburgh by United States District Judge Nora Barry Fischer. Judge Fischer also imposed a four-year term of supervised release to follow the prison sentence.
At the time Harper was conspiring to distribute heroin, he was on federal supervised release following a prior prison sentence for being a convicted felon in possession of a firearm. Judge Fischer ordered that the prison sentence run consecutively to the 24-month prison sentence Harper received for violating the terms of his federal supervised release.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction and sentence in this case.
Physician Assistant and Certified Nursing Assistant Convicted in $200 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Miami convicted a physician assistant and a certified nursing assistant, both South Florida residents, for their participation in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health care company headquartered 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 Reginald France of the Health and Human Services Office of Inspector General (HHS-OIG) region including all of Florida made the announcement.
Roger Bergman, 65, a physician assistant licensed in Florida, and Rodolfo Santaya, 55, a certified nursing assistant licensed in Florida, were each charged in an indictment on Jan. 28, 2014. Yesterday, Bergman was found guilty of conspiracy to commit health care fraud and wire fraud and conspiracy to make false statements relating to health care matters. Santaya was found guilty of conspiracy to commit health care fraud and wire fraud, conspiracy to pay and receive bribes and kickbacks, and two counts of receiving bribes and kickbacks in connection with a federal health care benefit program.
ATC, Medlink Professional Management Group Inc. – a management company associated with ATC – and multiple individuals, including ATC’s owners, have all previously pleaded guilty or have been convicted at trial in connection with the fraud scheme. ATC operated purported partial hospitalization programs (PHPs) in seven locations throughout Orlando and south Florida. A PHP is a form of intensive treatment for severe mental illness.
According to evidence presented at trial, Bergman, Santaya and their co-conspirators caused the submission of fraudulent claims to Medicare through ATC seeking reimbursement for mental health services that were not provided or were provided to patients who were not eligible to receive the services. Bergman, who worked at ATC’s Miami and Homestead, Florida, offices, created, falsified and signed fraudulent medical documentation to make it appear to Medicare that ATC’s patients qualified for, and received, PHP services, even though they did not. Santaya received hundreds of thousands of dollars in illegal kickback payments in exchange for delivering ineligible Medicare beneficiaries to ATC’s Homestead office.
Throughout the course of the conspiracy, ATC and its employees paid tens of millions of dollars in kickbacks in exchange for the names and identification numbers of Medicare beneficiaries so that ATC could fraudulently bill Medicare for PHP services that it never provided or that it purportedly provided to beneficiaries who were not eligible to receive PHP treatment.
The case is being 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. The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorneys Nicholas E. Surmacz and Kelly Graves of the Criminal Division.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .
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.
Palm Beach Resident Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that United States District Judge Jose E. Martinez sentenced Tia Lashonda Miller, 39, of West Palm Beach, to 70 months imprisonment, to be followed by 2 years of supervised release. .
Miller previously pled guilty to one count of unlawful possession of more than fifteen access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Miller was found in possession of notebooks containing stolen personal identifying information (PII) for 726 persons (including names, dates of birth and social security numbers), and 20 debit cards, eighteen of which were in the names of persons also found in the notebooks. The IRS determined that approximately 59 of the names and accompanying information were used to file fraudulent tax returns. During a court-authorized search of Miller’s home, agents found additional names and identifying information of identity theft victims, and some letters from the IRS addressed in other persons’ names. Miller admitted that she went to houses, collected mail and debit cards, and gave the envelopes and cards to two other individuals, whom Miller knew were filing fraudulent tax returns using the stolen PII.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Martin County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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.
PG&E Charged with Obstruction of the Investigation of the National Transportation Safety Board and Additional Violations of the Natural Gas Pipeline Safety ActRead the Press Release
SAN FRANCISCO – A federal grand jury for the Northern District of California returned a superseding indictment charging Pacific Gas and Electric Company (PG&E) with obstruction of the investigation of the National Transportation Safety Board (“NTSB”), as well as additional violations of the Natural Gas Pipeline Safety Act of 1968 (PSA), announced U.S. Attorney Melinda Haag, California Attorney General Kamala D. Harris, San Mateo County District Attorney Stephen M. Wagstaffe, U.S. Department of Transportation Office of Inspector General Special Agent in Charge William Swallow, and FBI Special Agent in Charge David J. Johnson.
The superseding indictment alleges that PG&E obstructed the NTSB’s investigation that began immediately after the deadly San Bruno explosion. According to the superseding indictment, during the course of the NTSB’s investigation, PG&E provided a version of a policy outlining the way in which PG&E addressed manufacturing threats on its pipelines. PG&E later withdrew that policy claiming it was produced in error, and was an unapproved draft. In fact, PG&E was operating under the so-called unapproved draft from 2009 through April 5, 2011. The consequence of this practice was that PG&E did not prioritize as high-risk, and properly assess, many of its oldest natural gas pipelines, which ran through urban and residential areas.Additionally, the superseding indictment charges PG&E with 27 counts of knowingly and willfully violating the PSA. These charges stem from PG&E’s record keeping and pipeline “integrity management” practices. The superseding indictment alleges that PG&E failed to address recordkeeping deficiencies concerning its larger natural gas pipelines knowing that their records were inaccurate or incomplete. The superseding indictment also alleges that PG&E failed to identify threats to its larger natural gas pipelines and that PG&E did not take appropriate actions to investigate the seriousness of threats to pipelines when they were identified. Finally, the superseding indictment alleges that PG&E failed to adequately reprioritize and assess threatened pipelines after the pipelines were over pressurized as required by the PSA and its regulations.
PG&E is charged with one count of obstruction of an agency proceeding in violation of 18 U.S.C. §1505, and 27 separate counts of violations of the PSA. The maximum statutory penalty for each count is a $500,000 fine or a fine based on the twice the gross gain PG&E made as a result of the violations, or twice the losses suffered by the victims. The superseding indictment alleges that PG&E derived gross gains of $281 million, and victims suffered losses of approximately $565 million. PG&E is next scheduled to appear on August 18, 2014 before the Honorable Thelton E. Henderson, United States District Judge.
Kim A. Berger and Hallie M. Hoffman are the Assistant U.S. Attorneys who are prosecuting the case, with the assistance of Alycee Lane and Pat Mahoney, along with Deputy Attorneys General Brett Morris and Deborah Halberstadt from the California Attorney General’s Office. The prosecution is the result of an investigation conducted by the San Mateo County District Attorney’s Office, the United States Department of Transportation Office of Inspector General, the FBI, the Pipeline and Hazardous Material Safety Administration, and the city of San Bruno Police Department.Please note, an indictment contains only allegations and, as with all defendants, PG&E must be presumed innocent unless and until proven guilty.
(PG&E superseding indictment )
Owner of Lone Wolf Outdoor Supplies in Calamas Is Sentenced After Pleading Guilty to Transfer of Unregistered Machine GunRead the Press Release
DAVENPORT, IA - On July 28, 2014, Larry Lee Brauer, age 63, from Calamus, Iowa, owner of Lone Wolf Outdoor Supplies was sentenced by United States District Court Judge John A. Jarvey to 14 months imprisonment, after pleading guilty to possession and transfer of an unregistered machine gun, announced United States Attorney Nicholas A. Klinefeldt. Brauer was also ordered to serve one year of supervised release following the term of imprisonment, pay a $5,000 fine, and pay $100 towards the Crime Victims Fund.
In September 2013, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents began an investigation of the potential ongoing possession of machine guns, silencers, and sawed off shotguns at Brauer’s business in Calamus, Iowa, and requested a National Firearms Act (NFA) check on Larry Brauer. An NFA check queries all registered NFA firearms through ATF, and the National Firearms Registration and Transfer Record (NFRTR), which is the central registry of all NFA firearms in the United States. The results of the check show no NFA firearms registered to Brauer.
By federal law, to possess an NFA firearm, it must be registered to the owner in this registration database. Machineguns, silencers, and sawed off shotguns are all NFA firearms which must be registered within the NFRTR. On October 19, 2013, law enforcement officers conducted a controlled purchase of a Norinco, MAK-90 machine gun from Brauer at Lone Wolf Outdoor Supplies. This firearm was later determined to be a functioning machine gun that was required to be registered under the NFA.
On November 13, 2013, law enforcement officers performed a search of Lone Wolf Outdoor Supplies and Brauer’s residence pursuant to federal search warrants. Officers found and seized an additional six sawed off shotguns, a firearm with a silencer, and a second machine gun. None of these firearms were properly registered as required by the NFA.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Davenport, Iowa, Police Department, the Clinton County Sheriff’s Office, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Owner of Home Health Agency Sentenced to Nearly Five Years for Bilking Medicare Out of $5 Million in Health Care Fraud SchemeRead the Press Release
LOS ANGELES – A registered nurse who operated GreatCare Home Health, Inc., a home health agency based in the Westlake district of Los Angeles, has been sentenced to 57 months in federal prison for orchestrating a $5 million Medicare fraud scheme involving kickbacks to doctors and patients who did not qualify for in-home health services provided by GreatCare.
Hee Jung Mun, who often used the name Angela Mun, 52, of Rancho Palos Verdes, was sentenced late yesterday by United States District Judge Dean D. Pregerson. In addition to the prison term, Judge Pregerson also ordered Mun to pay $5.144 million in restitution to Medicare.
As part of the investigation, authorities previously seized $1.2 million from bank accounts owned by Mun and GreatCare. Another federal judge ordered Mun to pay nearly $15 million to resolve a “whistleblower” lawsuit associated with the scheme (see: http://www.justice.gov/usao/cac/Pressroom/2013/116.html).
Mun pleaded guilty in 2012 and admitted orchestrating a three-year scheme to defraud Medicare. In her plea agreement, Mun admitted that she bilked Medicare out of millions by 1) paying illegal kickbacks to doctors and individuals known as “cappers” or “marketers” for patient referrals, and to patients themselves to sign up for home health services, 2) billing Medicare for patients who were not homebound or who otherwise did not quality for home health services, and 3) billing Medicare for services provided by unlicensed individuals or not provided at all.
The scheme targeted elderly, primarily Korean, Medicare beneficiaries. GreatCare was shut down by federal agents after the execution of a search warrant there in March 2011.
While Mun was the leader of the scheme, seven other defendants have been convicted in related cases for their roles in the Greatcare fraud:
shortly after Mun’s sentencing yesterday, Sang Whan Ahn, 60, of Koreatown, who recruited many of GreatCare’s Medicare beneficiaries in exchange for illegal kickbacks, was sentenced to four months in prison;
doctor Whan Sil Kim, also known as “Victoria,” 71, of Hancock Park, was sentenced to a year and a day in prison for receiving illegal kickbacks for health care referrals;
one of GreatCare’s nurses, Hwa Ja Kim, also known as “Helen,” 70, of Harbor City, was sentenced to 18 months in prison for signing off on patient evaluations and visits she did not do;
Yeong Ja Lee, 52, of Mid-City, one of the unlicensed individuals Greatcare used to see patients and create fake paperwork, was sentenced to 15 months in prison just last week;
physical therapist Seonweon Kim, 48, of Arcadia, is scheduled to be sentenced on October 6; and
GreatCare employee Jung Sook Lee, 53, of Koreatown is scheduled to be sentenced on October 20.
An eighth defendant in the case, Registered nurse Ji Hae Kim, 43, of Fullerton, is a fugitive.
“Home health scams and the payment of illegal kickbacks to physicians remain serious problems in the Los Angeles area, costing taxpayers millions of dollars,” said Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (OIG) Los Angeles Region. “Home health remains a top oversight priority for OIG, and we will continue to work with our law enforcement partners to aggressively investigate and prosecute anyone who engages in home health fraud.”
In a related “whistleblower” lawsuit brought by one of GreatCare’s former employees, two other GreatCare referring doctors, Dr. Dong Shin and Dr. Bo W. Paik, agreed to pay $217,810 and $530,000, respectively, to resolve allegations that they received cash payments and patient referrals in exchange for referring Medicare beneficiaries to GreatCare.
Dr. Kim has agreed to pay $1.088 million as a part of a consent judgment for her conduct, while Seonweon Kim has agreed to pay $205,000 to resolve his civil liability related to GreatCare.
The investigation into GreatCare was conducted by the Federal Bureau of Investigation and United States Department of Health and Human Services, Office of the Inspector General.
Release No. 14-098