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Wednesday 23 April 2014
Ex-NBA Player Chris Herren Visits Ohio ValleyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistHerren speaks to Park, John Marshall students about dangers of drugs
WHEELING, WV – Former NBA player Chris Herren spoke to students at Wheeling Park High School and John Marshall High School today about the dangers of drugs and his personal battle with addiction.
Herren spoke to over 2,000 area students this morning about how substance abuse derailed his basketball career. The audiences at the schools learned that Herren was a high school All-American at Durfee High in Massachusetts before starring at Boston College and Fresno St. He went on to be drafted by the Denver Nuggets of the NBA, and then was traded to the Boston Celtics, where he played for several years. Herren described to students how his abuse of alcohol, cocaine, and then ultimately heroin nearly ended his life. He has been sober since 2008 and now tours the country speaking to young people about his struggles.
Herren, whose story was featured as part of ESPN’s 30 for 30 series, took questions from the students at each school following his talk. He also posed for a special picture with the members of Drug Free Clubs of America at Wheeling Park and John Marshall.
Wheeling Park Principal Amy Minch discussed the importance of bringing in a speaker such as Herren to discuss substance abuse.
“We regularly educate our students about the perils of drugs but this takes it to a whole new level,” said Minch. “When someone like Chris Herren speaks the kids sit up and listen and that’s what we want.”
John Marshall Principal Rick Jones concurred.
“When this opportunity was presented to me I immediately signed on,” said Jones. “It’s my responsibility as an educator to seek out programs like this one so that our students continue to learn about what could happen to them if they make the wrong choice.”
The committee that organized and planned Herren’s visit was made up of representatives from the Marshall County Family Resource Network, the Ohio County Substance Abuse Prevention Coalition, John Marshall High School, Wheeling Park High School, Paree Insurance, and the U.S. Attorney’s Office. The cost of bringing Herren to the area was covered through donations from community partners of the event.
Herren’s visit is part of Project Future, a U.S. Attorney-led initiative designed to educate parents and children about the dangers of prescribed medicine, synthetic drugs, and other illegal drugs that are plaguing communities in West Virginia. Project Future is a year-round program and is available to all schools within the Northern District of West Virginia.
Doctor Pleads Guilty to Prescribing Drugs for Sex, MoneyRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Dr. Joseph Ngui Mwau Ndolo, 60, of Fairhope, Alabama pleaded guilty to three federal drug charges. Ndolo, an internal medicine physician, ran a “pill mill” from 2008 to 2013 out of his private clinic, Premier Internal Medicine, P.C., in Fairhope. He prescribed patients drugs outside the usual course of professional practice in exchange for sex, graphic communications, money and favors from his patients. Ndolo’s cocktail of medications consisted of schedule II controlled substances such as oxycodone and numerous other schedules II – V substances. Some patients referred to Ndolo’s clinic as a “candy store” for drugs. He put his patients’ safety in jeopardy by, for instance, writing medically needless prescriptions without conducting basic patient examinations. As part of his agreement with the United States, Ndolo shall surrender his medical license. He faces a maximum penalty of twenty years in prison for each drug charge. His sentencing is scheduled for August 22, 2014.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Gregory Bordenkircher and Special Assistant United States Attorney Sinan Kalayoglu.
District Man Sentenced to Four Years in Prison for September 2013 Credit Union Robbery- Defendant Fled on Metro Train Following Robbery -Read the Press Release
WASHINGTON – Norman Ellis, 54, of Washington, D.C., was sentenced today to four years in prison for robbing a credit union in September 2013, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI=s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Ellis pled guilty to one count of bank robbery in January 2014 and was sentenced today by the Honorable Richard J. Leon in the U.S. District Court for the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. He also was ordered to pay $2,481 in restitution.
According to a factual proffer of evidence presented at the time of the guilty plea, on the morning of Sept. 21, 2013, Ellis entered a Signal Financial Credit Union, in the 1400 block of Irving Street NW, approached a teller, handed over a note demanding money, and gestured as if he had a gun. After the teller handed Ellis $2,481 in U.S. currency, Ellis fled the credit union. Moments following the robbery, Ellis entered the Columbia Heights Metro station, and removed his jacket and baseball cap before boarding a Metro train and fleeing the area.
Ellis was arrested Oct. 18, 2013 and, during a search of his home, law enforcement recovered the clothing he wore during the robbery.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, and Chief Lanier commended the investigative work of the Special Agents from the FBI’s Washington Field Office who worked on the case and the entire joint FBI/MPD Violent Crimes Task Force.
In addition, they acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Legal Assistant Jessica Moffatt and Paralegal Specialist Starla Stolk, and Assistant U.S. Attorney Catherine K. Connelly, of the Asset Forfeiture and Money Laundering Section. Finally, they thanked Assistant U.S. Attorney David B. Kent, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the case.
14-094District Man Sentenced to Five Years in Prison for July 2013 Attempted Bank RobberyDefendant Committed Offense While on Supervised Release for String of 19 Bank Robberies in D.C., Maryland, and Virginia in 2003Read the Press Release
WASHINGTON – Calvin Kinard Adams, 33, of Washington, D.C., was sentenced today to five years in prison for attempting to rob a bank in July 2013, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Adams pled guilty to one count of attempted bank robbery in January 2014 and was sentenced today by the Honorable Richard J. Leon in the U.S. District Court for the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release.
According to a factual proffer of evidence presented at the time of the guilty plea, on the morning of July 3, 2013, Adams entered a Wells Fargo Bank, in the 3200 block of Pennsylvania Avenue SE, approached a bank employee, and handed over a note demanding money. As the teller attempted to press the silent alarm, Adams fled the bank.
Adams was arrested on Oct. 18, 2013. At the time of the offense, Adams was on supervised release following his 2003 convictions for a string of 19 bank robberies he committed in 2003 in the District of Columbia, Maryland, and Virginia. In that case, the Honorable Paul L. Friedman in the U.S. District Court for the District of Columbia sentenced Adams to 11 years in prison followed by three years of supervised release. Adams had been on supervised release for less than six months when he committed the attempted bank robbery in this case.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, and Chief Lanier, commended the investigative work of the Special Agents from the FBI=s Washington Field Office and the FBI Laboratory Latent Print Operations Unit who worked on the case, and the entire joint FBI/MPD Violent Crimes Task Force. In addition, they acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Legal Assistant Jessica Moffatt and Paralegal Specialist Starla Stolk. Finally, they thanked Assistant U.S. Attorney David B. Kent, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the case.
14-095Dickinson Man Sentenced in Medina Bank RobberyRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 23, 2014, Satrone Rashard Boyd, 38, of Dickinson, N.D., was sentenced before U.S. District Judge Ralph R. Erickson to serve 7 ½ years in prison for bank robbery.
On Oct. 25, 2013, at approximately 9:30 a.m., Boyd and codefendant Rendell Charles Hardy forcefully robbed Northland Financial in Medina, N.D. wearing clown masks. After quickly approaching the teller, Boyd demanded money from a bank employee after which the two men fled the scene. Boyd and Hardy later changed vehicles southwest of Medina, N.D., before being identified at a truck stop near the Star Lite Motel in Jamestown, N.D. A surveillance video showed Boyd throwing the masks and a set of keys into the dumpster by the Star Lite Motel. Boyd was later apprehended in Fargo, N.D. Sentencing for Hardy is set for July 1, 2014, at 2:15 p.m. in United States District Court.
Judge Erickson also sentenced Boyd to serve three years of supervised release, to pay $2,670 in restitution and a $100 special assessment to the Crime Victims Fund.
The case was investigated by the Federal Bureau of Investigation together with the Stutsman County Sheriff’s Office, the North Dakota Highway Patrol, the Dickinson Police Department and the Fargo Police Department.
Assistant U.S. Attorney Keith Reisenauer prosecuted the case.
Deming Man Pleads Guilty to Federal Marijuana Trafficking ChargeRead the Press Release
ALBUQUERQUE – Crispin Fierro, 32, of Deming, N.M., pleaded guilty yesterday afternoon in Las Cruces federal court to a marijuana trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Fierro initially was charged based on a criminal complaint alleging that he possessed 456 kilograms (1004.5 pounds) of marijuana with intent to distribute in Luna County, N.M., on March 4, 2013. Fierro subsequently was indicted on that same charge.
During yesterday’s proceedings, Fierro pleaded guilty to the indictment and admitted that on March 4, 2013, he possessed approximately 456 gross kilograms of marijuana which he intended to deliver to another person. In his plea agreement, Fierro acknowledged that he was the driver and sole occupant of a flatbed truck in which he was transporting the marijuana. Fierro further admitted that the marijuana was found by U.S. Border Patrol agents when they pulled him over on New Mexico State Highway 9 in Luna County.
Fierro has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Fierro faces a federal prison sentence of not less than five years and not more than 40 years.
This case was investigated by the Deming office of Homeland Security Investigations and the Deming Station, El Paso Sector of the U.S. Border Patrol, and is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley of the U.S. Attorney’s Las Cruces Branch Office.Charleston Heroin Dealer Sentenced to Federal PrisonRead the Press Release
Defendant Brandon “Fresh” Solomon was prosecuted as part of Charleston’s West Side Drug Market Intervention initiative
CHARLESTON, W.Va. – A Charleston man was sentenced to six months in federal prison for distribution of heroin, U.S. Attorney Booth Goodwin announced today. Brandon Christopher Solomon, 19, also known as “Fresh,” sold heroin to a police informant three separate times in August of 2013. One sale took place inside the Charleston Town Center Mall and two others took place on the West Side of Charleston. Solomon previously pleaded guilty to distribution of heroin in December of 2013. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Solomon was prosecuted as part of the Charleston area’s Drug Market Intervention (DMI) initiative. Solomon was designated a member of the DMI A-list comprised of the most serious offenders identified in the initiative. The DMI initiative was launched in February 2012 by U.S. Attorney Booth Goodwin and Charleston Police Chief Brent Webster, in collaboration with other federal, state, local law enforcement agencies and leaders representing several West Side community development organizations. A continuation of the DMI initiative was announced in December of 2013 in Charleston. Over the course of the most recent DMI initiative, the Charleston Police Department and other law enforcement agencies conducted undercover operations and completed investigations that resulted in federal charges being filed against thirteen individuals.
The DMI strategy also included a staged community intervention held at the New Covenant Missionary Baptist Church on Charleston’s West Side. The community intervention meeting offered a rare second chance for five low-level, non-violent offenders to end their criminal activity and avoid being prosecuted, if a strict set of guidelines set by law enforcement are obeyed. The December 12, 2013 community intervention call-in meeting was attended by offenders’ relatives, concerned citizens, and faith-based leaders from the West Side community. The call-in meeting was coordinated and attended by federal, state and local law enforcement officials.
DMI, first implemented in High Point, North Carolina, and replicated with success in several other cities, including Huntington, W.Va., is a strategic problem-solving initiative aimed at closing down drug markets that breed crimes of violence and disorder.
Cameron Park Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. —Kendal Mychael Lobb, 32, of Cameron Park, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison and a $250,000 fine for receiving child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, in July 2012, law enforcement investigators identified Lobb’s computer as a source of online child pornography. Among the files being offered were videos of prepubescent children being sexually assaulted by adults. Law enforcement officers executed a search warrant at Lobb’s residence and found more than 100 images and 300 videos of child pornography. These files had been downloaded by the defendant through the Internet between April 12, 2003, and October 5, 2012.
This case was the product of an investigation by the Sacramento Internet Crimes Against Children (ICAC) task force, a federally and state funded task force managed by the Sacramento Sheriff’s Department composed of agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Buffalo Man Pleads Guilty to Four Bank RobberiesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Earl Moss, 29, of Buffalo, N.Y., pleaded guilty before Chief U.S. District Court Judge William M. Skretny, to bank robbery and brandishing a firearm in connection with a crime of violence. The charges carry a maximum penalty of life in prison, a fine of $250,000 or both.
According to Assistant U.S. Attorneys John E. Rogowski and Edward H. White, who are handling the case, the defendant robbed four banks in Buffalo and Amherst in 2010 and 2011 including:
o The April 20, 2010, robbery of the Citizens Bank at 3180 Sheridan Drive in Amherst, during which the defendant, wearing women’s clothing, passed the teller a note demanding money. After the teller turned over an amount of money to Moss and shortly after he left the bank, the dye pack in the bank money exploded. The defendant abandoned the money which was recovered by a nearby citizen who took the money back to the bank;
o The April 30, 2010, robbery of the Citizens Bank at 1893 Elmwood Avenue in Buffalo, during which the defendant, again wearing women’s clothing, passed the teller a note reading “no dye packs or I’ll kill you.” The defendant fled the scene after receiving an amount of money;
o The December 24, 2010, armed robbery of the Citizens Bank at 3180 Sheridan Drive in Amherst, during which the defendant, wearing a hooded sweat shirt and sun glasses, waived a silver hand gun and demanded money from the bank tellers. Moss received money from several tellers and ran from the bank. A customer in the bank took pursuit after the defendant and fired four shots from a pistol he had a permit to carry. None of the shots struck Moss and the defendant escaped with the money; and
o The April 18, 2010, armed robbery of the Citizens Bank at 1893 Elmwood Avenue in Buffalo, during which the defendant, again wearing a hooded sweat shirt and sun glasses, waived a silver hand gun and demanded money from the bank tellers. Moss received money from several tellers and ran from the bank.
Moss moved to the Atlanta, Georgia, area after the first two robberies. In early December, 2010, following an armed robbery of a bank in Atlanta, the Federal Bureau of Investigation received information that Moss may be responsible for that robbery as well as the Buffalo area robberies. As a result, the FBI gathered sufficient evidence which resulted in Moss’s arrest two days after the last robbery. The defendant has been incarcerated since his arrest.
“The successful conclusion of this case demonstrates effective, coordinated policing at its best,” said U.S. Attorney Hochul. “As a result, both the community and area financial institutions are now safe from this violent predator.”
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Amherst Police Department, under the direction of Chief John C. Askey, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 20, 2014, at 10:00 a.m. before Chief Judge Skretny.Bryan Woman Heads to Prison in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Yolanda Nowlin, 42, has been ordered to federal prison for 11 years following her multiple convictions in relation to a large health care fraud conspiracy, announced United States Attorney Kenneth Magidson. A federal jury in Houston convicted Nowlin Sept. 4, 2013, following seven days of trial and less than three hours of deliberations.
At the sentencing hearing late yesterday, U.S. District Judge Sim Lake handed Nowlin a total sentence of 132 months in federal prison - 120 months for conspiracy to commit health care fraud to be served consecutively to a 12-month sentence for health care fraud, conspiracy to violate the anti-kickback statute and Social Security fraud. She was further ordered to pay $744,105 in restitution to Medicare and Medicaid and $106,492.10 to the Social Security Administration. In handing down the sentence, Judge Lake noted the fraud occurred over several years, harming beneficiaries, the public and the Medicare and Medicaid systems. Nowlin will also be required to serve three years of supervised release following completion of the prison term.
Nowlin, of Bryan, ran two durable medical equipment companies - Yellabone Medic Care Express Equipment Supply Company and Yellabone Medical Equipment Inc. Nowlin was arrested in December 2012 along with co-defendant Carla Parnell, 51, also from Bryan. Parnell pleaded guilty earlier this year to Social Security fraud and testified against Nowlin at the jury trial. Parnell is scheduled to be sentenced May 15, 2014.
The evidence at trial showed that between July 2003 and December 2009, Nowlin engaged in a scheme to defraud Medicare and Medicaid. Nowlin submitted claims to Medicare and Medicaid for durable medical equipment (DME) and incontinence supplies that were not delivered, not wanted and not needed by Medicare or Medicaid beneficiaries and were often the result of illegal kickbacks. During the alleged conspiracy, Nowlin submitted approximately $3,391,771.90 in claims to Medicare and Medicaid and received $1,108,316.82 for those claims. A total of $744,105 was identified as fraudulently paid.
The evidence at trial also showed that Nowlin paid kickbacks to a large number of recruiters over the course of the scheme in return for the referral of beneficiaries to Yellabone.
Nowlin was additionally convicted of aiding and abetting the theft of government money from the Social Security administration. Nowlin and Parnell concealed Parnell’s employment with Yellabone in order to continue Parnell’s receiving Social Security disability benefits to which she was not entitled.
Previously released on bond, Nowlin was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was the result of a joint investigation conducted by agents from Texas Attorney General’s Office – Medicaid Fraud Control Unit and the Department of Health and Human Services-Office of the Inspector General, Office of Investigations. Special Assistant United States Attorneys Adrienne E. Frazior and Suzanne Bradley prosecuted the case.
Brooklyn Man Charged with Murder to Obstruct Bank Fraud InvestigationRead the Press Release
A nine-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Naquan Reyes with the murder of Nicole Thompson to prevent her from communicating with federal law enforcement officials. Reyes was also charged with bank fraud, bank fraud conspiracy, aggravated identity theft and related offenses. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York, on April 16, 2014.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Brian A. Swain, Acting Special Agent-in-Charge, United States Secret Service, New York Field Office.
As alleged in the indictment and detention memorandum, since 2008, Reyes has perpetrated a scheme to defraud various banks. As part of the scheme, Reyes created counterfeit checks and recruited others to deposit those checks into their and others’ bank accounts. Reyes and his coconspirators then attempted to withdraw the funds from the bank accounts before the banks learned the checks were counterfeit. Among those he recruited to make the deposits was Nicole Thompson. On July 16, 2010, Thompson was arrested by the New York City Police Department in connection with her role in the scheme, and she immediately decided to cooperate with law enforcement. Just eight days after her arrest, on July 24, 2010, Thompson's body, duct taped and wrapped in garbage bags, was found in a dumpster in Landover, Maryland. When Reyes learned of Thompson's plans to cooperate and thereby jeopardize his ongoing fraud scheme, Reyes murdered her and then traveled from New York to Maryland to dispose of her body. Thompson was 24 years old at the time of her murder.
“As alleged, Naquan Reyes sat atop a scheme to defraud multiple banks using counterfeit checks, recruiting others to help perpetrate the scheme. When one of his recruits began to cooperate with law enforcement, Reyes decided that her life was forfeit, and killed her to protect the flow of ill-gotten gains. Today’s arrest should send a message to those who in any way tamper with witnesses to evade detection by law enforcement,” stated United States Attorney Lynch. “We will relentlessly continue our investigation of such individuals until they are brought to justice.” Ms. Lynch expressed her grateful appreciation to the Prince George's County, Maryland Police Department, New York City Police Department, and Bronx County District Attorney’s Office for their significant cooperation and assistance in the investigation.
“Tampering with a witness is a serious crime. Murdering a witness in a vain attempt to obstruct justice is another matter altogether,” stated FBI Assistant Director-in-Charge Venizelos.
“The Secret Service works in concert with federal, state, and local law enforcement to ensure our resources are being targeted to those criminal activities that are of high concern to local communities. We worked closely with the Federal Bureau of Investigation, New York City Police Department, and the Prince George’s County, MD Police Department to bring justice in this case. This investigation is just one example that proves the power of agency partnerships at every level in combating financial crimes,” said Secret Service Acting Special Agent-in-Charge Swain.
The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr., at the federal courthouse in Brooklyn. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Elizabeth Kramer, Elizabeth Geddes, Samuel Nitze, and Karin Orenstein.
The Defendant:
NAQUAN REYES
Age: 29
Brooklyn, NY
E.D.N.Y. Docket No. 14-CR-0227
Brooklyn Fish Dealer Pleads Guilty to Wire FraudRead the Press Release
Alan Dresner, a federally-licensed fish dealer from Brooklyn, N.Y., pleaded guilty today in federal court in Central Islip, N.Y., to federal violations stemming from his role in systematically underreporting fluke (summer flounder) that was being harvested as part of the federal Research Set-Aside (RSA) Program, the Justice Department’s Environment and Natural Resources Division announced.
Alan Dresner pleaded guilty to one count of wire fraud. The scheme involved his personal falsification and internet submission of at least 120 fisheries dealer reports from July 2009 to December 2011, as part of a scheme to defraud the United States of 246,376 pounds of overharvested and underreported fluke valued at $510,000.
As part of the plea deal, Dresner agreed to be subject to between $516,000 and $577,000 in combined fines and restitution. The defendant also agreed to make a $15,000 community service payment to the Cornell Cooperative Extension of Suffolk County in order to pay for the enhancement of fluke habitat through the C.C.E.’s Marine Meadows Program. The jointly proposed sentence includes relinquishment of Dresner’s federal dealer license and a ban on accessing the National Oceanic and Atmospheric Administration’s (NOAA) SAFIS computer system . The court will hear sentencing recommendations regarding non-agreed terms at a hearing set for Oct. 22, 2014.
“Today, Dresner has acknowledged his role in cheating a federal research program for financial gain at the expense of law abiding fishermen,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “He repeatedly misled the government as he schemed to take hundreds of thousands of dollars in illegally harvested fluke. This conviction shows our commitment to protecting this resource for today’s fisherman and future generations.”
“These dealers created the market for these elicit, unreported fish and their willingness to conspire with the harvesters of these fish to no report them completely undermines the system of trying to obtain the best available science to manage this fishery,” said Logan Gregory, Special Agent in Charge of the NOAA Office of Law Enforcement’s Northeast Division. “The Office of Law Enforcement will continue to investigate this issue to conclusion. It's not only important to fisheries management, but also important to the law abiding industry members who rely on the availability of this fish to harvest and sell.”
Alan Dresner is “Fish Dealer X” as that person is identified in the related case of U.S. v. Anthony Joseph. As a federal fish dealer, Dresner had a NOAA permit to purchase fish directly from commercial fishing vessels without having to go through an intermediary. In July 2009, Dresner learned that Anthony Joseph, captain of the F/V Stirs One, was consistently overharvesting fluke through Joseph’s abuse of the RSA Program. By July 2009, Dresner was making regular purchases of illegal fluke from Joseph at the Point Lookout, N.Y., waterfront.
In order to cover his illegal fishing, Joseph would mail falsified fishing logs, known as FVTRs, to NOAA, but falsified FVTRs were just one side of the coin. This is because fish dealers are required to report their purchases to NOAA on an electronic form known as a dealer report. The dealer reports include information such as date of landing, port of landing, catch vessel, corresponding FVTR numbers, commercial grade, species, price, and weight. NOAA utilizes the data in the dealer reports to set quotas and implement other management measures designed to ensure a sustainable fisheries. The dealer reports also serve as a check on the information that is submitted in FVTRs. In other words, in order to effectuate his scheme, Anthony Joseph needed to ensure that corresponding false dealer reports were being submitted that contained the same false information as was contained on the falsified FVTRs. A mismatch would have indicated a serious error or fraud, and would have been a red flag for fisheries managers. Accordingly, during July 2009 to December 2011, the defendant schemed with Anthony Joseph to file at least 120 false dealer reports with NOAA, representing a loss of 246,376 pounds of fluke valued at $510,000. Another part of the scheme involved Dresner paying for legitimate, reported fish with a check, but utilizing cash handoffs to Joseph to purchase the illegal fluke.
The case was investigated by agents of NOAA’s National Marine Fisheries Service, with assistance from the New York State Department of Environmental Conservation Police. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division.Related Materials:
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Plea AgreementBridgeport Man Sentenced to 30 Months in Prison for Distributing CrackRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LAWRENCE BLUE, 36, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 30 months of imprisonment, followed by six years of supervised release, for distributing crack.
In December 2002, BLUE was sentenced by Judge Hall to 92 months of imprisonment and three years of supervised release for possession of a firearm by a previously convicted felon. He was released from federal prison in June 2009.
According to court documents and statements made in court, on March 20, 2012, the U.S. Marshals Service and members of the Connecticut Violent Fugitive Task Force arrested BLUE at his Bridgeport residence on a federal violation of supervised release warrant. On that date, a search of BLUE’s bedroom revealed narcotics, two loaded firearms and approximately $2,500 in cash.
On April 17, 2012, Judge Hall sentenced BLUE to 21 months of imprisonment for violating the conditions of his supervised release stemming from his prior federal conviction.
On October 23, 2013, BLUE pleaded guilty to one count of possession with intent to distribute cocaine base (“crack”).
BLUE has been detained since his arrest in March 2012.
This case was prosecuted by Assistant U.S. Attorney Alina P. Reynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bozeman Man Gets 10 Years for Child PornographyRead the Press Release
The United States Attorney's Office announced that on April 17, 2014, MATTHEW RYAN PETTIT, 30, of Bozeman, was sentenced to a term of 120 months' imprisonment and 20 years supervised release by U.S. District Judge Dana L. Christensen, in connection with his January 2014 guilty plea to possession of child pornography.
Assistant U.S. Attorney Cyndee Peterson told the Court in Missoula that that in April of 2012 a Federal Bureau of Investigation ("FBI") Special Agent determined there was an Internet Protocol address ("IP address") offering known child pornography files for download via the Internet. The agent successfully downloaded video files which depicted child pornography. The agent determined the location of the residence-the home of Matthew Pettit-associated with the IP address, and a search warrant was obtained.
On November 15, 2012, officers conducted a search of the Pettit's residence. Several items were seized including a laptop computer belonging to Pettit and a wireless router which he had installed. Forensic analysis of the seized laptop computer revealed that Pettit's laptop contained files depicting child pornography (a visual depiction of a minor engaged in sexually explicit conduct). Peer-to-peer file sharing clients, with whom images are exchanged, were also discovered on the laptop.
Boone County Man Admits Role in Heroin ConspiracyRead the Press Release
Defendant Caught with Hydrocodone, Cash and Stolen Firearms
CHARLESTON, W.Va. – An Ashford, West Virginia man admitted today that he conspired with others to distribute heroin in and around Boone County, W.Va., announced U.S. Attorney Booth Goodwin. James Harry Barker, 63, pleaded guilty in federal court in Charleston to conspiracy to distribute heroin.
In June of 2013, the U.S. 119 Drug Task Force executed a search warrant at Barker’s home and a bar he operated called “Firebug’s,” both located in Ashford. Officers seized cash and evidence of drug distribution such as drug packing materials. Barker admitted that he sold several hundred heroin “stamps” in the Boone County area from the summer of 2012 through the summer of 2013. He also admitted that the money seized from his home and business came from drug sales.
Barker faces up to 20 years in federal prison when he is sentenced on August 6, 2014.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
The U.S. 119 Drug Task Force conducted the investigation. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
Bismarck Man Sentenced for Child Pornography ChargeRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 23, 2014, Erik E. Cryderman, 47, Bismarck, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of material involving the sexual exploitation of minors. Cryderman pleaded guilty to the charge on Jan. 21, 2014.
Judge Hovland sentenced Cryderman to serve the minimum mandatory 10 years in federal prison, to be followed by 10 years of supervised release. Cryderman was ordered to pay a $100 special assessment to the Crime Victim’s Fund. Cryderman must register as a sex offender.
On March 7, 2012, Cryderman was in possession of visual depictions which showed minors engaging in sexually explicit conduct.
This investigation was conducted by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, and the North Dakota Parole & Probation Office.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Assistant U.S. Attorney Gary Delorme prosecuted the case.
Attorney Pleads Guilty to Stealing Escrow FundsRead the Press Release
ORFOLK, Va. – David R. Flynn, 44, of Norfolk, Va., pleaded guilty today to mail fraud and unlawful monetary transactions.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Field Office in Washington, D.C. (IRS-CI); William Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after the plea was accepted by Senior United States District Judge Henry Coke Morgan, Jr.
Flynn faces a maximum penalty of 20 years in prison for mail fraud and a maximum penalty of 10 years in prison for unlawful monetary transactions when heis sentenced on July 7, 2014.
According to a statement of facts filed with the plea agreement, Flynn, an attorney licensed to practice law in Virginia and owner of Assured Title of Virginia, LLC in Virginia Beach, stole over two million dollars from real estate trust accounts in order to cover up problems with his Wells Fargo escrow account that dated back to 2008. Flynn also used the stolen funds to pay a personal credit card, to travel to tropical destinations, sometimes paying for friends to join him, and on at least one occasion, to charter a private plane.
This case was investigated by the Tidewater Complex Financial Crimes Task Force. Members of the Task Force include the Federal Bureau of Investigation, the Internal Revenue Service, Secret Service and the Postal Inspection Service. Assistant United States Attorney Melissa O’Boyle is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Architect Pleads Guilty in Conjunction with Progreso Bribery SchemeRead the Press Release
HOUSTON - Jesus Bustos, 58, has pleaded guilty to conspiracy, announced United States Attorney Kenneth Magidson.
Bustos was charged in a second superseding federal indictment alleging his participation in a bribe paying scheme in Progreso. Today in Houston federal court, Bustos admitted that from 2004 through 2013, he paid bribes and kickbacks to obtain architectural contracts for his architectural firm IDEA Group LLC on public projects in Progreso and Weslaco.
Bustos admitted he conspired with, and primarily paid these bribes through, an IDEA Group employee to obtain contracts on construction projects with the Progreso Independent School District (PISD) and with the Weslaco Independent School District (WISD). The collective value of the PISD and WISD projects on which Bustos paid bribes was in the millions of dollars.
PISD’s Director of Maintenance and Transportation Jose Guadalupe Vela, Progreso Mayor Omar Vela and PISD Board of Trustees President Michael Vela largely controlled contracting with PISD and directed PISD contracts to those who were willing to pay Vela family members bribes. Jose Vela shared the bribe money with PISD School Board members who were willing to vote for contractors that Jose Vela chose for their willingness to pay bribes.
In Progreso, Bustos paid bribes through his employee to members of the Vela family to obtain contracts on PISD construction projects, to include West Elementary School, Fine Arts Center, North Elementary School and the Science and Technology building. Bustos also personally delivered bribe money to Michael Vela in approximately 2011.
In Weslaco, Bustos paid a bribe through his employee to a WISD school board member in order to obtain a contract on the Mario Ybarra Elementary School Construction project. He paid two bribes through his employee to the school board member at the end of the construction project in order to expedite payment from WISD to IDEA Group.U.S. District Judge David Hittner has set sentencing for July 25, 2014. At that time, Bustos faces up to five years in prison and a possible $250,000 fine.
The case was investigated by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting.
Announcing New Clemency Initiative, Deputy Attorney General James M. Cole Details Broad New Criteria for ApplicantsRead the Press Release
As part of the Justice Department’s new clemency initiative, Deputy Attorney General James M. Cole announced six criteria the department will consider when reviewing and expediting clemency applications from federal inmates.
Under the new initiative, the department will prioritize clemency applications from inmates who meet all of the following factors:
· They are currently serving a federal sentence in prison and, by operation of law, likely would have received a substantially lower sentence if convicted of the same offense(s) today;
· They are non-violent, low-level offenders without significant ties to large scale criminal organizations, gangs or cartels;
· They have served at least 10 years of their prison sentence;
· They do not have a significant criminal history;
· They have demonstrated good conduct in prison; and
· They have no history of violence prior to or during their current term of imprisonment.
“For our criminal justice system to be effective, it needs to not only be fair; but it also must be perceived as being fair,” said Deputy Attorney General Cole. “Older, stringent punishments that are out of line with sentences imposed under today’s laws erode people’s confidence in our criminal justice system, and I am confident that this initiative will go far to promote the most fundamental of American ideals – equal justice under law.”
In December 2013, President Obama commuted the sentences of eight individuals who were sentenced under an outdated regime—many of whom would have already paid their debt to society if they had been sentenced under current law. Since that time, President Obama has said he wants to consider more applications for clemency from inmates who are similarly situated. The Department of Justice, which assists the president in the exercise of executive clemency by reviewing petitions for clemency for federal offenses and making recommendations, is committed to carrying out this important mission and has pledged to provide the necessary resources to fulfill this goal expeditiously.
Outside of this initiative, any inmate can apply for commutation under the standard principles for which executive clemency has been granted historically. This initiative applies to a limited category of petitioners whose clemency applications may be especially meritorious.
Deputy Attorney General Cole also announced Deborah Leff, Acting Senior Counselor for Access to Justice, as the new head of the Office of the Pardon Attorney. Ronald Rodgers, who previously held the position, will assist Leff during a transition period and will then take on another role at the department to be announced at a later date.
“Over the past several years, Ron has performed admirably in what is a very tough job. He has demonstrated dedication and integrity in his work on pardons and commutations,” Cole said.
Deputy Attorney General Cole added that Acting Senior Counselor Leff’s work with the department’s Access to Justice program makes her uniquely qualified to step into the pardon attorney’s role.
“Deborah has committed her career to the very basis of this initiative - achieving equal justice under law,” said Deputy Attorney General Cole. “As Acting Senior Counselor for Access to Justice, her fundamental mission has been to help the justice system deliver outcomes that are fair and accessible to all.”
To facilitate the thorough and rapid review of the new clemency applications this initiative will likely spur, Deputy Attorney General Cole announced that he issued a department-wide call for attorneys willing to help review new petitions. These attorneys will help assess the petitions to determine which fall within the six stringent standards and merit further consideration. Department lawyers will be temporarily assigned to the Pardon Attorney’s Office.
The Bureau of Prisons (BOP) will notify inmates in the coming days about this initiative and the availability of pro bono lawyers from the newly formed Clemency Project 2014. The Clemency Project 2014, which is made up of independent, outside groups as well as federal public defenders, was organized in response to Deputy Attorney General Cole’s Jan. 30, 2014, speech at the New York State Bar Association in which he called for assistance in identifying appropriate clemency petitions under this initiative.
In addition to notifying inmates of this initiative, BOP will provide interested inmates with an electronic survey that will help both pro bono lawyers and Justice Department lawyers to screen the petitions for the Office of the Pardon Attorney to quickly identify whether inmates meet the criteria for the program. BOP case managers will continue to provide inmates assistance with submitting the appropriate paperwork for clemency applications.
Deputy Attorney General Cole sent a letter to all of the 93 U.S. attorneys asking for their assistance in identifying meritorious candidates and notifying them that the Pardon Attorney’s Office will be soliciting their views on petitions that appear to meet the criteria after an initial screening by the lawyers in the Office of the Pardon Attorney.
The new clemency initiative is an outgrowth of Attorney General Holder’s “Smart on Crime” initiative, which is intended to strengthen the criminal justice system, promote public safety and deliver on the promise of equal justice under law.
The Deputy Attorney General’s Office oversees the Office of the Pardon Attorney. The department assists the president in the exercise of executive clemency. Under the Constitution, the president’s clemency power extends only to federal criminal offenses. All requests for executive clemency for federal offenses are directed to the pardon attorney for investigation and review. Petitions are then sent to the Deputy Attorney General for review and recommendation to the president.
Amherst Restaurant Owner Pleads Guilty to Filing a False Income TaxRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Ravi Sabharwal, 58, of Williamsville, N.Y., pleaded guilty plea to filing a false tax return before Chief U.S. District Judge William M. Skretny. The charge carries a maximum sentenced of three years in prison, a fine of $100,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Sabharwal, owner of Tandoori’s restaurant in Amherst, N.Y., underreported the gross receipts of the business on corporate tax returns to avoid paying federal taxes.
In October 2012, the defendant attempted to sell Tandoori’s restaurant and two related businesses to any interested buyers by listing the businesses for sale with a broker. Between October 2012 and March 2013, Internal Revenue Service, Criminal Investigation Division (IRS-CID) undercover agents, posing as interested buyers, met with the defendant to negotiate the terms of the sale of the business. During conversations with the agents, Sabharwal admitted that he significantly underreported the gross receipts and the taxable income for Tandoori’s restaurant on corporate tax returns. The defendant was able to underreport the gross receipts and taxable income by not running the receipts of a related business through the register and by not depositing all the business receipts to the business bank accounts.
On October 7, 2012, Sabharwal assisted in the preparation of the corporate tax return for Tandoori’s restaurant for calendar year 2011 by providing his accountant, who prepared the corporate tax returns, with information concerning the gross receipts of the business. The return reported that the gross receipts for the calendar year 2011 were the sum of $738,358 and that the total amount of tax due was $4,686. The gross receipts of Tandori’s restaurant for the calendar year 2011 were actually $1,052,372.89, with taxes due to the IRS totaling $48,952.
In addition, Sabharwal similarly assisted with the preparation of a false and fraudulent corporate tax return for Tandoori’s restaurant for calendar year 2010. The total tax due was $95,063.The plea is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
Sentencing is scheduled for August 6, 2014 at 9:00 a.m. before Judge Skretny.
Amedisys Home Health Companies Agree to Pay $150 Million to Resolve False Claims Act AllegationsRead the Press Release
Amedisys Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program, the Department of Justice announced today. Amedisys, a Louisiana-based for-profit company, is one of the nation’s largest providers of home health services and operates in 37 states, the District of Columbia and Puerto Rico.
“It is critical that scarce Medicare home health dollars flow only to those who provide qualified services,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “This settlement demonstrates the department’s commitment to ensuring that home health providers, like other providers, comply with the rules and don’t misuse taxpayer dollars.”
The settlement announced today resolves allegations that, between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services. Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments. These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients.
Additionally, this settlement resolves certain allegations that Amedisys maintained improper financial relationships with referring physicians. The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that home healthcare providers may have with doctors who refer patients to them. The United States alleged that Amedisys’ financial relationship with a private oncology practice in Georgia – whereby Amedisys employees provided patient care coordination services to the oncology practice at below-market prices – violated statutory requirements.
“Combating Medicare fraud and overbilling is a priority for my office, other components of the Department of Justice, and United States Attorneys’ Offices across the country,” said Zane David Memeger, United States Attorney for the Eastern District of Pennsylvania. “We have recovered billions of dollars in federal health care funds from schemes such as the one alleged in this case. Those are health care dollars that should be spent on legitimate medical needs.”
“Home health services are a large and growing part of our federal health care system,” said Sally Quillian Yates, United States Attorney for the Northern District of Georgia. “Health care dollars must be reserved to pay for services needed by patients, not to enrich providers who are bilking the system.”
“Amedisys made false Medicare claims, depriving the American taxpayer of millions of dollars and unlawfully enriching Amedisys,” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama. “The vigorous enforcement work by assistant U.S. attorneys in my office, along with their colleagues in North Georgia, Eastern Pennsylvania, Eastern Kentucky and the Civil Division of the Justice Department, has secured the return of $150 million to the taxpayers and stands as a warning to future wrongdoers that we will aggressively pursue them.”
“This settlement represents a significant recovery of public funds and an important victory for the taxpayers,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “Fighting health care fraud and recovering tax payer dollars that fund our vital health care programs is one of the highest priorities for our district.”
Amedisys also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General that requires the companies to implement compliance measures designed to avoid or promptly detect conduct similar to that which gave rise to the settlement.
“Improper financial relationships and false billing, as alleged in this case, can shortchange taxpayers and patients,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “Our compliance agreement with Amedisys contains strong monitoring and reporting provisions to help ensure that people in Federal health programs will be protected.”
This settlement resolves seven lawsuits pending against Amedisys in federal court – six in the Eastern District of Pennsylvania and one in the Northern District of Georgia – that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. As part of today’s settlement, the whistleblowers – primarily former Amedisys employees – will collectively split over $26 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19.2 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.
The United States’ investigation was conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division; the United States Attorneys’ Offices for the Eastern District of Pennsylvania, Northern District of Alabama, Northern District of Georgia, Eastern District of Kentucky, District of South Carolina, and Western District of New York; the Department of Health and Human Services’ Office of Inspector General; the Federal Bureau of Investigation; the Office of Personnel Management’s Office of Inspector General; the Defense Criminal Investigative Service of the Department of Defense; and the Railroad Retirement Board’s Office of Inspector General.
The lawsuits are captioned United States ex rel. CAF Partners et al. v. Amedisys, Inc. et al. 10-cv-2323 (E.D. Pa.); United States ex rel. Brown v. Amedisys, Inc. et al., 13-cv-2803 (E.D. Pa.); United States ex rel. Umberhandt v. Amedisys, Inc., 13-cv-2789 (E.D. Pa.); United States ex rel. Doe et al. v. Amedisys, Inc., 13-cv-3187 (E.D. Pa.); United States ex rel. Ognen et al. v. Amedisys, Inc. et al. 13-cv-4232 (E.D. Pa.); United States ex rel. Lewis v. Amedisys, Inc., 13-cv-3359 (E.D. Pa.); and United States ex rel. Natalie Raven et al. v. Amedisys, Inc. et al., 11-cv-0994 (N.D. Ga.). The claims settled by the agreement are allegations only, and there has been no determination of liability.
Amedisys Home Health Companies Agree to Pay U.S. $150 Million to Resolve False Claims Act AllegationsRead the Press Release
BIRMINGHAM - Amedisys, Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program, the Department of Justice and U.S. Attorney Joyce White Vance announced today. Amedisys, a Louisiana-based for-profit company, is one of the nation’s largest providers of home health services and operates in 37 states, the District of Columbia, and Puerto Rico.
“It is critical that scarce Medicare home health dollars flow only to those who provide qualified services,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “This settlement demonstrates the Department’s commitment to ensuring that home health providers, like other providers, comply with the rules and don’t misuse taxpayer dollars.”
“Amedisys made false Medicare claims, depriving the American taxpayer of millions of dollars and unlawfully enriching Amedisys, Vance said. “The vigorous enforcement work by assistant U.S. attorneys in my office, along with their colleagues in North Georgia, Eastern Pennsylvania, Eastern Kentucky and the Civil Division of the Justice Department, has secured the return of $150 million to the taxpayers and stands as a warning to future wrongdoers that we will aggressively pursue them.”
The settlement announced today resolves allegations that, between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services. Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments. These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients.
Additionally, this settlement resolves certain allegations that Amedisys maintained improper financial relationships with referring physicians. The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that home healthcare providers may have with doctors who refer patients to them. The United States alleged that Amedisys’ financial relationship with a private oncology practice in Georgia – whereby Amedisys employees provided patient care coordination services to the oncology practice at below-market prices – violated statutory requirements.
Amedisys also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General that requires the companies to implement compliance measures designed to avoid or promptly detect conduct similar to that which gave rise to the settlement.
“Amedisys allegedly billed taxpayers for unnecessary services and ineligible patients,” said Derrick Jackson, Special Agent in Charge for the Inspector General’s Office of the U.S. Department of Health and Human Services region including Alabama. “Working with our law enforcement partners we will aggressively investigate and prosecute these home health cases.”
This settlement resolves seven lawsuits pending against Amedisys in federal court – six in the Eastern District of Pennsylvania and one in the Northern District of Georgia – that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. As part of today’s settlement, the whistleblowers – primarily former Amedisys employees – will collectively split over $26 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19.2 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.
The United States’ investigation was conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division, the United States Attorneys’ Offices for the Eastern District of Pennsylvania, Northern District of Alabama, Northern District of Georgia, Eastern District of Kentucky, District of South Carolina, and Western District of New York, the Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, the Office of Personnel Management’s Office of Inspector General, the Defense Criminal Investigative Service of the Department of Defense, and the Railroad Retirement Board’s Office of Inspector General.
The lawsuits are captioned United States ex rel. CAF Partners et al. v. Amedisys, Inc. et al. 10-cv-2323 (E.D. Pa.); United States ex rel. Brown v. Amedisys, Inc. et al., 13-cv-2803 (E.D. Pa.); United States ex rel. Umberhandt v. Amedisys, Inc., 13-cv-2789 (E.D. Pa.); United States ex rel. Doe et al. v. Amedisys, Inc., 13-cv-3187 (E.D. Pa.); United States ex rel. Ognen et al. v. Amedisys, Inc. et al. 13-cv-4232 (E.D. Pa.); United States ex rel. Lewis v. Amedisys, Inc., 13-cv-3359 (E.D. Pa.); and United States ex rel. Natalie Raven et al. v. Amedisys, Inc. et al., 11-cv-0994 (N.D. Ga.). The claims settled by the agreement are allegations only, and there has been no determination of liability.
Amedisys Home Health Companies Agree to Pay U.S. $150 Million to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA - Amedisys Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program. Amedisys, a Louisiana-based for-profit company, is one of the nation’s largest providers of home health services and operates in 37 states, the District of Columbia, and Puerto Rico.
The settlement was announced today by United States Attorney Zane David Memeger and the Department of Justice. It resolves allegations that, between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services. Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments. These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients.
“Combating Medicare fraud and overbilling is a priority for my office, other components of the Department of Justice, and United States Attorneys’ Offices across the country,” said Memeger. “We have recovered billions of dollars in Federal health care funds from schemes such as the one alleged in this case. Those are health care dollars that should be spent on legitimate medical needs. This settlement should send a message to all healthcare providers in the Eastern District of Pennsylvania, including home health providers, that we will continue to dedicate our full attention and resources to pursuing similar violations of the False Claims Act.”
Additionally, this settlement resolves certain allegations that Amedisys maintained improper financial relationships with referring physicians. The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that home healthcare providers may have with doctors who refer patients to them. The United States alleged that Amedisys’ financial relationship with a private oncology practice in Georgia – whereby Amedisys employees provided patient care coordination services to the oncology practice at below-market prices – violated statutory requirements.
“It is critical that scarce Medicare home health dollars flow only to those who provide qualified services,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “This settlement demonstrates the Department’s commitment to ensuring that home health providers, like other providers, comply with the rules and don’t misuse taxpayer dollars.”
Amedisys also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General that requires the companies to implement compliance measures designed to avoid or promptly detect conduct similar to that which gave rise to this settlement.
“Improper financial relationships and false billing, as alleged in this case, can shortchange taxpayers and patients,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “Our compliance agreement with Amedisys contains strong monitoring and reporting provisions to help ensure that people in Federal health programs will be protected.”
This settlement resolves seven lawsuits pending against Amedisys in federal court – six in the Eastern District of Pennsylvania and one in the Northern District of Georgia – that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. As part of today’s settlement, the whistleblowers – primarily former Amedisys employees – will collectively split over $26 million.
For the United States Attorney’s Office for the Eastern District of Pennsylvania, this investigation and settlement were handled by Assistant United States Attorneys Gregory B. David and Eric D. Gill. The United States’ investigation was conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division; the United States Attorneys’ Offices for the Northern District of Alabama, Northern District of Georgia, Eastern District of Kentucky, District of South Carolina, and Western District of New York; the Department of Health and Human Services’ Office of Inspector General; the FBI; the Office of Personnel Management’s Office of Inspector General; the Defense Criminal Investigative Service of the Department of Defense; and the Railroad Retirement Board’s Office of Inspector General.
The claims settled by the agreement are allegations only, and there has been no determination of liability. The lawsuits are captioned United States ex rel. CAF Partners et al. v. Amedisys, Inc. et al. 10-cv-2323 (E.D. Pa.); United States ex rel. Brown v. Amedisys, Inc. et al., 13-cv-2803 (E.D. Pa.); United States ex rel. Umberhandt v. Amedisys, Inc., 13-cv-2789 (E.D. Pa.); United States ex rel. Doe et al. v. Amedisys, Inc., 13-cv-3187 (E.D. Pa.); United States ex rel. Ognen et al. v. Amedisys, Inc. et al. 13-cv-4232 (E.D. Pa.); United States ex rel. Lewis v. Amedisys, Inc., 13-cv-3359 (E.D. Pa.); and United States ex rel. Natalie Raven et al. v. Amedisys, Inc. et al., 11-cv-0994 (N.D. Ga.).
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19.2 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.
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PATTY HARTMAN, Media Contact, 215-861-8525Amedisys Home Health Companies Agree to Pay $150 Million to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA - Amedisys Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program, the Department of Justice announced today. Amedisys, a Louisiana-based for-profit company, is one of the nation’s largest providers of home health services and operates in 37 states, the District of Columbia and Puerto Rico.
“Home health services are a large and growing part of our federal health care system,” said Sally Quillian Yates, United States Attorney for the Northern District of Georgia. “Health care dollars must be reserved to pay for services needed by patients, not to enrich providers who are bilking the system.”
“It is critical that scarce Medicare home health dollars flow only to those who provide qualified services,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “This settlement demonstrates the department’s commitment to ensuring that home health providers, like other providers, comply with the rules and don’t misuse taxpayer dollars.”
The settlement announced today resolves allegations that, between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services. Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments. These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients.
Additionally, this settlement resolves certain allegations that Amedisys maintained improper financial relationships with referring physicians. The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that home healthcare providers may have with doctors who refer patients to them. The United States alleged that Amedisys’ financial relationship with a private oncology practice in Georgia – whereby Amedisys employees provided patient care coordination services to the oncology practice at below-market prices – violated statutory requirements.
“Combating Medicare fraud and overbilling is a priority for my office, other components of the Department of Justice, and United States Attorneys’ Offices across the country,” said Zane David Memeger, United States Attorney for the Eastern District of Pennsylvania. “We have recovered billions of dollars in federal health care funds from schemes such as the one alleged in this case. Those are health care dollars that should be spent on legitimate medical needs.”
“Amedisys made false Medicare claims, depriving the American taxpayer of millions of dollars and unlawfully enriching Amedisys,” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama. “The vigorous enforcement work by assistant U.S. attorneys in my office, along with their colleagues in North Georgia, Eastern Pennsylvania, Eastern Kentucky and the Civil Division of the Justice Department, has secured the return of $150 million to the taxpayers and stands as a warning to future wrongdoers that we will aggressively pursue them.”
“This settlement represents a significant recovery of public funds and an important victory for the taxpayers,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “Fighting health care fraud and recovering tax payer dollars that fund our vital health care programs is one of the highest priorities for our district.”
Amedisys also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General that requires the companies to implement compliance measures designed to avoid or promptly detect conduct similar to that which gave rise to the settlement.
“Improper financial relationships and false billing, as alleged in this case, can shortchange taxpayers and patients,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “Our compliance agreement with Amedisys contains strong monitoring and reporting provisions to help ensure that people in Federal health programs will be protected.”
This settlement resolves seven lawsuits pending against Amedisys in federal court – six in the Eastern District of Pennsylvania and one in the Northern District of Georgia – that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. As part of today’s settlement, the whistleblowers – primarily former Amedisys employees – will collectively split over $26 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19.2 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.
The United States’ investigation was conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division; the United States Attorneys’ Offices for the Eastern District of Pennsylvania, Northern District of Alabama, Northern District of Georgia, Eastern District of Kentucky, District of South Carolina, and Western District of New York; the Department of Health and Human Services’ Office of Inspector General; the Federal Bureau of Investigation; the Office of Personnel Management’s Office of Inspector General; the Defense Criminal Investigative Service of the Department of Defense; and the Railroad Retirement Board’s Office of Inspector General.
The lawsuits are captioned United States ex rel. CAF Partners et al. v. Amedisys, Inc. et al. 10-cv-2323 (E.D. Pa.); United States ex rel. Brown v. Amedisys, Inc. et al., 13-cv-2803 (E.D. Pa.); United States ex rel. Umberhandt v. Amedisys, Inc., 13-cv-2789 (E.D. Pa.); United States ex rel. Doe et al. v. Amedisys, Inc., 13-cv-3187 (E.D. Pa.); United States ex rel. Ognen et al. v. Amedisys, Inc. et al. 13-cv-4232 (E.D. Pa.); United States ex rel. Lewis v. Amedisys, Inc., 13-cv-3359 (E.D. Pa.); and United States ex rel. Natalie Raven et al. v. Amedisys, Inc. et al., 11-cv-0994 (N.D. Ga.). The claims settled by the agreement are allegations only, and there has been no determination of liability.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Allegany County Business Owners Agree to Forfeit Almost $174,000 to Settle Allegations That They Sold Synthetic DrugsRead the Press Release
Operated Puff & Stuff Stores at Three Locations in Cumberland and LaVale
Baltimore, Maryland – Charles and Traci Casey, the owners of Puff & Stuff stores in Cumberland and LaVale, Maryland, have agreed to forfeit $173,988.61, to settle claims that they sold synthetic drugs at their stores.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and the members of the Allegany County Combined Criminal Investigations Task Force (C3I),Colonel Marcus L. Brown, Superintendent of the Maryland State Police, Cumberland Police Chief Charles H. Hinnant, Allegany County Sheriff Craig Robertson; Frostburg Police Chief Royce C. Douty, Frostburg University Chief of Police Cindy R. Smith, and Allegany County State’s Attorney Michael O. Twigg.
According to the settlement agreement and complaint for forfeiture, in April 2012, the Maryland State Police received complaints about a business called “Puff & Stuff,” that operated in Cumberland. The complaints stated that the business is a “head shop,” (a business that sells drug-related paraphernalia including smoking devices and other related items) and sold synthetic drugs. The synthetic drugs are often labeled as different brands, but they are commonly referred to as “spice.” As set forth in the complaint, what the Caseys were selling as “spice” was leafy vegetable matter sprayed with chemicals that have a pharmacological effect on the human body that is similar to that of marijuana. Puff & Stuff currently operates at two locations in Cumberland and another in LaVale, Maryland. A Maryland State Police Task Force initiated an investigation and conducted five controlled purchases of spice from Puff & Stuff stores beginning on April 23, 2012 through February 27, 2013. As a result of the investigation, on March 7, 2013, officers executed five search and seizure warrants at the Casey’s residence; the three Puff & Stuff store locations; and for two of the Casey’s bank accounts, seizing a total of $259,988.61 in cash and numerous packets of spice.Under the terms of the settlement agreement, the Government has agreed to release $86,000 of the seized funds and the Caseys have agreed to withdraw their claims to the remaining $173,988.61. In addition, the Caseys have agreed to stop selling any substances marked or distributed as “potpourri,” “spice,” or “bath salts.”
The claims settled by this agreement are allegations, and there has been no determination of liability.
United States Attorney Rod J. Rosenstein praised the DEA and Allegany County Combined Criminal Investigations Task Force (C3I), comprised of the Maryland State Police, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Frostburg University Police Department and Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Stefan D. Cassella, who handled the forfeiture.
Albuquerque Man Sentenced to Federal Prison for Robbing Western Commerce Bank in September 2013Read the Press Release
ALBUQUERQUE – Solas Jansen, 36, of Albuquerque, N.M., was sentenced today to 33 months in federal prison for his bank robbery conviction. Jansen will be on supervised release for three years after completing his prison sentence.
Jansen was arrested on Sept. 29, 2013, based on a criminal complaint alleging that he robbed the Western Commerce Bank branch located at 1910 Wyoming Blvd. NE in Albuquerque on Sept. 24, 2013. Jansen subsequently was charged with bank robbery in an indictment filed on Oct. 9, 2013.
On Dec. 17, 2013, Jansen entered a guilty plea to the indictment. Jansen admitted robbing the bank by presenting a demand note to a bank teller and taking money from the teller on Sept. 24, 2013. Jansen acknowledged that the demand note may have put the bank teller in fear of harm.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Additional Charges Filed Against a Local Businessman in a Bribery Scandal Involving Buffalo PoliceRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a superseding indictment adding two new charges against James Mazzariello, Jr., 58, of Marilla, N.Y. The new charges against Mazzariello accuse him of filing false tax returns, each of which carry a maximum penalty of three years in prison, a fine of $100,000 or both.
The defendant was originally charged in October 2013 along with his son, Adam Mazzariello, 33, and Christopher Mahoney, 29, for conspiring to pay bribes to City of Buffalo police officers. All three defendants face a maximum penalty of five years in prison on the conspiracy charge, a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that James Mazzariello, Jr. owns and operates Jim Mazz Auto, Inc. (“Jim Mazz Auto”) and National Towing, Inc (“National Towing”). The companies are involved in all aspects of the automobile towing and repair business, including collision repair work, mechanical repair work, towing and storage work, and the sale of used automobiles. Adam Mazzariello supervises towing services for the businesses and Christopher Mahoney serves in a managerial capacity for each of the businesses.
According to the indictment and superseding indictment, between August 2006 and May 2012, each of the defendants conspired to pay City of Buffalo police officers cash, in return for allowing Jim Mazz Auto tow truck drivers to tow damaged motor vehicles from accident scenes. In furtherance of the conspiracy, each defendant paid police officers cash, or caused Jim Mazz Auto tow truck drivers to pay cash, to City of Buffalo police officers. James Mazzariello, Jr. is further accused of filing false corporate tax returns and false personal tax returns for calendar years 2009 and 2010.
The indictment is the culmination of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, the New York State Department of Motor Vehicles Criminal Division, under the direction of Owen McShane, Director of Investigations, the New York State Department of Taxation and Finance Criminal Investigations Division, under the direction of Upstate Chief of Investigations Pat Simet, the New York State Department of Financial Services Criminal Investigations Unit, under the direction of Director Frank Orlando, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
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.8 Weslaco Men Enter Guilty PleasRead the Press Release
McALLEN, Texas - A total of eight men residing in Weslaco have entered guilty pleas to conspiracy to possess with the intent to distribute narcotics, announced U.S. Attorney Kenneth Magidson.
Tomas Reyes Gonzalez aka “El Gallo,” 37, Eloy Gonzalez, 39, Hector Rodriguez Jr., 37, Hector Rodriguez Sr., 61, Federico Rodriguez, 27, Miguel Placencia III, 28, Jamail Thomas, 27, William Champion Gonzalez, 22, all of Weslaco, entered their guilty pleas just a short time ago in McAllen federal court. Reyes Gonzalez also pleaded to one count of conspiring to launder money as did a ninth defendant - Francisco Rios, 40, from Atlanta, Ga.
The investigation revealed that from 2007 to 2013, Reyes Gonzalez headed a drug trafficking organization responsible for the distribution of thousands of kilograms of marijuana and hundreds of kilograms of cocaine. The narcotics were transported from the Rio Grande Valley to Arkansas, Tennessee, Alabama and Georgia. Reyes Gonzalez used the resulting drug proceeds to purchase properties. He also provided some of proceeds to former Hidalgo County Sheriff Lupe Trevino and former Hidalgo County Sheriff’s Office Commander Jose Padilla.
U.S. District Judge Randy Crane, who accepted the pleas today, has set sentencing for July 17, 2014. At that time, those convicted of the drug charge will face a maximum of life imprisonment along with a potential fine up to $10 million. Reyes Gonzalez will also face a maximum of 20 years imprisonment and a $500,000 (or twice the amount of the proceeds) for the conspiracy to launder money as will Rios for his conviction.
The investigation leading to the charges was conducted by Drug Enforcement Administration, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation and Texas Department of Public Safety, Rangers Division. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.
Tuesday 22 April 2014
Utica Man Sentenced to 63 Months Incarceration Following Conviction on Drug ChargesRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announced that DEAN STEPPELLO, was sentenced before the Honorable Norman A. Mordue in U.S. District Court in Syracuse, New York to 63 months incarceration following his conviction of federal felony drug charges. STEPPELLO was also ordered to serve a three year term of supervised release following his term of incarceration and to pay a $200 special assessment.
STEPPELLO, 43, of Utica, New York was convicted on September 19, 2013, of two counts of Possession of Cocaine with Intent to Distribute following a four day jury trial. The jury also found he possessed over 500 grams of cocaine, requiring a mandatory minimum sentence of five years imprisonment.
The defendant was arrested by members of the New York State Police Community Narcotics Enforcement Team (“CNET”) in Utica as he attempted to deliver four ounces of cocaine. A subsequent search of the defendant’s residence resulted in the recovery of an additional pound and three quarters of cocaine, drug paraphernalia, a shotgun and four thousand dollars in cash.
The case was investigated by the New York State Police Community Narcotics Enforcement Team and was prosecuted by Assistant U.S. Attorneys Richard R. Southwick and Tamara B. Thomson. The Oneida County District Attorney’s Office also assisted in the prosecution of this matter.
U.S. Attorney's Office and U.S. Marshals Service Join DEA for Drug Take-Back DriveRead the Press Release
SHREVEPORT, La.–United States Attorney Stephanie A. Finley and the U.S. Marshals Service are teaming up with the Drug Enforcement Administration (DEA) to promote the National Prescription Drug Take-Back Day. A local event will be held at the federal courthouse in Shreveport from Wednesday, April 23rd through Friday, April 25th. The courthouse is located at 300 Fannin Street and will serve as a drop location to give the public an opportunity to rid their homes of unused or expired prescription drugs and medicines. This event is a kick off to the eighth annual National Prescription Drug Take-Back Day which will be held this Saturday, April 26th, and is sponsored by the DEA and more than 4,200 national, tribal and community law enforcement partners nationwide.
The National Prescription Drug Take-Back Day aims to provide a safe, convenient and responsible means of disposing of prescription drugs, while also educating the general public about the potential for abuse of medications. Unused medications in homes create a public health and safety concern because they are highly susceptible to accidental ingestion, theft, misuse, and abuse. DEA reports that almost twice as many Americans (6.8 million) currently abuse prescription drugs than the number of those using cocaine, hallucinogens, heroin, and inhalants combined, according to the 2012 National Survey on Drug Use and Health. And more Americans died in 2010 from overdoses of prescription medications (22,134, including 16,651 from narcotic painkillers) than from motor vehicle accidents, says the Centers for Disease Control and Prevention. Studies show that the majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
Rates of prescription drug abuse in the United States are alarmingly high,” Finley stated. “DEA reported that last October, Americans turned in 324 tons (over 647,000 pounds) of prescription drugs, and since DEA’s first National Drug Take-Back event in September of 2010, consumers have disposed of over 3.4 million pounds of unwanted medication. We are excited to partner with the U.S. Marshals Service during this local event to help DEA promote their national initiative on Saturday. We hope that Louisiana citizens take this opportunity to safely dispose of prescriptions and medications that would normally get flushed or discarded in a landfill, and in turn help reduce the harm they cause to the public, environment and wildlife.”
“We greatly appreciate the outstanding support we are receiving from the U.S. Attorney’s Office and the U.S. Marshals Service,” said Joseph Shepherd, Assistant Special Agent in Charge of the Drug Enforcement Administration. “This ongoing initiative truly is a collaborative community effort addressing the serious problem of prescription drug abuse. By offering safe and secure options for our citizens to dispose of their unwanted prescription drugs, we are reducing the threat that these substances pose to public health.”
DEA will have over 5,600 collection sites across the country on Saturday, April 26th, for those who are interested in bringing their unused or expired prescription drugs for proper disposal. Only pills and other solids, like patches, can be brought to the collection sites – liquids and needles or other sharp objects will not be accepted. The collections sites will be open between 10:00 a.m. and 2:00 p.m. local times. The service is free and anonymous, no questions asked.
The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they enter their zip code, or they can call 800-882-9539. The U.S. Marshals will be at the Shreveport location this week on Wednesday through Friday to supervise the drop off program at the federal courthouse.
U.S. Attorney Booth Goodwin, Kanawha Co. Sheriff's Dept. to Host Prescription Drug Take-back Kickoff WednesdayRead the Press Release
***MEDIA ADVISORY***
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin and the Kanawha County Sheriff’s Department will host a National Prescription Drug Take-Back kickoff event on Wednesday, April 23, 2014, at 10:00 a.m. at the Kanawha County Sheriff’s Department detachment located at 6809 Ohio Avenue in St. Albans, West Virginia.
Wednesday’s kickoff event will promote awareness of the eighth National Prescription Drug Take-Back Day, which will be held Saturday, April 26, 2014. As part of West Virginia’s participation in the prescription drug collection effort, the U.S. Drug Enforcement Administration and other partners will collect expired, unused and unwanted prescription drugs at several designated drop-off sites throughout the state on April 26, 2014 from 10 a.m. until 2 p.m. Past take-back events have collected a total of more than 13 tons of unwanted prescription drugs in West Virginia and 1,733 tons nationwide. For a complete list of collection locations, please visit: www.dea.gov.
PRESCRIPTION DRUG TAKE-BACK KICKOFF EVENT - Kanawha County Sheriff’s Department, St. Albans Detachment
WHO:
United States Attorney Booth Goodwin
Chief Deputy Mike Rutherford, Kanawha County Sheriff’s Department
WHERE:
Kanawha Sheriff’s Department Detachment
6809 Ohio Avenue
St. Albans, WV
WHEN: Wednesday, April 23, 2014 at 10:00 a.m.Two Former S.C. Police Officers Charged with Using Unreasonable ForceRead the Press Release
The Department of Justice announced that a federal grand jury in Florence, S.C., returned a two-count indictment today charging Eric Walters and Franklin Brown, both former police officers with the City of Marion Police Department, with using unreasonable force against a female citizen.
Walters and Brown have each been charged with one count of deprivation of rights under color of law, specifically alleging that, while acting as police officers, each defendant used unreasonable force on the victim, resulting in bodily injury. The indictment alleges that on April 2, 2013, Walters and Brown each used their respective tasers multiple times on the victim.
If convicted, each defendant faces a statutory maximum sentence of 10 years in prison.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the Myrtle Beach, S.C., Division of the FBI. It is being prosecuted by Trial Attorneys Nicholas Murphy and Henry Leventis for the Justice Department’s Civil Rights Division and U.S. Attorney Bill Nettles and Assistant U.S. Attorney John Potterfield for the District of South Carolina.
Two Conspirators Plead Guilty in Mortgage Fraud SchemeRead the Press Release
Provided False Information About the Buyer and Property Renovations
Greenbelt, Maryland – Real estate agent Nsane Phanuel Ligate, age 42, of Ashburn, Virginia, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage scheme involving the purchase of two properties located on North Patterson Park Avenue in Baltimore. Co-defendant Cane Mwihava, age 43, of Bowie, Maryland pleaded guilty to the same offense yesterday.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG); Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General (HUD); Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to their pleas, in 2008, Ligate and his co-conspirators identified two properties for sale located at 424 and 444 North Patterson Park Avenue in Baltimore. Also at that time, Mwihava established a shell company called Xavier Engineering and Construction Company (XECC) to receive settlement disbursements for purported home renovations. With assistance from Ligate, co-conspirator Gladyness Silaa acted as the real estate agent; and co-conspirator Larry Johnson acted as the buyer. Ligate, Silaa and Johnson included false statements in the loan applications for both properties regarding Johnson’s employment, income, credit and assets. Mwihava and Ligate falsely inflated the purchase price of the properties by representing to lenders that repairs and renovations had been completed on each property by XECC, including installation of premium kitchen cabinets, granite countertops, stainless steel appliances and marble flooring. None of the purported renovations or repairs were in fact performed.
After the settlement of the properties, the settlement agent disbursed a total of $108,860 to XECC, the amount shown on false invoices submitted for the purported renovations. Mwihava then divided these funds between himself, Ligate, Silaa and Johnson.
On June 5 and 9, 2008, Ligate and Mwihava caused banks to wire transfer $181,159.65, and $179,866.93, respectively, to the title agent to complete the settlement transactions. These amounts were needed to fund the original loan amounts plus additional costs and fees associated with the closings.
As a result of the conspiracy, HUD, which insured the loan for 424 North Patterson Park Avenue suffered a loss of $164,090, and a bank which was the lender for the other property suffered a loss of $188,001.58.
The defendants face a maximum sentence of 30 years in prison and a $1 million fine. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for Mwihava on October 14, 2014, at 1:00 p.m. and for Ligate on October 16, 2014 at 10:00 a.m.
Gladyness Silaa, age 35, of Bowie, previously pleaded guilty to conspiracy to commit wire fraud and her sentencing is scheduled for June 16, 2014 at 10:00 a.m. Larry Johnson, age 57, previously pleaded guilty to making false statements in a loan application and was sentenced on February 24, 2014 to eight months in prison consecutive to the current sentence he is serving on an unrelated case.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today=s announcement is part of efforts underway by President Obama=s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys= offices and state and local partners, it=s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein commended the FHFA- OIG, HUD-OIG, Secret Service and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, from the Federal Housing Finance Agency, Office of Inspector General, who are prosecuting the case.
Three More Florida Men Charged in $80 Million Drug Theft from Eli Lilly Warehouse in EnfieldRead the Press Release
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The United States Attorney for the District of Connecticut today announced that three more Florida men have been arrested for their alleged participation in the March 2010 theft of approximately $80 million in pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Conn.
On April 10, 2014, a federal grand jury in New Haven returned a second superseding indictment charging AMAURY VILLA, 39, of Miami, YOSMANY NUNEZ, also known as “El Gato,” 41, of Southwest Ranches, Fla., ALEXANDER MARQUEZ, 40, of Hialeah, Fla.,and RAFAEL LOPEZ, 49, of Miami, on federal conspiracy and theft charges. The indictment was unsealed yesterday.
NUNEZ, MARQUEZ and LOPEZ, who are citizens of Cuba, were arrested last week in Florida. VILLA was originally charged by indictment in March 2012 and has been in federal custody since May 2012.
The second superseding indictment alleges that, between January and March 2010, VILLA, NUNEZ, MARQUEZ, LOPEZ and another individual conspired to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. The investigation revealed that, in early 2010, VILLA, NUNEZ and others traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area. Shortly before the theft, LOPEZ and another individual traveled to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.
The indictment alleges that, in the evening of March 13, 2010, MARQUEZ drove a tractor trailer to the parking lot of the Eli Lilly warehouse facility. Later that evening, VILLA and a co-conspirator carried a ladder to the warehouse, checked for security in the front area, climbed onto the roof, used the tools to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. Thereafter, VILLA and others loaded approximately 49 pallets of pharmaceuticals into the tractor trailer, which they had backed up to the loading dock of the warehouse.
The indictment alleges that LOPEZ was in the vicinity of the Enfield warehouse at the time of the theft and communicated by cell phone with a co-conspirator who was inside the warehouse.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued at approximately $80 million.
It is alleged that MARQUEZ drove the tractor trailer containing the stolen pharmaceuticals from Connecticut to Florida. VILLA, NUNEZ, MARQUEZ and a co-conspirator then met in Florida, unloaded the stolen pharmaceuticals from the tractor trailer and stored them in public storage facility in Miami area.
As part of an investigation in the Southern District of Florida, on October 14, 2011, a search of a storage facility in Florida recovered pharmaceuticals that had been stolen from the Enfield warehouse.
The defendants are charged with one count of conspiracy, which carries a maximum term of imprisonment of five years, four counts of theft from an interstate shipment, each of which carries a maximum term of imprisonment of 10 years, and one count of interstate transportation of stolen property, which carries a maximum term of imprisonment of 10 years.
NUNEZ and MARQUEZ were arrested on April 17 in Florida. Both are detained pending hearings that are scheduled for April 24 in Fort Lauderdale. LOPEZ surrendered to authorities yesterday. He was released on bond and is scheduled to be arraigned in the District of Connecticut on May 1.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of several other U.S. Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products.
The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito, with the assistance of the U.S. Attorney’s Office for the Southern District of Florida.
An indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Sweetwater Police Detective Convicted on Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the conviction of William Garcia, 39, a detective with the Sweetwater Police Department.
On April 21, 2014, a jury in U.S. District Court found Garcia guilty of twelve counts. Specifically, the defendant was found guilty of one count conspiring to produce, use, or traffic in one or more counterfeit access devices, in violation of Title 18, United States Code, Section 371; one count of use of a counterfeit access device, in violation of Title 18, United States Code, Section 1029(a)(1); and ten counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Garcia faces a mandatory minimum sentence of two years imprisonment and a maximum sentence of thirty-five years in prison.
At trial, the United States presented evidence documenting Garcia’s improper friendship with a former confidential source. The confidential source, a convicted felon, provided Garcia and another former South Miami Detective Richard Munoz with counterfeit credit cards. During the trial, the source, Munoz and others testified about Garcia’s possession and use of those cards during shopping trips to Miami-Dade County shopping malls in 2010 and early 2011. During a meeting in late December 2010, Garcia was recorded providing his own personal credit card for use in stealing account numbers and manufacturing counterfeit cards.
Additional evidence at trial showed that Garcia was caught on videotape bringing eight counterfeit credit cards to the residence of the confidential source. During that and other recorded meetings, Garcia explained that he had taken the counterfeit cards from work and that he would share them with the confidential source. During the next two weeks, Garcia was recorded discussing his use of the cards at restaurants, movies, and a mall. Garcia’s presence during the transactions was further documented through use of phone records, placing Garcia’s cellular telephone in the area of each transaction at the time it occurred.
After the verdict, U.S. District Court Judge Federico Moreno remanded Garcia pending sentencing on June 26, 2014 at 9:30 a.m. in Miami. Munoz, who himself pleaded guilty on March 13, 2014 to related fraud charges last month, is presently set for sentencing in front of Judge Moreno on May 9, 2014.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force, the FBI Miami Cyber Task Force, and the Sweetwater Police Department. This case is being prosecuted by Assistant U.S. Attorneys Anthony Lacosta and Sarah Schall.
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.
Shreveport Attorney Guilty of Federal ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHREVEPORT, LA – A 52-year-old Shreveport, Louisiana attorney has pleaded guilty to federal violations in the Western District of Texas, announced U.S. Attorney John M. Bales of the Eastern District of Texas.
James Ward Davis pleaded guilty to an Information charging him with making a false statement in a bankruptcy proceeding today.
According to information presented in court, Davis is a lawyer and former member of the Shreveport law firm Jones, Odom, Davis & Politz. He also operated and controlled Tower Hill Energy Company, LLC, which purported to be in the business of acquiring oil, gas, and mineral leases, interests, and royalties in north Louisiana. In February 2009, Tower Hill entered into an agreement with a Texas company known as Furie Petroleum. By way of the agreement, Tower Hill was obligated to acquire mineral rights on Furie’s behalf. Furie agreed to deposit $1 million to be used by Tower Hill “solely for the acquisition of Mineral Leases or purchase contracts/options to acquire Mineral Leases.” A client trust account for Davis’s law firm was used for escrow. After Furie made the deposit, Davis transferred the $1 million out of the firm’s trust account into a Tower Hill escrow account and then used the funds to address personal and business expenditures. In June 2010,Davis and his wife filed for Chapter 7 bankruptcy in the Western District of Louisiana. They subsequently sought to convert the bankruptcy case from Chapter 7 to Chapter 11. A hearing was held on that motion in August 2010. During the proceeding, Davis falsely stated under oath that Furie was aware of the disposition of the $1million deposit after he removed the funds from the client trust account. In truth, at no time prior to litigation, did Davis advise Furie or its representatives that he had transferred the money out of the Tower Hill escrow account and used the funds for personal and unrelated business purposes.
Davis faces up to 5 years in federal prison and a fine of $250,000, at sentencing. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Frank Coan.
####Sevierville Residents Charged with Oxycodone Distribution Conspiracy and Firearms OffensesRead the Press Release
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned a six-count indictment on Apr.15, 2014, against Esther Franklin, 53, Nicole Hughes, 26, and Christopher Matthew Hughes, 31, all of Sevierville, Tenn., charging them with a conspiracy to distribute oxycodone and firearms offenses.
Franklin and Nicole Hughes appeared in court on Apr. 22, 2014, before U.S. Magistrate Judge C. Clifford Shirley, Jr., and pleaded not guilty to the charges in the indictment. Nichole Hughes was placed on pretrial release and Franklin was held pending trial, which has been set for July 1, 2014, in U.S. District Court in Knoxville. Christopher Hughes will be scheduled for an initial appearance in the near future.
The indictment alleges that from May 2011 to July 2013, Franklin, Nicole Hughes and Christopher Matthew Hughes were involved in a conspiracy to distribute oxycodone. Franklin was also charged with possession with intent to distribute oxycodone, possession of firearms in furtherance of a drug trafficking crime, and possession of firearms and ammunition by a convicted felon. Christopher Matthew Hughes was also charged with distribution of oxycodone and possession of ammunition by a convicted felon.
If convicted, all three face up to 20 years in prison, a fine of up to $1,000,000, and a term of supervised release of at least three years and up to life. In addition, if Franklin is convicted of possessing firearms in furtherance of a drug trafficking offense, she will face a minimum mandatory term of imprisonment of at least five years and up to life, to be served consecutively to any other term of imprisonment which may be imposed.
This indictment is the result of an investigation by the Tennessee Bureau of Investigation and Sevier County Sheriff’s Office. Assistant U.S. Attorney Cynthia F. Davidson will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
Seven Individuals Indicted for Trafficking in Counterfeit GoodsRead the Press Release
SAN JUAN, PR – On April 14, a federal grand jury returned six separate indictments charging seven individuals for trafficking in counterfeit goods, specifically “Freshlook” mark contact lenses, announced United States Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez. The investigations were conducted by Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), with the collaboration of U.S. Customs and Border Protection (CBP), Federal Drug Administration (FDA), Puerto Rico Police Department (PRPD) and the San Juan Municipal Police.
Beginning no later than July 19, 2012, and continuing to on or about August 21, 2012, José Estevez-Cabrera did conspire with other persons, known and unknown to the Grand Jury, to traffic in goods, specifically contact lenses, knowingly using on and in connection with such goods a counterfeit mark, namely the “Freshlook” logo. According to the indictment, Estevez-Cabrera did intentionally traffic in goods, aiding and abetting others, with intent to defraud and mislead, received a misbranded device, that is counterfeit Freshlook Colorblends contact lenses, in interstate commerce, and delivered and proffered delivery to another, for pay and otherwise. Said device was misbranded in that its labeling was false and misleading in any particular. The defendant is facing a forfeiture allegation of 3,942 boxes of counterfeit Freshlook Colorblends contact lenses.Wilma Soto-Díaz and Karla Rodríguez-Soto, mother and daughter, are charged with Conspiracy to traffic in counterfeit goods and trafficking in counterfeit goods. They are both facing a forfeiture allegation of 101 boxes of counterfeit Freshlook Colorblends contact lenses.
On four separate indictments, Ezequiel Bayon-Santos, Katherine Agostini-Ruiz, Rafael Torres-Vicente and Eileen Martinez-Estevez are charged with trafficking counterfeit Freshlook Colorblends contact lenses. These defendants are facing the following forfeiture allegations:
- Bayon-Santos- 93 boxes of counterfeit Freshlook Colorblends contact lenses
- Agostini-Ruiz- 93 boxes of counterfeit Freshlook Colorblends contact lenses
- Torres-Vicente- 25 boxes of counterfeit Freshlook Colorblends contact lenses
- Martinez-Estevez- 15 boxes of counterfeit Freshlook Colorblends contact lenses
“These defendants recklessly put in danger the health of many patients who need contact lenses by trafficking the counterfeit lenses. Specifically, lab tests revealed that many of the counterfeit contact lenses were contaminated with bacteria, and some also had physical defects including sharp edges,” said Rosa Emilia Rodríguez-Vélez.
“To people who think designer knockoffs are a harmless way to beat the system and get a great deal - buyer beware,” said Angel M. Melendez, special agent in charge of HSI San Juan. “Part of what you're paying for when you buy established brands, regardless of the product, are quality control. As this case shows, when you purchase counterfeit decorative contact lenses, you can easily get something you hadn't bargained for, something that could put you at risk by damaging your eyes or even blind you.”
These cases are being prosecuted by Assistant U.S. Attorney Justin R. Martin. The maximum penalties are 10 years of imprisonment for conspiracy to counterfeit goods and for trafficking in counterfeit goods; and 3 years for misbranding devices. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
Sentences Entered for Final Two Defendants in Marshalltown Methamphetamine CaseRead the Press Release
MARSHALLTOWN, IOWA - On Friday, April 18, 2014, the last of ten defendants from Marshalltown, Iowa and elsewhere were sentenced on federal drug trafficking and money laundering charges announced United States Attorney Nicholas A. Klinefeldt. District Judge Stephanie M. Rose sentenced Jose Sanchez Adame, age 40, of Marshalltown, Iowa, to 216 months imprisonment for conspiracy to distribute methamphetamine and distribution of methamphetamine. Sanchez Adame was also ordered to serve a term of five years supervised release following the period of imprisonment, and to pay $200 to the Crime Victim Fund. Julian Marin Gutierrez, age 53, of San Jose, California, was sentenced to 204 months imprisonment for conspiracy to distribute methamphetamine, conspiracy to launder monetary instruments and two counts of money laundering. Gutierrez was sentenced to a concurrent five years imprisonment for three counts of structuring financial transactions, and was ordered to serve concurrent terms of supervised release of five and three years, following imprisonment, as well as to pay $700 to the Crime Victim Fund.
This case arose from a two-year investigation into the distribution of methamphetamine in the Marshalltown area. This organization was responsible for the distribution of large quantities of methamphetamine in and around Marshalltown from at least 2010 through 2012. Proceeds from the sale of the methamphetamine were transported in bulk cash shipments, including $134,960 seized during a traffic stop in March 2012, in Cass County, Iowa. Other drug proceeds were funneled through bank deposits made in Iowa and withdrawn in California.
The investigation culminated in the arrests of ten individuals in Marshalltown and Ankeny, Iowa on November 20, 2012. The individuals, charged in December 2012 with conspiracy to distribute methamphetamine, included: Jose Luis Sanchez Adame, Jose Sanchez Adame, Julian Marin Gutierrez, Antonio Cebrero Mendiola, Raymundo Sotel Calderon, Fidel Sanchez, Kyla Forbes, Shannon Fogle, James Buffington and Fernando Camacho.
After seven defendants plead guilty, Jose Sanchez Adame, Julian Marin Gutierrez and Fidel Sanchez were convicted following a jury trial in November 2013. Fidel Sanchez, age 42, of Marshalltown, was sentenced to 108 months imprisonment for conspiracy to distribute and distribution of methamphetamine and ordered to serve five years supervised release, following the period of imprisonment, and to pay $600 to the Crime Victim Fund.
The following defendants were sentenced on prior dates:
-- Kyla Forbes, age 39, of Marshalltown, was sentenced to 75 months imprisonment and ordered to serve five years and three years concurrent supervised release, after being released from prison, for conspiracy to distribute methamphetamine and conspiracy to launder monetary instruments.
-- Fernando Camacho was sentenced to 48 months imprisonment and ordered to serve a one-year term of supervised release for use of a communication facility in the commission of a drug felony.
-- Jose Luis Sanchez Adame, age 37, of Marshalltown, and Antonio Cebrero Mendiola, age 27, of Ankeny, were each sentenced to 120 months imprisonment and ordered to serve five years supervised release, after being released from prison, for conspiracy to distribute methamphetamine.
-- Raymundo Sotel Calderon, age 40, of Marshalltown, was sentenced to 70 months imprisonment, and ordered to serve three years of supervised release, following the term of imprisonment for conspiracy to distribute methamphetamine.
-- James Buffington, age 44, of Marshalltown, was sentenced to 92 months imprisonment followed by five years supervised release, following his term of imprisonment for conspiracy to distribute methamphetamine.
-- Shannon Fogle, age 32, of Marshalltown, was sentenced to 60 months in prison, and ordered to serve a five-year term of supervised release, following the term of imprisonment for conspiracy to distribute methamphetamine.
In a related case, Rogelio Guevara, Jr., age 32, of Marshalltown, was sentenced to 144 months and ordered to serve five years supervised release after pleading guilty to possession with intent to distribute methamphetamine.
This investigation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF) program. The principal mission of the OCDETF Program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation's illegal drug supply. Agencies participating in this investigation included the Drug Enforcement Administration, Mid Iowa Drug Task Force (MIDTF), Internal Revenue Service Criminal Investigations, Iowa Division of Narcotics Enforcement, Marshall County Sheriff’s Office, Marshalltown, Iowa, Police Department, Homeland Security Investigations, Cass County Sheriff’s Office and the Mid-Iowa Narcotics Enforcement (MINE) Task Force. This case was prosecuted by the U. S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Riverview Woman Sentenced to 7 Years in Federal Prison for Stolen Identity Refund FraudRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore yesterday sentenced Ashley C. Guy (30) to 7 years in federal prison for committing wire fraud and aggravated identity theft. The court also entered a money judgment against Guy in the amount of $309,895, the proceeds of the wire fraud and identity theft scheme. Guy pleaded guilty to the offenses on January 27, 2014.
According to court documents, Ashley C. Guy, a/k/a “Ashley C. Gay,” devised and participated in a scheme to defraud the United States out of tax refunds by using stolen identities to electronically file false federal income tax returns. During the execution of a search warrant at Guy’s residence, federal agents uncovered lists containing more than 200 names, dates of birth, and Social Security numbers, as well as at least 15 prepaid debit cards in the names of others. The search also revealed documents containing information on the filing of false tax returns, $1,500 in U.S. currency in a small safe located in the living room, and $642 in U.S. currency seized from a purse in Guy’s master bedroom. In addition, agents found a trash can on the back porch of the residence that had been used for burning documents related to the fraud. From the trash can, agents were able to recover a list of personal identifying information that had not been completely burned.
Between January 2012 and April 2013, approximately 100 false federal income tax returns were filed from Guy’s house, claiming $560,713 in tax refunds. Another 112 false returns, claiming $801,011 in refunds, were filed from different locations, but were linked to Guy based upon the stolen identities and prepaid debit cards found in her house. The Internal Revenue Service (IRS) was able to stop many of these fraudulent refund claims. Out of the total 212 returns claiming roughly $1,361,724 in refunds, the IRS was ultimately defrauded into paying $309,895.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Tampa Police Department, with assistance from the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
Registered Child Sex Offender Sentenced to 15 Years for Receipt of Child PornographyRead the Press Release
WILMINGTON, Del. – William Zimmerman, age 64, of Georgetown, Delaware, was sentenced today to 15 years in federal prison for Receipt of Child Pornography, in violation of federal law. Zimmerman also was sentenced to 10 years of supervised release following his prison sentence. He also will be required to continue to register as a sex offender in any jurisdiction in which he lives, works, or attends school.
Zimmerman was previously convicted in Delaware of Unlawful Sexual Contact Second Degree in 1988 and Possession of Child Pornography in 1993. He served 4 years in prison for the child pornography offense, and was released from custody in 1997. At the time of the instant offense, he was registered as a sex offender as required by Delaware and federal law.
According to statements made and documents filed in court, Zimmerman came to the attention of the Delaware Child Predator Task Force (the “Task Force”) during its investigation of Roger Cordero and David Pennington, two other registered child sex offenders living in Delaware, who had met while incarcerated at the Smyrna Correctional Institution for other child sexual offenses. In December 2012, the Task Force conducted residential searches at Cordero and Pennington’s residences. They recovered computers containing thousands of images of child pornography and handwritten stories relating to child sexual abuse from Cordero’s residence, and found a cell phone referencing child pornography images at Pennington’s residence.
Pennington, who was then wearing an electronic monitoring device due to a state probation violation, provided the Task Force officers with information about Zimmerman, whom Pennington met in sex offender therapy. In particular, Pennington admitted that he and Zimmerman viewed child pornography together on a computer located at Zimmerman’s residence. They did this at Zimmerman’s residence because Pennington was on active probation and was prohibited from possessing a computer in his residence. Pennington also admitted that Zimmerman had sent him cell phone text messages attaching images of child pornography.
On January 8, 2013, Task Force officers executed a state search warrant at Zimmerman’s Georgetown residence. They recovered several pieces of computer equipment found to contain over 2,300 images of child pornography. The images featured children, mostly boys, ranging in age from infancy to mid-teen, who were posed or engaged in sexual acts with adult males.
In the spring of 2013, the Delaware Attorney General’s Office referred the Cordero and Zimmerman cases to the United States Attorney’s Office for federal prosecution. The Delaware Attorney General’s Office proceeded with a state prosecution of David Pennington, which resulted in Pennington being sentenced to 28 years in prison in October 2013.
Following today’s sentencing hearing, United States Attorney Charles M. Oberly, III stated: “With the active cooperation of State and Federal authorities, three serious child predators have been taken into custody. Zimmerman and Pennington have pled guilty and received sentences of 15 and 28 years. Cordero is scheduled for trial in June 2014 and faces a mandatory minimum term of 35-60 years of incarceration if convicted. These cases serve as an example of what can be achieved through the mutual cooperation of state and federal law enforcement.”
Delaware Attorney General Beau Biden credited the Delaware Child Predator Task Force with identifying all three defendants after receiving a CyberTip in late 2012 from the National Center for Missing and Exploited Children.
“These individuals will never again be a threat to children. After receiving a CyberTip the Child Predator Task Force worked quickly to uncover a child pornography network operating locally in our State and took three dangerous predators off the streets. Thanks to its excellent investigation and to our strong partnership with state and federal law enforcement agencies we’re using the full force of the law to protect children.”
“Homeland Security Investigations (HSI) special agents in Wilmington will continue to work tirelessly with our partners of the Delaware Child Predator Task Force and the U.S. Attorney’s Office in bringing child sexual predators to face justice and to ensure that those victims who are identified are rescued from this plight,” said HSI Special Agent in Charge in Philadelphia John P. Kelleghan. “This sentencing is a reminder to those who exploit our most innocent citizens, children: We will identify, investigate and arrest you for committing these horrendous crimes.”
All three cases were brought as part of the United States Department of Justice’s Project Safe Childhood Program, which was launched in May 2006 to combat the growing epidemic of online child sexual exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue child victims. Under this program, the Delaware Attorney General’s Office, the United States Attorney’s Office, the Delaware State Police and the United States Department of Homeland Security have worked together to investigate and prosecute Zimmerman, Cordero and Pennington.For more information about the Project Safe Childhood Program, please visit http://www.justice.gov/psc/. For more information about reporting online child exploitation to the national CyberTipline, visit the National Center for Missing and Exploited Children’s website at: www.missingkids.com.
Ordained Minister Sentenced to 5 Years in Prison for Receiving Pornographic Videos of ChildrenRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to five years imprisonment, to be followed by 10 years of supervised release, on his conviction of receipt of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Charles Appel, 72, of Pittsburgh, Pa.
According to information presented to the court during the earlier guilty plea proceeding, Appel, an ordained minister and retired St. Edmund’s Academy teacher, received by United States mail, on Feb. 21, 2011, a video which depicted the sexual exploitation of minor boys from a Canadian video production company known as “Azov”, which previously operated a website offering DVD’s and streaming videos depicting children being sexually exploited. Appel ordered and received the video, titled “Boy Fights XIX: Triple Threat (2009)”, in both electronic and DVD format for $29.95 on Feb. 21, 2011, which he paid for with a credit card. During the period May 15, 2009 through March 13, 2011, Appel ordered child pornography videos from Azov on 29 occasions for a total cost of $1,864.54.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service and members of the Pittsburgh Crimes Against Children Task Force, for the investigation leading to the successful prosecution of Appel.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
One Correctional Officer Sentenced and Another Pleads Guilty in Baltimore Jail Racketeering ConspiracyRead the Press Release
One Defendant Sentenced to 30 Months for Smuggling Drugs;
Thirteenth Officer Pleads Guilty and Admits to Having Sex With BGF InmatesBaltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Katrina Laprade, a/k/a Katrina Lyons, age 32, today to 30 months in prison followed by one year of supervised release for participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Another correctional officer, Tanierdra Finch, age 26, of Baltimore, and Frederick Morrison, a/k/a Fry, an inmate, age 29, pleaded guilty yesterday to the conspiracy.
The sentence and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, the Black Guerilla Family (BGF) has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center BCBIC, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
Laprade and Finch, correctional officers at BCDC, admitted that in 2012 and 2013, they helped smuggle contraband into the jail. Laprade smuggled in marijuana and tobacco on behalf of Stephen Loney, a leader of the BGF. Finch admitted that she smuggled drugs such as Percocet into BCDC for distribution by BGF inmates such as Tavon White and Jamar Anderson. Finch also had sexual relations with some BGF members, including Anderson.
Morrison was a BGF member and in pretrial custody at BCDC from 2012 to 2013. He was involved with and often directed the smuggling of cell phones, tobacco, marijuana and drugs into BCDC through other correctional officers who received payments, gifts or a share of the profits. Morrison had sexual relations with at least one of the correctional officers involved with contraband trafficking. He also helped conceal from prison officials contraband smuggled into the jail.As part of his plea agreement, Morrison and the government have agreed that if the Court accepts the plea agreement, Morrison will be sentenced to five years in prison consecutive to any state prison sentence he is serving. Finch faces a maximum sentence of 20 years in prison for the racketeering conspiracy. Judge Hollander scheduled sentencing for Morrison on August 27, 2014 and for Finch on August 8, 2014.
Thirteen correctional officers have pleaded guilty to their roles in the conspiracy. Two of these correctional officers, Taryn Kirkland, age 23, and Adrena Rice, age 26, both of Baltimore, were sentenced in January 2014, each to 42 months in prison and officer Jasmine Thornton, a/k/a J.T., age 27, of Glen Burnie, Maryland, was sentenced to 32 months in prison on February 5, 2014.
BGF leader Tavon White, age 37; BGF commander Steven Loney, age 25; BGF members Jamar Anderson a/k/a “Hammer” and “Hamma Head,” and Kenneth Parham, both age 24; and Jermaine McFadden, age 25, an associate of BGF; also pleaded guilty to the racketeering enterprise. Parham was sentenced on February 24, 2014 to151 months in prison, McFadden was sentenced on March 12, 2014 to 140 months and Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White and Jamar Anderson are awaiting sentencing.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Ocean County, N.J., Man Admits Forging IRS Documents to Evade Federal Tax LienRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., man today admitted forging and transmitting documents to evade a federal tax lien, U.S. Attorney Paul J. Fishman announced.
Charles W. Jarvis, 59, of Toms River, N.J., pleaded guilty today before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of corruptly endeavoring to impede and impair the administration of the Internal Revenue Code.
According the documents filed in this case and statements made in court:
In 2012, Jarvis and his wife incurred a federal tax liability of $76,676 due to insufficient tax withholdings in 2009 and 2010. The IRS filed a tax lien against a piece of property that Jarvis’ wife had inherited from her deceased mother’s estate. Jarvis’ wife then contracted to sell the property to a third party, but could not transfer title due to the tax lien. Jarvis forged a “Notice of Tax Lien Release” and a letter purportedly from the IRS falsely claiming that the tax liability had been paid and the lien discharged. Jarvis sent the forged documents to the real estate attorney handling the sale of the property, who provided the documents to the title agent. The sale of the property closed even though the tax lien had not been satisfied.
The count to which Jarvis pleaded guilty carries a maximum potential penalty of three years in prison and a $5,000 fine. Sentencing is scheduled for August 7, 2014.
U.S. Attorney Fishman credited special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert M. Geary of the Philadelphia office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.14-139
Defense counsel: Robert J. Bowman Esq., Voorhees, N.J.
Jarvis, Charles Information
North Port Couple Pleads Guilty to Filing A False Tax Refund ClaimRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that North Port residents James Dee Jaeger (62) and Lora Anne Jaeger (50) each pleaded guilty yesterday to one count of filing a false claim for tax refund. Each faces a maximum penalty of 5 years in federal prison.
According to the plea agreement, on March 31, 2009, James Dee Jaeger and Lora Anne Jaeger electronically filed a joint federal income tax return with the IRS falsely claiming a refund in the amount of $344,672. The false refund amount was based on a bogus theory that the U.S. banking system maintains “Remic Trust” accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS. Under this theory, the taxpayer first files a false Form 1099 Original Issue Discount (OID), to justify a false refund claim on a corresponding tax return. In this case, the IRS did not issue the fraudulent tax refund claimed by the Jaegers.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Kevin C. Lombardi of the Department of Justice, Tax Division.
North Canton Man Faces Gambling-Related ChargesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced the filing of a two-count Information charging Joseph Udeck, age 70, of North Canton, Ohio, with conspiracy to launder monetary instruments and the transmission of wagering information.
Count 1 of the information alleges that from at least as early as January 1, 2000, and continuing up to and including May 1, 2011, Joseph Udeck conspired to launder money generated from an illegal sports bookmaking operation.
Count 2 of the information alleges that Joseph Udeck engaged in the business of betting and wagering and with using one or more wire communication facilities for the transmission and interstate commerce of bets and wagers and information assisting in the placing of bets and wagers on one or more sporting events and contests.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including a defendant’s prior criminal record, if any, a 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.
The investigation preceding the information was conducted by the United States Secret Service and its Money Laundering Task Force. The case is being prosecuted by Assistant United States Attorneys Robert E. Bulford and Robert J. Patton.
An information 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.
Nine Indicted in Kidnaping Case of Wake Forest ManRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that today, a federal grand jury in Wilmington, North Carolina returned a multi-count indictment charging KELVIN MELTON, a/k/a Dizzy, Old Man, 49, QUANTAVIOUS THOMPSON, a/k/a QUAN, KIRKWOOD QUAN, 18 or 19, JAKYM CAMEL TIBBS, a/k/a JOK, JAK, 20, TIANNA DANEY MAYNARD, a/k/a TIANNA DANET MAYNARD, TIANNA DANET SOLOMON, TIANNA BROOKS, AXT UP, ACT UP, 30, JENNA MARTIN, a/k/a JENNA PAULIN MARTIN, 21, CLIFTON JAMES ROBERTS, a/k/a YEELO, CJ, YEE, KING YEE, ELO, 29, PATRICIA ANN KRAMER, a/k/a TRISH, TRISHA, 28, JEVANTE PRICE, a/k/a JEVANTE TRAVELL PRICE, FLAME, 20, and MICHAEL MARTRELL GOODEN, a/k/a Hot, MICHAEL MONTREAL GOODEN, MICHAEL MARTREE GOODEN, 21, with Conspiracy to Commit Violations of the Kidnaping Statute. Count Two charges MELTON, KRAMER, PRICE, and GOODEN with Attempted Kidnaping and Aiding and Abetting the Same. Count Three charges MELTON, PRICE, and GOODEN with Using and Carrying a Firearm During and in Relation to Attempted Kidnaping and Aiding and Abetting the Same. Count Four charges MELTON, THOMPSON, TIBBS, MAYNARD, MARTIN, ROBERTS, PRICE, and GOODEN with Kidnaping and Aiding and Abetting the Same. Count Five charges MELTON, THOMPSON, TIBBS, and MAYNARD with the Use, Carrying, and Brandishing a Firearm During and in Relation to, and Possessing a Firearm in Furtherance of, a Kidnaping and Aiding and Abetting the Same.
If convicted on the Conspiracy to Commit Kidnaping charge, all the defendantsface a maximum penalty of life imprisonment and a $250,000 fine.
The case is being investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.
The charges contained in this indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Click on link for attached indictment.
Newman Lake Man Sentenced to 10 Years in Federal Prison for Distributing MethamphetamineRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Henry Patrick Bevans, III, age 30, of Newman Lake, Washington, was sentenced today for distributing 50 grams or more of pure methamphetamine. Senior United States District Court Judge Fred Van Sickle sentenced Bevans to a 10-year term of imprisonment and a 10-year term of court supervision following release from Federal prison. The Court also ordered Bevans to pay $8,000 in restitution to the United States.
According to information disclosed during court proceedings, on July 16, 2013 and July 18, 2013, Bevans distributed 109 and 119 grams of pure methamphetamine to another individual in a hotel room in Spokane, Washington. Bevans was charged with two counts of distributing 50 grams or more of pure methamphetamine and he pled guilty to those crimes on December 18, 2013.
Michael C. Ormsby said, "I commend the officers of the Spokane Police Department, Spokane County Sheriff's Office, Spokane Regional Drug Task Force, Spokane Violent Crimes and Gang Enforcement Team, and United States Drug Enforcement Administration for their efforts in investigating this methamphetamine case. Their strong working partnership is reflected by the successful prosecution of this case. Federal and local law enforcement officers in the Eastern District of Washington continue to work together to root out the scourge of drug trafficking in this District. With their assistance, the United States Attorney's Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking appropriate punishment for traffickers distributing controlled substances in our communities."
This case was investigated by the Spokane Police Department, Spokane County Sheriff's Office, Spokane Regional Drug Task Force, Spokane Violent Crimes and Gang Enforcement Team, and United States Drug Enforcement Administration. This case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-00125-FVS
Nashville Woman Sentenced to Prison for Stealing VA Funds Intended for Needy VeteransRead the Press Release
Squandered More Than $364,000 Intended to Assist Homeless Veterans
Birdie Anderson, 56, of Nashville, Tenn., was sentenced on April 18, 2014, by U.S. District Judge Todd Campbell to serve 2 years in prison for making false statements to the Department of Veterans Affairs (VA), and stealing public money, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Anderson pleaded guilty in April 2013 to stealing the money obtained in three VA grants, totaling more than $364,000 during 2006 and 2007, which was intended to assist indigent and homeless veterans.
“This is a truly egregious violation,” said U.S. Attorney David Rivera. “There is no group as worthy of government assistance as those who have served their country in the military, and have since fallen on hard times. This defendant’s greed and deception deprived that group of assistance they needed, and as a result they will not receive the benefit of the money she stole and squandered. Hopefully others like defendant who may be tempted to take advantage of government programs that are intended to help others, will take heed of this case.”
According to testimony at the hearing, in April 2007 Anderson obtained the first VA grant of $80,000 for the purchase of a dwelling. The grant agreement specified that she would not be required to repay the grant on condition that she would maintain the property as a residence for homeless veterans for a period of seven years. She represented that the property was worth $124,000 and that she had the rest of the money on hand in cash for the purchase. In truth she did not have the balance of the purchase price in cash, but instead obtained a mortgage loan of $75,000 to purchase the property. She then used only about $55,000 of the $80,000 cash grant provided by VA to close on the property, and simply kept the rest. She made only one payment on the mortgage, and defaulted on the loan. Though the property was used to house veterans for a period of time, it has been repossessed and is no longer available to veterans as a residence.In December 2007 Anderson obtained a second grant of $25,000, which she represented she would combine with matching funds to purchase a $40,000 specialty van for use in transporting veterans to medical appointments and job interviews. Anderson submitted a sales contract and a vehicle identification number for the van she represented she was going to purchase, in support of her grant application. She received and kept the cash VA deposited into her bank account, but simply never purchased the van.
In March 2009 Anderson applied for and obtained a third VA grant of more than $250,000 for the purchase of a large apartment building worth $398,000. Anderson again represented that she would maintain this building as a residential dwelling for homeless veterans, and that the City of Nashville had agreed to provide the matching funds for the purchase. In support of this representation, Anderson submitted a letter which purported to have been sent by the director of the Nashville Commission on Homelessness, and which represented that Nashville had committed the balance of funds needed for this purchase. The letter was later determined to be a forgery. Anderson received the VA grant funds but never closed on the property, since she did not in fact have any matching funds. When VA officials inquired of Anderson regarding the fact that no purchase had occurred, she falsely represented that she was undergoing cancer treatments.
The matter was referred to the VA Office of Inspector General for investigation. Agents executed a search warrant on Anderson’s Nashville residence in February 2012. No money was located, but agents discovered hundreds of receipts demonstrating gambling activity at regional casinos and horse tracks. A review of her bank records likewise revealed numerous checks written to and debit card use at such establishments, during 2007 through 2009. Anderson told agents that the $250,000 cash from the third grant was in a safe located in New Hampshire. Further investigation, however, disclosed no such safe or cash being maintained on Anderson’s behalf and none of the grant money was ever recovered.
Monty Stokes, Special Agent in Charge, VA Office of Inspector General, said, “The VA Grant and Per Diem Program’s goal is to promote the development of supportive housing and services to assist homeless veterans achieve residential stability, increased skills and obtain greater independence. Because of the successful investigative and prosecutive efforts of the VA OIG and the U.S. Attorney’s office, Birdie Anderson’s greed and deception will not go unchecked. She will have the next two years to contemplate if it was really worth it.”
The case was investigated by the Nashville VA Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Hilliard Hester.
Middlesex County, N.J., Man Sentenced to 18 Years in Prison for Production, Distribution of Child Sex Abuse ImagesRead the Press Release
TRENTON, N.J. – A Middlesex County, N.J., man who once worked as a school crossing guard was sentenced today to 216 months in prison for taking compromising photographs of a naked child and distributing them and hundreds of other photographs of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Kenneth Christensen, 45, of Edison, N.J., previously pleaded guilty before U.S. District Judge Peter G. Sheridan to information charging him with one count of production of child pornography and one count of distribution of child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:Christensen – who worked as a school crossing guard in Metuchen, N.J., prior to his arrest – admitted that in 2012, he sent four individuals emails containing several hundred images of child pornography, including sadistic and masochistic conduct. Christensen acknowledged he distributed more than 600 such images.
Christensen also admitted that some of the files he distributed were photographs he took himself, including in his own bedroom, of a naked, prepubescent child who was bound in some of the images.
In addition to the prison term, Judge Sheridan sentenced Christensen to lifetime supervised release and required him to register as a sex offender.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark