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26 June 2014
Life Support Ambulance Company and Owners Charged in Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – Life Support Corporation, its owners, Nazariy Kmet, 35, of Jamison, PA, and Bogdan Kmet, 30, of Warminster, PA, and a company manager, Rostislav Kmet, 26, of Philadelphia, were charged in a 12-count indictment, unsealed today, alleging their involvement in health care fraud, wire fraud, paying kickbacks, and aiding and abetting, announced United States Attorney Zane David Memeger. The company and one owner also were charged with making false statements in connection with health care matters and money laundering. The company is located in the Feasterville-Trevose area and was incorporated in 2010.
The indictment alleges that defendant Life Support and its owners and a manager operated an ambulance company that transported patients who were able to walk and could travel safely by means other than ambulance and who therefore were not eligible for ambulance transportation under Medicare requirements. It is alleged that the defendants or others acting on their behalf falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants and their employees knew that the patients could be transported safely by other means and that many of them were able to walk. It is also alleged that the defendants were involved in paying kickbacks to patients so that the patients chose to be transported by Life Support ambulances. The defendants allegedly billed for the ambulance services as if those services were medically necessary and, as a result of the allegedly fraudulent billing, the Medicare program paid more than $1.9 million for this inappropriate method of transportation.If convicted, Nazariy Kmet, Bogdan Kmet, and Rostislav Kmet each face substantial terms of imprisonment, three years of supervised release, a fine in excess of $3.8 million, mandatory restitution estimated at over $1.9 million, forfeiture of assets, and a special assessment. If convicted, Life Support Corporation faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations. All defendants could be excluded from participating in federal health care programs if convicted.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
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, 215-861-8525Leader of Bloods Street Gang Convicted of Racketeering, Including Three MurdersRead the Press Release
Earlier today, following a month-long trial, Ronald Herron, also known as “Ra Diggs,” was convicted of all counts, including racketeering and three homicides, arising from his leadership of a violent set of the Bloods Street Gang that operated in the Gowanus Housing Development in Brooklyn. The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and William J. Bratton, Commissioner, New York City Police Department.
“Ronald Herron and his gang of thugs preyed on their community while glorifying their criminal lifestyle,” stated United States Attorney Lynch. “He styled himself a rap artist, but the jury’s verdict makes clear who Herron really is, a drug dealer and murderer who sought power through fear and intimidation.” Ms. Lynch expressed her thanks to the agents and investigators from the FBI and NYPD who worked for years to dismantle this violent gang and bring Herron to justice.
Since 1998, Herron committed numerous crimes of violence in support of his drug trafficking operation in and around the Gowanus Houses and Wyckoff Gardens, two New York City public housing communities located in the Boerum Hill section of Brooklyn. In 2001, Herron murdered Frederick Brooks. Herron was acquitted of that murder in state court after witnesses refused to testify because they were threatened by Herron and his associates. After being released from state custody and consolidating his control over the drug trade in Gowanus and Wyckoff Gardens, Herron murdered Richard Russo in 2008 and Victor Zapata in 2009.
Herron boasted about his exploits in songs and videos in which he identified himself as the leader of the “Murderous Mad Dogs” set of the Bloods Street Gang and claimed that he had previously “beat a body.” The jury rejected Herron’s claim that the videos were simply exaggerations and that he was an aspiring rap artist rather than a murderer.
Herron’s conviction follows dozens of successful prosecutions over the past ten years conducted by the U.S. Attorney’s Office, along with the FBI and NYPD, of violent gang members and drug dealers from the Gowanus Housing Development. When he is sentenced, Herron faces a mandatory term of life imprisonment without the possibility of parole.
The government’s case was prosecuted by Assistant United States Attorneys Shreve Ariail, Sam Nitze, and Rena Paul.
The Defendant:
RONALD HERRON, also known as “Ra Diggs”
Age: 32
E.D.N.Y. Docket No. 10 CR 615 (NGG)
Las Cruces Man Sentenced to Sixty-Three Months for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Jesus Coronado, 33, of Las Cruces, N.M., was sentenced in Las Cruces federal court this afternoon to 63 months in prison for being a felon in possession of a firearm and ammunition. Coronado will be on supervised release for three years after he completes his prison sentence.
Coronado was arrested on April 26, 2013, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. Coronado subsequently was charged in a two-count indictment with unlawfully possessing a firearm and ammunition in Doña Ana County, N.M., on Oct. 26, 2011 and again on Dec. 14, 2012. At the time, Coronado was prohibited from possessing firearms or ammunition because he previously had been convicted of receiving and transferring stolen property in 2002; receiving stolen property in 2004 and 2008; attempting to commit residential burglary in 2010; and residential burglary in 2011, in the 3rd Judicial District Court for the State of New Mexico.On Jan. 21, 2014, Coronado pled guilty to both counts of the indictment and admitted that he unlawfully possessed a 12 gauge shotgun on Oct. 26, 2011, and a 9mm handgun on Dec. 14, 2012.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco and Firearms, and Explosives and the Doña Ana County Sheriff’s Office, with assistance from the 3rd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Las Cruces Man Sentenced to Five Years in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Lee Wayne Weathers, 41, of Las Cruces, N.M., was sentenced in federal court this morning to 60 months in federal prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Weathers was arrested on Nov. 13, 2013, on an indictment charging him with a methamphetamine trafficking offense. A heroin trafficking charge was added when the indictment was superseded in Jan. 2014. According to the superseding indictment, Weathers unlawfully possessed both methamphetamine and heroin with intent to distribute in Doña Ana County, N.M., on Oct. 24, 2013.
Weathers entered a guilty plea to the methamphetamine trafficking charge on Feb. 11, 2014, and admitted possessing six grams of pure methamphetamine on Oct. 24, 2013, in Doña Ana County. He also admitted that he intended to distribute the drugs for profit.
This case was investigated by the Las Cruces office of the FBI, from the Doña Ana County Sheriff’s Office and Doña Ana/Las Cruces Metro Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorneys Maria Y. Armijo and Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office.L.A.-Area ‘Notarios’ Indicted in Scheme That Filed Fraudulent ‘Green Card’ Applications and Cost Some Immigrants Their Life SavingsRead the Press Release
LOS ANGELES – A Los Angeles-area immigration consultant and one of her employees were arrested this morning after being named in an indictment that alleges they filed fraudulent “green card” applications on behalf of immigrants who were married to U.S. citizens, some of whom paid more than $20,000 for their services.
Claudia Arreola, 35, of El Monte, who owns California Immigration Services (CIS), and her business associate, Leticia Gutierrez, 35, Pico Rivera, were taken into custody this morning by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The two women were charged in a six-count indictment returned Tuesday by a federal grand jury.
“Fraud scams run by so-called notarios threaten the integrity of the immigration process and offer false hope to desperate people,” said United States Attorney André Birotte Jr. “The two women in this case victimized immigrants for years by giving the false impression that they could fix immigration problems.”
According to the indictment, the defendants submitted paperwork to U.S. Citizenship and Immigration Services (USCIS) on behalf of six foreign nationals who were seeking to obtain “green cards” – permanent resident status – based on legitimate marriages to U.S. citizens. The applications filed by the defendants allegedly included fraudulent I-94 cards indicating that the immigrants, who originally came to the U.S. illegally, entered lawfully on visitors’ visas.
The immigrant victims were originally quoted fees of approximately $7,000, but the defendants ultimately charged them as much as $24,000. To pay the debt, some of the couples borrowed against their credit cards or obtained loans from family and friends. Subsequently, investigators say when several of the foreign nationals sought refunds after they failed to receive “green cards,” the defendants allegedly threatened to contact authorities and have the aliens deported.
“Tragically, as is often true in such scams, at least some of the victims in this case could have obtained green cards legally,” said Claude Arnold, special agent in charge for HSI Los Angeles. “Instead, they placed their trust and, in many cases, their life savings in the hands of individuals who were focused on enriching themselves, rather than on helping hopeful immigrants realize the American dream.”
Investigators say the similarity between the name and acronym for Arreola’s consulting business and USCIS, the Department of Homeland Security agency that adjudicates applications for immigration benefits, was no coincidence. Evidence developed during the investigation showed that money orders and cashier’s checks made out to USCIS had been deposited in bank accounts controlled by defendants.
The probe targeting Arreola’s CIS began in 2011 after HSI received leads from USCIS’s Fraud Detection and National Security directorate involving several suspicious benefit applications. While only six instances of fraud are charged in the case indictment, authorities believe the scheme is responsible for dozens of fraudulent benefit applications.
“Arreola victimized immigrants for personal gain by pretending to be associated with USCIS,” said USCIS FDNS Western Regional Assistant Director Ken Takeda. “We are committed to upholding the integrity of our immigration system by combatting these deceptive practices. USCIS strongly encourages the public to seek legal advice or representation from attorneys or accredited representatives.”
Arreola and Gutierrez are expected to be arraigned on the indictment this afternoon in federal court. If convicted, both defendants face a statutory maximum penalty of 60 years in federal prison.
In 2003, the Attorney General of the State of California filed suit against Arreola and Gutierrez, among others, alleging that defendants had engaged in an illegal scheme to provide immigration services in violation of California law. Both Arreola and Gutierrez entered into settlement agreements in which they promised not to engage in illegal immigration consulting services in violation of California law, specifically agreeing not to promise certain benefits or results in immigration cases. In 2006, the defendants began operating California Immigration Services and engaging in the conduct alleged in the indictment.
This case is part of an ongoing, nationwide effort by the Department of Justice and the Department of Homeland Security to target unscrupulous immigration practitioners and combat the unauthorized practice of immigration law. The initiative relies on federal, state and local resources to combat the widespread problem of unauthorized practice of immigration law. Other partners involved in the Los Angeles effort include the Federal Trade Commission, the Los Angeles County Department of Consumer Affairs, the State Bar of California, the Los Angeles County District Attorney’s Office, the Los Angeles City Attorney’s Office, and the Attorney General’s Office of the State of California. For more information on the initiative, please visit http://www.uscis.gov/news/national-initiative-combat-immigration-services-scams.
HSI and USCIS believe there are additional victims in this case who have not yet been identified. The Los Angeles County Department of Consumer Affairs has a toll-free number that victims can call to get information or seek assistance: 1-800-593-8222.
Release No. 14-079
Justice Department and State of Texas Require Martin Marietta to Divest a Quarry and Two Rail Yards to Proceed with Acquisition of Texas Industries<br />Read the Press Release
The Department of Justice announced today that it will require Martin Marietta Materials Inc. to divest one Oklahoma quarry and two Texas rail yards in order to proceed with its proposed $2.7 billion acquisition of Texas Industries Inc. The department said that, without the divestiture, the proposed acquisition likely would result in higher prices for purchasers of aggregate – crushed stone produced at quarries or mines – in parts of the Dallas metropolitan area.
The department's Antitrust Division and the state of Texas filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department's competitive concerns alleged in the lawsuit.
"Today’s proposed settlement will help ensure that aggregate purchasers in parts of the Dallas metropolitan area will continue to receive the benefits of vigorous competition," said Bill Baer, Assistant Attorney General in charge of the department's Antitrust Division. “Without the divestiture obtained by the Antitrust Division, customers would have likely faced higher prices as a result of this acquisition."
Aggregate is used in a variety of applications, such as road construction, and for the production of ready mix concrete and asphalt.
The department said that the proposed merger would have likely resulted in increased prices for customers handling Texas Department of Transportation projects in parts of the Dallas metropolitan area. The Texas Department of Transportation – like many other state Departments of Transportation – sets specifications for the type of aggregate approved for use in those projects. In Dallas County and parts of the surrounding area, Martin Marietta and Texas Industries are two of the only three suppliers of Texas Department of Transportation-approved aggregate.
Under the terms of the proposed consent decree, Martin Marietta must divest its North Troy aggregate quarry in Mill Creek, Oklahoma, its rail yard in Dallas, and its rail yard in Frisco, Texas. All of these assets predominantly serve parts of the Dallas metropolitan area. Under the proposed settlement, the department's Antitrust Division must approve the buyer of the divested assets.
Martin Marietta Materials Inc. is incorporated in North Carolina with its headquarters in Raleigh, North Carolina. Martin Marietta produces, distributes and/or markets aggregate for the construction industry in 29 states and it produces aggregate in Nova Scotia, Canada, and the Bahamas for distribution and sale at numerous terminals and yards along the East Coast of the United States. In 2013, Martin Marietta had net sales of $2.1 billion.
Texas Industries Inc. is incorporated in Delaware with its headquarters in Dallas. Texas Industries produces, distributes and/or markets aggregate in five states – Texas, Oklahoma, Louisiana, Arkansas and California. Texas Industries also produces asphalt concrete, ready mix concrete and cement. In 2013, Texas Industries had net sales of $800 million.
As required by the Tunney Act, the proposed consent decree, along with the department's competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed decree during a 60-day comment period to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Johnstown Heroin Dealer Sentenced to A Year and A Day in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court to twelve months and one day in prison and three years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on, Fred Claycomb, Jr., 51.
According to information presented to the court, on Jan. 17, 2013, Claycomb, Jr. distributed less than 100 grams of heroin.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Claycomb, Jr.
James Amos Parker Sentenced to 120 Months Years in Prison for Attempted Enticement of A Minor for SexRead the Press Release
KNOXVILLE, Tenn. – On June 26, 2014, James Amos Parker, 47, of Alcoa, Tenn., was sentenced to serve 120 months in prison by the Honorable Danny C. Reeves, U.S. District Judge. Parker pleaded guilty in February 2014 to a federal grand jury indictment charging him with attempting to entice a minor to engage in sexual activity using a computer in interstate commerce.
Parker engaged in online discussions via the internet with undercover law enforcement officers in which he expressed a desire to engage in sexual relations with someone he believed to be 12 years old. Parker was arrested by undercover law enforcement officers when he showed up at a pre-arranged meeting place to have sex with a person whom he believed to be a minor.
As part of the sentence imposed, Parker was also placed on supervised release for a period of 20 years and will be required to register as a sex offender wherever he lives, works, or attends school upon his release from prison.
The indictment and subsequent conviction of Amos were the result of an investigation conducted by the Federal Bureau of Investigation and the Knoxville Police Department - Internet Crimes Against Children Unit. Assistant U.S. Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jackson Residents Sentenced for Stolen Identity Refund FraudRead the Press Release
Jackson, Miss - Rickey McDuffey, of Jackson, was sentenced in federal court today to fifty-six months in federal prison followed by three years of supervised release for conspiracy to commit stolen identity refund fraud, announced U.S. Attorney Gregory K. Davis and Acting Special Agent in Charge Jerome R. McDuffie with IRS - Criminal Investigation.
McDuffy’s co-conspirator, Alicia Haslett, of Jackson, was sentenced on June 19, 2014, to fifty-five months in federal prison followed by three years of supervised release. Both McDuffey and Haslett were also ordered to pay $306,962.17 in restitution and to forfeit that same amount to the government.
McDuffy and Haslett, who were married at the time, conspired to steal personal identifying information which they used to file false federal income tax returns from 2011 through 2013. They both pled guilty to conspiracy and aggravated identity theft.
Jerome R. McDuffie , Acting Special Agent in Charge, IRS – Criminal Investigation, stated: “It is my hope that the sentences imposed on Alicia Haslett and Rickey McDuffey make it clear that identity theft related tax fraud is a serious crime and will result in serious consequences. The ring of fraudsters and identity thieves led by Haslett and McDuffey has been successfully disbanded. On behalf of IRS-CI, I would like to thank the Office of the United States Attorney for their aggressive prosecution of cases involving Stolen Identity Refund Fraud.”If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Investment Adviser Charged with Stealing Client FundsRead the Press Release
Boston – A Pennsylvania woman affiliated with a Massachusetts-based broker dealer was indicted today in U.S. District Court in Boston on charges that she orchestrated a multi-million dollar investment fraud scheme.
Patricia S. Miller, 67, was charged with five counts of wire fraud.
The indictment alleges that Miller used her position as a trusted financial adviser, as well as her association with the Massachusetts broker dealer, to obtain money from clients for purported investments never made on the behalf of clients. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her investment clubs would be placed in fixed-income notes and other investments. Miller was able to obtain over $2.5 million from more than 20 clients for these purported investment clubs. Instead of investing the money as promised, however, she misappropriated client funds for her own use.
If convicted, Miller faces a maximum sentence under the statute for each count of wire fraud of 20 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. U.S. Attorney Ortiz also expressed appreciation for the help and cooperation her office received from the United States Attorney’s Office for the Western District of Pennsylvania and the Federal Bureau of Investigation, Pittsburgh Field Division. The case is being prosecuted by Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.
Those who believe that they are a victim of the crimes alleged against Patricia S. Miller should contact the U.S. Attorney’s Office for the District of Massachusetts at [email protected]. Identified victims will receive notification through an automated victim notification system. Those who have not received notification, and believe they should be included as a victim, should contact the Massachusetts U.S. Attorney’s Office at [email protected].
Pittsburgh-Area Victims:
Residents of the Pittsburgh, Pa. area, who believe they are a victim, should contact the victim witness unit at 412-644-3500. Pittsburgh victims may also find information at http://www.justice.gov/usao/paw/.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force, chaired by Attorney General Eric Holder, includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
Investment Adviser Charged with Stealing Client FundsRead the Press Release
BOSTON – A Pennsylvania woman affiliated with a Massachusetts-based broker dealer was indicted today in U.S. District Court in Boston on charges that she orchestrated a multi-million dollar investment fraud scheme.
Patricia S. Miller, 67, was charged with five counts of wire fraud.
The indictment alleges that Miller used her position as a trusted financial adviser, as well as her association with the Massachusetts broker dealer, to obtain money from clients for purported investments never made on the behalf of clients. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her investment clubs would be placed in fixed-income notes and other investments. Miller was able to obtain over $2.5 million from more than 20 clients for these purported investment clubs. Instead of investing the money as promised, however, she misappropriated client funds for her own use.
If convicted, Miller faces a maximum sentence under the statute for each count of wire fraud of 20 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. U.S. Attorney Ortiz also expressed appreciation for the help and cooperation her office received from the United States Attorney’s Office for the Western District of Pennsylvania and the Federal Bureau of Investigation, Pittsburgh Field Division. The case is being prosecuted by Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.
Those who believe that they are a victim of the crimes alleged against Patricia S. Miller should contact the U.S. Attorney’s Office for the District of Massachusetts at [email protected]. Information regarding the case can be found at http://www.justice.gov/usao/ma/news/Miller/index.html. Identified victims will receive notification through an automated victim notification system. Those who have not received notification, and believe they should be included as a victim, should contact the Massachusetts U.S. Attorney’s Office at [email protected].
Pittsburgh-Area Victims:
Residents of the Pittsburgh, Pa. area, who believe they are a victim, should contact the victim witness unit at 412-644-3500. Pittsburgh victims may also find information at http://www.justice.gov/usao/paw/.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force, chaired by Attorney General Eric Holder, includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the FFETF, please visit: www.stopfraud.gov.
Indictment: Wichita Woman's Business Was Front for ProstitutionRead the Press Release
WICHITA, KAN. – A federal indictment unsealed here today alleges a Wichita woman ran a prostitution business with as many as 20 escorts who accepted credit cards and offered discount coupons to loyal customers, U.S. Attorney Barry Grissom said.
Saundra J. Lacy, 60, Wichita, Kan., is charged with 27 counts of racketeering in promotion of prostitution. The indictment alleges Lacy operated an escort service called Jessie’s Primetime Entertainment at 304 S. Laura.
Lacy, whose business was licensed by the City of Wichita as an escort service, required escorts to carry condoms and to engage in sexual acts if a customer requested. She typically charged customers $160 for half an hour with an escort and $185 for an hour. She typically paid an escort $75 to $85 for a half hour date and $90 to $100 for an hour. Escorts who had a current escort license from the City of Wichita were paid more than those who had no license.
She also distributed discount coupons to escorts that entitled customers to a $10 discount at their next date and kept track of the serial numbers on the coupons in a coupon book.
She accepted payment for escorts’ services by cash, credit card and, occasionally, by check. She accepted MasterCard, Visa and Discover Card. Charges would appear as “massage therapy” provided by “Prime Time.” Credit card deposits into the Prime Time Account at Bank of America totaled approximately $39,189 in 2009, $25,601 in 2010, $40,851 in 2011and $32,770 from Jan. 1, 2012 to Aug. 27, 2012.
If convicted, she faces a maximum penalty five years in federal prison and a fine up to $250,000 on each count. The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Idaho Man Pleads Guilty to Distributing Child PornographyRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Charles Keith Rolfe (60, Heyburn, Idaho) today pleaded guilty to distributing child pornography. Rolfe faces a mandatory minimum of 5 years, up to 20 years in federal prison. He also faces a mandatory minimum of 5 years, up to a lifetime of supervision, after his release, and will be required to register under the Sex Offender Registration and Notification Act.
According to the plea agreement, on February 28, 2014, Rolfe communicated via a Mobile Messaging Application (“MMA”) on his cellular phone, with an individual with whom he believed he had previously traded child pornography (Subject #1). However, agents with Homeland Security Investigations had assumed Subject #1’s online identity and began communicating with Rolfe in an undercover capacity, after Subject #1’s arrest in October 2013. Rolfe sent the undercover agents at least three videos containing images of child pornography via the MMA on his cellular phone. During a later search of Rolfe’s home, agents found almost 900 images of child pornography stored on a cell phone.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.justice.gov/psc.
Hartford Grocery Store Owner Charged with Food Stamp FraudRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging SALIH KAYA, 53, of West Hartford, with one count of food stamp fraud. KAYA is the owner and operator of Green Apple Market, located at 264 Farmington Avenue in Hartford.
The indictment was returned on June 24, 2014, and KAYA was arrested yesterday. Following his arrest, he appeared before U.S. Magistrate Judge Thomas P. Smith in Hartford and was released on a $25,000 bond.
The federal food stamp program, known as the Supplemental Nutrition and Assistance Program (“SNAP”), is administered by the USDA’s Food and Nutrition Service (“FNS”) and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefit Transfer (“EBT”) card. SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to the indictment and statements made in court, KAYA has owned Green Apple Market since it opened on July 1, 2008. Between July 2011 and May 2014, it is alleged that KAYA illegally exchanged food stamps for cash and other ineligible items with customers at the store. The FNS estimates that a reasonable sales figure for the store, given the size, amenities and location of the store, should be no more than $60,000 per year. During this approximately three-year period, sales for the store totaled approximately $2.8 million.
If convicted of the charge, KAYA faces a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Agriculture, Office of Inspector General and the Office of the Chief State’s Attorney. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Greece Woman Pleads Guilty to Supplying Guns used in Christmas Eve ShootingRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dawn Nguyen, 25, of Greece, N.Y., pleaded guilty before U.S. District Court Judge David G. Larimer, to knowingly making a false statement in connection with the purchase of firearms; selling and disposing of firearms to William Spengler, a known felon; and possession of firearms while being an unlawful user of marijuana.
“But for the actions of this defendant in illegally putting two guns into the hands of a known dangerous felon, the families of Michael Chiapperini and Tomasz Kaczowka might have their son, father and husband still with them.” “While today’s convictions cannot possibly bring these brave men back, or relieve the pain of the families and those wounded in the Christmas Eve attack, this defendant will in fact shortly receive her just punishment for all the harm she caused.”
The charges involve the purchase and disposition of the firearms that were used in the Christmas Eve shooting in December 2012 that resulted in the deaths of Webster Police Lieutenant Michael Chiapperini and West Webster Firefighter Tomasz Kaczowka, and seriously injured Firefighters Theodore Scardino and Joseph Hostetter. Each charge carries a maximum penalty of 10 years in prison, a fine of $250,000.00, or both.
Assistant U.S. Attorney Jennifer Noto, who is handling the case, stated that Nguyen made false statements during the purchase of a Bushmaster semiautomatic rifle and a Mossberg 12 gauge shotgun at Gander Mountain in Henrietta, N.Y., in order to acquire those firearms on behalf of William Spengler, Jr. The defendant gave those firearms to Spengler with the knowledge that Spengler was a convicted felon. In addition, Nguyen unlawfully possessed the firearms at a time when she was an unlawful user of marijuana.
The plea is the culmination of an investigation on the part of the Webster Police Department, under the direction of Chief Gerald Pickering, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Division, the New York State Police, under the direction of Major Scott Crozier, and the Monroe County Sheriff’s Department, under the direction of Sheriff Patrick O’Flynn.
Sentencing is scheduled for August 28, 2014, at 10:00 a.m. before Judge Larimer.Frackville Man Sentenced to 15 Months in Prison for Cocaine PossessionRead the Press Release
JOHNSTOWN, Pa. - A resident of Frackville, Pa., has been sentenced in federal court to fifteen months in prison and three years supervised release on his conviction of possession with the intent to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Walter Johnson, 29.
According to information presented to the court, on Apr. 4, 2013, Johnson possessed with the intent to distribute less than 500 grams of cocaine.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Johnstown Police Department for the investigation leading to the successful prosecution of Johnson.
Four Ordered to Prison in Firearms Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Four people residing in Houston have been ordered to prison for their roles in a conspiracy to traffic dozens of AK-47 variant rifles from the Houston area to Mexico, announced United States Attorney Kenneth Magidson along with Robert Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Mexican nationals Abel Lopez, 35, and Arturo Garcia, 31; and Roberto Santana Mears, 22, and Martha Gonzales, 41, all pleaded guilty at varying times earlier this year as did Javier Resendez, 29, Angel Aquino-Pineda, 28, and Mary Bel Deanda, 39. All reside in Houston.
Today, U.S. District Judge Nelva Gonzales Ramos handed Lopez, who was also convicted of being an illegal alien in possession of a firearm, to a total of 180 months in federal prison, while Mears, Garcia and Gonzalez were ordered to serve respective terms of 36, 46 and 36 months. In handing down the sentence, Judge Ramos admonished Lopez that he was just fueling the violence in his very own country. Earlier this month, Aquino-Pineda was ordered to serve 100 months in federal prison. Resendez and Bel Deanda will be sentenced July 18, 2014.
In 2013, the Kingsville Specialized Crimes and Narcotics Task Force conducted a traffic stop on a truck driven by Aquino-Pineda in Kingsville and located 35 AK-47 variant rifles and $26,000 concealed in a false compartment. Seven of the rifles had obliterated serial numbers. Aquino-Pineda admitted his role was to transport the firearms from Houston to McAllen. The firearms would then be transported to Mexico.
ATF agents traced the firearms to Houston purchasers Deanda, Gonzales and Mears, who admitted they were “straw purchasers” for Resendez. Resendez indicated Garcia recruited him to purchase firearms for Lopez and that the firearms would be taken to Mexico. Resendez then recruited Deanda and Gonzales to “straw purchase” the firearms on his behalf. Mears admitted he was also a “straw purchaser” for Lopez.
On Jan. 24, 2014, agents executed a warrant at Lopez’s residence and located two Norinco, Model MAK90, 7,62x39mm AK-47 style rifles; one Baretta, Model 3032, Tomcat .32 caliber pistol; and $955. Lopez told agents that Garcia and Mears had purchased several firearms for him and that the firearms were to be sent to Mexico.
ATF investigated with the assistance of the Kingsville Specialized Crimes and Narcotics Task Force. Assistant U.S. Attorneys Hugo R. Martinez and Jeffrey D. Preston are prosecuting the case.
Former Office Manager Sentenced to Three Years in Prison for Embezzling More Than $3.6 Million-Defendant Used Money for Jewelry, Vacations, Parties, Other Personal Expenses-Read the Press Release
WASHINGTON - Pamela J. Beard, 52, of Bowie, Md., was sentenced today to three years in prison on a federal mail fraud charge stemming from the embezzlement of more than $3.6 million from her former employer, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Beard pled guilty in January 2014 in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Ketanji Brown Jackson. Upon completion of her prison term, Beard will be placed on three years of supervised release. She also must pay $3,688,649 in criminal forfeiture and restitution.
According to the government's evidence, from approximately March 1997 through February 2013, Beard was employed as a billing clerk and the office manager at the Office of Orthopaedic Medicine & Surgery, in Washington, DC. Her duties included paying vendors and creditors, as well as making payments on the business’s corporate credit card accounts. She had access to the office’s financial information and payment systems, and, as a result, could generate checks on the office’s corporate checking account. She also was authorized to use a corporate credit card to pay for business-related expenses. Beard was not authorized to use the office’s bank accounts or corporate credit card to pay for personal expenses.
From May 1, 2006, through June 26, 2013, Beard embezzled $3,688,649 from the office. She used the proceeds to pay for, among other things: a home mortgage; vehicles; a timeshare with Disney Vacation Development, Inc.; expenses associated with her husband’s landscaping business; vacations, including a trip to the Bellagio Hotel in Las Vegas; a personal trainer; jewelry, and parties, including Beard’s 50th birthday party at the Sunset Room at National Harbor, in or around February 2012, for which she spent about $18,703 on ice sculptures.
Beard embezzled the money in a variety of ways:
From May 1, 2006, through Jan. 22, 2013, Beard generated more than 100 corporate checks, totaling $1,289,736, on her employer’s checking account. Each check was made payable to Bank of America. Once the checks were generated by Beard through the office’s payment system, she provided them to a physician, who signed them on the office’s behalf. Because the checks were payable to Bank of America, the physician believed that they were intended to pay a corporate credit card account at Bank of America. Beard, however, deposited them at various Bank of America branches to make payments, without authorization, on Bank of America credit card accounts for Beard, her husband, and her husband’s landscaping business.
From Oct. 6, 2006, through June 26, 2013, Beard generated and mailed additional checks drawn on the office’s corporate checking account to pay personal credit card accounts for herself and her husband at American Express. She also made on-line payments from the corporate checking account to American Express. Beard conducted these financial transactions, without authorization, in the total amount of $2,207,882.
Finally, from April 21, 2006, through Dec. 30, 2012, Beard used the office’s corporate credit card without authorization, to purchase goods and services for her own personal use in the total amount of $191,030.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the investigative work of special agents and analysts of the FBI’s Washington Field Office and Senior Inspector Wayne Rollock of the U.S. Marshals Service. He also praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Corinne Kleinman, Rosalind Pressley, and Nicole Wattelet; Assistant U.S. Attorney Catherine K. Connelly, who handled forfeiture issues; and former Assistant U.S. Attorney David Johnson, and Assistant U.S. Attorney Bryan Seeley, who prosecuted the case.
14-152Former NYPD Detective Pleads Guilty to Conspiracy and Tax FraudRead the Press Release
Earlier today, Rafael Astacio, a former detective with the New York City Police Department, pleaded guilty in Central Islip federal court to conspiracy to commit interstate transportation of stolen property and filing a fraudulent tax return. When sentenced, Astacio faces up to eight years in prison, a forfeiture money judgment of $200,000, and a fine of up to $500,000.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Kathleen M. Rice, Nassau County District Attorney, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD), Shantelle P. Kitchen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS), and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“For three years, Astacio and his band of thieves invaded people’s homes and businesses and stole millions of dollars. What makes Astacio’s crimes even more disgraceful is that he committed them while he was a NYPD detective who took an oath to protect and serve our community,” stated United States Attorney Lynch. “Today’s plea demonstrates that no one is above the rule of law. I want to thank my law enforcement partners for their hard work and unwavering commitment to ensure that Astacio was brought to justice.”
According to the indictment, court filings,and statements at today’s proceeding, between 2009 and 2012, Astacio was a member of a burglary crew that committed approximately three dozen commercial burglaries and ten residential burglaries in the Eastern District of New York stealing approximately $10,000,000 in cash and property. The crew used traditional burglary tools, such as blow torches, crowbars, wire cutters, and sledge hammers, as well as modern technology, including cell phone jammers and police scanners, to commit those burglaries. In addition, they often conducted surveillance of their burglary victims to determine when the victims would be out of their homes and businesses. On at least one occasion, they even installed a tracking device on a victim’s car to assist in that endeavor.
On April 29, 2010, Astacio’s co-conspirators burglarized a business in Plainview, New York, entering that commercial establishment while Astacio and another co-conspirator monitored a police scanner and acted as lookouts. Astacio’s co-conspirators spent approximately three and a half hours in the business and stole more than 45,000 pairs of Under Armour, Hobie, and other sunglasses that were worth approximately $3,000,000. After the burglary, Astacio and his co-conspirators transported the stolen property across state lines and sold some of the sunglasses on the Internet. In another instance, Astacio and his crew stole approximately $2,000,000 in cash from a plastic surgeon’s office located in Nassau County.
The government’s case is being prosecuted by Assistant United States Attorney Christopher C. Caffarone and Special Assistant United States Attorney Rick Whelan.
The Defendant:
RAFAEL ASTACIO
Age: 41
Copiague, New York
E.D.N.Y. Docket No. 13-CR-640 (JFB)
Former Indian Casino Cashier Sentenced to 37 Months in Prison for Embezzlement and Failing to File A Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – Kimberly Dawn Logsdon, of Chickasha, Oklahoma, was sentenced today to 37 months in prison for embezzling from an Indian casino and failing to file a tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The Silver Buffalo Casino was an Indian gaming establishment in Anadarko, Oklahoma, operated by the Apache Tribe of Oklahoma. Kimberly Logsdon was employed as a cashier clerk at the casino from July 25, 2007, until her termination on December 3, 2008. During five days of trial testimony in December 2013, a jury heard evidence that from January of 2008 through November of 2008, Ms. Logsdon double-counted certain winning cashout vouchers presented by casino customers for payment and kept a total of $174,472.56. She duplicated payments by treating certain vouchers both as scanned by the computer system and as unscanned vouchers that were not entered into the casino’s computer system. The evidence also showed that she knowingly failed to file a federal income tax return for 2008, in spite of the fact that she and her husband had at least $144,800.00 in gross gambling winnings between May and December of 2008.
Today United States District Judge Timothy D. DeGiusti sentenced Ms. Logsdon to 37 months in prison, to be followed by two years of supervised release, and restitution of $174,472.56. The sentence was based in part on the court’s finding that Ms. Logsdon testified falsely at trial about what she was doing on video surveillance footage that showed incriminating hand movements.
The jury also convicted William Michael Logsdon of failing to file a tax return. His sentencing date has not yet been determined.
This case is the result of an investigation by the Bureau of Indian Affairs and IRS Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Scott E. Williams and Travis D. Smith.
Former Florida Resident Pleads Guilty to Attempted Sex Trafficking in EcuadorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Patrick R. Minga (50, formerly of Cape Coral) pleaded guilty yesterday to attempting to induce and facilitate, for his own financial gain, the travel of an individual from Brevard County, Florida, to Quito, Ecuador, so that the individual could engage in illicit sexual conduct with minor girls. Minga faces a maximum penalty of 30 years in federal prison. His sentencing hearing has been scheduled for November 20, 2014.
During the change of plea hearing, Minga admitted that he advertised, on Craigslist, a sex tourism business in Ecuador that could facilitate lodging, transportation, meals, and unlimited access to females for a fee. An undercover task force agent observed the ad and contacted Minga. Over the course of several months, Minga tried to induce and arrange the travel of the undercover agent from Florida to Quito, where Minga advised that he could provide sexual encounters with minors as young as 13 and 14 years of age.
On March 2, 2014, Minga traveled from Ecuador to the United States, where he was arrested by agents in Huntsville, Alabama. Minga will remain detained pending further proceedings.
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Former Employee of Local Fkg Oil Sentenced for Wire Fraud in A Scheme to Defraud EmployerRead the Press Release
Follow @SDILNewsKevin D. Dowell, 37, of St. Louis, Missouri, was sentenced to 366 days in prison, to be followed by three years of supervised release as a result of his conviction for wire fraud in a scheme to defraud and embezzle from the FKG Oil Company, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Additionally, Dowell was ordered to pay restitution totaling $113,984.
Dowell was the Manager of the Human Resources Department of FKG Oil Company in Belleville, Illinois. During the time period mid-2010 to April 2013, he falsified mileage expense reports, used a company credit card for personal expenses, and transferred funds electronically from the company’s bank account directly to his personal bank account in Missouri. Dowell fraudulently obtained the funds to support his relationship with an exotic dancer.
The fraud was reported to the Belleville Police Department and a full investigation was performed by a third party firm. At completion of the full investigation, the case was turned over to the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Falsifying expense reports is a crime. To report suspicious activity to the F.B.I. call (217) 522-9675 or email [email protected]. To report public corruption, call (877) 884-7633 or (877) U-TIP-OFF. To report health care fraud, call (888) 557-9503.
Former Delray Beach Resident Convicted in Third Case Involving Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Jeffrey Emil Groover, 53, formerly of Delray Beach, was convicted by a jury of all six counts with which he was charged. Specifically, Groover was convicted of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, three counts of bank fraud, in violation of Title 18, United States Code, Section 1344, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Sentencing is scheduled for September 3, 2014, before U.S. District Judge Dimitrouleas. At sentencing, Groover faces a maximum sentence of 20 years in prison for conspiracy to commit bank fraud, 20 years in prison for each count of bank fraud, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charges.
According to evidence presented at trial and court documents, Groover used the personal identifying information (PII) of an individual without her knowledge or consent to open a checking account and obtain a debit/VISA card at TD Bank. The defendant forged the name on the signature card for the account and, when asked for identification, produced a fraudulent, photo-switched Florida Driver's License with the individual’s correct information, but the defendant's photograph. Approximately one week after opening the account at TD Bank, the defendant again used the individual’s PII to open a checking account at PNC Bank. When asked to provide two forms of identification for the account, the defendant used the fraudulent debit/VISA card obtained from TD Bank, and the fraudulent, photo-switched Florida Driver's License. Groover directed the PNC banker to set up overdraft protection for the fraudulent checking account using the individual’s existing home equity line of credit. Between September 27, 2013 and September 30, 2013, the defendant and his co-conspirators withdrew and attempted to withdraw approximately $170,000 from the individual’s home equity line of credit by cashing a $20,000 check drawn directly on the line of credit.
In a separate case involving an identity theft tax refund fraud scheme, Groover was sentenced on April 18, 2014, before U.S. District Judge Robin Rosenbaum to 60 months in prison, followed by three years of supervised release, and was ordered to pay $350,373.86 in restitution. Groover previously pled guilty to the indictment in this case, which charged him with making and presenting false claims to the Internal Revenue Service, in violation of Title 18, United States Code, Section 287.
In sentencing the defendant to a sentence significantly above the sentencing guideline range in this previous case, the judge noted the defendant’s extensive criminal history, his arrest for a new identity theft crime while on bond awaiting sentencing, and the large number of victims who suffered, some for years, as a result of his repeated commission of identity theft crimes. The judge also noted that while serving a 46 month sentence for identity theft in 2004, the defendant provided testimony to the Senate Special Committee on Aging, in which he explained how easy it was to commit identity theft using the internet and how his 46 month sentence would cause him to never commit such crimes again. Since the 46 month sentence had not deterred Groover from committing new crimes, the judge imposed a 60 month sentence.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Adrienne Rabinowitz and Alexandra Hui.
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.
Former Cumberland Man Sentenced to 10 Years for Bank Fraud and Tax EvasionRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Walter
Scott Fox, 56, formerly of Cumberland, Maine, and now of Canton, Georgia, was sentenced in
U.S. District Court by Judge D. Brock Hornby to 10 years in prison and 3 years of supervised release for bank fraud and tax evasion. He was also ordered to pay over $9,500,000 in restitution. At the conclusion of the sentencing, he was remanded into the custody of the United
States Marshals Service. Fox pleaded guilty on February 4, 2014.According to court documents, from 1995 until 2011, Fox used his position as a loan officer at Casco Northern Bank and at its successor, KeyBank, to originate or authorize over
$14,000,000 in fraudulent loans and lines of credit using the identities of four real individuals, without their knowledge or consent. He used over $5,800,000 of the fraudulent proceeds to keep the loans current and prevent the detection of his scheme. He used almost $8,200,000 for personal expenses including to pay for his children’s educations and family vacations, and to support his business, “The Boathouse.” Fox failed to report receiving any of this income to the
Internal Revenue Service (“IRS”) causing a tax loss of over $1,300,000 between 2006 and 2011.The scheme was discovered in 2012 when KeyBank denied an increase for one of the credit lines because it did not fit the model for its community development loans. With no funds available to make payments and keep the scheme afloat, all the fraudulent loans became delinquent by August, 2012. Fox abruptly resigned his position at KeyBank on September 7, 2012 when a supervisor became concerned about the delinquent loans and made inquiries about the status of his loan portfolio.
Judge Hornby observed that the sentence was needed to send a message, promote respect for the law and provide just punishment because Fox used the proceeds of his fraud to fund a lifestyle that most people cannot afford.
The case was investigated by the Federal Bureau of Investigation and IRS - Criminal
Investigations.Former Connecticut Resident Sentenced to Prison for Mortgage Fraud SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GARI-MARK THOMAS, 39, of Michigan, formerly of Norwalk, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for conspiring to defraud the Federal Housing Authority through a mortgage fraud scheme. THOMAS pleaded guilty to the charge on February 4, 2014.
According to court documents and statements made in court, in March 2008, THOMAS, while serving as a loan officer for Suntrust Mortgage, assisted his girlfriend in obtaining a residential real estate loan to purchase a property at 510 E. Main Street in Stratford by submitting fraudulent information to the lender and the Federal Housing Authority (FHA). The fraudulent information included a false claim that his girlfriend was employed with a tax and accounting company, false paystubs, false IRS tax forms and phony bank statements to make it appear that she had a bank account with assets in it, when in fact she had no such assets.
Based on the fraudulent loan documentation, the loan was issued by the lender and insured by the FHA. HOMAS’ girlfriend ultimately defaulted on the loan, causing a loss of $184,538.37 to the FHA.
Judge Bryant ordered THOMAS to pay full restitution.
This matter was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by the U.S. Attorney’s Office Financial Fraud and Public Corruption Unit.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Board Member of National Charity Charged in $4 Million Fraud and Money Laundering SchemeRead the Press Release
PORTLAND, Ore. – Amanda Marshall, U. S. Attorney for the District of Oregon, today announced that William R. Peters, 63, of Glen Burnie, Maryland, a former member of the Board of Directors of National Relief Charities (NRC), has been charged with conspiring to defraud NRC of $4 million and conspiring to commit money laundering violations with the proceeds of the fraud scheme. Brian J. Brown, a former president of NRC, was charged with the same federal crimes in October 2013. Brown’s case is pending in federal court in Portland, Oregon.
The indictment alleges that in late 2005, when Brown stepped down as the president of NRC, a national charity dedicated to improving the quality of life for Native Americans, he established a nonprofit company called Charity One, Inc., dba American Indian Education Endowment Fund. Peters and Brown then allegedly induced NRC to fund Charity One, Inc. with $4 million from 2006 through 2009. Brown allegedly represented these funds would be used to fund educational scholarships for Native Americans. Peters allegedly used his position as a member of the Board of Directors of NRC to cause NRC to execute endowment agreements with Charity One, Inc. in which NRC gave Charity One, Inc. $1 million a year for four years. Peters and Brown allegedly used the entire $4 million for their personal benefit.
“Anyone who defrauds a charity for their personal gain should expect to be caught and prosecuted. This conduct harms the charity, its donors, and, most importantly, the intended recipients of the fraudulently diverted funds,” said U.S. Attorney Marshall.
This case is being investigated by the Federal Bureau of Investigation and the Criminal Investigation Division of the Internal Revenue Service. Assistant U.S. Attorney Seth D. Uram is handling the prosecution of the case.
Former Bank Employee in Crawford County Stole More Than $2.5 Million from BankRead the Press Release
WICHITA, KAN. – A former employee of a bank in Crawford County has pleaded guilty to stealing more than $2.5 million from the bank, U.S. Attorney Barry Grissom said.
Cynthia Bright, 55, Girard, Kan., pleaded guilty Wednesday to one count of bank fraud. In her plea, she admitted she stole the money over a period of 10 years while working as operations supervisor at Girard National Bank.
Bright used several different methods to steal the money. In some cases, she wrote checks on her own accounts and altered electronic bank records so the checks would clear but the money would not be taken out of her account. In other cases she removed paper checks and altered records to post checks to other accounts. She diverted funds from the bank’s accounts to her own accounts, and she wrote large counter checks to conceal losses.
Grissom commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
She is set for sentencing Sept. 15. Both parties have agreed to recommend a sentence of 70 months in federal prison and an order of restitution for the full amount of the thefts.Former Augusta Minister Sentenced to More Than 12 Years in Prison for Check-Cashing SchemeRead the Press Release
AUGUSTA, GA – Jesse Jefferson Flournoy, II, 37, of Augusta, Georgia was sentenced earlier this month to 148 months in prison by United States District Court Judge J. Randal Hall for his role in a check-cashing scheme that involved cashing over 80 United States Treasury and University Bank checks for a total loss of $450,465.52. This sentencing followed a lengthy jury trial in July 2013, where Flournoy was convicted of one count of Conspiracy to Defraud the United States, thirteen counts of Theft of Public Money, and eight counts of Aggravated Identity Theft.
Evidence presented at trial and during sentencing showed that between September 2011 and January 2012, Flournoy played a vital role in a check-cashing scheme that involved cashing checks which were either generated as the result of filing a fraudulent tax return or were stolen from the United States mail before reaching the intended payee. Flournoy would obtain the checks from co-conspirators, forge the individual payees’ names on each check, create a bogus power of attorney form, in part by forging the individuals’ signatures, recruit an accomplice to actually cash the check, and then send money back to his co-conspirators after taking his “cut” from each check. In addition, the evidence showed a number of fraudulent tax refunds were electronically deposited directly into bank accounts controlled by Flournoy. The entire time Flournoy participated in this fraudulent scheme, he also served as the leader of the Transformation Empowerment Christian Center in Augusta, Georgia.
United States Attorney Edward J. Tarver said, “Schemes dealing with fraudulent tax refunds are not aimed at stealing from the ‘faceless victim’ of the government. The funds in the United States Treasury represent the money earned and paid by every American citizen. As such, this Office will continue to vigorously investigate and prosecute crimes involving theft from the American people.”
In addition to the ordered term of imprisonment, Flournoy was ordered to pay $450,465.52 in restitution. After Flournoy is released from prison, he will serve three years of supervised release. Regarding the length of the prison sentence, Mr. Tarver noted that parole has been abolished in the federal system.
FBI Special Agent Paul Kubala, IRS-CI Special Agent Roger Garland, and Secret Service agent Tom Norris conducted the investigation which led to the indictment. Assistant United States Attorney C. Troy Clark and former Assistant United States Attorney David M. Stewart prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Florence Couple Plead Guilty to Producing Child PornographyRead the Press Release
BIRMINGHAM -- A Florence couple pleaded guilty today in federal court to multiple charges that they exploited a minor child in their custody to produce child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.PATRICIA ALLANA AYERS, 34, and her husband, MATTHEW DAVID AYERS, 42, entered their guilty pleas before U.S. District Judge L. Scott Coogler on charges related to 53 pornographic images of the child produced between the summer of 2010 and January 2013.
Patricia Ayers pleaded guilty to 53 counts of producing child pornography, and Matthew Ayers pleaded guilty to 25 counts of production. Their sentencing dates have not been set.
The Ayers could face a maximum penalty of 30 years in prison and a $250,000 fine, per count, for producing child pornography.
The couple has remained in jail in Lauderdale County since early last year on state child pornography, rape and sexual abuse charges.
Anyone with information about the potential sexual exploitation of children should report it to law enforcement immediately. The National Center for Missing and Exploited Children operates the Cyber Tip Line in partnership with the FBI and other federal authorities. If you have information, call the tip line at 1-800-THE-LOST.
The FBI investigated this case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
Five Defendants Appear in Federal Court on Drugs and Firearms Charges After Police Seize in Excess of 26 Pounds of Methamphetamine and Five FirearmsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----- United States Attorney William N. Nettles announced today that a federal magistrate judge arraigned Rory Severin, age 45, William Scott Powell, age 40, Chad Edward Moore, age 42, Marie Higgins, age 36, and Angel Miranda Luna, age 24, on federal narcotics and firearms charges.
A federal grand jury has charged these individuals with conspiring to possess with the intent to distribute and to distribute in excess of 500 grams of a mixture or substance containing methamphetamine. Chad Edward Moore also has been charged with felon in possession of a firearm, and Powell, Moore, Higgins, and Miranda Luna have been charged with possessing firearms in furtherance of a drug trafficking charge.
The investigation culminated on two dates: April 22, 2014, and May 5, 2014. On April 22, 2014, law enforcement officers arrested Severin, Powell, Moore, and Higgins, and seized in excess of two pounds of methamphetamine and four firearms. On May 5, 2014, law enforcement officers conducted a traffic stop on a vehicle which Luna Miranda was driving in the Atlanta, Georgia, area. After arresting Luna Miranda, officers seized approximately 26 pounds of methamphetamine, $90,000 in cash, and a firearm Luna Miranda was using in his residence to protect the drugs and drug proceeds.
If convicted on the charges in the indictment, the defendants face 10 years to life imprisonment. The Department of Homeland Security/Homeland Security Investigations, the Douglasville, Georgia, Police Department, the Pickens County Sheriff’s Office, the South Carolina Law Enforcement Division, the Bureau of Alcohol, Tobacco, and Firearms, and the Oconee County Sheriff’s Office investigated the case. Andy Moorman with the U.S. Attorney=s Office will be prosecuting.#####
Final Defendant Sentenced in Dodge County Area Drug Trafficking OrganizationRead the Press Release
DUBLIN, GA – Dwight Eady, 31, of Milan, Georgia was sentenced earlier this month by Senior United States District Court Judge Dudley Bowen to 70 months in prison for his role in a cocaine trafficking organization operating out of Dodge, Telfair, and Laurens Counties, Georgia, and elsewhere. Eady was the twenty-first and final defendant to be sentenced for his role in the drug ring. A list of others convicted and sentenced in the case is included below.
Evidence presented during numerous guilty plea and sentencing hearings revealed that Nico Harswell, a co-defendant of Eady, supplied multi-kilogram quantities of cocaine to various individuals in the Telfair, Laurens, and Dodge County area between 2010 and 2012. Several federal wiretaps were obtained which helped identify the members of the drug conspiracy and led to the seizure of a significant amount of cocaine and over $60,000 in cash. Additionally, several vehicles were seized and forfeited.
United States Attorney Edward J. Tarver stated, “This case provides another example of the outstanding results achieved when federal and state law enforcements partner together to investigate and prosecute large-scale drug trafficking organizations. If you push poison in our communities, you can expect to spend years in a federal prison.”
The case was investigated by the DEA, the Oconee Drug Task Force, the Telfair County Sheriff’s Office, and the Laurens County Sheriff’s Office, with assistance from the Georgia State Patrol and the United States Marshal’s Service. Assistant United States Attorneys Charlie Bourne and Greg Gilluly prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
The defendants convicted and sentenced in the case are:
Nico Harswell, 40, of Rentz, Georgia
210 months / 5years supervised release / $2500 fineRonald Harell, 37, of Helena, Georgia
188 months / 5 years supervised release / $2000 fineJames Austin, 31, of McRae, Georgia
151 months / 5 years supervised release / $1500 fineStephin White, 52, of McRae, Georgia
124 months / 5 years supervised release / $1500 fine / 40 hours community serviceDeandre Graham, 28, of McRae, Georgia
38 months / 5 years supervised release / $1000 fine / 40 hours community serviceKemo Pauldo, 35, of Dublin, Georgia
70 months / 5 years supervised release / $2000 fine / 40 hours community serviceMelvin Hughes, 34, of McRae, Georgia
168 months / 5 years supervised release / $2000 fineBrandon Woods, 23, of Dublin, Georgia
90 months / 5 years supervised release / $3000 fineJames Harswell, 33, of Dublin, Georgia
64 months / 5 years supervised release / $2000 fineShonta Burney, 39, of Rentz, Georgia
37 months / 5 years supervised release / $2000 fineKendya Hughes, 33, of McRae, Georgia
32 months / 1 year supervised release / $200 special assessmentCynthia Reynolds, 34, of Jacksonville, Georgia
18 months / 1 year supervised releaseJimmy Tucker, 43, of Laurens County, Georgia
30 months / 5 years supervised release / $1000 fine / 40 hours community serviceAntonio Smiley, 35, of Hinesville, Georgia
120 months / 5 years supervised release / $2000 fineJohnny Fabian, 60, of Ludowici, Georgia
45 months / 5 years supervised release for each count / $1000 fine / $200 special assessmentGary Duty, 39, of Dublin, Georgia
48 months / 1 year supervised release / $200 special assessmentTron Baker, 34, of Hinesville, Georgia
27 months / 5 years supervised release / $1500 fine / 40 hours community serviceRobert Nico Perry, 33, of Glenwood, Georgia
36 months / 1 year supervised releaseChad Mitchell, 33, of Eastman, Georgia
180 months / 5 years supervised release / $3500 fineGary Wesley, 40, of Helena, Georgia
57 months / 5 years supervised release / $1000 fineFelon in Possession of A Firearm Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Nathan Edward Prim, 32, of Foley, was sentenced in federal court for his possession of a firearm after he had been convicted of a felony offense. Prim was also sentenced on a second count, which charged that he was illegally in possession of a firearm with an obliterated serial number. Prim had entered guilty pleas to both charges in March of 2014.
At the sentencing hearing on June 26, United States District Court Kristi Dubose heard testimony from a Mobile police officer about the facts surrounding Prim’s arrest. The officer testified that Prim attempted to pull the gun from his waistband when he physically restrained Prim and a second officer disarmed him. The judge imposed a sentence of 160 months imprisonment in Prim’s case. Prim will pay $200 in special assessments, and following his release from imprisonment, he will serve three years on supervised release.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
Federal Jury Convicts A Metroplex Chiropractor and Former Union Representative on Health Care Fraud and Related ChargesRead the Press Release
FORT WORTH, Texas — Following a three-day trial before U.S. District Judge Reed C. O’Connor, a federal jury has convicted Dr. Abbas Zahedi of Carrolton, Texas, and Reginald Guy of Arlington, Texas, on all counts of a superseding indictment charging each with one count of conspiracy to commit health care fraud, five counts of health care fraud and four counts of aggravated identity theft. Following the verdicts, both defendants were remanded to the custody of the U.S. Marshal. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Zahedi, 49, a chiropractor, owned and operated DFW Rehab & Diagnostics (DFW) out of the office of Metroplex DFW Sports Rehab Center (Metroplex) in Arlington and later at a stand-alone location in Grand Prairie, Texas, until it closed in September 2012.
Guy, 44, worked at a factory in Arlington, and from approximately 2003 until 2009, he was a union representative. His employment was terminated in November 2009.
The government presented evidence at trial that from 2009 to 2012, Dr. Zahedi and Reginald Guy, along with four coconspirators, James Sterns, Tina Perkins, Donna Harris and Gregory Wattron, conspired to submit health insurance claims to Blue Cross Blue Shield of Texas (BCBS) and other insurers for services not rendered. Sterns, Perkins, Harris and Wattron have pleaded guilty to their respective roles in the conspiracy and are scheduled to be sentenced by Judge O’Connor on September 15, 2014.
Guy used as his role as a union representative at the factory to recruit and refer his co-workers to Metroplex, where, in exchange for monthly kickbacks, work excuse notes and a variety of prizes, they agreed to allow their insurance company to be billed for services they did not receive.
Sterns, 50, of DeSoto, Texas, owned and operated Metroplex. In early 2010, Sterns hired Guy, whose employment at had been terminated, to be the office manager of Metroplex. Guy served as Metroplex’s office manager from 2010 to mid-2011, shortly before the clinic closed. In March or April 2011, Dr. Zahedi hired Guy as a consultant for DFW at its Grand Prairie location. After Guy began working for Dr. Zahedi, Guy helped transfer patients and patient information from Metroplex to Dr. Zahedi at DFW, where the fraudulent referral and billing scheme continued.
Tina Perkins, 43, of Dallas, was responsible for submitting claims to insurance companies and also worked as the biller and office consultant for Dr. Zahedi at DFW. Perkins’ sister-in-law, Donna Harris, 43 of Haltom City, Texas, permitted Metroplex, in exchange for cash payments, to submit claims to BCBS for services purportedly performed by Dr. Zahedi and Wattron, when in fact she received no treatment. In early 2011, Dr. Zahedi hired Harris to be the office manager at DFW’s location in Grand Prairie. As such, she continued to allow Dr. Zahedi to submit claims under her name to BCBS for services that were not performed. Harris also permitted Dr. Zahedi to submit claims to BCBS for Harris’ immediate and extended family members for services they did not receive. Wattron, 56, of Grapevine, Texas, was an occupational therapist at Metroplex from approximately 2008 until July 2011 and at DFW from June 2010 through August 2011. Wattron agreed to allow Sterns and Dr. Zahedi bill insurance companies for occupational therapy that he did not perform.
Dr. Zahedi and Guy face a maximum statutory penalty of 10 years in federal prison and a $250,000 fine for the conspiracy count and each of the substantive health care fraud counts. Each count of aggravated identity theft carries a maximum statutory penalty of two years. They are scheduled to be sentenced on November 17, 2014.
The FBI and the Office of Personnel Management - Office of Inspector General investigated. Assistant U.S. Attorney Nancy Larson and Special Assistant U.S. Attorney Douglas Brasher are prosecuting the case.
Federal Inmate Convicted of AssaultRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
CLARKSBURG, WV – Edward C. Crow, age 44, an inmate at the United States Penitentiary in Hazelton, West Virginia, was convicted this week for the assault of a correctional officer after a two day federal jury trial before U.S. District Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, for the Northern District of West Virginia made the announcement.
Crow was convicted by a federal jury this week on one count of assaulting a correctional officer resulting in bodily injury; one count of assault with a dangerous weapon with intent to do bodily harm; and one count of possession of a weapon.Crow was found by the jury to have used a spear that he had manufactured himself to stab a correctional officer through the food slot on his cell door. The officer suffered a puncture wound to his lower abdomen and received medical treatment at a local hospital.
Crow, who is in custody pending sentencing, is a career offender and faces an additional twenty years in prison.This case was prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Special Investigative Services Staff at USP Hazelton.
Elmira Man Pleads Guilty to Child Pornography ChargeRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Chad Dolaway, 23, of Pine City, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison and a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant came to the attention of law enforcement in 2011 when undercover agents from both the Federal Bureau of Investigation and Homeland Security Investigations downloaded child pornography from Dolaway through a peer to peer file sharing network. The defendant received child pornography and maintaining the images on a computer that he owned. Some of the images portrayed prepubescent children and children engaged in violent conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Chemung County Sheriff’s Office, under the direction of Sheriff Christopher Moss.
Sentencing is scheduled for September 25th, at 3:30 p.m. before Judge Geraci.El Paso, Texas Man Sentenced for Federal Methamphetamine Trafficking Conviction Defendant Participated in Conspiracy to Sell Seven Pounds of Methamphetamine to Undercover DEA AgentsRead the Press Release
ALBUQUERQUE – Jose Alberto Hernandez, 28, of El Paso, TX, was sentenced this morning in federal court in Las Cruces, N.M., to 46 months in federal prison followed by two years of supervised release for his methamphetamine trafficking conviction.
Hernandez arrested on Aug. 7, 2013, on a criminal complaint charging him with participating in a conspiracy to distribute methamphetamine in Doña Ana County, N.M., in Aug. 2013. Subsequently, Hernandez and seven others were indicted and charged with conspiracy to distribute methamphetamine in Doña Ana County from May 2013 through Aug. 2013.
According to court filings, Hernandez met with undercover DEA agents in El Paso on Aug. 1, 2013, to deliver three pounds of methamphetamine after a co-conspirator in Guadalajara, Mexico, negotiated the deal with one of the undercover agents. During the course of the conspiracy, Hernandez and his co-conspirators sold an aggregate of seven pounds of methamphetamine to the undercover agents.
On Feb. 5, 2014, Hernandez pled guilty to a felony information charging him with participation in a methamphetamine conspiracy, and admitted agreeing with a coconspirator to sell three pounds of methamphetamine to the undercover agents in the parking lot of an apartment complex in El Paso.Two of Hernandez’s co-defendants, who reside in El Paso, also were arrested on Aug. 7, 2013. Fernando Perches, 31, pled guilty to the indictment on Jan. 14, 2014, while Gabriel Garcia-Moreno, 24, entered a similar guilty plea on Feb. 26, 2014. Both are detained pending sentencing hearings and each faces a term of not less than ten years in prison to a maximum of life imprisonment.
Co-defendant Sergio Omar Miranda, 25, a U.S. citizen who resides in Juarez, Chihuahua, Mexico, was arrested on Sept. 20, 2013. Miranda pled guilty on Feb. 14, 2014, to a felony information charging a methamphetamine trafficking conspiracy. He is detained pending sentencing when he faces a maximum penalty of 20 years in prison.
Co-defendant Jose R. Rodriguez-Fernandez, 22, of Canutillo, Texas, was arrested on Dec. 16, 2013. Rodriguez-Fernandez pled guilty on May 19, 2014, to a felony information charging him with participating in a methamphetamine trafficking conspiracy, and faces a maximum penalty of 20 years in prison when he is sentenced.
Co-defendant Evaristo Del Toro Von Ludwitz, 31, a Mexican national from Guadalajara, Mexico, was arrested on May 14, 2014, in McAllen, Texas, and transferred to New Mexico on June 11, 2014. He has pleaded not guilty to the charge in the indictment. Hector Zamora, a Mexican national from Guadalajara, Mexico, and Argelia Zavala-Torres, 30, of El Paso, have yet to be arrested and are considered fugitives. Charges in indictments are merely accusations and these defendants are presumed innocent unless proven guilty in a court of law.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Doctors Indicted for Health Care FraudRead the Press Release
Allegedly Filed Over $2.3 Million in Fraudulent Insurance Claims
Greenbelt, Maryland - A federal grand jury has indicted two doctors, Paramjit Singh Ajrawat, age 60, and his wife, Sukhveen Kaur Ajrawat, age 56, both of Potomac, Maryland, on charges of health care fraud in connection with the pain clinic they owned and operated. The indictment was returned on June 24, 2014.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Bill Jones, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General.
According to the indictment, P. Ajrawat was a licensed physician in Maryland who specialized in interventional pain management. S. Ajrawat was a licensed psychiatrist in Maryland. The Ajrawats owned and operated Washington Pain Management Center (WPMC) located in Greenbelt.
The 16-count indictment alleges that from at least August 2008 through May 2014, the Ajrawats engaged in a scheme to defraud federal health benefit programs including: Medicare, Medicaid, TRICARE, Federal Employees Health Benefits Program and the Office of Workers’ Compensation Programs. Specifically, the indictment alleges that the Ajrawats filed claims for procedures that were not performed (rather, less expensive procedures were performed and then the Ajrawats falsely billed for procedures that provided higher reimbursements), or were not performed in compliance with the requirements for reimbursement.
For example the indictment alleges that the Ajrwats submitted claims that P. Ajrawat had performed an epidural, when instead P. Ajrawat had performed less invasive injections using lidocaine, which was not indicated for epidural use. The Ajrawats allegedly falsely documented the use of an ultrasound machine to direct needle placement in certain patient files and caused the alteration or destruction of patient files to conceal the scheme.
The indictment also seeks the forfeiture of $2,329,109, believed to be the proceeds of the scheme.
The defendants face a maximum sentence of 10 years in prison for each count of health care fraud. An initial appearance has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised DCIS, HHS-Office of Inspector General, OPM-Office of Inspector General, FBI, U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Service-Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kelly O. Hayes, who is prosecuting the case.
District Man Pleads Guilty to Child Pornography and Child Sexual Abuse ChargesMore Than 700 Videos and 100 Images of Child Pornography Seized in Search of Defendant’s ResidenceRead the Press Release
WASHINGTON – Cristian Gutierrez, 22, of Washington, D.C., pled guilty today to child pornography and child sexual abuse charges, announced U.S. Attorney Ronald C. Machen Jr., Clark Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI), Washington, D.C., and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Gutierrez pled guilty in the U.S. District Court for the District of Columbia to one count of possession of child pornography and two counts of second-degree child sexual abuse. He is to be sentenced Sept. 22, 2014 by the Honorable Senior Judge Gladys Kessler. The child pornography charge carries a statutory maximum of 20 years in prison. Each count of second-degree child sexual abuse carries a statutory maximum of 10 years of incarceration. The charges also carry potential financial penalties. Gutierrez also must register for at least 25 years as a sex offender.
According to the government’s evidence, a law enforcement investigation determined that, between May 4, 2013 and Aug. 13, 2013, Gutierrez received and possessed child pornography on his personal laptop computer and other electronic storage devices at his residence. On various dates during that time-frame, he downloaded numerous images and videos depicting child pornography to his computer using a peer-to-peer file sharing program and made those files available for downloading by other users of the program.
On Aug. 16, 2013, pursuant to a warrant, law enforcement searched the defendant’s residence. Law enforcement located a total of more than 700 videos and more than 100 images depicting child pornography on the laptop and other electronic storage devices. Gutierrez initially denied possessing child pornography, but eventually admitted that he downloaded the suspected child pornography files that were on the laptop computer.
The search led to evidence of the defendant’s other conduct. An investigation revealed that between April and August of 2013, on at least five occasions, Gutierrez touched the genitals on top of the clothing of two 12-year-old boys.
In announcing the plea, U.S. Attorney Machen, Special Agent in Charge Settles, and Chief Lanier praised the work of the HSI Special Agents who investigated the case and expressed appreciation for the assistance of MPD detectives. They also commended the efforts of Assistant U.S. Attorney Cassidy Kesler Pinegar, who is prosecuting the case.
14-151Disbarred Attorney Sentenced for Stealing Client FundsRead the Press Release
ATLANTA - Thomas W. Dickson has been sentenced for stealing over $300,000 from his law firm’s clients.
“When Dickson stole over $300,000 of his clients’ money, he violated the law,” said United States Attorney Sally Quillian Yates.
According to United States Attorney Yates, the charges and other information presented in court: In December 2008, while employed with a large Atlanta, Ga., law firm, Dickson was retained by Tenants In Common (TIC), owners of commercial real estate purchased through DBSI Inc., an Idaho based company. DBSI sold TIC investments or fractional ownership interests in commercial real estate to investors across the country. In November 2008, DBSI filed bankruptcy and many of the investors lost their life savings. In December 2008, several TIC property owners retained Dickson to represent their interests in the bankruptcy action. In 2009, Dickson encouraged TIC owners to transfer rents and other income into his law firm’s trust account.
Between February 24, 2010, and January 6, 2012, Dickson fraudulently directed his law firm’s accounting department to unlawfully transfer over $300,000 from the law firm’s trust account to a checking account controlled by Dickson and his wife. Dickson led the firm’s accounting department to believe that the funds were being transferred on behalf of TIC clients to pay legitimate third party expenses. In March 2013, Dickson was disbarred by the Georgia State Bar.
Dickson, 53, of Boulder, Colo., has been sentenced by United States District Judge Willis B. Hunt, Jr., to 12 months and one day in prison to be followed by three years of supervised release, with the first six months of supervised release to be served in home confinement, 120 hours of community service, and ordered to pay restitution in the amount of $175,951.98. Dickson pled guilty to wire fraud on August 14, 2013.This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey A. Brown 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/.
Director of Domestic Violence Shelter Pleads Guilty to Stealing FundsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the director of a shelter for victims of domestic violence in Marshall, Mo., pleaded guilty in federal court today to embezzling from the shelter and to making false statements on federal grant requests.
Deborah L. Wallace, 50, of Marshall, waived her right to a grand jury and pleaded guilty before U.S. District Judge Gary A. Fenner to a federal information that charges her with one count of stealing government property and one count of making false claims for reimbursement under a federal grant.
Wallace was the executive director of the Lighthouse Shelter, Inc. By pleading guilty today, Wallace admitted that she embezzled money from Lighthouse, including money obtained from grants funded by the U.S. Department of Justice. Over a five-year period from 2008 through 2013, Wallace used Lighthouse credit cards to pay personal expenses. Wallace also made unauthorized payments on personal credit cards and her personal cell phone from the Lighthouse bank account.
In her position as executive director, Wallace certified that the grant applications submitted to the Missouri Department of Public Safety for federal grants – the Victims of Crime Act and the State Services for Victims Fund – were true and accurate statements in support of the grant applications. Wallace also certified that the monthly invoices made in support of disbursement of the grant monies were true and accurate. Wallace admitted today that she submitted fraudulent monthly invoices. For example, she falsely claimed that employees who actually performed other duties were working in positions funded under the grants.
The government and Wallace do not agree on the amount of the loss from the fraud scheme. If they are unable to agree to a loss figure by the time of Wallace’s sentencing hearing, the court will decide the matter by a preponderance of the evidence. Under the terms of today’s plea agreement, Wallace must pay restitution to Lighthouse for the total amount of the loss. Wallace also must pay the government a money judgment representing the amount of Lighthouse funds she obtained by fraud or for her own personal benefit as a result of her criminal violation.
Under federal statutes, Wallace is subject to a sentence of up to 15 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the U.S. Department of Justice Office of the Inspector General.Defendant Sentenced on Federal Fraud ChargesRead the Press Release
United States Attorney Kenyen Brown announces that James Lee Collins, Jr. was sentenced on June 25th in Federal Court after pleading guilty to conspiracy to pass and utter United States treasury checks with falsely made and forged endorsements and signatures. The scheme primarily involved stolen or fraudulent federal tax refund checks. Collins received a sentence of 46 months imprisonment, with 3 years of supervised release to follow. Collins was also ordered to pay over $800,000 in restitution.
The investigation was conducted by the United States Secret Service, the Internal Revenue Service, the United States Postal Inspection Service and the South Alabama Financial Crimes Task Force.
“The prison time received by Mr. Collins should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path,” stated Veronica F. Hyman-Pillot, IRS Criminal Investigation Special Agent in Charge. “IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system.”
Assistant United States Attorney Daryl Atchison handled the prosecution of the case on behalf of the United States.
Defendant Sentenced on Federal Firearms ChargeRead the Press Release
United States Attorney Kenyen Brown announces that Keith Kidd was sentenced today in Federal Court after pleading guilty to being a felon in possession of a firearm. Kidd received a sentence of 18 months imprisonment, with 3 years of supervised release to follow. Kidd was taken into custody immediately after the hearing to begin serving his sentence.
The investigation was conducted by the Daphne Police Department. Assistant United States Attorney Daryl Atchison handled the prosecution of the case on behalf of the United States.
Defendant Sentenced on Federal Drug ChargesRead the Press Release
United States Attorney Kenyen Brown announces that Cecil R. Rice, Jr. was sentenced today in Federal Court after pleading guilty to possession with intent to distribute marijuana. Rice received a sentence of 46 months imprisonment, with 3 years of supervised release to follow.
The investigation was conducted by Homeland Security Investigations with the assistance of the Baldwin County Sheriff’s Office. Assistant United States Attorney Daryl Atchison handled the prosecution of the case on behalf of the United States.
Colorado Man Pleads Guilty to Federal Cocaine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Daniel Enrique Padilla-Esparza, 36, of Thornton, Colo., pleaded guilty today in federal court in Las Cruces, N.M., to an indictment charging him with possession of more than five kilograms of cocaine with intent to distribute.
Padilla-Esparza was arrested on Sept. 13, 2013, on a criminal complaint after U.S. Border Patrol agents found more than 35 pounds (almost 16 kilograms) of cocaine in his vehicle during a traffic stop north of the U.S. Border Patrol checkpoint on Interstate 25 in Doña Ana County, N.M. The cocaine was discovered in a concealed compartment above the vehicle’s gas tank. Padilla-Esparza subsequently was indicted on the same charge.
On June 11, 2014, the court denied Padilla-Esparza’s motion to suppress the cocaine and other evidence seized from his vehicle. During today’s hearing, Padilla-Esparza entered a guilty plea to the indictment under a plea agreement that permits him to appeal from the order denying his motion to suppress the cocaine.
In entering his guilty plea, Padilla-Esparza admitted that on Sept. 13, 2013, while he was driving from El Paso, Texas, to Colorado on Interstate 25, he knew he had cocaine hidden in a secret compartment in his vehicle. Padilla-Esparza further admitted knowing that the drugs had been secreted in the compartment while he was in El Paso and Juarez, Mexico. Padilla-Esparza expected to be paid $4,000.00 form transporting the cocaine to Colorado.
Padilla-Esparza has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Padilla-Esparza faces a mandatory minimum of ten years in prison to a maximum of life imprisonment.
This case was investigated by the Las Cruces office of Homeland Security Investigations, U.S. Customs and Border Protection and the U.S. Border Patrol. Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Colombian Man Pleads Guilty to Importation of Heroin Through the Orlando International AirportRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III, announces that William Paez Rubiano (40, Colombia) pleaded guilty to an Indictment charging him with importing heroin into the United States from Colombia. He also pleaded guilty to possession of heroin with intent to distribute in the United States. Paez Rubiano faces a maximum sentence of 20 years in federal prison for each count, and a fine of up to $2,000,000. He is currently detained pending his sentencing hearing on September 15, 2014.
Paez Rubiano admitted that, on May 8, 2014, he arrived in Orlando from Bogota, Colombia aboard JetBlue Airways Flight 1784, traveling with his wife and their seven-year-old daughter. Upon arrival at the Orlando International Airport, a U.S. Customs and Border Protection (CBP) K-9 Officer conducted a canine sweep of Paez Rubiano and his family, including their carry-on luggage. The canine positively alerted to the odor of narcotics emanating from the carry-on luggage. Paez Rubiano’s carry-on luggage was examined and the officers discovered, concealed inside the linings of the luggage, a brown powder substance that yielded positive results to the presence of heroin. Paez Rubiano accepted responsibility for the drugs, which were above three kilograms of heroin.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Cellular Phone and Cosmetics Salewoman Convicted of Selling Synthetic DrugsRead the Press Release
A woman who sold synthetic drugs commonly called “K2” and “bath salts” was convicted by a jury today after a 3-day trial in federal court in Cedar Rapids.
Mary Ramos, age 52, from Evansdale, Iowa, was convicted of distributing and possessing with intent to distribute a synthetic cannabinoid called XLR-11, and distributing and possessing with intent to distribute a synthetic cathinone called Alpha-PVP. Ramos was acquitted of a charge of possessing a firearm in furtherance of the drug crime. The verdict was returned this afternoon following about 6 hours of jury deliberations.
The evidence at trial showed that Ramos sold a drug called XLR-11 under various brand names including “Mr. Nice Guy,” “Mr. Happy,” “Diablo,” “Insane,” “Hydro,” “LOL,” and “777.” XLR-11 is a synthetic cannabinoid similar to THC, but the substances were labeled as incense or potpourri. Ramos also sold a drug called Alpha-PVP under the brand name “Blue.” Alpha-PVP is a form of synthetic cathinone, which is a stimulant similar to methamphetamine or cocaine. The “Blue” substance was labeled as scouring powder, and sold by Ramos for $50 per jar, despite the fact that Alpha-PVP has no cleaning properties. Each jar of “Blue” contained less than half a gram of powder.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Ramos was taken into custody by the United States Marshal after the verdicts were returned and will remain in custody pending sentencing. Ramos faces a possible maximum sentence of 80 years’ imprisonment, $4,000,000 in fines, $400 in special assessments, and a lifetime of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Dan Chatham and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; the Tri-County Drug Enforcement Task Force; the Federal Bureau of Investigation; the Department of Homeland Security; the Internal Revenue Service; and the Iowa Division of Criminal Investigation, Intelligence Division.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-2034-LRR.Carbon Cliff Man Sentenced for Sexual Exploitation of MinorsRead the Press Release
Rock Island, Ill. — A Rock Island county man, Daniel William Becker, Jr., 22, of Carbon Cliff, Ill., was sentenced today for sexual exploitation of minors and possession of child pornography, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sara Darrow ordered Becker to serve 293 months (24 years, 5 months) in federal prison followed by 20 years of supervised release after his release from prison. Judge Darrow also ordered restitution to victims in the case; however, the final amount of restitution will be determined at a hearing scheduled for Sept. 18, 2014. Judge Darrow also ordered the forfeiture of Becker’s digital devices and his residence in Carbon Cliff.
On Jan. 24, 2014, Becker entered pleas of guilty to sexual exploitation of children and possession of child pornography. According to court documents and evidence presented by the government during court hearings, Becker blackmailed minor females via online social networking websites to send him photographs and videos of the girls engaged in sexually explicit acts. Further, Becker threatened the girls by informing them that he would publicly post compromising photographs of the girls online unless the girls produced and sent additional photographs to him.
Becker has remained in the custody of the U.S. Marshals Service since his arrest in March 2013.
Assistant U.S. Attorney Kirk W. Schuler prosecuted the case. The charges were investigated by the U.S. Secret Service’s Quad Cities Cyber-Crime Unit and the Moline Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bergen County, N.J., Man Admits Receiving Images of Child Sexual Abuse over the InternetRead the Press Release
TRENTON, N.J. - A Bergen County, N.J., man admitted today that he downloaded images and videos depicting child sexual abuse on a computer at his parents’ house, U.S. Attorney Paul J. Fishman announced.
Joshua Babilonia, 24, of Fair Lawn, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of receiving images of child sex abuse over the Internet.
According to documents filed in this case and statements made in court:
Special agents of the U.S. Department of Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) executed a search warrant on Sept. 13, 2012, at the Fair Lawn residence of Babilonia’s parents. Agents seized digital evidence that contained more than 600 images and a large number of videos depicting child sexual abuse, including material that involved prepubescent minors and portrayed sadistic or masochistic conduct. The evidence seized included three files previously downloaded from Babilonia by law enforcement agents working in an undercover capacity on a peer-to-peer network.
During today’s guilty plea proceeding, Babilonia admitted he was a member of the online network between January 2011 and September 2012, and searched for and downloaded images of child sexual abuse. He also admitted that his files were viewable and downloadable by others on the network.
Babilonia faces a mandatory minimum penalty of five years in prison, and a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Oct. 15, 2014. Babilonia will also be required to register as a sex offender.
U.S. Attorney Fishman credited special agents of ICE HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney's Office General Crimes Unit in Newark.
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Defense counsel: Adolph Galluccio Esq., Totowa, N.J.
Babilonia, Joshua Information
Ball Cap Bandit Sentenced to Seven Years in Prison for Eleven Bank RobberiesRead the Press Release
HUNTSVILLE -- U.S. District Judge Virginia Emerson Hopkins today sentenced the Ball Cap Bandit to seven years and three months in prison for his string of 11 bank robberies in 2012 and 2013, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
CEDRICK LAMOND HICKS, 33, of Huntsville, was dubbed the Ball Cap Bandit because he often wore such a cap during his crime spree. He pleaded guilty in December to the 11 bank robberies, 10 of which were in Alabama. One of the robberies was in Tennessee. Along with the prison sentence, the judge ordered Hicks to pay a total of $63,048 in restitution to the banks.
"Bank robbery is an extremely serious offense, not only because of the danger to human life that is involved but also because of the debilitating fear it creates for the victims," the government argued in a court filing opposing a defense motion for a downward variance from the federal sentencing guidelines range of 108 to 135 months in prison. "It is immaterial to many victims of bank robberies whether the perpetrator had a gun, brandished something that appeared to be a gun or simply stated he had a gun," the government said.
The court filing quotes several victims of Hicks' robberies including one who said it is still hard for her to do her job because she remains "paranoid when people walk into the bank that I don't recognize." Another victim said the effects of the robbery do not end on the day of the robbery. "Having a gun pulled on you is terrifying," she said. She has been diagnosed with Post Traumatic Stress Disorder and Acute Stress Disorder because of the crime, according to the government document.
The dates, locations and amount of money stolen in the robberies Hicks pleaded guilty to are as follows:- Feb. 22, 2012, Regions Bank, Madison Street, Huntsville, $2,870.
- March 23, 2012, First Jackson Bank, Sutton Road, Huntsville, $1,894.
- April 30, 2012, Renasant Bank, U.S. 72 West, Madison, $3,500.
- Aug. 2, 2012, Peoples Bank, U.S. 431 South, Guntersville, $890.
- Aug. 8, 2012, Traditions Bank, Alabama 67 South, Decatur, $7,243.
- Sept. 19, 2012, First National Bank of Pulaski, South First Street, Pulaski, Tenn., $23,067.
- Nov. 27, 2012, Regions Banks, Lee Street, Rogersville, $8,009.
- Jan. 7, 2013, Peoples Trust Bank, Military Street South, Hamilton, $9,000.
- March 6, 2013, ServisFirst Bank, Meridian Street, Huntsville, $6,575.
- Sept. 18, 2012, Cadence Bank, U.S. 431, Albertville, no money taken.
- Nov. 26, 2012, Traditions Bank, Second Avenue NW, Cullman, no money taken.
The FBI investigated the case. Assistant U.S. Attorney Mary Stuart Burrell of the Northern District of Alabama prosecuted the case.
Atlanta Man Who Impersonated A DEA Agent Pleads Guilty to Charges Related to Prescription Fraud SchemeRead the Press Release
ATLANTA - Jason Elledge, who schemed to obtain controlled substances from local pharmacies, has pleaded guilty to impersonating a federal officer, making false statements to law enforcement, and attempting to obtain fraudulent prescriptions.
“Elledge victimized several doctors with his prescription fraud scheme,” said United States Attorney Sally Quillian Yates. “He used the doctors’ identities to call in fraudulent prescriptions and then, by pretending to be a DEA agent, extracted information from the doctors that he then used to avoid detection by law enforcement. Despite Elledge’s efforts to hide his crimes, today he answered for them.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “DEA is fully committed to tirelessly pursuing those who knowingly break the law by victimizing healthcare professionals with prescription fraud schemes. Mr. Elledge’s criminal actions of prescription drug fraud, impersonating a federal officer and making false statements ultimately led to his demise. This successful investigation was built upon the collaborative efforts of a multitude of law enforcement agencies.”
According to United States Attorney Yates, the charges and other information presented in court: From January 2013 through November 2013, Elledge engaged in a scheme to illegally obtain controlled substances from local pharmacies and avoid detection by law enforcement. First, Elledge selected certain Atlanta, Ga., area doctors to target. Using those doctors’ identities, Elledge called in prescriptions to local pharmacies using various aliases as patient names. The prescriptions typically would consist of 120 tablets of Lortab 10/500mg or Norco 10/325mg, both Schedule III controlled substances, and other non-narcotic drugs. Elledge included non-narcotics in the prescriptions to avoid raising suspicion with the pharmacists that the prescriptions were fraudulent.
Elledge then called the offices of the doctors whom he had targeted and identified himself as DEA agent ‘Alan Velez’ or ‘Jason McDonald.’ He explained to the doctors’ staff that unknown individuals were using the doctors’ identities to call in fraudulent prescriptions to area pharmacies. Elledge claimed that he was investigating the fraudulent prescriptions and needed ‘real time’ information from the doctors’ staff about calls from pharmacies seeking to verify prescriptions. To that end, he instructed the doctors’ staff to contact him whenever they received calls from pharmacies seeking to verify prescriptions for individuals who were not patients of the doctors. Elledge told the doctors’ staff that having this information would allow him to send a member of his team to the pharmacies to arrest the individual(s) who arrived to pick up the fraudulent prescriptions.
In reality, when the doctors’ staff contacted Elledge to report a verification call from a pharmacy about a fraudulent prescription and the prescription was one Elledge had called in, he knew to not go to that pharmacy to pick up that prescription because the pharmacy knew the prescription was fraudulent. Attempting to pick up a prescription that the pharmacy had verified as fraudulent exposed Elledge to the risk of encountering law enforcement.Several of the doctors’ offices Elledge targeted complied with his instructions because they initially believed Elledge was in fact a real DEA agent.
As part of this scheme, on August 1, 2013, Elledge attempted to pick up a fraudulent prescription for 120 tablets of Norco 10/325mg in the name of ‘Kenneth Mayes’ from a Target pharmacy in East Point, Ga. On November 5, 2013, Elledge attempted to pick up a fraudulent prescription for 120 tablets of Lortab 10/500mg in the name of ‘John Coventa’ from a Walgreens pharmacy in Conyers, Ga. On November 7, 2013, Elledge attempted to pick up a fraudulent prescription for 120 tablets of Norco 10/325mg in the name of ‘Sam(uel) Garcia’ from the Atlantic Station Target pharmacy.
On November 7, 2013, when DEA agents made contact with Elledge at the Atlantic Station Target pharmacy, he claimed that another individual, J.L.K., called in the fraudulent prescriptions for Lortab and Norco tablets to various area pharmacies using aliases; J.L.K. would direct him to visit the pharmacies J.L.K. contacted and pick up the fraudulent prescriptions; and Elledge would give 100 of the 120 Lortab and Norco tablets from each fraudulent prescription that he picked up to J.L.K., who would often barter the Lortab and Norco tablets for Oxycodone tablets. Elledge later admitted to DEA agents that these statements were false and that J.L.K. was not involved in the scheme.
On March 18, 2014, Elledge, 40, of Atlanta, Ga., was indicted by a federal grand jury on one count of impersonating a federal officer, one count of making false statements to law enforcement, and three counts of attempting to obtain prescriptions by fraud.
The sentencing hearing is scheduled for September 4, 2014, at 10:30 a.m. before United States District Judge Charles A. Pannell Jr.,
This case is being investigated by the Drug Enforcement Administration.
Special Assistant United States Attorney DeLana M. Jones is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
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/.