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2 July 2014
Albuquerque Man Pleads Guilty to ATM Robbery Spree in Summer 2013Read the Press Release
ALBUQUERQUE – Kelvin L. Dickerson, of Albuquerque, N.M., pleaded guilty this morning to committing a series of robberies in the summer of 2013.
Dickerson and his co-defendant, Dominique Dickens, also of Albuquerque, were arrested in Dec. 2013, on an eight-count indictment charging them with conspiracy and seven Hobbs Act robberies. According to the indictment, between June 2013 and early Sept. 2013, Dickerson and Dickens allegedly engaged in a scheme to rob employees of business engaged in interstate commerce in Bernalillo County, N.M. Dickens allegedly would drive Dickerson to automatic teller machines (ATMs) where Dickerson would rob individuals who were making deposits. Dickens allegedly would pick Dickerson up after he committed the robberies and drive him away.
Today Dickenson entered a guilty plea to the indictment and admitted that he and his co-defendant conspired to rob individuals who were making deposits into ATMs between June 28, 2013 and Sept. 5, 2013. Dickenson also admitted robbing seven individuals during that time period. The victims of Dickenson’s criminal conduct were employed by One Main Financial, Loan Max Title Loans, Church’s Chicken, National Insurance, Sonic and Radio Shack, all of which are businesses engaged in interstate commerce.
At sentencing, Dickenson faces a maximum statutory penalty of 20 years for each of the eight charges. Dickenson remains detained pending his sentencing hearing, which has yet to be scheduled.
His co-defendant, Dickens, has entered a not guilty plea and remains on conditions of release pending trial, which has yet to be scheduled. Charges in an indictment are merely accusations and Dickens is presumed innocent unless found guilty beyond a reasonable doubt.
This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. This initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under the worst of the worst anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from our communities for as long as possible.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Alabama Tax Preparer Indicted for Stolen Identity Refund FraudRead the Press Release
Teresa Floyd, of Phenix City, Alabama, was indicted for her alleged involvement in a stolen identity refund fraud scheme, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment.
Floyd has been charged with several counts of wire fraud and aggravated identity theft. According to the indictment, Floyd owned and operated a tax preparation business called T & L Tax Service that was located in Phenix City. Floyd obtained the means of identification of individuals and used those identities to file fraudulent income tax returns. In order to conceal her scheme, Floyd created fictitious identification documents and bills in the names of those individuals. The indictment also seeks to forfeit $320,397 from Floyd .
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Floyd faces a statutory maximum sentence of 20 years in prison for each wire fraud count and a mandatory two year sentence for the aggravated identity theft counts. Floyd is also subject to fines, forfeiture and restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorney Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama are prosecuting the case.
21 Year Fugitive Former Daly City Resident Found Through Facebook Makes Court AppearanceRead the Press Release
SAN FRANCISCO – Francisco R. Legaspi made his initial appearance in federal court yesterday morning for failing to appear for his sentencing on Jan. 28, 1993, U.S. Attorney Melinda Haag and IRS-CI Special Agent in Charge José M. Martinez, announced.
According to court documents, Legaspi, 61, of London, Ontario, Canada, formerly of Daly City, was indicted on Aug. 19, 1992 on three counts of aiding and filing false quarterly employment tax returns for Mission Childcare Consortium in violation of 26 U.S.C.§ 7206(2). He pleaded guilty on Nov. 9, 1992 to one count of the Indictment. Legaspi was scheduled to be sentenced on Jan. 28, 1993, but failed to appear in court. A bench warrant was issued for his arrest for his failure to appear. On Feb. 24, 1993, an Indictment was returned against him charging him with failure to appear in violation of 18 U.S.C. § 3146.
Legaspi was located in Canada in 2012, after the Bureau of Diplomatic Security researched social media websites and found Legaspi’s Facebook page. The Royal Canadian Mounted Police used the information to apprehend Legaspi. Thereafter, he was extradited from Canada to the United States with the assistance of the U.S. Justice Department’s Office of International Affairs.
On July 1, 2014, Legaspi entered a not guilty plea to the Indictment charging him with failure to appear. Legaspi’s next court appearance is scheduled for July 8, 2014, before the Honorable Richard Seeborg, United States District Court Judge in San Francisco.
The maximum penalty for aiding and assisting in the filing of false tax returns, in violation of Title 26 U.S.C. § 7206(2), is three years in prison and a fine of $250,000. The maximum penalty for failure to appear, in violation of Title 18 U.S.C. § 3146, is two years in prison and a fine of $250,000.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation with assistance from the Bureau of Diplomatic Security and the Royal Canadian Mounted Police and United States Department of Justice, Office of International Affairs.
(Legaspi indictment 92-0394 )
(Legaspi indictment 93-0096 )
1 July 2014
Windber Man Pleads Guilty to Possession of Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Windber, Pa., pleaded guilty in federal court to a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
Donald T. Reese, 69, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on April 28, 2011, Reese knowingly possessed videos in individual computer graphic files which were produced using minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for Dec. 15, 2014, at 1 p.m. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Southwest Computer Crime Task Force of the Pennsylvania State Police conducted the investigation that led to the prosecution of Reese.
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 Attorney's 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.
Waterville Woman Sentenced to 15 Months on Immigration, Money Laundering and Tax ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Mei Ya
Zhang, 29, of Waterville, Maine, was sentenced today in U.S. District Court by Chief Judge
John A. Woodcock, Jr. to 15 months in prison to be followed by 3 years of supervised release for harboring undocumented aliens for commercial advantage and private financial gain, money laundering conspiracy, and conspiracy to file false employer's quarterly federal tax returns. She was also ordered to pay more than $88,000 in restitution to the Internal Revenue Service
(IRS). Zhang pled guilty to the charges on June 5, 2013.According to court records, between 2006 and 2011, the defendant was the manager of the Twin Super Buffet, located on State Street in Brewer, Maine. In that capacity, she managed a Chinese buffet restaurant that brought undocumented aliens into Maine to work, had them work six days per week, eight to 10.5 hours per day, housed them in squalid conditions at a residence on Elm Street in Brewer, transported them back and forth each day to work, paid them under the table with cash generated illegally by the employment of undocumented aliens, and filed numerous false quarterly employment tax returns in which the undocumented aliens were not disclosed and employment taxes were not properly withheld or paid. The investigation revealed that about half of the employees at the buffet over that period were undocumented, and that the defendant’s activities concealed about $400,000 in wages and thwarted the collection of about $88,000 in employment taxes.
In imposing sentence, Chief Judge Woodcock noted that a primary obligation of citizenship is to obey the law. In this case, over a five year period, the defendant illegally hired undocumented aliens and paid them in cash under the table even after telling federal agents that she had stopped doing so. As a result, she unfairly competed with legitimate restaurants that paid their employees fair wages and that properly withheld and remitted employment taxes to the government.
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations; IRS-Criminal Investigation; and the U.S. Department of
Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations; with assistance from the Brewer Police Department.VA Hospital Nurse’s Aide Charged with Theft from PatientRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Warren T. Wells, of Moscow, Pennsylvania, was charged today with theft in connection with an incident at the Veterans Administration Hospital in Wilkes-Barre, on December 13, 2013.
According to United States Attorney Peter Smith, a criminal information was filed in U.S. District Court in Scranton charging Wells, a nurse’s aide employed by the VA, with theft of a golden crucifix necklace from a patient/veteran being treated at the VA Hospital. Wells was originally charged by local authorities. That prosecution will be withdrawn in favor of the federal charge. Wells has been placed on administrative leave by the VA pending the outcome of the criminal case.
The VA Hospital is a federal facility and alleged crimes on the premise are subject to prosecution in federal court.
If convicted, Wells could be sentenced to a statutory maximum of up to five years’ imprisonment and a fine of $250,000.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The investigation was conducted by the U.S. Department of Veterans Affairs Police. The case is assigned to Assistant United States Attorney Todd K. Hinkley for prosecution.
U.s. Attorney Announces Arrest and Charging of Former Center Township OfficialRead the Press Release
Township Chief Financial Officer embezzled over $343,000 in Public Money
INDIANAPOLIS B The United States Attorney, Joseph H. Hogsett announced this afternoon the arrest and charging of Alan S. Mizen, 59, Zionsville. Mizen served as the Chief Financial Officer for Center Township in Marion County, Indiana, from November 2001 through January 2011. Mizen now faces prosecution for Theft/Embezzlement of Federal Program Funds as the U.S. Attorney's Office has redoubled its efforts to combat, identify, investigate and root out public corruption by elected and appointed officials in Indiana through the activities of the Public Integrity Working Group.
"The message of this office has been consistent over the last two years, but bears repeating today: it doesn't matter what your politics are or what position you hold in our community," Hogsett said. "If you do not uphold the public trust, our Public Integrity Working Group will find you, investigate you and the U.S. Attorney's Office will prosecute you to the fullest extent of the law."
A federal criminal complaint, unsealed this morning, charges Mizen with theft concerning programs receiving federal funds. The complaint alleges that Mizen set up an account with PNC Bank and deposited a check in the amount of $343,541.08 that was drawn from public funds into the PNC Bank account. Mizen then used the computerized accounting system at the Center Township Trustees Office to create a false invoice indicating that he had written the check to the “Treasurer of State.”
Mizen proceeded to transfer the funds that he deposited into the PNC Bank account to various personal accounts that he maintained. From the personal accounts, Mizen allegedly used over $200,000 to help purchase a residence in Zionsville, purchase a Toyota Tacoma pickup truck, fund his child’s college education, finance personal vacations, purchase a diamond necklace and diamond ring for $8,900 during a trip to the Cayman Islands, and make other consumer purchases. Mizen’s used taxpayer funds to finance these personal expenditures from June 10, 2010 through July 2012.
In addition to arresting Mizen, federal authorities froze a bank account and investment account that Mizen used to channel the embezzled funds. Federal authorities seized the 2009 Toyota Tacoma, diamond ring, and diamond bracelet that Mizen purchased in the Cayman Islands with the embezzled funds. Federal authorities also filed a lis pendens on his residence in Zionsville, which prohibits Mizen from transferring his interest in the real estate until the resolution of the criminal case.
Hogsett explained this case was the result of outstanding law enforcement work by the Federal Bureau of Investigation and Indiana State Board of Accounts, with the assistance of the Internal Revenue Service. All three agencies are partners in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Hoosiers with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.
Federal Bureau of Investigation Acting Special Agent in Charge Kevin Lyons said, “Citizens are owed integrity at all levels of government.”
Internal Revenue Service Criminal Investigation Special Agent in Charge James C. Lee stated, “When public officials commit crimes, whether as part of their official duties or in their private lives, they are violating the public trust. IRS-Criminal Investigation helps ensure that all Americans, including public officials, are held to the same standard.”
According to Assistant United States Attorney Bradley A. Blackington, who is prosecuting the case for the government, Mizen could be sentenced to up to ten years in federal prison, and could also face significant fines and federal supervision for up to three years once he has served his prison term.
An indictment or complaint are only charges and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Postal Service Employee Pleads Guilty to Tax FraudRead the Press Release
Aaron H. Kelly, a U.S. Postal Service employee, pleaded guilty today in the U.S. District Court for the District of Maryland to aiding and assisting in filing a false tax return with the Internal Revenue Service (IRS), the Justice Department and IRS announced today. Kelly was indicted on Feb. 24, 2014, for allegedly engaging in a scheme to defraud the IRS, the Thrift Saving Plan and the Educational Systems Federal Credit Union by sending fictitious financial instruments to fraudulently extinguish the debts he owed to them, and for aiding in filing false tax returns with the IRS.
According to the plea agreement, in 2008, Kelly submitted a false individual income tax return for tax year 2006 to the IRS. On this tax return, Kelly falsely claimed that he had substantial federal income tax withheld, and fraudulently represented that he was entitled to a refund of $193,653. Sentencing is set for Feb. 2, 2015, where Kelly faces a statutory maximum sentence of three years in prison.
This case was investigated by special agents of the Treasury Inspector General for Tax Administration and IRS - Criminal Investigation. Trial Attorneys Ken Vert and Yael T. Epstein of the department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
U.S. Leader of Sophisticated, Violent Fraudulent Document Ring Sentenced to More Than 11 Years for Racketeering, Attempted Robbery, and Money LaunderingRead the Press Release
RICHMOND, Va. – Manuel Hidalgo Flores, 40, a Mexican National who resided in Pawtucket, Rhode Island was sentenced earlier today to 135 months’ imprisonment for his role in a violent criminal organization that specialized in manufacturing and distributing fraudulent identifications. Hidalgo Flores previously pleaded guilty to Conspiracy to Engage in Racketeering, Interference with Commerce by Robbery, and Conspiracy to Launder Money. Further, the defendant is illegally within the United States and faces deportation following the service of his prison sentences.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Clark Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), made the announcement after the 135 month sentence was handed down by Senior United States District Judge James R. Spencer.
According to court papers, this defendant is connected to a Fraudulent Document Enterprise (FDE) previously prosecuted in the Eastern District of Virginia in United States v. Israel Cruz Millan, Case No. 3:10CR308. The FDE which originally operated in the United States beginning prior to 2008 and continuing through November 18, 2010, had cells in Richmond, Norfolk, Virginia Beach, and Manassas, Virginia; Fayetteville and Little Rock, Arkansas; New Haven, Connecticut; Mishawaka, Indiana; Lexington and Louisville, Kentucky; Chelsea, Massachusetts; St. Louis, Missouri; Chapel Hill, Greensboro, Raleigh, and Wilmington, North Carolina; Cincinnati, Ohio; Providence, Rhode Island; and, Nashville, Tennessee. The criminal enterprise was dismantled within the United States on November 18, 2010. In the prior case and connected prosecutions, a total of 30 defendants were convicted. On February 16, 2012, United States District Judge James R. Spencer sentenced the overall leader, Israel Cruz Millan to 300 months’ imprisonment. On March 2, 2012, United States District Judge Henry E. Hudson sentenced Oliverez-Jiminez to two consecutive life terms in prison, after his conviction by a jury for racketeering, murder, kidnapping, conspiracy to commit money laundering, and conspiracy to produce and transfer false identification documents.
In connection with his previous guilty plea, Hidalgo Flores admitted to his role in restarting and leading the FDE’s continued criminal activities in the United States following the 2010 arrests described above. Beginning at some point prior to February 2012, Hidalgo Flores, also known as “Chino,” “Chimuelo” and “Julio,” began managing the organization’s operations in the United States, supervising operations in Richmond, Virginia; Springdale, Arkansas; Boston, Massachusetts; Raleigh, North Carolina; Cincinnati, Ohio; and Pawtucket, Rhode Island. As in the previous case, the FDE produced high-quality false identification cards for distribution to illegal aliens. In most cities where the organization operated, Hidalgo Flores placed a cell manager to supervise a number of “runners,” the lower level members of the organization who distributed business cards advertising the organization’s services and helped facilitate transactions with customers.
Within each cell supervised by Hidalgo Flores, the cell manager was responsible for distributing the fraudulent documents using information obtained from clients by “runners.” The runners would recruit illegal alien clients who wished to obtain false identification documents, including counterfeit Permanent Resident Alien Cards (also known as “Green Cards”), Social Security Cards, out-of-state identification cards, and various international documents. Upon identifying a specific client, a runner would relay identifying information and photographs from the client to the printer via cellular telephone or other method. The printer would, in turn, use a computer and printer to create fraudulent identification documents for the client, depending on the nature of the order received from the client. Once the documents were complete, the runner would usually provide the documents to the client in exchange for United States currency. A client would generally pay approximately $150 for a set of fraudulent identification documents (such as a Permanent Resident Alien Card and Social Security Card). Each cell maintained detailed sales records and divided the proceeds between the runner, the cell manager, and the upper level managers in Mexico. In addition, the FDE used Western Union and MoneyGram to funnel criminal proceeds to Mexico.
The evidence during the Oliverez-Jiminez trial detailed how members of the organization sought to drive competitors from their territory by posing as customers in search of fraudulent documents and then attacking the competitors when they arrived to make a sale. In the current case, Hidalgo Flores admitted to his role in targeting a competitor in the Richmond, Virginia area on October 6, 2013. This defendant, along with others, identified a competitor (referred to as “L.G.”) who was selling fraudulent documents in competition with the Richmond cell. A co-defendant posed as a customer and contacted L.G. about setting up a fraudulent documents transaction. L.G. then met with the co-defendant at a designated location. At the same time, Hidalgo Flores, along with other FDE members, were surveilling the transaction. The defendants planned to follow competitor L.G. after the transaction to find where he (L.G.) produced fraudulent identification documents. The group intended to assault L.G. and steal L.G.’s printing equipment by means of actual and threatened force, violence, and fear of injury. Through this planned conduct, FDE members hoped to stop L.G. from selling fraudulent identification documents and to enhance the FDE’s control of the Richmond area fraudulent document market. Unbeknownst to the FDE members, law enforcement officers were also surveilling the October 6, 2013 transaction. Due to law enforcement intervention, competitor L.G. was detained during a traffic stop and the FDE members fled the area. According to his plea documents, Hidalgo Flores admitted that absent law enforcement intervention, he and his cohorts would have carried out their plan against L.G.
To date, 42 members of this organization charged in the Richmond, Virginia federal cases have been convicted. In the current case, 11 defendants are awaiting sentencing, with their hearings scheduled before Judge Spencer over the next two months.
The case was investigated by the Richmond and Norfolk offices of ICE’s Homeland Security Investigations (HSI), which falls under the Washington, D.C., office. ICE HSI received assistance from the Virginia State Police, Chesterfield County Police Department, and Henrico County Police Department. Assistant United States Attorney Michael Gill and Trial Attorney Maria Gonzalez Calvet, of the Criminal Division's Fraud Section, are prosecuting the case on behalf of the United States
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
U.S. Government Contractor Sentenced to 24 Months for Tax FraudRead the Press Release
Memphis, TN – Darrin Albert Searle, 44, of Loudon, TN, was sentenced today to 24 months in federal prison following his guilty plea to one-count of filing a false tax return, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to the facts alleged in the information and revealed during the sentencing hearing, while working as a government contractor in Iraq in 2007, Searle failed to disclose $618,186 of income he received through kickbacks. Searle is required to file amended returns and pay all relevant taxes, interest, and penalties.
In addition to the prison sentence, United States District Judge John T. Fowlkes, Jr. ordered Searle to serve one year of supervised release and to pay $58,422 in restitution to the Internal Revenue Service. There is no parole in the federal prison system.
This case was investigated by the Special Investigator General for Iraq Reconstruction (SIGIR), the Department of the Army’s Criminal Investigative Division, Defense Criminal Investigative Service, and Internal Revenue Service Criminal Investigations. Assistant U.S. Attorney Fred Godwin represented the government.U.S. Files Complaint and Consent Decree Against Mira Health and Senior OfficersRead the Press Release
The United States has filed a complaint and the U.S. District Court for the Eastern District of New York has entered a consent decree against Mira Health Ltd. (Mira), its chief operating officer, Michael S. Ragno Sr., and its quality assurance manager, Michael S. Ragno Jr., all of Farmingdale, New York.
Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division and U.S. Attorney Loretta E. Lynch of the Eastern District of New York made the announcement.
The lawsuit alleges that the defendants violated the Federal Food, Drug and Cosmetic Act (FDCA) by manufacturing and distributing dietary supplements that were adulterated. Under the FDCA dietary supplement manufacturers are required have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. The government’s actions resulted from a series of inspections of Mira’s manufacturing facility, which revealed, among other things, that Mira failed to ensure that components, dietary supplements, packaging and labels were not mixed-up, contaminated or deteriorated.
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the FDCA. The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if the defendants wish to resume manufacturing dietary supplements in the future, the FDA first must determine that Mira’s manufacturing practices have come into compliance with the law. The consent decree was entered by the court today.
Mira gained national attention in July 2013 when Purity First Health Ltd, a company that sold dietary supplements manufactured by Mira, became the subject of an FDA recall. Anabolic steroids were found to be present in the Healthy Life Chemistry By Purity B-50 dietary supplement. At the time of the recall, 29 illnesses and one hospitalization had been documented.
The FDA referred this matter to the Department of Justice. The Consumer Protection Branch of the Justice Department’s Civil Division together with the U.S. Attorney’s Office for the Eastern District of New York filed this case on behalf of the United States.Related Materials:
Consent Decree
ComplaintTwo Chiropractors Involved in Insurance Fraud Schemes Are SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that two chiropractors convicted of charges stemming from an investigation into health care and insurance fraud were sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport. JENNIFER LYNNE, 41, of Milford, was sentenced to three years of probation, the first six months of which she must serve in home confinement with electronic monitoring. GEORGE U. DeCARVALHO, 57, of Stamford, was sentenced to three years of probation, during which he must perform 90 hours of community service.
This matter stems from “Operation Running Man,” a 14-month undercover fraud investigation headed by the Federal Bureau of Investigation. The investigation, which included the use of recordings by an undercover FBI special agent, revealed that Joseph P. Haddad, a Bridgeport-based personal injury attorney, conspired with chiropractors and others to defraud several insurance companies by exaggerating the auto accident injuries of Haddad’s clients, and the cost of their medical care, to justify larger monetary settlements with the insurance companies. As part of the 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.
Between December 2006 and February 2010, Haddad conspired in the scheme with Francisco R. Carbone, who had been licensed to practice medicine until his license was revoked by the State of Connecticut in March 2005, and with Dr. Marc Kirshner, who owned and operated two chiropractor offices in Bridgeport and one in Stamford.
As part of the scheme, Haddad paid “runners” to locate and deliver to him clients for his personal injury practice. Haddad then regularly instructed clients to see Carbone for purported medical treatment, even though Haddad was aware that Carbone had lost his medical license. Carbone provided Haddad’s clients with prescription pain medication, even if the medication was not needed and, in reports, fabricated the clients’ injuries, medical conditions and permanent partial disability ratings. In multiple instances, Carbone did no medical examination at all. Carbone billed the victim insurance carriers in his name or in the name of another physician for services he allegedly rendered, and provided prescriptions, bills, medical reports and final reports to Haddad, who submitted the documents to the victim carriers to support requests for settlement.
Haddad also referred clients to Dr. Kirshner’s Bridgeport chiropractor offices, which operated under the name Health First Medical, P.C. Kirshner often permitted Haddad to influence the course of patients’ medical treatments by acquiescing to Haddad’s instructions that a patient receive more treatment and diagnostic tests despite the questionable need for both.
LYNNE and Jennifer Netter are licensed chiropractors who worked for Kirshner. Between approximately December 2006 and February 2010, Health First chiropractors performed unnecessary chiropractic treatments on Haddad’s auto-accident clients. As part of the scheme, the chiropractors established a protocol to treat patients in Haddad’s cases for six months, regardless of medical need, and would not resolve treatment of patients unless instructed to do so by Haddad. The chiropractors often falsified medical records by indicating that they had examined the patients when they had not, and by misrepresenting that patients’ pain complaints and other symptoms continued. After the six-month period, each patient would receive a permanent partial disability rating, regardless of the permanence of the medical condition. If a patient had received a permanency rating for a prior accident, the protocol was to give a higher or different disability rating for the present accident. The chiropractic practice prepared false reports, which were then provided to the victim insurance carriers.
More than 10 insurance carriers lost at least $1.7 million as a result of this fraud scheme. The loss directly attributable to LYNNE’s dealing with Haddad clients is $117,251. Judge Underhill today ordered LYNNE to pay restitution in that amount.
On March 15, 2012, LYNNE pleaded guilty to one count of conspiracy to make false statements relating to health care matters.
DeCARVALHO is a licensed chiropractor who owns and operates a chiropractic practice in Bridgeport. DeCARVALHO and Carbone shared office space in Bridgeport from approximately January 2004 to November 2005. Before Carbone’s medical license was revoked, DeCARVALHO and Carbone provided chiropractic and medical treatment on a number of common patients who were involved in auto-accident litigation. After March 2005, DeCARVALHO continued to treat certain patients knowing that payments for his services were coming from insurance settlements based, in part, on the purported treatment provided by Carbone.
In addition, in May 2007, DeCARVALHO was involved in an auto accident in which the other driver was liable. DeCARVALHO contacted Carbone to fabricate medical records to show that DeCARVALHO had suffered certain injuries and had received medical treatment for those injuries allegedly sustained from the accident. DeCARVALHO indicated that Carbone could bill carriers for treatment under DeCARVALHO’s automobile MedPay insurance. In October 2007, Carbone fabricated the medical records and submitted claims to MedPay for reimbursement totaling approximately $6,000. Relying on the false medical bills, DeCARVALHO subsequently settled the accident claim for an additional $4,500.
On June 29, 2012, DeCARVALHO pleaded guilty to one count of conspiracy to commit health care fraud.
Haddad, Carbone, Kirshner, Netter, and Dr. James Marshall, Jr. have each pleaded guilty to charges stemming from this scheme. They await sentencing.
This matter has been 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]Three Indicted in a Stolen Identity Refund Fraud RingRead the Press Release
Robert Walker, Charnesha Alexander and Ladonna Conley were indicted for their roles in a stolen identity refund fraud conspiracy, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment.
According to the indictment, between January 2011 and December 2013, the defendants ran an identity theft ring. The defendants obtained stolen identities from various sources to be used in filing false tax returns, including the identities of employees from a Columbus, Georgia, company. In order to file the false tax returns, the defendants obtained several electronic filing numbers in the names of tax businesses. On behalf of those tax businesses, the defendants applied for bank products from various financial institutions, which in turn mailed blank check stock and prepaid debit cards to the defendants. The defendants caused tax refunds to be dispersed through checks and prepaid treasury cards, and either cashed the fraudulent checks at several businesses located in Alabama and Georgia or deposited them into their bank accounts.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant faces a statutory maximum potential sentence of 10 years in prison for the conspiracy charge, a statutory maximum potential sentence of 20 years in prison for each wire fraud count and a mandatory two year sentence for each aggravated identity theft count. The defendants are also subject to fines, forfeiture and mandatory restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorneys Michael Boteler and Charles Edgar Jr. of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama are prosecuting the case.
Tampa Woman Sentenced to 7 Years in Prison for Role in Credit Card Fraud / Identity Theft RingRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Danay Crespo-Rodriguez (25, Tampa) to seven years’ incarceration for conspiracy to commit credit card fraud and aggravated identity theft. The Court also ordered her to pay $599,744.11 in restitution to the victims of her crimes and entered a forfeiture money judgment in the amount of $655,568.61, which represents the proceeds of Crespo-Rodriguez’s crimes.
Crespo-Rodriguez pleaded guilty on October 1, 2013 and was released on bond. She then absconded from supervision on November 10, 2013 and was only recaptured after she was arrested at a Tampa-area Target store for shoplifting and assault. Three of her co-conspirators have already pleaded guilty for their roles in the scheme. One was convicted on all counts following a trial. Four others have been sentenced. Another co-conspirator remains a fugitive.
According to court documents, the conspirators, led by Michel Lermos-Hernandez, ran a credit card fraud ring. Lermos, aided by his girlfriend, Danay Crespo-Rodriguez, and others, obtained credit card numbers by placing key loggers on credit card terminals that intercepted and stored swiped credit and debit card account information at the International Mall in Tampa. One key logger, in particular, was placed at the Haagen-Dazs ice cream store. Lermos and others then created counterfeit credit cards using the stolen credit and debit card account numbers. After making the credit cards, Lermos provided the counterfeit credit cards to his co-conspirators, including his sister, Norma Cabezas-Hernandez, his girlfriend, Danay-Crespo Rodgriguez, and at least two other individuals, Lazaro Rodriguez and Abel Osorio-Cuok. The conspirators used the counterfeit cards to buy electronics and gift cards at Tampa-area retailers. The conspirators then took these items to Viviana Reyes= house, where she paid them in cash for the fraudulently-obtained merchandise. When Reyes purchased the items from her conspirators, she paid them approximately 50% of the retail value of the items, before reselling them for approximately 60% of the retail value. Reyes advertised the items via text message and email.
Agents recovered more than 4,000 stolen credit and debit card numbers and estimate the loss to the affected financial institutions, to date, is in excess of $650,000.
This case was investigated by the Tampa Police Department, Florida Department of Law Enforcement and the United States Secret Service (USSS), all of whom are members of the USSS’s credit card fraud and identity theft task force. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Suzanne Nebesky.
Statement of Southern District of Florida U.S. Attorney Wifredo A. Ferrer on the Conviction of Damion St. Patrick BastonRead the Press Release
“The bravery of the victims in this case is commendable. Their testimony demonstrated that despite the terrible abuse that they suffered from this defendant they are truly survivors. We can never forget that human trafficking is a heinous crime that exploits people; it simply cannot be tolerated. This case was the result of the hard work and coordination of the South Florida Human Trafficking Task Force in Miami, including our federal prosecutors, as well as that of law enforcement officers and non-governmental organizations in Australia and the Dubai Police Department. It is also the first time we have used the recently enacted extraterritorial jurisdiction provision of our anti-trafficking laws to charge someone for sex trafficking that occurred in another country. Working with our dedicated law enforcement partners here and abroad we have ensured that Baston will be unable to continue to exploit more women.”
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.
Stamford Man Sentenced to More Than 5 Years in Federal Prison for Distributing CrackRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDDIE HAMMETT, 50, of Stamford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 66 months of imprisonment, followed by five years of supervised release, for his role in a southwestern Connecticut narcotics trafficking ring.
This matter stems from a six-month investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, 20 individuals were charged with various federal offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford. In addition, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, the investigation revealed that Marvin Wooten, also known as “Smash,” of Norwalk, was operating a significant crack cocaine distribution ring in Fairfield County. Between September 2012 and January 2013, Wooten regularly purchased multi-hundred gram quantities of cocaine from various sources of supply, including individuals who were selling cocaine out of a Bridgeport barbershop. He then converted the cocaine to crack cocaine and distributed it to other dealers and customers.
HAMMETT, a trusted friend of Wooten’s, was intercepted over a court-authorized wiretap ordering large quantities of crack from Wooten. He then distributed the crack to other dealers and to his own customers.
HAMMETT’s criminal history dates to 1987 and includes approximately 19 misdemeanor and felony convictions. He was on special parole with the State of Connecticut at the time of this offense.
On September 4, 2013, HAMMETT pleaded guilty to one count of possession with the intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
Wooten also pleaded guilty and, on May 22, 2013, was sentenced to 120 months of imprisonment.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – including the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The U.S. Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]St. Clair County Women Plead Guilty to Theft of Government Social Security BenefitsRead the Press Release
Follow @SDILNewsStephen R, Wigginton, United States Attorney for the Southern District of Illinois, announced today that on July 1, 2014, Tara Star Johndrow, 30, of Belleville, Illinois, and Amber Dawn Adams, 34, of Fayetteville, Illinois, each pled guilty to one count of Theft of Government Funds. Sentencing for Johndrow is scheduled for October 9, 2014, and sentencing for Adams is scheduled for October 17, 2014. Both sentencings will take place in United States District Court in East St. Louis, Illinois.
Adams and Johndrow were indicted separately on April 23, 2014, on charges of Theft of Government Funds, which carry potential penalties of up to 10 years in prison, fines of up to $250,000, and up to 3 years of supervised release to follow any period of incarceration.
The indictment against Adams alleges that between March of 2008 and August of 2012, she falsely claimed and received more than $9,000 in Title II – Survivor Benefits that were intended for the benefit of her child, when the child did not live her and she did not support the child during the time frame alleged in the indictment.
The indictment against Johndrow alleges that between August of 2010 and August of 2012, she received $14,500 in Supplemental Social Security Payments from the Social Security Administration, when she falsely claimed to the government agency that she did not work during the time frame alleged.
“These cases are yet additional examples of the wide-spread fraud that plagues both state and federal programs that are in place to help those in our society who need that help the most. My office will continue to stand beside both federal and state agencies and law enforcement in taking every step necessary to find and prosecute those who steal from, and continue to defraud these vital programs,” said United States Attorney Wigginton.
The investigation was conducted by the Social Security Administration, Office of the Inspector General, and the cases are being prosecuted by Assistant United States Attorney Ranley R. Killian.
South Euclid Woman Indicted for Fraud, Identity TheftRead the Press Release
A 33-count indictment was filed today charging a South Euclid woman with aggravated identity theft, wire fraud and bank fraud related to a $70,000 scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service, Cincinnati Field Office.
Keauna Smith, 28, is accused of stealing the identities of 16 people between 2012 and 2104. She used these stolen identities to file 18 false tax claims of approximately $44,306. She had the money loaded onto prepaid debit cards and then withdrew the money at various ATMs, according to the indictment.
Smith also illegally obtained approximately $26,300 this year by taking checks from her employer, made them payable to herself and then forged the owner’s signature on the checks, according to the indictment.
“This defendant is accused of stealing from private citizens, the federal government and her employer,” Dettelbach said. “Her free ride of theft ends now.”“Investigating refund fraud and identity theft is a priority for Criminal Investigation,” Enstrom said. “Stealing identities and filing false returns is a serious crime that hurts innocent taxpayers. IRS Criminal Investigation is serious about investigating these crimes and holding accountable those who would defraud the government.”
Smith faces 16 counts of wire fraud, 16 counts of aggravated identity theft and one count of bank fraud.
This case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by the Internal Revenue Service – Criminal Investigations.If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Removed Alien Found in Beaver Falls Pleads Guilty, Sentenced to Time ServedRead the Press Release
PITTSBURGH - An alien found in Beaver Falls, Pa., pleaded guilty and was sentenced in federal court to time served (approximately five months) on his conviction of reentry of removed alien, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Jose Guardado-Quezada, 33, of Mexico.
According to information presented to the court, Guardado-Quezada, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Jan. 30, 2007. Jose Guardado-Quezada was found to be illegally present in Beaver Falls on Feb. 6, 2014.
Prior to imposing sentence, Judge Diamond stated that the sentence imposed was sufficient but not greater than necessary to serve the need for deterrence, punishment and incapacitation.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security for the investigation leading to the successful prosecution of Guardado-Quezada.
Reading Resident Sentenced to 51 Months for Gun ChargeRead the Press Release
Juan Pedro Guzman-Zavala, a/k/a Alvaro Julio Luna, 28, of Reading, PA was sentenced today to 51 months in prison for being an alien in possession of a firearm. He was convicted at tril on March 13, 2014. Guzman-Zavala, a native and citizen of Mexico who is unlawfully present in the United States, assumed the identity of a United States Citizen and applied for a United States Passport in that name. Guzman-Zavala also possessed a 9mm handgun despite the prohibition against illegal aliens possessing firearms.
In addition to the prison term, Guzman-Zavala was ordered to pay a $2,000 fine, and a $300 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI), and the Detective Bureau of the Berks County District Attorney’s Office. It was prosecuted by Assistant United States Attorney Jeanine Linehan.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Racketeering Indictment Charges 17 Tied to Unsolved Homicides, Drug Trafficking, Gun CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A federal grand jury has indicted 17 people in connection with a series of violent crimes including 12 unsolved murders as well as other attempted murders, drug trafficking, weapons trafficking, extortion and robbery. The defendants are accused of being an organized criminal enterprise known as the Short North Posse. Eleven defendants could face the death penalty if convicted of the crimes in the indictment.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), James V. Allen, Special Agent in Charge, Drug Enforcement Administration (DEA), Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Sheriff Zach Scott, Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs announced the indictment, which was unsealed today following early morning efforts to arrest and locate the defendants.
The indictment alleges that beginning in 2005, members of the enterprise originally referred to themselves solely as the Short North Posse. Later some members began subsets of the Short North Posse referring to themselves as the Cut Throat Committee and later the Homicide Squad. Still within the Short North Posse, Cut Throat Committee and Homicide Squad specialized in murders and robberies of rival gang members, other drug dealers, and targets thought to have large sums of cash or firearms. The Short North Posse also identified themselves nationally with the Crips street gang.
A list of those charged is below.The indictment charges one or more of the defendants with 12 unsolved homicides, 23 attempted homicides, 41 violent felonies and 45 weapons offenses. The crimes occurred in Canal Winchester, Chillicothe, Columbus, Pataskala, Pickerington, and Zanesville, between 2005 and 2012.
The indictment is a result of a two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, and Franklin County Prosecutor Ron O’Brien’s Office. Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction joined U.S. Attorney Stewart in announcing the charges.
“As part of the investigation, law enforcement set up a tip-line in February seeking information on unsolved murders in central Ohio,” U.S. Attorney Stewart said. “Because of public response and law enforcement determination and hard work, we’re announcing charges against people a grand jury alleges were responsible for 12 unsolved homicides.”
All defendants will appear before a U.S. Magistrate Judge who will determine whether or not to hold them without bond until trial.
Stewart commended Assistant U.S. Attorneys David DeVillers and Kevin Kelley, as well as Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Charges contained in an indictment are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
SNP
Cut Throat/Homicide SquadNo.
Name
Age
City of Residence
Counts
1
*Robert B. Ledbetter
35
Columbus, Ohio
1, 4, 9, 10, 17, 18, and 19
2
*Lance A. Green
34
Columbus, Ohio
1, 2, and 3
3
*Allen L. Wright
28
Columbus, Ohio
1, 2, and 3
4
Tysin L. Gordon
28
Columbus, Ohio
1
5
*Christopher A. Harris
26
Columbus, Ohio
1, 5, 6, 7, 8, 9, and 10
6
*Robert L. Wilson III
25
Columbus, Ohio
1, 5, 6, 9, 10, 15, and16
7
*Rashad A. Liston
25
Columbus, Ohio
1, 9, 10, 15, and 16
8
*Deounte Ussury
29
Columbus, Ohio
1, 7, 8, and 11
9
Thomas E. Coates
28
Columbus, Ohio
1
10
Ishmael Bowers
32
Columbus, Ohio
13 and 14
11
*Joseph Hill
30
Columbus, Ohio
1, 12, 13, 14, 22, and 23
12
Freddie K. Johnson
28
Columbus, Ohio
1, 20, and 21
13
*Deshawn Smith
27
Columbus, Ohio
1, 13, 14, 24, and 25
14
Lance Reynolds
31
Columbus, Ohio
13 and 14
15
*Rastaman A. Wilson
37
Columbus, Ohio
5 and 6
16
*Clifford L. Robinson
36
Columbus, Ohio
5 and 6
17
Troy A. Patterson
23
Columbus, Ohio
15 and 16
* indicates that they could face the death penalty
Count 1
Racketeering Conspiracy
18 U.S.C. § 1962(d)0-life imprisonment
$250,000 fine
$100 spec assmt
5 yrs supv relCounts 2, 3, 4, 5, 7, 9, 11, 12, 13, 15, and 17
Murder in aid of racketeering
18 U.S.C. § 1959(a)(1)0-life imprisonment/death
$250,000 fine
$100 spec assmt
5 yrs supv relCounts 6, 8, 10, 14, and 16
Murder through the use of a firearm during and in relation to a drug trafficking crime
18 U.S.C. § 924(C) and 924(j)0-life imprisonment/death
$250,000 fine
$100 spec assmt
5 yrs supv relCount 18
Conspiracy to murder a witness
18 U.S.C. § 1512(k)Life or death
$250,000 fine
$100 spec assmt
5 yrs supv relCount 19
Use and discharge of a firearm during and in relation to a crime of violence
18 U.S.C. § 924(c)(1)(A)(iii)10 years - life imprisonment consecutive
$250,000 fine
$100 spec assmt
5 yrs supv relCount 20, 21, 22, and 24
Possession of a firearm by a convicted felon
18 U.S.C. § 922(g)0-10 years
$250,000 fine
$100 spec assmt
3 yrs supv relCount 23
Possession with intent to distribute cocaine
21 U.S.C. § 841(a)(1)
21 U.S.C. § 841(b)(1)(C)0-20 years
$1,000,000 fine
$100 spec assmt
3 yrs supv relCount 25
Possession with intent to distribute heroin
21 U.S.C. § 841(a)(1)
21 U.S.C. § 841(b)(1)(C)0-20 years
$1,000,000 fine
$100 spec assmt
3 yrs supv relPompano Beach Resident Charged with Illegally Trafficking in Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracey Dunn, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Eric Burman, 60, of Boca Raton, was arraigned Friday in Key West for conspiring with others to transport, sell, receive, acquire, and purchase Florida spiny lobster (Panulirus argus) with a fair market value in excess of $350.00, knowing that said Florida spiny lobster was taken, possessed, transported, and sold in foreign commerce, in violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(1).
Burman faces a possible sentence of up to five years in prison, a term of supervised release of up to three years, and a criminal fine of up to $250,000.
According to the allegations of the information filed against him, at the relevant times, Burman was President and the sole Director of a Florida corporation with its principal place of business in Pompano Beach. Burman, through the business entity, was engaged in the wholesale commercial seafood industry, including the export of live Florida spiny lobster to the seafood market in China.
The information further alleges that during August and September 2010, Burman and others, purchased spiny lobster from harvesters in Monroe County without creating and providing to the harvesters and the Florida Fish & Wildlife Conservation Commission, trip tickets reflecting the transaction. Thereafter, a co-conspirator of Burman’s caused the lobster to be transported to the corporate business premises in Pompano Beach for packing and shipping in foreign commerce. Burman agreed to permit a co-conspirator to package, mark, and ship spiny lobster under the corporate business entity’s name and through the corporation’s shipping agent. The lobster would ultimately be transported from the business premises in Pompano Beach to a commercial airfreight carrier located at Miami International Airport for export from the United States to Hong Kong, China.
The information, in a series of “overt acts”, describes multiple instances when specific shipments of spiny lobster were made to China by air freight, and the unlicensed and undocumented purchase of spiny lobsters in the Florida Keys.
Mr. Ferrer commended the joint investigative efforts of the NOAA’s Office of Law Enforcement and ICE-HSI. This matter is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
An information is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Physician Pleads Guilty for Role in Detroit-Area Medicare Fraud SchemeRead the Press Release
A Detroit-area physician pleaded guilty today for his role in a $7 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Walayat Khan, 66, of Ypsilanti, Michigan pleaded guilty before U.S. District Judge Paul D. Borman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Oct. 7, 2014.
According to court documents, beginning in January 2009, Dr. Khan and others agreed that he would refer Medicare beneficiaries to Advance Home Health Care Services, Inc. (Advance HHC), Perfect Home Health Care Services, LLP (Perfect HHC), and other Detroit-area home health care agencies for medically unnecessary home health services. Dr. Khan signed medical documents, such as home health care certifications and plans of care for these beneficiaries, falsely certifying that they required home health care and they were under his care. Advance HHC, Perfect HHC, and other home health care agencies then used Dr. Khan’s false documents to support their claims to Medicare for home health services—including physical therapy services—that were never rendered and/or not medically necessary. Dr. Khan knew the medical documents he signed for his co-conspirators would be used to support false claims to Medicare.
Additionally, in exchange for signing the home health care documents, Dr. Khan received and accepted cash kickbacks and other forms of payment from home health agency owners, and Dr. Kahn paid kickbacks to a doctor in exchange for that doctor falsely certifying patients for home health care that would be billed to Medicare.
As further alleged in court documents, Dr. Khan used patient recruiters to recruit Medicare beneficiaries to his practice. Dr. Khan and one recruiter agreed that the recruiter would refer Medicare beneficiaries to Dr. Khan in exchange for Dr. Khan writing controlled substance prescriptions for the beneficiaries and paying cash to the recruiter. Another recruiter transported patients to Dr. Khan’s medical practice so that Dr. Khan would write the patients medically unnecessary prescriptions for controlled substances, bill Medicare for physician services purportedly provided to the patients, and refer the patients for medically unnecessary home health care services at Advance HHC, Perfect HHC, and other home health care agencies.
Dr. Khan billed Medicare and caused Medicare to be billed for medically unnecessary controlled substances, physician services, and home health services. These false and fraudulent claims to Medicare totaled approximately $6,123,044.28 in billings, of which $5,504,733.31 was paid.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Special Trial Attorney Katie R. Fink and Trial Attorney Patrick J. Hurford of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Omaha Woman Sentenced for Mail FraudRead the Press Release
United States Attorney Deborah R. Gilg today announced that Chief United States District Court Judge Laurie Smith Camp, sentenced Tamika Payne, age 35 of Omaha, Nebraska, following her conviction for conspiracy to commit mail fraud. Payne was sentenced to probation for five years including six months of location monitoring. She was also ordered to pay restitution to the Nebraska Department of Health and Human Services in the amount of $141,091.18.
Payne was friends with coconspirator Jason Armstrong. Armstrong worked as a case manager for the Nebraska Aids Project where he was tasked with addressing the needs of Nebraska clients living with HIV/AIDS. Armstrong linked clients to appropriate resources which included housing assistance. Armstrong, working in concert with Payne, submitted fraudulent applications for housing benefits that were paid out with funds provided by the United States Department of Housing and Urban Development. The applications were fraudulent, in some instances, because they had been submitted in the names of people who were not clients of the Nebraska Aids Project. In other instances, the applications were submitted in the names of actual clients but the submissions were made without the clients’ knowledge or consent. Checks would be issued in response to the fraudulent applications and the proceeds would be split between Armstrong and Payne. Payne’s role consisted, in part, of signing “landlord certifications” which falsely represented she was the landlord of the properties where the bogus clients lived. She also cashed checks generated by the scheme and split the proceeds with Armstrong. During the course of the scheme approximately $141,091.18 in fraudulent benefits were paid out. Jason Armstrong was sentenced in March of 2014 to the custody of the United States Bureau of Prisons to serve a sentence of 24 months. He was likewise ordered to pay restitution in the same amount.
This case was investigated by the United States Secret Service.
Norfolk Man and Portsmouth Woman Sentenced in Bank Fraud and Identity Theft SchemeRead the Press Release
NORFOLK, Va. – Cameron Allen, 27, of Norfolk, Va., was sentenced today to 46 months in prison, followed by 5 years of supervised release, for conspiracy to commit bank fraud. Dymond Chappelle, 19, of Portsmouth, Va., was also sentenced today to 20months in prison, followed by 5 years of supervised release, for conspiracy to commit bank fraud.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Charles May, Acting Executive Assistant Director for Atlantic Operations, Naval Criminal Investigative Service, made the announcement after sentencing by Chief United States District Judge Rebecca Beach Smith.
Chappelle pled guilty on May 12, 2014, and Allen pled guilty on May 13, 2014. According to court documents, from January 2013 to March 2013, Allen, Chappelle, and three co-conspirators executed a fraud and identity theft scheme through which they stole approximately $87,000 from Navy Federal Credit Union. A co-conspirator illegally obtained 291apartment lease applications, each of which contained the applicant’s personal information such as name, date of birth, social security number, and bank account information. Using this personal information, Chappelle and Allen were able to gain access to their accounts. They persuaded other individuals with NFCU accounts to serve as “hosts” for fraudulent transactions often by telling them that they lost their ATM card and needed help getting cash. Chappelle, Allen or one of their co-conspirators called NFCU under a victim’s identity and requested electronic funds transfers to the host accounts. The hosts then withdrew the money and provided it to Chappelle, Allen or a co-conspirator. The members of the scheme accessed the accounts of 21 individuals.
This case was investigated by the Naval Criminal Investigative Service and the Norfolk Police Department. Assistant United States Attorney Randy Stoker prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Niles Man Sentenced to 10 Years in Prison for Having Firearms, Ammunition and Body Armor Despite FelonyRead the Press Release
A Niles man was sentenced to 10 years in prison for being a felon in possession of firearms, ammuntion and body armor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Michael L. Green, Jr., age 34, pleaded guilty to a two-count indictment earlier this year.
On October 28, 2013, Green possessed a MAADI, model RML, 7.62” x 39” rifle; a Ruger, model SR40, .40 caliber pistol; 97 rounds of 7.62” x 39” ammunition; and 16 rounds of .40 caliber ammunition, after he had previously been convicted of failure to comply with order or signal of a police officer, burglary and assault on a peace officer, in the Trumbull County, Ohio, Court of Common Pleas.
Additionally, Green was in possession of body armor on October 28, 2013, despite having previously been convicted of a violent felony.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Warren Police Department. The case was prosecuted by Assistant United States Attorney David M. Toepfer.
News ReleaseRead the Press Release
Albert A. Riccardi, 64, of Sewell, NJ, was charged today by Information with filing a false tax return, announced United States Attorney Zane David Memeger. The Information charges that from 2009 through 2012, Riccardi operated a sports bookmaking operation and accepted payments from his bettors in the form of checks, money orders, and cash. The Information alleges that in 2010 and 2011, Riccardi failed to report the income from his bookmaking operation, thereby underreporting his income for each year by over $98,000 and $185,000, respectively.
If convicted, the defendant faces a maximum possible sentence of three years of imprisonment, one year of supervised release, a $100,000 fine, and a $100 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.Ricardi_Release.pdf
UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT, PENNSYLVANIA
615 Chestnut Street
Suite 1250,
Philadelphia, PA 19106Contact: PATTY HARTMAN
Media Contact: 215-861-8525
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT http://www.justice.gov/usao/pae
New York State Senator Thomas W. Libous Indicted by A White Plains Federal Grand Jury for Lying to the FBI; Attorney Matthew Libous Also Separately Charged with Related Tax OffensesRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office and Andrew W. Vale the Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation ("FBI"), and Shantelle P. Kitchen, the Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service - Criminal Investigation ("IRS"), announced today that a grand jury sitting in White Plains has returned an Indictment charging New York State Senator THOMAS W. LIBOUS with making false statements to the FBI in connection with a federal grand jury investigation about payments he allegedly caused an Albany lobbying firm to funnel to his son, Matthew Libous. Matthew Libous, an attorney, was also separately charged with tax crimes, including his failure to identify the source of payments he received from the lobbying firm.
Manhattan U.S. Attorney Preet Bharara stated: "As alleged, Thomas Libous took advantage of his position as Senator and Chairman of the Transportation Committee by corruptly causing lobbyists, who wanted Libous's influence to benefit their clients, to funnel money through a law firm to his son where Libous has gotten his son a position. He then tried to cover up his corrupt conduct by lying to FBI Agents about his knowledge of his son's arrangement with the firm, as the Indictment describes. Public servants should serve the public first, not themselves and their families. This Office will continue to pursue elected officials who attempt to take corrupt advantage of their positions."
Assistant FBI Director George Venizelos stated: “As alleged, rather than serve the public he took an oath to serve, Senator Libous used his political position to garner favorable treatment for himself and his son. Lying to FBI Agents is a serious offense and his alleged criminal conduct is an injustice to the community he represents. The investigation and indictment of Senator Libous demonstrates the FBI’s ongoing commitment to weed out public corruption at all levels of government and bring to justice those who betray the public’s trust.”
Acting Special Agent in Charge of IRS – Criminal investigation Shantelle P. Kitchen stated: “IRS-Criminal Investigation will thoroughly investigate those who wilfully violate the income tax laws and obstruct tax administration and we will work with the Department of Justice to see that they are prosecuted. While prosecuting violators is essential to making the tax system work, such prosecutions also reassure the confidence of honest taxpayers in the tax system. We are committed to ensuring that everyone pays their fair share.”
According to the allegations in the Indictment:
A federal grand jury in White Plains was investigating allegations that THOMAS LIBOUS had obtained a job for a family member at a Westchester law firm (“the Law Firm”) in exchange for a promise to refer business to the firm and had arranged for an Albany lobbying firm that regularly lobbied him to secretly pay the law firm $50,000 per year to defray the cost of Libous’s son’s salary and lease of a Range Rover. The lobbying firm specialized in transportation issues and THOMAS LIBOUS served as the Chairman of the Senate's Transportation Committee at the time. The Indictment further alleges that THOMAS LIBOUS told a partner of the Law Firm that the firm would have to "build a new wing" to accommodate the business he would refer to it if it hired his son.
Special Agents of the FBI interviewed THOMAS LIBOUS on June 24, 2010, as part of the grand jury's investigation. According to the Indictment, THOMAS LIBOUS made the following false statements to the agents during the interview:
a. he could not recall how his son began to work at the Law Firm;
b. no deals were made to get his son the job at the Law Firm;
c. he was not aware that the lobbying firm had paid any part of his son's salary at the Law Firm;
d. he never promised to refer work to the Law Firm;
e. he was not involved in his son's decision to work at the Law Firm;
f. he had no business or personal relationship with the Law Firm; and
g. he did not know of any relationship between the lobbying firm and the Law Firm.
THOMAS LIBOUS, 61, of Binghamton, New York, faces a maximum sentence of 5 years' imprisonment. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes, as any sentencing of the defendant will be determined by the judge.
Also announced today is the return of a second Indictment, returned by a grand jury sitting in White Plains, charging MATTHEW LIBOUS with obstructing the IRS in its administration of the tax laws and subscribing to false tax returns.
According to the allegations in the Indictment:
MATTHEW LIBOUS, 32, was employed at a Westchester law firm in early 2006. At the same time, MATTHEW LIBOUS received legal fees directly from clients for whom he provided legal services without the law firm's knowledge. After the law firm terminated MATTHEW LIBOUS' employment, MATTHEW LIBOUS continued to receive legal fees from clients which he failed to report on his federal income tax return. The Indictment alleges that MATTHEW LIBOUS failed to accurately identify the source of payments he received from an Albany lobbying firm that were funneled to him through the Westchester law firm. The Indictment also alleges that MATTHEW LIBOUS failed to report a total of $57,580 in legal fees and other income on his 2006, 2007 and 2008 tax returns.
In 2008, MATTHEW LIBOUS became an owner of Wireless Construction Solutions, LLC ("WCS"), a Westchester-based company that installed and serviced cellular telephone towers. The Indictment alleges that from 2008 through 2011, MATTHEW LIBOUS caused WCS to pay personal expenses on his behalf, including expenses for multiple casino trips, vacations, iTune purchases, a gym membership, an internet dating subscription, spa treatments, visits to tanning salons, clothing, food and student loan payments. According to the Indictment, MATTHEW LIBOUS caused WCS to pay $244,218 in personal expenses from 2008 through 2011. The Indictment alleges that MATTHEW LIBOUS failed to report any of this income on his tax return.
The Indictment charges MATTHEW LIBOUS with one count of obstructing the administration of the tax laws, which carries a maximum sentence of three years' imprisonment, and five counts of subscribing to false tax returns, each of which carries a maximum sentence of three years' imprisonment. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and the IRS.
These prosecutions are being handled by the Office's White Plains Division. Assistant U.S. Attorneys Perry A. Carbone and James McMahon are in charge of the prosecutions.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Libous Thomas.Indictment
Libous Matthew.IndictmentNaples Resident Sentenced for Treasury Check Cashing and Stolen Identity SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announce that Victor Martinez Pantoja, 23, of Naples, was sentenced before U.S. District Judge Jose E. Martinez in Key West to 34 months in prison, to be followed by three years of supervised release.
Pantoja previously pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 64l, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents, on November 21, 2013, Pantoja met with two individuals and negotiated a deal to cash fraudulently obtained U.S. Treasury income tax refund checks. During the meeting, Pantoja gave the individuals three Treasury checks totaling $27,263 to be cashed, provided a copy of a counterfeited Florida driver’s license and social security card for each corresponding Treasury check, and forged the names of the individuals to endorse the back of each check. Pantoja obtained these U.S. Treasury checks by filing fraudulent tax returns using the identities of individuals who died in the previous tax year. He obtained the deceased individuals’ identities from the internet.
Court documents also state that the individuals agreed to cash the Treasury checks within three business days and to return $20,500 to Pantoja. On November 26, 2013, the individuals gave Pantoja $20,500 as payment for the previous three Treasury checks. During this meeting, Pantoja provided the individuals with six Treasury checks totaling $35,547, which were to be cashed by the individuals.
Mr. Ferrer commended the investigative efforts of FBI, IRS-CI, and the USPIS. This case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mount Ida Man Pleads Guilty to Money Laundering and Wire FraudRead the Press Release
Texarkana, AR – Conner Eldridge, United States Attorney for the Western District of Arkansas; Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; and Christopher A. Henry, Special Agent in Charge of the Nashville Field Office of the Internal Revenue Service, Criminal Investigation Division; announced today that Steven Alan Standridge, age 57, of Mount Ida, Arkansas entered pleas of guilty to money laundering and wire fraud counts related to indictments issued against him by federal grand juries in both the Western and Eastern Districts of Arkansas. Standridge pleaded guilty to one count of wire fraud from a 23-count indictment issued by a Grand Jury in the Western District of Arkansas on October 30, 2013. Pursuant to the terms of the plea agreements, Standridge pleaded guilty to one count of money laundering from a twelve-count A u g us t 8 , 20 12, Indictment by a Grand Jury in the Eastern District of Arkansas which was transferred to the Western District of Arkansas. . The plea took place before the Honorable Susan O. Hickey in United States District Court for the Western District of Arkansas in Texarkana.
Pursuant to both plea agreements, Standridge and the United States agreed that a sentence of imprisonment of 60 months, to run concurrent, followed by a term of supervised release as determined by the court, and victim restitution totaling $7,096,417.35, is the appropriate sentence to be imposed by the court. The parties further agreed that should Standridge pay at least 80% of the restitution owed before sentencing, the United States would not object to Standridge seeking a variance in sentence to 36 months. The United States will oppose any variance below 36 months. The plea agreements provide that if the court does not accept these sentencing terms, Standridge may withdraw his pleas.
The indictment issued in the Eastern District of Arkansas charged Standridge with one count of conspiring to commit bank fraud, four counts of aiding and abetting bank fraud, one count of bank fraud, five counts of money laundering, and one count of making a false statement to a financial institution. The indictment in the Western District of Arkansas charged Standridge with eight counts of wire fraud, one count of mail fraud, two counts of money laundering, six counts of bank fraud, and six counts of making a false statement to a financial institution.
U.S. Attorney Eldridge stated, “This case shows that we are focused on combating fraud throughout the state of Arkansas. This Defendant carried out various schemes to defraud Arkansas businesses and individuals. Such conduct takes advantage of legitimate hard-working people in our state. We will continue to work together to prosecute those who seek to steal or swindle money from others.”
“Standridge used his reputation and standing in the community to undermine the trust of hometown banks and destroyed the livelihood of a small business owner,” stated Thyer. Actions, such as those admitted to today by Standridge, have long-standing negative effects when friends and business associates resort to deception for personal gain. Hopefully, this plea today and the subsequent sentence to follow, will allow some measure of closure for those affected and they can move forward to rebuild their lives and businesses. I am grateful for the diligence of the many investigators, especially the investigators at the Arkansas Insurance Department, and the prosecutors in both the Eastern and Western Districts of Arkansas for their pursuit of justice for the citizens of Arkansas.”
“The FBI vigorously pursues those who commit sophisticated bank fraud and money laundering schemes that threatens the stability of banking institutions,” said David T. Resch, Special Agent in Charge of the FBI’s Little Rock Field Office, “This indictment demonstrates the collective determination of our federal and state partners in maintaining public trust and ensuring its continuation.”
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money,” said Henry. “Those individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners.”
“I commend all the parties involved for bringing this case to its rightful conclusion,” said Arkansas Insurance Commissioner Jay Bradford. “I am especially proud of our Criminal Investigation, Legal, and Liquidation Divisions for their perseverance and continued cooperation with the U.S. Attorney’s Office.”
The Eastern District Indictment against Standridge followed pleas of guilty to an Information by Danny Wood of Idabel, Oklahoma and Gregory A. Hunt of Russellville, Arkansas. On March 2, 2012, Wood pled guilty to aiding and abetting bank fraud. On July 6, 2012, Wood was sentenced to 30 months imprisonment. On June 6, 2012, Hunt pled guilty to aiding and abetting bank fraud. Hunt was sentenced on October 31, 2012 to 33 months imprisonment.
Throughout the time period set forth in both Indictments, Standridge owned, operated, and/or managed various independent insurance agencies in the State of Arkansas. Through those companies, Standridge provided various types of insurance policies and bonds to his customers including Danny Wood and Gregory A. Hunt.
The Indictment against Standridge filed in the Eastern District of Arkansas alleged that Standridge conspired with Wood and Hunt to commit bank fraud. The Indictment stated that as part of the conspiracy, Standridge arranged for Wood, Hunt, and their companies to obtain premium finance loans from banks located in the Eastern District of Arkansas. Premium finance loans are made to insureds to cover the cost of an insurance premium. The insurance policy purchased with the loan proceeds serves as the collateral for the loan. Standridge would either purchase the insurance policies that were collateral for those loans and then later cancel the policies or would never purchase the policies that were listed on the premium finance agreements. The proceeds of those loans were ultimately paid to Standridge and were used for purposes other than those set forth in the loan agreements.
The Indictment filed in the Western District of Arkansas alleged that Standridge who was president of Steve Standridge Insurance, Inc. (SSI) arranged for SSI to obtain loans from a corporation located in Hot Springs, Arkansas by falsely representing that SSI would use the loans to purchase two insurance agencies and that Standridge submitted false information to a bank in Hot Springs, Arkansas in an attempt to obtain a loan for SSI to purchase an insurance agency. The Indictment alleged that there were no agreements to purchase the insurance agencies as represented by Standridge and that he used the $2.7 million dollar loans obtained from the Hot Springs corporation for other purposes.
According to the plea agreement filed in the Western District of Arkansas, in January 2010 Standridge falsely represented to the president of the corporation Hot Springs that SSI was buying two insurance agencies and had obtained bank loans for these purchases. Standridge obtained $2.7 million from the corporation to purchase these insurance agencies with the promise that these loans would be repaid with the proceeds from the bank loans. The investigation revealed that SSI had no agreement to purchase these insurance agencies and that SSI had not arranged any bank loans to finance these fictitious purchases. In furtherance of his fraudulent scheme Standridge sent emails to the president of the corporation including an email sent on January 26, 2010, containing false and fraudulent income statements for one of the insurance agency which agency had never conducted business nor earned any income. Standridge plead guilty to count 3 of the Indictment charging him with wire fraud for sending this email.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation with the assistance of the Arkansas Insurance Department-Criminal Investigation Division. This case was prosecuted in the Eastern District of Arkansas by Assistant United States Attorneys Patricia S. Harris and Kristin Bryant, and in the Western District of Arkansas by Assistant United States Attorney Kenneth Elser.
Mexican Man Sentenced for Alien Smuggling Operation Resulting in DeathRead the Press Release
HOUSTON - Heriberto Barajas-Coria, a Mexican citizen, has been ordered to prison for six years for conspiracy to transport and harbor aliens which resulted in the death of one, announced U.S. Attorney Kenneth Magidson. Barajas-Coria pleaded guilty Feb. 6, 2014.
Today, U.S. District Judge Lee H. Rosenthal, who accepted the plea, handed Barajas-Coria a total sentence of 72 months in federal prison. As an illegal alien, Barajas-Coria is expected to face deportation proceedings following his release from prison.
On or about June 1, 2012, several undocumented aliens entered the U.S. from Mexico and were guided to a stash house in a trailer park in McAllen. Two days later, they were driven for approximately three hours where they exited the vehicles and were then guided through the brush for approximately five days.
After finally reaching a road, Barajas-Coria proceeded to drive them to Houston. After two hours of driving, a 40-year-old Mexican male died. Barajas-Coria told two other undocumented aliens to leave the body by the side of the road. The other aliens were taken to a stash house in Houston.
On or about June 11, 2012, Barajas-Coria contacted a relative of one of the undocumented aliens to demand smuggling fees. That relative contacted police who subsequently arranged for a meeting with Barajas-Coria to pay the fees. Barajas-Coria fled that meeting but was later arrested.
Barajas-Coria will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by agents of Homeland Security Investigations, Bee County Sheriff’s Office and the Nueces County Office of the Medical Examiner. Former Special Assistant U.S. Attorney (SAUSA) Dan Menes prosecuted the case. SAUSA Richard Bennett handled the sentencing today.
Mexican Man Pleads Guilty to Sex Trafficking 16-Year-Old GirlRead the Press Release
RICHMOND, Va. – Javier Flores Mendez, 24, of Tenancingo, Mexico, pleaded guilty today to sex trafficking a 16-year-old girl and transporting her into the United States for prostitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after the guilty plea was accepted by U.S. Magistrate Judge David J. Novak.
Flores was indicted on April 1, 2014 by a federal grand jury on charges of transportation of a minor for illegal sexual activity and sex trafficking of a child. Flores faces a mandatory minimum sentence of ten years in prison on the transportation charge and a 15-year mandatory minimum term on the sex trafficking charge. Both offenses carry a potential maximum penalty of life in prison. Flores will be sentenced on Nov. 5, 2014 by U.S. District Judge James R. Spencer.
As outlined in court records, the defendant’s hometown of Tenancingo is known inside and outside of Mexico for having a widely accepted culture of pimping and prostitution. Every year, residents of Tenancingo put on a festival known as “Carnaval,” which celebrates the pimp and prostitute lifestyle. Tenancingo’s pimps and their associates have for years been responsible for moving prostitutes to other towns and cities in Mexico, as well as locations in the United States. A primary destination for victims who are being trafficked from Tenancingo is Queens, New York.
According to a statement of facts filed with his plea agreement, in March 2013, Flores approached a then 15-year-old girl who was selling roasted corn at a food stand in Puebla, Mexico. After striking up a conversation with the girl, Flores bought her a cell phone and programmed his number in it. Over the next several weeks, Flores and the girl communicated using that telephone, and they later went on several dates. In May 2013, Flores persuaded the girl to come live with him in Tenancingo, which is approximately three hours away by car from Puebla. Flores took the girl on a shopping trip to buy her clothes, shoes, makeup, jewelry and undergarments. At first, Flores treated the victim well, though he always controlled her movements and activities and did not give her a key for the hotel room where they initially lived. After about a week, however, Flores began threatening that he would kill the girl if she did not do what he said or attempted to run away.
In July 2013, Flores planned a trip to illegally enter the United States and travel to New York. Flores admitted to forcing the victim to travel with him by threatening that he would kill her and her family if she did not go. Flores and the girl were apprehended on July 4 in McAllen, Texas, after wading across the Rio Grande River with the assistance of “coyotes,” who are individuals paid to help smuggle migrants across the U.S.-Mexico border. Flores and the girl were returned to Mexico, and the girl went back to live with her family in Puebla. Flores and the victim had no contact for several months.
In September 2013, Flores re-established contact with the girl, starting a pattern of conversations in which he repeatedly apologized for his prior behavior and asked for forgiveness. After multiple conversations, the girl agreed to leave her home in Puebla and live with Flores in Tenancingo. Flores again started off treating the girl well, but after about a week, Flores controlled her movements and access to people, and repeated the same threats that he would kill her if she did not do what he said or attempted to leave.
In late October 2013, Flores told the girl that she would have to start working as a prostitute at various bars in and around Tenancingo and Puebla. Flores forced the victim to work as a prostitute every night for a week, during which time she serviced ten or more men a night and as many as a total of 100. Flores also told the girl that they would again cross the border into the United States and travel to Queens, New York, where she would also work as a prostitute.
In or around late October or early November 2013, Flores and the victim successfully crossed the Mexico-U.S. border and for several days stayed in various safe houses in the Houston, Texas area. On November 2, they departed Houston in a Ford Excursion with nine other illegal aliens traveling to various points in the northeast United States. In the early morning hours of November 4, the vehicle was stopped for speeding by a Henrico County police officer in Richmond. At that time, Flores and the minor were put into immigration detention and this investigation followed.
This case was investigated by ICE-HSI. Assistant U.S. Attorneys Brian R. Hood and Heather L. Hart are prosecuting 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. 3:14-cr-40.Mexican Man Pleads Guilty to Possessing 31 Counterfeit Credit and Bank CardsRead the Press Release
McALLEN, Texas – Alfredo Alejandro Alvarez-Mendicuti, 35, of Mexico, has entered a plea of guilty to possessing 31 counterfeit credit and bank cards with the intent to defraud, announced U.S. Attorney Kenneth Magidson.
Alvarez-Mendicuti admitted that on April 25, 2014, he possessed 31 fake credit cards and bank cards that he had hidden in his waistband area. The cards purported to be issued by American Express, Discover, Banorte, AFIRME, HSBC, Bancomer, Banco Del Bajio, Banamex and Santander. Officers found the cards after Alvarez-Mendicuti entered the U.S. at the Anzalduas Port of Entry.He admitted he had purchased the cards in Mexico, knowing that they were counterfeit and fake, so that he could use them to fraudulently purchase items in the U.S.
U.S. District Judge Micaela Alvarez, who accepted the plea today, has set sentencing for Sept. 18, 2014. At that time, he faces a possible sentence of up to 10 years in federal prison and a maximum $250,000 fine.
This case was investigated by the Secret Service. Assistant U.S. Attorney Christopher Sully is prosecuting the case.
Mastermind of Violent Robbery Crew Sentenced to 35 Years in Prison on Robbery Murder and Weapons ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Terrance Brown, 41, formerly of Miami-Dade County, was sentenced to 35 years in prison by U.S. District Judge Robin S. Rosenbaum for Hobbs Act robbery, two counts of attempted Hobbs Act robbery, and three counts of possession of a firearm in furtherance of a crime of violence.
The evidence at trial revealed that Brown was the mastermind of a seven-man robbery crew that conspired in 2010 to rob armored Brinks trucks. In July 2010, the crew planned to rob a Brinks truck at a Bank of America in Lighthouse Point. However, that robbery did not occur because the Brinks truck did not arrive at the bank at the time that the crew planned to rob it. In September 2010, the crew attempted to rob another Brinks truck at a Bank of America in Miramar. That robbery also did not occur because a police vehicle drove through the bank parking lot just prior to the planned robbery causing members of the crew to run from the scene. Finally, in October 2010, the crew returned to the same Bank of America in Miramar to once again rob the Brinks guard as he was delivering currency to the bank. During that robbery, the gunman fatally shot the guard in the head while Brown and his accomplices acted as lookouts. The gunman was arrested at the scene, and one year later, pleaded guilty and was sentenced to life in prison.
Mr. Ferrer commended the investigative efforts of the FBI’s Violent Crime Task Force, the Broward County Sheriff’s Office, the Miramar Police Department, the Lighthouse Point Police Department and the Coconut Creek Police Department. This case was prosecuted by Assistant U.S. Attorneys Mark Dispoto, Marc Anton and Michael Gilfarb.
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.
Manhattan U.S. Attorney Settles Civil Fraud Claims Against HSBC Bank for Failure to Monitor Fees Submitted for Foreclosure-Related ServicesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michael P. Stephens, Acting Inspector General for the Federal Housing Finance Agency Office of Inspector General (“FHFA-OIG”), announced today that the United States has settled civil fraud claims under the False Claims Act against HSBC BANK USA, N.A., HSBC FINANCE CORPORATION, HSBC MORTGAGE CORPORATION (USA), and HSBC MORTGAGE SERVICES, INC. (collectively, “HSBC”), related to HSBC’s failure to oversee the reasonableness of foreclosure-related charges HSBC submitted to HUD’s Federal Housing Administration (“FHA”) and the Federal National Mortgage Association (“Fannie Mae”) for reimbursement, contrary to program requirements and HSBC’s certifications that it had done so.
In the settlement, approved for release yesterday in Manhattan federal court by U.S. District Judge Thomas P. Griesa, HSBC accepted responsibility for failing to create or maintain systems to review fees and charges submitted by outside counsel and other third-party providers to HSBC during 2009 and 2010, fees and charges which HSBC then submitted to FHA and Fannie Mae for reimbursement without the requisite oversight and review. HSBC agreed to pay the Government $10 million to resolve its liability to the United States for this conduct.
Manhattan U.S. Attorney Preet Bharara said: “HSBC failed to live up to its legal obligation to monitor and review fees and expenses it was submitting to FHA and Fannie Mae for reimbursement, and in the process, cost the public millions of dollars. With today’s settlement, HSBC publicly admits to its failures and agrees to pay the Government $10 million. Civil actions like these serve as an important tool that our Office can and will continue to use in holding financial institutions responsible for misconduct.”
FHFA-OIG Acting Inspector General Michael P. Stephens: “HSBC had a responsibility, as a servicer, to have controls in place which ensured the fees and charges submitted to Fannie Mae were appropriate and reasonable. Their lack of controls showed gross neglect and an abject failure to serve their customers, FHA and Fannie Mae, and therefore the taxpayers. We are proud to have worked with our partners on this case.”
According to the settlement filed in Manhattan federal court:
As a residential mortgage loan servicer, HSBC performs or oversees the performance of certain administrative activities in connection with residential mortgage loans, such as collecting mortgage payments and pursuing foreclosure when borrowers become delinquent. In pursuing foreclosure on behalf of HSBC, outside counsel and other third-party providers of foreclosure-related services, such as title companies and process servers, incur fees and expenses. HSBC has routinely submitted reimbursement requests to FHA and Fannie Mae for these foreclosure-related fees and expenses.
Pursuant to the National Housing Act, FHA offers mortgage insurance programs whereby it insures lenders against losses on mortgage loans, including expenses related to mortgage servicing, and specifically, expenses incurred in foreclosure proceedings. HSBC has been an approved servicer of FHA-insured loans for many years. In order to obtain and maintain FHA approval to service FHA-insured loans, HSBC was required to submit and did submit annual certifications stating that it adhered to all FHA handbooks, regulations and policies. One such handbook requires servicers to create and maintain a quality control program that reviews all aspects of servicing operations, including foreclosure fees and charges.
HSBC has also been an approved servicer of loans held by Fannie Mae. Fannie Mae is a government sponsored enterprise that purchases mortgage loans as part of its mission to promote liquidity in the housing market. Fannie Mae has been under the conservatorship of the Federal Housing Finance Agency since September 2008. As part of its obligations as a loan servicer for Fannie Mae, HSBC was required to create and implement audit and control systems to ensure compliance with Fannie Mae’s requirements. Specifically, as a servicer of Fannie Mae loans, HSBC was required to ensure that all costs submitted to Fannie Mae for reimbursement were reasonable, customary and necessary.
As set forth in the settlement, during certain years, contrary to program requirements and HSBC’s certifications, HSBC failed to implement and maintain the requisite quality controls, failed to oversee the foreclosure-related charges it submitted to FHA and Fannie Mae for reimbursement, and caused millions of dollars in losses to FHA and Fannie Mae as a result.
Specifically, as part of the settlement, HSBC admitted, acknowledged, and accepted responsibility for the following conduct:
- Notwithstanding HUD requirements and HSBC’s annual certifications to FHA, prior to 2011, HSBC failed to create or maintain an adequate FHA quality control program to review the fees and charges submitted by outside counsel and other third-party providers to HSBC, which HSBC then submitted to FHA for reimbursement.
- Because, prior to 2011, HSBC lacked an adequate quality control program to oversee the fees and charges charged by outside counsel and other third party providers handling foreclosure-related services for FHA-insured mortgages, it failed to sufficiently oversee these fees and charges, despite certifying to FHA that it had done so.
- Between May 1, 2009, and December 31, 2010, HSBC failed to create or maintain Fannie Mae audit and control systems sufficient to ensure that the fees and expenses submitted by outside counsel and other third-party providers to HSBC, which HSBC then submitted to Fannie Mae for reimbursement, were reasonable, customary, or necessary.
- Because, between May 1, 2009, and December 31, 2010, it lacked sufficient audit and control systems to oversee the fees and expenses charged by outside counsel and other third party providers handling foreclosure-related services for HSBC as to Fannie Mae mortgages, HSBC failed to sufficiently oversee these fees and expenses, despite being required by Fannie Mae to do so.
In the settlement agreement, HSBC also agreed to comply with all rules applicable to servicers of mortgage loans insured by FHA and to servicers of loans held or securitized by Fannie Mae and the Federal National Mortgage Corporation (“Freddie Mac”). This includes compliance with all rules, requirements, or guidelines regarding implementation and maintenance of quality control programs, oversight of outside counsel and other third-party vendors, and submissions of fees and expenses for reimbursement by FHA, Fannie Mae, and/or Freddie Mac.
In connection with this settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act. The whistleblower suit remains under seal as the Government continues its investigation.
Mr. Bharara thanked the FHFA-OIG and the U.S. Department of Housing and Urban Development for their support and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorneys Cristine Irvin Phillips and Andrew E. Krause are in charge of the case.
Libous Thomas.Indictment
Libous Matthew.IndictmentMan Using False Identity Convicted of International Sex TraffickingRead the Press Release
First time recently enacted extraterritorial jurisdiction provision of our anti-trafficking laws is used to charge sex trafficking occurring in another country
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Wendy A. Bashnan, Special Agent in Charge, Bureau of Diplomatic Security (DS), Miami Field Office, announce the conviction of Damion St. Patrick Baston, 37, of Jamaica. Baston was convicted after a ten day jury trial of the twenty-one counts with which he was charged.
Specifically, Baston was convicted of three counts of sex trafficking a victim by means of force, fraud, and coercion, both in the Southern District of Florida and in multiple countries around the world, including Australia, in violation of Title 18, United States Code, Sections 1591(a)(1) and 1596. Title 18, United States Code, Section 1596 provides for extraterritorial jurisdiction in human trafficking cases; one count of forcible sex trafficking of a victim in the Southern District of Florida; five counts of transporting multiple individuals for prostitution, in violation of Title 18, United States Code, Section 2421; one count of importation of an alien for prostitution, in violation of Title 8, United States Code, Section 1328; one count of use of a passport secured by false statement, in violation of Title 18, United States Code, Section 1542; one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A; and nine counts of money laundering, in violation of Title 18, United States Code, Section 1956. Baston, who is a Jamaican national, was also convicted of illegal reentry of an alien previously ordered removed, in violation of Title 8, United States Code, Section 1326.
Baston is scheduled to be sentenced on September 5, 2014, before U.S. District Judge Cecilia M. Altonaga, who presided over the trial. Baston faces a mandatory minimum penalty of fifteen years in prison and a maximum penalty of life in prison.
According to the indictment, other documents filed in federal court and statements made, Baston victimized seven women in the Middle East, Australia, and the United States. Six victims bravely testified at trial that they had been trafficked for sex beginning in 2011 in various cities including Miami. Baston had been ordered removed from the United States in the late 1990s but stole the identity of an American citizen, which he used to obtain a Florida ID card and U.S. passport in that person’s name. Baston used this false identity for international travel as he continued to recruit and victimize women.
U.S. Attorney Wifredo A. Ferrer stated, “The bravery of the victims in this case is commendable. Their testimony demonstrated that despite the terrible abuse that they suffered from this defendant they are truly survivors. We can never forget that human trafficking is a heinous crime that exploits people; it simply cannot be tolerated. This case was the result of the hard work and coordination of the South Florida Human Trafficking Task Force in Miami, including our federal prosecutors, as well as that of law enforcement officers and non-governmental organizations in Australia and the Dubai Police Department. It is also the first time we have used the recently enacted extraterritorial jurisdiction provision of our anti-trafficking laws to charge someone for sex trafficking that occurred in another country. Working with our dedicated law enforcement partners here and abroad we have ensured that Baston will be unable to continue to exploit more women.”
“This case brought us halfway around the world to ensure justice for the victims,” said Alysa D. Erichs, Special Agent in Charge of HSI Miami. “HSI along with our federal and international law enforcement partners will continue to work diligently to ensure international boundaries do not hinder the enforcement of justice.”
Special Agent in Charge Wendy Bashnan of Diplomatic Security Service’s Miami Field Office noted that “The U.S. Department of State, Diplomatic Security Service is committed to advocating justice for the victims and survivors of human trafficking. This case, and its successful prosecution, points out all the more that the cooperative efforts of, and collaboration between, numerous law enforcement agencies, both internationally and domestically, are significant factors in the purpose of the South Florida Human Trafficking Task Force to dismantle criminal organizations involved in the victimization of individuals in both sexual and labor trafficking.”
Mr. Ferrer commended the investigative efforts of ICE-HSI and DS, as well as the Australian Federal Police. The case is being prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Roy K. Altman.
Human trafficking must stop. To report suspected human trafficking occurring in South Florida, please call the National Human Trafficking Resource Center Hotline at 1-888-373-7888.
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.
Man Sentenced for Damaging Property with A Snow Plow on the Bois Forte Indian ReservationRead the Press Release
MINNEAPOLIS— Recently in federal court in Duluth, a Hibbing man was sentenced for damaging property belonging to the Fortune Bay Casino on the Bois Forte Indian Reservation. United States District Court Judge John R. Tunheim sentenced Shane Alan Simonson, age 26, to 18 months in federal prison on June 27, 2014. Simonson, who was indicted on August 21, 2013, pleaded guilty on December 12, 2013 to one count of Criminal Damage of Property in the First Degree.
In his plea agreement, Simonson admitted to damaging physical property belonging to the Bois Forte Band of Chippewa. Specifically, on the morning of May 9, 2013, Simonson took a large Band-owned snow plow truck, without permission to operate or possess the truck, and drove it into a maintenance shed, causing significant damage. Simonson then used the snow plow to damage a parking lot barricade and gate, as well as the green of the Fortune Bay Casino’s 11th hole.
In addition to the 18-month term of imprisonment, Judge Tunheim ordered Simonson to pay $68,983 in restitution, the full amount of loss suffered by the Fortune Bay Casino and the Bois Forte Band of Chippewa.
This case was the result of an investigation by the Federal Bureau of Investigation and the Bois Forte Police Department. It was prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.Local Paralegal Pleads Guilty to Federal Fraud and False Statement ChargesRead the Press Release
St. Louis, MO – JILLIAN NICHOLS, a local paralegal, pled guilty to charges involving her attempt to defraud a law firm client by falsely representing that the prosecutor on the client’s criminal case had solicited a bribe. Nichols also pled guilty to charges that she lied to the FBI during their investigation of her illegal conduct.
According to court documents and statements made in court at the time of her guilty plea hearing, Nichols worked for a local law firm, assisting one of the firm’s attorneys on his legal cases. She had no formal legal training and was paid hourly. While she was working at the firm, she worked on the defense of a state felony criminal case pending in St. Louis County Circuit Court against a firm client. As part of her duties, she worked closely with the client in investigating and helping prepare his defense, often meeting with him, as well as speaking with him on the telephone and texting, outside the presence of the defense attorney.Nichols left the defense attorney’s firm in September 2013. After Nichols left the law firm she continued to meet with the client and discuss his criminal case with him. Between June and December 2013, Nichols engaged in a scheme to defraud the client by falsely telling him that the St. Louis County assistant prosecutor assigned to his case had solicited a bribe of $10,000 in order to give favorable consideration in his pending criminal case. Further, she falsely represented that she had favorable evidence "planted" on the client’s cell phone in order to support his defense. She also falsely represented that she had paid the forensic expert hired by the defense attorney to analyze his cell phone so that the expert would validate and verify the "planted" evidence. On November 15, 2013, in response to Nichols’ false statements about the $10,000, the client agreed to give her an initial $5,000 in cash for her to pay the bribe to the prosecutor, and then an additional $5,000 after the prosecutor gave him favorable consideration in his pending criminal case. In order to conceal the scheme, she told the client not to tell his defense attorney of their discussions about bribing the prosecutor or planting evidence on his cellular phone.
During the FBI’s investigation of her fraud scheme, Nichols lied repeatedly to Special Agents about her involvement in the scheme when they interviewed her during December 2013.
Nichols, St. Louis, Missouri, pled guilty to one count of wire fraud and one count of making false statements before United States District Court Judge Rodney W. Sippel. Sentencing has been set for September 19, 2014.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Making false statements carries a maximum penalty of 5 years and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation-Public Corruption Task Force, including officers of the St. Louis Metropolitan Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
Local Business Owner Sentenced on Federal Fraud Charges for Second TimeRead the Press Release
St. Louis, MO – RICHARD SADDLER owned Omicron Capital LLC, a local St. Louis company purportedly in the business of assisting customers in refinancing commercial and real estate loans.
According to court documents and statements made in court, between January 1, 2010, and March 31, 2012, Saddler accepted roughly $350,000 from at least nine customers, falsely representing that the money would be used for down payments or appraisals relative to commercial and real estate refinancing deals. Instead, Saddler actually used the money to pay the mortgage on his own home, which was in danger of foreclosure, as well as airline tickets, meals and other personal expenses. Saddler’s victims were located throughout the United States. During 2006, Saddler was convicted and sentenced to 14 months in federal prison relative to a similar fraud scheme also involving his company, Omicron Capital LLC. On this new conviction, he was sentenced today to 33 months in prison and ordered to pay restitution of $335,650.
Saddler, St. Louis County, pled guilty to three felony counts of wire fraud in March and appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney’s Office.
Lilburn Resident Sentenced for Illegal Possession of FirearmsRead the Press Release
ATLANTA - Kevin S. Lahey has been sentenced to serve seven years and three months in prison after pleading guilty to possessing seven firearms while being an unlawful user of controlled substances.
“The significant sentence imposed by the Court serves as a warning that illegal possession of a firearm will be taken seriously by the United States,” said United States Attorney Sally Quillian Yates. “Here, federal and local law enforcement agencies were able to work together to avert what could have been a tragedy by identifying and arresting Kevin Lahey before he could use his weapons to harm others in the community.”
“ATF’s involvement in securing this sentence is a prime example of the successful use of federal laws to confront, engage and eliminate criminal activity by staying on the frontline of preventing violent crime,” said ATF Special Agent in Charge Christopher Shaefer. “Criminals must understand that there are serious repercussions for the illegal possession of firearms and that ATF and our law enforcement partners will contribute all necessary time and effort to ensure criminals are brought to justice.”
According to United States Attorney Yates, the charges and other information presented in court: On February 6, 2013, a man, later identified as Lahey, stole two silencers from a Lawrenceville, Ga., firearms dealer. Three days later, police in Snellville, Ga., arrested Lahey in connection with a shoplifting incident at Wal-Mart where he allegedly attempted to steal two laser sights, a rifle bi-pod stand, and a holster. Lahey resisted arrest when officers attempted to take him into custody. Officers report that, during that scuffle, Lahey dropped a loaded handgun. After his arrest, Lahey was released on bond on February 10, 2013. As a result of this shoplifting arrest, Snellville police were able to identify Lahey as the individual who stole the silencers on February 6, 2013, and they notified the ATF.
A short time later, an ATF task force officer obtained a warrant for Lahey’s arrest and a search warrant for his residence. On February 25, 2013, officers and agents from both the ATF and the Gwinnett County Police Department executed the search warrant. During that search, investigators found one of the stolen silencers attached to a .22 caliber pistol. They later returned and found the second silencer in the crawlspace underneath the home of Lahey’s parents. Neither silencer was registered to Lahey in the National Firearms Registration and Transfer Record, as required by federal law. Also during the search, investigators found multiple firearms - including three rifles and four handguns - in Lahey’s possession. In addition to the firearms, agents seized over 10,000 rounds of ammunition, military-style and hunting knives, marijuana, bongs, drug pipes and other drug paraphernalia, and a body armor fragmentation protective vest.
Lahey, 27, of Lilburn, Ga., has been sentenced to seven years, three months in prison to be followed by three years of supervised release. He was indicted on federal firearms charges on May 21, 2013. On December 2, 2013, Lahey pleaded guilty to the illegal possession of seven firearms while being an unlawful user of controlled substances.This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Leader Sentenced in Alien Smuggling Scheme to Steal Fees from Aliens and Their FamiliesRead the Press Release
McALLEN, Texas – Pedro Rayon-Perez, 28, has been ordered to prison following his conviction for harboring undocumented aliens, announced United States Attorney Kenneth Magidson. The Mexican national previously pleaded guilty as did three others – Mexican national Osiel Castillo, 46, and Roxanna Leal, 26, and Luis Aguilar-Hernandez, 42.
Today, U.S. District Judge Randy Crane, who accepted all the guilty pleas, handed Rayon-Perez a sentence of 96 months in federal prison. As an illegal alien, Rayon-Perez was further sentenced to 21 months for having been found in the United States following previous deportations. Those sentences will be served concurrently for a total sentence of 96 months in federal prison. On June 13, 2013, Judge Crane sentenced Leal to a term of 15 months. Castillo was ordered to serve a 10-month term in addition to a 36-month state prison sentence at his hearing on June 17, 2013. Aguilar-Hernandez is set for sentencing next month. Rayon-Perez, Aguilar-Hernandez and Castillo are expected to face deportation proceedings following their release from prison, while Leal will serve two years of supervised release following completion of her prison term.
The investigation revealed Rayon-Perez concocted a scheme to capture illegal aliens attempting to enter the U.S. and extort money from their families for safe passage further north. Once they had exhausted the extortion payments from families, Rayon-Perez and his co-conspirators planned to abandon the aliens in public places south of the checkpoint. Having victimized one group of smuggled aliens, the group seized five additional aliens on Nov. 12, 2011, as they crossed the river, including a pregnant woman and her husband. The 21-year-old woman was 8.5 months pregnant and had not seen her mother since her mother fled to the U.S. 20 years prior to financially support her family. The couple had intended to surprise her mother upon their arrival in the country.
Instead, Rayon-Perez and his co-conspirators exploited the young couple and three others by using their vulnerability to extort family members and intending to abandon them in the Rio Grande Valley once their scheme was complete. Rayon-Perez successfully defrauded the pregnant woman’s mother by stealing $4,800 – nearly all her savings. Rayon-Perez then double-crossed his co-conspirators by taking the money and abandoning the aliens in the custody of Luis Aguilar-Hernandez and Leal. When Aguilar-Hernandez demanded additional payment from the mother, she sought law enforcement assistance. The San Juan Police Department, assisted by the U.S. Marshals Service, conducted a tactical operation on Nov. 17, 2011, that freed the aliens from the stash house where Aguilar-Hernandez and Leal were harboring them.
In rendering his sentence today, Judge Crane emphasized the unusual nature of the scheme and the unique vulnerability of its victims. Judge Crane lauded law enforcement for its investigation of such aggravating circumstances that placed lives at risk and deprived immigrant families of their limited resources. The court found the sentence appropriate as this type of crime is beyond the “heartland” of typical smuggling cases and represents a unique threat to the community.
Rayon-Perez, Aguilar-Hernandez and Castillo have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Previously released on bond, Leal was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility.
The case was investigated by Homeland Security Investigations with assistance from the San Juan Police Department. Assistant United States Attorneys Grady J. Leupold and Leo J. Leo III are prosecuting the case.
Las Vegas Doctor Pleads Guilty to Drug Conspiracy Charges for Writing Unlawful Oxycodone PrescriptionsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas physician pleaded guilty today to federal drug conspiracy charges for writing prescriptions for oxycodone for persons he did not see or treat, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Victor Bruce M.D., 49, of Las Vegas, pleaded guilty before U.S. District Judge Andrew P. Gordon to one count of conspiracy to distribute a controlled substance, and is scheduled to be sentenced on Oct. 9, 2014, at 9:00 a.m. Bruce faces up to 20 years in prison and a $1 million fine.
“We will continue to identify and prosecute these bad doctors who are using their medical licenses to illegally deal drugs,” said U.S. Attorney Bogden. “We will also recommend the imposition of lengthy sentences of imprisonment because these doctors are using their medical licenses and special skills to commit these drug crimes, fully knowing the harmful impact and effects of these addictive painkillers. This was simply a money making sham, and none of the prescriptions were being issued for a legitimate medical purpose or in the usual course of professional practice.”
According to the guilty plea agreement, Bruce, a Nevada-licensed physician, operates a medical practice known as Swan Lake Medical Center at 3330 South Hualapai Way in Las Vegas. Bruce represents himself to be a pain management specialist and is the only physician working at the practice. Beginning at a date unknown and continuing to around November 2013, Bruce and several co-conspirators, including Robert Wolfe, aka “old man,” Millicent Epino, Dylan DuBois, Jennifer Monge, and Jade Lepoma, conspired to distribute oxycodone. Wolfe would provide Bruce a list of names, and Bruce would write prescriptions for oxycodone for those names and give them to Wolfe. Bruce also created “dummy” medical records for those persons, to make it appear as if a legitimate patient encounter had taken place. On four occasions in June 2013, an undercover law enforcement officer purchased Bruce-written oxycodone prescriptions from Wolfe for $700 each. On each occasion, the undercover provided Wolfe or another co-conspirator with copies of Nevada driver’s licenses bearing the names of customers. Usually within a day, Wolfe or another co-conspirator would then provide the undercover with written prescriptions for oxycodone. Bruce knew he was writing prescriptions for controlled substances to customers he did not treat and who did not need the prescriptions. None of the prescriptions were issued for a legitimate medical purpose or in the usual course of profession practice.
Wolfe and several of the other co-conspirators are also charged in the drug conspiracy. Their cases are currently pending.
This case was investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, North Las Vegas Police Department, and the Nevada Division of Investigations, and prosecuted by Assistant U.S. Attorneys Crane M. Pomerantz and Cristina D. Silva.Lakeland Man Sentenced to Sixteen Years for Production of Child PornographyRead the Press Release
Tampa, FL– U.S. District Court Judge Susan C. Bucklew today sentenced Lawrence H. Dorman a/k/a “Howie” (43, Lakeland) to sixteen years in prison for production of child pornography. In addition to his prison term, Dorman forfeited a blue Ford truck, electronic media, and his interest in real property located at 3127 Gardner Place, in Lakeland, Florida. Dorman pleaded guilty on December 3, 2013.
According to court documents, following an anonymous tip from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Tip line, law enforcement determined that from approximately December 2012 until April 2013, Dorman engaged in a sexual relationship with a sixteen year-old minor female. Throughout the course of that relationship, Dorman supplied the minor with methamphetamine and produced videos of himself engaged in sexual acts with the minor.
On April 3, 2013, agents from HSI Tampa, the Lakeland Police Department and Polk County Sheriff's Office executed a search warrant at Dorman’s residence. During the search of the residence, law enforcement seized and previewed several electronic media items, including a desktop computer containing a video file. An examination of the video depicted Dorman engaged in explicit sexual contact with a female who has been identified as the minor victim in this case.
At the time of the search warrant, law enforcement interviewed Dorman, a/k/a "Howie." Dorman admitted to having sex with the minor victim and creating video recordings of the sex acts. A subsequent interview with the minor victim corroborated the evidence seized in the case. The minor victim also advised that Dorman provided her with marijuana and methamphetamine while at his residence.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Tampa, and the Lakeland Police Department, with assistance from the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
This is another case 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 (CEOS), 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.projectsafechildhood.gov.
Lake Charles Mechanic Pleads Guilty in Obscenity CaseRead the Press Release
LUBBOCK, Texas — A former mechanic from Lake Charles, Louisiana, pleaded guilty in federal court in Lubbock, Texas, today to a federal obscenity charge, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Nicholas W. Schofield, 25, pleaded guilty before U.S. District Judge Sam R. Cummings to one count of attempted transfer of obscene material to a minor. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Schofield was released on bond following his arrest in May 2014 in Lake Charles, and remains on bond pending his sentencing hearing.
According to documents filed in the case, in November 2013, a minor female, “Jane Doe,” from San Angelo, Texas, began texting with a person, whom she did not know, who purported to be an 18-year-old mechanic from Louisiana named “Nick.” Nick was in fact, defendant Schofield. They engaged in numerous texting communications until February 2014, when Jane Doe’s communications were assumed by an undercover special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In the course of his communications with the undercover agent, Schofield sent various sexually explicit images and videos, all the while believing he was communicating with 15-year-old Jane Doe. According to the factual resume filed, the video Schofield sent to the minor is obscene, in that it appeals to a prurient interest in sex, depicts a sexually explicit act and is patently offensive and, taken as a whole, lacks serious literary, artistic, political or scientific value.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI investigated. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
KCK Man Pleads Guilty to Drug-trafficking Conspiracy, Fatal Shooting of Independence ManRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man pleaded guilty in federal court today to his role in a drug-trafficking conspiracy that resulted in the shooting deaths of three persons during a home invasion in Independence, Mo., and the shooting of a 12-year-old boy in the home.
Victims of the fatal shootings were Maria Hernandez, her son, Antonio Hernandez, and her boyfriend, Martin “Tomas” Dominguez-Gregorio. Maria Hernandez’s then-12–year-old son, Miguel Hernandez, was wounded in the shooting.
Raul Soto, also known as “Choch,” 23, of Kansas City, Kan., pleaded guilty before U.S. District Judge Beth Phillips to one count of participating in a conspiracy to possess 50 grams or more of methamphetamine with the intent to distribute, and one count of using a firearm during the drug-trafficking conspiracy, resulting in the death of Antonio Hernandez.
Soto admitted that he and several coconspirators planned to rob Dominguez-Gregorio of as much as three pounds of methamphetamine. They traveled to his apartment in Independence in the early morning hours of Nov. 16, 2012. Soto carried a 9mm pistol. He and a coconspirator entered a shed behind the house and bound and beat two occupants inside the shed, one of whom was Antonio Hernandez. They dragged Antonio Hernandez into the main house. They demanded drugs and money from the occupants, but the victims denied having any drugs or money. Soto admitted that he shot and killed Antonio Hernandez.
Soto also admitted that conspirators removed a motorcycle and a TV from the apartment.
Four of Soto’s co-defendants have pleaded guilty: Paula K. Deardorff, 32, of Kansas City, Mo.; Clayton J. Deardorff, 36, of Columbia, Mo., and Ryan J. Clayton, 31, and Stephanie K. Allinder, 21, addresses unknown.
Under the terms of today’s plea agreement, the government and Soto agree that an appropriate sentence is 27 years in federal prison without parole. A sentencing hearing is scheduled for Nov. 18, 2014.
This case is being prosecuted by Assistant U.S. Attorneys Charles E. Ambrose and Patrick C. Edwards. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kansas City, Mo., Police Department.KC Woman Indicted for $3 Million Fraud Scheme that Forced Employer into BankruptcyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., woman has been indicted by a federal grand jury for a nearly $3 million fraud scheme that forced her employer into bankruptcy.
Irene Marie Brooner, 52, of Kansas City, was charged in an 11-count indictment returned under seal by a federal grand jury in Kansas City on Friday, June 27, 2014. That indictment was unsealed and made public today upon Brooner’s arrest and initial court appearance.
Brooner, a certified public accountant, worked at Galvmet, Inc., a sheet metal fabrication facility and steel service center located in Kansas City, from 2001 until her termination in February 2014. At its peak in 2008, the company had 26 employees and $14 million in annual sales. Galvmet filed for bankruptcy and ceased operations in 2014. At the time of closing, the company had 18 to 20 employees and $10 million in annual sales.
Brooner’s duties as controller included managing payroll, accounts receivable and payable, and maintaining the ledger at Galvmet.
According to the federal indictment, for approximately 10 years (January 2004 until February 2014) Brooner created unauthorized Automated Clearing House (ACH) transactions from Galvmet’s bank account. An ACH is a batch-oriented funds transfer system that includes direct deposits of payroll from companies. Brooner allegedly deposited these funds into her personal bank accounts. Brooner also manipulated ACH transactions to inflate her salary, the indictment says, by increasing her bi-weekly payments without the knowledge or authorization of her employer. She allegedly deposited these funds into her bank accounts.
As a result of Brooner’s fraud scheme, the indictment says, Galvmet lost at least $1,863,914. As a result, Galvmet declared bankruptcy, and was forced to cease operations. To keep the scheme going, Brooner allegedly falsified documents to support Galvmet’s operating loan with Missouri Bank & Trust, causing a loss to the bank of $1.1 million. Brooner allegedly converted the embezzled funds for her personal enrichment. The total loss from Brooner’s alleged fraud scheme was at least $2,963,914.
Brooner allegedly spent the embezzled funds on personal items. According to the indictment, Brooner spent some of the proceeds to remodel, stock, furnish and decorate the basement bar of her new home. The bar, which she called “the Dirty Duck,” includes seating for approximately 15, a granite bar top, four or five tap lines, a refrigeration system, three flat-screen televisions, a smoke machine at the entrance, two couches and stained wainscoting around the room approximately eight feet tall. Mannequins, positioned throughout the bar, are outfitted with authentic U.S. and German uniforms and weaponry from the World War II era, including a Thompson sub-machine gun and multiple M-1 Garands with attached bayonets. Brooner told FBI agents that her husband, a carpenter, remodeled the bar in 2003 and 2004. From 2004 to 2014, Brooner spent $18,383 on alcohol.
According to the indictment, Brooner’s spending included paying off her mortgage for $289,290, buying $81,686 in jewelry, and spending at least $400,392 on clothing and other retail, $97,180 on restaurants, $78,439 on vehicles, $169,389 on furniture and home decor, $62,003 on travel, $38,317 on electronics, $21,346 in ATM withdrawals, $59,571 on spa visits and beauty items, $68,745 on tuition for her children, $18,383 on alcohol, $104,060 to her children, $216,377 in assorted checks under $500, $64,557 in donations, $254,168 in other credit cards, and by purchasing other items.
Brooner purchased a 2004 Lexus R33 sport utility vehicle, the indictment says, on which she made 64 payments totaling $51,813. Brooner also bought 69 pieces of jewelry and accessories from Meierotto’s Midwest Jewelers totaling approximately $29,701 and 82 pieces of jewelry and accessories from Tivol Jewelers totaling approximately $51,984.
The federal indictment charges Brooner with three counts of bank fraud, five counts of wire fraud and three counts of money laundering.
Wire Fraud Scheme
Brooner allegedly sent approximately 148 unauthorized ACH transactions from Galvmet’s bank account to her personal checking account, resulting in $1,144,113 in loss to Galvmet. In addition, Brooner allegedly set up a second payroll payment that was sent via ACH to her personal savings account. Brooner allegedly sent about 133 unauthorized ACH payments to her savings account, resulting in $560,230 in loss to Galvmet. She allegedly transferred the funds to her checking account and spent the money on personal items. Brooner also manipulated the payroll account to increase her net pay on approximately 108 payroll checks, the indictment says, resulting in loss to Galvmet of $159,570.
Bank Fraud Scheme
Brooner prepared borrowing base certificates on behalf of Galvmet for the purpose of obtaining and maintaining a corporate line of credit for business operations from Missouri Bank & Trust. A corporate line of credit, issued to a business entity by a financial institution, allows the business to draw on the credit when needed, rather than receiving the entire amount at one time.
Brooner allegedly falsified borrowing base certificates. According to the indictment, the statements contained false entries concerning the accounts receivable and inventory numbers. The statements allegedly included customers shown as outstanding who, in fact, had already sent payments to Galvmet. By failing to post the payments received, the indictment says, Brooner made the accounts receivable appear to be greater in value than they really were. Brooner also allegedly misrepresented Galvmet’s inventory on the borrowing base certificate. Brooner reported inventory even if it had not been sent in-transit to Galvmet, the indictment says, which inflated the amounts on the balances to ensure Galvmet would continue receiving loan proceeds on the line of credit. This allowed the company to continue operations, the indictment says, which enabled Brooner to both conceal her embezzlement and continue to embezzle more money.
Forfeiture Allegation
The indictment also contains a forfeiture allegation, which would require Brooner to forfeit to the government any property derived from proceeds of the alleged offenses, including her personal residence, a 2004 Lexus, numerous assorted jewelry and a money judgment of at least $2,963,914.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI.Justice Department and Howard University to Host Program Celebrating 50th Anniversary of Civil Rights Act of 1964Read the Press Release
The Department of Justice announced today that it will be co-hosting the historic program and celebration, “The 50 th Anniversary of the Civil Rights Act of 1964: Preserving Progress, Charting the Future,” with Howard University on July 15, 2014. Signed into law by President Lyndon B. Johnson on July 2, 1964, the groundbreaking act outlawed discriminatory voting requirements and segregation in schools, employment and places of public accommodation. Attorney General Eric Holder has made protecting civil rights a top priority of his administration of the Department of Justice.
The long road to passage of the Civil Rights Act of 1964 was paved with the footsteps of countless ordinary Americans and well-known civil rights leaders who marched, held sit-ins, staged boycotts and led freedom rides to end segregation and discrimination. The call for comprehensive civil rights legislation gained momentum in 1963, as civil rights activists continued to organize peaceful demonstrations throughout the country. After hundreds of nonviolent protestors were met with police violence and arrest in Birmingham, Alabama, President John F. Kennedy delivered a nationally televised speech voicing his support for comprehensive civil rights legislation. After President Kennedy’s assassination in November 1963, President Lyndon B. Johnson made a commitment to pursue passage of civil rights legislation. And after the longest debate in senate history, the Civil Rights Act was finally passed and signed into law, becoming the first of many legislative victories over the next 50 years that have been critical tools for protecting civil rights.
The speakers and participants at the 50th anniversary program at Howard University will honor the strides that have been made in the journey for equal rights, and look to the work that remains to fully realize that promise. In addition to Howard University Interim President Dr. Wayne A.I. Frederick and the keynote address by Attorney General Holder, the program will include remarks from Secretary of Education Arne Duncan and Secretary of Labor Tom Perez, who lead two of the Department of Justice’s key government partners in enforcing the Civil Rights Act. Ambassador Andrew Young, former leader of the Southern Christian Leadership Conference will also deliver remarks. Charlayne Hunter-Gault will moderate a roundtable discussion titled “The Impact of the Civil Rights Act of 1964,” featuring civil rights movement veterans and scholars including Howard University School of Law Associate Dean for Academic Affairs Lisa A. Crooms-Robinson, Julian Bond, Joan Trumpauer Mulholland, Todd Purdum and Helen Zia. Congresswoman Eleanor Holmes Norton will deliver the event’s closing remarks.
The event will include a temporary display of original pages from the Civil Rights Act of 1964, on loan by the United States Archives. The display will be available for viewing prior to the program beginning at 9 a.m. in the lower level of Cramton Auditorium.
A limited number of tickets for the celebration are available to the public, which will also include performances by the Howard University Choir and the Gay Men’s Chorus of Washington, D.C., as well as readings and videos commemorating the act. Tickets are available, starting today, at the Cramton Auditorium Box Office on the Campus of Howard University on a first come, first served basis. Media registration details will be provided at a later date.
Justice Department Sues Los Angeles Pharmaceutical Company over Feminine Health Drug ProductsRead the Press Release
The Department of Justice today announced the filing of a civil lawsuit against Laclede Inc. and its president, Michael A. Pellico, seeking to stop the distribution of over-the-counter vaginal drug products that the company makes and sells nationwide.
The lawsuit, filed on June 25, 2014, in the United States District Court for the Central District of California, seeks a permanent injunction against the defendants for the sale and distribution of four drugs: Luvena Prebiotic Vaginal Moisturizer and Lubricant; Luvena Prebiotic Enhanced Personal Lubricant; Luvena Prebiotic Feminine Wipes; and Luvena Prebiotic Daily Therapeutic Wash (Luvena Products).
According to the allegations in the complaint, the sale and distribution of the Luvena Products, which are manufactured by the company in its Rancho Dominguez, California, facility, violate various provisions of the federal Food, Drug, and Cosmetic Act.
The Act generally prohibits the distribution into interstate commerce of any drug for which the U.S. Food and Drug Administration (FDA) has not given approval. Moreover, the Act prohibits the distribution of drugs that are misbranded, including drugs that fail to comply with FDA labeling regulations for over the counter drugs.
According to the complaint, since 2010, Laclede has sold one or more of the Luvena Products without the required FDA approval. Furthermore, the complaint charges that the company has made unapproved claims that the products treat or prevent vaginal infections, including claims that have appeared on the company’s web sites, Facebook page, and Twitter feed.
The complaint alleges that since 2010, the FDA has repeatedly warned the defendants ¯ including through letters, emails, inspections and meetings ¯ that they must obtain FDA approval before distributing one or more of the Luvena Products. Nevertheless, according to the complaint, the products were being distributed illegally as recently as March 2014.
The lawsuit was filed by the Justice Department Civil Division’s Consumer Protection Branch, in Washington, D.C., and is being handled by David A. Frank. Assistance for this matter is being provided by Yen Hoang of the FDA’s Office of Chief Counsel in Silver Spring, Maryland.Related Materials:
Complaint
Jury Trial Ends with Admission of Guilt by Convicted Felon Charged in String of Louisville Area Armed RobberiesRead the Press Release
– Troy Lamont Gaines pleads guilty to 11 counts of armed robbery
– Charges stem from Project RecoilLOUISVILLE, Ky. – The second day of testimony in the jury trial of Troy Lamont Gaines, Jr. ended today, with the defendant’s admission of guilt to the armed robbery of eleven area convenient stores and fast food restaurants in December, 2012 and January, 2013, announced David J. Hale, United States Attorney for the Western District of Kentucky. The charges stemmed from “Project Recoil” – a comprehensive anti-violent crime strategy announced last summer, which emphasizes collaboration among federal, state and local law enforcement and prosecutorial agencies to more effectively investigate and prosecute violent criminals in Louisville.
Gaines, age 23 of Louisville, and co-defendant Shaundrell Robinson, age 34 of Louisville, were charged in a 22 count federal indictment on April 2, 2013. The defendants have prior felony convictions and were charged with eleven armed robberies between December 5, 2012 and January 3, 2013 in Metro Louisville and Radcliffe, Kentucky. During one robbery, a shot was fired by Gaines during a struggle with a customer. Gaines was arrested by Louisville Metro Police (LMPD) on January 5, 2013, immediately after robbing a Speedway gas station located 8325 Preston Highway.
The United States was prepared to present evidence during the trial, that according to court records included: video surveillance of the armed robberies while in progress, a police dash-cam video showing Gaines arrest while still wearing a ski mask, a Lorcin semi-automatic pistol, magazine, five rounds of ammunition removed from the magazine and two shell casings found on the sidewalk outside the China Express restaurant that was held up on December 19, 2012, an audio clip of Gaines’ statement to LMPD, video still photos signed by Gaines, a black ski mask and a loaded 9mm pistol seized from Gaines at the time of his arrest.
Gaines pleaded guilty to 11 counts of robbery affecting interstate commerce and two counts of brandishing a firearm during a crime of violence. The charged armed robberies included the Super Stop Food Mart, located at 7303 Preston Highway, on or about December 5, 2012, and on or about December 14, 2012. The armed robbery of the Meijer store, located at 4600 South Hurstbourne Parkway in Louisville, or about December 15, 2012. The armed robbery of JR Liquors 2 store, located at 13018 Dixie Highway, in Louisville, on or about December 19, 2012. The armed robbery of the Circle P Shell Food Mart, located at 1500 North Dixie Highway in Radcliff, Kentucky, on or about December 19, 2012. The armed robbery of the China Express restaurant, located at 4946 Poplar Level Road in Louisville, on or about December 20, 2012. The armed robbery of the Berry Petroleum store, located at 1871 Berry Boulevard in Louisville on or about December 27, 2012. The armed robbery of Thornton=s store, located at 12412 LaGrange Road in Louisville, on or about December 31, 2012.The armed robbery of the Speedway store, located at 3030 Taylor Blvd. in Louisville, on or about December 31, 2012. The armed robbery of White Castle restaurant, located at 2711 Fern Valley Road in Louisville, on or about January 3, 2013. The armed robbery of Speedway store, located at 8325 Preston Highway in Louisville, on or about January 5, 2013.
If convicted of all charges in the Indictment at trial, Gaines faced a total minimum sentence of 257 years’ imprisonment and up to 5 years of supervised release per charge and a fine of $250,000 per charge. A sentencing date has not been schedule, however Gaines is expected to be sentenced by Senior Judge Thomas B. Russell in Louisville.
Co-defendant Shaundrell Robinson is scheduled for trial in U.S. District Court, before Senior Judge Russell, on August 18, 2014.
This case is being prosecuted by Assistant United States Attorney Robert Bonar and is being investigated by the Louisville Metro Police Robbery Unit.
Indiana Man Sentenced for Damaging Property and Equipment at Planned ParenthoodRead the Press Release
Benjamin David Curell, 28, of Ellettsville, Indiana, pleaded guilty in federal court today to one count of violating the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to damage the property of a reproductive health services facility because of the services offered there. The plea stems from an incident that occurred during the early morning hours on April 11, 2013, when Curell broke into the Bloomington, Indiana, Planned Parenthood Clinic and caused extensive damage to the clinic building and its equipment.
Curell was sentenced by Magistrate Judge Mark Dinsmore to three years probation. Curell was also ordered to pay more than $22,000 in restitution. Curell’s federal sentence is to run concurrently with a sentence he received in state court on a felony burglary charge stemming from the same incident.
At the time of his arrest, Curell admitted to police that he broke into the clinic and damaged equipment with a hatchet because the clinic performed abortion services, and because Curell wanted to shut down the clinic.
“The Justice Department will not tolerate violent interference with the lawful work of reproductive health clinics,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Department of Justice remains committed to protecting our communities from such violent acts and will continue to aggressively prosecute these acts.”
The case was investigated by the Bloomington Resident Agency of the FBI and the Bloomington Police Department. The case was prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division and Assistant U.S. Attorney Sharon Jackson for the Southern District of Indiana.