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20 June 2014
Baltimore Woman Sentenced for Role in Credit Card Fraud Scheme Targeting Accountholders and Area RetailersRead the Press Release
ALEXANDRIA, VA. – Rameesha Smith, 30, of Baltimore, Maryland, was sentenced today to 38 months in prison, followed by three years of supervised release, for her role in a wide-ranging credit card fraud conspiracy that victimized credit card holders nationwide, as well as various retailers in northern Virginia and elsewhere. Smith also was ordered to pay $143,832.51 in restitution.
United States Attorney Dana J. Boente for the Eastern District of Virginia, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
Smith pleaded guilty on March 10, 2014. According to court documents, from at least as early as September 2010 through at least October 2012, Smith conspired with others to purchase stolen credit card data on the Internet or through other means. This stolen data was then unlawfully loaded onto gift cards or unlawfully encoded onto other credit or debit cards through the use of device-making equipment, such as credit card encoders. The counterfeit credit cards often were embossed with aliases belonging to the members of the conspiracy.
Smith and her co-conspirators then took trips, sometimes together, to use the re-encoded gift, credit or debit cards to buy gift cards and other merchandise at legitimate merchant locations like Giant, Rite-Aid and Nordstrom. Smith often presented counterfeit driver’s licenses displaying various aliases when requested by store clerks. Smith and the conspirators then returned the merchandise they purchased in order to convert the stolen data to cash. The actions of Smith and her co-conspirators involved more than 250 victims, and resulted in at least $200,000 in actual and intended losses.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Jasmine H. Yoon and Trial Attorney William A. Hall, Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) prosecuted the case.Austin Area Man Sentenced to Federal Prison for Stealing Millions from Pension PlansRead the Press Release
In Austin today, 64-year-old Lakeway resident Ricky Lynn Richardson was sentenced to five years in federal prison for stealing millions from pension plans announced United States Attorney Robert Pitman and Federal Bureau of Investigation Acting Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Sam Sparks ordered that Richardson pay approximately $ 4,362,813.59 restitution and be placed under supervised release for a period of three years after completing his prison term.
On March 18, 2014, Richardson pleaded guilty to a one-count Information charging him with theft and embezzlement from an employee benefit plan. According to authorities, from 1998 to 2013, Richardson stole money from four separate pension plans for which he provided administrative services, namely approximately $941,234 from the Texas Dental Association in Austin, approximately $2,504,258 from D.W.D. Engineering in the Houston area, approximately $687,520 from Green Leaflet, Inc., in Austin and approximately $229,800 from Albert T. Gross, M.D. in Austin. During the scheme, Richardson, doing business as Benefit Consultants, Inc., in Spicewood, TX, secretly misdirected or misappropriated money that belonged to the plans and provided customers with false statements, leading them to believe they still had the retirement money.
This investigation was conducted by agents with the Federal Bureau of Investigation and the Employees
Benefits Security Administration of the Department of Labor. Assistant United States Attorney Alan M. Buie prosecuted this case on behalf of the Government.An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Antun Lewis Sentenced to 35 Years in Prison for Setting Cleveland's Deadliest House FireRead the Press Release
A Cleveland man was sentenced to 35 years in prison for setting the May 2005 fire that killed nine people, said United States Attorney Steven M. Dettelbach.
Antun Lewis, 30, of Cleveland, was convicted by a jury in December on one count of arson in U.S. District Court in Cleveland.
“This defendant is responsible for taking nine innocent lives. A coward in the night, he also stole the hopes and dreams of these families, who will never get to experience high school graduations, weddings, or the other things they had a right to enjoy. Nothing can ever erase the pain this defendant caused, and our hearts go to them all. Their grace and dignity in the face of this tragedy is humbling.”
“This sentence brings some closure to a horrific and senseless crime,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Michael Boxler. “It is my hope that this sentencing will bring some comfort to the families of the victims. I also want to compliment the United States Attorney’s Office for their leadership in the prosecution of this difficult case, and I want to thank the Cleveland Fire Department, the Cleveland Division of Police, the Ohio State Fire Marshal’s Office, and the ATF personnel who worked jointly to perfect this investigation.”
The arson at 1220 East 87th Street on May 21, 2005, killed eight children and one adult, making it the deadliest intentionally set fire in Cleveland’s history. It occurred during a children’s sleepover birthday party, according to trial testimony.
Killed were: Fakih Jones, age 7; Malee’ya Williams, age 12; Shauntavia Mitchell, age 12; Earnest Tate, Jr., age 13; Miles Golden Cockfield, age 13; Antwon Jackson, Jr., age 14; Moses Williams Jr., age 14; Devonte Carter, age 15, and Medeia Carter, 33.
This case was prosecuted by Assistant U.S. Attorneys David A. Sierleja, Robert F. Corts and Michael L. Collyer following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Cleveland Police Department and Cleveland Fire Department.
"Dr. Death" Indicted for Illegally Manufacturing Firearms and Possession of Machine GunsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment last week against Daniel Crowninshield, 45, of Sacramento, charging him with unlawfully manufacturing and dealing in firearms, possessing a firearm after having been previously convicted of a crime of domestic violence, and possessing machineguns and unregistered firearms, United States Attorney Benjamin B. Wagner announced. Crowninshield was arrested today in Sacramento by ATF special agents.
According to court documents, Crowninshield, who was also known by his online moniker “Dr-Death,” operated an unlicensed firearms manufacturing business out of C&G Tool, a metal shop in North Sacramento. Crowninshield, himself a prohibited person who is not legally able to possess firearms due to a prior domestic violence conviction, did not conduct background checks, enforce waiting periods, or complete firearm transaction paperwork in connection with the sale of firearms.
Using sophisticated computer-controlled machines, Crowninshield allegedly manufactured lower receivers for AR-15s and other firearms. A lower receiver is the part of a firearm that holds the mechanical parts (e.g. the hammer, bolt or breechblock, and firing mechanism) that combine with a trigger, firing pin, and other parts to form a functioning firearm. The lower receiver was made from a metal casting called a “blank” that is not considered a firearm by ATF. Once the blank is converted into a lower receiver using a drill press or automated machine, it is considered a firearm by statute even if there is no barrel, handle, or trigger, and it is subject to federal regulation.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the California Department of Justice’s Bureau of Firearms, with the assistance of the Sacramento Police Department, the Sacramento County Sheriff’s Department, and the California Highway Patrol. Assistant United States Attorney Justin Lee is prosecuting the case.
“The production and sale of assault rifles without serial numbers, background checks or waiting periods poses a serious danger to public safety,” said U.S. Attorney Wagner. “We will continue to investigate and prosecute those who seek to profit from such conduct.”
“Individuals who manufacture and sell unregistered and unmarked machine guns and short barrel rifles pose a grave danger to our communities,” said ATF Special Agent in Charge Joseph M. Riehl. “These unmarked firearms used in violent crime make it difficult if not impossible to trace back to the perpetrator of the offense.”
Crowninshield will make his initial appearance today at 2:00 before U.S. Magistrate Judge Kendall J. Newman in Sacramento. If convicted, Crowninshield faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each of the seven possession-of-firearm counts and a maximum of five years in prison and a $250,000 fine on the manufacturing and dealing charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
19 June 2014
Westville Man, Woman Arraigned for Methamphetamine DistributionRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MICHAEL ALLEN COOPER, age 39 and AMANDA JO JONES, age 24, both of Westville, Oklahoma were arraigned in federal court today on charges of Conspiracy To Possess With Intent To Distribute And Distribute Five Hundred (500) Or More Grams Of mixture or Substance Containing a Detectable Amount of Methamphetamine, a Schedule II Controlled Substance, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A).
The Indictment filed on June 11, 2014, alleges that beginning in or about June 19, 2013, through on or about April 9, 2014, within the Eastern District of Oklahoma and elsewhere, the defendants, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the District 16 District Attorney’s Drug Task Force, the U.S. Drug Enforcement Administration, and the U.S. Postal Service – Office of Inspector General.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. Both defendants were remanded into the custody of the United States Marshal Service.
The statutory range of punishment for COOPER is not less than life imprisonment and/or up to $20,000,000.00 in fines. The statutory range of punishment for JONES is not less than 10 years imprisonment and/or up to $10,000,000.00 in fines.
First Assistant United States Attorney Doug Horn represented the United States.
Webb County Commissioner Pleads Guilty to Accepting Bribes in Exchange for Official ActionsRead the Press Release
Kristopher Michael Montemayor, a county commissioner for Precinct 1 of the Webb County Commissioners Court in Texas, pleaded guilty to bribery today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson for the Southern District of Texas, and Special Agent in Charge Christopher H. Combs of the FBI’s San Antonio Division made the announcement.
Montemayor admitted that, while serving as county commissioner, he solicited and accepted bribes in exchange for promising to perform official acts. Specifically, Montemayor admitted that he accepted three separate bribe payments totaling $11,000, as well as over $2,700 in electronics equipment, from a businessman who, unbeknownst to Montemayor, was an undercover law enforcement agent. Montemayor admitted that, in exchange for the money and the equipment, he promised to take official action to promote the business interests of the undercover agent.
Additionally, Montemayor admitted to accepting the use of a new 2012 Ford F-150 truck, which costs approximately $37,015, in exchange for promising to provide government jobs to both the vehicle owner and his spouse. As a result of these job appointments, the vehicle owner and his wife received salaries of $26,000 and $45,553 from Webb County.
Montemayor is scheduled to be sentenced on Oct. 7, 2014 before U.S. District Judge Marina Garcia Marmolejo in Laredo, Texas.
This case is being investigated by special agents from the Laredo Resident Agency of FBI’s San Antonio Division. This case is being prosecuted by Trial Attorneys Emily Rae Woods and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.USP-Canaan Inmate Sentenced to 15-Years of Imprisonment for Stabbing A Correctional Officer in the FaceRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that United States District Court Judge Malachy E. Mannion has sentenced Jose Montalban, age 42, to 15 years’ imprisonment for assaulting a correctional officer and inflicting bodily injury. On February 12, 2014, following a three-day trial, a jury found Montalban guilty of the assault, and the illegal possession of a weapon by an inmate of the United States Penitentiary at Canaan, Pennsylvania.
According to United States Attorney Peter Smith, the evidence at trial established that on December 28, 2012, inmate Jose Montalban, who was serving a federal prison sentence for bank robbery, walked into an office at the USP-Canaan and took a six-inch sharpened plastic knife and began stabbing a correctional officer who was seated alone in that office. The correctional officer was stabbed three times in the face before he, and other correctional officers who responded to the unprovoked attack, were able to subdue Montalban. The correctional officer sustained three puncture wounds to the face which required nine sutures at a local hospital.
The case was investigated by special agents of the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney John Gurganus prosecuted the case.
U.S. Attorney Steven M. Dettelbach Addressed the Akron Roundtable About Heroin and OpioidsRead the Press Release
Remarks as prepared by U.S. Attorney Steven M. Dettelbach to the Akron Roundtable about our community's response to Ohio's heroin and opioid epidemic:
It happens every day in the United States, and every day right here in Akron.
You go in for a minor operation, or medical procedure, or to have a tooth pulled, and everything goes smoothly.
When you’re about to leave, the doctor pulls out his or her prescription pad to give you something for the pain.
Maybe you’re in a lot of pain. Maybe you’re in a little discomfort. Maybe you feel pretty close to fine, but the doctor gives you a script just in case.
Maybe it’s for 20 pills of Percocet. Maybe it’s 40. Maybe it’s 60.
When you get home, you take two pills on the first day. And the next day, you’re feeling better but still have some pain, and you take two more. And the next day, you take one pill, and then it’s time to go back to work and you are pretty much back to normal.
But you still have 55 Percocet sitting in your medicine cabinet. There they sit for a week, a month, a year, without you giving them much thought at all.
Even though you’re not thinking about them, they are sitting in your medicine cabinet like ticking time bombs. Because on July 4th, or at Thanksgiving, or on New Year’s Day, your nephew, or your kid or your kid’s friend is over visiting or home from college, and he goes into your medicine cabinet, grabs the bottle and puts it in his pocket.
Now that nephew or niece, son or daughter is on their way to opioid addiction. An addiction that, more and more frequently, morphs from pills to heroin. And with startling frequency, that battle with addiction ends on a slab at the coroner’s office, a life taken, another family destroyed.
I’m here today to talk about the heroin and opioid problem we all face here in Northern Ohio, and to provide some stark and startling facts about what we’re seeing in the law enforcement community, and to let you know about some of the efforts going on around the state, and in Akron, that provide us with the slightest glimmer of hope.
Some of those efforts involve law enforcement, but many of them involve a broad cross section of the community, including doctors and hospitals, treatment professionals, police officers, parents and PTAs.
The message for you: we can’t do this alone. We need your help, which is why I am happy that so many of you are here today. Thank you to the Akron Roundtable and your president, Jacqueline Silas-Butler, for focusing your attention on heroin and our community’s response.
When I joined the Justice Department in the early ‘90s, the vast majority of our federal drug trafficking cases dealt with cocaine – either powder or crack cocaine. Remember “Miami Vice” and “Scarface” with the piles of cocaine? Those were the cases we did.
But about five years ago, the drug trafficking cases in our office shifted from cocaine to heroin.
What had happened? Well, the drug traffickers saw a shift in demand and adjusted their product to fill that demand.
And why was there a shift in demand? There was an explosion in painkillers being prescribed.
In 1997, there were 7 pain pills prescribed for every man, woman and child in Ohio. Fast forward to 2010 and that figure jumped.
For every man, woman and child in Ohio, there were 67 pills per person. That’s an increase of more than 900 percent! And I don’t think the level of pain in Ohio increased 900 percent during that time.
Ohio has been flooded with pills. Some of these pills were coming from what we call “pill mills,” which hand out pills for anyone with a pulse, in exchange for a fee, of course.
But far more common are the good doctors who prescribe pills for a variety of reasons. Those reasons include patient satisfaction scores or large pharmaceutical companies that incentivize doctors to write with what I call a heavy pen.
Some people become hooked on the pills following surgery or an injury. Others take painkillers recreationally. Others divert the pills to third parties. Either way, the pills are expensive and eventually, people either run out of pills or run out of money.
So what do they do? They turn to heroin, which is also an opioid, which they can get for a fraction of the cost of Percocet or Vicodin.
And we’ve seen that here in Akron.
Chris Jacquemain was a star quarterback at Mentor High School, near Cleveland who came to the University of Akron on a football scholarship. The head of the criminal division in our office was one of his coaches in pee-wee football. Like all the kids who get a Division I football scholarship, Chris was stronger and faster than everyone. But the one opponent he couldn’t beat was heroin.
Chris got hooked on painkillers after a shoulder injury. The need to feed his addiction led to stealing from teammates and eventually Chris was kicked off that Akron football team. He turned to heroin and, after stints in and out of court, in and out of rehab, he on died on Thanksgiving weekend in 2011.
I’d like to tell you that story outlier, but it is not.
In Cuyahoga County, heroin deaths have increased 400 percent over the past five years. Last year alone, nearly 200 people died from heroin overdose in Cuyahoga County.
Summit County has its own problems. In the past two years, there have been 86 heroin deaths here. That’s 86 people, 86 families, 86 mothers and fathers, countless brothers and sisters.
Just this week, five people have died from heroin in Akron, Ohio.
These fatalities cut across all demographics. Black and white. Young and old. City, suburb and rural. Rich and poor, you name it.
Fatal overdoses are just one way to measure the crushing impact of the epidemic. A staggering amount of crime is related to heroin, whether it’s people actually dealing drugs, or stealing copper to get their fix, or worse. We saw that a couple weeks ago, when your county prosecutor Sherry Bevan Walsh procured a conviction in the quadruple murder that was related to heroin.
The problem is real. And it is – and has been – at crisis levels.
But it’s not just one kind of problem. We have a law enforcement problem, a health care problem and a treatment problem.
And we have to focus more effort on stopping this problem before it starts. Because when it comes to heroin, a gram of prevention is worth 10 kilos of cure, because the grip of this drug is so strong once it takes hold, it rarely lets go, even if people do get help and go into recovery.
I hear about it all the time.
This spring we were at a law enforcement office talking about an opioid arrest and afterward, the secretary there pulled aside someone from our office, and with tears in her eyes and a little bit of shame, she thanked them for our efforts to curb the problem.
This police department secretary explained how her own daughter – who was herself a mother – got hooked on painkillers, which led to heroin. The secretary confided that she didn’t know how it was going to end for her daughter, who had been through rehab. She worried that her daughter was just one mistake, one bad day, away from the morgue. The pain and the anguish that this mother felt were evident.
Because we can cite numbers all we want when you know somebody who deals with this issue, one is one too many.
So we have a multifaceted problem, a problem that affects real people. I submit to you that what we need is a multifaceted solution. And that’s something that we’ve been working on.
First, we turned to traditional partners, like the DEA, FBI and Ohio Attorney General, to try to come up with a plan.
Next, we turned to non-traditional partners, like the Cleveland Clinic, University Hospitals, MetroHealth and the County Medical Examiner, to try to expand the plan.
And now, we’re gathering people who run recovery centers, outreach workers who handle needle exchanges, people in recovery and who lost children to heroin.
Our goal has been to invite as many committed people as we could to try to create an overall plan that would tie together the many efforts already underway to combat the problem and look to fill in any gaps.
We started by meeting in our office but we soon realized that if we wanted to make any progress on this issue, we needed to get out of the courthouse and into the community.
That’s why we put together a daylong summit at the Cleveland Clinic which attracted nearly 700 people, 700 experts, to share ideas.
Let me tell you, when you get 700 people to come to something in the middle of the week, you know you’re touching a chord in the community.
We talked about enforcement. We talked about treatment. We talked about education and we talked about policy.
The result of that summit was what we call the Heroin and Opioid Community Action Plan. You can find a copy on our web site and I have some copies here today.
That day wasn’t the end of our efforts. The group that put together the summit stayed together as the U.S. Attorney’s Task Force on Heroin and Opioids. Both the Task Force and the Action Plan are broken into four sections: (1) Education and Prevention; (2) Law Enforcement; (3) Treatment and (4) Healthcare Policy.
Each group developed a set of goals, both long- and short-term, to help move us forward on fighting heroin. Then have tried to make those goals happen.
So, for example, on prevention we continued and expanded a program started by a Cuyahoga County Judge who had been going out and giving talks at schools and community meetings. These talks were drawing hundreds of concerned parents and students but even a judge can’t do everything alone.
The group also worked to expand the number of prescription drop boxes where people could talk those old pills. Now there is one in nearly every community in Cuyahoga County.
Healthcare Policy was driven by the doctors in the group. They successfully pushed for was the passage of House Bill 170, which allowed first responders and family members to have access to Naloxone, which is basically an antidote for someone who is overdosing on heroin. It literally saves lives.
Lorain was a pilot site for giving Naloxone to first responders. Last November, when a deadly batch of fentanyl-laced heroin hit the streets of Lorain, two people died, but more than a dozen were saved by police officers using Naloxone. Compare that with Pittsburgh, where more than 20 people tragically died from fentanyl-laced heroin in a two weeks.
In Law Enforcement, we’ve also made strides. The first one relates to how police respond to a fatal overdose.
All too often, the old practice was that if there’s a call for a dead body and the police get there and see a needle sticking in the dead person’s arm, they often would just get back in the car and move on to the next call. After all, it wasn’t a murder, right?
Now, working with Cleveland Police, the County Sheriff and County Prosecutor, we have developed written investigative protocols for how to handle and investigate fatal overdoses. And they start the moment the police arrive.
Detectives now treat those sites as crime scenes, looking to gather DNA, check cell phones and texts, talk to people on the scene and try to determine who supplied the fatal dose of heroin. And a prosecutor responds to every heroin death in Cuyahoga County. That’s because, when it’s appropriate, we bring either manslaughter charges in the state system or federal charges with what we call a “death resulting enhancement” which carries a 20-year mandatory minimum sentence.
We have brought a few of those cases already, including one here, in which an Akron man sold heroin that resulted in the death of a man on Christmas Day in a motel in Green. That case is pending.
We could not have done that case without the fine work of the Akron Police Department and the Summit County Prosecutor’s Office.
In fact, your chief -- Chief Nice -- created a dedicated heroin unit looking to track the source of the drugs and bring manslaughter charges when the facts allow it.
I’m proud to say that some of the costs of the project are being paid for by a Justice Department grant.
I hope you’re also seeing the billboards and hearing the public service announcements in Summit County. They are also conducting a public awareness campaign as part of the effort.
Akron is doing something they are not yet doing in Cleveland. Akron Police have partnered with the Summit County Alcohol, Mental Health and Drug Board, and the ADMs Board will now send intervention specialists to emergency rooms when there is a non-fatal overdose.
Such a simple idea, but so powerful. The research shows – and it makes sense – that when somebody overdoses and survives, there is a window then the addict will consider going into treatment. This immediate response simply seeks to capitalize on that window.
The goal will be to engage the user – and the user’s family – and get them to agree to go directly to rehab. It’s a great idea that came from here and I plan to tell everyone I can about it in the hope that they’ll copy it.
We will continue to enforce the law. My branch chief Bob Bulford and Assistant U.S. Attorney Sam Yanucci are here today, taking a quick break from the dozens of large-scale drug trafficking investigations they handle on a daily basis.
The efforts of these career Assistant U.S. Attorneys and the agents they work with has resulted in indicting nearly 200 people on heroin charges since just last year.
But as all of us will tell you, we cannot simply arrest our way out of this problem.
The solution cannot be justto arrest drug dealers – although that is part of the solution.
The solution cannot be justto make more treatment beds available – although that is part of the solution.
The solution cannot be just to require doctors to check to see if a patient has been doctor shopping – although that is part of the solution.
The solution cannot be justto get in front of every parent and teacher and child and warn them that making the mistake of trying heroin just might be the last mistake they ever make – although that is part of the solution.
We need is what I call an “all of the above” approach.
We need vigorous law enforcement.
We need more treatment options.
We need to get control of the stream of prescription pills being diverted to addicts.
And we need to come together as a community to stop people from experimenting with these drugs in the first place.
It is shocking to me to understand how heroin of all drugs could become the “popular” drug.
We all remember heroin was a dead-end drug for the hopeless. It was the last stop on a trail of misery. And it still is.
But as we have begun our work on this epidemic, I am struck but how often good people come up to me or someone in the U.S. Attorney’s office with a tragic story of their own.
We had a news conference last month and one of the TV cameramen approached afterward and confided that he was in recovery from heroin.
A nursing student who graduated from the same suburban school my children attend who fatally overdosed. People from all backgrounds, all races, all socioeconomic classes, will tell us about a niece, a son, a daughter.
These are our kids. They are our neighbors who are dying. And they are dying in record numbers. This is truly everyone’s problem.
The Action Plan we’ve come up with is just a model, a good start.
Words like “crisis” and “epidemic” get thrown around a lot. But in my five years as U.S. Attorney, I can’t think of a problem we’ve encountered that comes close to the death and destruction that has been visited upon us like heroin.
U.S. Attorney Announces Hiring of Beaumont Lead ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT – U.S. Attorney John M. Bales announced the hiring of Matt Quinn as the Attorney in Charge of the Beaumont office of the United States Attorney for the Eastern District of Texas.
Assistant U.S. Attorney (AUSA) Matt Quinn joined the Beaumont office this week where he will oversee the daily operations of the office which includes a staff of 36 federal prosecutors, support, and administrative personnel.
Matt Quinn was born and raised in Southeast Texas graduating from Vidor High School in 1994. He graduated with a bachelor’s degree from Texas A&M University in 2000 and the University of Arkansas at Little Rock School of Law in 2003. Matt was a Deputy Prosecuting Attorney in Little Rock, Arkansas, for five years, where he was assigned to the gang unit and prosecuted numerous homicides and other violent crime. In 2008, Matt joined the Western District of Arkansas as an Assistant U.S. Attorney and was assigned to the Texarkana Branch Office, which happens to be located on the Texas/Arkansas state line and is a joint office with the Eastern District of Texas. As an AUSA in Texarkana, Matt worked side-by-side with Eastern District of Texas prosecutors handling major drug trafficking cases and violent crimes.
“Matt Quinn was raised in southeast Texas so it should be no surprise to anyone that he comes back to Beaumont with all the qualities that we admire – hard-working, smart, conscientious and caring,” said U.S. Attorney Bales. “He is a great addition to our Beaumont office and will do a wonderful job working with our law enforcement partners.”
The Eastern District of Texas includes 43 counties stretching from the Gulf of Mexico to the Oklahoma/Texas border. There are 6 staffed offices located in Beaumont, Lufkin, Tyler, Texarkana, Plano and Sherman with a total of 51 federal prosecutorsTwo ‘Pill Mill’ Owners SentencedRead the Press Release
ATLANTA - Jason Cole Votrobek and Roland Rafael Castellanos, owners of the “Atlanta Medical Group,” have been sentenced to 15 years in federal prison, respectively. Both Votrobek and Castellanos were convicted on March 26, 2014, after a month-long jury trial on federal drug and money laundering charges for owning and operating a ‘pill mill’ pain clinic which served as a front for the mass distribution of addictive pain killers.
"The abuse of pain medication has become epidemic and now accounts for six times more deaths than that of all of the traditional illegal drugs combined,” said United States Attorney Sally Quillian Yates. “The defendants in this case preyed upon those addicted to prescription drugs in order to line their own pockets. The abuse of prescription drugs and its related criminal activity has become a danger in many of our communities - one we have made a central focus of our office. Today justice has been served.”
“This is a great illustration of the positive impact law enforcement has when local, state, and federal agencies work together,” said Vernon Keenan, Director of the Georgia Bureau of Investigation. “The increasing abuse of prescription drugs is a significant problem in Georgia that the GBI will continue to address with our local and federal partners.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Pain clinics prey on so-called patients who are addicted to opiates. Some of the doctors who dispense these addictive analgesics often operate under the guise of a stethoscope and a white coat, when in actuality they are nothing more than drug traffickers. This successful investigation was a direct result of hard work put forth by all law enforcement agencies involved.”
“The sentences handed down today are a culmination of the hard work of numerous agencies and speak to the effort of the men and women with boots on the ground,” said Captain Mark Mayton, Commander of the Bartow-Cartersville Drug Task Force. “This shows criminal prosecution was a success. To receive a conviction and sentencing is a testament to the job the men and women did making the case. This closure highlights the success interagency cooperation can produce. Nobody worked by the shape of their badge — they worked to solve a problem.”
“IRS Criminal Investigation is proud to contribute our financial expertise in an effort to halt the illegal sale and distribution of prescription drugs,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “We are committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to United States Attorney Yates, the charges and other information presented in court: In May 2010, using information from the Bartow/Cartersville Drug Task Force, multiple agencies joined in an expanded investigation of “Atlanta Medical Group,’ learning that the clinic, located in Cartersville, Ga., was prescribing pain pills outside the bounds of legitimate medical practice.
During trial, the government offered evidence that Jason Cole Votrobek, 30, of Vero Beach Fla., Roland Rafael Castellanos, 34, of Hollywood, Fla., and Jesse Violante, 35, of Vero Beach, Fla., financed and operated the clinic. Tara Atkins, 36, of Cartersville, Ga., served as the office manager. Dr. James Chapman, 64, of Macon, Ga., served as the primary doctor. U.S. District Court Judge Robert L. Vining, Jr. sentenced Votrobek and Castellanos each to 15 years in federal prison.
In their respective capacities, Votrobek and Castellanos worked to procure and distribute Oxycodone pills to addicts and distributors and directed the clinic’s doctor to see as many patients as possible, and to prescribe as many Oxycodone pills as possible, in order to generate mass profits. Dr. Chapman allegedly did so, however, without conducting sufficient medical examinations and, indeed, was frequently incapacitated due to intoxication. Atkins herself filled out prescriptions for the doctor to sign, and the amounts of pills distributed to patients were excessive, and with unusual dosage patterns.
Evidence offered at trial established that the clinic was really a drug distribution operation with over 98 % of their patients traveling to the clinic from surrounding states, the majority from Kentucky and Tennessee. Many of those visiting had obvious signs of being addicts. The clinic engaged in unusual practices, like, permitting non-medical staff to assist with medical procedures, such as taking blood pressure, to maximize the number of patients seen. Indeed, in 2011, the clinic was one of the ‘Top 15’ purchasers of Oxycodone in the nation. Votrobek and Castellanos made millions of dollars during the clinic's approximately one year of operation. Votrobek and Castellanos established multiple bank accounts, many in third party names, to conceal the windfall profits.
Votrobek had previously been acquitted in Florida of similar charges stemming from his ownership of a Florida pain clinic. Jesse Violante and Tara Atkins, who both previously pleaded guilty to charges related to their conduct at the clinic, will be sentenced on a later date. Dr. James Chapman is presently awaiting trial.
This case was investigated by the Drug Enforcement Administration’s Diversion Group, Georgia Bureau of Investigation, Bartow/Cartersville Drug Task Force, Georgia Drugs and Narcotics Agency, and the Internal Revenue Service-Criminal Investigation; with special assistance from the Tennessee Bureau of Investigation and the Kentucky State Police.
Assistant United States Attorneys G. Scott Hulsey, Cassandra J. Schansman, and Laurel R. Boatright 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 is http://www.justice.gov/usao/gan/.
Two San Jose Residents and A Miami Woman Indicted for Defrauding Blue Shield of CaliforniaRead the Press Release
SAN JOSE – A federal grand jury indicted Skylar Ariel Phoenix a/k/a “Karin Marie West,” Lissa Michele Phoenix a/k/a “Lisa Beckwith,” and Dana Ann Wilkey yesterday with conspiracy to commit wire fraud, wire fraud and aiding and abetting, and false statements to government agents, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David Johnson.
According to the Indictment, Skylar Phoenix, 50, of San Jose, was employed by Blue Shield of Calif. as the manager in the marketing department from approximately June 2003 through September 2011. Lissa Phoenix, 51, of San Jose, is Skylar Phoenix’s registered domestic partner. Dana Wilkey, 41, of Miami, Fla., was the president of Adwil Agency, Inc. with its principle place of business in Beverly Hills, Calif. Adwil Agency served as a vendor for Blue Shield.
In the first scheme alleged in the Indictment, defendants Skylar Phoenix and Lissa Phoenix are alleged to have engaged in an illegal scheme to defraud Blue Shield by creating false employee records and time cards for work allegedly performed by Lissa Phoenix, when in truth no such work was performed. In order to perpetrate this scheme, these defendants presented Lissa Phoenix as “Lisa Beckwith, d/b/a Adwil Communication,” with an address corresponding to the home address of one of Lissa Phoenix’s close family members. Furthermore, the defendants made false “production invoices” from Adwil Communications, to the attention of Skylar Phoenix at Blue Shield, which purported to document and describe actual work being done by Adwil Communications for the benefit of Blue Shield and requesting payment to “L.M. Beckwith.” Skylar Phoenix, in her capacity as manager of the Blue Shield Marketing Department authorized the payment to “L.M. Beckwith,” when in fact no legitimate work was provided to Blue Shield by Lissa Phoenix as described on these invoices. Between September 2004 and March 2011, Skylar Phoenix approved payments to Lissa Phoenix under this scheme of nearly $500,000 for work which was never provided to Blue Shield.
In the second scheme alleged in the Indictment, Dana Wilkey, with the participation and assistance of Skylar Phoenix, entered into a fraudulent marketing contract between Blue Shield and Adwil Agency, Inc., which included the regular payment of undisclosed kickbacks from Wilkey to Skylar Phoenix, Lissa Phoenix, and Rodeo Pink, a shell corporation held by and for the benefit of Skylar Phoenix. Between in or about February 2006 through at least February 2012, Dana Wilkey, through Adwil Agency accounts, paid directly to Lissa Phoenix, Skylar Phoenix, and Rodeo Pink, approximately 87 checks totaling approximately $360,000 in illegal and undisclosed kickbacks related to Adwil Agency’s business with Blue Shield.
Skylar Phoenix and Lissa Phoenix are also charged with lying to the FBI about these described activities in September 2013.
Skylar Phoenix and Lissa Phoenix were arrested this morning at their home in San Jose and made their initial appearance in federal court in San Jose this afternoon. Dana Wilkey was arrested by the FBI in Miami, Fla. and made her initial appearance in federal court in Miami earlier in the day. All three defendants were released on bond set in the amount of $250,000 each. Skylar Phoenix and Lissa Phoenix are next scheduled appearance on June 24, 2014, at 1:30 p.m. for a further bond hearing before the Honorable Howard R. Lloyd, United States Magistrate Court Judge in San Jose.
An Indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the wire fraud and conspiracy counts, the defendants face a maximum sentence of 20 years imprisonment on each count, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution to the victim if appropriate, and supervised release of up to 5 years for each violation of 18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud, and 18 U.S.C. 1343, Wire Fraud. In addition, Skylar Phoenix and Lissa Phoenix are also charged with making false statements to government agents. If convicted of those counts, each face a maximum sentence of 5 years imprisonment on each count, a fine of $250,000, and supervised release of up to 3 years for each violation of 18 U.S.C. § 1001, False Statement to a Government Agent. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Amie D. Rooney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Tracey Andersen. The prosecution is the result of an investigation by the FBI.
(Phoenix indictment )
Two Dutchess County Men Charged in White Plains Federal Court with Distribution of ‘Breaking Bad’ Heroin Causing the Deaths of Three IndividualsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William V. Grady, the Dutchess County District Attorney, James J. Hunt, the Acting Special Agent-in-Charge of the New York Field Division of the United States Drug Enforcement Administration, and Adrian H. Anderson, the Dutchess County Sheriff, announced the unsealing this morning of a federal criminal complaint charging DENNIS SICA, 36, and JOHN ROHLMAN, 25, both of Dutchess County, with distributing heroin, the use of which caused the overdose deaths of three individuals. SICA and ROHLMAN are expected to be presented later today in White Plains federal court before the Honorable Lisa Margaret Smith, United States Magistrate Judge for the Southern District of New York.
U.S. Attorney Preet Bharara stated: “Three young people from our community are dead, the tragic victims of heroin peddled by the defendants under the label ‘Breaking Bad.’ Heroin and opioid abuse hurts all of our communities. It affects everyday people, people with jobs, people with families. Although the heroin and prescription painkiller epidemic may be breaking bad, we must aggressively make good on our collective obligation to stamp out this affliction. No more half-measures. The lives of our children and the vitality of our communities depend on it.”
Dutchess County District Attorney William V. Grady stated: “From the beginning stages of this investigation my office, along with the Dutchess County Drug Task Force and the DEA worked together with the ultimate goal of developing a case that could be prosecuted under Federal Law. This was done because presently, under New York Law an offender convicted of such a sale could be sentenced to a drug diversion program, the county jail or even probation. Such sentences, under these facts, are simply outrageous and unacceptable. We must send the strongest message possible to those individuals who engage in this conduct. A sentencing range of 20 years to life, from both a punitive as well as a deterrent perspective, is such a message. When similar circumstances are encountered in the future my office will not hesitate in involving Federal law enforcement. I sincerely appreciate U.S. Atty Bharara for undertaking this prosecution.”
DEA Acting Special Agent-in-Charge James J. Hunt stated: “This year DEA New York has seized 110% more heroin than in 2009. The Mexican drug trafficking organizations are flooding the Northeast market with heroin, leaving tragic overdose deaths in the cartel’s wakes. Case in point - the tragic deaths of three victims who allegedly bought heroin from two local drug dealers; Dennis Sica and John Rohlman. I applaud the prosecutors and investigators who arrested the defendants. These arrests are a message to dealers alike that behind every overdose, law enforcement is looking for the drug dealer responsible.”
Dutchess County Sheriff Adrian H. Anderson stated: “Today’s arrests are the direct result of the hard work, dedication, and cooperation between law enforcement agencies, and it’s good to see that effort pay off in the form of some justice for the victims and their families. There’s more work to be done and the battle is far from over. Let this be a warning to all of those people who sell drugs in Dutchess County and elsewhere—we’re going to do everything in our power to put a stop to their business and prosecute them to the fullest extent of the law.”
According to the allegations in the Complaint:
From at least late 2013 to February 2014, SICA and ROHLMAN worked together in Dutchess County to sell a particularly potent form of heroin, bags of which were stamped with the brand name “Breaking Bad.” At least some of the heroin distributed by SICA and ROHLMAN was laced with fentanyl, a synthetic opioid that is significantly stronger than street heroin.
On the night of December 28, 2013, SICA sold “Breaking Bad” heroin to Anthony Delello, a 20-year-old resident of Beekman, New York. Delello snorted some of SICA’s heroin and was found dead by his girlfriend the following day. The Dutchess County Medical Examiner’s report concluded that he died from “acute heroin intoxication.”
Delello’s death did not stop SICA and ROHLMAN from selling “Breaking Bad” heroin. Four days after Delello was found dead, SICA and ROHLMAN exchanged a series of text messages in which SICA urged ROHLMAN to delete the text message history in the phone they used to sell heroin and, if asked, to deny knowing anything about Delello or the manner of his death. According to one witness, during the month that followed, SICA and ROHLMAN were responsible for distributing approximately 250 grams of “Breaking Bad” heroin per day.
Slightly more than a month after Delello’s death, two more individuals died after overdosing on “Breaking Bad” heroin. On February 1, 2014, Thomas Miller, 31, was found dead by his mother at his home in Pawling, New York. A hypodermic needle, as well as several glassine bags stamped with the words “Breaking Bad” were found near his body. Some of the glassine bags were full, others were empty. A chemical analysis of the contents of the full glassine bags showed that they contained a mixture of quinine, fentanyl, and heroin. The medical examiner’s report indicates that Miller died of “acute intoxication by the combined effects of heroin and fentanyl.” Text messages between Miller and ROHLMAN on the night before Miller was found dead show that ROHLMAN arranged for Miller to purchase “Breaking Bad” heroin from SICA that night.
The same day that Miller was found dead, Laura Brown, 35, was found dead of an apparent heroin overdose in New Milford, Connecticut. Brown was found with needles and glassine bags near her body. Several of the glassine bags were stamped with the words “Breaking Bad.” The autopsy performed on Brown’s body showed that she died of “acute heroin and fentanyl intoxication.” According to Brown’s brother, he and Brown together bought “Breaking Bad” heroin from SICA two days before Brown was found dead.
On February 2, 2014, SICA was arrested in East Fishkill, New York after a car in which he was riding was stopped by law enforcement. During the stop, an East Fishkill police officer noticed several glassine envelopes lying on the car’s floorboard. Upon further inspection, the officer observed that the glassine bags were stamped with a “Breaking Bad” stamp identical to the one that appears on the envelopes recovered from Thomas Miller’s bedroom.
If convicted of the offense charged in the Complaint, SICA and ROHLMAN each face a mandatory minimum penalty of 20 years in prison, a maximum penalty of life in prison, and a maximum fine of $1 million or twice the gain or loss resulting from the crime. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the DEA Tactical Diversion Squad and the Dutchess County Drug Task Force. The DEA Tactical Diversion Squad is composed of agents and officers of the DEA, the NYPD, the Westchester County Police Department, and the Town of Orangetown Police Department. The Dutchess County Drug Task Force is composed of the City of Poughkeepsie Police Department, the Town of Poughkeepsie Police Department, the East Fishkill Police Department, and the Dutchess County Sheriff’s Office. Mr. Bharara also thanked the New York State Police Forensics Unit and the police department for the City of New Milford, Connecticut, for their assistance in the investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Scott A. Hartman is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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U.S. v. Dennis Sica and John Rohlman Complaint
Three More Persons Indicted in $14.5 Million Telemarketing ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that a federal grand jury returned three one-count Indictments for conspiracy to commit wire fraud and mail fraud against the following individuals:
- Cheryl Ann Dorman, 55, of Palm Beach Gardens, FL
Karine Lee O’Loughlin, 39, of Boynton Beach, FL
Michael M. Zaric, 35, of Jupiter, FLEach is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
These individuals were employees of C&G Marketing Associates, LLC, a Florida corporation which, in 2009, defrauded consumers across the continent using the fictitious name, Premier Timeshare Solutions (“PTS”). PTS telemarketers worked in an office building in West Palm Beach, Florida. From there, they placed phone calls to timeshare owners, falsely representing or implying that the company had found someone who wanted to buy the person’s timeshare. In exchange for an advance fee that typically exceeded $1,000, the PTS telemarketers promised to handle all the details of the sale and send the victims the proceeds after closing. Once the victims had paid the advance fee, however (usually by giving the telemarketer their credit card information), the fraudulent company simply pocketed the money. There were no interested buyers, the closings did not occur, and the timeshares were not resold.
Victims who called PTS to check on the status of their transactions were directed to customer service representatives, managed by Jose Goyos, whose goal was to perpetuate the fraud by delaying and discouraging chargebacks and complaints. To accomplish that goal, representatives would lie to victims, assuring them that despite some phony, unexpected delay, their timeshare unit was still going to be sold. Repeat callers were given a series of bogus excuses, none of which had any basis in fact. By instilling a false sense of hope, PTS aimed to delay the chargeback process beyond the time that most credit card issuers allow for disputes. Goyos was indicted in September 2013 and sentencing to 96 months of imprisonment on May 2, 2014.
Several others have been charged in connection with PTS and two defendants have pled guilty. Last month, the grand jury returned ten one-count indictments in connection with this scheme. During a recent sentencing of Goyos, the Honorable David R. Herndon, Chief Judge of the United States District Court for the Southern District of Illinois, called timeshare resale fraud an industry that recruits recovering drug addicts to steal from the financially vulnerable – “the most despicable scam in the world.”
United States Attorney Wigginton summarized the scam: “To discourage and defeat subsequent chargeback attempts, PTS sent victims written contracts to sign and return – contracts that made no mention of the promised sale and obligated the company merely to provide marketing and advertising services. Because the original sales calls were not recorded, PTS could later claim that marketing and advertising was all that had ever been promised, and that any contrary impression the victim may have formed – for instance, that there was a concrete offer for the customer’s unit or some genuine interest by a qualified buyer – was simply a misunderstanding. In fact, all of this was simply an act of thievery. I urge all consumers to follow this tried and true advice: if you get a call from someone you do not know and trust, promising something that sounds too good to be true, it is a scam. Hang up. Then, please report the call to the proper authorities.”
This prosecution is one of nearly 60 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, the Florida Attorney General’s Office and the Florida Department of Agriculture. The prosecution of the cases is being handled by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney Liam Coonan.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
SoCal Doctor Agrees to Plead Guilty to Distributing Addictive Painkiller and Laundering Proceeds of His Drug TraffickingRead the Press Release
LOS ANGELES – In a plea agreement filed late this afternoon, a Los Angeles-area doctor has agreed to plead guilty to a federal drug trafficking charge for illegally distributing the powerful painkiller best known by the brand names Vicodin and Norco.
Dr. Andrew Sun, 78, of La Mirada, has agreed to plead guilty to one count of distribution of hydrocodone and one count of money laundering.
While Sun has agreed to plead guilty to distributing hydrocodone, he admits in his plea agreement that he also illegally prescribed and distributed other drugs, including those best known by the brand names Xanax and Soma. Sun admits that he prescribed these drugs from the beginning on 2011 through June 2012 and that he did so “outside the usual course of professional practice and without a legitimate medical purpose.”
Sun, who operated medical clinics in San Gabriel and East Los Angeles, was named in an indictment that was returned by a federal grand jury about three months ago. In his plea agreement, Sun acknowledges that he issued a dozen prescriptions to “patients” who were undercover law enforcement officers who made cash payments and who “did not have a legitimate medical need for the drugs.”
Sun admitted that, between January 2011 and May 2012, he received approximately $554,070 in cash payments from patients, which he deposited into a personal account “for the purpose of disguising the source and nature of the funds, and which (as defendant knew) represented the proceeds from defendant’s issuance of prescriptions for controlled substances.”
As part of his agreement to plead guilty to the two felony charges, Sun agreed to forfeit to the government the proceeds that he earned from his illegal medical practice, including approximately $342,000 seized from his accounts in July 2012.
Sun’s case is pending before United States District Judge Manuel Real, who has not yet scheduled a hearing for Sun to enter his guilty pleas.
The drug trafficking count carries a statutory maximum penalty of 10 years in federal prison, and the money laundering count carries a maximum penalty of 20 years in custody.
Sun also agreed to pay $86,975 in restitution to the California Medical Board, which participated in the investigation into the doctor’s illegal activities. Sun also agreed to cooperate in any action taken by the Medical Board to revoke his medical license.
The investigation into Sun was conducted by the Drug Enforcement Administration, IRS - Criminal Investigation, the California Medical Board, the California Department of Health Care Services and the Monterey Park Police Department.
Release No. 14-076
Shiprock Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Gilbert Yazzie, 45, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to a felony information charging him with aggravated sexual abuse of a child. Under the terms of his plea agreement, Yazzie will be sentenced to eight years in federal prison followed by a term of supervised release to be determined by the court. Yazzie also will be required to register as a sex offender.
Yazzie was arrested in June 2013, based on a criminal complaint alleging that he engaged in a sexual act with a Navajo child under the age of 12 years. According to court filings, Yazzie sexually abused the child victim on June 15, 2013, in a residence in Shiprock, which is within the Navajo Indian Reservation. During today’s change of plea hearing, Yazzie admitted that on June 15, 2013, he engaged in a sexual act with the child victim.
Yazzie has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and Glynette R. Carson McNabb as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Seven People Indicted in Overlapping Identity Theft and Illegal Gun-Buying Schemes Appear in Federal CourtRead the Press Release
BIRMINGHAM -- Five of seven people indicted late last month in overlapping identity theft and illegal gun-purchasing conspiracies were arraigned today in federal court. The two other defendants, including Quantrey Kantrell Bryant, who is charged with both conspiracies, were arraigned on their charges earlier. All seven were arrested June 10.
U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell, Bureau of Alcohol, Tobacco, Firearms and Explosives Assistant Special Agent in Charge Michael Durham, and U.S. Postal Inspector Frank Dyer announced the court appearances.
Chief U.S. Magistrate Judge John E. Ott today arraigned CHRISTINA LATASHA PEAVY, 34, of Bessemer, and MARQUETTE JERRELL HARRIS, 29, of Birmingham, on a charge of conspiracy to commit mail and wire fraud. Harris also was arraigned on several counts of aggravated identity theft.
DAVID MICHAEL CHAVIS, 30, CURTIS GLENN ROBINSON, 27, and NORMAN STANTON, 33, all of Bessemer, were each arraigned on a charge of conspiracy to illegally purchase guns.
U.S. Magistrate Judge T. Michael Putnam on June 13 granted bond to LANCE DARRELL ALEXANDER, 32, of Midfield, and on Monday ordered Bryant, 27, of Birmingham, detained pending trial.
Bryant is charged with conspiracy to commit mail and wire fraud in a scheme to defraud multiple credit card holders and issuers, aggravated identity theft, conspiracy to illegally obtain firearms and being a convicted felon in possession of a firearm.
Alexander is charged with the conspiracy to illegally obtain firearms, along with Bryant, Chavis, Robinson and Stanton.
According to the indictment, the mail and wire fraud scheme was carried out as follows: Bryant had a friend who worked as a customer-service representative for a California company. The friend supplied Bryant with information about the company's customers, including credit and debit card information. Bryant used the information in a variety of fraudulent ways, including using fraudulent credit cards to buy guns and cars. The indictment charges that Harris and Peavy helped Bryant conduct the credit fraud.
The indictment further charges that, because Bryant was a convicted felon prohibited from possessing guns, he had Chavis, Robinson and Stanton, who were not convicted felons, complete required background-check paperwork to convince gun sellers they were buying the weapons. Alexander helped Bryant resell the guns, according to the indictment.
Conspiracy to commit wire and mail fraud affecting federally insured financial institutions carries a maximum penalty of 30 years in prison and a $1 million fine. Aggravated identity theft carries a penalty of two years in prison, which must be served consecutively to any other sentence imposed for the crime. Conspiracy to obtain firearms illegally carries a maximum sentence of five years in prison and a $250,000 fine, and being a convicted felon in possession of a firearm carries a maximum penalty of 10 years in prison and a $250,000 fine.
The Secret Service, Postal Inspection Service and ATF investigated the case, with assistance from the Bessemer Police Department. Assistant U.S. Attorney Melissa Atwood is prosecuting the case.
An indictment contains charges. Defendants are considered innocent unless and until proven guilty.
Quantrey Bryant, et al IndictmentSeven Individuals Charged in Bank Fraud and Identity Theft RingRead the Press Release
MINNEAPOLIS—The United States Attorney’s Office announced today that a federal grand jury indicted a man on a variety of charges stemming from an identity theft, bank fraud, wire fraud, and tax fraud conspiracy. Six additional co-conspirators were charged via Information for their roles in the conspiracy.
Christopher Lindsey, the individual who allegedly orchestrated the conspiracy, was arrested today and charged in a 23-count indictment. Specifically, Lindsey was charged with one count of Conspiracy to Commit Bank and Wire Fraud, 12 counts of Bank Fraud, three counts of Wire Fraud, four counts of Aggravated Identity Theft, one count of Conspiracy to Defraud the United States, and two counts of submitting False Claims for Refunds. Eric Childs was charged with one count of Conspiracy to Commit Bank and Wire Fraud. Nicole Shantelle Ashton, Monta Dormus Davis, Quentin Nathaniel Durr, Joanetta Joyce Robinson, and Tramaine Michael Smith each face one count of Conspiracy to Commit Bank Fraud.
According to the 23-count indictment: From October of 2002 until December of 2013, Lindsey allegedly coordinated an elaborate check fraud scheme as well as a fraudulent tax return scheme. As part of the alleged check fraud scheme, Lindsey obtained legitimate bank account information, including names and addresses of businesses and individuals, bank routing and account numbers, check numbers, and signatures, from a variety of sources, including approximately 20,000 stolen checks that had already been negotiated as part of legitimate transactions. Lindsey then used that information in the creation of counterfeit checks. Lindsey, and other members of the conspiracy, would then negotiate the counterfeit checks at various financial institutions and businesses throughout the Twin Cities area. The total intended and actual loss for the counterfeit check scheme that Lindsey and his conspirators carried out was more than $1 million.
Also during this time, Lindsey allegedly executed a conspiracy to submit false claims to the IRS. Lindsey and other conspirators recruited individuals to file false and fraudulent tax returns with the IRS. Lindsey would create false and fraudulent Form W-2s for those individuals, in which he combined the correct information of his conspirators, including names, dates of birth, and social security numbers, along with false information regarding employment, earnings, and withholdings. As a result of these actions, Lindsey and his conspirators caused the IRS to issue fraudulent income tax refunds.
These fraudulent refunds were then loaded onto debit cards issued to the conspirators who had filed the fraudulent returns. The conspirators, in turn, provided the debit cards to Lindsey, who then used the debit cards at ATMs to make cash withdrawals. The conspiracy involved the submission of more than 40 fraudulent claims seeking refunds totaling more than $270,000.
If convicted, Lindsey faces a potential maximum penalty of 30 years in prison for conspiring to commit bank and wire fraud, bank fraud and wire fraud, and a mandatory minimum sentence of two years on each count of aggravated identity theft. Lindsey also faces a potential maximum penalty of 10 years in prison for conspiring to defraud the United States and a potential maximum penalty of five years in prison for false claims for refunds. All sentences are ultimately determined by a federal district court judge.
United States Attorney Andrew M. Luger stated that, “The crimes charged in this case have a real impact on our community and economy. Because of the nature of this organization and its crimes, the defendants were able to support their criminal network for more than ten years. Because of the great work of the Minnesota Financial Crimes Task Force, and the strong law enforcement partnerships that are central to its operation, these defendants are being held to account for their crimes.”
This case is the result of an investigation led by the Minnesota Financial Crimes Task Force, which was established pursuant to state law. The task force investigates financial crimes related to identity theft, with a special emphasis on organized criminal enterprises. It is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing trend of cross-jurisdictional financial crimes.
“This investigation came together as a result of the partnerships between agencies and the extraordinary efforts of all involved working under the umbrella of the Minnesota Financial Crimes Task Force and is an example of successful collaboration of local, state, and federal criminal justice agencies,” said Patrick Henry, Commander of the Minnesota Financial Crimes Task Force.
The Minnesota Financial Crimes Task Force serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate. Its participants include the U.S. Secret Service, the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Internal Revenue Service-Criminal Investigations Division, the Minneapolis Police Department, the St. Paul Police Department, the Edina Police Department, the Duluth Police Department, the Ramsey County Sheriff’s Office, the Mille Lacs County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
“IRS-Criminal Investigation, along with our law enforcement partners and the U.S. Attorney’s Office, remain vigilant in our duty to protect the honest taxpayers of this country by diligently investigating identity theft and refund fraud crimes and holding those accountable who defraud the government and hurt innocent taxpayers,” stated Rick Goss, St. Paul Field Office Acting Special Agent in Charge of IRS-Criminal Investigation.
Louis Stephens, Special Agent in Charge of the local office of the United States Secret Service added, “These individuals are well versed in using identity theft to commit bank fraud and other types of financial crimes. This type of crime continues to increase in complexity and the impact on our economy and communities throughout Minnesota, especially the greater Twin Cities area, grows each year. Identity theft and related crimes are the crime wave of today and will continue to be in the future. Criminal conspiracies such as this are extremely difficult to investigate because they are hierarchical in nature and commit their crimes across jurisdictional lines in an effort to frustrate law enforcement’s ability to track them and associate their crimes. The Minnesota Financial Crimes Task Force is a force multiplier that enables the combined resources of federal, state, and local law enforcement to pool our resources and maximize each agency’s expertise to more effectively combat this type of crime.”
This case is being prosecuted by Assistant United States Attorney Lola A. Velazquez-Aguilu.The charges contained in an indictment are mere allegations and defendants are presumed innocent unless and until proven guilty.
Serial Bank Robber Sentenced to 198 Months in Federal PrisonRead the Press Release
Previously Dubbed "T Shirt Bandit," Defendant Committed Four Bank Robberies After Serving Federal Prison Sentence for 18 Bank Robberies Committed in 2006
DALLAS — A serial bank robber, who was on supervised release after serving a federal prison sentence for committing 18 bank robberies in Dallas in 2006, was sentenced today for committing four more bank robberies in 2013, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
William Clark Perschman, 51, most recently of Addison, Texas, was sentenced by U.S. District Judge Jane J. Boyle to a total of 198 months in federal prison. Perschman admitted committing these bank robberies:
July 17, 2013 Woodforest National Bank
3770 Belt Line Road, Addison
August 3, 2013 Capital One Bank
3790 Belt Line Road, Addison
August 14, 2013 Green Bank
16771 Dallas Parkway, Addison
August 31, 2013 Capital One Bank
17561 Dallas Parkway, DallasIn most of the bank robberies, Perschman wore a long-sleeved shirt and either a t-shirt or towel draped over his head to disguise his identity. In each robbery, he presented a demand note to a teller.
Perschman was released from federal custody in February 2011, after serving a 63-month federal prison sentence for robbing 18 banks in Dallas in 2006. He was serving a three-year term of supervised release that would have ended in February 2014.
The FBI, Addison Police Department and Dallas Police Department investigated. Assistant U.S. Attorney Keith Robinson prosecuted.
Sentencing for June 16 - 18, 2014Read the Press Release
Stephen Engelhart, 26, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 18, 2014, for receipt of obscene material. Engelhart was arrested in Cheyenne, Wyoming. He received 60 months of supervised probation and was ordered to pay a $100.00 special assessment and restitution in the amount of $3,000.00. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Philip L. Martin, 54, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 16, 2014, on one count of conspiracy to possess with intent to distribute, and to distribute at least 6.58 kilograms of methamphetamine; one count of possession of a firearm in furtherance of a drug trafficking crime; and one count of engaging in monetary transactions in property derived from specified unlawful activity. Martin was arrested in Cheyenne, Wyoming. He received 295 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $1,000.00 fine and a $300.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Michelle L. Puente, 48, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 16, 2014, for conspiracy to possess with intent to distribute, and to distribute, between 5 and 15 kilograms of methamphetamine. Puente was arrested in Cheyenne, Wyoming. She received 135 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $1,900.00 fine and a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Second Haitian Man Pleads Guilty to Alien Smuggling Conspiracy That Killed 8Read the Press Release
St. Thomas, USVI – Dieuseul Mompremier, 44, also known as “Jomei,” a Haitian national living in St. Thomas, pleaded guilty today in federal district court for his role in a conspiracy to smuggle illegal aliens into the United States, which resulted in the death of eight individuals, United States Attorney Ronald W. Sharpe announced. Mompremier, who has been incarcerated since his arrest on April 11, 2014, was remanded to the custody of the U.S. Marshals Service pending his sentencing, scheduled for September 25, 2014 before District Judge Curtis V. Gomez.
According to court records, in December 2010, Mompremier, Lamorthe Delva, 46, and Roro Edourre, 46, conspired with each other and additional co-conspirators to smuggle illegal aliens from St. Maarten, Netherlands Antilles, to St. John, U.S. Virgin Islands. On December 5, 2010, Edourre was the captain on the vessel “Jesus La,” with approximately 33 passengers, most of them Haitian nationals, including men, women and children, when the vessel traveled from St. Maarten, Netherlands Antilles, to the U.S. Virgin Islands. While Edourre was transporting the illegal aliens on the vessel, Mompremier and Delva waited in the U.S. Virgin Islands to pick up and transport the aliens upon their arrival in St. John. The U.S. Coast Guard spotted the vessel carrying Edourre and his passengers, and attempted to intercept it. However, Edourre attempted to evade the Coast Guard. While attempting to evade the Coast Guard, the “Jesus La” ran aground and sank near Tortola, resulting in the death of at least eight individuals, including four children.
Mompremier faces a maximum penalty of life in prison and a $250,000 fine. Delva pleaded guilty for his role in the conspiracy on May 23, 2014, and is awaiting sentencing, Edourre, who was arrested and prosecuted in the British Virgin Islands for manslaughter, is currently serving a 10-year sentence.
United States Attorney Sharpe commended the investigative work of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and Assistant U.S. Attorney Kim L. Chisholm, who is prosecuting this case.
Rosebud Woman Sentenced for Acquiring Controlled Substances by FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of Acquiring Controlled Substances by Fraud and Theft was sentenced on June 17, 2014, by U.S. District Judge Roberto A. Lange.
Bonnie Melissa Levy, age 38, was sentenced to 18 months of probation, a $200 fine, $38.75 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Levy was indicted by a federal grand jury on December 10, 2013, for one count of Acquiring Controlled Substances by Fraud and one count of Theft in Connection with Healthcare. She pled guilty to Acquiring Controlled Substances by Fraud on March 24, 2014.
Levy became addicted to prescription drugs, namely Morphine, Hydrocodone, and Benadryl, in 2005 while she was working in Georgia. In March 2013, Levy began working at Rosebud Indian Health Services Hospital, a federal healthcare benefit program. Using her position, Levy unlawfully obtained Morphine and Benadryl for her own use.
The investigation was conducted by the Department of Health and Human Services, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Jay Miller.
Rosebud Man Charged with Conspiracy to Distribute A Controlled Substance and Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Lawrence Bordeaux, age 30, was indicted on June 10, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in custody and/or a $1,000,000 fine, at least 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 2014 and March 2014, Bordeaux knowingly and intentionally distributed and possessed with intent to distribute methamphetamine, a Schedule II controlled substance, on the Rosebud Sioux Reservation.
The charges are merely accusations and Bordeaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Bordeaux was remanded to the custody of the U.S. Marshals Service pending trial.
Rochester Man and Woman Indicted on Drug ChargesRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a five-count indictment charging Charles Darwin Fitzgerald, 39, and Amber Lynn Snover, 23, both of Rochester, N.Y., with conspiracy to distribute and distribution of Schedule I Controlled Substance Analogues and maintaining a drug related premises. The charges carry a maximum penalty of 20 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that according to the indictment, between September 2011 and July 25, 2012, the defendants conspired to possess with intent to distribute Alpha-PVP, Pentedrone and AM2201, which are all Schedule I controlled substance analogues. The indictment also charges the defendants with maintaining four drug related premises for the purpose of manufacturing, distributing and using Alpha-PVP, Pentedrone and AM2201:
• 21 West Hills Estate, Rochester; • 420 Emporium Store, 14 Market Street, Brockport, N.Y.; • 420 Emporium Store, 400 Ellicott Street, Batavia, N.Y.; • 420 Emporium Store, 1475 East Henrietta Road, Rochester.
The indictment also includes two forfeiture allegations which seek the forfeiture of the following property upon conviction of the controlled substances offenses alleged in the indictment: $771,109 in cash seized on July 25, 2012 from 21 West Hills Estates, Rochester, and the property at 21 West Hills Estates.
The indictment is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Agency, under the direction of James J. Hunt, Special Agent in Charge New York Field Office, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Rochester Mail Handler Sentenced for Stealing MailRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that former United States Postal Service employee Jeremy Lieberman, 35, of Rochester, N.Y., who was convicted of stealing from the mails, was sentenced to five years probation, to include 10 months of confinement at a community confinement center.
Assistant U.S. Attorney John J. Field, who handled the case, stated that while working as a mail handler, Lieberman stole diamonds and other valuable items from the mails. Between January 2013 and May 2013, the defendant stole more than $128,000 worth of jewels and valuables, which he later sold at area pawn shops to finance an addiction to prescription opiates.
The sentencing is the culmination of an investigation by the U.S. Postal Service, Office of Inspector General, Eastern Area Field Office, under the direction of Special Agent in Charge Monica Weyler.Richmond Man Previously Convicted of Aggravated Sex Crimes of A Juvenile Sentenced for Distribution of Child PornographyRead the Press Release
RICHMOND, Va. – Robert Cole Johnson, 55, of Richmond, Virginia, was sentenced to 180 months’ imprisonment on June 18, 2014, in U.S. District Court for distributing child pornography. Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Mark Herring, Attorney General of Virginia, made the announcement after the defendant was sentenced by United States District Judge John A. Gibney.
The defendant pled guilty on March 10, 2014, to distributing child pornography. According to court documents, the defendant was identified during an undercover investigation by law-enforcement officers into the trading of child pornography over the Internet. In April 2013, an officer downloaded four files depicting child pornography from a computer that was later tracked to the defendant’s residence in Richmond, Virginia. Based on this information, officers obtained a search warrant for the defendant’s residence, which was executed in May 2013. During the execution of the warrant, the defendant admitted searching for and downloading child pornography from the Internet. He also admitted allowing other users to download files from his computer. The defendant has prior convictions for rape, sodomy, and aggravated sexual battery of a ten-year-old female in 1985 and for failing to register properly with the Virginia Sex Offender and Crimes Against Minors Registry in 2013.
The case was investigated by the Southern Virginia Internet Crimes Against Children Task Force and the Federal Bureau of Investigation. Special Assistant United States Attorney Tommy Johnstone of the Virginia Attorney General’s Office prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Ragley Man Pleads Guilty to Part in Robbery at Coushatta Tribal ReservationRead the Press Release
LAKE CHARLES, La. –The last defendant in a group that conducted an armed home invasion on the Coushatta Tribal Reservation pleaded guilty, U.S. Attorney Stephanie A. Finley announced today.
Floyd Marshall Martine, 35, of Ragley, La., pleaded guilty before U.S. District Judge Patricia Minaldi to one count of the crime of brandishing a firearm during and in relation to a federal crime of violence.
According to evidence presented at the guilty plea, the defendant along with John Harold Materne, Chanten Keith L. Gauthreaux, Trevor James Simon, and another suspect traveled on December 3, 2013, in a van to the home of an acquaintance located on property belonging to the Coushatta Indian Tribe near Elton, La., in order to steal illegal drugs. Simon drove the vehicle. With Materne carrying a shotgun, he and Martine entered the home. While they were robbing the inhabitants, Gauthreaux entered the trailer and helped take pills and marijuana. The group was arrested while fleeing in the van. Materne and two of the victims are Native American Indians and members of the Coushatta Tribe.
Martine faces seven years to life in prison and a maximum of five years of supervised release. Simon, Gauthreaux, and Materne pleaded guilty earlier this month to one count of robbery in Indian Country, which carries a maximum penalty of 15 years in prison and three years of supervised release. Materne also pleaded guilty to one count of the crime of brandishing a firearm during and in relation to a federal crime of violence. They also all face a maximum fine of $250,000 and forfeiture of the weapons used in the robbery. A sentencing date of September 18, 2014 was set for Martine. Simon is scheduled to be sentenced October 30, 2014; Gauthreaux is to be sentenced September 11, 2014; and Materne is to be sentenced September 4, 2014.
Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has extended the territorial jurisdiction of the United States to major crimes committed against Native Americans that take place in Indian Country, which includes all property that the government holds in trust or use by officially recognized Native American tribes. The U.S. Attorney’s Office prosecutes all major crimes and misdemeanor cases arising in Indian Country that are within the jurisdiction of this office. The U.S. Attorney’s Office prosecutes cases arising in Indian Country involving felonies where either the defendant or the victim is an Indian or both the defendant and the victim are Indian. The U.S. Attorney’s Office also prosecutes cases involving misdemeanors where the defendant is a non-Indian.
The Coushatta Tribal Police Department, FBI, and ATF conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
Patient Recruiter Pleads Guilty in Miami for Role in $205 Million Health Care Fraud SchemeRead the Press Release
A former patient recruiter pleaded guilty today in Miami, Florida, for his role in a $205 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Michael Mendoza, 45, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Jonathan Goodman in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Aug. 28, 2014.
According to court documents, during the course of the conspiracy, Mendoza was the president of Network Resource Consultant Inc., a Florida corporation, and he served as a patient recruiter for American Therapeutic Corporation (ATC), a defunct partial hospitalization program located in Miami that purported to provide intensive psychiatric services. Mendoza made an agreement with Lawrence Duran, the owner of ATC, and others to refer residents living in assisted living facilities throughout the Southern District of Florida to ATC in exchange for illegal health care kickbacks. Mendoza’s referrals to ATC were for purported mental health services.
Throughout the course of the ATC conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries, who did not qualify for PHP services, to attend treatment programs that were not legitimate PHP programs so that ATC and related companies could bill Medicare for more than $205 million in medically unnecessary services. ATC submitted approximately $436,450 in false and fraudulent claims to Medicare for Mendoza’s beneficiary referrals.
Duran pleaded guilty and was sentenced to serve 50 years in prison for his role in orchestrating the fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Assistant Chief Robert Zink and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Patient Recruiter Pleads Guilty in Miami for Role in $205 Million Health Care Fraud SchemeRead the Press Release
A former patient recruiter pleaded guilty today in Miami, Florida, for his role in a $205 million Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Michael Mendoza, 45, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Jonathan Goodman in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Aug. 28, 2014.
According to court documents, during the course of the conspiracy, Mendoza was the president of Network Resource Consultant Inc., a Florida corporation, and he served as a patient recruiter for American Therapeutic Corporation (ATC), a defunct partial hospitalization program located in Miami that purported to provide intensive psychiatric services. Mendoza made an agreement with Lawrence Duran, the owner of ATC, and others to refer residents living in assisted living facilities throughout the Southern District of Florida to ATC in exchange for illegal health care kickbacks. Mendoza’s referrals to ATC were for purported mental health services.
Throughout the course of the ATC conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries, who did not qualify for PHP services, to attend treatment programs that were not legitimate PHP programs so that ATC and related companies could bill Medicare for more than $205 million in medically unnecessary services. ATC submitted approximately $436,450 in false and fraudulent claims to Medicare for Mendoza’s beneficiary referrals.
Duran pleaded guilty and was sentenced to serve 50 years in prison for his role in orchestrating the fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Assistant Chief Robert Zink and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Orlando Man Sentenced to Five Years in Federal Prison for Firearms ConspiracyRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich sentenced Arami Rodriguez (37, Orlando) to five years in federal prison for conspiring to possess unregistered firearms. Rodriguez pleaded guilty on March 26, 2014. The sentencing hearing was held on June 17, 2014.
According to court documents, Rodriguez conspired with another individual to possess and sell unregistered firearms to an undercover detective. As part of the conspiracy, Rodriguez provided his co-conspirator with a machine gun, silencer, and a short-barreled rifle, each of which was sold to the detective. None of those firearms were registered in the National Firearms Registration and Transfer Record. Rodriguez eventually sold three other silencers directly to the undercover detective.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Non-Indian Man from Chama Sentenced for Assaulting Jicarilla Apache WomanRead the Press Release
ALBUQUERQUE – Gabriel Armas, 30, was sentenced today to five years of probation for his misdemeanor assault conviction.
Armas, a non-Indian man from Chama, N.M., entered a guilty plea on March 17, 2014, to a misdemeanor information charging him with assault. According to the information, Armas threatened to physically harm a Jicarilla Apache woman on May 12, 2012, in a location within the Jicarilla Apache Nation. In entering his guilty plea, Armas admitted assaulting the victim by placing her in fear that she was in danger of an immediate battery.
This case was investigated by the Jicarilla Apache Tribal Police Department and was prosecuted by Special Assistant U.S. Attorney David Adams.
This case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
New Jersey Man Charged with Defrauding Workman's CompensationRead the Press Release
Herman Mokuau, 68, of Bridgeton, New Jersey was charged today by Information with one count of theft of Government funds, and one count of false statement or fraud to obtain federal employees’ compensation, announced United States Attorney Zane D. Memeger. The information alleges that between 2004 and June 2012, Herman Mokuau implemented a scheme to receive and convert to his own use federal workers’ compensation benefits while concealing that he was working as a farrier (horseshoer) and earning income, resulting in total losses to the government of approximately $62,615.39.
If convicted the defendant faces a maximum possible sentence of fifteen years incarceration, a $500,000.00 fine, three years supervised release, and restitution of $62,615.39.
The case was investigated by the Department of Labor’s Office of the Inspector General and the Naval Criminal Investigative Service and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Myrtle Beach Man Convicted of Producing Child PornographyRead the Press Release
Contac Persont: Bill Day (803) 929-3000
Florence, South Carolina ----- United States Attorney Bill Nettles stated today that Webster Douglas Williams, III, age 55, of Myrtle Beach, South Carolina has entered a guilty plea in federal court in Florence, to producing child pornography, a violation of 18 U.S.C. § 2251(a) and (e). Additionally, Williams, III entered a guilty plea to travel in interstate commerce to engage in sexual acts with a minor, in violation of 18 U.S.C § 2423(b) and to possession of child pornography, in violation of 18 U.S.C § 2252A. United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Williams produced child pornography for more than five years by filming his activities with children who were from four to eleven years old at the time. Williams also took children to Florida where he engaged in sexual activities with one of the children. When Williams' house was searched by the Horry County Police Department in November 2011, more than one million images of child pornography were found in the form of pictures and videos on computers, cd's and elsewhere. Hidden cameras, computers, cd's and other material used by Williams in producing and collecting child pornography were also found and seized.
Mr. Nettles stated the maximum penalty for producing child pornography is imprisonment for 30 years and/or a fine of $250,000, the maximum penalty for travel in interstate commerce to engage in sexual acts with a minor is also imprisonment for 30 years and/or a fine of $250,000, and the maximum penalty for possession of child pornography is imprisonment for 10 years and/or a fine of $250,000.
The case was investigated by agents of the Horry County Police Department and the Federal Bureau of Investigation. Assistant United States Attorney William E Day, II of the Columbia office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.# # #
Muskogee Man Arraigned for Firearm PossessionRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that TOMMY LOUIS TAYLOR, 35, of Muskogee, Oklahoma, was arraigned in federal court today on charges of FELON IN POSSESION OF A FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1).
The Indictment alleges that on or about December 19, 2013, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm, to-wit: one H&R .32 caliber revolver, bearing serial number BA021273, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. The Defendant was remanded into the custody of the United States Marshal Service.
The statutory range of punishment for TAYLOR is not more than 10 years imprisonment and/or up to $250,000.00 in fines.
Assistant United States Attorney Edward Snow represented the United States.
Muldrow Man Pleads Guilty to Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JAMES CHRISTOPHER COOKE, age 38, of Muldrow, Oklahoma, pled guilty to Possession of certain Material Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The charges are a result from an investigation by the Federal Bureau of Investigation. The defendant was indicted in March, 2014.
The Indictment alleged that from between in or about September, 2012 and December 5, 2012, in the Eastern District of Oklahoma, and elsewhere, the defendant, did knowingly possess and attempt to possess matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of sexually explicit conduct, and had been transported in interstate commerce by computer.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is up to 10 years imprisonment, 5 years to life on supervision and/or up to a $250,000.00 fine.
Assistant United States Attorney Edward Snow represented the United States.
Mission Man Charged with Possession with Intent to Distibute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been charged with Possession with Intent to Distribute a Controlled Substance.
Jesse James Beauvais, age 42, was indicted on June 10, 2014. He appeared before U.S. Magistrate Mark A. Moreno on June 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 2 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that at various times between January 5 and 11, 2013, Beauvais possessed marijuana, a Schedule I controlled substance, with the intent to distribute.
The charge is merely an accusation, and Beauvais is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Beauvais was released to a third party custodian pending trial. A trial date has not been set.
Mission Man Charged with Assault by Strangulation and SuffocationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation.
Joseph Lambert, age 27, was indicted on May 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about the 23rd day of April, 2014, Lambert unlawfully assaulted his dating partner by strangling and suffocating her.
The charge is merely an accusation and Lambert is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Lambert was released on bond pending trial. A trial date has not been set.
Minot Man Convicted of Felon in Possession of Firearm & AmmunitionRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on June 19, 2014, Brian L. Sweeney, 47, Minot, N.D., was found guilty by a federal jury on a charge of felon in possession of a firearm and ammunition.
On October 14, 2013, in Minot, N.D., Sweeney was stopped for a traffic violation. After smelling the odor of marijuana coming from the vehicle, a law enforcement search resulted in the discovery of a loaded .380 caliber handgun.
Sweeney was prohibited from possessing either a firearm or ammunition by virtue of multiple felony convictions, including possession of a controlled substance, possession of drug paraphernalia, aggravated assault, and felon in possession of a firearm.
The charge of felon in possession of a firearm and ammunition carries a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Minot Police Department, the Ward County Sheriff’s Office and the North Dakota Department of Corrections and Rehabilitation – Parole and Probation Services.
Sentencing for Sweeney has not been scheduled.
Assistant U.S. Attorney David Hagler is prosecuting the case.
McLaughlin Man Sentenced for Assaulting A Federal Officer and Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Assaulting, Resisting and Impeding a Federal Officer, and Domestic Assault by a Habitual Offender was sentenced on June 16, 2014, by U.S. District Judge Charles B. Kornmann.
Daniel Hoisington, age 33, was sentenced to 12 months in custody for assaulting a federal officer, and 37 months in custody for committing an act of habitual domestic violence, with the sentences to run concurrently. Hoisington was also sentenced to 3 years of supervised release and a $125 special assessment to the Federal Crime Victims Fund.
Hoisington was indicted by a federal grand jury on April 12, 2013. He pled guilty on November 18, 2013.
The conviction stems from two separate incidents. The first incident occurred on July 28, 2012, when Hoisington struck the victim repeatedly on her face and legs, grabbed her wrists, and threw her on the ground where he began to strangle her. Eventually Hoisington stopped, picked her up, threw her on a bed, and continued strangling her, which caused the victim to choke and cough. The victim had noticeable bruising to her neck when law enforcement interviewed her.
Hoisington had been previously convicted in tribal court on four separate occasions for offenses that would be, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
The second incident occurred on March 8, 2013, when a Bureau of Indian Affairs (BIA) officer was dispatched to a house in McLaughlin for a violation of a no contact order. The victim notified law enforcement that she had received several threatening phone calls from a specific residence in McLaughlin. The responding BIA officer, along with a Corson County Deputy, found Hoisington at the location relayed to them by the victim. Hoisington was combative toward the officers, tensing and bracing his arms as the officers were attempting to handcuff him, ultimately striking one of the officers in the head with the back of his head as he was being escorted out of the residence. Hoisington also yelled obscenities and threatened to kill the officers.
This case was investigated by the Federal Bureau of Investigation, along with the BIA Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case. Hoisington was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Man Charged with Assaulting a Border Patrol OfficerRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Felix Santos, 41, has been arrested and charged by criminal complaint with assaulting an officer of the United States. The charge carries a maximum penalty of eight years in prison and a $250,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on June 15, 2014, a U.S. Border Patrol Agent was flagged down by an employee of the Sheraton Hotel on Third St. in Niagara Falls, N.Y. The employee indicated that he needed assistance because the defendant would not leave the premises of the hotel, despite being asked to do so multiple times.
Outside of the hotel, the uniformed border agent identified himself to Santos who, according to the complaint, immediately began to shout at the border agent and hotel employee. The border agent asked the defendant to calm down and produce his residency paperwork. Santos turned over his documents to the border agent who then returned to his vehicle to call dispatch and check the validity of the information.
Before the border agent could call dispatch, Santos approached the vehicle and continued shouting. The border agent told the defendant to leave the premises multiple times, and during one of those requests, Santos put his hands on the agent’s chest and pushed him. The border agent subdued Santos and placed him in handcuffs. The defendant was taken into custody by the Niagara Falls Police Department. The complaint further states that the border agent suffered a minor abrasion and a bruised knee.
The defendant made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy. He is being held pending a detention hearing on June 23, 2014.
The criminal complaint was the result of an investigation by the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Malden Man Pleads Guilty to Tax CrimesRead the Press Release
BOSTON – A Malden man pleaded guilty today to a number of tax crimes involving the filing of tax returns which failed to report income he had received in the name of a deceased relative.
Mark R. Fisette, 54, pleaded guilty to tax evasion and four counts of filing false tax documents. U.S. District Judge Denise J. Casper scheduled sentencing for Oct. 2, 2014 at 2:00 pm.
Fisette worked as a freelance photographer for various weekly and daily newspapers, and had not timely filed or paid his income taxes. When state and federal taxing authorities began collection efforts, including seizing a paycheck, Fisette provided the newspaper distributor with the name and Social Security number of a deceased relative for future payments for Fisette’s photography services. Fisette filed false income tax returns and a false financial statement which did not report the income he received in the dead relative’s name.
Fisette faces a maximum sentence of five years in prison and three years of supervised release on the charge of tax evasion, and three years in prison and one year of supervised release for the charge of filing false tax documents. Both carry a maximum fine of $250,000 or twice the gain or loss, whichever is greater.United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Lower Brule Man Sentenced for Possession of Firearm by A Prohibited PersonRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on June 16, 2014, by U.S. District Judge Roberto A. Lange.
Caleb Mills, age 25, was sentenced to 17 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. He also forfeited $350 and a firearm.
Mills was indicted by a federal grand jury on May 15, 2013, for Possession with Intent to Distribute a Controlled Substance Analogue, Use of a Communication Facility in Causing or Facilitating the Commission of a Felony under the Controlled Substances Act, and Possession of a Firearm by a Prohibited Person. He pled guilty to Possession of a Firearm by a Prohibited Person on March 4, 2014.
The conviction arose from a January 2013 incident when Mills was arrested for driving without a license. In his vehicle, Mills had a FedEx package addressed to him with a return address from a company that law enforcement recognized as a distributor of synthetic marijuana. Mills consented to a search of the package and law enforcement discovered that the package contained a controlled substance analogue. The defendant also consented to a search of his residence that resulted in the discovery of controlled substances, drug paraphernalia, and a .44 magnum revolver. Mills is an unlawful user of controlled substances, and the firearm was in his possession and had been shipped in interstate commerce.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. The case was prosecuted by Assistant U.S. Attorney Jay Miller.
Mills was remanded to the custody of the U.S. Marshal’s Service to begin serving his sentence.
Justice Department and Consumer Financial Protection Bureau Reach $169 Million Settlement to Resolve Allegations of Credit Card Lending Discrimination by GE Capital Retail BankRead the Press Release
The Department of Justice and the Consumer Financial Protection Bureau (CFPB) today announced a settlement to resolve allegations that GE Capital Retail Bank, known as of this month as Synchrony Bank, engaged in a nationwide pattern or practice of discrimination by excluding Hispanic borrowers from two of its credit card debt-repayment programs. The settlement resolves claims by the department and the CFPB that GE Capital violated the Equal Credit Opportunity Act (ECOA) by excluding borrowers who indicated that they preferred communications to be in Spanish or had a mailing address in Puerto Rico from two credit card debt-repayment programs. The agreement is a joint fair lending enforcement action by the department and the CFPB and is the federal government’s largest credit card discrimination settlement in history.
The settlement provides $169 million in relief to approximately 108,000 borrowers in the form of monetary payments and the reduction, or complete waiver, of borrowers’ credit card balances. GE Capital itself identified and reported the discrimination to the CFPB, was proactive in taking steps toward providing relief to affected borrowers, and has worked closely with the department and the CFPB to further identify and compensate victims of the discrimination. Specifically, GE Capital has already provided the benefits of the offers or their equivalent value to approximately 84,000 borrowers, totaling $131.8 million in relief. Following the settlement, the bank will provide the remaining $37 million in payments, reductions and waivers to affected borrowers.
“The blatant discrimination that occurred here is unlawful and will not be tolerated,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Borrowers have the right to credit card terms that do not differ based on their national origin, and the settlement today sends the message that the Justice Department can and will vigorously enforce the law against lenders who violate that right.”
“Discrimination has no place in the consumer financial marketplace,” said CFPB Director Richard Cordray. “No one should be excluded from credit opportunities simply because of where they live or the language they speak.”
According to the United States’ complaint, the department alleges that from January 2009 to March 2012, GE Capital excluded certain borrowers, due to their national origin, from the “Statement Credit Offer” – a program offering eligible borrowers a credit to their account if they met certain criteria – and the “Settlement Offer” – a program offering eligible borrowers the chance to settle their credit card debt if they paid a percentage of their remaining account balance, ranging from 25 percent to 55 percent. As a result of the exclusions, Hispanic borrowers experienced higher debt levels and longer periods of debt; some of these Hispanic borrowers may have suffered additional consequential economic damages, including increased risk of credit problems, default and repossession; having their accounts closed or “charged-off” and sold to a third party; and other damages, including emotional distress.
GE Capital’s settlement with the department, which is subject to court approval, was filed today in the U.S. District Court for the District of Utah in conjunction with the department’s complaint. GE Capital resolved the CFPB’s claims by entering into a public administrative settlement.
In addition to the $169 million dollars in relief, GE Capital has also agreed to eliminate negative credit reports for affected borrowers that occurred during periods of the alleged discrimination . GE Capital will also take affirmative steps to strengthen its fair lending compliance, and the department commends the efforts the bank has already taken to that end. These steps put in place strong review mechanisms and training to ensure borrowers are not discriminated against because of their national origin.
The department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010 , it has filed or resolved 34 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for more than $1 billion in monetary relief for impacted communities and individual borrowers. The Attorney General’s annual reports to Congress subject to ECOA highlight the department’s accomplishments in fair lending and are available at the division website .
The Civil Rights Division and the CFPB are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring 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 on the task force, visit www.StopFraud.gov .Related Materials:
GE Capital Complaint
Consent OrderJury Convicts Guatemalan National of Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Guatemalan national has been convicted by a federal trial jury of his role in a conspiracy to distribute cocaine and methamphetamine in the Kansas City, Mo., area.
Ismael Aldana Moralez, 41, a citizen of Guatemala residing in Kansas City, was found guilty on Wednesday, June 18, 2014, of participating in a conspiracy to distribute more than 500 grams of cocaine from January 2008 to Oct. 31, 2012.
In addition to the drug-trafficking conspiracy, the jury also convicted Moralez of 11 counts of distributing cocaine, one count of being an illegal alien in possession of ammunition, one count of illegally entering the United States and one count of using a telephone to facilitate the distribution of cocaine.
Five co-defendants have pleaded guilty. Jose Octavio Franco Ortega, 39, and Alfredo Jesus Chavez Portillo, also known as “Martin,” 47, both citizens of Mexico; Agustin AJ Ixcoy, also known as “Chino,” 40, a citizen of Guatemala residing in Independence, Mo.; and Ronny Mazariegos, 41, a citizen of El Salvador, have pleaded guilty to their roles in the drug-trafficking conspiracy. Ixcoy and Mazariegos also pleaded guilty to money laundering and must forfeit $25,000 to the government. Emilio Estrada Rodriguez, 60, a citizen of Mexico residing in Sedalia, Mo., was sentenced to 10 years in federal prison without parole after pleading guilty to possessing methamphetamine with the intent to distribute.
Evidence introduced during the trial indicated that investigators utilized undercover officers and cooperating sources to conduct controlled drug buys, as well as various means of surveillance. During the trial, the jury heard testimony that Moralez supplied ounce quantities of cocaine to conspirators Mazariegos and Ixcoy, who in turn distributed to others in the Kansas City metropolitan area.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 90 minutes before returning the guilty verdicts to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, June 16, 2014.
Under federal statutes, Moralez is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. 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. Attorneys Rudolph R. Rhodes, IV, and Brent Venneman. It was investigated by the Kansas City, Mo., Police Department and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Juneau Man Indicted by Federal Grand Jury for Theft of Labor Union FundsRead the Press Release
Anchorage, Alaska- A Juneau man was indicted by a federal grand jury in Anchorage for embezzlement of labor union assets.
United States Attorney Karen L. Loeffler announced that Jonathan H. Smith, 42, of Juneau, Alaska, was charged in a one-count indictment that between April 16, 2007 and May 8, 2012, while acting as a Financial Secretary employee and officer of LU 2247, did embezzle and unlawfully convert to his use money, funds, property and other assets of LU 2247 totaling approximately $40,000.00.
The defendant was arraigned before Magistrate Judge Leslie C. Longenbaugh on June 19, 2014, and was ordered released with conditions pending trial. Trial is currently scheduled for August 24, 2014.
According to Assistant U.S. Attorney Jack Schmidt, Smith faces a maximum sentence of five years of imprisonment, a $250,000 fine, and up to 3 years of supervised release for the embezzlement of labor union funds. The actual sentence of the defendant will depend on the actual circumstances of the case and the criminal history, if any, of the defendant.
The case was investigated by special agents of Department of Labor.An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
June Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 29 indictments charging 33 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Mario Aguilar, age 44, of Council Bluffs, Iowa, is charged with illegal reentry into the United States on or about May 13, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Miguel Ajanel, age 32, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about May 21, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Mario Alvarado-Velasquez, age 59, of Omaha, is charged with illegal reentry into the United States on or about June 2, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Julio Balderas-Hernandez, age 27, of Omaha, is charged with illegal reentry into the United States on or about June 6, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Fulgencio Betancourt-Labra, age 28, of Omaha, is charged with illegal reentry into the United States on or about May 17, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Dionisio Browder, age 34, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine on or about May 28, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Browder with distribution of a mixture or substance containing a detectable amount of methamphetamine on or about May 28, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Leon Francis Duffey, age 62, of Lake Worth, Florida, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute less than 50 kilograms of a mixture or substance containing a detectable amount of marijuana from an unknown date but at least as early as November 28, 2013, and continuing to on or about November 29, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 2 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to $79,000.00 in United States currency seized from the defendant’s vehicle on November 29, 2013, should be forfeited to the United States.
* Juan Esparza-Gomez, age 39, of Omaha, is charged with illegal reentry into the United States on or about June 5, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Christpher H. Freemont, age 42, of Winnebago, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with domestic assault by a habitual offender on or about April 27, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Freemont with assault resulting in substantial bodily injury on or about April 27, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Victor Galaviz-Calderon, age 62, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about May 20, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Evaristo Gabino Gonzalez, age 29, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine on or about June 10, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Gonzalez with possession with intent to distribute crack cocaine and possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about June 10, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Lance L. Bartling, Jr., age 21; Jordan A. Gregory, age 23; Lavonte L. Prince, age 21; and Aaron R. Russell, age 23; all of Omaha, are charged in a multiple-count Indictment. Count I of the Indictment charges the defendants with conspiracy to commit bank robbery on or about May 30, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II of the indictment charges the defendants with bank robbery of the Bank of Bennington, 15645 Spaulding Street, Omaha, Nebraska, on or about May 30, 2014. The maximum possible penalty if convicted is 25 years imprisonment, a fine of $250,000, a 5 year term of supervised release, and a $100 special assessment. Count III of the indictment charges the defendants with use of a firearm during the bank robbery of the Bank of Bennington on or about May 30, 2014. The maximum possible penalty if convicted is 7 years consecutive to any other term of imprisonment, a fine of $250,000, a 5 year term of supervised release, and a $100 special assessment. Count IV of the indictment charges Gregory with being a felon in possession of a firearm on or about May 30, 2014 The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Javier Guzman, age 37, of Omaha, is charged with illegal reentry into the United States on or about May 15, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Gregory I. Hunt, age 26, of Fremont, Nebraska, is charged with being a drug user in possession of a firearm on or about April 23, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, 3 year term of supervised release, and a $100 special assessment.
* Rodrick Lockett, age 33, of Omaha, is charged with possession with intent to distribute 28 grams or more of a mixture or substance containing crack cocaine on or about May 18, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Frederick Merrick, age 37, of Winnebago, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession of a mixture or substance containing a detectable amount of methamphetamine on or about January 19, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $1,000,000 fine, a 1 year term of supervised release, and a $100 pecial assessment. Count II of the Indictment charges Merrick with possession with intent to distribute a mixture or substance containing a detectable amount of methamphetamine on or about April 26, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jeffrey Negus, age 52, and Gregory Negus, age 58, both of Omaha, are charged with conspiracy to commit mail fraud and conspiracy to embezzle from a health care benefit program, five counts of mail fraud and one count of theft from an employee healthcare plan. The indictment alleges the defendants, in their capacities as owners and officers of Negus-Sons, Inc., and Netal, Inc., entered into construction contracts which included federally-funded prevailing wage provisions. The construction contracts required payment of benefit contributions to employee pension and health benefit plans. It is alleged the defendants failed to pay the employee benefit contributions in the approximate amount of $708,741.56, and instead used the money for other purposes. It is alleged that in effort to conceal defendants’ failure to pay the employee benefit contributions, defendants directed the mailing of false and misleading payroll reports, which certified that the employee benefits were being made. The maximum possible penalty if convicted of the conspiracy charge is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. The maximum possible penalty if convicted of the mail fraud counts is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. The maximum possible penalty if convicted of the theft charge is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release.
* Jesus Olivares-Ulloa, age 49, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about May 20, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Pablo Augustine Pablo-Mateo, age 37, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about January 16, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ervin Ramirez-Rojas, age 27, is charged with illegal reentry into the United States on or about April 19, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Alix Ramirez-Salgero, age 31, of South Sioux City, Nebraska, is charged with illegal reentry into the United States on or about May 28, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Horacio Rivera-Urias, age 42, is charged with illegal reentry into the United States on or about March 11, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Sergio Jesus Rodriguez-Serrano, age 25, of Lexington, Nebraska, is charged with illegal reentry into the United States on or about May 26, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Tito Federico Silva-Bravo, age 29, of Omaha, is charged with illegal reentry into the United States on or about June 4, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* John Sutton, Jr., age 48, of Omaha, is charged with theft of Government funds from the Social Security Administration beginning on or about May 28, 2010, and continuing through on or about February 19, 2014, by receiving payments which he knew he was not entitled, having a value of approximately $37,967.00. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.
* Efren Tiburcio-Garcia, age 36, of Fairbury, Nebraska, is charged with illegal reentry into the United States on or about April 13, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Randall W. Toothaker, age 57, of Lincoln, is charged with theft of Government property from the United States Department of Veteran Affairs on July 26, 2013. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.
* David Joel Welch, age 63, of Omaha, is charged with theft of Government funds from the Social Security Administration beginning on or about May 1, 2011, and continuing through on or about January 3, 2014, by receiving payments which he knew he was not entitled, having a value of approximately $34,877.00. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.
* Norma Zunzunegui, age 71, of Omaha, is charged with theft of Government funds from the Social Security Administration beginning on or about November 1, 1987, and continuing through on or about March 30, 2014, by receiving payments which she knew he was not entitled, having a value of approximately $174,643.20. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.Houston Man Charged with Biofuels Fraud SchemeRead the Press Release
A federal grand jury in Houston, Texas, today indicted Philip Joseph Rivkin, a/k/a Felipe Poitan Arriaga, for offenses involving a federal renewable fuel program that allegedly netted him more than $29 million, the Justice Department’s Environment and Natural Resources Division announced. The 68-count indictment against Rivkin, 49, of Houston and most recently, Guatemala City, Guatemala, includes allegations of wire fraud, mail fraud, Clean Air Act false statements, and money laundering.
The indictment was unsealed late Thursday following Rivkin’s initial appearance in federal court in Houston. He was arrested on Wednesday evening when he arrived in Houston from Guatemala, which had deported him earlier in the day after learning that he had fraudulently secured Guatemalan citizenship.
The Energy Independence and Security Act of 2007 created or extended several federally-funded programs that created monetary incentives for the production of renewable fuels, including biodiesel, and to encourage the use of such fuels in the United States. Authorized biodiesel producers and importers could generate and attach credits—known as “renewable identification numbers” or “RINs”—to biodiesel they produced or imported. Because certain companies need RINs to comply with regulatory obligations, RINs have significant market value.
The indictment alleges that beginning around February of 2009, Rivkin operated and controlled several companies in the fuel and biodiesel industries, including Green Diesel LLC, Fuel Streamers Inc., and Petro Constructors LLC, all based in Houston. It is alleged that Rivkin claimed to produce millions of gallons of biodiesel at the Green Diesel’s Houston facility and then generated and sold RINs based upon this claim. In reality, no biodiesel was ever produced at the Green Diesel facility. The indictment alleges that this scheme allowed the defendant to generate approximately 45 million RINs that were fraudulent, which were then sold to companies that needed to obtain them and resulted in millions of dollars in sales. Rivkin is also alleged to have caused fraudulent tax credit claims based on fictitious biodiesel production.
The indictment goes on to allege that the defendant created false records and made false statements to conceal his fraudulent claims of biodiesel production, importation and RIN generation. Finally, the indictment alleges that the defendant laundered the proceeds of his crimes, using banking institutions and complex financial transactions to benefit from the illegal funds he received, and to attempt to protect these funds from government enforcement. The indictment includes a notice of forfeiture to include: cash in excess of $29 million; three vehicles including a Lamborghini, Maserati, and a Bentley; a Canadair LTD airplane; and millions of dollars worth of artwork that was previously seized from Rivkin in 2012 and is now included in a civil action for forfeiture.
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The collaborative investigation that led to today’s indictment and yesterday’s arrest was the result of work by EPA’s Criminal Investigation Division, the United States Secret Service, Internal Revenue Service Criminal Investigation, and Homeland Security Investigations. The Guatemalan Special Investigations Unit worked with federal investigators to uncover the fraudulent nature of Rivkin’s Guatemalan citizenship, which led to his deportation back to the United States.
The case is being prosecuted by Trial Attorney Leslie E. Lehnert of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.Home Healthcare Business Owner Pleads Guilty to Employment Tax ChargeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI, OHIO – Peggy Dossman, 42, of Lawrenceburg, Indiana, pleaded guilty to one count of willfully failing to pay over employment taxes to the Internal Revenue Service (IRS). Dossman faces a maximum of five years in prison and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, and James Vanderberg, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General announced the guilty plea entered today before Chief U.S. District Judge Susan J. Dlott.
According to court documents, between 2003 and 2010 Dossman was a partner in a home health care business known as Southwest Home Healthcare. During the 2008 and 2009 income tax years, Dossman and her partner deducted and collected income taxes and Federal Insurance Contributions Act (FICA) taxes from the wages of the employees of Southwest Home Healthcare, but failed to remit those employment taxes to the IRS.
Dossman agreed to pay restitution to the IRS in the amount of $352,472.77 for the employment taxes not remitted to the IRS for the first and second quarters of 2008 and for all four quarters of 2009. In addition, Dossman agreed to pay restitution to the State of Ohio in the amount of $6,573.14.
Dossman was released on bond, pending sentencing, on a date to be determined by Judge Dlott.
On May 13, 2014, Gina Kerth, 45, of Harrison, Ohio, who was also a partner in Southwest Home Healthcare, pleaded guilty before Senior U.S. District Judge Herman J. Weber to one count of willfully failing to pay over employment taxes to the IRS. Kerth was released on bond and a sentencing date was set for September 10, 2014.
"IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees," stated Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
This case was prosecuted by Assistant United States Attorney Timothy S. Mangan and was investigated by special agents of IRS-Criminal Investigation and the U.S. Department of Labor.
###Highland Heights Man Indicted for Sending Letter to IRS Containing White PowderRead the Press Release
A Highland Heights man was indicted after sending a letter containing white powder to the Internal Revenue Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
John T. Buchak, 27, was charged with one count of threatening use of a weapon of mass destruction. Buchak sent a letter via the U.S. Mail to the Internal Revenue Service on March 31, 2014, that contained white powder, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Chelsea Rice following an investigation by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Harrisburg Health Care Provider Charged Federally with Medicaid FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg-area health care services provider was charged on June 18th by a federal grand jury with making false statements relating to health care matters, money laundering, and identity theft.
According to U.S. Attorney Peter Smith, on Wednesday, a federal grand jury in Harrisburg returned a 34-count indictment charging that between 2010 and 2014 Rose Umana, 47, Mechanicsburg, the owner and operator of Vision Healthcare Services, Inc., 4113 Linglestown Road, Harrisburg, created false identification documents and fictitious occupational licenses for workers not licensed at the level represented on the license. Umana then allegedly submitted bills to Medicaid for medical services supposedly provided by the workers, billed Medicaid for services provided by someone other than the person claimed to be the provider, and billed Medicaid for services not provided or provided by someone not qualified to provide the service.
In addition, the Grand Jury charged that Umana conducted at least 32 monetary transactions totaling $673,733 with proceeds derived from the criminal activity. The indictment also alleges that funds totaling approximately $307,000 in three bank accounts held by Umana are forfeitable to the government.
Umana appeared today before U.S. Magistrate Judge Susan E. Schwab. She was ordered released and to be under electronic monitoring. Trial is scheduled for August 4, 2014 before Senior U.S. District Court Judge Sylvia H. Rambo.
Medicaid is the joint federal–state program that provides health care and nursing home coverage to low asset/income individuals. Medicaid in Pennsylvania is administered by the Department of Public Welfare. Vision Healthcare Services, Inc., is a medical staffing company and home care services provider servicing Dauphin, Cumberland, Perry and York Counties and has been enrolled under Medicaid since 2006.
“Those who steal from government programs such as Medicaid are stealing from all of us,” said Attorney General Kathleen G. Kane. “They will be held accountable.”
“We trust that Medicaid Home Care companies will do the right things; bill for services that they actually provide and use properly trained professionals to deliver needed care” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the United States Department of Health and Human Services in Philadelphia. “We will continue to work energetically with our partners to investigate those that are accused of stealing health care dollars and mistreating Medicaid recipients.”
This case is the result of a cooperative investigation by the Office of Inspector General, U.S. Department of Health and Human Services; Internal Revenue Service Criminal Investigations; and the Medicaid Fraud Control Section of the Pennsylvania Office of Attorney General. Special Assistant U.S. Attorney Heather Albright of the Pennsylvania Attorney General’s Office, and Assistant U.S. Attorney Christy H. Fawcett are assigned to the case.
False statements relating to health care matters carries a maximum term of imprisonment of five years, the money laundering offense is punishable by up to 10 years’ imprisonment, and identity theft carries a two-year mandatory minimum sentence that must be served consecutively to any other sentence.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Fresno Man Charged with Sex Trafficking Under-Aged GirlRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Tryvell Powell, 33, of Fresno, charging him with sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, on June 3, 2014, a relative of a teenaged runaway reported to Fresno police that pictures of her were posted online in advertisements for prostitution. Fresno detectives used the advertisements to contact the girl and arrested Powell. Powell had prostituted her for five months. He forced her earn $300 a day, all of which he kept, and he threatened to kill her and her unborn child if she left him.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
Powell is scheduled to be arraigned at 1:30 p.m. in federal court in Fresno before U.S. Magistrate Judge Gary S. Austin on Friday, June 20, 2014.
If convicted, Powell faces a minimum penalty of 15 years to life in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.