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29 May 2014
Home Health Worker Convicted of Aggravated Identity Theft for Victimizing Elderly PatientRead the Press Release
Follow @SDILNewsA former home health personal nursing assistant, Melissa Charlton, 36, of Valmeyer, Illinois, pleaded guilty to access device fraud and aggravated identity theft on May 29, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Documents filed in US District Court establish that Charlton exploited an 82 year old woman from O’Fallon, Illinois. Charlton obtained unauthorized access to the victim’s credit cards and her checking account to obtain money and goods valued at more than $5,000. The victim attempted to stop the fraud after she discovered fraudulent credit card purchases, but Charlton also stole her replacement credit cards and misused the victim’s social security number and date of birth to activate the replacement cards. She also used the victim’s personal information to apply for an additional credit card account without the victim’s knowledge or consent.
Access device fraud is punishable by not more than 10 years in prison, and/or a $250,000 fine, or both, and not more than three years of supervised release. Aggravated identity theft carries a mandatory consecutive two-year sentence of imprisonment that must be served in addition to the sentence imposed for access device fraud. The United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Charlton will be sentenced in US District Court on September 17, 2014.
The investigation was conducted by agents from the US Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Hollister Resident Pleads Guilty to Wire Fraud Stemming from an Employee Embezzlement SchemeRead the Press Release
SAN JOSE – Briana Irene Roy pleaded guilty in federal court in San Jose today to wire fraud stemming from an employee embezzlement scheme, announced United States Attorney Melinda Haag.
In pleading guilty, Roy admitted that she had been employed in the marketing division of a local engineering company based in San Jose, Calif. She also admitted that she devised and implemented a scheme whereby she used a company credit card issued in the name of one of the company’s executives on approximately 80 separate occasions between March 2010 and February 2013. Using the company’s credit card, Roy made charges to her personal PayPal account for her personal benefit, and attempted to conceal these activities by generating fake invoices and receipts for products and services in the name of another San Jose business. Through this fraudulent scheme, Roy admitted that she attempted to gain funds to which she was not entitled in the amount of $247,387.45.
Roy, 38, of Hollister, Calif., was charged on Dec. 13, 2013, with one count of wire fraud, in violation of Title 18 United States Code Section, 1343. Under the plea agreement, Roy pleaded guilty to the single count and agreed to pay restitution for the full amount of the loss. Roy is currently released on bond. Bail was set previously at $50,000.
Roy’s sentencing hearing is scheduled for Oct. 23, 2014, at 10:00 a.m., before the Honorable D. Lowell Jensen, Senior United States District Court Judge, in San Jose. The maximum statutory penalty for the single count in violation of 18 U.S.C. § 1343 is 20 years in prison and a fine of $250,000 or twice the gross gain or loss, plus restitution in the agreed upon amount of $197,240.95. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Amie Rooney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Tracey Andersen. The prosecution is the result of an investigation by the United States Secret Service.
(Roy information )
Holland, Ohio, Man Charged with Transporting Minor Across State Lines to Engage in Illegal Sexual ActivityRead the Press Release
An indictment was filed charging Robert Pollard, 23, of Holland, Ohio, with transportation of a minor across a state line with intent to engage in prostitution or illegal sexual activity on April 16, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation. The case is being handled by Assistant United States Attorney Alissa M. Sterling.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Haverhill Woman Indicted for Using Paypal in Scheme to Embezzle Close to $1 MillionRead the Press Release
BOSTON – A Haverhill woman was charged yesterday with using PayPal as part of a scheme to embezzle close to $1 million from her employer, a privately-held information technology staffing company based in Massachusetts.
Anita Allen, 34, was indicted on wire fraud charges. Allen was previously arrested on a criminal complaint at the airport in Charleston, S.C., and has remained in custody since that time.
According to the indictment, Allen, who worked as an accounts payable specialist, defrauded the company over a period of more than five years by directing dozens of transfers of money from a dormant company PayPal account to a PayPal account in her own name. Allen then forwarded the money from her PayPal account to her personal bank account, and spent it on day-to-day living expenses, travel, and the purchase of several vintage automobiles.
In addition, Allen charged numerous personal purchases to a company credit card, including multiple cruises on Norwegian Caribbean Lines, and purchases at retailers including Amazon.com and The Disney Store. Allen succeeded in hiding the fraud scheme by doctoring monthly credit card statements and falsifying entries in the very accounting journals it was her responsibility to maintain. In total, the fraud resulted in a loss to the company approaching $1 million.
If convicted, Allen faces a maximum sentence under the statute of 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim. The government is also seeking forfeiture of classic cars purchased by the defendant with proceeds of the fraud, including a 1951 Chevrolet Fleetline sedan, a 1965 Factory Replica Cobra roadster, a 1967 Ford Mustang coupe, and a 1970 Dodge Challenger.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case is being prosecuted by Stephen E. Frank of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Gregg County Man Sentenced in Counterfeit Silver SchemeRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 47-year-old Longview, Texas man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Leroy Frattarola pleaded guilty on Mar. 5, 2014, to possessing counterfeit silver bars with the intent to defraud another and was sentenced to 21 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Sep. 13, 2013, Frattarola possessed approximately 90 one-ounce silver bars, stamped with the impression, “.999 FINE SILVER” and “NORTHWEST TERRITORIAL MINT” with intent to defraud another. Frattarola admitted to possessing the counterfeit bars in Longview, Texas and to engaging in similar criminal conduct on other occasions involving a total of nine victims. Frattarola was indicted by a federal grand jury on Oct. 23, 2013.
Frattarola was also ordered to pay a total of $28,720.40 in restitution to be divided among nine victims.
This case was investigated by the U.S. Secret Service, Longview Police Department, Kingsville Police Department, Terrell Police Department, Grand Prairie Police Department, and the Brazoria County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Jim Noble.
#######Government Files Complaint Against CA Inc. for False Claims on GSA ContractRead the Press Release
WASHINGTON - The government has filed a complaint against CA Inc. (CA) for violations of the False Claims Act in connection with a General Services Administration (GSA) contract, the Justice Department announced today. CA manufactures and sells information technology products and is headquartered in Islandia, New York.
“We expect companies that do business with the government to comply with their contractual obligations,” said Assistant Attorney General of the Justice Department’s Civil Division Stuart F. Delery. “As this case demonstrates, we will take action against those who seek to abuse the government’s procurement process.”
“Too many federal contractors think they can get away with overcharging the government,” said U.S. Attorney Ronald C. Machen Jr. “Our complaint alleges that CA broke its promise to give the government the discounts promised under the contract, as well as the same prices it was giving commercial customers. We look forward to vigorously pressing these claims in court and recovering every dollar that is owed to the American taxpayer.”
In September 2002, CA entered into a GSA contract to provide software licenses, software maintenance, training and consulting services to various government agencies. The government’s complaint alleges that, since at least 2006, CA knowingly overcharged the government for software licenses and maintenance in various ways. For example, the government alleges that CA provided incomplete and inaccurate information to GSA contracting officers during negotiation of contract extensions. At the time CA negotiated these extensions, applicable regulations and contract provisions required CA to fully and accurately disclose how it conducted business in the commercial marketplace, so GSA could use that information to negotiate a fair price for government customers. The government also alleges that CA failed to truthfully update its discounting practices during the life of the GSA contract. CA repeatedly certified to GSA that its discounting policies and practices had not changed, when in fact its discounts to commercial customers had increased.
The government’s complaint also alleges that, since 2002, CA failed to apply properly the contract’s price reduction clause. The contract required CA to monitor discounts to certain commercial customers, compare these discounts to the discounts given to the government and, if the commercial discounts were higher, pass on those higher discounts to the government. The government alleges that CA failed to make those comparisons or, when it did make such comparisons, failed to do so correctly, resulting in the government overpaying for CA’s information technology.
CA’s contract is a Multiple Award Schedule (MAS) contract. Under the MAS program, GSA pre-negotiates prices and contract terms for subsequent orders by federal agencies. Agencies that purchase under CA’s contract include the Department of Defense, the Department of Energy, the Department of Health and Human Services and the Department of Labor.
“Companies doing business with the federal government on a GSA schedule must disclose current, accurate, and complete commercial discounts, so that GSA can get the best prices on behalf of American taxpayers,” said GSA Acting Inspector General Robert C. Erickson. “We will continue to investigate all allegations indicating that the federal government may have been overcharged by a contractor.”
Some of the allegations that are the subject of the government’s complaint were filed in a lawsuit originally brought by Dani Shemesh, a former employee of CA Israel Ltd., under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government and to share in any recovery. The Act also authorizes the government to intervene and assume primary responsibility for litigating the lawsuit, as the government has done in this case. The government had previously notified the court that it intended to join in Shemesh’s lawsuit and file its own complaint.
This investigation reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia and the GSA’s Office of Inspector General.
The qui tam case is captioned United States ex rel. Dani Shemesh v. CA Inc., No. 09-1600 (D.D.C.). The complaint filed by the government contains allegations only; there has been no determination of liability.
14-124Government Files Complaint Against CA Inc. <br /> for False Claims on GSA ContractRead the Press Release
The government has filed a complaint against CA Inc. (CA) for violations of the False Claims Act in connection with a General Services Administration (GSA) contract, the Justice Department announced today. CA manufactures and sells information technology products and is headquartered in Islandia, New York.
“We expect companies that do business with the government to comply with their contractual obligations,” said Assistant Attorney General of the Justice Department’s Civil Division Stuart F. Delery. “As this case demonstrates, we will take action against those who seek to abuse the government’s procurement process.”
“Too many federal contractors think they can get away with overcharging the government,” said U.S. Attorney for the District of Columbia Ronald C. Machen Jr. “Our complaint alleges that CA broke its promise to give the government the same prices it was giving commercial customers. We look forward to vigorously pressing these claims in court and recovering every dollar that is owed to the American taxpayer.”
In September 2002, CA entered into a GSA contract to provide software licenses, software maintenance, training and consulting services to various government agencies. The government’s complaint alleges that, since at least 2006, CA knowingly overcharged the government for software licenses and maintenance in various ways. For example, the government alleges that CA provided incomplete and inaccurate information to GSA contracting officers during negotiation of contract extensions. At the time CA negotiated these extensions, applicable regulations and contract provisions required CA to fully and accurately disclose how it conducted business in the commercial marketplace, so GSA could use that information to negotiate a fair price for government customers. The government also alleges that CA failed to truthfully update its discounting practices during the life of the GSA contract. CA repeatedly certified to GSA that its discounting policies and practices had not changed, when in fact its discounts to commercial customers had increased.
The government’s complaint also alleges that, since 2002, CA failed to apply properly the contract’s price reduction clause. The contract required CA to monitor discounts to certain commercial customers, compare these discounts to the discounts given to the government and, if the commercial discounts were higher, pass on those higher discounts to the government. The government alleges that CA failed to make those comparisons or, when it did make such comparisons, failed to do so correctly, resulting in the government overpaying for CA’s information technology.
CA’s contract is a Multiple Award Schedule (MAS) contract. Under the MAS program, GSA pre-negotiates prices and contract terms for subsequent orders by federal agencies. Agencies that purchase under CA’s contract include the Department of Defense, the Department of Energy, the Department of Health and Human Services and the Department of Labor.
“Companies doing business with the federal government on a GSA schedule must disclose current, accurate, and complete commercial discounts, so that GSA can get the best prices on behalf of American taxpayers,” said GSA Acting Inspector General Robert C. Erickson. “We will continue to investigate all allegations indicating that the federal government may have been overcharged by a contractor.”
Some of the allegations that are the subject of the government’s complaint were filed in a lawsuit originally brought by Dani Shemesh, a former employee of CA Israel Ltd., under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government and to share in any recovery. The Act also authorizes the government to intervene and assume primary responsibility for litigating the lawsuit, as the government has done in this case. The government had previously notified the court that it intended to join in Shemesh’s lawsuit and file its own complaint.
This investigation reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia and the GSA’s Office of Inspector General.
The qui tam case is captioned United States ex rel. Dani Shemesh v. CA Inc., No. 09-1600 (D.D.C.). The complaint filed by the government contains allegations only; there has been no determination of liability.# # #
Frederick Investment Advisor Indicted for Stealing over $1.2 Million from A ClientRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Travis Wetzel, age 35, of Frederick, Maryland on charges arising from the illegal transfer of $1,282,224 from a client’s annuity account. The indictment was returned on May 28, 2014 and Wetzel was arrested today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Wetzel was a financial advisor, employed with an investment advisory firm located in Rockville, Maryland. In 2009, Wetzel was promoted to branch operations manager. According to the 24 count indictment, from July 2010 to September 2012, Wetzel took a total of approximately $1,282,224 from an annuity account of a client without the client’s knowledge, and used the money for his personal benefit. Wetzel also allegedly laundered at least $376,444 of the money he took by transferring the money to other bank accounts he controlled.
Wetzel faces a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud; and 10 years in prison for money laundering. An initial appearance was held for Wetzel this afternoon at 1:45 p.m. in the U.S. District Court in Greenbelt. Wetzel was released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 praised the FBI for its work in the investigation and thanked Assistant United States Attorney David Salem and Leah J. Bressack, who are prosecuting the case.
Fraudsters Involved in Gold Purchase Scheme Are SentencedRead the Press Release
One Defendant Arrested at JFK International Airport Just Prior to
Boarding Flight to GhanaDALLAS — Two individuals, who defrauded Dallas-area investors in a gold purchase scheme they were involved in during late 2010, have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Annetta Lou Smith, aka “Annette Crawford,” 49, was sentenced today by U.S. District Judge Reed C. O’Connor to 30 months in federal prison. Co-defendant Warren Michael Hills, 54, of New Orleans, Louisiana, was sentenced earlier this month to 13 months in federal prison. Judge O’Connor ordered each defendant to pay $464,035 in restitution, jointly and severally. Each pleaded guilty in January 2014 to one count of conspiracy to commit wire fraud.
According to documents filed in the case, on August 27, 2013, Smith was informed that an indictment charging her and Hills with fraud would be presented to a federal grand jury in Dallas the following week. On Sunday evening, September 1, 2013, Smith was arrested on a criminal complaint by FBI agents at JFK International Airport, where she was awaiting a flight to Ghana, West Africa, scheduled to depart later that evening. She has been in custody since that time. Hills was arrested in New Orleans the following month, and Judge O’Connor remanded him into custody after his sentencing on May 15, 2014.
According to plea papers filed in the case, Smith and Hills worked together to recruit investors to purchase gold from the country of Ghana, West Africa. Smith and Hills represented to two particular investors that if these investors wired their funds to a specific bank account in Ghana, then they would cause the promised (and paid for) gold to be shipped to the investors. These two investors suffered substantial financial losses as a direct result of the failure of Smith and Hills to cause all of the promised gold to be delivered to them.
Although both Smith and Hills knew that the investors had fully paid for all of their promised gold, they also knew that all of the promised gold was ultimately never going to be shipped to them. Rather than be truthful to the investors, Smith and Hills made false representations to them promising the remaining gold would be shipped.
Smith and Hills caused substantial monetary losses to investors, including approximate total net losses of $113,483 to investor P.G. and approximately total net losses of $325,000 to investor M.W.
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 is 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. For more information on the task force, visit www.stopfraud.gov.
The FBI investigated the case and Assistant U.S. Attorney David Jarvis prosecuted.
Four from Northeast Ohio Indicted for $2 Million Tax FraudRead the Press Release
Four people from Northeast Ohio were indicted for a conspiracy to use false identities, including those of people incarcerated, to file nearly $2 million worth of false tax claims, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation, Cincinnati Field Office.
Named in the 11-count indictment are: Kenneth A. White, 47, Gwendolyn N. White, 31, Lacardaire M. Thedford, 47, all of Cleveland, and Lavelle G. Green, age unavailable, of Bedford Heights, Ohio.
“These defendants are charged with attempting to defraud the U.S. Treasury,” Dettelbach said. “They tried to take advantage of others to enrich themselves.”
“These individuals thought they had figured out a clever scheme to thwart the IRS and steal from the American taxpayers,” Enstrom said. “IRS will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds. Protecting taxpayer money is a matter we take very seriously.”
Kenneth White recruited people to use as claimants on some false tax returns, often with the promise of substantial refunds. White and Green also obtained names, Social Security numbers and other personal identifiers of other people to use as claimants, including people in prison or jail. In some cases, this was done without the knowledge or consent of these other people, according to the indictment.
Gwendolyn N. White, at the direction of Kenneth White and for a fee, prepared and electronically filed 10 false income tax returns for the year 2008 in the name of the claimants. The total amount claimed in the returns was approximately $1,995,687, according to the indictment.
Greene and Thedford knew false returns were filed on their behalf, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the Internal Revenue Service – Criminal Investigations.
If convicted, the defendant’s sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Joplin Teacher Sentenced to 28 Years for Sexual Exploitation of a ChildRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Joplin, Mo., middle school teacher was sentenced in federal court today for sexually exploiting a child victim to produce child pornography.
Charles D. Gastel, 40, of Carterville, Mo., was sentenced by U.S. District Judge Beth Phillips to 28 years in federal prison without parole. Following his prison term, Gastel must spend the rest of his life under supervised release.
Gastel was formerly a science teacher at South Middle School in Joplin. On Dec. 17, 2013, Gastel admitted that he sexually assaulted a teenage victim, identified in court documents as Jane Doe, over a period of approximately nine years. Gastel also admitted that he video-recorded some of the sexual assaults.
On July 13, 2013, a Carterville, Mo., police officer interviewed the 19-year-old victim at her home in Lamar, Mo. She reported that she had been sexually victimized by Gastel repeatedly, beginning when she was 10 years old. Jane Doe reported that during some of the assaults, Gastel used a digital video recorder to record them engaging in sexual acts.
On July 17, 2013, Gastel was interviewed at his residence by the investigators. He initially told the investigators that he did not have videos on his computer. When asked for consent to search his computer, Gastel replied that he wanted to talk to a lawyer because he had files on his computer that would end his teaching career. Gastel was then placed under arrest and officers obtained a search warrant for his residence. A forensic preview of the digital media seized by officers yielded the discovery of several video files that depicted Gaston sexually assaulting Jane Doe when she was 16 years old.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Carterville, Mo., Police Department, the Southwest Missouri Cybercrime Task Force and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Detroit Chief Administrative Officer Sentenced on Corruption and Tax OffensesRead the Press Release
Derrick Miller, former Chief Administrative Officer of the City of Detroit, was sentenced today to 12 months in a halfway house for corruption and tax offenses, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation, Carolyn Weber, Special Agent in Charge of the Internal Revenue Service, Criminal Investigations, Randall Ashe, Special Agent in Charge of the Environmental Protection Agency, Criminal Investigation Division, and Giovanni Tiano, Special Agent in Charge of the U.S. Department of Homeland Security, Office of Inspector General.
U.S. District Judge Nancy G. Edmunds also ordered that Miller, 44, of Vienna, Virginia, pay restitution and back taxes with penalties to the IRS.
According to court records, from 2005 to 2007, Miller, served as Chief Administrative Officer and Chief Information Officer for the City of Detroit. In these capacities, Miller had authority over the lease and sale of properties owned by the City of Detroit. During that period, Miller accepted $115,000 as corrupt rewards from a real estate broker who received commissions in connection with the lease or sale of city properties.
In October 2008, Miller filed an individual income tax return for the 2007 tax year in which he willfully made statements that he knew were false regarding the amount of income he received from two of his companies, Atrium Financial LLC and Citivest LLC, with the intent of concealing that income from the IRS. Miller intentionally failed to report on his return the $46,725 bribe he received that year from the real estate broker. Miller also intentionally failed to report on his tax return a total of $568,000 he received in 2007 for his assistance to a real estate company that entered into a purchase and leaseback of a portfolio of properties. The total amount of additional tax due and owing for tax year 2007 was $240,858.
The court departed from the advisory guidelines range of 70-87 months in prison because of Miller’s extraordinary assistance in the prosecution of a public corruption case of historic importance to this region. As a member of former Detroit Mayor Kwame Kilpatrick’s inner circle, Miller gave the jury a firsthand perspective of the illicit objectives and motivations of Kilpatrick, contractor Bobby Ferguson, and their associates.
McQuade said, “The court recognized that Miller’s cooperation was extraordinary and essential to bringing to justice other more serious wrongdoers. As a member of the inner circle of Kilpatrick’s criminal enterprise, Miller provided detailed and corroborated testimony about Kilpatrick’s fraud, bribery and extortion. Public officials should take note that early and extraordinary cooperation will yield a substantially lower sentence.”
United States Attorney McQuade thanked the agents of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, the Environmental Protection Agency Criminal Investigations Division, and the U.S. Department of Homeland Security Office of Inspector General for their assistance in the successful investigation of the case.
The case was prosecuted by Assistant U.S. Attorneys Mark Chutkow, R. Michael Bullotta, Jennifer Blackwell and Eric Doeh.
Former Council Member Michael A. Brown Sentenced to 39 Months in Prison for Accepting $55,000 in BribesBrown Also Admitted Carrying Out Separate Schemes Involving Contributions to Two Council CampaignsRead the Press Release
WASHINGTON – Michael A. Brown, a former member of the Council of the District of Columbia, was sentenced today to 39 months in prison for carrying out a scheme in which he accepted a total of $55,000 in a series of meetings with undercover FBI agents posing as officials of a company that purportedly wanted to win government contracting opportunities.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Brown, 49, pled guilty to a federal bribery charge in June 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Chief Judge Richard W. Roberts. The plea agreement called for Brown to pay a money judgment of $35,000 in forfeiture, covering the amount of money he collected before confronted by law enforcement. Upon completion of his prison term, Brown will be placed on two years of supervised release; during that time, Chief Judge Roberts ordered that he perform 200 hours of community service.
Brown was the third member of the Council of the District of Columbia to plead guilty within the past three years to federal charges involving crimes committed while they were in office. Harry L. Thomas Jr., who represented Ward 5, pled guilty in January 2012 to federal theft and tax charges in a scheme in which he used more than $350,000 in taxpayer money for his own personal benefit. Kwame R. Brown, the Council’s former Chairman, pled guilty in June 2012 to a federal charge of bank fraud, involving two personal loans, and a second criminal charge involving a violation of the District of Columbia’s campaign finance laws.
The charge against Michael A. Brown involved a scheme in which he admitted taking the cash payments in return for his assistance in winning the District of Columbia government’s approval for a company that was seeking to be classified as a Certified Business Enterprise, a designation that would create potentially lucrative business opportunities; Brown also agreed to help the company with government contracting opportunities.
Also, in two separate schemes, Brown admitted concealing the true source of $20,000 that was secretly contributed to his failed bid in 2007 for a seat on the District of Columbia Council and over $100,000 that was secretly contributed to his successful bid in 2008 for a seat on the District of Columbia Council. Under the plea agreement, Brown will not be criminally prosecuted for this conduct.
“Rather than wielding his political power to serve the citizens of the District of Columbia who voted for him, Michael Brown exerted his influence on behalf of purported contractors who were willing to line his pockets with hundred-dollar bills,”said U.S. Attorney Machen. “Brown’s decision to auction off the public trust was especially disappointing because of his enormous potential to stand as a bright light for the residents of this city. His term of incarceration will hopefully serve as an admonition to other public officials who are considering betraying their oath of office for fast cash.”
“In a shame to his oath of office and his duty to the District of Columbia, Mr. Brown took $55,000 in bribes and evaded campaign finance laws,” said Assistant Director in Charge Parlave. “Today’s sentence demonstrates that no one is above the law. Together with our law enforcement partners, the FBI will continue to investigate public officials who abuse the public trust and use their office to commit illegal acts.”
**Brown was elected as an At-large member of the District of Columbia Council in 2008 and took office in January 2009. He left office on Jan. 2, 2013, following his defeat last November for re-election. Brown then launched a bid to win another At-large Council seat in a special election scheduled for April 23, 2013. However, he withdrew his candidacy on April 2, 2013, less than three weeks after he was confronted by law enforcement in the bribery scheme.
Bribery Scheme:
According to a statement of offense signed by the government as well as the defendant, Brown’s At-large Council duties included acting as Chair of the Committee on Economic Development and Housing. The committee is responsible for matters related to economic, industrial and commercial development. The bribery scheme focused largely on a special program run by the District of Columbia government to help its small local businesses become economically viable: the Certified Business Enterprise (CBE) program.
Status as a CBE carries preferential procurement and contracting opportunities. To be eligible for this designation, businesses must meet certain requirements and be certified by the District of Columbia’s Department of Small and Local Business Development (DSLBD).
Prior to July 11, 2012, Brown had discussions about obtaining assistance of $50,000 to $75,000 for Brown from a government contractor. Brown expected to assist the government contractor with its business if the contractor provided such financial assistance to Brown.
These discussions led to a series of meetings with two undercover FBI agents, posing as employees of a Maryland company that wanted CBE approval and contracting opportunities. Between July 2012 and March 2013, Brown met in person with one or both of the undercover agents a total of eight times. He was in contact with one of the undercover agents on more than 30 separate days, in person, by phone, or by text, frequently seeking payment, in whole or in part, for the efforts he was making on the company’s behalf.
Over the months, Brown made calls on the company’s behalf to the director of the Department of Small and Local Business Development, introduced the undercover agents to a contractor at a symposium he sponsored, and took other actions meant to speed through the company’s attempts to win approval as a CBE. He continued these efforts even after his defeat in the November 2012 election. In January 2013, the Department of Small and Local Business Development did a site visit for the company’s application.
Brown accepted a total of $55,000 in five of the meetings. The final meeting was March 14, 2013, in which he accepted a $20,000 payment.
The company subsequently withdrew its CBE application.
Campaign Finance Scheme:In the spring of 2007, Brown was a candidate in a special election for the Ward 4 seat on the D.C. Council. Around that time, he met with business owner Jeffrey E. Thompson about obtaining funding for his campaign.
Thompson is the former chairman, chief executive officer, and majority owner of Thompson, Cobb, Bazilio and Associates (TCBA), a corporation that provided accounting, management, consulting, and tax services. He also is the former chairman, chief executive officer, and owner of D.C. Healthcare Systems, Inc. (DCHSI), an investment holding and for-profit corporation. Both companies generated millions of dollars in government contracts.
Thompson and six others have pled guilty to charges involving Thompson’s illegal contributions to numerous federal and District of Columbia campaigns.
In seeking the contribution in 2007, Brown understood that Thompson would not contribute in a public manner because certain business activities required support for other candidates, based on various political dynamics.
Brown understood that the contribution from Thompson would be publicly disclosed as having been contributed in the name of another person. He also understood from his discussion that it would exceed the limits on the amount that an individual could contribute to a political campaign committee. At the end of the meeting, “Thompson told Brown that Brown would hear from somebody to arrange the contribution.
Following this meeting, Brown was contacted by Eugenia C. Harris, another business owner, in the District of Columbia. Then, as agreed upon by Brown, Harris and Thompson a series of bank transfers began taking place. Brown understood that a total of $20,000 originated from Thompson. Harris sent two wire transfers, of $10,000 each, to Brown’s personal bank account. Brown, in turn, contributed the funds to his campaign.
Brown subsequently caused the campaign committee to file a form with the D.C. Office of Campaign Finance that publicly disclosed that Brown made an individual contribution of $25,000 to his political campaign committee, which Brown knew disguised the fact that Thompson was the source of most of this money.
Harris pled guilty in July 2012 to charges in the investigation.
Following Brown’s guilty plea, additional evidence was discovered about the extent of the contributions that Thompson secretly made to Brown’s successful campaign in 2008 for a seat on the District of Columbia Council. Brown admitted to this activity in an amended statement of offense filed in February 2014.
Among other things, Brown admitted that after losing the Ward 4 seat in 2007, he decided to enter the election for an At-large seat on the D.C. Council in 2008. Brown once again met with Thompson, who in October 2008 secretly channeled more than $100,000, through Harris, for a get-out-the-vote effort. Brown subsequently won the election for the Council seat.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Special Agent in Charge Kelly commended those who investigated the case for the FBI and IRS-CI.
They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael K. Atkinson, David A. Last, and Bryan Seeley of the Fraud and Public Corruption Section, and Assistant U.S. Attorney Anthony D. Saler, of the Asset Forfeiture and Money Laundering Section. Finally, they expressed thanks for assistance provided by Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris and Krishawn Graham, and Legal Assistant Angela Lawrence.
14-125Former APS Chief Information Officer Sentenced for Taking KickbacksRead the Press Release
ATLANTA - Former Atlanta Public Schools (APS) Chief Information Officer (CIO) Jerome Oberlton was sentenced to three years and five months in federal prison for conspiring to receive kickbacks in exchange for awarding a $780,000 contract to a computer vendor.
“Oberlton lined his own pockets at the expense of the APS students and teachers who depended on him,” said United States Attorney Sally Quillian Yates. “In a time when schools struggle to make the most of every dollar, Oberlton put his own greed before his obligation to protect scarce resources.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Oberlton’s sentence will afford him the opportunity to reflect upon his actions and should serve as a reminder to all who serve the public that manipulating the system for self-gain in this manner is not only wrong but criminal and that it will not be tolerated.”
“This sentence is a vital element in maintaining public confidence that this individual and others who commit similar crimes will be held accountable,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “IRS Criminal Investigation is committed to addressing financial fraud at every level and is proud to have worked with our law enforcement partners to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to United States Attorney Yates, the charges and other information presented in court: Oberlton, as APS’ CIO, had overall management responsibility for the APS information technology program. In January 2007, the school system issued a request for proposal (RFP) for a Data Warehousing (DW) project. The DW project was intended to centralize information relating to APS operations, including student information, so that it was maintained digitally in a secure, easily-accessible manner.
From the start of the project in January 2007, co-defendant Mahendra Patel and Oberlton conspired to influence the RFP process and, ultimately, caused the winning bidder to be selected in exchange for kickbacks paid to both. In order to hide the bribes, Oberlton created Global Technology Partners (GTP) and, later, Global Technology Services (GTS), funneling the bribe payments through these shell companies. Oberlton concealed his ownership of GTP and GTS from the school system, even when questions arose in 2007.
In contrast, the kickbacks to Patel were disguised as sales commissions for non-existent consulting work he supposedly performed for the shell companies. In reality, Patel acted as an intermediary, helping to negotiate the kickbacks to Oberlton from the vendor. The computer vendor ultimately paid approximately $60,000 in bribes to Oberlton over almost six months and, in return, the company received $780,000 in APS project work.
Oberlton was APS’ CIO between June 2004 and August 2007 and, most recently, was the Chief of Staff for the Dallas Independent School District before he resigned in May 2013, shortly after he was indicted.
Oberlton was sentenced to three years and five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $735,130. Oberlton was convicted on these charges on January 8, 2014, after he pleaded guilty.
This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Assistant United States Attorneys Kurt R. Erskine and Jill Steinberg prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Florida Woman Sentenced in $24 Million Dollar Mortgage Fraud CaseRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Michelle Vinas, 55, of Florida, who was convicted of financial institution fraud affecting M&T Bank, was sentenced to 18 months in prison and ordered to pay restitution totaling $423,434.98 by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that Vinas was an employee of the Federal Guaranty Mortgage Company based in Florida, and was responsible for the underwriting of loans which included complete review of loan applications, including supporting documentation and verification of information placed on loan applications. Once the underwriting was completed by the defendant, the loan files were submitted to financial institutions for funding.
In just one instance which exemplified the fraud, the defendant was provided information to include on a loan application for 1081 SW 156th Avenue in Pembroke Pines, Florida. The information stated that an individual had a monthly income of $21,000 and had in excess of $800,000 on deposit at a financial institution but Vinas that information was false. The defendant nevertheless approved the loan application as the underwriter which allowed the loan to be funded.
As a result of the defendant's actions, M&T Bank was one of nine financial institutions to suffer a loss and specifically suffered a loss of $4,407,515.48. The parties estimated that the total fraud scheme amounted to approximately $24,000,000.
Frank Garcia, the owner of Federal Guaranty Mortgage Company, has also been convicted in this case and is awaiting sentencing.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.Five Individuals Charged in Manhattan Federal Court with Participating in Student Visa and Financial Aid Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), Brian M. Hickey, the Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office (“ED-OIG”), and David J. Schnorbus, the Special Agent-in-Charge of the New York Field Office of the U.S. Department of State’s Diplomatic Security Service (“DSS”), announced charges today against five individuals for their participation in a scheme to fraudulently represent that their for-profit schools were complying with immigration and financial aid regulations. Defendants SURESH HIRANANDANEY, a/k/a “Sam Hiranandaney,” LALIT CHABRIA, ANITA CHABRIA, and SEEMA SHAH are charged with student visa fraud and wire fraud, and defendants SURESH HIRANANDANEY, LALIT CHABRIA, ANITA CHABRIA, and SAMIR HIRANANDANEY are charged with student financial aid fraud. All of the defendants were arrested today and presented before U.S. Magistrate Judge Gabriel W. Gorenstein in Manhattan federal court this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, through their for-profit schools, the defendants defrauded the government and exploited their students. For their personal financial gain, the defendants allegedly made false certifications about the schools’ compliance with visa and financial aid regulations when, in fact, they were not. I want to thank our law enforcement partners at ICE-HIS, the State Department and the Department of Education for their excellent work in investigating this case.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr., said: "The defendants arrested today allegedly orchestrated a wide ranging fraud scheme, which included the falsification of student and financial aid files and failure to report to the government students who were non-compliant with the terms of their student visas, that victimized American taxpayers. HSI leads the Document Benefit Task Force to protect the interests of legitimate educational institutions seeking to enrich our culture through the education of foreign students and to close vulnerabilities in the visa approval and school certification processes.”
ED-OIG Special Agent-in-Charge Brian Hickey said: “Federal student aid exists so that individuals can make their dream of a higher education a reality, it’s not a personal slush fund for corrupt school owners. Ensuring that anyone who steals student aid or games the system for their own selfish purposes, as today’s actions allege these individuals did, are stopped and held accountable for their criminal actions is a big part of our mission.”
DSS Special Agent-in-Charge David J. Schnorbus said: “The United States Department of State supports international education and welcomes foreign students. In situations where foreign students do not fulfill their responsibilities of properly maintaining their non-immigrant status or purposefully ignore their visa status regulations, and school owners place financial greed above education by exploiting the student exchange and visitor visa system, our national security becomes compromised. The Diplomatic Security Service works tirelessly, both domestically and overseas, to strengthen our national security and play a vital role in securing our nation’s borders through combatting this and other types of visa fraud.”
As alleged in the Complaint unsealed today in Manhattan federal court:
Each of the defendants was associated with the Micropower Career Institute (“MCI”), a for-profit school with five campuses in New York and New Jersey, or the Institute for Health Education (“IHE”), a for-profit school located in New Jersey. SURESH HIRANANDANEY, a/k/a “Sam Hiranandaney,” was MCI’s President; his sister, ANITA CHABRIA, was MCI’s Vice President; and his brother-in-law, LALIT CHABRIA, was MCI’s Vice President and IHE’s President. SURESH HIRANANDANEY’s son, SAMIR HIRANANDANEY, was the director of MCI’s Hauppauge campus. SEEMA SHAH was a high-level employee at MCI’s Manhattan campus.
Student Visa Fraud Conspiracy
(SURESH HIRANANDANEY, LALIT CHABRIA, ANITA CHABRIA, and SAMIR HIRANANDANEY)
(SURESH HIRANANDANEY, LALIT CHABRIA, ANITA CHABRIA, and SEEMA SHAH)
The named defendants are charged with failing to report to immigration authorities that foreign citizens were not attending classes at MCI and IHE, as required. Foreign citizens are granted F-1 student visas to remain in the United States as long as they are pursuing full courses of study at approved schools. If a student fails to attend classes as required, the school is required to inform immigration authorities, so that the authorities may terminate that student’s visa.
The defendants represented to immigration authorities that MCI and IHE were legitimate institutes of higher learning where foreign students carried full course loads. In reality, the majority of foreign students at MCI and IHE did not attend the required number of classes. Rather than reporting this to authorities, as required, the defendants remained silent and continued to collect approximately $10,000 in annual tuition from each of these students. When a campus of MCI came under regulatory scrutiny, the defendants would simply transfer students with delinquent attendance to an affiliated school (such as another MCI campus or IHE) that was not under scrutiny.
Wire Fraud Conspiracy
(SURESH HIRANANDANEY, LALIT CHABRIA, ANITA CHABRIA, and SEEMA SHAH)
The defendants named above are charged with using wire communications to commit the student visa fraud described above.
Student Financial Aid Fraud Conspiracy
(SURESH HIRANANDANEY, LALIT CHABRIA, ANITA CHABRIA, and SAMIR HIRANANDANEY)
The defendants named above are charged with fabricating and manipulating documents in student financial aid files at MCI to hide MCI’s widespread non-compliance with ED regulations. ED provides financial aid to eligible low-income post-high school students to assist them in affording higher education. MCI did not comply with federal laws and regulations governing the administration of such financial aid. When ED reviewed MCI’s administration of financial aid in 2011, rather than admit its non-compliance, the defendants instead “fixed” student files by altering documents in the files, or in some cases creating entirely fabricated documents. The defendants engaged in this manipulation so that ED would not terminate MCI’s eligibility for financial aid funds.
Attached are charts containing the charges against the defendants and the maximum penalties they face, as well as the defendants’ ages and residences. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of ICE HSI, ED-OIG, and DSS.
Assistant United States Attorneys Samson Enzer and Margaret Graham of the Office’s General Crimes Unit are in charge of the prosecution. Assistant United States Attorneys Andrew Adams and Christine Magdo of the Office’s Money Laundering and Asset Forfeiture Unit are handling the asset forfeiture portion of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Suresh Hiranandaney, et al., Complaint
Five Defendants Charged with Illegally Importing Male Enhancement ProductsRead the Press Release
ATLANTA - Five defendants have been indicted on federal charges of conspiring to illegally import into the United States male enhancement products that contained the active ingredient in Viagra.
“These defendants are charged with importing mislabeled products that contained the active ingredient in Viagra which can only be obtained in the United States after being prescribed by a licensed physician,” said United States Attorney Sally Quillian Yates. “According to the indictment, they then distributed the products to retail outlets throughout the United States. The laws the defendants are charged with violating are intended to protect consumers from unknowingly using products that might cause serious side effects. Along with our law enforcement partners we will vigorously prosecute individuals who violate the food and drug laws in the way these defendants allegedly did.”
“Today’s announcement demonstrates the continued commitment of the Food and Drug Administration’s Office of Criminal Investigations to aggressively pursue those who offer and sell unapproved and misbranded drugs,” said Special Agent in Charge David W. Bourne. “We will remain vigilant in our efforts to protect consumers from these fraudulent and potentially dangerous products.”
According to United States Attorney Yates, the charges, and other information presented in court: The defendants imported from China male enhancement products with names such as, “Maxman,” “Herb Viagra,” “Rock Hard Weekend,” “Stiff Nights,” “Happy Passengers,” “Hard Ten Days” “Zhen Gongfu,” to sell throughout the United States. These products contained the same drug that is the active ingredient in Viagra. Because the products contained a drug that is only available in the United States when prescribed by a licensed physician, if the products were properly labeled, the Food and Drug Administration and United States Customs and Border Protection would have stopped the products from entering the United States. In order to evade import restrictions on the products, the defendants directed their suppliers to mislabel the boxes containing the products to make it appear that the boxes contained items that can be legally imported into the United States, such as beauty products, pottery, coffee, and tea. By causing the shipments to be mislabeled, the defendants were able to import the products illegally.
The defendants received the illegally imported products at multiple addresses in the Atlanta area. They rented storage units at different locations where they repackaged the products for distribution to wholesale and retail locations in the Atlanta area and throughout the United States. In order to evade detection by law enforcement authorities, the defendants moved their illegal operations regularly, used aliases, false addresses, and fake business names, and misrepresented the nature of their business when renting storage units and mail boxes.
In the past three years the defendants wire transferred more than $2 million in United States currency to bank accounts in China to pay for the illegally imported merchandise.Ismail Ali Khan, 26, of Decatur, Ga.; Arbab Salim, 27, of Stone Mountain, Ga.; Hardik Kumar Desai, 24, of Stockbridge, Ga.; and Natenael Zeyid, 34, of Clarkston, Ga., were arraigned today before Janet F. King, United States Magistrate Judge, on federal charges of conspiring to illegally import into the United States male enhancement products that contained the active ingredient in Viagra. Ahmed Ali Khan, 37, of Alabaster, Ala., was arrested in Alabama and will make his initial appearance before a U.S. Magistrate Judge in Alabama. The defendants were indicted by a federal grand jury in Atlanta, Ga., on May 28, 2014.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Food and Drug Administration, Office of Investigations, with the assistance of Homeland Security Investigations.
Assistant United States Attorney William L. McKinnon, Jr. is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
First Call Ambulance Service, LLC. Settles False Claims Act AllegationsRead the Press Release
First Call Ambulance Service, LLC., will pay $500,000 to settle allegations that it violated the False Claims Act (“FCA”), announced David Rivera, United States Attorney for the Middle District of Tennessee. The settlement resolves allegations by the United States and Tennessee that First Call up coded billings for ambulance transports provided to patients covered by federal healthcare programs and TennCare, Tennessee’s joint state/federal Medicaid program.
Specifically, the United States and Tennessee alleged that First Call submitted false claims for payment covering advanced life support (“ALS”) services for its ambulance runs. For many transports billed as ALS, First Call’s provision of ALS services was medically unnecessary, or First Call did not actually provide ALS services. Instead, only basic life support (“BLS”) services were necessary, and in some cases were the only services provided. BLS services are billed to federal health insurance programs at a lower rate than ALS services.
“Enforcement of the False Claims Act remains a top priority of the Department of Justice and this office,” said U.S. Attorney Rivera. “The U.S. Attorney’s Office, working with our law enforcement partners, will continue to devote the resources necessary to vigorously protect taxpayers’ interests and aggressively pursue fraud, waste, and abuse.”
In addition to the monetary payment, First Call has entered into a corporate integrity agreement with the U.S. Department of Health and Human Services. This agreement will require First Call to take certain compliance measures to reduce the likelihood of future violations of the FCA and other health care regulations.
The federal and state investigations corroborated conduct originally alleged in a qui tam complaint filed pursuant to the FCA. The United States and Tennessee declined to intervene with regard to other allegations in the qui tam complaint. The relator who filed the qui tam will receive a share of the settlement proceeds.
This matter was investigated by the United States Postal Service- Office of Inspector General, the Tennessee Bureau of Investigation, the Tennessee Attorney General’s Office, and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis.Final Defendant in Sophisticated, Violent Fraudulent Document Ring Pleads Guilty to Racketeering and Money LaunderingRead the Press Release
RICHMOND, Va. – Freddy David Santos Campuzano, 32, a Mexican National who resided in Cincinnati, Ohio, pleaded guilty today to Conspiracy to Engage in Racketeering and Conspiracy to Launder Money. Santos Campuzano faces a maximum of 40 years’ imprisonment, a fine of $750,000, and three years of supervised release when he is sentenced on September 10, 2014, by United States District Court Judge James R. Spencer. Further, the defendant is illegally within the United States and faces deportation following the service of his prison sentences.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), made the announcement after the guilty plea was accepted by Magistrate Judge M. Hannah Lauck.
According to court papers, this defendant is connected to a Fraudulent Document Enterprise (FDE) previously prosecuted in the Eastern District of Virginia in United States v. Israel Cruz Millan, Case No. 3:10CR308. The FDE, which originally operated in the United States beginning prior to 2008 and continuing through November 18, 2010, had cells in Richmond, Norfolk, Virginia Beach, and Manassas, Virginia; Fayetteville and Little Rock, Arkansas; New Haven, Connecticut; Mishawaka, Indiana; Lexington and Louisville, Kentucky; Chelsea, Massachusetts; St. Louis, Missouri; Chapel Hill, Greensboro, Raleigh, and Wilmington, North Carolina; Cincinnati, Ohio; Providence, Rhode Island; and, Nashville, Tennessee. The criminal enterprise was dismantled within the United States on November 18, 2010. In the prior case and connected prosecutions, a total of 30 defendants were convicted. On February 16, 2012, United States District Judge James R. Spencer sentenced the overall leader, Israel Cruz Millan to 300 months’ imprisonment. On March 2, 2012, United States District Judge Henry E. Hudson sentenced Oliverez-Jiminez to two consecutive life terms in prison, after his conviction by a jury for racketeering, murder, kidnapping, conspiracy to commit money laundering, and conspiracy to produce and transfer false identification documents.
According to court filings, the FDE restarted its operations while the Israel Cruz Millan, et al. case was still pending. Beginning at some point prior to February 2012, Manuel Hidalgo Flores, also known as “Chino,” “Chimuelo” and “Julio,” began managing the organization’s operations in the United States, supervising operations in Richmond, Virginia; Springdale, Arkansas; Boston, Massachusetts; Raleigh, North Carolina; Cincinnati, Ohio; and Pawtucket, Rhode Island. As in the previous case, the FDE produced high-quality false identification cards for distribution to illegal aliens. In most cities where the organization operated, Hidalgo Flores placed a cell manager to supervise a number of “runners,” the lower level members of the organization who distributed business cards advertising the organization’s services and helped facilitate transactions with customers.
In his sworn Statement of Facts, Freddy David Santos Campuzano, also known as “Chaparro,” admitted that, he operated in the Cincinnati, Ohio cell under the supervision of Hidalgo Flores. Within that cell, Santos Campuzano, along with others, were responsible for distributing the fraudulent documents using information obtained from clients by “runners.” The runners would recruit illegal alien clients who wished to obtain false identification documents, including counterfeit Permanent Resident Alien Cards (also known as “Green Cards”), Social Security Cards, out-of-state identification cards, and various international documents. Upon identifying a specific client, a runner would relay identifying information and photographs from the client to the printer via cellular telephone or other method. The printer would, in turn, use a computer and printer to create fraudulent identification documents for the client, depending on the nature of the order received from the client. Once the documents were complete, the runner would usually provide the documents to the client in exchange for United States currency. A client would generally pay approximately $150 for a set of fraudulent identification documents (such as a Permanent Resident Alien Card and Social Security Card). Each cell maintained detailed sales records and divided the proceeds between the runner, the cell manager, and the upper level managers in Mexico. In addition, the FDE used Western Union and MoneyGram to funnel criminal proceeds to Mexico.
The evidence during the Oliverez-Jiminez trial detailed how members of the organization sought to drive competitors from their territory by posing as customers in search of fraudulent documents and then attacking the competitors when they arrived to make a sale. According to court filings, the FDE continued those tactics in 2013. The First Superseding Indictment charges four FDE members, including Manuel Hidalgo Flores, with targeting a competitor in the Richmond, Virginia area on October 6, 2013. That planned attack was thwarted, however, by law enforcement intervention.
Counting this guilty plea, 42 members of this organization charged in the Richmond, Virginia federal cases have been convicted. Santos Campuzano is the final defendant to plead guilty in the case.
The case was investigated by the Richmond and Norfolk offices of ICE’s Homeland Security Investigations (HSI), which falls under the Washington, D.C., office. ICE HSI received assistance from the Virginia State Police, Chesterfield County Police Department, and Henrico County Police Department. Assistant United States Attorney Michael Gill and Trial Attorney Maria Gonzalez Calvet, of the Criminal Division's Fraud Section, are prosecuting the case on behalf of the United States
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Federal Grand Jury in Del Rio Indicts Carrizo Springs Pair in Smuggling Scheme Involving Serious Bodily InjuryRead the Press Release
In Del Rio, a federal grand jury has indicted two Carrizo Springs, TX, residents for their roles in an undocumented immigrant smuggling scheme in which the victims suffered serious bodily injury announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala, San Antonio Division.
The seven–count indictment, returned yesterday, alleges that between May 1, 2014 and May 4, 2014, the defendants, 32–year-old Atanacio Daniel Castro and 22–year-old Eduardo Rocha, Jr., of Carrizo Springs, TX, knowingly conspired to transport and harbor undocumented aliens and while doing so, caused serious bodily injury to those individuals. The indictment further charges that the defendants threatened to kill, injure or further detain individuals whom they held hostage, in order to compel others to pay ransom money for their release.
According to court records, Castro allegedly struck the hands of two adult male hostages with a hammer and demanded additional payment while the victims were on the phone with family members discussing payment of smuggling fees. Court records also allege that Castro, on multiple occasions, sexually assaulted a smuggled female undocumented alien.
Upon conviction, the defendants face up to life in federal prison for conspiracy to commit hostage taking. Each remaining charge calls for up to 20 years in federal prison upon conviction. Both defendants remain in federal custody pending trial. No trial date has been scheduled.
This indictment resulted from an investigation conducted by HSI agents together with the Dimmit County Sheriff’s Office. Assistant United States Attorneys Matthew H. Watters and Patrick Burke are prosecuting this case on behalf of the Government.An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Essex County, N.J., Man Admits Armed Bank RobberyRead the Press Release
TRENTON, N.J. – An Essex County, N.J., man today admitted committing the armed robbery of a PNC Bank in Montclair, N.J., U.S. Attorney Paul J. Fishman announced.
Robert Mercedes, 24, of East Orange, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of bank robbery and one count of using a firearm during the commission of crime of violence.According to documents filed in this case and statements in court:
Mercedes admitted using a gun to rob a PNC Bank in Montclair on Dec. 27, 2013. He brandished a gun and demanded that bank employees fill a backpack with money. Mercedes told employees of the bank, “I want 100s and 50s, I want 100s and 50s. You have 13 seconds.” Mercedes was apprehended the same day by members of the East Orange Police Department, with the assistance of the Montclair Police Department and the FBI.
The count of bank robbery carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000. The count of brandishing a firearm during the bank robbery carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison. Sentencing is scheduled for Sept. 23, 2014
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, along with the East Orange and Montclair police departments and the Essex County Prosecutor’s Office, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s General Crimes Unit in Newark.
14-197
Defense Counsel: John McGovern Esq., Newark
Mercedes, Robert Information
East Boston Man Sentenced to Ten Years for Three Bank RobberiesRead the Press Release
BOSTON - An East Boston man was sentenced today for robbing three Citizens Bank locations.
Thomas Briand, 34, of East Boston, was sentenced by U.S. District Court Judge William G. Young to 10 years in prison, three years of supervised release, and ordered to pay $7,201 in restitution to the three banks he robbed. In February 2014, Briand pleaded guilty to a three-count indictment charging him with robbing three different Citizens Bank branch locations, located in Boston and Cambridge.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Evans; and Cambridge Police Commissioner Robert C. Haas, made the announcement today. The case was prosecuted by David G. Tobin and Maxim Grinberg of Ortiz’s Major Crimes Unit.
Dozens Indicted on Federal Drug ChargesRead the Press Release
PITTSBURGH- After a lengthy investigation into drug trafficking in Wilkinsburg, Pennsylvania, forty-four (44) people - 43 residents of Pennsylvania, and one resident of New Jersey - were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws. On May 21, 2014, a federal grand jury issued one superseding indictment and five indictments, all related to one another, United States Attorney David J. Hickton announced today.
“Heroin is a huge problem in Western Pennsylvania,” stated U.S. Attorney Hickton. “The prosecution of this gun-toting, drug trafficking conspiracy will disrupt a major heroin pipeline from Newark to our area. These conspirators brazenly sold their illegal drugs openly on the streets of our communities. Today they are out of business.”
According to Patrick Fallon, Asst. Special Agent in Charge of the Federal Bureau of Investigation – Pittsburgh Office, “Today’s arrests are the result of a long-term, multi-agency investigation conducted by the Greater Pittsburgh Safe Streets Gang Task Force. As a result of the hard work and dedication exhibited by members of the Task Force, today we made dozens of arrests that will have a positive impact on the safety and quality of life in our local communities. We recognize, however, law enforcement is but one part of the multi-pronged effort to address the growing heroin epidemic impacting our community. We are keenly aware that in order to succeed in our efforts, the law enforcement community must continue to work together with the support and trust of the citizens we serve.”
THE INDICTMENTS
The first indictment (superseding), containing six counts, named:
- Keith Eutsey, 38, formerly of Nazareth, Pa., currently incarcerated;
- Che Hawkins, 35, formerly of Duquesne, Pa., currently incarcerated;
- Isaiah Cross, 24, formerly of Newark, NJ, currently incarcerated;
- Shaneeca Johnson, 31, of Duquesne, Pa.;
- Rahde Williamson, 18, of Duquesne, Pa.;
- Maurice Demery, 38, of West Mifflin, Pa.;
- Shelby Jeffries, 31, of Munhall, Pa.; and
- Rashawn Coward, 34, of McKees Rocks, Pa.
According to the indictment, from in and around January, 2014, and continuing thereafter to in and around April 3, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Keith Eutsey and Isaiah Cross are each charged with one count of possession with intent to distribute and distribution of 100 grams or more of heroin; Che Hawkins is charged with possession with intent to distribute 100 grams or more of heroin; and Isaiah Cross and Rahde Williamson are each charged with one count of possession with intent to distribute less than 100 grams of heroin.
The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The second indictment, containing nine counts, named:
- Terrell Evans, 21, of Monroeville, Pa.;
- Jamont Neal, 23, of McKeesport, Pa.;
- Jordan Smith, 24, of Export, Pa.;
- Brian Shunk, 28, of Claridge, Pa.;
- Edward Lutz, 23, of Indiana, Pa.;
- Courtney Sullivan, 31, of Indiana, Pa.;
- Thomas Marks, Jr., 28, of Greensburg, Pa.;
- Michael Lyons, 18, of Turtle Creek, Pa.; and
- Edwin Williams, 24, of Verona, Pa.
According to the indictment, from in and around October, 2013, and continuing thereafter to in and around May, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Terell Evans is charged with one count of employing or using a person under 18 years of age in drug operations and three counts of distribution and possession with intent to distribute 100 grams of heroin; Brian Shunk, Edward Lutz, Courtney Sullivan, and Thomas Marks, Jr., are each charged with one count of possession with intent to distribute less than 100 grams of heroin.
The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The third indictment, containing four counts, named:
- Anthony Berry, Jr., 21, formerly of Duquesne, Pa., currently incarcerated;
- Shawn Whitley, Jr., 23, of Wilmerding, Pa.;
- Donald Freeman, 24, of Pittsburgh, Pa.;
- Darrell Heaps, 23, of Duquesne, Pa.; and
- Melvin Calloway, 21, of Munhall, Pa.
According to the indictment, from in and around December, 2013, and continuing thereafter to in and around March, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Anthony Berry, Jr., is charged with one count of possession with intent to distribute less than 100 grams of heroin and one count of possession of a firearm by a convicted felon; and Melvin Calloway is charged with one count of possession with intent to distribute less than 100 grams of heroin.
The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The fourth indictment, containing five counts, named:
- Homer McClung, 27, of Wilkins Township, Pa.;
- Brandon McWright, 26, of Wilkins Township, Pa.;
- Lewis Van Burt III, 29, of Pittsburgh, Pa.;
- Robert Dorsey, 20, of Pittsburgh, Pa.;
- Samuel Brooks, 27, of Pittsburgh, Pa.; and
- Robert Smiley, 23, of Pittsburgh, Pa.
According to the indictment, from in and around June, 2013, and continuing thereafter to in and around May, 2014, the defendants conspired with one another to possess with intent to distribute and distribute 100 grams or more of heroin; Robert Smiley is charged with one count of possession with intent to distribute less than 100 grams of heroin, and Lewis Van Burt III is charged with one count of possession with intent to distribute 100 grams of heroin, one count of possession of a firearm and ammunition by a convicted felon, and one count of carrying a firearm during a drug trafficking crime and possession in furtherance thereof.
The law provides for a mandatory minimum of five years and up to a maximum total sentence of forty years in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The fifth indictment, containing seven counts, named:
- Paris Wilson, 22, of Monroeville, Pa.;
- Quamar Linton, 28, of Pittsburgh, Pa.;
- Miranda Rosenberger, 28, of Kittanning, Pa.;
- Michael Cox, 38, of Kittanning, Pa.;
- Shawn Ellis, Jr., 24, of Pittsburgh, Pa.;
- William Smith, 32, of Ford City, Pa.;
- Breya Bowles, 22, of Turtle Creek, Pa.;
- Melvin Moore, 24, of Pittsburgh, Pa.;
- Charles Blystone, 43, of Rural Valley, Pa.;
- Salah Tinsley-Ewell, 21, of Pittsburgh, Pa.;
- Travis Anthony, 27, of Kittanning, Pa.; and
- Benton Nixon, 26, of Pittsburgh, Pa.
According to the indictment, from in and around October, 2013, and continuing thereafter to in and around May, 2014, Wilson, Linton, Rosenberger, Cox, Ellis, Jr., Smith, Bowles, Moore, Blystone, and Tinsley-Ewell conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Paris Wilson is charged with one count of employing or using a person under 18 years of age in drug operations; Travis Anthony is charged with one count of possession of a firearm by a drug user or addict; Melvin Moore, Charles Blystone, and Benton Nixon are each charged with one count of possession with intent to distribute less than 100 grams of heroin; and William Smith is charged with one count of carrying a firearm during a drug trafficking crime and possession in furtherance thereof.
The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 or both for Wilson, Linton, Rosenberger, Cox, Ellis, Jr., Smith, Bowles, Moore, Blystone, and Tinsley-Ewell; the law provides for a term of up to ten years in prison and a fine of $250,000 for Anthony; and the law provides for a term of up to twenty years in prison and $1,000,000 or both for Nixon. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The sixth indictment, containing four counts, names:
- Dominique Harvey, 22, of Plum, Pa.;
- Robert Hyatt, 28, of Pittsburgh, Pa.;
- Kenneth Mitchell, 18, of Penn Hills, Pa.; and
- Darrell Barham, 30, of Wilkinsburg, Pa.
According to the indictment, from in and around June, 2013, and continuing thereafter to in and around May, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Dominique Harvey is charged with one count of employing or using a person under 18 years of age in drug operations; Robert Hyatt is charged with one count of possession with intent to distribute less than 100 grams of heroin; and one count of possession of a firearm and ammunition by a convicted felon.
The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Sex Offender Pleads Guilty to Federal Child Pornography Charges Defendant Also Agrees to Plead to State Aggravated Child Rape Charges in Middlesex CountyRead the Press Release
BOSTON – George Shipps, 32, of Chelsea, pleaded guilty today to federal charges of transportation and possession of child pornography. Shipps, a Level II registered sexual offender based upon a 2006 state conviction for child pornography and enticement offenses, was on state court probation when he committed the federal offenses.
In connection with the plea, Shipps admitted that he was sending and receiving child pornography from his residence in Chelsea at the time that his conduct was discovered as part of an international federal investigation. Among other things, Shipps admitted that he took sexually explicit photographs of three children, ages six, four, and two, on separate occasions.
Under the terms of the plea agreement, Shipps will be sentenced to a period of incarceration between 19 and 23 years, plus restitution and forfeiture. Shipps will also be required to plead guilty to aggravated child rape in Middlesex Superior Court and will not contest his pending state court probation violation.
United States Attorney Carmen M. Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division and Middlesex District Attorney Marian T. Ryan made the announcement today. The federal case is being prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit and the Middlesex case is being prosecuted by Assistant District Attorney Katharine Folger.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Columbus Doctor Pleads Guilty to Trafficking OxycodoneRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Terry Dragash, DO, 59, of Pataskala, Ohio pleaded guilty in U.S. District Court to conspiring to distribute oxycodone.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and James V. Allen, Acting Special Agent in Charge, Drug Enforcement Administration (DEA) announced the plea entered today before U.S. District Judge Gregory L. Frost.
According to testimony presented during the plea hearing, Dragash was employed as a physician at Columbus Southern Medical Clinic located at 2912 South High Street, Columbus, Ohio from 2001 through 2011. During his employment at Columbus Southern, the conditions inside the clinic were less than ideal for the treatment of patients. Dragash, as well as other physicians working at the clinic were required to see between 50 and 100 patients a day, as well as supervise physician assistants, who were also seeing 50 or more patients a day.
Consequently, Dragash was spending an inadequate amount of time with patients to effectively diagnose and treat them. Furthermore, many of the patients being seen at Columbus Southern were drug seekers travelling long distances for the sole purpose of obtaining pain medications to support their drug addictions. Based on the preceding factors and others, Dragash, while employed at Columbus Southern, frequently prescribed controlled substances, including oxycodone and hydrocodone, to patients who were addicted to pain medications. Between January 1, 2003 and January 31, 2011, Dragash knowingly prescribed controlled substances, including 5500 milligrams of oxycodone, to Columbus Southern patients when there was no legitimate medical purpose and when it was outside the usual course of a professional practice.
Dragash pleaded guilty to one count of conspiracy to distribute oxycodone. Federal law provides for penalties of up to 20 years in prison, a maximum fine of $1 million and at least three years of supervised release. Judge Frost will schedule a sentencing hearing following a pre-sentence investigation by the court.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the IRS and the DEA Tactical Diversion Squad in addition to the work by the Columbus Division of Police, Ohio Bureau of Criminal Investigation, Licking County Sheriff’s Office, Franklin County Sheriff’s Office, Ohio State Board of Pharmacy, State Medical Board of Ohio, Ohio Bureau of Workers Compensation, and Ohio Medicaid Fraud Control Unit in Ohio Attorney General Mike DeWine’s Office. Assistant U.S. Attorney Ken Affeldt is prosecuting the case on behalf of the United States.
Columbia Man Pleads Guilty to Firearms and Ammunition ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that RICHARD ARMBRE WILLIAMS, age 42, of Columbia, South Carolina has entered a guilty plea in federal court to being a felon in possession of firearms and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). Senior United States District Judge Margaret B. Seymour accepted the plea and will impose a sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that at 7:18 pm on July 30, 2013, officers with the Columbia Police Department responded to the Fast Point Convenience Store on Fairfield Road, in reference to an alarm call. Upon arriving at the scene, officers observed WILLIAMS on the side of the building with his hand tucked into his waistline underneath his shirt. WILLIAMS, after making eye contact with officers, abruptly turned and ran. Despite officers yelling for him to stop, WILLIAMS continued running and dropped two firearms to the ground before ultimately being stopped by officers. Officers recovered the two firearms dropped by WILLIAMS, a Smith & Wesson .32 caliber revolver and a Glock 9mm pistol with rounds of 9mm ammunition, and also recovered a small amount of marijuana in two plastic baggies in WILLIAMS’ right pocket, along with two box cutter knives.
The investigation revealed that WILLIAMS is prohibited under federal law from possessing firearms and/or ammunition based upon his prior state convictions. WILLIAMS has previously been convicted in state court for assault and battery with intent to kill (stemming from shooting in November 1990), assault & battery, voluntary manslaughter (stemming from a shooting in June 1990), possession with intent to distribute cocaine, possession of marijuana, and driving under suspension.
Mr. Nettles stated that WILLIAMS, who has three prior violent felony convictions, appears to be an armed career criminal subject to enhanced penalties under federal law. If the district court determines that WILLIAMS is an armed career criminal, he faces a statutory mandatory minimum of fifteen (15) years imprisonment with a maximum of life, a fine of $250,000 and a term of supervised release of five (5) years to follow the term of imprisonment.
The case was investigated by the Columbia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.Columbia Man Pleads Guilty to Firearms ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that MARQUEL DAVON FOSTER, age 23, of Columbia, South Carolina has entered a guilty plea to making a false statement in the acquisition of firearms from a federal firearms licensee, in violation of Title 18, United States Code, Sections 922(a)(6) and 924(a)(2). Senior United States District Judge Margaret B. Seymour accepted the plea and will impose a sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that in January 2013, during the execution of a drug search warrant in Bridgeton, NJ, officers recovered a Masterpiece Arms .45 caliber pistol with a high capacity magazine. A trace of the firearm revealed that it was purchased by FOSTER in Columbia, SC in on February 6, 2012. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) determined that FOSTER had purchased two firearms on February 6, 2012, two firearms on February 8, 2012, and 2 additional firearms on March 7, 2012. When agents approached FOSTER, he claimed that the Masterpiece Arms .45 caliber pistol with a high capacity magazine had been stolen a year earlier, but that he had the other five (5) firearms in his possession. When agents asked to see those five (5) firearms, FOSTER admitted that he did not have them and that he had purchased them for an individual from New Jersey that he met at the gun store in exchange for money. FOSTER stated that the individual, who he knew only by a nickname, gave him money, and asked FOSTER to purchase the firearms for him since he was unable to legally purchase them because he was a felon. FOSTER admitted to making a false statement on the forms to purchase the firearms and to purchasing a total of six (6) firearms for this individual in approximately a one month period. The six (6) firearms were a Hi-Point .380 caliber pistol, a Masterpiece Arms .45 caliber pistol, a European American Arms, Corp. .357 caliber revolver, a Ruger 9mm pistol, a Taurus .40 caliber pistol, and a Masterpiece Arms 9mm pistol. Only one of those firearms has been recovered as of this date.
Mr. Nettles stated that FOSTER faces a maximum of ten (10) years imprisonment, a fine of $250,000, and a term of supervised release of three (3) years to follow the term of imprisonment.
The case was investigated by ATF and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.Co-Founder of New Jersey Hedge Fund Indicted in Long-Running Carter’s Insider Trading ConspiracyRead the Press Release
ATLANTA - Steven E. Slawson has been indicted by a federal grand jury for participating in a long-running insider trading conspiracy involving Carter’s, Inc. stock.
“The charges against Slawson reflect that for over five years, Slawson obtained a sneak preview of Carter’s not-yet-released quarterly and annual financial results and other confidential internal information,” said United States Attorney Sally Quillian Yates. “He is charged with buying and selling tens of thousands of shares of Carter’s stock ahead of the news to make illegal profits in the stock market. Insider trading simply isn’t worth it. Sooner or later, you will be brought to justice.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Insider trading laws are in place to prevent those on the inside from having unfair advantage over the public and to further the desire to have and maintain a transparent stock market. The FBI will continue to work with its partners at the U.S. Securities and Exchange Commission in the enforcement of these federal laws.”
According to United States Attorney Yates, the charges, and other information presented in court: Carter’s, Inc. is a major children’s clothing company headquartered in Atlanta, Georgia. Carter’s is a public company registered with the U.S. Securities & Exchange Commission (SEC), and its common stock is listed on the New York Stock Exchange.
Slawson, 67, of Lebanon, N.J., was the co-founder of Titan Capital Management LLC., a hedge fund manager located in Parsippany, N.J. At Titan, Slawson co-managed a multimillion dollar portfolio of the securities of publicly-traded companies. Beginning in or about early 2005, and continuing through in or about July 2010, Slawson is alleged to have obtained inside information about Carter’s quarterly and annual financial results and other events in advance of the public announcement of the information. Slawson is alleged to have obtained the inside information from an individual identified in the indictment as “Cooperator Number 1,” who was working as a paid outside consultant to Titan. The indictment alleges that, at the time, Cooperator Number 1 was a retired equity research analyst formerly associated with the New York, New York office of a prominent global financial institution.
The indictment alleges that Slawson in turn caused Titan to execute transactions in Carter’s securities between early 2005 and July 2010 based on the inside information received from Cooperator Number 1, earning illegal profits and illegally avoiding losses for Titan. It further alleges that, in 2009 and 2010, Slawson also bought and sold Carter’s securities based on inside information in his own personal accounts, in addition to the hedge fund’s account.
According to the indictment, Cooperator Number 1 received the inside information from Eric M. Martin, who was employed as Carter’s head of Investor Relations between 2003 and March 2009. After Martin separated from Carter’s in March 2009, Martin is alleged to have obtained the inside information from Richard T. Posey, who was then employed as Carter’s Vice President of Operations. Martin in turn continued to provide the information to Cooperator Number 1 through July 2010. The indictment alleges further that, beginning in or about March 2010, Martin began providing the inside information to Slawson directly, in addition to providing it through Cooperator Number 1.
The May 20, 2014, grand jury indictment charges Slawson with one count of conspiracy to commit securities fraud and wire fraud, 25 counts of securities fraud, and 9 counts of wire fraud. Based on current estimates, the government alleges that Slawson is responsible for illegal insider trading gains and losses avoided resulting from the conspiracy, his own trading, and relevant conduct in the amount of approximately $1.7 million. Today Slawson had his initial appearance on the indictment before Chief U.S. Magistrate Judge Janet F. King. The case has been assigned to U.S. District Judge Richard W. Story for trial. A trial date has not yet been set.
Slawson is the fourth individual to be charged in a criminal investigation into insider trading in Carter’s stock, and the sixth person overall to be criminally charged in connection with the accounting fraud and insider trading investigations arising out of Carter’s October 27, 2009 earnings delay and multi-year financial restatement.
Eric M. Martin, 44, of Roswell, Ga., was indicted on November 7, 2012 for conspiracy, securities fraud, and wire fraud in connection with his participation in an insider trading conspiracy and for his own insider trading in Carter’s stock between 2005 and 2009, while Martin was still employed as Carter’s head of investor relations. The conspiracy charge alleged that Martin repeatedly provided inside information about Carter’s to Cooperator Number 1 ahead of the company’s earnings releases and other events between 2005 and 2009. This included tipping Cooperator Number 1 about Carter’s May 2005 acquisition of competitor Oshkosh B’Gosh before the news became public. Martin pleaded guilty to the conspiracy charge on December 8, 2012.
Richard T. Posey, 53, of Duluth, Ga., was charged by Criminal Information and pleaded guilty to conspiracy to commit securities fraud on June 19, 2013. The conspiracy charge against Posey related to his disclosure of insider information to Martin ahead of quarterly and annual earnings releases and other events between early 2009 and July 2010, after Martin’s separation from Carter’s.A third individual, Mark Megalli, 42, of New York, N.Y., was charged by Criminal Information and pleaded guilty to conspiracy to commit securities fraud on November 15, 2013. The conspiracy charge against Megalli related to trades that Megalli executed in Carter’s securities between September 2009 and July 2010 on behalf of multibillion dollar New York hedge fund Level Global Investors LP, based on inside information that he received from Martin. At that time, Megalli was employed as the portfolio manager for Level Global’s consumer sector. The illegal trading included Level Global’s liquidation of an approximately $9 million position in Carter’s stock in the days leading up to the October 27, 2009 earnings delay announcement.
Sentencing for Martin, Megalli, and Posey is scheduled for July 8, 2014, before U.S. District Judge Richard W. Story.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys David M. Chaiken and Stephen H. McClain are prosecuting the case.
The Atlanta Regional Office of the SEC has conducted a separate investigation into potential civil violations of the U.S. securities laws relating to insider trading in Carter’s stock. In connection with its investigation, the SEC has filed civil enforcement actions against multiple individuals.
Carter’s, Inc. is cooperating in the investigation.
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 is 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.
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/.
Chicago Investment Fund Manager Facing Criminal Charge for Allegedly Defrauding 41 Investors of $11.3 MillionRead the Press Release
CHICAGO — A Chicago investment fund manager fraudulently obtained more than $11.3 million from 41 investors and misused the funds for his own benefit, as well as to repay certain investors in a Ponzi-type scheme, according to a criminal fraud case announced today by federal law enforcement officials. The defendant, NEAL GOYAL, was the founder and sole managing member of Blue Horizon Asset Management, LLC, and Caldera Advisors, LLC, both of which were unregistered investment advisors.
Goyal, 33, of Chicago, was charged with one count of wire fraud in a criminal information filed yesterday in U.S. District Court, where he will be ordered to appear for arraignment on a date yet to be determined.
The U.S. Securities and Exchange Commission filed a parallel civil fraud lawsuit yesterday and obtained a court order freezing the assets of Goyal and his funds. The SEC suit alleges that Goyal stole his investors’ money to fund his own lavish lifestyle, to pay business expenses, and to support a variety of personal business ventures including a bar and two children’s clothing boutiques that his wife operates in Chicago. United States Securities and Exchange Commission v. Neal V. Goyal, et al.14 CV 3900 (NDIL).
According to the criminal case, between June 2006 and May 2014, Goyal obtained more than $11.3 million from investors through offering and selling limited partnerships in three Blue Horizon funds and a Caldera Equity Fund by making false representations about the intended use of the funds, the investment returns generated, and the source of the investment returns and principal paid to investors. In fact, Goyal allegedly misappropriated the investors’ funds for his own benefit and concealed the fraud scheme by creating and distributing false account statements.
Beginning in early 2006, Goyal represented that funds invested in the Blue Horizon funds would be used for long and short trading in equities, options, and other securities. By June 2006, Goyal began sending false account statements to investors that inflated the financial results from trading purportedly being done by those funds, the charging document alleges. By the first half of 2008, Goyal allegedly knew that he intended to misuse the funds for himself and to make Ponzi-type payments to certain investors. By January 2009, Goyal had stopped trading for two Blue Horizon funds and had not traded at all for the third Blue Horizon fund. In February 2009, Goyal allegedly began engaging in a similar fraud scheme with investments in the Caldera Equity Fund.
Wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The charge was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. They commended the assistance of the SEC. The government is being represented by Assistant U.S. Attorney Kenneth Yeadon.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
California Man Sentenced in Federal Court for Drug ConspiracyRead the Press Release
A California man was sentenced today to 13 months in federal prison.
Chad Straub, 40, from Salinas, California, received the prison term after a February 7, 2014, guilty plea to one count of conspiring to distribute marijuana.
At the guilty plea, Straub admitted he conspired with other individuals to distribute marijuana.
Straub was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Straub was sentenced to 13 months’ and one day imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Straub is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Justin Lightfoot and Matthew J. Cole and investigated by the federal Drug Enforcement Administration.
Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00020.
Buffalo Police Officer Involved in Videotaped Beating Pleads Guilty to Civil Right ChargesRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that John Cirulli, of Buffalo, N.Y., pleaded guilty to two counts of deprivation of rights under color of law, before Chief U.S. District Judge William M. Skretny. Each charge carries a maximum sentence of one year in prison and a fine of $100,000.
“We must all recognize that police officers are confronted with difficult, and occasionally perilous situations every day on the job,” said U.S. Attorney Hochul. “Such instances include attempting to arrest one who is suspected of criminal activity. That being said, once a suspect no longer poses a danger and is in custody, an officer may not use excessive or unreasonable force –to include striking and kicking a prone, handcuffed suspect. In this case, the defendant not only engaged in such improper conduct, he attempted to seize potential evidence.”
Assistant U.S. Attorneys Trini E. Ross and Jack Rogowski, who are handling the case, stated that on April 19, 2014, the defendant was employed as a police officer with the Buffalo Police Department. Between 9:30 and 10:30 p.m. on April 19, 2014, the defendant and his partner pulled their unmarked police car up to a vehicle being driven by the victim and told him that he was speeding. The victim got out of his car, fled, and a foot chased ensued.
After catching up to the victim, the defendant and another officer took the victim to the ground. At one point while the victim was on the ground, Cirulli placed his knee on the victim’s upper back area.
Once the victim was handcuffed by officers and under control, the defendant struck the suspect in the head with his hand, struck the suspect in his body with his boot, and struck the suspect again in the head area with his hand. The suspect was then placed in the back seat of a Buffalo Police vehicle, where the defendant struck the suspect yet again in the face.
A person in the neighborhood happened to record on his cellular telephone some of the contact between the suspect and the police, including the portion of the contact where the defendant struck the victim while he was already secured and in handcuffs. After the defendant was told about the recording by another officer, Cirulli approached the witness and took what he thought was the witness’s cellular telephone. In fact, the telephone the witness gave to the defendant actually belonged to a friend. After determining that the cellular telephone did not have any recording of the assault incident on it, the defendant returned the telephone to the witness.
Sentencing is scheduled for September 24, 2014 at 2:00 p.m. before Judge Skretny.
The plea is the culmination of an investigation on the part of Special Agents of Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Baltimore Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Prostituted a 14 Year Old Female
Baltimore, Maryland - Kenneth Ronald Robinson, age 52, of Baltimore pleaded guilty today to sex trafficking involving a 14 year old girl. Co-defendants Cheralyn Crawford, a/k/a “Rachel,” age 25, of Baltimore, Jeffrey Clark, age 43, of Nottingham, Maryland; and Craig Judy, age 29, of Baltimore, pleaded guilty on May 22, May 21 and May 19, 2014, respectively to using the Internet to promote a minor to engage in prostitution.
The 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; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
According to the guilty pleas, on the evening of Monday June 17, 2013, members of the Maryland Child Exploitation Task Force recovered a 14 year old female from a motel on Joppa Road in Baltimore. The victim was located after law enforcement viewed a picture of her on a known Internet web site that advertises for prostitution, and called the number on the advertisement. Undercover officers made a “date” for prostitution with victim, who led them to her location.
Following her recovery and during subsequent interviews of victim, it was learned that, at Robinson’s direction, the victim had been staying with Crawford and Judy and had been performing commercial sex acts from that hotel for approximately four days. At Robinson’s request, Crawford took photographs of the minor victim in sexually explicit poses and, using Clark’s cellular phone, she and Judy posted those photos in advertisements on an internet website to advertise the victim’s prostitution services. Judy admitted that he reloaded pre-paid Green Dot cards used to pay for advertisements for prostitution on the Internet website with the commercial sex earnings of the minor victim and co-defendant Crawford, who was also a prostitute. A subsequent search of Clark’s cellular phone revealed that it contained photos of both the minor victim and Crawford used on the Internet website’s commercial sex advertisements. At Robinson’s direction, Clark transported the minor victim to motels, stores and restaurants in the Towson, Maryland, area. One of the motel rooms used by the victim, Crawford, and Judy was registered to Clark. Phone records show that Robinson’s cellular phone was in contact with the victim’s phone 45 times between June 12 and June 19, 2013; and with Clark’s phone 18 times between June 15 and June 19, 2013.
Robinson faces a mandatory minimum of 10 years in prison and up to life in prison for sex trafficking. U.S. District Judge Richard D. Bennett has scheduled sentencing for Robinson on September 11, 2014 at 3:30 p.m.
Crawford, Clark, and Judy each face a maximum sentence of five years in prison. Judge Bennett scheduled sentencing for Crawford and Clark on August 14, 2014 at 10:00 a.m. and 3:00 p.m., respectively; and for Judy on August 21, 2014, at 3:00 p.m. Robinson, Clark and Judy remain detained. Crawford is released under the supervision of U.S. Pretrial Services.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao, P. Michael Cunningham, and Rachel M. Yasser, who are prosecuting the case.
Baltimore City Employee and Perry Hall Man Indicted for Conspiracy to Defraud the City of BaltimoreRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Denita Hill, age 25, of Baltimore, and Robert Johnson, age 32, of Perry Hall, Maryland, on charges of conspiracy, wire fraud, and aggravated identity theft, related to a scheme to defraud the City of Baltimore through the reissuance of fraudulent checks for pay and benefits. The indictment was returned on May 7, 2014, and unsealed late yesterday upon the arrest of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to the indictment, Denita Hill was employed as an accountant in the Payroll Accounting Department for the City of Baltimore. Baltimore City employees who left their employment were entitled to a lump sum check of any pay and benefits for which they qualified. Hill was responsible for documenting lost payments and having checks reissued to individuals who had not received their payments. Robert Johnson was employed in the Consumer Relations Service of the U.S. Department of Veteran’s Affairs.
The five-count indictment alleges that from July 11, through August 2, 2013, Hill and Johnson conspired to defraud the City of Baltimore by using financial and identity information of former employees to request fraudulent employee benefit payout checks which were then deposited into Johnson’s personal account and the funds subsequently withdrawn.
According to the indictment, Hill identified individuals who had received and cashed large lump sum payments and then requested that such checks be reissued, as if they had not been received. These duplicate checks would be printed in a location accessible to Hill, who then delivered the checks to Johnson. The duplicate checks bore a forged endorsement, “Pay to the Order of Robert Johnson,” purportedly signed by the recipient. Johnson endorsed and cashed the checks, and deposited the proceeds into a bank account he controlled. Johnson subsequently withdrew the fraudulently deposited funds.
To conceal the scheme, Hill allegedly told officials from Johnson’s bank, and agents from the Baltimore Office of Inspector General, that she had spoken with the check recipients and that the endorsements were genuine. In fact, the indictment alleges that Hill had not contacted any of the recipients and knew the checks were fraudulent. In addition, when Baltimore City discovered the scheme and recouped the funds, leaving a large deficit in Johnson’s account balance, Hill withdrew cash from her own account to cover the negative balance in an effort to prevent further investigations into the scheme.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each of two counts of wire fraud; and two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants had an initial appearance and arraignment in U.S. District Court in Baltimore on May 28, 2014, and were released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Baltimore Office of Inspector General, Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine and Special Assistant U.S. Attorney Josh Felsen, a cross-designated Baltimore City Assistant State’s Attorney, who are prosecuting the case.
Austin Man Arrested and Charged in Alleged Laser Strike IncidentRead the Press Release
In Austin today, FBI agents arrested 25–year-old Gabriel Soza Ruedas, Jr., for allegedly pointing a laser at an aircraft flying overhead announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In February 2012, President Barrack Obama signed the “FAA Modernization and Reform Act of 2012” and added a new provision that makes it a federal crime to aim a laser pointer at an aircraft. Yesterday, federal authorities filed a criminal complaint charging Ruedas with violating that provision (Title 18 United States Code Section 39A—Aiming a Laser Pointer at an Aircraft). The complaint alleges that on February 15, 2014, Ruedas knowingly aimed the beam of a laser pointer multiple times at an Austin Police Department helicopter that was on approach to land at Austin Bergstrom International Airport.
“Laser strikes can pose serious risks to flight crews, passengers, and even individuals on the ground. They are a serious public safety hazard and will be treated as such by law enforcement officials,” stated United States Attorney Robert Pitman.
Upon conviction, the defendant faces up to five years in federal prison and a maximum $250,000 fine.
“Shining a laser at aircraft can temporarily blind a pilot which could result in the loss of aircraft control and human life. This case should serve as a warning to others who engage in this dangerous criminal activity. The FBI will continue to investigate and pursue prosecution of offenders who threaten aviation safety,” stated FBI Special Agent in Charge Christopher Combs.
This indictment resulted from an investigation conducted by agents with the Federal Bureau of Investigation together with the Austin Police Department and the Texas Attorney General’s Office. Assistant United States Attorney Gregg Sofer is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Reported incidents of laser strikes are on the rise. Since the FBI and the Federal Aviation Administration (FAA) began tracking laser strikes in 2005, statistics reflect a more than 1,100% increase in the deliberate targeting of aircraft by people with handheld lasers. In 2013, there were a total of 3,960 laser strikes reported – an average of almost 11 incidents per day.
Earlier this year, the FBI announced the inception of the Laser Threat Awareness Campaign, a nationwide effort led by the FBI in collaboration with the Air Line Pilots Association, Int’l (ALPA) and the FAA to raise awareness of aircraft laser illumination threats. If you have information about a lasing incident, contact the San Antonio Division of the FBI at 210-225-6741. If you see someone pointing a laser at an aircraft, call the nearest local law enforcement agency immediately by dialing 911. Tips can also be submitted online at https://tips.fbi.gov.
Anchorage Couple Sentenced for Christmas Mail TheftsRead the Press Release
Anchorage, Alaska – United States Attorney Karen Loeffler announced that James Joseph Baehm, Jr., 47, and Melody Baehm, 41, of Anchorage, were sentenced today for their involvement in stealing mail just before Christmas 2013. The Baehms were arrested in the early morning hours of December 22, 2013, in the Upper Hillside area of South Anchorage, where they had been stealing mail from residential mailboxes. Further investigation revealed that they had also stolen mail a week earlier, and had cashed stolen checks amounting to approximately $2000. The United States Postal Inspection Service identified between 80 and 100 victims whose mail was taken by the Baehms, and either recovered from their vehicle or found dumped in trash bins.
U.S. District Court Judge Timothy M. Burgess sentenced each defendant to a five-year term of probationary supervision. Each defendant must spend six months in community confinement, either in a halfway house or in a residential drug treatment facility. The court found that each defendant has a serious heroin addiction that must be addressed if they are to successfully re-enter the community, and ordered them each to submit to an evaluation to determine the extent of their substance abuse problems. Judge Burgess also imposed the requirement that each defendant devote at least 40 hours per week to employment, seeking employment, or job training. He also ordered them to each perform 400 hours of community service and ordered them to pay $1850 in restitution to Alaska USA Federal Credit Union to pay back the money they stole by forging the stolen checks.
The defendants have been in federal custody since their arrest on December 22, 2013, having served five months in jail. Each faces several pending felony and misdemeanor state theft charges, as well as probation violations on prior state property crimes.
Ms. Loeffler thanks the United States Postal Inspection Service and the Anchorage Police Department for their work in solving this case.
Airline Employees Charged with Cash Smuggling and Evading Airport Security Checkpoints in an Undercover Operation at Logan International AirportRead the Press Release
BOSTON – Five commercial airline employees were arrested today and charged after an undercover operation revealed that they used their airport security clearances to secretly smuggle thousands of dollars in cash, past security checkpoints.
According to the complaint affidavit, they transported cash, which was represented to be drug proceeds, past Transportation Security Administration (TSA) officials and security check points and, in some instances, aboard commercial airline flights at Logan International Airport.
It is alleged that nine money laundering transactions were completed, which involved approximately $417,000 in cash the defendants believed to be drug proceeds.
Rupert Crossley, 25, of Lynn, Mass.; Alvin Leacock, 27, of Hollywood, Fla.; Eric Vick, 24, of Mattapan, Mass.; Anthony Trotman, 24, of Boston, Mass., all JetBlue Airways ground operations crew members and Dino Dunkley, 31, of Boston, Mass., a Delta Air Lines customer service ramp agent, were each charged in a criminal complaint with money laundering and of conspiracy to defraud the United States, namely, the TSA, by entering Boston’s Logan International Airport with the intent to evade security procedures, and with the intent to commit a felony, in a secure airport area.
According to the affidavit, each of the defendants used his individual airport security clearance to circumvent TSA security checkpoints and smuggle large amounts of cash from non-secure airport areas, such as curbside passenger drop-off/pick-up or public restrooms near baggage claim, to secure areas of the airport, such as passenger departure gates. In return, each defendant received a cash payment from a cooperating witness involved in the investigation. Defendants Vick and Dunkley each transported the smuggled cash aboard commercial airline flights from Boston to Florida.
U.S. Attorney Ortiz said, “Security at our nation’s airports is paramount and the conduct alleged today is alarming. Thanks to the hard work and commitment of the federal and state investigators and airline security personnel, a potentially dangerous breach in security was identified.”
“Today marks the culmination of a very detailed investigation,” said Bruce Foucart, Special Agent in Charge of HSI. “I want to thank all of the security officials within Massport, TSA, Mass. State Police, and the affected airlines. Their due diligence throughout this investigation, combined with the tireless work of my special agents made today’s arrests possible.”
If convicted, each defendant faces up to 20 years in prison.
U.S. Attorney Ortiz and SAC Foucart made the announcement today. The case was investigated with the assistance of Bob Allison, Federal Security Director, Transportation Security Administration; Special Agent in Charge Dwain Troutt of the Federal Air Marshal Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police. The U.S. Attorney’s Office would also like to acknowledge the assistance and cooperation of Jet Blue Corporate Security and Delta Airlines. The case is being prosecuted by Assistant U.S. Attorneys Carlos A. Lopez of Ortiz’s Major Crimes Unit and Dustin Chao of Ortiz’s Public Corruption Unit.
The details contained in the complaint affidavit are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.20-year Sentence for Man Who Dealt Heroin That Resulted in Overdose DeathRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Anthony D. Scott, 28, of Columbus was sentenced in U.S. District Court today to 240 months in prison for distributing the heroin that led to the overdose death of a Columbus man in August 2013.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, James V. Allen, Acting Special Agent in Charge, DEA and agencies participating in the DEA task force announced the sentence imposed today by U.S. District Judge Gregory L. Frost.
Scott pleaded guilty in February 2014 to distribution of heroin. At the time of his plea, Scott acknowledged distributing heroin on multiple occasions in July and August of 2013, including the heroin that caused the overdose-death of a 41 year-old Columbus man, as well as possessing heroin and cocaine along with 5 firearms in his residence at the time of his arrest.
Assistant U.S. Attorney Michael Hunter told the court, “Presented here is not some hypothetical or rhetorical statement by a prosecutor about a defendant that is causing harm to the community; there was significant and compelling evidence that the heroin that Mr. Scott pumped into the streets of Columbus directly contributed to the death” of a Columbus-area man.
Scott was also sentenced to serve six years under court supervision after he serves his prison time.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the DEA, the police departments in Upper Arlington, Westerville, and Grove City, the Central Ohio Drug Enforcement Task Force (C.O.D.E.), Franklin County Sherriff Zach Scott’s Office, and the Fairfield-Hocking Major Crimes Unit for their participation in the investigation and arrest of Scott in August 2013. Scott has been in custody since his arrest.
28 May 2014
Worley Man Pleads Guilty to Meth DistributionRead the Press Release
COEUR D’ALENE – Larry Donald Havier, Jr., 37, of Worley, Idaho, pleaded guilty yesterday in United States District Court to distribution of fifty grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Havier was indicted by a federal grand jury on January 22, 2014.
According to statements made in court, Havier admitted that between May 2013, and January 2014, he conspired with others to distribute methamphetamine. Havier admitted that on at least two occasions he delivered methamphetamine to a confidential source of the Bureau of Indian Affairs and Drug Enforcement Administration.
The charge is punishable by imprisonment for not less than 10 years, a maximum fine of $10 million, and at least five years supervised release.
Havier is set for sentencing on August 18, 2014, before U.S. District Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was the result of a drug investigation conducted by the Bureau of Indian Affairs, Drug Enforcement Administration, Coeur d’Alene Tribal Police Department, and Plummer Police Department.
Woman Indicted for Assault, Interfering with Flight CrewRead the Press Release
MINNEAPOLIS— Today in federal court, a 34-year-old Fresno, California woman was arraigned for interfering with a Delta Airlines flight crew. Brandi Kristine Poulsen was charged by indictment with three counts of Interference with a Flight Crew and Attendants and one count of Assault of a Fellow Passenger.
On February 7, 2014, Poulsen was on board Delta flight 1189 travelling from Baltimore to Salt Lake City. According to the indictment, the defendant made threats against the lives of crew members, and assaulted one crew member and a passenger. The alleged offense caused the unscheduled landing of the airliner at the Minneapolis-St. Paul airport.
The maximum penalty for Interference with a Flight Crew and Attendants is 20 years’ imprisonment, as well as possible fines. All sentences are ultimately determined by a federal district court judge.
This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Wichita Man Charged with Bank RobberyRead the Press Release
WICHITA, KAN. -- Craig E. Applebee, 59, Wichita, Kan., is charged with one count of bank robbery. The indictment alleges that on May 15, 2014, he robbed the Credit Union of America at 212 S. Ridge Road in Wichita.
Court documents allege he entered the credit union at about 3:22 p.m. wearing a black ball cap and dark hooded sweatshirt. He gave a teller a note demanding money. A teller put a GPS tracking device in a bag with the money. Wichita police stopped Applebee’s car near 3700 W. Central less than 15 minutes after the robbery.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.OTHER INDICTMENTS
Weston Brett Canfield, 27, who is in federal custody, is charged with one count of robbery, one count of brandishing a firearm during a robbery and one count of unlawful possession of a firearm after a felony conviction.
The indictment alleges that on May 12, 2014, he brandished a firearm when he robbed Patty’s Retail Liquor at 3705 S.W. Plaza Drive in Topeka.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000 on the bank robbery charge, not less than seven years and a fine up to $250,000 on the charge of brandishing a firearm during a robbery, and a maximum penalty of 10 years and a fine up to $250,000 on the other firearm charge.
The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.Antonio Carrillo, 45, is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred May 11, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Jorge Goerne Canales, 54, El Paso, Texas, is charged with one count of making a false statement to a federal investigator. The crime is alleged to have occurred April 8, 2014, in Johnson County, Kan.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Zeke Mills, 32, Wichita, Kan., is charged with four counts of unlawful possession of ammunition after a felony conviction, two counts of unlawful possession of an unregistered firearm and four counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in March and April 2014 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties: Unlawful possession of ammunition, unlawful possession of firearms: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of unregistered firearms: A maximum penalty of 10 years and a fine up to $10,000.The Wichita Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Waterloo Man Sent Back to Prison for Violating His Supervised Release Conditions by Selling DrugsRead the Press Release
A federal felon who was serving a six-year term of supervised release after being released from prison for drug trafficking was sent back to prison for three years when he was caught selling drugs again.
Floyd Neal, age 71, from Waterloo, Iowa, received the prison term after admitting during a revocation hearing on Tuesday, May 27, 2014, that he violated the terms and conditions of his supervised release.
During the hearing, Neal admitted that, while on supervised release, he failed to provide a urine sample as required, was residing with a felon against orders, and provided urine on April 23, 2014, that tested positive for cocaine. The most serious violation, however, occurred on May 6, 2014, when the Iowa Division of Narcotics Enforcement and the Waterloo Police Department searched Neal’s apartment and car and found cocaine. Neal admitted to the officers that he was involved in distributing cocaine.
Neal was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Neal was sentenced to 36 months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Neal is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Iowa Division of Narcotics Enforcement, the Waterloo Police Department, and the United States Probation Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 97-cr-2012.
Violent Felon Sentenced to 105 Months in PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that U.S. District Court Judge James J. Brady sentenced MELVIN TROSCLAIR, age 35, of Baton Rouge, Louisiana, to a term of imprisonment of 105 months and three years of supervised release after imprisonment. His sentence was based on his conviction for possessing a firearm while a convicted felon, in violation of Title 18, United States Code, Section 922(g).
At the sentencing hearing, the Court stated that Trosclair was a danger to the community and cited his extensive criminal history and propensity for violence as reasons for imposing the lengthy prison sentence.
This matter arose from events on April 17, 2012. On that day, Deputy United States Marshals arrived at a residence on North 28th Street in Baton Rouge, Louisiana in order to arrest Trosclair on an outstanding warrant for armed robbery. When Deputy Marshals entered the residence they discovered Trosclair in possession of a loaded pistol and body armor. A Special Agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives quickly responded to the scene and initiated an investigation, which resulted in this federal prosecution.
U.S. Attorney Green stated: “Aggressively pursuing violent offenders will continue to be a top priority for this office. Felons armed with loaded firearms and protected with body armor pose a clear danger to the safety of our communities.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Marshals Service. The matter was prosecuted by Assistant United States Attorney Chris Dippel.
Urbana Man to Serve 10 ½ Years for Bank RobberiesRead the Press Release
Urbana, Ill. – An Urbana, Ill., man, Willie B. Franklin, Jr., 38, has been ordered to serve
125 months (10 years, 5 months) in prison for robberies committed in December 2012 of four banks in central Illinois and one bank in southern Iowa. Yesterday, May 27, U.S. District Judge
Michael P. McCuskey further ordered that Franklin pay restitution in a total amount over
$46,000.
According to court documents filed by the U.S. Attorney’s Office, in mid-May, the U.S.
Attorney’s Office received an anonymous letter with information that Franklin had received inheritance money. Upon investigation, authorities confirmed that Franklin had inherited money after his father died in March 2014. On May 19, U.S. District Judge Michael P. McCuskey issued a court order that any inheritance Franklin received, up to the value of restitution owed, be turned over to the Clerk of the Court.
Franklin pled guilty on Jan. 31, 2014, to committing five bank robberies in December
2012: on Dec. 3, 2012, Main Source Bank, Kankakee County; on Dec. 5, 2012, PNC Bank, Peoria County; on Dec. 20, 2012, Homestar Bank and Financial Services, Kankakee County; on
Dec. 26, 2012, First Mid-Il Bank and Trust, Adams County; and, on Dec. 17, 2012, US Bank in southern Iowa.
Franklin was arrested on Jan. 28, 2013, in the Middle District of Florida and appeared in federal court in Tampa, Fl., prior to being transferred to the Central District of Illinois. Franklin has remained in the custody of the U.S. Marshals Service since his arrest.The investigation was conducted by the FBI, the Urbana Police Department, the Quincy
Police Department, the Peoria Police Department, the Decatur Police Department, the Manteno
Police Department, and the Iowa City Police Department. Assistant U.S. Attorney Jason M.
Bohm prosecuted the case.United States Attorney’s Office Achieving Landmark Results in Fight Against Health Care FraudRead the Press Release
Settlements Valued At More Than $75 Million Completed In the First Half of 2014
LEXINGTON The U.S. Attorney’s Office’s concerted efforts to combat Medicare and Medicaid fraud and recover wrongfully obtained taxpayer dollars, are bearing fruit as evidenced by recent civil settlements totaling more than $75 million. The settlements – highlighted by today’s $40.9 million dollar deal with King’s Daughters Medical Center in Ashland, Kentucky – result from a reorganization of investigative and prosecutorial resources within the U.S. Attorney’s Office to focus on health care fraud.
“Health care fraud has been a Department of Justice priority for several years, and our office has made it a priority as well,” said U.S. Attorney Kerry B. Harvey. “There is a tremendous amount of taxpayer money in federal health care programs like Medicare and Medicaid being spent in the Eastern District of Kentucky. Where there are signs that health care providers have obtained taxpayer dollars through fraud or other forms of abuse, it is our responsibility to investigate those allegations and recover those funds to the fullest extent allowed by the evidence and the law.”
The Eastern District of Kentucky covers 67 counties in the eastern half of the state, and US. Attorney Harvey leads the U.S Attorney’s Office, which has responsibility for enforcing federal laws in that part of the state.
In late 2010, U.S. Attorney Harvey reorganized the U.S. Attorney’s Office to create a fraud unit that focuses in part on fighting civil fraud, particularly health care fraud. The attorneys and other personnel assigned to the group – including a paralegal, auditor, and investigator – work closely with law enforcement agencies such as FBI and Health and Human Services (HHS) and with state level counterparts at the Kentucky Office of the Attorney General to investigate health care fraud allegations. Where appropriate, criminal and civil health care fraud investigations are conducted simultaneously.
“These cases are large and complex from both a legal and factual standpoint,” said Andrew Sparks, Chief of the Fraud Unit. “They have taken time to investigate, but those efforts are paying off.”
U.S. Attorney Harvey observed that several of the cases resolved this year involved allegations of medically unnecessary procedures and other unsafe medical practices, which can pose serious health risks.
“These cases are not just about dollars and cents; they are also about patient safety and quality medical care,” said U.S. Attorney Harvey. “Where appropriate, this office can and will use federal laws and resources to hold accountable those health care providers that put their bottom line above their patients’ interests.”
Each of the 2014 settlements resolves allegations that health care providers violated the False Claims Act by submitting false or fraudulent claims to Medicare or Medicaid. That federal statute allows the government to recover up to three times the amount of monetary loss caused by the fraudulent conduct. Several of the settlements included a separate Corporate Integrity Agreement between the defendant and HHS, which allows for greater government oversight of the health care provider’s quality of service, billing, and compliance practices.
Harvey emphasized the ongoing nature of the Department’s health care fraud efforts and the importance of public awareness of potential fraud.
“We are not resting on our laurels with these settlements, and have added additional resources to our health care fraud group over the last few months,” said Harvey. “However, we can only investigate what we know about, and I would encourage those members of the public who are aware of potential fraud to report it through appropriate channels, whether at their workplace, through the HHS fraud hotline, or at our office.”
Below is a list of some of the significant civil health care fraud settlements in 2014.
U.S. vs. Saint Joseph London Hospital: The hospital agreed to pay the federal government $16.5 million to settle allegations that it billed Medicare and Medicaid for highly invasive and medically unnecessary cardiac procedures.
U.S. vs. Mullali: A Somerset, Ky., oncology center agreed to pay the government $2 million to settle allegations that the oncology practice had purchased cheap, foreign chemotherapy drugs that were not approved by the FDA. The drugs were used on patients, and then the oncology center billed the services to Medicare as if the drugs were the FDA-approved versions.
U.S. vs. PremierTox: A chain of opiate addiction recovery centers, and a clinical laboratory along with two physician owners agreed to pay the government $15.75 million to settle allegations that they fraudulently billed federal health care programs for urine tests that were unnecessary and excessive.
U.S. vs. King’s Daughters: The Ashland Hospital agreed to pay $40.9 million, plus interest, to settle allegations that it had billed Medicare and Medicaid for invasive and medically unnecessary heart procedures as well as allegations of significant Stark Law violations.United States Attorney Stephanie Finley Speaks to Abbeville Rotary Club MembersRead the Press Release
ABBEVILLE, La.–United States Attorney Stephanie A. Finley was the guest speaker today at Abbeville Rotary Club’s weekly meeting held at the Abbeville Country Club where she spoke to members about the role of the U.S. Attorney’s Office.
“I share the values of community involvement and education with the Abbeville Rotary Club,” Finley said. “It is always a priority to speak and share information about what we do at the U.S. Attorney’s Office. I appreciate that the Abbeville Rotary Club invited me to come and spend this time with them and commend them for being strong leaders in the community.”
The 1.2 million-member Rotary International organization started with the vision of Paul P. Harris. The Chicago attorney formed one of the world’s first service organizations, the Rotary Club of Chicago, on February 23, 1905 as a place where professionals with diverse backgrounds could exchange ideas and form meaningful, lifelong friendships. Rotary’s name came from the group’s early practice of rotating meetings among the offices of each member.
The Abbeville Rotary Club is composed of community members of diverse backgrounds who contribute to the community by providing donations, labor and other resources to local organizations and projects. Club members meet once a week at the Abbeville Country Club to share knowledge, socialize, plan events, and learn more about their community. The current club officers are President, Dr. Lance Savoie, a local dentist; Secretary Pamela Trahan, a tax preparer; and Treasurer Mason Romero, a pharmacist. To learn more about the Abbeville Rotary Club, please visit www.rcabbeville.org.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu. Finley was confirmed by the U.S. Senate on May 28, 2010, and sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force, and currently serves as Vice Chair of Attorney General Eric Holder’s Advisory Committee’s Office of Management and Budget Committee.
Two Men Sentenced to Federal Prison for Robberies at Businesses in TopekaRead the Press Release
TOPEKA, KAN. – Two men were sentenced Tuesdayfor robberies at Topeka businesses, U.S. Attorney Barry Grissom said.
Quartez Norwood, 32, Topeka, Kan., was sentenced to 180 months in federal prison. He pleaded guilty to two counts of robbery and one count of brandishing a firearm during a robbery.
Henry Lavelle Davis, 41, Topeka, Kan., was sentenced to 84 months in federal prison. He pleaded guilty to two counts of robbery
In his plea, Norwood admitted that:
- On July 29, 2013, he robbed the EZ Payday Advance at 2613 S.W. 21st Street in Topeka.
- On Aug. 3, 2013, he robbed the Family Dollar at 2616 S.E. 6th Street in Topeka.
- On Aug. 3, 2013, he brandished a firearm during the robbery at the Family Dollar.
In his plea, Davis admitted that:
- On July 25, 2013, he robbed the Check Into Cash at 3711 S.W. Plaza Drive in Topeka.
- On July 29, 2013, he robbed the EZ Payday Advance at 2613 S.W. 21st Street in Topeka.
Co-defendants include:
Xavier Leron Sims, 26, Topeka, Kan., who was sentenced to 35 months.
Robert Wayne Redmond, 42, Topeka, Kan., who is set for sentencing July 14.
Henry Earl Sirvira, 45, Topeka, Kan., who is awaiting trial.Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Two Individuals Plead Guilty to Conspiring to Launder Bribes Received in AfghanistanRead the Press Release
Two individuals have pleaded guilty for their roles in a scheme to launder approximately $250,000 in bribes received from Afghan contractors in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney for the Western District of Tennessee Edward L. Stanton III and United States Attorney for the Eastern District of Tennessee William C. Killian made the announcement.
Jimmy W. Dennis, 44, formerly of Clarksville, Tennessee, and a former First Sergeant with the U.S. Army, pleaded guilty before U.S. District Court Judge Samuel H. May Jr. of the Western District of Tennessee to conspiracy to launder approximately $250,000 in bribe payments he received from Afghan contractors in Afghanistan. Sentencing is scheduled for Sept. 4, 2014.
James C. Pittman, 45, of Rossville, Georgia, pleaded guilty last Thursday before U.S. Magistrate Judge William B. Carter of the Eastern District of Tennessee for his role in this conspiracy. Sentencing is scheduled for Sept. 8, 2014.
According to pleadings filed at the time of the guilty pleas, from March 2008 through March 2009, Dennis was an Army Sergeant assigned as a paying agent in the Humanitarian Aid Yard (HA Yard) at Bagram Air Field, Afghanistan. Dennis was a member of the team in the HA Yard that purchased supplies from local Afghan vendors for distribution as part of the Commander’s Emergency Response Program for urgent humanitarian relief requirements in Afghanistan. Dennis and a partner entered into an agreement to steer contracts to certain Afghan vendors in return for approximately $250,000 in cash bribes.
Further according to court pleadings, Dennis smuggled the bribe money back to the United States hidden in packages addressed to his wife, his father and a former Army friend, Pittman. Dennis sent $80,000 to $100,000 to his father from Afghanistan in packages that contained toy “jingle trucks,” colorfully decorated trucks or buses in Afghanistan and Pakistan. Dennis hid the money in the rear compartment of the toy trucks. Dennis also shipped a hope chest to his father containing approximately $100,000 in cash in a concealed compartment.
Also according to court documents, while on leave, Dennis met with Pittman, advised him that he had obtained money through kickbacks, and asked him for help laundering the funds. Pittman, owner of a landscaping business, agreed to “run through his company” these bribery proceeds. After returning to Afghanistan, Dennis sent approximately $60,000 to Pittman contained in toy jingle trucks. Dennis also arranged for his father to send approximately $20,000 to Pittman, who returned it in the form of purported salary checks from Pittman’s company.
These matters are being investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, the Army Criminal Investigative Division, the Defense Criminal Investigative Service, and the Air Force Office of Special Investigation. The prosecution is being handled by Trial Attorney Daniel Butler of the Criminal Division and Assistant U.S. Attorneys Frederick Godwin of the Western District of Tennessee and James Brooks of the Eastern District of Tennessee.Two Individuals Plead Guilty to Conspiring to Launder Bribes Received in AfghanistanRead the Press Release
WASHINGTON – Two individuals have pleaded guilty for their roles in a scheme to launder approximately $250,000 in bribes received from Afghan contractors in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney for the Western District of Tennessee Edward L. Stanton III and United States Attorney for the Eastern District of Tennessee William C. Killian made the announcement.
Jimmy W. Dennis, 44, formerly of Clarksville, Tennessee, and a former First Sergeant with the U.S. Army, pleaded guilty before U.S. District Court Judge Samuel H. May Jr. of the Western District of Tennessee to conspiracy to launder approximately $250,000 in bribe payments he received from Afghan contractors in Afghanistan. Sentencing is scheduled for Sept. 4, 2014.
James C. Pittman, 45, of Rossville, Georgia, pleaded guilty last Thursday before U.S. Magistrate Judge William B. Carter of the Eastern District of Tennessee for his role in this conspiracy. Sentencing is scheduled for Sept. 8, 2014.
According to pleadings filed at the time of the guilty pleas, from March 2008 through March 2009, Dennis was an Army Sergeant assigned as a paying agent in the Humanitarian Aid Yard (HA Yard) at Bagram Air Field, Afghanistan. Dennis was a member of the team in the HA Yard that purchased supplies from local Afghan vendors for distribution as part of the Commander’s Emergency Response Program for urgent humanitarian relief requirements in Afghanistan. Dennis and a partner entered into an agreement to steer contracts to certain Afghan vendors in return for approximately $250,000 in cash bribes.
Further according to court pleadings, Dennis smuggled the bribe money back to the United States hidden in packages addressed to his wife, his father and a former Army friend, Pittman. Dennis sent $80,000 to $100,000 to his father from Afghanistan in packages that contained toy “jingle trucks,” colorfully decorated trucks or buses in Afghanistan and Pakistan. Dennis hid the money in the rear compartment of the toy trucks. Dennis also shipped a hope chest to his father containing approximately $100,000 in cash in a concealed compartment.
Also according to court documents, while on leave, Dennis met with Pittman, advised him that he had obtained money through kickbacks, and asked him for help laundering the funds. Pittman, owner of a landscaping business, agreed to “run through his company” these bribery proceeds. After returning to Afghanistan, Dennis sent approximately $60,000 to Pittman contained in toy jingle trucks. Dennis also arranged for his father to send approximately $20,000 to Pittman, who returned it in the form of purported salary checks from Pittman’s company.
These matters are being investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, the Army Criminal Investigative Division, the Defense Criminal Investigative Service, and the Air Force Office of Special Investigation. The prosecution is being handled by Trial Attorney Daniel Butler of the Criminal Division and Assistant U.S. Attorneys Frederick Godwin of the Western District of Tennessee and James Brooks of the Eastern District of Tennessee.
Twenty-One Defendants Charged in Manhattan Federal Court with Participating in Multimillion-Dollar Scheme to Extort Others by Posing as DEA AgentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, the Administrator of the United States Drug Enforcement Administration (“DEA”), announced today that 21 citizens of the Dominican Republic have been charged with conspiring to impersonate United States law enforcement officers, extortion, and wire fraud. Beginning two weeks ago, authorities in the Dominican Republic, acting on requests from the United States, located and arrested 17 of the defendants in the Dominican Republic, who are now awaiting extradition proceedings in that country. Four defendants remain at-large.
The defendants are alleged to have engaged in a scheme to extort money from individuals located in the United States by posing as DEA Agents or other representatives of the United States Government. The defendants targeted individuals who they believed had illicitly purchased prescription pharmaceuticals through call centers located in the Dominican Republic. As part of the defendants’ scheme, a member of the conspiracy would call a victim located in the United States and identify him- or herself as a DEA agent or representative of another United States agency. The victim would then be told that he or she was under investigation for illegally purchasing prescription drugs, and that the only way to avoid arrest and jail would be to pay a “fine” or some other fee to the DEA. In total, the defendants and others who participated in this scheme and copy-cat schemes demanded at least $3.5 million, and received at least $880,000, in extortionate payments from victims in the United States.
United States Attorney Preet Bharara said: “These defendants generated untold millions of dollars in illicit profits by posing as DEA Agents or other U.S. law enforcement officers. They carried out the internet or telephone equivalent of displaying phony badges to rip off their victims. In the process, the defendants assaulted the good name of the DEA. We commend the DEA for putting a stop to this criminal charade.”
DEA Administrator Michele M. Leonhart said: “These alleged criminals not only bilked thousands of dollars from unsuspecting Americans but they also called into question the integrity and honor of the DEA and all law enforcement. The DEA, with the assistance of our Dominican Republic counterparts, have worked diligently to identify, target and, ultimately, dismantle this group of alleged scam artists. We urge anyone who receives a similar threatening phone call to hang up and contact local or federal law enforcement immediately.”
According to the Indictment, which was unsealed today in Manhattan federal court:
From at least 2008, up to and including March 2013, JULIO SANTANA JOSEPH, FRANCISCO RUBIO MONTALVO, ANGEL PEREZ AVILES, a/k/a “Mike,” DEIVY BURGOS FELIX, CHENGY PADILLA GARO, GEURY GUZMAN ROSA, DANTE CAMINERO VASQUEZ, SAUL HERNANDEZ BATISTA, MOISES DE LA CRUZ DECENA, CELSO MIGUEL SARITA, EDWARD CUEVAS ESCANO, SANTIAGO GUZMAN GONZALEZ, JOSE ARISMENDY CUESTA ABREU, CARLOS PERDOMO ROSARIO, a/k/a “El Depo,” ELINSON REYES ALMONTE, YEURY AMARANTE ROSARIO, MARIO ANTONIO PLACIDO, YGNACIO ESTEVEZ MESSON, BORIS GIL GUERRERO, VICTOR VELASQUEZ ROCHTTIS, a/k/a “Vitico,” and RAFAELA MEDINA, a/k/a “Carolina,” the defendants, and others known and unknown, engaged in a scheme to extort money from individuals located in the United States by posing as DEA Agents or other representatives of the United States Government (the “Impersonation and Extortion Scheme”). Each of the defendants made extortionate calls and/or received money from victims who had been extorted. The Impersonation and Extortion Scheme targeted individuals who the defendants believed had purchased prescription drugs unlawfully over the internet or through call centers. The illicit websites and call centers at issue sold pills to customers that would typically require a doctor’s prescription to purchase. The illicit websites and call centers did not require consumers to obtain the required prescriptions before purchase (hereinafter, the pills sold in this manner are referred to as the “Prescription Drugs”).
The DEA Impersonation and Extortion Scheme typically operated as follows: First, certain of the defendants and other individuals not named as defendants who engaged in the Impersonation and Extortion Scheme (the “Extorters”) purchased, or otherwise obtained, lists of individuals who the Extorters believed had previously purchased Prescription Drugs over the internet on illicit websites or through illicit call centers located in the Dominican Republic (“Customer Lists”). The Customer Lists generally contained the names, addresses, credit card numbers and other information for individuals located in the United States.
Second, an Extorter contacted a customer from the Customer Lists (the “victim”) and identified him- or herself as a DEA agent or representative of another United States agency. Often, the Extorter provided the name of an actual DEA supervisor from a DEA office located in the United States. The Extorters attempted to extort money from victims throughout the United States, including victims in Manhattan and the Bronx, New York.
During a call with a victim, an Extorter falsely informed the victim that authorities in the Dominican Republic or elsewhere were investigating or criminally charging the victim as a result of his or her illegal purchase of Prescription Drugs that were sent to the victim from the Dominican Republic. In a single call or series of calls and emails, the Extorter detailed the purported criminal charges and potential penalties facing the victim, including imprisonment, and the likelihood that the victim would be arrested and extradited to a foreign country for prosecution.
During a call with the victim, an Extorter also generally informed the victim that he or she could dispose of, or avoid, the criminal charges by making a cash payment. In order to do so, the Extorter had the victim transfer between several hundred and several thousand dollars either (i) through a money remitting service to a particular individual in the Dominican Republic, or (ii) via wire transfer to a particular bank account located in the Dominican Republic.
Following receipt of a payment from a victim, an Extorter typically contacted the victim again. During the follow-up conversations, the Extorter demanded additional payments and threatened to have criminal charges re-filed against the victim. If the victim refused to make, or to continue to make, extortion payments to the Extorter, the Extorter threatened the victim with his or her imminent arrest, with searches of the victim’s home in the United States by federal law enforcement officers, or with public disclosure of the victim’s prior purchases of Prescription Drugs.
The Extorters typically made extortion calls from illicit call centers located in the Dominican Republic (the “Call Centers”). In these Call Centers, the Extorters gathered together and used multiple computers equipped with Voice Over Internet Protocol (“VOIP”) technology to make extortion calls to victims listed on a Customer List. VOIP is a means of transmitting digital voice communications over the internet via a high-speed internet connection. The VOIP technology allowed the Extorters to contact their victims by using VOIP lines that made it appear as though the Extorters were calling from telephone numbers with area codes from within the United States. For example, the Extorters used VOIP lines that made it appear as though the Extorters were calling from, among other places, Washington, D.C., and New York, New York, when, in truth, the Extorters were located in the Dominican Republic. The Extorters often made hundreds of extortion calls a day from these Call Centers to victims in the United States.
Once a particular victim made an extortion payment to one of the Extorters, the Extorter who received that payment often shared that victim’s contact information with other Extorters, who then besieged the victim with additional, repeated extortion attempts via telephone. While using these lines to further the Impersonation and Extortion Scheme, the Extorters often traded tips with other Extorters in the same Call Center on the best techniques to use to extort victims.
Beginning in June 2010, the DEA established a telephone hotline (the “Hotline”), to allow victims to report extortion attempts and other contacts with the defendants and other individuals who engaged in the Impersonation and Extortion Scheme and who posed as DEA and other federal agents. Since the Hotline was established in June 2010, through January 2013, the DEA received approximately 6,500 reports from victims of extortion attempts, nearly all of which followed substantially the same pattern described above. In sum, through the Hotline, the DEA has learned of the Extorters’ efforts to obtain over $3.5 million in extortion payments from victims, and of actual extortion payments from victims to the Extorters of over $880,000. These attempted extortions and actual extortion payment amounts reflect only what was reported to the DEA through the Hotline, and thus represent only a portion of the extortion payments that the Extorters have attempted to obtain, or actually obtained, from their victims.
Each of the defendants has been charged with one count of conspiracy to commit wire fraud, and one count of conspiracy to commit extortion, each of which carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Each of the defendants has also been charged with one count of conspiracy to impersonate a United States law enforcement officer, which carries a maximum potential penalty of 5 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the DEA’s Special Operations Division, the New York Field Office of the DEA, the DEA’s Dominican Republic Country Office, the U.S. Department of Justice's Office of International Affairs, the Department of Homeland Security’s Homeland Security Investigations, and the Dominican National Directorate for Drug Control for their work in this investigation.
This prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Ian McGinley and Adam Fee are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Julio Joseph 13 Cr 213 Indictment
Tonawanda Man Charged with Making False Bomb Threat at Military Recruiting CenterRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Jason Gentzke, 25, of Tonawanda, N.Y., was charged by criminal complaint with intentionally conveying false information indicating that the Armed Forces Recruiting Center on Sheridan Drive in Tonawanda would be damaged by an explosive device. The charge carries a maximum possible sentence of five years in prison and a fine of $250,000.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on May 27, 2014, the defendant entered the Armed Forces Recruiting Center and threw a suitcase that appeared to contain electronics, cords, and wires into the office and made threatening statements. After the building was evacuated, the Erie County Bomb Squad inspected the suitcase and discovered that it contained a power strip cord, a fish tank filter, and other materials and was not an explosive device.
The defendant will make an appearance on the charges at a later date.
The criminal complaint is the culmination of an investigation on the part of Special Agents of Federal Bureau of Investigation, the Tonawanda Police Department, under the direction of Chief Anthony Palombo, and members of the Erie County Bomb Squad, under the direction of Sheriff Timothy Howard.
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.