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14 May 2014
Armed Robber of A Garda Armored Car Warehouse Sentenced to Thirty Two Years ImprisonmentRead the Press Release
SAN FRANCISCO – Monico Dominguez was sentenced today to thirty two years imprisonment, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Dominguez, of Santa Rosa, was indicted by a federal grand jury on Nov. 29, 2012 and was charged with of one count of robbery, one count of attempted robbery, two counts of conspiring to commit robbery, two counts of possession of a firearm in furtherance of a crime of violence, three counts of money laundering, and one count of structuring. Dominguez was found guilty by a jury on Feb. 24, 2014. The jury found that on Aug. 11, 2011, Dominguez committed an armed robbery of the Garda Cash Logistics warehouse in Santa Rosa, Calif., that he laundered and structured the substantial cash proceeds from that robbery, and that he attempted to commit a second robbery at that same facility on Aug. 6, 2012. The guilty verdict followed a two week jury trial before the Honorable Edward M. Chen, United States District Court Judge.
Evidence at trial showed that on Aug. 11, 2011, Dominguez and an accomplice dove under the closing garage door of the Garda warehouse as an armored car was returning from the night shift, that Dominguez held up the guards with an AK-47 assault rifle before tying them up and entering the vault. Dominguez stuffed just over $909,000 in cash into a duffel bag before fleeing the scene. Dominguez got away with this heist for approximately one year, during which he opened new bank accounts, made substantial cash deposits, and purchased multiple Harley Davidson motorcycles, cars, and expensive construction equipment. The evidence at trial showed that on August 6, 2012, Dominguez set in motion a plan to steal an armored car from the Garda warehouse, but the robbery was foiled before it could happen with the assistance of a confidential informant who had reported Dominguez’s plan to the Federal Bureau of Investigation and Santa Rosa Police Department.
The sentence was handed down by the Edward M. Chen, United States District Court Judge in San Francisco. Judge Chen also sentenced the defendant to a 3 year period of supervised release, $907,000 in restitution to Garda, and a $100 special assessment.
Assistant U.S. Attorneys Randy Luskey and Ben Tolkoff prosecuted this case with the assistance of Daniel Charlier-Smith and Christine Tian. This prosecution is the result of a joint investigation by the Federal Bureau of Investigation and the Santa Rosa Police Department.(Dominguez superseding indictment )
15 Charged in ‘Bustout’ Scheme That Cost Victim Banks $15+ MillionRead the Press Release
LOS ANGELES – Authorities this morning arrested 12 people and are seeking the whereabouts of three others who are charged in a large-scale, bank account “bustout” scheme that victimized major financial institutions across Southern California, costing banks at least $15 million.
This morning’s arrests are the result of “Operation Check Kkang,” a multi-agency investigation into a bustout scheme that victimized financial institutions such as Bank of America, JPMorgan Chase, U.S. Bank and Wells Fargo Bank. Check Kkang refers to a Korean term that describes check kiting.
The investigation was jointly conducted by special agents with the Federal Bureau of Investigation and IRS - Criminal Investigation, and officers with the Pomona Police Department. Other law enforcement agencies provided substantial assistance.
Those arrested this morning are among 15 defendants named in a 26-count indictment that describes a bustout scheme in which the members of the conspiracy deposited bogus checks and immediately withdrew funds from the account. Once the financial institution realized that the check is fraudulent and dishonored the deposit, the account was “busted.”
The indictment, which was returned by a federal grand jury on May 7 and unsealed this morning, describes a scheme that allegedly started in February 2010 and continued until last October 2013. Those named in the indictment are:
Jae Ho Chung, 44, of Los Angeles (Westwood);
Michael Yeon Cho, 30, of Pacific Palisades;
Roger Lee, 48, of Cerritos;
Kun Young Lee, 51, of Los Angeles (Koreatown);
Jeong Gu Kim, 53, of Los Angeles;
Hak Soo Shim, 40, of Newport Beach;
Renling “Mark Ling” Chao, 50, of Los Angeles (Brentwood);
Il Hwan Jae, 60, of Los Angeles (Koreatown);
Erick Palafox, 28, of ; of Lynwood
Jae Kwon An, 42, of Riverside;
Joonie Yeon Cho, 42, of Los Angeles (Koreatown);
Eun Ah Kim, aka Eun Ae Kim, 39, of Los Angeles;
Hye Ran Lee, 30, of Irvine;
Hee Jung Lee, 41, of Riverside; and
Woo Chang Lim, 36, of Ventura.
Twelve of the defendants were arrested today. Jae Ho Chung, Roger Lee, and Hye Ran Lee are considered fugitives. Those taken into custody are expected to be arraigned on the indictment this afternoon. The arraignments will take place in federal courthouses in Los Angeles, Riverside and Santa Ana, with locations for specific hearings to be determined by where an individual defendant was arrested.According to the indictment, Chung and Cho were “processors” who fabricated or hired others to make fictitious checks for the purpose of conducting bustouts. The bogus checks ranged in amounts from $2,300 to more than $28,000.
Defendants R. Lee, K.Y. Lee, J.G. Kim, and Shim were “brokers,” according to the indictment that accuses them of soliciting people with legitimate bank accounts who would lend their accounts to be busted-out in exchange for a fee. The brokers allegedly found bank customers by placing advertisements in Korean-language newspapers,
Defendants Chao, Jae, Palafox, An, J.Y. Cho, E.A. Kim, H.R. Lee, H.J, Lee, and Lim were “runners” or “washers” who allegedly deposited fictitious checks into, and then withdraw funds from, the account to be busted-out. Runners and washers used funds from the bustouts to purchase goods, services and gift cards, according to the indictment.
All 15 defendants are charged with conspiracy to commit bank fraud and bank fraud. The indictment also contains an asset forfeiture allegation in which the government will seek to forfeit any property derived from the proceeds of the scheme in the event of any defendant’s conviction. If convicted of the two counts in the indictment, each defendant would face a statutory maximum penalty of 60 years in federal prison.
The Check Kkang investigation was conducted jointly by the FBI; IRS - Criminal Investigation, and the Pomona Police Department.
The following agencies provided assistance: U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Secret Service, the Los Angeles Police Department, the United States Postal Inspection Service, the Social Security Administration, the Los Angeles County Sheriff’s Department, the Ventura County Sheriff’s Department, the Riverside County Sheriff’s Department, the Glendale Police Department, the Burbank Police Department, the Beverly Hills Police Department, the Santa Ana Police Department, and the Los Angeles County Department of Child and Family Services.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Release No. 14-062
13 May 2014
Woodstock, Vermont Restaurant the Prince and the Pauper Takes Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that the owners of The Prince and the Pauper restaurant and the building in which it is located at 24 Elm Street Woodstock, Vermont have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of The Prince and the Pauper.
An onsite survey of The Prince and the Pauper performed by United States Department of Justice architects revealed ADA compliance issues related to the restaurant’s entrance, route from the entrance to the bar and dining areas, the bar and dining areas, and the toilet rooms. The Prince and the Pauper will remedy the agreed upon ADA compliance issues by May 31, 2014.
The Prince and the Pauper’s owners and the owner of the building in which the restaurant is located recognized their obligation to address the issues identified in the onsite survey. Vincent Talento, Christopher Balcer, and Don Bourdon are to be commended for their cooperation with the Office of the United States Attorney.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Winter Park Attorney Pleads Guilty to Tax EvasionRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Richard R. Baker (47, Winter Park) today pleaded guilty to tax evasion. Baker faces a maximum penalty of five years in federal prison, and a $250,000 fine. His sentencing hearing has not yet been scheduled.
According to court documents, Baker has been licensed to practice law in Florida since 1993. In the late 1990s or early 2000s, Baker began to focus his practice on bankruptcy law and started managing and operating his own law office, which was known as the Law Offices of Richard R. Baker.
As a result of his position as an attorney, his training in the law, and his expertise in bankruptcy law, Baker knows that individuals are required to file personal federal tax returns. Despite that knowledge, he failed to timely file his personal federal tax returns from at least 1995 to 2008. From 2002 to 2008, Baker’s total adjusted gross income was approximately $991,008. Because of the amount of gross income that he earned in each of those years, Baker was required by law to file personal tax returns.
In an attempt to evade paying his income taxes, Baker submitted extensions to the Internal Revenue Service for his 2007 and 2008 tax returns. He falsely represented that he owed $0 in taxes. In addition, Baker claimed more allowances than he was allowed for his federal withholding, and he failed to mail to the IRS the W-2 forms that had been prepared for him and the other employees at his business.
On several occasions, Baker was advised that he needed to file his personal and corporate federal tax returns. In October 2009, Baker’s accountant prepared his personal returns for 2002 to 2008. Baker, however, did not file any of those returns at that point. Rather, he continued with his efforts to prevent the IRS from being able to investigate him, which included the submission of a false Collection Information Statement to the IRS, in November 2009, that misrepresented the number of exemptions that he had claimed on his withholding and that omitted two bank accounts controlled by him, containing thousands of dollars. The total amount of unreported income for Baker for 2002 to 2008 was approximately $991,008. The total tax loss for those years is approximately $160,348, which Baker has agreed to pay to the IRS as restitution.
This case was investigated by the Internal Revenue Service -- Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Wheeling Man Sentenced to 101 Months on Drug and Gun ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV – A Wheeling man who was selling cocaine and heroin from a local hotel was sentenced by Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that Dale A. DAVIS, also known as “Big Loc”, age 36, was sentenced to 101 months in prison for “Possession with Intent to Distribute Crack Cocaine” and “Possession of a Firearm in Furtherance of a Drug Trafficking Offense.” In August of 2013 the Ohio Valley Drug Task Force utilized an informant to make controlled purchases of cocaine and heroin from DAVIS at the Knights Inn (formerly the Wheeling Inn) on Main Street in Wheeling. After the controlled purchases were made the Task Force obtained a search warrant for the hotel room and DAVIS was found to have a 9mm pistol, cocaine, heroin, and approximately $2,400 in cash.
DAVIS was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case was prosecuted by Ihlenfeld.
In other court proceedings before Chief Judge John Preston Bailey, Ihlenfeld announced that:
Scott D. MCDONOUGH, age 50, of Martinsburg, West Virginia, was sentenced to 41 months in prison for his conviction of “Felon in Possession of Firearms.” MCDONOUGH agreed to abandon his interest in 22 firearms. MCDONOUGH, who is free on bond, will self-report to the designated Federal institution on June 5, 2014. This case was prosecuted by Assistant United States Attorney Jarod J. Douglas and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
James CASIMIRO, III, age 37, of Ranson, West Virginia, was sentenced to 6 months in prison for the “Distribution of Oxycodone.” CASIMIRO, a former assistant county prosecutor admitted to obtaining the painkillers from a cancer patient and then selling them for profit. The investigation involved the use of a confidential informant who made purchases of oxycodone tablets from CASIMIRO in May and June of 2013, a time period during which he was still employed as a prosecutor.
This case was investigated by the Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crimes Task Force. It was prosecuted by Assistant U.S. Attorney Paul T. Camilletti.
Waterloo Felon Convicted of Possessing Sawed-Off ShotgunRead the Press Release
A man who possessed a sawed-off shotgun was convicted by a jury today after a two-day trial in federal court in Cedar Rapids.
Patrelle Jose Green-Bowman, age 21, from Waterloo, Iowa, was convicted of possessing a firearm as a felon and possessing an unregistered sawed-off shotgun. Green-Bowman was acquitted of possessing ammunition as a felon. The verdict was returned this afternoon following about three hours of jury deliberations.
The evidence at trial showed that on August 2, 2013, Green-Bowman was found by Waterloo Police Department officers in the backseat of a car parked at an apartment complex in Waterloo. A sawed-off shotgun was found on the seat immediately behind where Green-Bowman had been sitting. The sawed-off shotgun was wrapped in Green-Bowman’s coat.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Green-Bowman remains in custody of the United States Marshal pending sentencing. Green-Bowman faces a possible maximum sentence of 10 years’ imprisonment on each count, $500,000 in fines, $200 in special assessments, and up to three years of supervised release on each count following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Waterloo Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-02023-LRR.
Veteran Federal Prosecutor Julie B. Porter Takes Helm of U.S. Attorney’s Office’s Criminal DivisionRead the Press Release
CHICAGO ― Julie B. Porter, a 10-year veteran of the U.S. Attorney’s Office who has supervised financial fraud and child exploitation cases and participated in significant trials involving corporate fraud and public corruption, has become the chief of the office’s criminal division, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced today.
Ms. Porter succeeds Manish S. Shah, who served as criminal chief for two years and was confirmed on April 30 by the U.S. Senate to be a judge on the U.S. District Court bench in Chicago. Prior to Ms. Porter’s appointment, which took effect on Friday, she was chief of the office’s financial fraud section.
“Julie is a great lawyer, a wonderful human being, and a prosecutor with deep understanding and real love for this office and what we do,” Mr. Fardon said.
The chief of the criminal division is third in the chain of command overseeing criminal prosecutions, following the U.S. Attorney and the First Assistant. Just over 120 of the office’s 152 attorneys are assigned to the criminal division, while the remaining attorneys are assigned to the civil division and the western division in Rockford.
Ms. Porter, 41, joined the U.S. Attorney’s Office in 2004. In 2009, she received a Justice Department award for being a leader and role model as a federal prosecutor from the Director of the Executive Office for United States Attorneys. Ms. Porter played a key role as a member of the prosecution teams in the corporate fraud trial of Conrad Black and other executives of the Hollinger International newspaper publishing company, and in multiple public corruption cases involving the City of Chicago’s Hired Truck program and Operation Board Games.
Ms. Porter is a graduate of Williams College and the University of Michigan Law School. In 2007, she was recognized in the “40 under 40” feature in Crain’s Chicago Business.
Union Officials Plead Guilty to Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - Three former International Longshoremen’s Association (ILA) union officials admitted today that they conspired to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Vincent Aulisi, 82, of West Orange, N.J., the president of ILA Local 1235 from approximately 2006 through 2007; Thomas Leonardis, 56, of Glen Gardner, N.J., the president of the union from approximately 2008 through 2011 and former ILA representative; and Robert Ruiz, 55, of Watchung, N.J., the delegate of the union from approximately 2007 through 2010 and former ILA representative, pleaded guilty today to conspiring to extort Christmastime tributes from ILA Local 1235 members – count three of the second superseding indictment against them. Aulisi, Leonardis and Ruiz entered their guilty pleas before U.S. District Judge Claire C. Cecchi in Newark federal court.
According to documents filed in this case and statements made in court: During their guilty plea proceedings, Aulisi, Leonardis and Ruiz admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrest in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against eight defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 58, of Kenilworth, N.J. – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
Two of the three remaining Genovese family associates are former union officials: Albert Cernadas, 78, of Union, N.J., the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA Executive vice president; and Nunzio LaGrasso, 63, of Florham Park, N.J., the former vice president of ILA Local 1478 and former ILA Representative. The third, Richard Dehmer, 78, of Springfield, N.J., is charged with illegal gambling conduct unrelated to the waterfront extortions.
The charge to which Aulisi, Leonardis and Ruiz pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 4, 2014, for Ruiz and Sept. 9, 2014, for Aulisi and Leonardis.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.14-166
Defense counsel: Joseph Fusella Esq., Bloomfield, N.J.
Michael N. Pedicini Esq., Chatham, N.J.
Marc Agnifilo Esq., New York, N.Y.Union Officials Plead Guilty to Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. B Three former International Longshoremen’s Association (ILA) union officials admitted today that they conspired to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Vincent Aulisi, 82, of West Orange, N.J., the president of ILA Local 1235 from approximately 2006 through 2007; Thomas Leonardis, 56, of Glen Gardner, N.J., the president of the union from approximately 2008 through 2011 and former ILA representative; and Robert Ruiz, 55, of Watchung, N.J., the delegate of the union from approximately 2007 through 2010 and former ILA representative, pleaded guilty today to conspiring to extort Christmastime tributes from ILA Local 1235 members – count three of the second superseding indictment against them. Aulisi, Leonardis and Ruiz entered their guilty pleas before U.S. District Judge Claire C. Cecchi in Newark federal court.
According to documents filed in this case and statements made in court:
During their guilty plea proceedings, Aulisi, Leonardis and Ruiz admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrest in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against eight defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 58, of Kenilworth, N.J. – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
Two of the three remaining Genovese family associates are former union officials: Albert Cernadas, 78, of Union, N.J., the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA Executive vice president; and Nunzio LaGrasso, 63, of Florham Park, N.J., the former vice president of ILA Local 1478 and former ILA Representative. The third, Richard Dehmer, 78, of Springfield, N.J., is charged with illegal gambling conduct unrelated to the waterfront extortions.
The charge to which Aulisi, Leonardis and Ruiz pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 4, 2014, for Ruiz and Sept. 9, 2014, for Aulisi and Leonardis.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
Defense counsel: Joseph Fusella Esq., Bloomfield, N.J.
Michael N. Pedicini Esq., Chatham, N.J.
Marc Agnifilo Esq., New York, N.Y.
U.S. Attorney's Office Announces Final Conviction Involving Kensington Towers Asbestos Project; NYS Department of Labor Official is the Ninth Defendant to be ConvictedRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today the final conviction relating to the four year investigation and prosecution involving the asbestos abatement project at Kensington Towers. The announcement came as the ninth defendant, former New York State Department of Labor inspector Theodore Lehmann, 67, of Tonawanda, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to violating the Clean Air Act involving the negligent endangerment of the public. The charge carries a maximum penalty of one year in prison, a fine of $100,000 or both.
“Today’s development brings to a close the prosecution of those responsible for endangering the public during the asbestos abatement project at the Kensington Towers,” said U.S. Attorney Hochul. “This prosecution revealed wrongdoing by those who contracted to perform the work correctly, both abatement and air monitoring employees. It showed further that public officials, ranging from City of Buffalo inspectors to a New York State official, also committed federal crimes. As shown once again by this prosecution, the Office will not permit those in either private employment or public service to endanger the health of the public.”
“Improper disposal of asbestos endangers human health and can seriously harm the environment," said Vernesa Jones-Allen, Special Agent in Charge of EPA’s Criminal Investigation Division in New York. "Government officials have a responsibility to protect those they serve. If they fail to do that, EPA will hold them accountable to protect the public's health and safety."
Assistant U. S. Attorneys Aaron J. Mango and Russell T. Ippolito, who are handling the case, stated that in June of 2009, Johnson Contracting was awarded a sub-contract to conduct the asbestos abatement project at Kensington Towers, a six-building complex owned by the Buffalo Municipal Housing Authority, located on the East side of Buffalo. In an environmental survey conducted before the commencement of the abatement project, it was estimated that each building at Kensington Towers contained in excess of 63,000 square feet of hazardous asbestos-containing material.
In January 2010, the New York State Department of Environmental Conservation received an anonymous telephone call indicating that friable asbestos was being mixed with non-friable asbestos in open containers at Kensington Towers. The caller further noted that work practice standards, designed to minimize the risk of asbestos becoming airborne during renovation and demolition activities, were not being followed. With demolition of the six Kensington Towers buildings imminent, the DEC partnered with Special Agents of the U.S. Environmental Protection Agency to investigate. That investigation revealed substantial quantities of asbestos containing materials still remained in all six buildings.
Had the Kensington Towers demolition occurred as scheduled, a significant amount of asbestos material would have been released into neighboring communities. The area immediately surrounding the Kensington Towers includes a residential area, two schools, multiple businesses and the Erie County Medical Center.
The defendant convicted today was employed by the New York State Department of Labor as an inspector. In this capacity, Lehmann was responsible for conducting periodic inspections to ensure compliance with state environmental regulations during the asbestos abatement project. During his inspections, the defendant negligently released asbestos into the air and negligently relied on previous inspections conducted by JMD Environmental Inc., and its employees, who were responsible for conducting air monitoring and testing at the site. JMD indicated all asbestos had been removed from the buildings when in fact a substantial quantity had been left in the building. The abatement work itself was to have been by Johnson Contracting of WNY, Inc. and its employees.
Defendant Lehmann is the ninth and final defendant to be convicted as part of the Kensington Towers asbestos abatement project. Also convicted:
• Johnson Contracting supervisors Ernest Johnson and Rai Johnson were convicted of violating Clean Air Act asbestos work practice standards;
• JMD project monitor and supervisor Evan Harnden was convicted of aiding and abetting a violation of the Clean Air Act asbestos work practice standards;
• JMD project monitors Chris Coseglia, Henry Hawkins and Brian Scott were convicted of being an accessory after the fact to a false statement under the Clean Air Act;
• City of Buffalo inspectors Donald Grzebielucha and William Manuszewski were convicted of a negligent endangerment charge under the Clean Air Act.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the Federal Bureau of Investigation; Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Christina Scaringi; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.
Theodore Lehmann will be sentenced on August 22, 2014, 2014 at 12:00 p.m. before Judge Arcara.U.S. Attorney Announces Take 25 Child Safety Event in PhoenixRead the Press Release
PHOENIX - The National Center for Missing and Exploited Children (NCMEC) created the Take 25 campaign to encourage families to take 25 minutes to talk to their children about safety and abduction prevention. NCMEC estimates that 800,000 children are reported missing in America every year, which is more than 2,000 children each day. Fortunately, most of these children are quickly located.
NCMEC has found that in 51% of attempted abduction cases, children escaped would-be abductors through their own actions. 32% of the children actively resisted (yelling, kicking, pulling away, running away, or attracting attention). Even more inspiring is that in 17% of these cases, a parent or another individual intervened to rescue the child. Teaching and reassuring children about safety - without scaring them - requires a delicate balance. Take 25 provides parents tools and age-appropriate suggestions for approaching the topic of safety with their children.
“The annual Take 25 national child safety campaign is particularly important this time of year, when children begin their summer breaks from school and have more time on their hands” said U.S. Attorney John S. Leonardo. “Especially in light of recent events arising from abductions, we encourage parents to take time and pledge to talk with their children about safety and abduction prevention. We hope that the tools and information provided at this year’s Take 25 events will assist families in keeping their children safe.”
Since 1983, May 25th has been observed as National Missing Children’s Day. In conjunction with observance of this year’s National Missing Children’s Day, the United States Attorney’s Office in partnership with our city, state, and federal agencies will offer a Take 25 child safety event. This year’s event will be held on Friday, May 30, 2014, at the Desert Ridge Marketplace in North Phoenix from 11:00 a.m. to 2:00 p.m. Digital child identification kits will be provided free of charge. This event is designed to help parents and others teach children to be alert to potential threats and provide steps that children can take to stay safe.
For more information on NCMEC, visit www.missingkids.com. For more information about the Take 25 campaign, visit www.Take25.org. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.
RELEASE NUMBER: 2014-29_Take_25_Phoenix
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Two Men Charged with Stealing Aluminum Carts from the Postal ServiceRead the Press Release
Scrap Value of Stolen Containers is Alleged to be Over $2.2 Million
Baltimore, Maryland - A federal grand jury has indicted Aaron Keith Howard, age 52, of Brooklyn, Maryland, and Roland Michael Muir, age 57, of Glen Burnie, Maryland, on charges of conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. The indictment was returned on May 6, 2014. Muir was arrested today. Howard was previously arrested, detained in federal custody and pleaded not guilty at his arraignment on May 9th.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Anne Arundel County Police Chief Kevin Davis.
"Theft of mail transport equipment is a serious crime," said Gary Barksdale, Inspector in Charge, U.S. Postal Inspection Service - Washington Division. "The Postal Service receives no tax dollars for operating expenses and cannot afford to replace valuable equipment to provide reliable customer service. Postal Inspectors are charged with protecting the U.S. Postal Service’s infrastructure and we will continue to aggressively pursue those who threaten the financial and operational health of America’s mail system."
The U.S. Postal Service used and stored mail transport equipment, including large aluminum carts known as over-the-road containers. Muir worked for a private mailer company located in Baltimore, driving a box truck.
According to the two count indictment and affidavit in support of the complaint, Howard and Muir drove in Muir’s employer’s box truck to U.S. Postal Service bulk mail centers in Capitol Heights where they stole the over-the-road containers and loaded them on the truck. Beginning in November 2013, Howard rented a 26 foot moving truck and drove it to the bulk mail centers in Capitol Heights where he stole the containers and loaded them onto the truck .
The indictment and affidavit allege that from April 2012 to April 2014, the defendants sold 1,765 containers containing 383,286 pounds of aluminum to metal recyclers in Maryland, including the Arundel Recycling Center in Anne Arundel County. They received $223,717 in cash. The defendants painted over U.S. Postal Service identifiers on the containers to avoid suspicion. The replacement value of the scrapped containers to the U.S. Postal Service is alleged to be over $2.2 million dollars.
The defendants face a maximum sentence of five years in prison for the conspiracy and 10 years in prison for the theft charge. An initial appearance has been scheduled for Muir at 4:15 p.m. today in U.S. District Court in Baltimore.
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 U.S. Postal Inspection Service - Washington Division and Anne Arundel County Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow, who is prosecuting the case.
Two Members of Genovese Crime Family Sentenced in Manhattan Federal Court for Loansharking in Commercial Carting SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that DOMINICK PIETRANICO and JOSEPH SARCINELLA were sentenced in Manhattan federal court in connection with their roles in a scheme to exert control over the commercial waste-hauling industry in the greater New York City metropolitan area and in parts of New Jersey. Each defendant previously pled guilty to one count of loansharking in connection with the scheme. PIETRANICO and SARCINELLA were each sentenced today to five months in prison by U.S. District Judge P. Kevin Castel.
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
PIETRANICO and SARCINELLA were participants in a scheme, along with other members and associates of three different Organized Crime Families of La Cosa Nostra (“LCN”) – the Genovese, Gambino, and Luchese Crime Families – to control various waste disposal businesses in the New York City metropolitan area and multiple counties in New Jersey. Members of the scheme engaged in various crimes including extortion, loansharking, mail and wire fraud, and stolen property offenses.
PIETRANICO and SARCINELLA, who are made members of the Genovese Crime Family, provided protection and “backing” to a cooperating Government witness who operated a waste disposal company, and made an extortionate loan at a rate of interest exceeding 100% annually.
In addition to the prison terms, PIETRANICO, 83, of Mahopac, New York, and SARCINELLA, 79, of Scarsdale, New York, were each also sentenced to one year of supervised release. Additionally, PIETRANICO was ordered to forfeit $9,340 and pay a $2,000 fine, and SARCINELLA was ordered to forfeit $10,540 and pay a $5,000 fine.
PIETRANICO and SARCINELLA were charged as part of a large investigation led by the United States Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation (“FBI”), and the Westchester County Police Department. To date, 32 defendants have been charged with participating in the scheme to exert control over the commercial waste-hauling industry. Twenty-one of these defendants have been convicted for their roles in this scheme.
Mr. Bharara praised the investigative work of the FBI and the Westchester County Police Department.
The prosecution of this case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Brian R. Blais and Patrick Egan are in charge of the prosecution. Assistant United States Attorney Micah Smith of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Two Forest Men Sentenced on Federal Drug ChargesRead the Press Release
Jackson, Miss – Charles Dewayne Loper, 37, and Shamal Anton Moss, 34, of Forest, Mississippi, were sentenced in U.S. District Court today in connection with an extensive narcotics investigation, dubbed “Operation Brusha”, targeting illegal narcotics distribution in Scott County, Mississippi, announced U.S. Attorney Gregory K. Davis.
Loper was sentenced to 100 months in federal prison followed by four years of supervised release and Moss was sentenced to 110 months in federal prison followed by four years of supervised release. Both defendants previously pled guilty to conspiracy to possess with intent to distribute more than 50 grams of methamphetamine.
“Operation Brusha” was conducted by the Bureau of Alcohol, Tobacco Firearms and Explosives, Homeland Security Investigations and Mississippi Bureau of Narcotics with assistance from the Mississippi Highway Patrol, Mississippi Bureau of Investigation, Forest Police Department, and Scott County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Erin O. Chalk.
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Two Charged in Fraud SchemeRead the Press Release
PITTSBURGH – Two Pittsburgh men have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and bank fraud, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on May 6 and unsealed today, named Eric Tyrone Bates, Jr., 27, and Herbert Butler, Jr., 27, as defendants.
According to the indictment, beginning in 2013, Bates and Butler conspired together to steal bank account information belonging to an account holder at Citizens Bank in Pittsburgh, information they used to create accounts at other banks which they controlled to make multiple withdrawals of cash. Bates is also charged separately for bank fraud in connection with another unauthorized access of a Citizens Bank account and subsequent withdrawals from the account. Some of the funds were used to buy automobiles.
The law provides for a maximum total sentence of not more than 35 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the indictment of Bates and Butler. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
An indictment is an accusation. The defendants are presumed innocent unless and until proven guilty.
Top “Silk Road” Distributor of Drugs and Bitcoins Charged in TampaRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the filing of an information charging Angel William Quinones (34, Largo) with conspiracy to import MDMA, a/k/a Ecstasy or “Molly,” into the United States. A plea agreement was also filed in United States District Court in Tampa. Quinones faces a maximum penalty of 20 years in federal prison.
According to the plea agreement, from at least August 2012 through October 2013, Quinones used the underground website known as “Silk Road” as part of a conspiracy to import at least 9,193 grams of MDMA into the Middle District of Florida, for further distribution in the United States. From January 2011, until it was shut down by law enforcement in October 2013, Silk Road was dedicated to the sale of illegal drugs and other illicit, black market goods and services using the digital currency Bitcoin. The website was also designed to facilitate illegal commerce by ensuring anonymity among its users. Quinones was one of the largest wholesale re-distributors of illegal drugs from Silk Road in the United States.
Operating out of Largo, Florida, Quinones used the usernames “UnderGroundSyndicate” and “BTCmaster” to advertise, market, and sell illegal drugs on Silk Road. In operating the UnderGroundSyndicate and BTCmaster accounts, he obtained his MDMA principally from a Dutch supplier named Cornelis Jan Slomp (22). Slomp’s Silk Road username was “SuperTrips”. According to records obtained from the Silk Road servers, Slomp was the number one distributor of controlled substances, by sales, on the website. On April 24, 2014, the United States Attorney’s Office for the Northern District of Illinois announced that Slomp had been charged with conspiracy to distribute various controlled substances through Silk Road, including approximately 104 kilograms of MDMA, 566,000 ecstasy pills containing MDMA, four kilograms of cocaine, three kilograms of Benzodiazepine, and substantial quantities of amphetamine, LSD, and marijuana. Slomp pleaded guilty on May 8, 2014.
Quinones used the “UnderGroundSyndicate” and “BTCmaster” accounts to communicate with Slomp. In August 2012, Quinones entered into an arrangement with Slomp, whereby Slomp would provide him with wholesale quantities of MDMA on credit. Quinones, in turn, would sell the substances to his own customers via Silk Road and then split the proceeds with Slomp. Thereafter, Slomp shipped the MDMA into the Tampa area. After obtaining the MDMA, Quinones distributed the MDMA to customers throughout the United States. Quinones obtained several Post Office boxes in Pinellas County, which he used to ship and receive MDMA and proceeds. Slomp also provided Quinones with his unique logon information to the SuperTrips account and paid him to review and reply to messages sent to Slomp by customers on Silk Road.
Additionally, Slomp sent Quinones Bitcoins generated from Silk Road drug transactions to be converted into cash. Slomp also agreed that Quinones would hold on to a portion of the proceeds that Quinones had generated for Slomp, until Slomp was ready to retrieve them. In August 2013, Slomp was arrested after traveling from the Netherlands, to Miami, in order to meet with Quinones and transfer Slomp’s United States-based Silk Road operations, including his United States customers, to Quinones.
On October 2, 2013, with assistance from agencies in Chicago, federal agents executed a search warrant at Quinones’ home in Largo. During the search, agents found approximately $157,580 in cash, documents and keys associated with Post Office boxes used by the UnderGroundSyndicate and BTCmaster accounts, and various electronic media. Forensic analysis of that electronic media later uncovered spreadsheets and other documents authored by Quinones, which were associated with the UnderGroundSyndicate and BTCmaster accounts, including Silk Road customer orders and tracking information for parcels containing MDMA and drug proceeds.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the United States Postal Inspection Service, and the Office of the United States Attorney for the Northern District of Illinois. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.
Tampa Man Pleads Guilty to Credit Card Fraud and Identity Theft ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Noel Perez Partagas (21, Tampa) today pleaded guilty to two counts of access device (credit card) fraud and one count of aggravated identity theft. Partagas faces a maximum penalty of 10 years in federal prison for each of the credit card fraud offenses and 2 consecutive years’ imprisonment on the identity theft charge.
According to the plea agreement, Partagas obtained stolen credit and debit account numbers, which he used to create and/or purchase counterfeit or cloned credit cards. The true owners of the credit and debit accounts remained in possession of the cards and did not know to report them stolen. Partagas used the cards to purchase large quantities of fuel and tires, among other things, that could later be sold for cash.
Partagas had previously been arrested in July 2013, when he purchased approximately $100 worth of diesel fuel using a fraudulent credit card at a Murphy Gas location in Polk County. At the time, he was driving a pick-up truck with a large custom “bladder tank” in the truck’s bed that was used to hold large quantities of fuel. Partagas was also in possession of 69 credit cards and 20 gift cards, most which had been re-encoded. In early May 2013, Partagas also used fraudulent credit cards to purchase nearly $42,000 worth of tires from two tire retailers in the Lakeland area. The credit card companies suffered losses of over $65,000, with potential losses totaling nearly $350,000.
This case was investigated by the United States Secret Service, Polk County Sheriff’s Office, Tampa Police Department and Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
St. Francis Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on May 12, 2014, by U.S. District Judge Roberto A. Lange.
Fabian McCloskey, age 39, was sentenced to 37 months in custody, 2 years of supervised release, and $100 to the Federal Crime Victims Fund.
McCloskey was indicted by a federal grand jury on December 10, 2013. He pled guilty on February 11, 2014.
The conviction stems from an incident on November 29, 2013, when McCloskey was at a family member’s home where the victim and her children were staying during the Thanksgiving holiday. McCloskey asked the victim to sit with him in another room. When she refused, he struck her several times in the face, then pulled the victim toward him by her hair, and drove his knee toward the victim’s head, striking her several times. As a result, the victim suffered minor injuries to her face, including several welts to her forehead and cuts to her lips and the inside of her mouth.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
McCloskey was immediately turned over to the custody of the U.S. Marshals Service.
South Carolina State Former Counsel Pleads Guilty in Connection with Kickback SchemeRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Charleston, South Carolina ----- The United States Attorney’s Office announced today that Edwin Donald Givens, age 50, of Columbia, South Carolina, pled guilty to an Information (copy attached) charging him with misprision of a felony in connection with a kickback scheme related to the 2011 South Carolina State University homecoming concert, in violation of Title 18, United States Code, Section 4.
United States District Judge David C. Norton of Charleston accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the plea hearing established that GIVENS had actual knowledge of the commission of a federal felony offense involving the solicitation, receipt and payment of kickbacks by others involved with the concert, and that he failed to disclose such knowledge and took affirmative steps to conceal such information from federal law enforcement agents investigating the scheme, both prior to and during a November 14, 2011, interview with agents of the Federal Bureau of Investigation.
The maximum penalty GIVENS can receive is three (3) years imprisonment and a $250,000 fine, plus a special assessment of $100.
The case was investigated by agents of the Federal Bureau of Investigation (FBI), the South Carolina Law Enforcement Division (SLED), the Department of Housing and Urban Development (HUD), the Office of Inspector General (HUD-OIG), and the Internal Revenue Service (IRS-CI). This case and its companion cases are being prosecuted by Assistant United States Attorneys Nancy C. Wicker, Jane B. Taylor, DeWayne Pearson and J.D. Rowell.
PDF - Givens InformationSibling Sentenced to 4 Months in Jail for Theft of Sister's Welfare BenefitsRead the Press Release
PORTLAND, Ore. – A Portland woman was sentenced to four months in jail for stealing more than $10,000 in benefits intended for her disabled sister. Killda I. Boutros, 46, appeared in federal court for sentencing last week after previously pleading guilty to Social Security fraud in November.
According to court records and Boutros’ admissions in court, Boutros became her sister’s Representative Payee in September 2006, which enabled her to receive her sister’s Supplemental Security Income (SSI), a needs-based benefit administered by the Social Security Administration (SSA). As the Representative Payee, Boutros was required to report to SSA if her sister left the United States for more than 30 days. While her sister and other family members were outside the United States for months at a time, Boutros failed to report to SSA as she repeatedly withdrew the benefits. The government also showed the court documents seized from the Boutros family residence that included receipts for restaurant meals, groceries, utilities, and rent that were intended to be used by Boutros as proof of her sister’s expenses. In fact, the receipts were for time periods that her sister was outside the United States, indicating Boutros saved receipts of her own expenses to deceive SSA.
Citing the nature and circumstances of the offense, including the fact that Boutros committed the offense within months of becoming a naturalized U.S. citizen, U.S. District Judge Michael Simon sentenced Boutros to four months in custody, despite her lack of criminal history and her assurances that she would not re-offend. She was further ordered to pay $142,337.10 in restitution to SSA and the U.S. Department of Health and Human Services for SSI and Medicaid benefits fraudulently obtained by other family members. Judge Simon also advised Boutros that the jail sentence should send a message of “general deterrence” to the public.
Boutros was ordered to begin her jail sentence on June 19, 2014. Boutros’ brother, Jason, was sentenced to six months in jail in March, and will begin serving his sentence May 19, 2014. Two family members also charged in the indictment remain fugitives.
This case was investigated by agents for the Medicaid Fraud Unit, the Department of Health and Human Services, and the Social Security Administration, Office of Inspector General. The case was prosecuted by Special Assistant United States Attorney Helen L. Cooper as part of a partnership venture between the U.S. Attorney’s Office in Portland, Oregon, and the Seattle Region of the Social Security Administration, Office of the General Counsel.
Santa Fe Man Pleads Guilty to Federal Crack Cocaine and Firearms ChargesRead the Press Release
ALBUQUERQUE – Robert Romero, 26, of Santa Fe, N.M., pleaded guilty today to federal narcotics trafficking and firearms charges. Under the terms of his plea agreement, Romero will be sentenced to ten years in federal prison followed by four years of supervised release.
Romero was one of five men who were indicted in April 2013, on federal narcotics and firearms charges as the result of “Operation Rio Grande Stucco,” a DEA led investigation into an organization that allegedly manufactured and distributed cocaine base, more commonly known as “crack” or “crack cocaine,” in Santa Fe and Bernalillo Counties, N.M.
The five-count indictment charged Romero and his co-defendants, Gabriel Mirabal, 32, Dominic Anaya, 33, and Sam Elyicio, 37, of Albuquerque, and Michael Jaramillo, 24, of Santa Fe, with conspiring to distribute cocaine base in Bernalillo and Santa Fe Counties between May 2012 and April 2013. Jaramillo also was charged with distributing crack cocaine in Santa Fe in March 2012 and Romero was charged with possession of crack cocaine with intent to distribute in Santa Fe in July 2012. Romero also was charged with using and carrying a firearm in furtherance of a drug trafficking crime. Mirabal also was charged with possessing cocaine with intent to distribute in Albuquerque in Feb. 2013. Mirabal, Jaramillo and Elyicio were arrested in April 2013, while Romero and Anaya were transferred from state custody to federal custody in July 2013.
Today Romero pled guilty to Counts 1, 3 and 4 of the indictment charging him with conspiracy to distribute crack cocaine, possession of crack cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, respectively. According to the plea agreement, Romero conspired with his co-defendants to distribute more than 280 grams of crack cocaine. On July 2012, Romero was stopped by law enforcement officers who found 11.1 grams of crack cocaine in Romero’s vehicle, which was packaged for resale, and a handgun Romero used for protection while distributing drugs. Romero remains in federal custody pending his sentencing hearing which has yet to be scheduled.
Co-defendant Jaramillo entered a guilty plea on March 21, 2014, to Count 1 of the indictment charging him with conspiracy to distribute crack cocaine. According to his plea agreement, Jaramillo purchased crack cocaine from co-defendants Mirabal and Anaya and then resold it others. Under the terms of his plea agreement, Jaramillo will be sentenced to 78 months in federal prison followed by four years of supervised release. He remains in custody pending his sentencing hearing.
Mirabal, Anaya and Elyicio have entered not guilty pleas to the indictment. If convicted of the drug trafficking charges against them, each faces a maximum penalty of not less than five years or more than 40 years in prison. They remain in custody pending trial. An indictment is merely an accusation, and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region III Drug Task Force, with assistance from the 1st Judicial District Attorney’s Office for the State of New Mexico, and is being prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei.
The Region III Drug Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and the Santa Fe County Sheriff’s Office and receives support from the HIDTA – High Intensity Drug Trafficking Area – program. HIDTA is a program of the White House Office of National Drug Control Policy that provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States.
The investigation leading to the indictment, has been designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Ridgeview Man Sentenced for Possession of A Firearm by A Prohibited PersonRead the Press Release
United States Attorney Brendan V. Johnson announced that a Ridgeview, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on May 12, 2014, by U.S. District Judge Roberto A. Lange.
Gary Big Eagle, age 50, was sentenced to 10 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Big Eagle was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury on September 17, 2013. He pled guilty to the Indictment on February 11, 2014.
The conviction stems from an incident that took place on May 23, 2013, when a Cheyenne River Sioux Tribe Police Officer responded to a call. The officer entered the residence from where the call originated and was told that Big Eagle, who had been staying at the residence, was a convicted felon who had taken a rifle from the owner and refused to give it back. The officers found a rifle in the room where Big Eagle was staying. Big Eagle admitted he had been previously convicted of a felony and that he had not applied to be able to legally possess a firearm. He further acknowledged that the rifle in the room belonged to his mother, and that he used it to shoot skunks and snakes around the property.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Jay Miller.
Big Eagle was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Rapper Gucci Mane Pleads Guilty to Federal Firearms CrimeRead the Press Release
ATLANTA - Radric Davis, a/k/a Gucci Mane, who is a previously convicted felon, has pleaded guilty to illegally possessing a gun.
“Davis has a long history of violence and of illegally possessing and using guns," said United States Attorney Sally Quillian Yates. “This Office will prosecute those who illegally possess firearms, especially when, as Davis did, they have a history of violence and threaten others with firearms. Our priority is to take violent repeat offenders off our streets to build safer communities.”
“The criminal history of the defendant, Radric Davis shows a complete and utter disregard for the lives of others as well as for their personal pursuits,” said ATF Acting Special Agent in Charge Aladino Ortiz. “As an agency and unified law enforcement community, we will not tolerate armed violent felons continually terrorizing and reducing the quality of life in the neighborhoods where we live, work, and play.”
“The Atlanta Police Department is constantly working to prevent and solve crime in the City of Atlanta. The arrest and conviction of Mr. Radric Davis ensures that we are one step closer to making Atlanta the safest big city in the nation. Our partnership with the U.S. Attorney’s Office is the best example of how we all work together to keep criminals in prison and off our streets”, said Atlanta Police Chief George N. Turner.
According to United States Attorney Yates, the charges and other information presented in court: On Sept. 14, 2013, the Atlanta Police Department received a call from a concerned citizen, who told police that Davis was acting violent and had a handgun. Police found the defendant on the street, smelling strongly of marijuana, with a Glock, 40 cal. handgun loaded with 11 rounds of ammunition in his possession. When police arrived, Davis was waving the handgun and making threatening comments.
As part of the plea agreement, the district court, upon accepting the plea, will sentence Davis, 34, of Atlanta, Ga. to serve 39-months in a federal prison for his crime. Sentencing has been set for July 28, 2014, at 11:30 a.m., before United States District Court Judge Steve C. Jones.
This case is being investigated by the Atlanta Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.Assistant United States Attorney Kim S. Dammers 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/.
Prince George’s County Developer Daniel Colton Sentenced to Prison in Extortion SchemeRead the Press Release
Last of 17 Defendants to be Sentenced in Broad Extortion Scheme that Arose from a Pay-to-Play Culture in Prince George’s County
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Prince George’s developer Daniel Ira Colton, age 64, a resident of Annapolis, Maryland and Raleigh, North Carolina, today to two years in prison followed by three years of supervised release for conspiracy to commit extortion and to make false statements to the Federal Election Commission. Judge Messitte also entered an order that Colton pay a $50,000 fine.
The sentence was 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; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to court documents, in early 2006, FBI and IRS-CI agents began investigating allegations of corruption, campaign finance violations, and tax fraud related to several real estate developers in Maryland and their relationships with Prince George’s County officials. The investigation uncovered a far-reaching corruption scheme centered around a “pay to play” culture in the county, orchestrated by then County Executive Jack Johnson and other public officials, in which real estate developers, including Colton, and business owners provided things of value to public officials and their surrogates in return for official acts.
Colton was a prominent developer in Prince George’s County. Colton and other co-conspirators, including developer Patrick Ricker and retired Prince George’s County Fire Department official Karl Granzow, had an ownership interest in Greenbelt Metropark, which sought to design, develop and build a mixed-use project near the Greenbelt Metro Station, called Greenbelt Station. Colton, Ricker and their co-conspirators also had an interest in Day Homes, which was incorporated to construct single family homes in Maryland, and was involved in several development projects in the county.
According to Colton’s guilty plea and court documents, from 1997 through at least September 11, 2008, Colton, Ricker, Granzow and other business persons offered money, trip expenses, meals, drinks, hotel rooms, airline tickets, rounds of golf, employment, mortgage payments, and monetary and in-kind campaign contributions to state and local government officials, including former Director of Prince George’s County Department of Housing and Community Development James Edward Johnson. During much of the conspiracy, from 2001 through 2004, Colton was serving a 38 month federal sentence arising from his convictions in federal court in Greenbelt for conspiracy and bank fraud, related to several development projects in Maryland and a loss to the victim bank of $15 million to $20 million.
In exchange for the bribes, state and local officials performed and agreed to perform favorable official actions for Colton, Ricker, Granzow and other developers, business owners and their companies, including obtaining approval letters for the Greenbelt Station Detailed Site Plan; assisting in the acquisition of surplus property and land from the county for development by Day Homes; providing the conspirators with non-public county information; obtaining necessary state and local approvals and permits for Greenbelt Station and other developments and businesses in the county; voting in favor of legislation favorable to their development projects; and, ensuring that a certain developer would obtain a contract to purchase certain buildings for the county.
State and local officials concealed items they received from Colton and his co-conspirators by failing to report them or by misrepresenting their nature and value. Further, Colton and his co-conspirators concealed campaign contributions to the state and local officials that were above state and federal legal limits by using conduits and in-kind contributions. Specifically, Colton and his co-conspirators recruited “straw donors,” including family members and employees, to make state and federal campaign contributions with funds provided by or reimbursed by Colton and his co-conspirators. Colton and his co-conspirators also provided in-kind contributions to conceal the actual amount of their campaign contributions, such as campaign signs, food, alcohol and the administrative services of their employees and family members.
During the scheme, Colton, Ricker, Granzow and others conspired to provide between $400,000 and $1 million in bribes to public officials in return for official action. Colton pleaded guilty under seal to the charges on September 13, 2010.
James Edward Johnson, age 69, of Temple Hills, Maryland, pleaded guilty to conspiring to commit extortion and was sentenced on April 16, 2012 to 37 months in prison. Judge Messitte also entered an order requiring James Johnson to pay a fine of $25,000 and to forfeit $46,300 that was seized from his safe deposit box.
Patrick Q. Ricker, age 55, of Bowie, Maryland, pleaded guilty on December 30, 2009 to conspiring to commit honest services fraud and to make false statements to the Federal Election Commission; and to tax evasion. His plea was also entered under seal and was unsealed on May 17, 2011. Judge Messitte sentenced Ricker on November 16, 2012 to one year and a day in prison, and also entered an order that Ricker pay restitution of $250,000.
Karl Granzow, age 49, of Upper Marlboro, Maryland, previously pleaded guilty to conspiring to commit extortion and cause false statements to be filed with the Federal Election Commission, and to income tax evasion. Judge Messitte sentenced Granzow on October 3, 2012 to 18 months in prison, and entered an order that Granzow pay a fine of $10,000 and forfeit his financial interest in Greenbelt Metropark.
A total of 17 defendants have been convicted in the related investigations of corruption in Prince George’s County, including Jack Johnson, then County Executive and former State’s Attorney; Leslie Johnson, an elected County Councilwoman and Jack Johnson’s wife; Mirza Hussain Baig, a physician and developer in the County; Amrik Singh Melhi, an owner of numerous businesses in the County; and, Ravinder Melhi, an owner of numerous businesses in the county. These individuals also pleaded guilty to extortion, bribery, state and federal campaign finance violations, and fraud, which all evolved from the pay-to-play culture in the county. They have been sentenced to up to 87 months in prison (Jack Johnson).
United States Attorney Rod J. Rosenstein praised the FBI and IRS-CI for their work in the investigation and thanked the Prince George’s County Police Department for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys James A. Crowell IV, A. David Copperthite and Sujit Raman, who prosecuted these cases.
Possession of Multiple Counterfeit Credit Cards Leads to Federal IndictmentRead the Press Release
McALLEN, Texas – A federal grand jury in McAllen has indicted Alfredo Alejandro Alvarez-Mendicuti, 35, of Mexico, for possessing 31 counterfeit credit cards with the intent to defraud, announced U.S. Attorney Kenneth Magidson.
According to the criminal complaint originally filed in the case, Alvarez-Mendicuti was arrested on April 25, 2014, at the Anzalduas Port of Entry after the 31 cards were found hidden in his waist and leg areas. He was allegedly attempting to enter the U.S. from Mexico with a revoked passport, according to the charges. He allegedly intended to use the fake cards to shop in McAllen.He made his initial appearance on April 28, 2014, before U.S. Magistrate Judge Peter E. Ormsby who ordered him to remain in custody pending further criminal proceedings.
If convicted, Alvarez faces up to 10 years in federal prison without parole and a fine of up to $250,000.
This case is being investigated by the Secret Service. Assistant U.S. Attorney Christopher Sully is prosecuting the case.
Philadelphia Man Indicted on Gun ChargesRead the Press Release
An indictment was unsealed today charging Joshua Moses, a/k/a “Roy R. Moses,” 32, of Philadelphia, Pennsylvania, with two counts of convicted felon in possession of firearm, announced United States Attorney Zane D. Memeger.
If convicted, defendant faces a maximum of 20 years in prison, three years of supervised release, and a $500,000 fine.
This case is part of Project Safe Neighborhoods, a federal initiative designed to identify and prosecute firearms offenders in federal court, where the defendant is likely to receive a substantial sentence upon conviction.
This case was investigated by the Bureau of Alcohol, Tobacco & Firearms and is being prosecuted by Assistant United States Attorney Ewald Zittlau.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pasco Man Sentenced to 20 Years in Federal Prison for Production of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Alton V. Morehead, age 36, of Pasco, Washington, was sentenced today for Production of Child Pornography. Senior United States District Court Judge Edward F. Shea sentenced Morehead to a twenty year term of imprisonment, to be followed by a 25 year term of court supervision after he is released from Federal prison. Morehead will also be required to register as a sex offender.
According to information disclosed during the court proceedings, in May 2012, a Special Agent with Homeland Security Investigations (HSI) accessed a photo hosting website and found a profile with an associated e-mail address that contained multiple risqué photos of children. HSI commenced investigation and obtained further information about the associated e-mail account, determining the account holder was Alton V. Morehead of Pasco, Washington.
On May 23, 2013, HSI Special Agents obtained a search warrant for Morehead's e-mail account. Agents discovered child pornography which Morehead had received over the internet. Additional e-mail accounts were subsequently identified as being utilized by Morehead. The e-mail accounts were used both for receipt of child pornography and distribution of child pornography produced by Morehead of several minors left in his care. Special Agents interviewed Morehead, who admitted his criminal conduct.
Michael C. Ormsby stated, "Prosecuting those who produce and distribute pornographic images of vulnerable minors is a priority of the United States Attorney's Office for the Eastern District of Washington. This Office dedicates significant resources to prosecuting such cases and seeks appropriate punishment."
"This is another example of what we see all too often, a trader of child pornography himself exploiting children to produce illicit images," said Brad Bench, Special Agent in Charge of HSI Seattle. "Every day, HSI Special Agents pursue individuals who prey on children for their self-gratification. This significant sentence comes as a result of such an investigation."
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
This investigation was conducted by Homeland Security Investigations. The case was prosecuted by Alison L. Gregoire, an Assistant United States Attorney for the Eastern District of Washington.
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Pasco Man Sentenced for Heroin TraffickingRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Arnulfo Gomez Tejeda, age 39, of Pasco, Washington, was sentenced today after having previously pleaded guilty on September 12, 2013, to possession with intent to distribute heroin. Senior United States District Court Judge Edward F. Shea sentenced Tejeda to an 18 year term of imprisonment, to be followed by a 10 year term of court supervision upon release from prison.
According to information disclosed during the court proceedings, in December of 2012, Special Agents with the Drug Enforcement Administration and officers with the Tri-City Metro Drug Task Force made multiple purchases of controlled substances from Tejeda. On January 4, 2013, law enforcement officers executed search warrants on Tejeda's vehicles and at his residence in Pasco, Washington. The officers discovered methamphetamine, heroin, cocaine, and a marijuana growing operation, as well as multiple firearms. Tejeda has multiple felony convictions.
Michael C. Ormsby said, "This prosecution was made possible because of the strong partnership among the Tri-City Metro Drug Task Force, the Drug Enforcement Administration, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The cross-designation of the Task Force officers working within the Drug Enforcement Administration facilitated the federal prosecution of this case. The United States Attorney's Office for the Eastern District of Washington is committed to prosecuting and seeking just punishment for those who distribute drugs in our communities."
This case was investigated by the cooperative efforts of the Tri-City Metro Drug Task Force, Drug Enforcement Administration, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Alison L. Gregoire, an Assistant United States Attorney for the Eastern District of Washington.
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Palm Bay Man Sentenced to over 8 Years for Distributing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Keith William Davey, Jr. (28, Palm Bay) to 8 years and one month in federal prison for distributing child pornography. Davey is also required to register as a sex offender and to serve a 5-year term of supervision, following his release from prison. The court also ordered Davey to forfeit his computer equipment.
Davey pleaded guilty on February 11, 2014.
According to court documents, in November 2013, an undercover agent working in Portland, Maine initiated contact with Davey over the Internet. Davey believed that the agent was interested in child pornography and discussed trading images with the agent. On November 6, 2013, and again on November 8, 2013, Davey used the Yahoo Messenger photo sharing feature to send the agent images of child pornography, including images of prepubescent female children being sexually abused and exploited by adult males. Davey used his Yahoo Messenger screen name to transmit the images. Law enforcement agents executed a search at Davey’s Palm Bay residence, and during an interview, Davey admitted to sending the child pornography to the undercover agent and that he had obtained child pornography from the Internet. Agents also recovered Davey’s desktop computer and his SD card from his residence. These devices contained additional images of child pornography, including some of the images that Davey had distributed to the undercover agent.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with assistance from the Brevard County Sheriff's Office. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Oxford Resident Charged with Running Ponzi SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that ROBERT E. LEE, JR., 50, of Oxford, was arrested yesterday on a federal criminal complaint charging him with defrauding multiple investors via a Ponzi scheme.
As alleged in the criminal complaint, LEE was employed as a broker and financial advisor for various financial investment firms until July 2013 when he was terminated by his most recent employer, Rockwell Global Capital, LLC. Between January 2011 and March 2014, LEE defrauded individuals by claiming that he was investing their money in various investment vehicles when, in fact, he was maintaining custody of their funds in his personal bank account. He then used the money to make distributions to other investors, and for personal expenses. To conceal the scheme, LEE fabricated account statements and other documents, which he delivered to his victims. Victims lost several million dollars as a result of this scheme.
LEE was arrested yesterday at his residence. He then appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and was released on $250,000 bond.
The criminal complaint charges LEE with wire fraud, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
Citizens with information that may be helpful to this ongoing investigation are encouraged to contact the FBI at (203) 777-6311.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New York Man Admits Role in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A New York man today admitted his role in one of the largest credit card fraud schemes ever charged by the Justice Department, U.S. Attorney Paul J. Fishman announced.
Khawaja Ikram, 41, of Staten Island, N.Y., pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to commit bank fraud. Two co-defendants, Tarsem Lal, 73, of Iselin, N.J., and Azhar Ikram, 40, of Howard Beach, N.Y., pleaded guilty before Judge Thompson in Trenton on April 2, 2014, to informations charging them with conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:Khawaja Ikram was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; and finally, run up large loans.
The scope of the criminal fraud enterprise required Ikram and his conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Ikram admitted he helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted he knew the cards would be used fraudulently at businesses.
The charge to which Ikram pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Sept. 23, 2014. Azhar Ikram and Lal are scheduled to be sentenced Sept. 17, 2014, U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford; postal inspectors, under the direction of Postal Inspector in Charge Maria L. Kelokates; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, for the investigation leading to today’s guilty plea. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit in Newark.This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Neil G. Duffy III Esq., Union, N.J.Ikram, Khawaja Information
Morgantown Resident Convicted on Tax Evasion ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Mitch BROZIK, a 52-year old Morgantown, West Virginia, resident appeared in United States District Court before Magistrate Judge John S. Kaull and entered a plea of guilty to “Obstructing and Impeding the Administration of the Internal Revenue Service.” Between 2005 and 2010, BROZIK concealed a corporate bank account that he used for personal expenses, providing inaccurate tax information to his personal accountants. BROZIK also made false statements to IRS Special Agents about the accuracy of his personal tax returns, his knowledge of personal expenses charged to corporate credit cards, and the existence of a corporate bank account that was not included in corporate records. BROZIK, who is free on bond, faces up to 3 years in prison.
This case was prosecuted by Assistant U.S. Attorney Andrew R. Cogar and investigated by the Internal Revenue Service-Criminal Investigations.
Mexican National Sentenced for Meth, Illegally Entering U.S.Read the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was sentenced in federal court today for possessing methamphetamine that she intended to distribute in Morgan County, Mo., and for illegally reentering the United States.
Maria Teresa Marrufo, 48, a citizen of Mexico residing in Gardner, Kan., was sentenced by U.S. District Judge Fernando J. Gaitan to 10 years in federal prison without parole.
On Aug. 19, 2013, Marrufo pleaded guilty to possessing methamphetamine with the intent to distribute and to illegally reentering the United States after having been deported.
According to court documents, Marrufo was arrested in Morgan County while delivering 224 grams of pure methamphetamine. Her 16-year-old son was driving the car, and Maruffo, the passenger, provided an alias when confronted by officers.
At the time she committed this offense, Maruffo was still on supervised release for a prior drug offense. Maruffo was convicted of two drug-trafficking felonies for attempting to smuggle marijuana into the United States. After being charged and released, Maruffo absconded and remained a fugitive from justice for 12 years. She was deported in 2012, but illegally reentered the United States and resumed her illegal drug-trafficking activities.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Morgan County, Mo., Sheriff’s Department and the Mid-Missouri Drug Task Force.
Metro Station Armed Carjacker Sentenced to over 17 Years in PrisonRead the Press Release
Carjacking Victim Shot and Seriously Injured
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Samuel Damien Bynum, age 24, of Washington, D.C., today to 207 months in prison, followed by five years of supervised release, for conspiring to use a gun during carjackings, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; and Maryland Attorney General Douglas F. Gansler.
“Through coordinated efforts of local, state and federal law enforcement agencies, a gang of dangerous carjackers has been put out of business,” said U.S. Attorney Rod J. Rosenstein.
According to his plea agreement, beginning in January 2011, Bynum conspired with others to commit armed carjackings in Prince George’s and Montgomery Counties. On May 25, 2011, Bynum and co-conspirators drove to the Largo Metro Station in Largo, Maryland in a car they had stolen during a carjacking at the New Carrollton Metro Station a few days earlier. Bynum saw two people park their Camaro in the garage and followed them into the stairwell. Bynum told law enforcement that he blocked the stairwell so that his co-conspirators, who were armed with handguns, could rob the victims. Bynum or a conspirator hit one of the victims with a handgun, but they were unable to steal the victim’s car keys. Bynum and his conspirators fled, but returned a short time later to steal the Camaro after finding the keys to the car during their flight. Upon returning to the area, a co-conspirator gave Bynum one of the handguns and told Bynum to start shooting if the victims did anything. As one of the victims attempted to get into the car, Bynum and his conspirators shot several times at both victims. One of the victims was struck by a bullet and suffered permanent bodily injury requiring significant and ongoing medical attention.
Two alleged co-conspirators are being prosecuted federally and another was prosecuted in state court.
Bynum had previously purchased the handgun he used in the carjacking. Bynum had previously been convicted of a felony and was prohibited from possessing a gun and ammunition.
United States Attorney Rod J. Rosenstein commended the FBI, the Prince George’s and Montgomery Counties Police Departments and State’s Attorney’s Offices, and Maryland Attorney General’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.Member of Cherry Hill Group ‘Little Spelman’ Pleads Guilty to Racketeering Conspiracy, Including MurderRead the Press Release
Murdered a Drug Rival and Helped a Conspirator Murder a Rival Drug Gang Member
Baltimore, Maryland – Dontay Purnell, age 27, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise, related to his drug dealing and violence in the Cherry Hill section of Baltimore.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”
According to his plea agreement, from at least 2003 to 2013, Purnell was a member of a group known as “Little Spelman” in the “down the hill” area of Cherry Hill. This group committed robberies, homicides, non-fatal shootings and distributed crack cocaine, heroin, cocaine and marijuana. As a member of this group, it was foreseeable to Purnell that the Little Spelman group was responsible for distributing at least a kilogram of heroin, five kilograms or more of cocaine, 280 grams or more of cocaine base and a quantity of marijuana.In addition to selling drugs, Purnell was recruited to shoot and kill a drug rival, Vincent Paige, in order to expand the group’s drug territory. On April 20, 2006, Purnell approached Paige on the 3400 block of Spelman Road in Cherry Hill and told him he could no longer sell drugs there. Paige said he would be back and Purnell saw him go to a stash location where Paige stored drugs and weapons. Purnell approached Paige and shot him three times, killing Paige.
On April 9, 2011, Little Spelman group member Davon Martin shot and killed Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore. Dwight Taylor was a member of a rival drug group operating in Cherry Hill known as “Up Da Hill.” His murder was in retaliation for a previous murder of another Little Spelman group member. Purnell assisted Martin by serving as the lookout, standing on the corner of Park Avenue and Saratoga Street, while Martin murdered Taylor inside the barbershop. Purnell also helped Martin flee the scene and dispose of some of Martin’s clothes.
Purnell faces a maximum sentence of life in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for August 8, 2014, at 9:00 a.m.
Davon Martin, age 25, of Baltimore, Maryland pleaded guilty on April 24, 2014 to his participation in the racketeering conspiracy, including two murders. Martin and the government have agreed that if the Court accepts the plea agreement he will be sentenced to between 30 and 35 years in prison. Judge Russell has scheduled Martin’s sentencing for July 18, 2014 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Brooke Carey, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Medicare Fraud Strike Force Charges 90 Individuals for Approximately $260 Million in False BillingRead the Press Release
Attorney General Eric Holder and Department of Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that a nationwide takedown by Medicare Fraud Strike Force operations in six cities has resulted in charges against 90 individuals, including 27 doctors, nurses and other medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $260 million in false billings.
Attorney General Holder and Secretary Sebelius were joined in the announcement by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, FBI Assistant Director Joseph Campbell, U.S. Department of Health and Human Services (HHS) Inspector General Daniel R. Levinson and Deputy Administrator and Director of the Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity Shantanu Agrawal.
This coordinated takedown is the seventh national Medicare fraud takedown in Strike Force history. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since their inception in March 2007, Strike Force operations in nine locations have charged almost 1,900 defendants who collectively have falsely billed the Medicare program for almost $6 billion. In addition, CMS, working in conjunction with HHS-OIG, has suspended enrollments of high-risk providers in five Strike force locations and has removed over 17,000 providers from the Medicare program since 2011.
The joint Department of Justice and HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and local investigators designed to combat Medicare fraud through the use of Medicare data analysis techniques and an increased focus on community policing. Almost 400 law enforcement agents from the FBI, HHS-OIG, multiple Medicaid Fraud Control Units and other federal, state and local law enforcement agencies participated in the takedown.
“Medicare is a sacred compact with our nation’s seniors, and to protect it, we must remain aggressive in combating fraud,” said Attorney General Holder. “This nationwide Medicare Strike Force takedown represents another important step forward in our ongoing fight to safeguard taxpayer resources and to ensure the integrity of essential health care programs. Department of Justice will not tolerate these activities. And we will continue working alongside the Department of Health and Human Services – as well as federal, state, and local partners – to use every appropriate tool and available resource to find, stop, and punish those who seek to take advantage of their fellow citizens.”
“The Affordable Care Act has given us additional tools to preserve Medicare and protect the tens of millions of Americans who rely on it each day,” said Secretary Sebelius. “By expanding our authority to suspend Medicare payments and reimbursements when fraud is suspected, the law allows us to better preserve the system and save taxpayer dollars. Today we’re sending a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will pay the price. We will protect a sacred trust and an earned guarantee.”
The defendants charged are accused of various health care fraud-related crimes, including conspiracy to commit health care fraud, violations of the anti-kickback statutes and money laundering. The charges are based on a variety of alleged fraud schemes involving various medical treatments and services, including home health care, mental health services, psychotherapy, physical and occupational therapy, durable medical equipment and pharmacy fraud.
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and often never provided. In many cases, court documents allege that patient recruiters, Medicare beneficiaries and other co-conspirators were paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of conspiring to submit approximately $260 million in fraudulent billings.
“Today, across the nation, scores of defendants were arrested for engaging in hundreds of millions of dollars in health care fraud,” said Acting Assistant Attorney General O’Neil. “Among the defendants charged were 27 medical professionals, including 16 doctors. The crimes charged represent the face of health care fraud today – doctors billing for services that were never rendered, supply companies providing motorized wheelchairs that were never needed, recruiters paying kickbacks to get Medicare billing numbers of patients. The fraud was rampant, it was brazen, and it permeated every part of the Medicare system. But law enforcement continues to strike back. Using cutting-edge, data-driven investigative techniques, we are bringing fraudsters to justice and saving the American taxpayers billions of dollars. Overall, since its inception, the Department of Justice’s Medicare Fraud Strike Force has charged nearly 1,900 individuals involved in approximately $6 billion of fraud. We are committed to using every tool at our disposal to prevent, deter, and prosecute health care fraud.”
“We all feel the effects of health care fraud,” said FBI Assistant Director Campbell. “It leads to higher health care costs and makes it harder for seniors and those who are ill to get the care they need. The FBI and our law enforcement partners are committed to preventing and prosecuting health care fraud at all levels. But we need the public’s help. Take the time to be aware of fraud and call law enforcement if you see anything suspicious included in the billings to your insurance, Medicare, or Medicaid or have any unusual encounters with health care providers. We can work together to ensure your hard-earned dollars are used to care for the sick and not to line the pockets of criminals.”
“ Today's arrests demonstrate the effectiveness of our Strike Forces in combating Medicare and Medicaid fraud,” said HHS Inspector General Levinson. “Through seamless teamwork, our agents and law enforcement partners bring lawbreakers to justice, protect beneficiaries and recover stolen taxpayer funds.”
“ Fraud can inflict real harm on Medicare beneficiaries and CMS is committed to working with our law enforcement partners to get criminals behind bars and out of the Medicare program as swiftly as possible,” said CMS Program Integrity Deputy Administrator Agrawal. “Today’s actions represent further consequences for bad actors, many of whom CMS had already stopped paying, or even kicked out of the program. Fundamentally, this is about protecting the well-being of our beneficiaries and the investment of taxpayer dollars.”
In Miami, a total of 50 defendants were charged today and yesterday for their alleged participation in various fraud schemes involving approximately $65.5 million in false billings for home health care and mental health services, and pharmacy fraud. In one case, two defendants were charged in connection with a $23 million pharmacy kickback and laundering scheme. Court documents allege that the defendants solicited kickbacks from a pharmacy owner for Medicare beneficiary information, which was used to bill for drugs that were never dispensed. The kickbacks were concealed as bi-weekly payments under a sham services contract and were laundered through shell entities owned by the defendants.
Eleven individuals were charged by the Houston Medicare Strike Force. Five Houston-area physicians were charged with conspiring to bill Medicare for medically unnecessary home health services. According to court documents, the defendant doctors were paid by two co-conspirators to sign off on home health care services that were not necessary and often never provided.
Eight defendants were charged in Los Angeles for their roles in schemes to defraud Medicare of approximately $32 million. In one case, a doctor was charged for causing almost $24 million in losses to Medicare through his own fraudulent billing and referrals for durable medical equipment, including over 1,000 expensive power wheelchairs, and home health services that were not medically necessary and frequently not provided.
In Detroit, seven defendants were charged for their roles in fraud schemes involving approximately $30 million in false claims for medically unnecessary services, including home health services, psychotherapy and infusion therapy. In one case, four individuals, including a doctor, were charged in a sophisticated $28 million fraud scheme, where the physician billed for expensive tests, physical therapy and injections that were not necessary and not provided. Court documents allege that when the physician’s billings raised red flags, he was put on payment review by Medicare. He was allegedly able to continue his scheme and evade detection by continuing to bill using the billing information of other Medicare providers, sometimes without their knowledge.
In Tampa, Florida, seven individuals were charged in a variety of schemes, ranging from fraudulent physical therapy billings to a scheme involving millions of dollars in physician services and tests that never occurred . In one case, five individuals were charged for their alleged roles in a $12 million health care fraud and money laundering scheme that involved billing Medicare using names of beneficiaries from Miami-Dade County for services purportedly provided in Tampa area clinics, 280 miles away. The defendants then allegedly laundered the proceeds through a number of transactions involving several shell entities.
In Brooklyn, New York, the Strike Force announced an indictment against Syed Imran Ahmed, M.D., in connection with his alleged $85 million scheme involving billings for surgeries that never occurred; Dr. Ahmed had been arrested last month and charged by complaint. Dr. Ahmed has charged with health care fraud and making false statements. In addition, the Brooklyn Strike Force charged six other individuals, including a physician and two billers who allegedly concocted a $14.4 million scheme in which they recruited elderly Medicare beneficiaries and billed Medicare for medically unnecessary vitamin infusions, diagnostic tests and physical and occupational therapy supposedly provided to these patients.
The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams comprised of attorneys from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for the Southern District of Florida, the Eastern District of Michigan, the Eastern District of New York, the Southern District of Texas, the Central District of California, the Middle District of Louisiana, the Northern District of Illinois and the Middle District of Florida; and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units.
A complaint or indictment is merely an accusation, and defendants are presumed innocent unless and until proven guilty.
To learn more about HEAT, go to: www.stopmedicarefraud.gov .
Court documents associated with this press release are available at: http://www.justice.gov/opa/mfsf-pc-2014. htmlMedicare Fraud Strike Force Charges 90 Individuals for Approximately $260 Million in False BillingRead the Press Release
27 Medical Professionals, Including 16 Doctors, Charged with Health Care Fraud
Attorney General Eric Holder and Department of Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that a nationwide takedown by Medicare Fraud Strike Force operations in six cities has resulted in charges against 90 individuals, including 27 doctors, nurses and other medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $260 million in false billings. .
Attorney General Holder and Secretary Sebelius were joined in the announcement by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, FBI Assistant Director Joseph Campbell, U.S. Department of Health and Human Services (HHS) Inspector General Daniel R. Levinson and Deputy Administrator and Director of the Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity Shantanu Agrawal.
This coordinated takedown is the seventh national Medicare fraud takedown in Strike Force history. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since their inception in March 2007, Strike Force operations in nine locations have charged almost 1,900 defendants who collectively have falsely billed the Medicare program for almost $6 billion. In addition, CMS, working in conjunction with HHS-OIG, has suspended enrollments of high-risk providers in five Strike force locations and has removed over 17,000 providers from the Medicare program since 2011.
The joint Department of Justice and HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and local investigators designed to combat Medicare fraud through the use of Medicare data analysis techniques and an increased focus on community policing. Almost 400 law enforcement agents from the FBI, HHS-OIG, multiple Medicaid Fraud Control Units and other federal, state and local law enforcement agencies participated in the takedown.
“Medicare is a sacred compact with our nation’s seniors, and to protect it, we must remain aggressive in combating fraud,” said Attorney General Holder. “This nationwide Medicare Strike Force takedown represents another important step forward in our ongoing fight to safeguard taxpayer resources and to ensure the integrity of essential health care programs. Department of Justice will not tolerate these activities. And we will continue working alongside the Department of Health and Human Services – as well as federal, state, and local partners – to use every appropriate tool and available resource to find, stop, and punish those who seek to take advantage of their fellow citizens.”
“The Affordable Care Act has given us additional tools to preserve Medicare and protect the tens of millions of Americans who rely on it each day,” said Secretary Sebelius. “By expanding our authority to suspend Medicare payments and reimbursements when fraud is suspected, the law allows us to better preserve the system and save taxpayer dollars. Today we’re sending a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will pay the price. We will protect a sacred trust and an earned guarantee.”
The defendants charged are accused of various health care fraud-related crimes, including conspiracy to commit health care fraud, violations of the anti-kickback statutes and money laundering. The charges are based on a variety of alleged fraud schemes involving various medical treatments and services, including home health care, mental health services, psychotherapy, physical and occupational therapy, durable medical equipment and pharmacy fraud.
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and often never provided. In many cases, court documents allege that patient recruiters, Medicare beneficiaries and other co-conspirators were paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of conspiring to submit approximately $260 million in fraudulent billings.
“Today, across the nation, scores of defendants were arrested for engaging in hundreds of millions of dollars in health care fraud,” said Acting Assistant Attorney General O’Neil. “Among the defendants charged were 27 medical professionals, including 16 doctors. The crimes charged represent the face of health care fraud today – doctors billing for services that were never rendered, supply companies providing motorized wheelchairs that were never needed, recruiters paying kickbacks to get Medicare billing numbers of patients. The fraud was rampant, it was brazen, and it permeated every part of the Medicare system. But law enforcement continues to strike back. Using cutting-edge, data-driven investigative techniques, we are bringing fraudsters to justice and saving the American taxpayers billions of dollars. Overall, since its inception, the Department of Justice’s Medicare Fraud Strike Force has charged nearly 1,900 individuals involved in approximately $6 billion of fraud. We are committed to using every tool at our disposal to prevent, deter, and prosecute health care fraud.”
“We all feel the effects of health care fraud,” said FBI Assistant Director Campbell. “It leads to higher health care costs and makes it harder for seniors and those who are ill to get the care they need. The FBI and our law enforcement partners are committed to preventing and prosecuting health care fraud at all levels. But we need the public’s help. Take the time to be aware of fraud and call law enforcement if you see anything suspicious included in the billings to your insurance, Medicare, or Medicaid or have any unusual encounters with health care providers. We can work together to ensure your hard-earned dollars are used to care for the sick and not to line the pockets of criminals.”
“Today's arrests demonstrate the effectiveness of our Strike Forces in combating Medicare and Medicaid fraud,” said HHS Inspector General Levinson. “Through seamless teamwork, our agents and law enforcement partners bring lawbreakers to justice, protect beneficiaries and recover stolen taxpayer funds.”
“Fraud can inflict real harm on Medicare beneficiaries and CMS is committed to working with our law enforcement partners to get criminals behind bars and out of the Medicare program as swiftly as possible,” said CMS Program Integrity Deputy Administrator Agrawal. “Today’s actions represent further consequences for bad actors, many of whom CMS had already stopped paying, or even kicked out of the program. Fundamentally, this is about protecting the well-being of our beneficiaries and the investment of taxpayer dollars.”
In Miami, a total of 50 defendants were charged today and yesterday for their alleged participation in various fraud schemes involving approximately $65.5 million in false billings for home health care and mental health services, and pharmacy fraud. In one case, two defendants were charged in connection with a $23 million pharmacy kickback and laundering scheme. Court documents allege that the defendants solicited kickbacks from a pharmacy owner for Medicare beneficiary information, which was used to bill for drugs that were never dispensed. The kickbacks were concealed as bi-weekly payments under a sham services contract and were laundered through shell entities owned by the defendants.
Eleven individuals were charged by the Houston Medicare Strike Force. Five Houston-area physicians were charged with conspiring to bill Medicare for medically unnecessary home health services. According to court documents, the defendant doctors were paid by two co-conspirators to sign off on home health care services that were not necessary and often never provided.
Eight defendants were charged in Los Angeles for their roles in schemes to defraud Medicare of approximately $32 million. In one case, a doctor was charged for causing almost $24 million in losses to Medicare through his own fraudulent billing and referrals for durable medical equipment, including over 1,000 expensive power wheelchairs, and home health services that were not medically necessary and frequently not provided..
In Detroit, seven defendants were charged for their roles in fraud schemes involving approximately $30 million in false claims for medically unnecessary services, including home health services, psychotherapy and infusion therapy. In one case, four individuals, including a doctor, were charged in a sophisticated $28 million fraud scheme, where the physician billed for expensive tests, physical therapy and injections that were not necessary and not provided. Court documents allege that when the physician’s billings raised red flags, he was put on payment review by Medicare. He was allegedly able to continue his scheme and evade detection by continuing to bill using the billing information of other Medicare providers, sometimes without their knowledge.
In Tampa, Florida, seven individuals were charged in a variety of schemes, ranging from fraudulent physical therapy billings to a scheme involving millions of dollars in physician services and tests that never occurred. In one case, five individuals were charged for their alleged roles in a $12 million health care fraud and money laundering scheme that involved billing Medicare using names of beneficiaries from Miami-Dade County for services purportedly provided in Tampa area clinics, 280 miles away. The defendants then allegedly laundered the proceeds through a number of transactions involving several shell entities.
In Brooklyn, New York, the Strike Force announced an indictment against Syed Imran Ahmed, M.D., in connection with his alleged $85 million scheme involving billings for surgeries that never occurred; Dr. Ahmed had been arrested last month and charged by complaint. Dr. Ahmed has charged with health care fraud and making false statements. In addition, the Brooklyn Strike Force charged six other individuals, including a physician and two billers who allegedly concocted a $14.4 million scheme in which they recruited elderly Medicare beneficiaries and billed Medicare for medically unnecessary vitamin infusions, diagnostic tests and physical and occupational therapy supposedly provided to these patients.
The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams comprised of attorneys from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for the Southern District of Florida, the Eastern District of Michigan, the Eastern District of New York, the Southern District of Texas, the Central District of California, the Middle District of Louisiana, the Northern District of Illinois and the Middle District of Florida; and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units.
A complaint or indictment is merely an accusation, and defendants are presumed innocent unless and until proven guilty.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Trial Attorney Allan Medina of the Criminal Division’s Fraud Section.
To learn more about HEAT, go to: http://www.stopmedicarefraud.com.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manhattan U.S. Attorney Files and Settles Civil Fraud Lawsuit Against Subcontractor for Fraudulent Conduct That Violated Rules Designed to Encourage Participation of Minority and Women-Owned BusinessesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Robert E. Van Etten, Inspector General of the Port Authority of New York and New Jersey (the “Port Authority”), and Douglas Shoemaker, regional Special Agent-in-Charge of the U.S. Department of Transportation’s (“DOT”) Office of Inspector General, announced today that the United States has filed, and simultaneously settled, a civil fraud lawsuit against a subcontractor, MORETRENCH AMERICAN CORPORATION (“MORETRENCH”), for engaging in fraudulent conduct to exploit regulations designed to increase the role of minority-owned businesses in order to secure a subcontract on the federally-funded World Trade Center Transportation Hub project (the “HUB Project”). Specifically, MORETRENCH caused the prime contractor of the HUB Project to falsely represent to the Port Authority that MORETRENCH paid hundreds of thousands of dollars to a disadvantaged business enterprise (“DBE”) to perform legitimate work on the contract when, in fact, the DBE did not perform any significant work and instead simply received a kickback from MORETRENCH for the fraudulent use of its DBE status. In the settlement, approved in Manhattan federal court yesterday by U.S. District Judge Laura Taylor Swain, MORETRENCH admitted and accepted responsibility for violating the applicable regulations governing the Hub Project and agreed to pay $3 million. MORETRENCH further agreed to pay the Office of Inspector General of the Port Authority $50,000 for its investigative costs.
Manhattan U.S. Attorney Preet Bharara said: “The federal Disadvantaged Business Enterprise regulations and similar Port Authority rules serve the important function of increasing legitimate participation by minority-owned businesses in federally-funded construction projects. With this settlement, Moretrench has publicly admitted to fraudulently violating these rules and will pay a substantial fine as a consequence. I want to thank our partners at the Port Authority Office of Inspector General and the U.S. Department of Transportation’s Office of Inspector General for their work in this important case.”
Port Authority Inspector General Robert E. Van Etten said: “This investigation has shown how individuals in the construction industry have manipulated and circumvented the intent of the Port Authority’s Minority and Women’s Business Enterprise Program for the World Trade Center Transportation Hub project by utilizing firms as fronts to satisfy the Program goals. I would hope that this case serves as an incentive to the industry to adhere to the Program’s intent. I urge those with information of instances of other fraudulent practices to report them to law enforcement. Working with our law enforcement partners we will continue to vigilantly investigate allegations of fraud in the construction industry.”
Douglas Shoemaker, regional Special Agent-in-Charge of DOT’s Office of Inspector General, said: “As evidenced by Moretrench’s agreement to settle this lawsuit, we remain steadfast in our commitment to preventing and detecting fraud related to federally funded transportation programs. Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
BACKGROUND ON DBEs
In 1980, the DOT issued regulations in connection with a program to increase the participation of minority and disadvantaged business enterprises in federally-funded public construction contracts. To become certified as a DBE, a company must, among other things, be owned and controlled by socially and economically disadvantaged individuals; be an independent business whose viability does not depend on its relationship with other firms; employ its own work force and own equipment necessary to perform its work; and be able to meet its financial obligations.
General contractors can count funds paid to DBEs toward the attainment of the DBE goals only if the DBEs performed a “commercially useful function.” A DBE subcontractor performs a commercially useful function only when it is responsible for the execution of the work of the contract; actually performs, manages, and supervises the work involved; and furnishes the supervision, labor, and equipment necessary to perform its work.
MORETRENCH’S FRAUD
According to the allegations in the complaint:
As a condition of receiving DOT funding, the Port Authority set Minority Business Enterprise (“MBE”) and Women’s Business Enterprise (“WBE”) goals for the HUB Project. DOT determined that, with respect to the HUB Project, the Port Authority was permitted to follow its own MBE and WBE rules as they were substantially equivalent to the federal DBE regulations. MORETRENCH was hired as a subcontractor on the HUB Project and, as part of its contract, was required to use its best efforts to obtain seventeen percent MBE/WBE participation. MORETRENCH represented that it had hired Environmental Energy Associates, LLC (“EEA”) as a subcontractor to operate the dewatering system for the HUB Project (dewatering is the removal of groundwater). However, EEA operated as a shell company. EEA and MORETRENCH had an arrangement whereby MORETRENCH hired the pump operators, supervised the job site and assembled bi-weekly payrolls. In order to give the appearance that EEA was performing a legitimate role as an MBE, several pump operators, who were already working on the job site as MORETRENCH employees, were switched to EEA’s payroll. EEA’s payroll paperwork was assembled by MORETRENCH employees, but listed EEA as the contractor. EEA received a mark-up on the payroll records as compensation for the use of its MBE status. As part of its requests for payment, MORETRENCH prepared reports to the Port Authority falsely representing that MORETRENCH paid EEA for work performed on the project when in fact MORETRENCH was performing the work itself.
Pursuant to the settlement agreement, MORETRENCH admitted, acknowledged, and accepted responsibility for making and causing false statements to be made in violation of applicable regulations designed to encourage the participation of disadvantaged business enterprises in federally-funded construction projects. MORETRENCH also agreed to pay the United States $3 million.
Mr. Bharara praised the Port Authority Office of Inspector General and the U.S. Department of Transportation’s Office of Inspector General for their invaluable work on this case. He also thanked the Metropolitan Transportation Authority Office of Inspector General and the United States Department of Labor Office of Inspector General for their assistance.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Mara Trager and Ellen London are in charge of the case.
Moretrench Complaint14cv3250
Moretrench endorsed stipulationMail and Identity Theft Results in Three and a Half Year Federal SentenceRead the Press Release
Southern Oregon Victims the Subject of Identity Theft and FraudMEDFORD, Ore. - Michelle Renee Lustig, 45, of Grants Pass, Oregon, was sentenced to 42 months in federal prison by Senior U.S. District Judge Owen M. Panner, after her convictions for conspiracy to commit mail theft, conspiracy to commit bank fraud and aggravated identity theft. As part of her sentence, Lustig received a mandatory consecutive term of two years in prison required by federal statute where a victim’s identification was possessed or used in committing bank fraud. Lustig was also ordered to pay $12,387.06 in restitution to victims of the fraud. Her co-defendant, Gregory Stephen Brooks, 50, also of Grants Pass, Oregon, was sentenced last month by Judge Panner to 81 months in federal prison.
Between March 2013 and July 2013, Lustig and Brooks stole substantial quantities of mail from the mailboxes of over 400 victims in Jackson and Josephine Counties. Some of the stolen mail was recovered discarded along the roadside, and two boxes of stolen mail, which included financial instruments, were recovered from a U-Haul truck being used by Lustig and Brooks. Additional boxes of stolen mail were recovered from a residence where they both were staying in Grants Pass. The two forged and deposited stolen checks, and used stolen debit and credit cards for making withdrawals from victim bank accounts and fraudulent retail purchases. They also used victims’ personal identification to apply for and obtain credit and debit cards from victim companies. When Lustig was arrested, law enforcement discovered additional stolen mail in her car, including mail previously stolen that was in the process of being returned by postal authorities to earlier victims from the Onion Mountain area of Josephine County.
This case was investigated by the Jackson County Sheriff’s office, Grants Pass Department of Public Safety and the U.S. Postal Inspection Service, and was prosecuted by Assistant U. S. Attorney Byron Chatfield.
Luzerne County Woman Sentenced to 26 Months for Tampering with A Consumer ProductRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Yolanda Holman, age 35, Wilkes-Barre, was sentenced today in federal court in Scranton for tampering with a consumer product. Senior U.S. District Court Judge Richard P. Conaboy sentenced Holman to 26 months incarceration followed by 2 years of supervised release.
According to United States Attorney Peter J. Smith, a Criminal Information filed on December 19, 2013 charged that Holman knowingly and intentionally tainted a bottle of Children’s Advil on August 23, 2013 with prescription pills and other medication. Holman waived indictment and entered a guilty plea on February 4, 2014.
All of the tainted containers were recovered and are in the possession of law enforcement officers or otherwise destroyed. The tainted containers presented no danger to the public. The retail store where the Advil was purchased cooperated with federal authorities.
The investigation was conducted by agents of the Federal Bureau of Investigation – Scranton Resident Office. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.Luzerne County Man Pleads Guilty to Heroin ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a West Pittston resident pleaded guilty today before Senior U.S. District Court Judge James M. Munley to participating in a drug conspiracy that distributed heroin to others during a 13-month time period.
According to United States Attorney Peter Smith, the defendant, Robert Romasiewicz, age 20, admitted to regularly obtaining heroin in New Jersey and distributing it to others on multiple occasions in Luzerne County during January 2013 through February 24, 2014.
The charge against Romasiewicz resulted from an investigation by the Federal Bureau of Investigation.
Romasiewicz faces a potential maximum sentence of 20 years in prison and a $1 million fine. Sentencing was scheduled for August 26, 2014.
Romasiewicz also agreed to forfeit two firearms seized by agents during the investigation.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Leader of Real Estate Flipping Scheme IndictedRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Stephen Mayer (50, Miami Beach) with one count of conspiracy to commit wire fraud affecting a financial institution. If convicted, Mayer faces a maximum penalty of 30 years in federal prison. The indictment also notifies Mayer that the United States intends to forfeit any assets that are alleged to be traceable to proceeds of the offense.
On April 29, 2014, Mayer was arrested on a federal complaint and detained in Miami.
According to court documents, Mayer engineered a complex real estate flipping scheme involving different participants and shell companies under his control. From approximately September 18, 2003 and continuing through at least September 14, 2007, Mayer defrauded lenders by causing mortgages to be issued based on fraudulent information provided by several “straw buyers” whom he recruited. Mayer facilitated the scheme utilizing several Florida corporations, including InvestFund Corp USA, Inc., and Regal Windsor Homes, Inc.
Between September and March 2005, Mayer bought at least 24 properties in Hillsborough County for approximately $2,341,000. He resold these same properties, usually on the same day, to his “investors” for approximately $3,723,290. The transactions resulted in a net profit of approximately $1,528,790. The purchasers of these properties, known as “straw buyers,” were recruited by Mayer to utilize their good credit in order to obtain mortgage loans for purchases. The “straw buyers” subsequently transferred the titles back to Mayer, and/or one of Mayer’s companies, by quit claim deed. Mayer would facilitate the transfer of properties between his various investors, each time inflating the prices. When these properties were later resold at even greater prices, Mayer again profited from the sales. The total loss to the affected lenders exceeds $2.75 million.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Mandy Riedel.
Laredoan Who Fled to Mexico Indicted for KidnappingRead the Press Release
LAREDO, Texas – A federal grand jury has indicted Raul Ochoa-Perez, 42, of Laredo, on charges of conspiracy to kidnap and kidnapping, announced United States Attorney Kenneth Magidson.
A criminal complaint was filed Jan. 15, 2014, but Ochoa-Perez had allegedly fled to Mexico. Ochoa-Perez turned himself in to federal authorities April 15, 2014, and was subsequently detained pending further proceedings. He is expected to appear before U.S. Magistrate Judge Song Quiroga in the coming days for his initial appearance.
The indictment, returned today, alleges that on Jan. 13, 2014, Ochoa-Perez forced a male victim into a vehicle and took him into Mexico at gunpoint. There, he was allegedly bound and beaten. According to the charges, Ochoa-Perez supervised as others put a gun in the victim's mouth and a knife to his throat. They allegedly demanded money and threatened to cut the victim into pieces if he did not comply. The indictment also alleges Ochoa-Perez called the victim’s girlfriend and threatened her life, the lives of her children and parents as well as the life of the victim if she did not give Ochoa-Perez $55,000.
If convicted, Ochoa-Perez faces a maximum sentence of life in prison and a $250,000 fine for each charge.
The case is the result of an investigation led by the FBI. Assistant U.S. Attorney James Hepburn is handling the case.
A defendant is presumed innocent unless convicted through due process of law.Justice Department, Health and Human Services <br /> and Other Law Enforcement Officials to Announce <br /> Significant Medicare Fraud Strike Force ActionsRead the Press Release
Officials from the Justice Department, Health and Human Services and other law enforcement partners will hold a press conference TODAY, TUESDAY, MAY 13, 2014, at 2:00 p.m. EDT, to announce Medicare Fraud Strike Force law enforcement actions in Miami and throughout the nation.WHO: David A. O’Neil, Acting Assistant Attorney General of the Criminal
Division
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida
Tyler Smith, Assistant Inspector General of the HHS Office of Inspector General (HHS-OIG)
George Piro, Special Agent in Charge for FBI’s Miami Division
Shantanu Agrawal M.D., Deputy Administrator and Director for Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity
James Mann, Deputy Director of the Medicaid Fraud Control Unit for the Florida Attorney General’s Office
WHAT: Press conference announcing Medicare Fraud Strike Force actions
WHEN: TODAY, TUESDAY, MAY 13, 2014
2:00 p.m. EDT
WHERE: United States Attorney’s Office
Southern District of Florida
Second Floor, Media Room
99 N.E. 4th Street
Miami FL 33132
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Press inquiries regarding logistics should be directed to Annette Castillo at (305) 961-9100.
Justice Department Reaches $60 Million Settlement with Sallie Mae to Resolve Allegations of Charging Military Servicemembers Excessive Rates on Student LoansRead the Press Release
The Department of Justice today announced the federal government’s first lawsuit filed against owners and servicers of student loans for violating the rights of servicemembers eligible for benefits and protections under the Servicemembers Civil Relief Act (SCRA). The United States’ complaint alleges that three defendants, collectively known as Sallie Mae, engaged in a nationwide pattern or practice, dating as far back as 2005, of violating the SCRA by failing to provide members of the military the six percent interest rate cap to which they were entitled. The three defendants are Sallie Mae Inc. (now known as Navient Solutions Inc.), SLM DE Corporation (now known as Navient DE Corporation), and Sallie Mae Bank. The complaint further alleges that defendants Sallie Mae Inc. and SLM DE Corporation also violated the SCRA by improperly obtaining default judgments against servicemembers.
In addition to the complaint, the department filed a proposed settlement of the lawsuit which will require Sallie Mae to pay $60 million to compensate servicemembers for the alleged SCRA violations. The department estimates that about 60,000 servicemembers will receive compensation under the settlement. The settlement and complaint have been filed in the U.S. District Court for the District of Delaware and the settlement is pending approval in that court.
The proposed settlement covers the entire portfolio of student loans serviced by, or on behalf of, Sallie Mae. This includes private student loans, direct Department of Education loans and student loans that originated under the Federal Family Education Loan Program. The proposed settlement is far-reaching, with certain sevicemembers to be compensated for violations of the SCRA that occurred almost a decade ago.
In addition to the $60 million in compensation, the proposed settlement contains several other key provisions to ensure that servicemembers are protected going forward. Sallie Mae must request that all three major credit bureaus delete negative credit history entries caused by the interest rate overcharges and improper default judgments. Going forward, Sallie Mae is required to streamline the process by which servicemembers may notify Sallie Mae of their eligibility for SCRA benefits. The revised process will include an SCRA online intake form for servicemembers, and the availability of customer service representatives specially trained on the rights of those in military service. It also requires Sallie Mae to pay the United States a civil penalty of $55,000.
“Federal law protects our servicemembers from having to repay loans under terms that are unaffordable or unfair,” said Attorney General Eric Holder. “That is the least we owe our brave servicemembers who make such great sacrifices for us. But as alleged, the student lender Sallie Mae sidestepped this requirement by charging excessive rates to borrowers who filed documents proving they were members of the U.S. military. By requiring Sallie Mae to compensate its victims, we are sending a clear message to all lenders and servicers who would deprive our servicemembers of the basic benefits and protections to which they are entitled: this type of conduct is more than just inappropriate; it is inexcusable. And it will not be tolerated.”
“Our men and women in uniform who are called to active duty should not be subjected to additional red tape to receive the benefits they’re entitled to for serving their country,” said U.S. Education Secretary Arne Duncan. “What's more, every student who has taken out a federal student loan should have the peace of mind that the department's servicers are following the law and treating all borrowers fairly. Federal student loans are a critical part of helping every American find the clearest path to the middle class through a higher education, so we must do everything we can to ensure quality customer service for every borrower.”
“Our brave men and women in the military should not have to worry about receiving the benefits the SCRA provides,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department continues to enforce vigorously the laws that protect service members while they do their difficult and necessary work.”
“I applaud the work of the Department of Justice and all the agencies whose joint cooperation made this settlement possible,” said U.S. Attorney Charles M. Oberly III for the District of Delaware. “The least we can do for our brave men and women who sacrifice so much to preserve our freedom is to see that they are afforded the benefits they are lawfully entitled to.”
The department’s settlement is the result of a joint effort with the Department of Education, the Federal Deposit Insurance Corporation (FDIC), and the Consumer Financial Protection Bureau (CFPB). The department’s investigation of Sallie Mae was the result of a referral of servicemember complaints from the CFPB’s Office of Servicemember Affairs, headed by Holly Petraeus. The Department of Justice worked closely with the Department of Education during the investigation to ensure that aggrieved servicemembers with federally owned and federally guaranteed student loans would be fully compensated, and be able to receive the SCRA benefit of a reduced six percent interest rate through a streamlined process going forward. In addition, the FDIC today announced its own important settlement with Sallie Mae in an effort to ensure protections for those who protect this country.
The settlement provides for an independent administrator to locate victims and distribute payments of compensation at no cost to borrowers whom the department identifies as victims. The department will make a public announcement and post information on its website once more details about the compensation process become available. Borrowers who are eligible for compensation from the settlement will be contacted by the administrator, and do not need to contact the department at this time.
The department’s recent SCRA enforcement actions include negotiated agreements with the nation’s five largest home mortgage loan servicers as part of the National Mortgage Settlement, a historic agreement between the United States, 49 state attorneys general, the District of Columbia and the five servicers. The department has also obtained major settlements against other lenders and servicers for conducting improper mortgage foreclosures and auto repossessions and for failing to grant the six percent interest rate benefit to SCRA-protected servicemembers.
The Civil Rights Division is the component within the Department of Justice authorized to enforce the SCRA. This federal law provides protections for active duty servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about SCRA enforcement by the Justice Department, please visit www.servicemembers.gov or call 1-800-896-7743.
Jury Finds Arizona Man Guilty of Drug Trafficking ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal jury has convicted Raul Eduardo Rivera de la Torre, 25, of Tucson, Arizona, of conspiracy to possess with intent to distribute, and to distribute, marijuana. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a fine of $2,000,000 or both.
Assistant U.S. Attorney Charles Moynihan, who handled the prosecution of the case, stated that the conspiracy began operations in March of 2007 and continued through April of 2010. During that time, members of the conspiracy shipped hundreds of pounds of marijuana from Tucson, Arizona, to Cleveland, Ohio, Port Chester, N.Y., Philadelphia, Pennsylvania, and Rochester, N.Y. The organization acquired marijuana from a supplier who was from Mexico. The Government’s proof showed that de la Torre, who is from Mexico and went to high school in the United States, was responsible for translating between the suppliers, who spoke Spanish, and the members of the conspiracy purchasing the marijuana and shipping it to the Northeast, including Rochester, who spoke English.
At trial, a Government witness, who was involved in the conspiracy, detailed that he would purchase marijuana from the Mexican supplier and would be assisted by the translations of the defendant. The witness testified that he would utilize various companies to ship marijuana packaged in boxes to various locations in Rochester. He then detailed that he later utilized over-land trucking companies to deliver crates full of marijuana to various locations in the Northeastern United States.
Another Government witness detailed how he was responsible for receiving the shipments of marijuana in Rochester and that he would distribute the marijuana once it arrived.
The conviction is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration under the direction of James J. Hunt, Acting Special Agent in Charge of the New York Division.
Sentencing is scheduled for September 3, 2014, at 3:00 PM before Judge Frank P. Geraci.Jerome Woman Sentenced to 70 Months for Immigration Fraud SchemeRead the Press Release
Defendant ordered to pay over $400,000 in restitution to more than 50 victims
BOISE – Celia Perez, 40, of Jerome, Idaho, was sentenced to 70 months in federal prison for a seven-year immigration services fraud scheme that was executed through the United States mail, U.S. Attorney Wendy J. Olson announced. United States District Court Judge John C. Coughenour from the Western District of Washington also ordered Perez to serve three years of supervised release and to pay $400,000 in restitution to more than fifty victims. Perez pled guilty to the offense on February 12, 2014.
As a part of her plea agreement, Perez admitted that she falsely represented herself as an immigration attorney and solicited fees from clients for immigration services that she never provided. The scheme ran from 2006 through 2013. As part of the scheme to defraud, Perez sent her clients invoices requesting money for “fines and fees,” that she claimed were due and owing to various U.S. Government agencies for immigration benefits applications. The clients then sent money, by certified checks and money orders, to Perez at her U.S. Post Office Box in Wendell, Idaho, through the use of the U.S. Mail. Perez never filed any applications for immigration benefits with any U.S. Government agencies, nor were any fines or fees ever owed by the clients for immigration benefits applications. Rather, Perez used the money paid by the clients for her own purposes.
According to the plea agreement, during the investigation, Perez voluntarily met with agents of ICE’s Homeland Security Investigations and admitted that she had engaged in the fraud scheme for several years. Perez further admitted that she obtained money from victims identified in the plea agreement, but did not pay any fines or fees to U.S. Government agencies as she had represented. Instead she used the money for her own purposes. Perez admitted that the amount of loss resulting from her fraud scheme is greater than $300,000, but less than $400,000. Perez also admitted that she opened approximately 12 credit card accounts, and obtained a student loan in the name of a relative.
At the sentencing hearing, Judge Coughenour heard testimony from five victims about the financial impact that the defendant's crimes had on them. Several victims described in court how the defendant’s actions caused families to lose tens of thousands of dollars that they paid to Perez for immigration services. Victims explained how their relatives lost opportunities to come to the United States while waiting on the false hope promised by Ms. Perez. One victim told the Court that his wife was stuck in Mexico as a result of the defendant’s inactions, and another victim lamented that he was unable to visit his parents prior to their deaths because the defendant had caused problems with his immigration status.
“Today’s sentence and restitution order send a strong message that those who dream of U.S. citizenship cannot be victimized by others whose only interest is greed and personal benefit,” said Olson. “Celia Perez took advantage of her victims and took their money when she was never in a position to help them realize their dreams. I commend Special Agent Rich Cross, the lawyers from my office who worked on this case and the victims and their advocates who had the courage to come forward to expose Ms. Perez’s criminal conduct.”
“Fraud of this nature is prolific and criminals such as Perez know many immigrants will pay a premium for legal assistance to obtain immigration benefits,” said Brad Bench, special agent in charge of HSI Seattle, who oversees Idaho investigations. “HSI is dedicated to protecting immigrants and the integrity of the legal immigration system. It was only through victims coming forward that we were able to put an end to Perez’s crimes and keep others from being victimized.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Postal Inspection Service (USPIS).
Isleta Pueblo Man Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Louie Valdez, 51, was sentenced this morning to 27 months in federal prison for his assault conviction. Valdez will be on supervised release for three years after he completes his prison sentence. He also was ordered to pay a fine of $1,547 and a special penalty assessment of $100.
Valdez, a member of Isleta Pueblo who resides in Bosque Farms, N.M., was indicted in Nov. 2012, and charged with assault resulting in serious bodily injury and assault with a dangerous weapon. According to the indictment, Valdez seriously injured a man by running over him with a vehicle on Aug. 10, 2011, in a location within Isleta Pueblo.
On Jan. 17, 2014, Valdez pled guilty to Count 1 of the indictment charging him with assault resulting in serious bodily injury. In his plea agreement, Valdez admitted that on Aug. 10, 2011, he intentionally drove his pickup truck over the victim and the victim suffered serious injuries as a result of the assault.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services with assistance from the Isleta Pueblo Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
International Cocaine Trafficking Network Impacting the Low Country and Midlands Charge in Charleston, SCRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ----- William N. Nettles, the United States Attorney for the District of South Carolina; Harry S. Sommers, the Special Agent in Charge of the Atlanta Division of the Drug Enforcement Administration (“DEA”); Brock Nicholson, the Special Agent in Charge of Homeland Security Investigations (“HSI”) in Atlanta; Mark Keel, the Chief of the South Carolina Law Enforcement Division (“SLED”); and L. C. Knight, the Sheriff of Dorchester County, announce the arrests of defendants in a drug distribution conspiracy indictment involving a cocaine trafficking network operating between Mexico and South Carolina.
According to the federal indictment unsealed in Charleston, SC today, Jose Alfredo Sierra-Reynoso of Saint Matthews, SC, Michael Clark, a/k/a “Bizzy B” of Holly Hill, SC, Lonnell McFadden, a/k/a “June” of Holly Hill, SC, Marion Jerome Mack, a/k/a “Jigga” of Holly Hill, SC, Adryenne R. Johnson of Lexington, SC, Allen Washington, a/k/a “Dirty” of Holly Hill, SC, and Harold Robinson of Holly Hill, SC were charged by a grand jury with conspiring to distribute more than five kilograms of cocaine in South Carolina. The indictment alleges the conspiracy began in or around July 2011.
The indictment is the culmination of an Organized Crime Drug Enforcement Task Force investigation conducted by DEA Charleston Task Force, the Dorchester/Summerville Metro Narcotics Unit, HSI Border Enforcement Security Team, and SLED.
In today’s enforcement operation, over 75 law enforcement officers executed arrest warrants and served search warrants in several South Carolina counties. Law enforcement agencies conducting the takedown operation include DEA, Dorchester/Summerville Metro Narcotics Unit, HSI, SLED, United States Marshals Service, Federal Bureau of Investigation (FBI), South Carolina Highway Patrol, Alcohol, Tobacco & Firearms (ATF), Lexington County Sheriff’s Office, Calhoun County Sheriff’s Office, and Orangeburg County Sheriff’s Office.
“Today’s operation is a testament to the effectiveness of the OCDETF program in dismantling drug trafficking organizations, from their South Carolina base up to their sources of supply,” said United States Attorney Bill Nettles of the District of South Carolina.
"International and interstate drug dealers should take heed that federal, state, and local law enforcement in South Carolina is well organized, cooperative and effective," said Special Agent in Charge Harry Sommers of the DEA Atlanta Field Division. “This investigation is an excellent example of how South Carolina’s law enforcement community bands together to dismantle criminal networks.”
“Dismantling sophisticated transnational criminal organizations takes a lot of teamwork and a lot of effort,” said Special Agent in Charge Brock D. Nicholson, Homeland Security Investigations (HSI) Atlanta. “HSI is a strong supporter of the DEA’s Organized Crime Drug Enforcement Task Force and we are proud to have played a role in this investigation.”
“Criminals think they can avoid the law by running across county or state lines and even national borders. This collaborative effort among law enforcement agencies from every branch of government shows clearly there’s no place to hide for those who would do harm to our citizens.” said Chief Mark Keel of the South Carolina Law Enforcement Division.
“Cooperation and collaboration is the key to good, quality law enforcement and this case is prime example of how many agencies working toward a common goal can have far reaching success. The streets and citizens of Dorchester County are safer as a result of this partnership.” said Sheriff L. C. Knight of the Dorchester County Sheriff’s Office.
The DEA Charleston Task Force is comprised of Special Agents and Task Force Officers from DEA, Berkeley County Sheriff’s Office, Charleston County Sheriff’s Office, Charleston Police Department, Dorchester County Sheriff’s Office, Hampton County Sheriff’s Office, North Charleston Police Department, Mount Pleasant Police Department, South Carolina Highway Patrol, South Carolina Law Enforcement Division, and Summerville Police Department.
Prosecution of the investigation is led by Assistant United States Attorney Nick Bianchi of the United States Attorney’s Office in Charleston, SC.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Grants Pass Armed Career Criminal Sentenced to 20 Years in Federal PrisonRead the Press Release
MEDFORD, Ore. - On Monday, May 12, 2014, Senior U.S. District Judge Owen M. Panner sentenced Christopher Darrell Joseph Sage, 49, of Grants Pass, Oregon, to 20 years in federal prison, after he previously pleaded guilty to being a felon in possession of a firearm and possession of methamphetamine with intent to distribute. Sage will be on supervised release for five years after he completes his prison sentence.
On January 2, 2013, Rogue Area Drug Enforcement Team (RADE) detectives observed Sage enter and leave the Grants Pass apartment of a previously arrested methamphetamine dealer. A Grants Pass patrol unit and a RADE detective followed Sage to a motel parking lot. Sage got out of his pickup and began walking away, ignoring the officers’ multiple commands to stop and take his hands out of his pockets. Sage fought with the officers and had to be tasered three times before he was finally subdued and handcuffed. Officers discovered that Sage was a multiple convicted felon and probation absconder. Officers searched Sage’s truck and found a stolen Bushmaster AR-15 semi-automatic assault rifle with two 30 round magazines and several boxes of .223 ammunition, a Remington 12 gauge shotgun, digital gram scales, ziplock plastic baggies, and drug notes. In his coat pocket Sage had a quarter pound of methamphetamine and a handwritten list of firearms.
Under federal law, any person who possesses a firearm or ammunition after being previously convicted of three violent felonies or felony drug trafficking crimes is an Armed Career Criminal and faces a 15 year mandatory minimum prison sentence. Sage is an Armed Career Criminal based upon his prior felony convictions for assault on a police officer (2 counts), and three felony convictions for manufacture of methamphetamine. His criminal history additionally includes previous felony convictions for felon in possession of a firearm, unauthorized use of a vehicle, and possession of methamphetamine, and receiving stolen property, and misdemeanor convictions for forgery, theft, obstructing police, DUII, and reckless driving.
This case was investigated jointly by the Rogue Area Drug Enforcement Team, the Grants Pass Department of Public Safety, and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.