Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 July 2014
Jury Convicts Man of Impeding Boston Marathon Bombing InvestigationRead the Press Release
BOSTON – A federal jury in Boston has convicted a friend of alleged Boston Marathon bomber, Dzhokhar Tsarnaev, for impeding the bombing investigation.
The jury found Azamat Tazhayakov, 20, guilty of conspiring to obstruct justice and obstructing justice with the intent to impede the Boston Marathon bombing investigation. U.S. District Judge Douglas P. Woodlock scheduled sentencing for October 16, 2014.
In August 2013, Tazhayakov was indicted for obstructing a terrorism investigation. Tazhayakov is a national of Kazakhstan who was temporarily living in the United States on a student visa while attending the University of Massachusetts Dartmouth, but at the time of his arrest his visa had been revoked.
The evidence at trial proved that on April 18, 2013, after the release of photographs of the two men suspected of carrying out the Marathon bombings (who were later identified as Tamerlan Tsarnaev and Dzhokhar Tsarnaev), Tazhayakov and others went to Tsarnaev’s dormitory room and found items that linked Tsarnaev to the bombing, including fireworks from which “gunpowder” appeared to have been removed and a jar of Vaseline that they believed could be used to make bombs. A forensic examiner testified that Vaseline can be used to make improvised explosive devices. A month before the bombing, Tsarnaev had told Tazhayakov that it would be good to die as shaheed (martyr) and that he knew how to build a bomb. Tsarnaev also identified specific ingredients one could use to make a bomb, including “gunpowder.”
After searching Tsarnaev’s dormitory room on the evening of April 18, 2013, Tazhayakov helped remove Tsarnaev’s laptop and a backpack containing fireworks, a jar of Vaseline, and a thumb drive. Later that night while Tazhayakov was monitoring the manhunt for the Tsarnaev brothers, he discussed getting rid of the backpack containing the fireworks and agreed to get rid of it. The backpack was then placed in a garbage bag and then thrown into a dumpster outside Tazhayakov’s New Bedford apartment. The FBI recovered this backpack a week later, after 25 agents spent two days searching a landfill in New Bedford.
The charging statute provides a sentence of no greater than 20 years in prison on the obstruction of justice count and five years on the conspiracy count, three years of supervised release, and a fine of $250,000 for each charge. Tazhayakov will also be deported at the conclusion of this prosecution. 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, Assistant Attorney General for National Security John Carlin and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation was conducted by the FBI's Boston Division and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Massachusetts State Police, University of Massachusetts Dartmouth Department of Public Safety, New Bedford Police Department, Dartmouth Police Department, U.S. Department of Transportation – Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), Essex County Sheriff’s Office, and Internal Revenue Service, Criminal Investigations, provided assistance to this investigation.
The case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.
Inland Empire Man Who Admitted Sex Trafficking of A Child Who Worked as Prostitute Sentenced to 17½ Years in Federal PrisonRead the Press Release
RIVERSIDE, California – A resident of Quail Valley who pleaded guilty to sex trafficking charges – and admitted forcing a 14-year-old girl to work as a prostitute – was sentenced today to 210 months in federal prison.
Kawaum Marquez Scott, 24, received the 17½-year sentence from United States District Judge Virginia A. Phillips.
Scott pleaded guilty in May to two counts of sex trafficking of a child.
Scott’s codefendant – Nekeyia Necole Weatherspoon, who also used the name “Keey Bee,” 22, of Perris – pleaded guilty at the same time to one count of conspiracy to engage in child sex trafficking.
According to court documents, Scott and Weatherspoon forced a 14-year-old victim into prostitution. The defendants, who took photos of the victims and used the pictures to advertise services on the Internet, drove the victim to destinations in Hemet to engage in prostitution, made her use an alias, and advised her to tell male customers that she was 18 years old. Scott and Weatherspoon took all the money paid to the girl for the sex acts.
According to court documents, on one occasion in October 2012, Scott and Weatherspoon brought the victim to a motel in Hemet, where she engaged in sex with multiple men over a two-day period, and received approximately $2,500 in payment, all of which went to the defendants.
“Scott knowingly sold a child to adult men for sex,” prosecutors wrote in a sentencing memorandum filed with the court. “He did so repeatedly and without regard for her safety or well-being. He provided her with drugs and alcohol while she worked for him. He threatened the child victim and her family, and at one point used force to retrieve money from her that he perceived to be his.”
Weatherspoon is scheduled to be sentenced by Judge Phillips on September 8. In a plea agreement for Weatherspoon, prosecutors and the defense agreed that she should be sentenced to between 84 and 168 months in federal prison.
The investigation in this case was conducted by the Riverside County Sheriff’s Department and the Federal Bureau of Investigation, which are members of the Inland Child Exploitation Task Force (ICEP), a multi-agency effort that investigates matters of child exploitation, primarily the sexual trafficking of minors.
Release No. 14-093
Hattiesburg Man Sentenced on Child Pornography ChargesRead the Press Release
Hattiesburg, Miss - Grantham Armstrong Mitchell, 20, of Hattiesburg, was sentenced today in U.S. District Court to 15 years in federal prison for production of child pornography and 7 years for possession of child pornography, announced U.S. Attorney Gregory K. Davis and FBI Acting Special Agent in Charge Johnnie Sharp. The two sentences will be served concurrently and followed by an eight year term of supervised release. Mitchell was also ordered to pay restitution in the amount of $1,591.
Mitchell previously pled guilty to producing a video of himself and a minor child engaging in sexually explicit conduct in Orange Beach, Alabama in 2012. He also possessed numerous images and videos of minor children, as young as twelve years old, engaging in sex with adults.
The investigation in this case began when a complaint was received from the National Center for Missing and Exploited Children regarding possible child pornography being uploaded to a Dropbox account via the Internet. An investigation was conducted by members of the FBI’s Child Exploitation Task Force (CETF) which is comprised of special agents of the FBI and investigators from the Mississippi Attorney General’s Office and the Rankin County Sheriff’s Office. The investigation led to the execution of a search warrant for a computer and other electronic devices owned by Mitchell. A forensic review of the computer determined that it contained images and videos of suspected child pornography and led to the identity of the minor child in the video produced by Mitchell. The case was prosecuted by Assistant United States Attorney Glenda Haynes.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Glenarden Crack Dealer Sentenced to 6 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Clifton Robotham, age 41, of Glenarden, Maryland, today to six years in prison, followed by four years of supervised release, for possession with intent to distribute crack cocaine.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Robotham’s plea agreement, on August 30, 2012, aPrince George’s County Police Department (PGPD) officer attempted to conduct a traffic stop of a vehicle being driven by Robotham. Rather than pull over, Robotham attempted to elude the officers, eventually driving to the end of a dead end street, then exiting the vehicle and running away. A PGPD officer in the neighborhood saw Robotham running through a nearby yard, caught up to Robotham and placed him under arrest. Robotham resisted arrest refusing commands to place his hands behind his back. While he was resisting arrest, Robotham put a plastic bag of crack cocaine in his mouth and began to chew the bag. Robotham was eventually handcuffed and he spit out the plastic bag. The bag and the crack cocaine Robotham had spit out on the grass were recovered, along with a plastic bag containing eight smaller bags of crack cocaine that was recovered from his pants pocket.The total weight of the crack cocaine recovered from Robotham was 53.55 grams.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore and the Prince George’s County Police Department, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kelly O. Hayes and Mara Zusman Greenberg, who prosecuted the case.
Fort Yates Man Pleads Guilty to Sexual Abuse of a MinorRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on July 24, 2014, Isaiah Standing Crow, 18, Fort Yates, N.D., pleaded guilty before U. S. District Judge Daniel L. Hovland to a charge of sexual abuse of a minor.
Between March 30, 2014, and April 2, 2014, Standing Crow engaged in sexual acts with a minor on the Standing Rock Indian Reservation. Sentencing for Standing Crow has been scheduled for Nov. 14, 2014, in U.S. District Court in Bismarck, N.D., at 1:30 p.m.
The charge of sexual abuse of a minor carries a statutory maximum penalty of 15 years in federal prison and a fine of up to $250,000.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency.
Assistant U. S. Attorney Gary Delorme is prosecuting the case.
Fort Thompson Man Sentenced for Felon in Possession of FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Felon in Possession of Firearm was sentenced on July 14, 2014, by U.S. District Judge Roberto A. Lange.
Peter Leslie Coleman, a/k/a Perry Coleman, age 51, was sentenced to time served (47 days), 18 months of supervised release, a $250 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Coleman was indicted by a federal grand jury on December 10, 2013. He pled guilty on April 23, 2014.
The conviction stems from an incident on November 12, 2013, when a Bureau of Indian Affairs (BIA) Agent observed that Coleman failed to stop at a stop sign at an intersection within the exterior boundaries of the Crow Creek Indian reservation. A traffic stop was conducted and the agent observed Coleman move a rifle from the front passenger side of the vehicle to the floor board area behind the driver’s seat. Coleman admitted he was hunting that morning, and knew he was prohibited from possessing a firearm.
The investigation revealed that Coleman was convicted of Possession with Intent to Distribute a Controlled Substance in U.S. District Court, District of South Dakota, on July 10, 1992, and was sentenced to 32 months in custody.
This case was investigated by the BIA, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Former West Virginia Dhhr Employee Pleads Guilty to FraudRead the Press Release
CHARLESTON, W.Va. – Shannon Collins, 41, of Logan, West Virginia, plead guilty today in federal court in Charleston to defrauding the West Virginia Department of Health and Human Resources (DHHR). In 2009, Collins, also known as Shannon Varney, worked as a case worker for the DHHR office in Logan County. Using the social security number of two deceased individuals, Collins set up bogus accounts upon which she made claims for benefits, and had the checks mailed to her. Collins also obtained Mountain State Cards (formerly known as the food stamp program), which she used from April to December of 2009. The total combined loss was in excess of $58,000.
Collins faces a maximum penalty of 30 years confinement and a potential fine of up to $500,000. Sentencing has been scheduled for October 29, 2014.
The investigation was conducted by the West Virginia DHHR, assisted by the United States Postal Inspection Service, and the United States Offices of Inspector General for the Department Health and Human Services, the Social Security Administration and the Department of Agriculture. Assistant United States Attorney Erik S. Goes is in charge of the prosecution.
Former Tennessee Department of Transportation Contract Employee Sentenced to Two Years in PrisonRead the Press Release
NASHVILLE, Tenn. – July 21, 2014 - Michael W. Young, 55, formerly of Nashville, Tenn. and currently residing in Clermont, Florida, was sentenced on July 15, 2014, to serve two years in prison for stealing $974,000 of federal funds designated for state roadway projects and for laundering funds derived from that crime, announced U.S. Attorney David Rivera. Young was also ordered to pay $221,690 in restitution to the State of Tennessee, which is the balance of the stolen funds that were not recovered.
“Criminal breaches of public trust and theft of taxpayers’ money intended for the benefit of residents of the Middle District of Tennessee occupy a high priority with this office,” said U.S. Attorney David Rivera. “Our law enforcement partners will continue to investigate such crimes and bring violators to justice.”
Young was employed from 2004 until 2012 as a contract agent for Tennessee and was responsible for purchasing property rights-of-way for road expansions for the Tennessee Department of Transportation (TDOT), with funding provided by the United States. Young admitted to Chief Judge Joseph Haynes that after the property owner agreed to sell the rights-of-way, TDOT issued checks to him to complete the purchase but instead, he used the funds for his own personal and business expenses. Young admitted that he diverted these TDOT funds from 2004 until 2012, when an audit disclosed the thefts and the total diverted funds had reached $974,000. Young concealed and covered the shortages of cash needed for property purchases with new funds later provided by TDOT that were intended for subsequent transactions, in the fashion of a typical “Ponzi” scheme.
Young was initially charged in criminal information filed on December 2, 2013.
“Some people think that stealing from the government is a victimless crime - it’s not,” said Christopher A. Henry, Special Agent- in- Charge of the IRS-Criminal Investigation. “The victims in this case are every taxpayer of the State of Tennessee. I hope this sentence sends a clear message to those who would consider conducting or participating in this type of fraudulent activity. It will not go undetected and they will be held accountable.”
TDOT Commissioner John Schroer commended the efforts leading to the conviction adding, "State agencies must be diligent in identifying schemes to defraud the public. This conviction is the result of coordinated efforts by department staff and federal authorities."
This case was jointly investigated by the U.S. Department of Transportation- Office of Inspector General, the FBI, the IRS-Criminal Investigations and the Tennessee Department of Transportation. The case was prosecuted by Assistant U.S. Attorney Hilliard Hester.
Former Senior Executive of Qualcomm Pleads Guilty to Insider Trading and Money LaunderingRead the Press Release
Jing Wang, 51, the former Executive Vice President and President of Global Business Operations for Qualcomm Inc., today pleaded guilty to insider trading in shares of Qualcomm and Atheros Communications Inc. Wang also pleaded guilty to laundering the proceeds of his insider trading using an offshore shell company.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney L aura E. Duffy of the Southern District of California made the announcement. Wang pleaded guilty today in federal court in San Diego before U.S. District Judge William Q. Hayes .
“Not satisfied with his lucrative executive position at Qualcomm, Jing Wang traded on insider information about the company’s acquisitions and earnings to gain an illegal advantage in the financial market,” said Assistant Attorney General Caldwell. “Wang then laundered close to $250,000 in insider trading profits, and created a cover-up story to hide his crimes. We will continue to prosecute those who believe they can make easy money by breaking the laws that ensure a level playing field in the financial marketplace.”
“Jing Wang blatantly and repeatedly abused the trust placed in him by Qualcomm and the company’s shareholders,” said United States Attorney Duffy. “To make matters worse, he then misused the financial system to conceal his insider trading profits and enlisted his brother and stock broker to obstruct several investigations. Wang’s obstructive acts, though ultimately unsuccessful, were serious affronts to the rule of law. We will continue to use our excellent partnerships with the Criminal Division, the FBI, IRS-CI and our other law enforcement partners to not only prosecute securities fraud, but also disrupt attempts like Wang’s to obscure criminal conduct from the eyes of government investigators.”
According to court documents, Wang committed insider trading on three separate occasions over a ten-month period in 2010 and 2011. In early 2010, Wang purchased approximately $277,739 of Qualcomm stock prior to the company’s unexpected announcement of a dividend increase and stock repurchase program. In December 2010, while in Hong Kong, Wang purchased Atheros stock hours after Qualcomm’s Board of Directors made a non-public offer to purchase Atheros. Just a few weeks later, in January 2011, Wang directed his stock broker, Gary Yin, to sell the Atheros stock in a brokerage account held in the name of an offshore entity, Unicorn Global Enterprises, and used the proceeds to purchase Qualcomm stock, one day before Qualcomm announced record earnings results. In total, Wang illegally gained approximately a quarter of a million dollars from these three illegal transactions.
Wang also pleaded guilty to money laundering resulting from transferring the illegal proceeds in the Unicorn account – over $525,000 – to another nominee brokerage account in the British Virgin Islands for Clearview Resources Ltd. Wang also admitted in his plea agreement to obstructing justice by conspiring with his brother, Bing Wang, and Yin to fabricate evidence and concoct a false cover story that Bing Wang conducted the illegal stock trades. Sentencing is scheduled for Nov. 17, 2014.
Wang was originally indicted in September 2013. Bing Wang, who is currently believed to reside in China, remains charged and is wanted on an international arrest warrant. Gary Yin pleaded guilty to conspiring with Jing Wang and Bing Wang to obstruct justice and launder money, and is currently scheduled to be sentenced on Sept. 15, 2014.
The department appreciates the substantial assistance it received from the Securities and Exchange Commission’s Los Angeles Regional Office.
This case was investigated by the FBI’s San Diego Field Office and the Internal Revenue Service-Criminal Investigation’s San Diego Field Division. The case is being prosecuted by Trial Attorney James P. McDonald of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eric J. Beste of the Southern District of California.Former Rosemead Mayor Sentenced to Prison in Corruption Case Involving Cash Payments, Witness Tampering, Lies to InvestigatorsRead the Press Release
LOS ANGELES – The former mayor of the City of Rosemead was sentenced today to 21 months in federal prison after pleading guilty to attempted witness tampering and making false statements to FBI agents conducting a corruption investigation.
John Tran, 38, of Rosemead, was sentenced this morning by United States District Judge Dale S. Fischer.
Tran pleaded guilty late last year to the witness tampering and false statement charges. In a plea agreement filed in United States District Court, Tran acknowledged that he received approximately $38,000 in payments from a developer in exchange for Tran’s promise to help her obtain permits for a project.
The witness tampering resulted from Tran asking the developer to lie to a federal grand jury by denying that she had recently met with Tran or paid Tran any money.
Tran made false statements to the FBI in 2011 when special agents went to his home to conduct an interview and Tran denied receiving anything but campaign contributions from the developer.
Tran was elected to the Rosemead City Council in 2005 and was mayor of Rosemead from 2007 to 2009.
In addition to the prison term, Judge Fischer ordered Tran to pay $38,000 in restitution, most of which has already been recovered by the FBI.
The case against Tran was investigated by the Federal Bureau of Investigation.
Release No. 14-089
Former Officer Sentenced for Excessive Force and Obstruction ChargesRead the Press Release
Lindrith Tsoodle, 58, was sentenced today by U.S. District Judge Daniel Hovland to serve 15 months in prison for two incidents in which he used excessive force against an arrestee and for lying to a federal agent. Tsoodle was further ordered to serve two years of supervised release following completion of his prison term. On April 1, 2014, a federal jury convicted Tsoodle on these three charges.
Tsoodle was a police officer with the Three Affiliated Tribes Police Department in New Town, North Dakota, on the Fort Berthold Reservation. He was convicted of twisting the neck of a handcuffed suspect, throwing him to the ground and dropping a knee on him. He was also convicted of, on a separate occasion, excessively tightening the handcuffs of an arrestee, slamming him against the wall, using pepper spray on the arrestee and striking him with his hands and a baton. Both of these actions occurred while the suspects were restrained. Tsoodle was also convicted of telling various false statements to a U.S. Bureau of Indian Affairs Special Agent, who interviewed the defendant regarding one of the assaults.
“Our system of government requires police officers to abide by the laws they enforce and to protect the constitutional rights of all persons in their custody,” said Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division. “This officer used his official position to commit civil rights abuses and then lied about his actions. The Department of Justice will continue to prosecute vigorously law enforcement officers who use their power to violate federal law.”
“With our colleagues at the Civil Rights Division, the U.S. Attorney’s Office is committed to protecting the civil rights of the citizens on the reservations in North Dakota,” said U.S. Attorney Timothy Purdon for the District of North Dakota. “This prosecution shows that our commitment to public safety on the reservations is matched by our commitment to a vigorous enforcement of civil rights of all people.”
This case was investigated by the Minot Resident Agency of the Minneapolis Division of the FBI and was prosecuted by Trial Attorneys Gerald Hogan and Nicholas Durham of the Civil Rights Division.
Former Financial Advisor from Gloucester County, N.J., Pleads Guilty to $900,000 Investment FraudRead the Press Release
CAMDEN, N.J. – A former financial advisor from Mantua, New Jersey, admitted today to defrauding his clients of more than $900,000 by diverting their investment checks for his personal use, U.S. Attorney Paul J. Fishman announced.
John Montague, 59, pleaded guilty today to an information charging him with one count of wire fraud. Montague entered his guilty plea before U.S. District Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and statements made in court: Montague was licensed to sell mutual funds, variable annuities, and insurance premiums – but at no time was he licensed to sell corporate or municipal securities, direct participation programs or options. Montague engaged in a scheme to defraud his clients by soliciting and inducing them to purchase investment vehicles Montague knew he was not authorized to sell. Montague described the investment vehicles to his clients as guaranteed investments and promised a rate of return of approximately six percent. Montague instructed his clients to make their investment checks payable to him. He then deposited the checks into his personal bank accounts. To maintain the clients’ confidence in the investments, Montague issued periodic “dividend” checks to his clients.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 28, 2014.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, for the investigation leading to today’s guilty plea.
The government is represented by Attorney in Charge R. Stephen Stigall of the U.S. Attorney’s Office Criminal Division in Camden.
14-256Defense counsel: John J. Waldron Esq., Allentown, Pennsylvania
Montague, John Information
Former Bank of America Employee Sentenced to 30 Months in Federal Prison for Taking Bribes to Approve Artificially Low-Price Short SalesRead the Press Release
LOS ANGELES – A former Bank of America employee was sentenced this morning to 30 months in federal prison for taking more than $1.2 million in bribes to approve artificially low-price short sales of properties on which the bank held mortgages.
Kevin Lauricella, 29, of Thousand Oaks, was sentenced by United States District Judge Otis D. Wright II. In addition to the 2½-year prison term, Judge Wright ordered Lauricella to pay $5.7 million restitution to Bank of America and to forfeit his residence, which had been purchased with some of the bribe money.
In January, Lauricella pleaded guilty to two felony charges – receiving bribes and making false entries in the bank’s books and records. The fraudulent short sales that Lauricella approved in return for the bribes resulted in at least $5.7 million in losses to the bank. The fraudulent short sales also clouded the title on the properties, which in turn resulted in expensive litigation for innocent parties, including individuals who purchased the homes later.
Lauricella worked in the Short Sale Department of Bank of America’s Simi Valley office in 2010 and 2011. He was responsible for negotiating short sale transactions, in which a lender allows property securing a mortgage or deed of trust to be sold for less than the existing loan balance, usually because the borrower can no longer make the payments due on the loan or because the fair market value of the property has dropped below the balance due. By approving the short sale, the lender agrees to release the lien on the property securing the mortgage even though the lender will receive less than the full amount owed.
In return for bribes – which were paid by various individuals who purchased the properties so they could be “flipped” – Lauricella used his position to “approve” short sales that he was not authorized to approve and that were for sales prices far below the fair market value of the subject properties. Lauricella then made false entries in Bank of America’s computer system to make it appear that Bank of America had approved the short sales for the below-market prices. When he pleaded guilty, Lauricella admitted approving fraudulent short sales for at least nine properties.
The case against Lauricella is the result of an investigation by the Federal Bureau of Investigation.
Release No. 14-090
Federal Jury Convicts Tax PreparersRead the Press Release
Action E-File Services Had Several Locations in North Texas
DALLAS — Following a nearly two-week-long trial, two local tax preparers were convicted this morning by a federal jury in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas
Carolyn Joy Clark, the owner of Action E-File service, a tax preparation business with three locations in Irving and Grand Prairie, Texas, was convicted on one count of assisting in the preparation of a false tax return. Mickey Joe Perez, a manager and tax preparer, was convicted on seven counts of the same. Eight former employees have pleaded guilty and are awaiting sentencing: Frances Rodriguez Pineda, Maritza Munoz Villanueva, Clara Elizabeth Carcamo, Hugo Molino, Ivette Ramirez, Jose Paleo, Leslie Cisnero, and Veronica Torres.
The government presented evidence that during the years 2008 through 2010, Action E-File Services electronically filed 54,760 income tax returns for customers. According to testimony from six of the former employees who pleaded guilty, approximately 75 to 90 percent of the returns they prepared contained false deductions or credits.
Further evidence at trial revealed that during this same period, Clark, 72, received $5.5 million in fees from the bank that processed Refund Anticipation Loans for her many customers.
Each count of conviction for Clark and Perez carries a maximum statutory sentence of three years in federal prison and a $250,000 fine. Sentencing is set for November 7, 2014.
Internal Revenue Service Criminal Investigation investigated. Assistant U.S. Attorneys Christopher Stokes and J. Nicholas Bunch prosecuted.
Edmond Man Charged with Traveling to Kenya to Engage in Illicit Sexual Conduct with Underage ChildrenRead the Press Release
Oklahoma City, Oklahoma – Late last Friday, a criminal complaint was unsealed charging MATTHEW LANE DURHAM, 19, from Edmond, Oklahoma, with traveling to Kenya to engage in illicit sexual conduct with underage children, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, Durham was a volunteer at the Upendo Children’s Home, located in Nairobi, Kenya, that was founded by an American citizen who is a resident of Edmond, Oklahoma. Upendo specializes in assisting neglected Kenyan children by providing them with food, housing, clothes, school and religion. The school is funded through sponsorships and donations. It is alleged that Durham volunteered with Upendo in June of 2012, June of 2013, December of 2013, and from April 30 to June 17, 2014. It is alleged that on the latest trip to Kenya, Durham stayed at the children’s home in an “overflow bunk” rather than at an offsite facility with a sponsor family where he stayed on prior visits. The complaint alleges that during the period from April to June of 2014, Durham engaged in sexual acts with multiple children, male and female, ranging in ages from four to ten. Reference is made to the criminal complaint for further information.
Durham was arrested on July 17, 2014, and appeared before a United States Magistrate Judge in Oklahoma City late last Friday afternoon. He is held without bond and a preliminary hearing is scheduled for August 1, 2014.
If convicted, Durham faces up to life in prison. The public is reminded that Durham is presumed innocent unless and until proven guilty.
This case is the result of an investigation by the Federal Bureau of Investigation, the United States Embassy in Kenya, and the United States Department of State Diplomatic Security Criminal Investigative Office. The case is being prosecuted by Assistant U.S. Attorney Robert Don Gifford, II.
Dupree Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a federal contract officer.
Cleveland Buckman, age 37, was indicted on July 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Buckman is alleged to have forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a Cheyenne River Sioux Tribe law enforcement officer in June 2014 in Dupree. The incident resulted in physical contact with and bodily injury to the law enforcement officer.
The charge is merely an accusation and Buckman is presumed innocent until and unless proven guilty.The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Buckman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dupree Man Charged with Aggravated Sexual Abuse of A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Christian Whiteman, age 20, was indicted on July 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is at least 30 years up to life in custody and/or a $250,000 fine, a minimum of 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that between October 1, 2012, and May 29, 2013, Whiteman engaged in, or attempted to engage in, a sexual act with a child under the age of 12.
The charge is merely an accusation and Whiteman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Whiteman was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Drug Transporter Arrested in Kern County Pleads GuiltyRead the Press Release
FRESNO, Calif. —Enrique Reynosa, 37, pleaded guilty today to possessing with intent to distribute methamphetamine and cocaine, according to United States Attorney Benjamin B. Wagner.
According to court documents, Reynosa was stopped on Highway 99, south of State Route 119, for a traffic violation. Six pounds of methamphetamine, eight pounds of cocaine, and $1,510 were found inside the car after Reynosa provided consent to search the vehicle. As part of the guilty plea, Reynosa agreed to forfeit the 2008 Chevrolet Silverado 150 Crew Cab he was driving and $1,510 in cash seized during the vehicle stop.
Reynosa is scheduled for sentencing on September 29, 2014, before Senior U.S. District Judge Anthony W. Ishii. Reynosa faces 10 years to life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Dickinson N.D. Man Sentenced in Bank RobberyRead the Press Release
FARGO - U. S. Attorney Timothy Q. Purdon announced that on July 21, 2014, Rendell Charles Hardy, 41, of Dickinson, N.D., was sentenced before U. S. District Judge Ralph R. Erickson to serve 12 years and six months in prison for bank robbery and possession of a firearm during the commission of a violent crime.
On Oct. 25, 2013, at approximately 9:30 a.m., Hardy and codefendant Satrone Rashard Boyd forcefully robbed Northland Financial in Medina, N.D. wearing Halloween masks. After quickly approaching the teller, Hardy, in possession of a handgun, demanded money from bank employees after which the two men fled the scene. Boyd and Hardy used a stolen vehicle as a getaway vehicle. They were identified by video at a truck stop near the Star Lite Motel in Jamestown, N.D. The surveillance video showed them throwing the masks and a set of keys into the dumpster by the Star Lite Motel. Hardy was later apprehended in Dickinson.
The case was investigated by the Federal Bureau of Investigation together with the Stutsman County Sheriff’s Office, the North Dakota Highway Patrol, the Dickinson Police Department and the Fargo Police Department.
Assistant U.S. Attorney Keith Reisenauer prosecuted the case.
Defendants from Inyo and Fresno Counties Sentenced in Separate Child Exploitation CasesRead the Press Release
FRESNO, Calif. — Two men were sentenced today for their convictions in separate child exploitation cases, United States Attorney Benjamin B. Wagner announced.
Case 1:12-cr-383-AWI
Senior United States District Judge Anthony W. Ishii sentenced Luis Alfredo Espinoza, 24, of Riverdale, to nine years in prison, to be followed by 15 years of supervised release, for receipt and distribution of child pornography.According to court documents, investigators determined that Espinoza was making child pornography available through a file-sharing program. When a search warrant was executed at his residence on November 5, 2012, his computer contained at least 191 still images and 260 video images of minors being sexually abused. Some of the victims were under five years old, and several images depicted violence, bondage, or other sadistic or masochistic conduct. Espinoza admitted that he had used different file-sharing programs to access child pornography for many years. While Espinoza is on supervised release, his access to minors, computers, and the Internet will be restricted. He has been in custody since he pleaded guilty on April 28, 2014.
This case was the result of an investigation by the Fresno office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Case 1:14-cr-053-LJO
United States District Judge Lawrence J. O’Neill sentenced Lorenzo Hernandez Martinez, 37, of Bishop, to 18 months in prison, to be followed by 36 months of supervised release, for attempted transfer of obscene material to a minor.According to court documents, Martinez communicated through Facebook chats from mid-October 2013 through February 2014 with someone whom he believed to a 14 year-old female in Oregon. Martinez quickly turned the communications in a sexual direction, and he repeatedly transmitted explicit images. In fact, Martinez was communicating with an undercover detective in Corvallis, Oregon. The Corvallis Police Department worked with the Bishop Police Department and the Bakersfield FBI office to identify Martinez. When a search warrant was executed at his residence on March 11, 2014, agents seized a cellphone that contained communications with the undercover detective in Oregon as well as sexually explicit images that Martinez said he had transmitted to minors, including a minor female in China. Because he has resided in the United States without legal authorization for the past 18 years, Martinez also agreed not to challenge his removal from the United States.
Assistant United States Attorney David Gappa prosecuted both cases. They have been 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Dallas Man Sentenced to 64 Months in Federal Prison for Robbing A Credit UnionRead the Press Release
DALLAS — Anthony Galloway, 38, of Dallas, was sentenced this morning by U.S. District Judge Sam A. Lindsay to 64 months in federal prison after pleading guilty in February 2014 to one count of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed in the case, at approximately 4:00 p.m. on November 15, 2013, a man, later identified as Galloway, entered the Go Federal Credit Union located at 4040 North Central Expressway in Dallas and presented a note to a teller that stated, “I have a gun, give me the money or I’ll shoot you!” Realizing it was a robbery and seeing the robber act as though he were reaching for a gun, the teller, in fear of her life, gave the robber cash from her drawer.
Galloway was arrested a short time later at an apartment on Holmes Street in Dallas.
The FBI, the Dallas Police Department and the Mesquite Police Department investigated. Assistant U.S. Attorney Keith Robinson prosecuted.
Coto De Caza Man Pleads Guilty in Investment Schemes That Bilked Physicians and Dentists Out of More Than $2 MillionRead the Press Release
SANTA ANA, California – An Orange County man pleaded guilty to defrauding dozens of doctors and others of more than $2 million in separate schemes that promised large returns on investments in the medical and dental fields.
David Rose, 57, of Coto de Caza, pleaded guilty today in United States District Court to one count of wire fraud and one count of mail fraud.
According to court documents, over a six-year period that ran through May 2011, Rose solicited physicians to invest in an Irvine company he called M.D. Venture Partners (MDVP) and falsely promised lucrative returns on investments in emerging medical technologies.
In a subsequent scheme, Rose used Technology Innovation Partners (TIP) to solicit dentists and orthodontists to invest, claiming funds would be pooled and invested in a company developing ablation technology that would be used to remove wisdom teeth in children without surgery.
Throughout both schemes, investor funds were misused, with Rose using victims’ money for personal expenses. According to a plea agreement filed in court, Rose used investor funds to pay $7,500-a-month rent for a house in Coto de Caza, college tuition, luxury vehicles, an $80,000 Sea Ray boat and shares in the Green Bay Packers.
The investigation revealed that no money was invested by either MDVP or TIP.
In the MDVP scheme, Rose caused approximately 32 victims to lose more than $900,000, according to court documents. In the TIP scheme, 45 victims lost more than $1.4 million.
Rose was arrested in May 2013 and has remained in custody since that time.
Rose pleaded guilty before United States District Judge James V. Selna, who is scheduled to sentence the defendant on November 24. At sentencing Rose faces a maximum statutory sentence of 40 years in federal prison.
The case against Rose is the product of an ongoing investigation by the Federal Bureau of Investigation.
Release No. 14-094
Corpus Christi Man Sentenced for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Lee Marvin Koerner, 50, has been ordered to prison following his conviction of possession of child pornography, announced United States Attorney Kenneth Magidson. Koerner pleaded guilty April 21, 2014.
Today, Senior U.S. District Judge John D. Rainey sentenced Koerner to 60 months in federal prison to be immediately followed by 10 years of supervised release. In determining an appropriate sentence, the court considered the lasting harm done to the victim as well as the need to protect the public from Torres in the future. He must also register as a sex offender.
Koerner came to the attention of law enforcement in October 2013 when he attempted to use his email address to distribute an image of child pornography to another email account. A search warrant was conducted on Koerner’s Corpus Christi home, which led to the eventual discovery of more than 1100 images and 200 videos of suspected child pornography.
At that time, Koerner admitted to using a computer to access the Internet to obtain images of child pornography and that he had engaged in this behavior for several years.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the conviction was conducted by the Corpus Christi Police Department’s Internet Crimes Against Children Task Force with the assistance of Homeland Security Investigations.
This case, prosecuted by Assistant U.S. Attorney Lance Duke, 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."
Conspirator Sentenced to Prison in $2.3 Million Government Contract Fraud SchemeRead the Press Release
Ordered to Pay Over $400,000 in Restitution
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Christopher Johnson, age 36, of Clinton, Maryland today to 18 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a scheme to defraud businesses which supplied goods under government contracts. Judge Grimm also entered an order that Johnson pay restitution of $426,376.99.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, from December 2007 to May 2013, Johnson and his co-conspirators used at least seven businesses in Maryland, Delaware, Georgia, Nevada, North Carolina and Tennessee which they incorporated to bid on contracts to provide goods – such as books, snowmobiles, plants and paint – to federal, state and local government agencies. The conspirators’ businesses included: The Encompass Group, The Crescant Group Inc., Taylor Hailey Group, United Partners Consulting Group, Worldwide Industries, Global Synergy Group and Parktech Group.
Most of the contracts were awarded using an online marketplace. The conspirators’ businesses often submitted extremely low bids to secure the contracts. Once awarded the contracts, Johnson enticed victim businesses to act as subcontractors and supply the goods required by contract by providing fake references and by falsely promising that the subcontractors would be paid after the government paid Johnson. After the subcontractors delivered the goods required by the contracts, government agencies paid Johnson, typically by electronic transfers to bank accounts set up in the business names but controlled by Johnson and his conspirators. Johnson and his conspirators fraudulently retained these proceeds for their own personal benefit and did not pay the subcontractors.
The conspirators typically operated under a particular business name for six to 12 months until the business was either disqualified from the online marketplace or burdened with lawsuits or liens. The conspirators then continued the scheme under a newly-registered business name. The conspirators initially used their true names and addresses to register their businesses, but later attempted to conceal their true identities by using aliases.
From December 2007 to March 2013, Johnson and co-conspirator Larayne Whitehead received at least 144 bank deposits from governmental agencies totaling approximately $2,321,058.95 of which $426,376.99 was reasonably foreseeable to Johnson. The scheme involved between 10 and 50 business victims.
Larayne Whitehead, age 35, also of Clinton, Maryland, previously pleaded guilty to her participation in the conspiracy and has agreed to forfeit $2,393,579 and a car. Whitehead is scheduled to be sentenced on August 18, 2014.The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
Cocaine Trafficker Exiled to 10 Years in Prison on Drug and Gun ChargesRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Marvin Bowden, Jr., age 31, of Colmar Manor, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, and for conspiracy to carry and use firearms in furtherance of a crime of violence and drug trafficking.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Maryland Attorney General Douglas F. Gansler.
According to his plea agreement and court documents, from May 9 to 16, 2013, Bowden conspired with Shane Hare, Antonio Edwards and Gregory Williams to rob drug dealers operating in Baltimore, Maryland, and sell over five kilograms of cocaine, using firearms.
On May 9, 2013, Bowden and his conspirators were introduced to an undercover ATF agent who proposed robbing a stash house operated by a drug cartel of multiple kilograms of narcotics. Bowden and his coconspirators agreed to commit the robbery and intended to resell the stolen narcotics to customers in the Prince George’s County and Washington Metropolitan area.
On May 14, 2013, Bowden and his conspirators met again with the undercover agent and outlined their plan to carry guns and execute the robbery soon after the undercover agent entered the stash house. The conspirators told the undercover agent that they would wear black clothing with police insignias as disguises and yell “Police” upon entering.
On May 16th, the conspirators left the hotel room they used to prepare for the robbery and met with the undercover agent, telling him that they were ready to commit the robbery. The conspirators followed the undercover agent to a secluded location in Laurel where they believed they would be told of the location of the stash house. On arrival, the conspirators confirmed again that they were ready to commit the robbery and had weapons to be used during its commission. After discussing final preparations, law enforcement arrested them, and seized two loaded pistols from under and in the car used by the conspirators.
Between five and 15 kilograms of cocaine were reasonably foreseeable to Bowden’s participation in the conspiracy.
Shane Elliott Hare, age 27, of Hyattsville, Maryland; Antonio Edwards, age 40, of Capital Heights, Maryland; and Gregory Antoine Williams, age 28, of Washington, D.C., were all convicted at trial on July 27, 2014 of conspiracy to interfere with commerce by robbery; conspiracy to possess with the intent to distribute cocaine; conspiracy to carry and use firearms in furtherance of a crime of violence and drug trafficking; and carry and use of firearms in furtherance of a crime of violence and drug trafficking. Edwards was also convicted of possession of ammunition by a felon. They are scheduled to be sentenced on September 29, 2014.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorneys Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, and Jennifer Sykes, a prosecutor with the Department of Justice Criminal Division, who prosecuted the case.
Coast Guard Interdicts 3,591 Pounds of Marihuana, Detains 5 Suspected Smugglers in the Caribbean SeaRead the Press Release
SAN JUAN, Puerto Rico – The Coast Guard seized more than 3,500 pounds of marihuana with an estimated wholesale value of $3.5 million and detained five suspected smugglers during a drug interdiction in the Caribbean Sea, Southwest of Cabo Rojo, Puerto Rico.
Michael Dacosta, Shawn A. Ally, Nolan E. Connelly, Ron D. Griffith, and Owen K. Drakes were charged in a complaint authorized by Magistrate Judge Silvia Carreño-Coll on July 17, for conspiracy to possess a controlled substance on board a vessel subject to the jurisdiction of the United States. Defendants continue detained at the Metropolitan Detention Center.
While on patrol July 8, the Coast Guard Cutter Northland detected the suspicious 68-foot motor vessel An-Nur transiting the Caribbean Sea with five crewmembers onboard. Northland’s boarding team discovered 3,591 pounds of marijuana onboard. The Northland crew seized the marijuana, detained the crew, and took the An-Nur in tow.
“The strong international, federal and local law enforcement partnerships in our area have again proven their effectiveness in preventing drug shipments from reaching Caribbean shores,” said Capt. Robert Warren, commander of the Coast Guard Sector San Juan. “We are committed to disrupting the flow of illegal drugs in the Caribbean Sea and will continue to aggressively pursue and prosecute suspected smugglers.”
The Northland transferred the illegal drug shipment, the vessel, and detainees to the custody of Customs and Border Protection and Federal Bureau of Investigation special agents, who will be leading a criminal investigation into the case as part of the Caribbean Corridor Strike Force.
“Once again the combined efforts of federal law enforcement agencies resulted in the seizure of millions of dollars’ worth of narcotics. Our message continues to be the same: we will detect and interdict drug smugglers attempting to flood our island with their poisonous cargo,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These arrests are a clear indication of the continued success of the Caribbean Corridor Strike Force.”
Since October 2013, the Coast Guard has seized 17,591 kilograms of cocaine and 4,341 pounds of marihuana during 25 counter-drug interdictions under Operation Unified Resolve, in partnership with regional law enforcement authorities in the Caribbean. The wholesale value for these seizures is worth more than $444 million.
The Coast Guard’s efforts under Operation Unified Resolve contribute to the interagency results being achieved each and every day locally under Operation Caribbean Guard, which coordinates efforts between the Coast Guard, DHS and Commonwealth and Territorial law enforcement partners, who are working diligently to deter, detect and disrupt illicit maritime trafficking to Puerto Rico and the U.S. Virgin Islands.
The U.S. Attorney’s Office created the CCSF to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the High Intensity Drug Trafficking Area and Organized Crime Drug Enforcement Task Force that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of Immigrations and Customs Enforcement-Homeland Security Investigation the U.S. Attorney for the District of Puerto Rico, Drug Enforcement Administration, FBI, the Coast Guard, CBP and Puerto Rico Police Joint Forces for Rapid Action.
The Coast Guard Cutter Northland is a 270-foot medium endurance cutter homeported in Portsmouth, Va.
The case is being prosecuted by Special Assistant United States Attorney Glenn Goetchius.
The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations. Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
City Dispatcher Pleads Guilty in Bribery ConspiracyRead the Press Release
PHILADELPHIA – Dorian Parsley, 44, of Philadelphia, pleaded guilty today to conspiracy, solicitation of a bribe, and honest services fraud in connection with a scheme to give an unfair advantage to certain tow truck operators. Between February 2011 and December 2013, Parsley, a former Philadelphia Police Department (“PPD”) dispatcher, used her position to provide confidential police information, such as locations of automobile accidents, locations of PPD squad cars, and vehicle registration information, to tow truck operators who provided her with cash bribe payments. She typically received $100-$200 per week for the information. She agreed that she received $35,400 in bribes.
Parsley would surreptitiously text information that came into PPD dispatch from her personal cellphone directly to those tow truck operators. For an additional cash fee, Parsley agreed to provide certain tow truck operators with the name and address of a vehicle owner by running the license plate and vehicle registration through the PPD dispatch computer. PPD computers automatically access the National Crime Information Center (“NCIC”) located in West Virginia when a vehicle registration was inputted, thereby affecting an interstate wire.
Co-defendant William Cheeseman also pleaded guilty today to one count of bribery for paying Parsley cash bribes for the information on accident locations. He agreed that the value of the information he received was $9,000.
Parsley faces a potential statutory maximum penalty of 35 years in prison, three years of supervised release, a $750,000 fine, and a $300 special assessment. Cheeseman faces a potential statutory maximum sentence of 10 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment. The court scheduled Parsley’s sentencing date on October 21, 2014 and Cheeseman’s on October 24, 2014.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Churchrock, N.M., Man Pleads Guilty to Federal Second Degree Murder ChargeRead the Press Release
ALBUQUERQUE – Kevin Martinez, 21, an enrolled member of the Navajo Nation who resides in Churchrock, N.M., pleaded guilty today to a second degree murder charge. Under the terms of his plea agreement, Martinez will be sentenced to 108 months in federal prison followed by a term of supervised release to be determined by the court.
Martinez was arrested on March 20, 2014, on a criminal complaint charging him with killing a 45-year-old Navajo man on March 5, 2014, in a location within the Navajo Indian Reservation. Martinez subsequently was indicted on April 9, 2014, and charged with second degree murder.According to court filings, Martinez killed the victim in a secluded location outside of Gallup, N.M., on the evening of March 5, 2014. Martinez was arrested after officers learned that he was driving the victim’s vehicle after the victim had been reported missing. During a custodial interview, Martinez admitted killing the victim and led law enforcement officers to the area where he had concealed the victim’s body. According to autopsy results, the victim died as a result of multiple sharp force and blunt force trauma, including a large incised sharp force trauma to the neck that severed the victim’s jugular vein.
During today’s plea hearing, Martinez pled guilty to the indictment and admitted killing the victim on March 5, 2014. According to the plea agreement, Martinez became acquainted with the victim through an Internet website and met the victim in Gallup on March 5, 2014. Martinez and the victim then drove in the victim’s vehicle to a secluded area. There, Martinez became enraged and pushed the victim when the victim ridiculed him. The victim responded by retrieving a knife and threatened Martinez with it, but Martinez was able to take the knife from the victim. During a physical altercation that ensued, Martinez killed the victim by hitting him in the head with a large piece of wood and repeatedly stabbing him with the knife.
Martinez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, with assistance from the McKinley County Sheriff’s Office and the New Mexico State Police. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
Chester Man Sentenced for Possession of Migratory Birds and Lacey Act ViolationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chester, South Dakota, man has been charged with federal offenses of Possession of Migratory Birds and Lacey Act Violation by an Information filed June 2, 2014.
Robert Masterson, Sr., age 53, pled guilty to and was sentenced on July 15, 2014, by U.S. Magistrate John E. Simko. Masterson received 2 years of probation, a $3,000 fine, $5,025 in restitution, and a $35 special assessment to the Federal Crime Victims Fund.
The conviction stems from incidents that took place between January 1, 2013, and April 3, 2013, when Masterson was unlawfully selling wild game, specifically geese, which had been received under the auspice of the Sportsman Against Hunger Program. Masterson, d/b/a/ Bob’s Custom Meat, held a Federal Fish and Wildlife Special Purpose Permit, authorizing him to receive and possess migratory birds, specifically geese, lawfully taken during the 2012 goose hunting seasons. This permit specifically required that all geese received be donated to a not-for-profit distribution center and that any purchase, sale, barter, or trade of the migratory birds, or any parts of migratory birds, was illegal.
During the course of the investigation, Masterson illegally sold goose jerky on several occasions in early 2013.
The investigation was conducted by the U.S. Fish & Wildlife Service and the South Dakota Department of Game, Fish and Parks. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Broward County Sheriff’s Deputy Sentenced in Connection with Rothstein InvestigationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), announce that David Benjamin, 48, of Boca Raton, was sentenced today in Ft. Lauderdale by U.S. District Judge James I. Cohn to five years in prison, to be followed by three years of supervised release. Benjamin was also ordered to pay $22,071.00 in restitution for conspiring to commit crimes in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). On May 13, 2014, Benjamin pled guilty to conspiracy to commit extortion and to violate civil rights, in violation of Title 18, United States Code, Section 371. At the time of the offense, Benjamin was a Lieutenant and served as Executive Officer to then Sheriff Al Lamberti.
When he entered his guilty plea, the defendant admitted that he utilized his position within BSO unlawfully to further the interests of RRA, its Chairman and CEO, Scott W. Rothstein, and other persons associated with Rothstein. Specifically, Benjamin admitted that he received approximately $185,000 in money and other things of value from Rothstein and RRA in return for providing his assistance when needed, including arranging with another deputy to arrest the ex-wife of an attorney who was engaged in a child custody dispute with her, arranging to use force and threats of force against the boyfriend of an escort who was threatening to expose the illicit relationship which existed between the escort and one of the partners at RRA, and assisting Rothstein in loading cash and jewelry onto a private airplane which was used by Rothstein to flee to Morocco on October 27, 2009, as the Ponzi scheme being conducted through RRA was beginning to unravel.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and BSO. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
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.
Box Elder Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Gerald Davis, a/k/a Jerry Davis, age 54, was indicted on March 18, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 14, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Davis failing to register as a convicted sex offender between September 6, 2013, and March 18, 2014, in South Dakota.
The charge is merely an accusation and Davis is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.Davis was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for September 16, 2014.
Boise Man Sentenced to 108 Months in Prison for Drug ChargesRead the Press Release
BOISE – Victor Luetta Guzman, 60, of Boise, Idaho, was sentenced to 108 months in prison followed by four years of supervised release for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. Chief District Judge B. Lynn Winmill sentenced Guzman at the federal courthouse in Boise. Guzman pleaded guilty to the charges on April 16, 2014.
According to the plea agreement, Guzman admitted that he sold methamphetamine to an undercover police officer on eight separate occasions beginning in August 2013 and ending in October 2013. Guzman admitted that during the eight transactions he sold the officer a total of over 50 grams of methamphetamine. On October 22, 2013, law enforcement agents recovered a firearm from Guzman’s residence. As part of the plea agreement, Guzman agreed that he possessed the firearm in connection with the drug distribution.
The case was primarily investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Boise Police Department as an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF partners include 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.
Baltimore Man Sentenced to 5 Years in Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Justin Stevens, age 31, of Baltimore, today to five years in prison, followed by 25 years of supervised release, for distribution of child pornography. Judge Hollander ordered that upon his release from prison, Stevens must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to Stevens’ plea agreement, on January 2, 2013, after a computer chat with Stevens, an undercover law enforcement agent downloaded 11 files depicting children engaged in sexually explicit conduct from Stevens’ computer utilizing file sharing software. After reviewing the downloaded files, the National Center for Missing and Exploited Children issued a report indicating that three of the files depicted at least one child previously identified by law enforcement as being a victim of child exploitation.
A search warrant was obtained for Stevens’ residence on January 30, 2013 and a computer, multiple external hard drives and other digital media were seized. A forensic examination of the computer and one of the hard drives recovered over 600 images of child pornography, including numerous images documenting the sexual abuse of prepubescent children. Also observed in plain sight during the execution of the search warrant was drug paraphernalia, drug packaging and drugs, which were tested and determined to be methamphetamine.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Wilmington for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Bakersfield Man Sentenced to One Year in Prison for Structuring Cash DepositsRead the Press Release
BAKERSFIELD, Calif. — Miguel Antonio Ruiz Jaramillo, 67, of Bakersfield, was sentenced today by United States District Judge Lawrence J. O’Neill to one year in federal prison and was ordered to pay $91,527 in unpaid federal taxes, U.S. Attorney Benjamin B. Wagner announced. Jaramillo was also ordered to perform 600 hours of community service.
According to court documents, from January 2010 through July 2012, Jaramillo cashed more than fifty checks in amounts of $10,000 or less at Valley Republic Bank located in Bakersfield, totaling more than $420,000. Jaramillo had the checks cashed in this manner to prevent, or attempt to prevent, the bank from filing a Currency Transaction Report on those transactions. He did not want a CTR filed because for the years 2010 and 2011, he did not declare the structured cash transactions as income on his federal tax returns.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Bakersfield Police Department under the auspices of the Central California Financial Crimes Task Force (CCFCTF), which is dedicated to investigating and prosecuting money laundering and Bank Secrecy Act crimes in the San Joaquin Valley. CCFCTF is composed of special agents from the Internal Revenue Service, Criminal Investigations (IRS-CI), Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bakersfield Police Department, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Patrick Delahunty prosecuted the case.
Jaramillo was ordered to self-surrender in sixty days.
Albion Man Charged with Possessing with Intent to Distribute MethamphetamineRead the Press Release
Follow @SDILNewsDillion Wayne Bailey, 29, of Albion, Illinois, has been charged in United States District Court in Benton with possessing with intent to distribute methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on July 8, 2014, stemmed from Bailey’s arrest by the Grayville Police Department following a traffic stop shortly after 10:00 p.m. on June 13th , during which approximately 2 ounces of methamphetamine were located in the vehicle Bailey was driving.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Bailey faces up to 20 years in federal prison, $1 million fine, and a term of 3 years to life of supervised release to follow his incarceration.
Following a hearing held today, Bailey was denied bond on the federal charges and remanded to the custody of the United States Marshal to await further proceedings. Bailey’s next scheduled court appearance is August 29th at 9:30 a.m. for a final pre-trial conference at the United States District Courthouse in Benton. A trial date of September 8th at 9:00 a.m. has also been set.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Grayville Police Department with the assistance of the United States Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Alabama Hospital System and Physician Group Agree to Pay $24.5 Million to Settle Lawsuit Alleging False Claims for Illegal Medicare ReferralsRead the Press Release
Mobile, Alabama-based Infirmary Health System Inc. (IHS), two IHS-affiliated clinics and Diagnostic Physicians Group P.C. (DPG) have agreed to pay the United States $24.5 million to resolve a lawsuit alleging that they violated the False Claims Act by paying or receiving financial inducements in connection with claims to the Medicare program, the Justice Department announced today.
“Financial arrangements that compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patients’ needs,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “The Department of Justice is committed to preventing illegal financial relationships that undermine the integrity of our public health programs.”
The government’s suit alleged that two IHS affiliated clinics -- IMC-Diagnostic and Medical Clinic, in Mobile, and IMC-Northside Clinic, in Saraland, Alabama -- had agreements with DPG to pay the group a percentage of Medicare payments for tests and procedures referred by DPG physicians, in violation of the Physician Self-Referral Law (commonly known as the Stark Law) and the Anti-Kickback Statute. Also named in the lawsuit was Infirmary Medical Clinics P.C. (IMC), an affiliate of IHS that directly owns and operates approximately 30 clinics in the Mobile area, including the two clinics involved in this lawsuit.
The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids a hospital or clinic from billing Medicare for certain services referred by physicians who have a financial relationship with the entity.
According to the government’s complaint, in 1988, IMC purchased IMC-Diagnostic and Medical Clinic from DPG and agreed to pay DPG a share of the revenues the clinics collected, including Medicare revenues from diagnostic imaging and laboratory tests. After IMC acquired the IMC-Northside Clinic in 2008, the physicians practicing there joined DPG and entered into an agreement with the same key terms as the earlier agreement with IMC-Diagnostic and Medical Clinic. The government contended that these payments were illegal kickbacks and constituted a prohibited financial relationship under the Stark Law, and that in June 2010, an attorney for DPG warned employees of both IMC and DPG that the compensation being paid to the physicians likely violated the law. Nevertheless, the agreements allegedly were neither modified nor terminated for another 18 months.
The lawsuit was originally filed by Dr. Christian Heesch, a physician formerly employed by DPG, under the whistleblower provisions of the False Claims Act. Those provisions authorize private parties to sue on behalf of the United States and to receive a portion of any recovery. The act permits the United States to intervene and take over the lawsuit, as it did in this case with respect to some of Dr. Heesch’s allegations. Dr. Heesch will receive $4.41 million as his share of the settlement.
“Today’s settlement represents a single but significant step towards achieving integrity in the administration of public health programs in this region,” said U.S. Attorney Kenyen Brown for the Southern District of Alabama. “Physicians, physician groups and other medical entities operating illegally within public health programs will be held accountable. I also commend whistle blowers like Dr. Christian Heesch, who helped bring this particular case to light.”
As part of the settlement announced today, the settling defendants have also agreed to enter into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), which obligates the defendants to undertake substantial internal compliance reforms and to submit its federal health care program claims to independent review for the next five years.
“Patients must know that medical advice is based on best practices, not on their provider’s bottom line,” said HHS-OIG Special Agent in Charge Derrick L. Jackson. “We are pleased these allegations are resolved and will continue to work with the U.S. Department of Justice to investigate and pursue illegal, wasteful business arrangements.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $20.2 billion through False Claims Act cases, with more than $14 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation and litigation were conducted by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Southern District of Alabama, HHS-OIG and the FBI. The claims settled by this agreement are allegations only, and there has been no determination of liability.
The case is captioned U.S. ex rel. Heesch v. Diagnostic Physicians Group, P.C. et al., Civil Action No. 11-0364-KD-B (S.D. Ala.).
Alabama Hospital System and Physician Group Agree to Pay $24.5 Million to Settle Lawsuit Alleging False Claims for Illegal Medicare ReferralsRead the Press Release
Mobile, Alabama-based Infirmary Health System Inc. (IHS), two IHS-affiliated clinics and Diagnostic Physicians Group P.C. (DPG) have agreed to pay the United States $24.5 million to resolve a lawsuit alleging that they violated the False Claims Act by paying or receiving financial inducements in connection with claims to the Medicare program, the Justice Department announced today.
“Financial arrangements that compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patients’ needs,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “The Department of Justice is committed to preventing illegal financial relationships that undermine the integrity of our public health programs.”
The government’s suit alleged that two IHS affiliated clinics -- IMC-Diagnostic and Medical Clinic, in Mobile, and IMC-Northside Clinic, in Saraland, Alabama -- had agreements with DPG to pay the group a percentage of Medicare payments for tests and procedures referred by DPG physicians, in violation of the Physician Self-Referral Law (commonly known as the Stark Law) and the Anti-Kickback Statute. Also named in the lawsuit was Infirmary Medical Clinics P.C. (IMC), an affiliate of IHS that directly owns and operates approximately 30 clinics in the Mobile area, including the two clinics involved in this lawsuit.
The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids a hospital or clinic from billing Medicare for certain services referred by physicians who have a financial relationship with the entity.
According to the government’s complaint, in 1988, IMC purchased IMC-Diagnostic and Medical Clinic from DPG and agreed to pay DPG a share of the revenues the clinics collected, including Medicare revenues from diagnostic imaging and laboratory tests. After IMC acquired the IMC-Northside Clinic in 2008, the physicians practicing there joined DPG and entered into an agreement with the same key terms as the earlier agreement with IMC-Diagnostic and Medical Clinic. The government contended that these payments were illegal kickbacks and constituted a prohibited financial relationship under the Stark Law, and that in June 2010, an attorney for DPG warned employees of both IMC and DPG that the compensation being paid to the physicians likely violated the law. Nevertheless, the agreements allegedly were neither modified nor terminated for another 18 months.
The lawsuit was originally filed by Dr. Christian Heesch, a physician formerly employed by DPG, under the whistleblower provisions of the False Claims Act. Those provisions authorize private parties to sue on behalf of the United States and to receive a portion of any recovery. The act permits the United States to intervene and take over the lawsuit, as it did in this case with respect to some of Dr. Heesch’s allegations. Dr. Heesch will receive $4.41 million as his share of the settlement.
“Today’s settlement represents a single but significant step towards achieving integrity in the administration of public health programs in this region,” said U.S. Attorney Kenyen Brown for the Southern District of Alabama. “Physicians, physician groups and other medical entities operating illegally within public health programs will be held accountable. I also commend whistle blowers like Dr. Christian Heesch, who helped bring this particular case to light.”
As part of the settlement announced today, the settling defendants have also agreed to enter into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), which obligates the defendants to undertake substantial internal compliance reforms and to submit its federal health care program claims to independent review for the next five years.
“Patients must know that medical advice is based on best practices, not on their provider’s bottom line,” said HHS-OIG Special Agent in Charge Derrick L. Jackson. “We are pleased these allegations are resolved and will continue to work with the U.S. Department of Justice to investigate and pursue illegal, wasteful business arrangements.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $20.2 billion through False Claims Act cases, with more than $14 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation and litigation were conducted by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Southern District of Alabama, HHS-OIG and the FBI. The claims settled by this agreement are allegations only, and there has been no determination of liability.
The case is captioned U.S. ex rel. Heesch v. Diagnostic Physicians Group, P.C. et al., Civil Action No. 11-0364-KD-B (S.D. Ala.).
Accountant Sentenced for Assisting in Preparing False Income Tax ReturnsRead the Press Release
HOUSTON - John E. Carter, a local accountant and income tax return preparer, has been ordered to prison following his multiple convictions of willfully aiding and assisting in the preparation and presentation of false income tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). A federal jury convicted Carter in February 2014 following two days of trial.
Today, U.S. District Judge Lynn Hughes, who presided over the trial, handed Carter a total sentence of 41 months in prison to be immediately followed by one year of supervised release. He was further ordered to pay a $132,477 in restitution to the IRS.
At trial, the jury heard that Carter prepared tax returns for his clients that claimed false deductions for large charitable contributions of appreciated art. The evidence proved the taxes owed to the U.S. on the five tax returns in question was more than $400,000.
Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorneys Charles J. Escher and John R. Braddock.
19 July 2014
Czech National Pleads Guilty to Federal Misdemeanor Charge for Impeding Border Patrol AgentRead the Press Release
ALBUQUERQUE – Andrej Gecik, 54, a citizen of the Czech Republic with legal permanent resident status in the United States who resides in San Diego, Calif., entered a guilty plea yesterday afternoon in Las Cruces federal court to a misdemeanor charge of impeding a federal officer.
Gecik was arrested on Jan. 22, 2014, on a criminal complaint alleging that he assaulted, impeded and resisted a U.S. Border Patrol agent at the U.S. Border Patrol checkpoint on Highway 70, west of Alamogordo, N.M. Gecik subsequently was indicted and charged with assaulting, impeding and arresting a federal officer. According to the criminal complaint, Gecik impeded a Border Patrol agent who was engaged in his official duties on Jan. 22, 2014, when the agent attempted to question him about his immigration status. The criminal complaint states that Gecik tried to push the agent off of the step of his semi-truck and crushed the agent’s fingers in the truck door. It states that when the agent opened the truck’s door, Gecik struck the agent in the chest with his elbow.
During today’s proceedings, Gecik pled guilty to the indictment and admitted resisting and impeding a federal officer who was engaged in his official duties by refusing to comply with the agent’s directive that he pull into a secondary inspection area to answer questions about his immigration status. At sentencing, which has yet to be scheduled, Gecik faces a statutory maximum penalty of a year in prison.
The case was investigated by the Las Cruces office of the FBI and the U.S. Border Patrol, and is being prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
18 July 2014
York Man Sentenced for Production of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Bobby Gene Clark, Jr., age 47 of York, Nebraska, was sentenced on July 18, in Lincoln, Nebraska, to 23 years in prison by United States District Judge John M. Gerrard for production of child pornography. After his release from prison, Clark will be required to serve a 20 year term of supervised release and be registered as a sex offender. A hearing to address restitution is scheduled for a later date.
In May of last year, the York Police Department received information regarding a report of a sexual assault on a minor which occurred in York. The minor, age 7 at the time, was able to describe the residence at which the assault occurred, and investigators obtained and executed a search warrant at the location. Seized during the search was as laptop computer which contained a video file of the sexual assault of the child.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the York Police Department.
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Demarcus Moran, 24, of South Bend, Indiana pled guilty to the felony offense of possession of a firearm as a convicted felon. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department. Sentencing has been set for 10/23/2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
- Robert Alphonse Deschepper, III, 24, of Edwardsburg, Michigan pled guilty to the felony offense of lying to a licensed firearms dealer during the acquisition of firearms. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 10/16/2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Jack Marsh, 35, of South Bend, Indiana was sentenced to 97 months imprisonment and 3 years Supervised Release after pleading guilty to the felony offenses of possession a firearm in furtherance of a drug trafficking crime and possession with intent to distribute crack. According to documents filed in this case, Marsh knowingly and intentionally possessed with intent to distribute a mixture and substance containing a detectable amount of crack. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Gerardo Mendez, 27, pled guilty to the felony offense of knowingly and with intent to defraud passing counterfeited obligations. This charge was filed as a result of an investigation by the United States Secret Service. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Randall Stewart.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Christopher Chico, 26 years old, of Blue Island, Illinois, was sentenced to 8 months imprisonment and 3 years supervised release, after pleading guilty to the felony offense of Narcotics – Distribution of Cocaine. According to documents filed in this case, on May 23, 2012, Chico, a member of the Latin Dragons street gang, sold one ounce of cocaine to a confidential informant in Whiting, Indiana. This case was the result of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Augustin Jacobo-Pagan, 36 years old, of Hammond, Indiana, was sentenced to 6 months imprisonment, with credit for time served after pleading guilty to the felony offense of Re-Entry of Deported Alien and False Statement in a Passport Application. No term of supervised release will be imposed due to the defendant’s deportable alien status. According to documents filed in this case, in March of 2010, Jacobo-Pagan, under an alias, submitted a United States Passport application at a post office. In the passport application, Jacobo-Pagan listed the following false information, name, date of birth and social security number. This case was the result of an investigation by the State Department and the Bureau of Immigration & Customs Enforcement (ICE). This case was prosecuted by Assistant United States Attorney Philip C. Benson.
- Jennifer Kurek, 41 years old, of Portage, Indiana, was sentenced to 30 days imprisonment, 3 years supervised release and to pay $25,144.00 in restitution after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, Kurek stole $25,144 from the Social Security Administration. As a SSA representative payee, Kurek had a fiduciary duty to use social security benefit funds for her daughter’s benefit. Instead, after her daughter was removed from defendant’s home by State officials, Kurek used the social security benefit funds on herself. This case was the result of an investigation by the Office of Inspector/Social Security Administration Office. This case was prosecuted by Assistant United States Attorney Gary T. Bell.
Waterloo Felon to Federal Prison for Possessing Loaded Sawed-Off ShotgunRead the Press Release
A man who was convicted of possessing an unregistered sawed-off shotgun was sentenced Thursday to more than 6 years in federal prison.
Patrelle Jose Green-Bowman, age 21, from Waterloo, Iowa, received the prison term after a May 13, 2014 jury verdict finding him guilty of possessing a firearm as a felon and possessing an unregistered sawed-off shotgun.
The evidence at trial showed that on August 2, 2013, Green-Bowman was found by Waterloo Police Department officers in the backseat of a car parked at an apartment complex in Waterloo. A loaded sawed-off shotgun was found wrapped in Green-Bowman’s coat on the seat immediately behind where Green-Bowman had been sitting.
Green-Bowman was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Green-Bowman was sentenced to 78 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Green-Bowman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dan Chatham and investigated by the Waterloo Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-02023-LRR.
Wagoner Man Sentenced to 188 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CHRIS FREDERICK SKADAL, Clint, age 44, of Wagoner, Oklahoma, was sentenced to 188 months imprisonment, followed by 3 years of supervised release for Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and a Drug Forfeiture.
The charge is a result from an investigation by the Wagoner Police Department and the Drug Enforcement Administration. The defendant was indicted in June 2013 and pled guilty in September 2013.
The Indictment alleged that on or about May 8, 2013, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute methamphetamine, a Schedule II Controlled Substance.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Utica Physician Acquitted of Health Care Fraud and Mail Fraud Charges in Connection with His Billing PracticesRead the Press Release
SYRACUSE, NEW YORK – A federal jury in Utica, New York found Dilip D. Kachare, a Utica, New York physician, not guilty of three counts of health care fraud and sixteen counts of mail fraud following a four week trial before the Honorable David N. Hurd, United States District Judge.
Today’s verdict follows a prior three week trial in October/November 2013, when a mistrial was declared after a jury was unable to reach a decision after three days of deliberation.
United States Attorney Richard S. Hartunian said, “Although this was not the outcome we expected based on the evidence presented, we believe that justice is served when a case is fully and fairly adjudicated before an impartial, attentive jury who listened to the facts that were presented and tested by lawyers on both sides of the issue; that is what happened here and we accept the jury’s verdict. We bring cases based on the facts and the law, not popularity or other good works, and we do not shy away from difficult cases, especially those involving the misappropriation of public funds.”
The indictment resulted from an investigation conducted by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Kevin P. Dooley of the Binghamton office. Further inquiries can be directed to Executive Assistant U.S. Attorney John Duncan at the (315) 448-0672.
Unlicensed Doctor Sentenced to Prison for Role in Fraud Scheme, Distributing Prescription DrugsRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that FRANCISCO R. CARBONE, 56, of Fairfield, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for his role in an insurance fraud scheme and a conspiracy to illegally distribute prescription narcotics.
This matter stems from “Operation Running Man,” a 14-month undercover fraud investigation headed by the Federal Bureau of Investigation.
According to court documents and statements made in court, CARBONE previously had been licensed to practice medicine, working as a sole practitioner in Bridgeport. In March 2005, CARBONE’s license to practice medicine was revoked by the State of Connecticut.
Between December 2006 and February 2010, CARBONE conspired with attorney Joseph Haddad and Dr. Marc Kirshner, who owned and operated two chiropractor offices in Bridgeport and one in Stamford, to defraud several insurance companies by exaggerating the auto accident injuries of Haddad’s clients to justify a larger monetary settlement with the insurance companies. As part of this scheme, the co-conspirators fabricated medical records, prescribed unnecessary pain medication, performed unnecessary chiropractic treatment, ordered and billed for diagnostic tests of questionable medical value, and overstated injuries or permanent partial disabilities that were allegedly caused by the accidents.
During the scheme, Haddad instructed his clients to see CARBONE, who both Haddad and Kirshner knew was an unlicensed doctor. Because CARBONE had lost his license to practice medicine and was not permitted to prescribe pain medication, CARBONE enlisted James W. Marshall, Jr., a licensed doctor of osteopathic medicine in Monroe, to write prescriptions for oxycodone, hydrocodone and other narcotics, for CARBONE’s patients, even if the medication was not needed.
CARBONE also fabricated medical records, including the clients’ injuries and medical condition, even though CARBONE had not done any medical examination on the vast majority of the patients. The fabricated reports were given to Haddad who provided them to the insurance carriers in support of settlements.
CARBONE, at the request of Haddad and Kirshner, also referred clients to a diagnostic testing company owned by Kirshner to receive “Nerve Conduction Velocity” (NCV) testing, even though CARBONE had no prior knowledge of NCVs and did not rely on the test results for any medical purpose. Kirshner’s office would submit a bill to Haddad in the amount of approximately $2000 for each NCV test that was performed, which would eventually be paid out of settlement proceeds.
In addition, CARBONE, Haddad and Kirshner engaged in a scheme to defraud the State of Connecticut. By law, the state is entitled to 50 percent of the proceeds of a personal injury case if the individual who receives a settlement has been on public assistance, or has outstanding child support obligations. Haddad provided fraudulent settlement statements to the state that inflated the payments to him, Kirshner and CARBONE, and reduced the net payout to the client.
CARBONE and Kirshner, at Haddad’s request, regularly kicked back a portion of their medical fees to Haddad’s clients.
More than 10 insurance carriers lost a total of more than $1.7 million as a result of this fraud scheme.
CARBONE was paid approximately $434,529 for participating in this scheme. Today, he was ordered to pay restitution in that amount to the victim insurance carriers.
CARBONE was sentenced below the recommended sentencing guidelines range for cooperating during the investigation.
On July 19, 2011, CARBONE pleaded guilty to one count of conspiring to commit mail fraud to defraud insurance carriers, one count of conspiring to commit mail fraud to defraud the State of Connecticut, one count of making a false statement relating to health care matters, and one count of conspiring to distribute controlled substances outside the scope of the usual course of professional practice.
CARBONE’s criminal history includes federal convictions in 1999 for violating the Medicare/Medicaid anti-kickback statute and for filing a false federal tax return, for which he was sentenced to four months of imprisonment. In 2002, CARBONE was sentenced to an additional 13 months of imprisonment for violating the conditions of his supervised release.
Haddad, Kirshner, Marshall and three other chiropractors pleaded guilty to charges stemming from this scheme. On July 10, 2014, Haddad was sentenced to 51 months of imprisonment. Kirshner and Marshall await sentencing.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the National Insurance Crime Bureau, the Metropolitan Property and Casualty Insurance’s Special Investigation Unit and the Travelers Insurance Company.
The case is being prosecuted by Assistant U.S. Attorneys Christopher W. Schmeisser and David J. Sheldon.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]United States Attorney Announces Sentence for Child Pornography DistributorRead the Press Release
Hogsett continues aggressive fight against child exploitation
BROWNSBURG – Joseph H. Hogsett, United States Attorney, announced the sentence of Jason King, 39, of Brownsburg today. King was sentenced to 20 years in federal prison by United States District Judge Tanya Walton Pratt after King pled guilty to one count of distribution of child pornography.
“Protecting the most innocent Hoosier victims is a top priority of this office. Those who might question my sincerity have been shown the seriousness of this promise,” said Hogsett.
Through the work of Homeland Security Investigation (HSI), King was found to have over 600 images of child pornography on his computer. He made the images available to other users via a peer-to-peer sharing network online. Because the computer files containing the images were password protected, King provided interested users passwords that allowed access to the images as well as the ability to download them. King admitted to his role in the distribution of the images.
King is also a registered sex offender. In 1999 he was convicted for child molestation and was re-incarcerated for failing to register as a sex offender after serving his sentence.
“The type of behavior is deplorable and must be stopped,” Hogsett said. “That is why we launched Operation Community Watch last year – to protect Hoosier families and send a message.” In 2013, Hogsett launched Operation Community Watch, which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
According to Assistant United States Attorney Joe Vaughn, who prosecuted the case for the government, King will be subject 10 years of supervised release after serving his sentence.
U.S. Attorney's Statewide Civil Rights Symposium Set for Aug. 13, 2014 at Wichita State UniversityRead the Press Release
WICHITA, KAN. A report on racial profiling produced by Wichita State University will lead off the U.S. Attorney’s Fourth Annual Statewide Civil Rights Symposium Aug. 13 at WSU, U.S. Attorney Barry Grissom said today.
Michael Birzer, Director of WSU’s School of Community Affairs will speak on racial profiling during the day-long symposium, which is expected to draw civil rights advocates and law enforcement officers from across the state. Earlier this month, Birzer reported the results of a study for the City of Wichita showing that during a six-month period African-Americans accounted for 22 percent of the people receiving traffic violations in Wichita. African-Americans make up about 11 percent of the city’s population.Grissom said he looks forward to a frank discussion about what the results of the study mean and how law enforcement can work more cooperatively with the community.
“Protecting public safety and protecting civil rights are compatible goals,” Grissom said. “We can do both.”
“Our office is committed to the principle that all persons are equal in the eyes of the law,” he continued. “We should work together to address anything that might undermine the trust and confidence that people have in our law enforcement.”
The conference will be held from 9 a.m. to 4 p.m. in WSU’s Metropolitan Complex at 5015 E. 29th North. It is free and open to the public, but enrollment is required. Registration forms are available online at the U.S. Attorney’s Web site: http://www.justice.gov/usao/ks/
The symposium also will include:
- A look at the federal Community Relations Service, which provides mediation, facilitation and training on federal civil rights issues.
- A presentation on hate crimes by the FBI.
- A civil rights panel discussion moderated by U.S. Attorney Barry Grissom.
The U.S. Department of Justice is responsible for upholding the civil and constitutional rights of all Americans. It enforces federal statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status and national origin.
Sponsors for the symposium include the U.S. Attorney’s Office, the Midwest Criminal Justice Institute at WSU, the Kansas Law Enforcement Training Center, the School of Community Affairs at WSU and the Regional Policing Training Institute at WSU.
For more information, call Jim Cross, public information officer, at 316-269-6552.Two Members of Violent Armed Robbery Crew SentencedRead the Press Release
ALEXANDRIA, Va. – Two defendants were sentenced today for participating in a violent armed robbery crew that operated in northern Virginia.
Calvin Leon Lewis, 30, of Washington, D.C., was sentenced to 35 years in prison, followed by five years of supervised release, for two counts of using, carrying and discharging a firearm during and in relation to a crime of violence. Ray Allen Dicks, Jr., 26, of Capitol Heights, Maryland, was sentenced to 12 years in prison for conspiring to commit a robbery affecting interstate commerce.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Earl L. Cook, Alexandria Chief of Police; Stephan M. Hudson, Prince William County Chief of Police; and Cathy L. Lanier, Chief of the D.C. Metropolitan Police Department, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
On April 21, 2014, Lewis pleaded guilty to charges stemming from his participation in the Nov. 14, 2013 robbery of the US 1 Tobacco store in Woodbridge, Virginia, and in the Nov. 17, 2013 robbery of a Safeway grocery store in Alexandria, Virginia. During the US 1 Tobacco robbery, a store clerk was shot in the head and suffered serious injuries.
After a jury trial on May 13, 2014, Dicks was found guilty of conspiring to commit the Safeway robbery. According to court records and evidence adduced at trial, three armed and masked men robbed the Safeway in Old Town Alexandria while another waited nearby in a getaway vehicle. On March 28, 2013, two other defendants—Artemus Lamarr Riley and Louis Anthony Jackson—pleaded guilty for their involvement in the Safeway robbery, as well as three other robberies in King George County, Virginia. Riley and Jackson were each sentenced to 35 years in prison and ordered to pay $17,134.00 in restitution.
This case was jointly investigated by FBI’s Washington Field Office and the Alexandria City, Prince William County, and Washington Metropolitan Police Department, with assistance from the King George County Sheriff’s Office. Assistant U.S. Attorneys Patricia T. Giles and Rebeca H. Bellows prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-15.Tweet
Trumbull Accountant Pleads Guilty to Federal Tax ChargeRead the Press Release
Follow @USAO_CT
The United States Attorney for the District of Connecticut today announced that THOMAS RAGONESE, 55, of Trumbull, pleaded guilty yesterday before U.S. Magistrate Judge Donna F. Martinez in Hartford to a federal tax offense stemming from a scheme to defraud a Bridgeport-based residential property owner.
According to court documents and statements made in court, Anthony Testo and business, ACT Builders, Inc., were contracted to serve as a property manager for an entity in Bridgeport that owned an apartment complex and several single and multi-family residences. Testo’s role as property manager included filling vacant rental units, setting rental amounts, collecting security deposits, collecting rent from tenants and depositing rental payments in the property owner’s bank account. Testo also was required to submit to the property owner a monthly “rent roll,” which was a spreadsheet showing the occupancy of the rental units, the rental amounts due and the rental payments collected from tenants. RAGONESE provided accounting services to Testo and ACT Builders. At Testo’s instruction, RAGONESE prepared the rent rolls.
From approximately January 2007 to August 2010, Testo and ACT Builders, with RAGONESE’s assistance, defrauded the property owner by submitting fraudulent rent rolls that misrepresented that certain rental units were vacant with no rent due when, in fact, the apartments were occupied and rent had been collected. The rent rolls also misrepresented that the rent due and collected for certain rental units was lower than the amount that was actually collected. Testo deposited rental income that was due to the property owner into both his personal bank account and the ACT Builders bank account.
Through this scheme, and also by submitting fraudulent subcontractor invoices to the property owner, Testo defrauded the defrauded the property owner of at least $275,000.
For the 2007 through 2010 tax years, RAGONESE prepared Testo’s federal tax returns, which failed to report the rental income that Testo kept for his own use and benefit. This resulted in a tax loss to the Internal Revenue Service of $71,795.
RAGONESE pleaded guilty to one count of aiding and assisting the preparation and filing of a false tax return, an offense that carries a maximum term of imprisonment of three years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on October 2, 2014.
On June 20, 2014, Testo pleaded guilty to one count of conspiracy to commit wire fraud and one count of assisting in the preparation and filing of a false tax return. Testo also admitted that he failed to report his fraudulent income on his 2007 through 2010 personal federal income tax returns. In addition, Act Builders pleaded guilty to one count of conspiracy to commit wire fraud.
Testo and Act Builders are currently scheduled to be sentenced on September 2, 2014.
This matter is being investigated by the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Felice Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]