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13 May 2014
Fulton Man Sentenced to 15 Years for Marijuana, Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man was sentenced in federal court today on two separate cases for marijuana trafficking and for illegally possessing a firearm.
Corey James Brewer, 30, of Fulton, was sentenced by U.S. District Judge Fernando J. Gaitan to 15 years in federal prison without parole. Brewer was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 25, 2013, Brewer pleaded guilty to possessing marijuana with the intent to distribute. Brewer also pleaded guilty to a separate federal indictment that charges him with being a felon in possession of a firearm.
Brewer admitted that he acquired marijuana on a trip to Kansas City, Mo., in September 2010. After Brewer arrived at a Kansas City residence, he placed a black suitcase, which contained about 50 pounds of marijuana, inside a toolbox in the bed of a truck that was being driven by a cooperating source. When the vehicle was stopped during the return trip at an exit on I-70 in Boone County, Mo., law enforcement officers seized the suitcase. They also seized approximately one kilogram of cocaine that was discovered underneath the seat of another defendant, Jason Randall Holloway of Callaway County, Mo.
Holloway was sentenced to five years in federal prison without parole after pleading guilty in a separate but related case to participating in a conspiracy to distribute 100 kilograms or more of marijuana and five kilograms or more of cocaine from 2007 to September 2010. Holloway also pleaded guilty to three additional counts of possessing marijuana with the intent to distribute, distributing marijuana and possessing marijuana and cocaine with the intent to distribute.
By pleading guilty to the second federal indictment, Brewer admitted that he was a felon in possession of firearms.
An employee of the Wal-Mart store in Fulton, Mo., contacted two police officers who were at the store in September 2012 to report that Brewer had just purchased more than 40 boxes of ammunition. Police officers interviewed Brewer and seized from his residence a Kel Tec 9mm pistol, a Rock Island .45-caliber pistol, a DPMS AR-15, a Maverick Arms 12-gauge shotgun, a Taurus .380-caliber pistol, and ammunition. Brewer told officers that he normally carried the .45-caliber and 9mm handguns at his shop and that he had a vest that concealed the pistols underneath his arms.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearms or ammunition. Brewer has six prior felony convictions for burglary, three prior felony convictions for stealing, a prior felony conviction for property damage, two prior felony convictions for stealing a motor vehicle and a prior felony conviction for nonsupport.
These cases were prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. They were investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, and Firearms and Explosives, and MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group).Fort Thompson Man Charged with Assault and RobberyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender, Assault with a Dangerous Weapon, and Robbery.
Gary Walking Bull, age 36, was indicted on April 22, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 12, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between March 21, 2014, and March 22, 2014, and again on April 7, 2014, Walking Bull unlawfully committed domestic assaults against a victim. At the time of the assaults, Walking Bull had at least two separate prior convictions for assaults that were against a spouse or intimate partner. In one of the cases, the victim was assaulted with a dangerous weapon and money was taken from her.
The charges are merely accusations and Walking Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Walking Bull was remanded to the custody of the U.S. Marshals Service pending trial which has been set for July 1, 2014.
Former Wethersfield Resident Sentenced to 46 Months in Prison for Distributing HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE NEGRON, also known as “Chino,” 29, formerly of Wethersfield, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 46 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department into gang-related narcotics trafficking in Hartford’s South End. The investigation specifically targeted a drug trafficking organization headed by Angel Rosa, aka “Little” and “Daddy,” who is a member of the Los Solidos street gang. Rosa’s cousin, Angel Rosa, aka “Mo Betta” and “Fab,” supervised the daily operations of the organization, which distributed heroin and other narcotics in the Zion Street area.
The investigation, which included court-authorized wiretaps, further revealed that Iran Negron, aka “Face,” “Cara” and “Pete,” stored large quantities of the organization’s heroin at his Gilman Street residence, and also sold heroin and cocaine to his own customers. JOSE NEGRON, who is Iran Negron’s nephew, supplied heroin to Iran Negron and Angel Rosa, aka Mo Betta.
As a result of the investigation, 21 individuals were charged with various federal offenses, and law enforcement officers seized narcotics, one firearm, approximately $230,000 in cash, eight vehicles and jewelry.
NEGRON was arrested on April 12, 2013. On January 24, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
NEGRON’s criminal history includes convictions for sale of narcotics, larceny and failure to appear.
NEGRON, who has been residing in Manchester while released on a $150,000 bond, was ordered to report to prison on June 10.
Angel Rosa, aka “Little” and “Daddy,” Angel Rosa, aka “Mo Betta” and “Fab,” and Iran Negron have pleaded guilty. On April 29, 2014, “Mo Betta” was sentenced to 165 months of imprisonment. “Little” and Iran Negron await sentencing.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which included members of the Connecticut State Police, Hartford Police Department, East Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard. The Connecticut State Police’s Emergency Services Unit, Hartford Police Department’s Emergency Response Team, Capital Region Emergency Response Team, Drug Enforcement Administration, Homeland Security Investigations and the New Britain, East Hartford, Wethersfield and Manchester Police Departments have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.
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Tom Carson
(203) 821-3722 [email protected]Former Senior Clerk of Palm Beach County Health Department Sentenced for Her Role in an Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Salita St. Simon, 31, of Belle Glade, was sentenced by U.S. District Judge Kenneth A. Marra to 24 months in prison, followed by two years of supervised release. St. Simon was also ordered to pay restitution of $19,896.20.
St. Simon previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, one count of conspiracy to obtain and disclose individually identifiable health information, in violation of Title 18, United States Code, Section 371 and Title 42, United States Code, Sections 1320d-6(a)(2), (a)(3), and (b)(3), and one count of obtaining individually identifiable health information, in violation of Title 42, United States Code, Sections 1320d-6(a)(2) and (b)(3).
St. Simon was a senior clerk at a Palm Beach County Health Department (PBCHD) office in Belle Glade, Florida. As a senior clerk, St. Simon had access to the Health Management System (HMS) for the purpose of performing her job duties. HMS was a computerized database containing patient information, including names, dates of birth, and social security numbers, that PBCHD received and created during and in relation to the treatment of its patients. At sentencing, the Court found that St. Simon had stolen the social security numbers and other identifying information of 1,858 people. St. Simon stole patient information from HMS and gave it to several other people who were using the information to obtain refunds from the IRS.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former School Teacher Sentenced to 5 Years in Prison for Possessing and Distributing Child PornographyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RICHARD DOYLE, 65, formerly of Litchfield, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by five years of supervised release, for possessing and distributing child pornography. At the time of his arrest in December 2012, DOYLE was employed as a teacher at a private school in Connecticut.
According to court documents and statements made in court, in late October 2012, a law enforcement agent logged into a publicly available Internet file sharing program and downloaded images of child pornography from shared directories maintained by DOYLE. On December 4, 2012, the FBI executed a search warrant at DOYLE’s Litchfield residence. DOYLE was arrested after he admitted that he had used the file sharing program to obtain and trade child pornography. DOYLE further admitted that he had been viewing child pornography since the 1970’s, had used other computer programs to trade child pornography, and had purchased magazines containing child pornography.
DOYLE indicated that he had thousands of child pornography images in his collection, with some of boys as young as five, six or seven years old. He directed the FBI to a plastic container hidden under his workbench in the basement of his home, and indicated that the thumb drives in that container comprised his collection of child pornography, with the exception of some magazines that were still in the attic.
DOYLE stated that he only used his home computer system to download and view child pornography and never used his computer at the school where he was employed.
Pursuant to the search warrant, law enforcement seized a desktop computer and seven thumb drives. Examination of the computer and thumb drives revealed in excess of 4,000 image files and approximately six video files of child pornography.
On December 16, 2013, DOYLE waived his right to indictment and pleaded guilty to one count of receipt and distribution of child pornography.
DOYLE has been released on a $200,000 bond and residing with family members since shortly after his arrest on December 4, 2012. He was ordered to report to prison on July 7.
This case was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Connecticut State Police assisted the investigation. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
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(203) 821-3722 [email protected]Former New Jersey Transit Official Admits Agreeing to Accept $8,000 BribeRead the Press Release
NEWARK, N.J. – A former New Jersey Transit (NJ Transit) official today admitted she agreed to accept an $8,000 bribe and power washing services in connection with a snow removal contract, U.S. Attorney Paul J. Fishman announced.
Donna Schiereck, 56, of Jackson, N.J., pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging her with one count of agreeing to accept a bribe.
According to documents filed in this case and statements made in court:
From September 2012 to December 2012, Schiereck was a supervisor at NJ Transit. Schiereck agreed to accept $8,000 in exchange for her assistance with maintaining snow removal work for a Lakewood, N.J., company. She also sought and received free power washing services from the company in return for her official assistance.
The bribery count to which Schiereck pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 9, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and the N.J. State Police, under the direction of Col. Joseph R. Fuentes, superintendent of the state police, for the investigation leading to today’s guilty plea. He also thanked N.J. Attorney General’s Office, under the direction of Acting Attorney General John Hoffman, and Eli Honig, director of the N.J. Division of Criminal Justice, for their work on the investigation.
The government is represented by Assistant U.S. Attorney Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark and Special Assistant U.S. Attorney Michael A. Monahan, chief of the Financial and Computer Crimes Bureau, Division of Criminal Justice, N.J. Office of the Attorney General.
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Defense counsel: David A. Schwartz Esq., Eatontown, N.J.
Schiereck, Donna Information
Former Jpd Officer Sentenced to 25 Months in Prison for BriberyRead the Press Release
Jackson, Miss. – Former Jackson Police Officer Tony Davis, of Clinton, was sentenced in U.S. District Court today to 25 months in federal prison for bribery, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. He was also ordered to pay a $5,000.00 fine.
Davis pled guilty to the bribery charge in December, 2013, admitting that, while employed as a Patrol Sergeant with the Jackson Police Department in 2010, Davis advised another Jackson Police Officer that he would pay the officer $10,000 if he would assist Davis in disposing of an outstanding drug charge against a defendant Davis knew.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jerry Rushing.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Former Essex County, N.J., Sheriff’s Officer Sentenced to 15 Months in Prison for Collecting A Debt Through ExtortionRead the Press Release
Two Conspirators Sentenced to Probation
NEWARK, N.J. – A Monmouth County, N.J., man who formerly worked as a sheriff’s officer in Essex County was sentenced today to 15 months in prison for conspiring to collect a debt using extortionate means, U.S. Attorney Paul J. Fishman announced.John Balsamo, 50, of West Long Branch, N.J., previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an indictment charging him with using threats of violence and economic harm to collect a debt from the victim, an Ocean County, N.J., construction contractor. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Balsamo and conspirators Timothy Kelly, 38, of Jersey City, N.J., and Robert C. Bantang, Jr., 45, of Oceanport, N.J., used extortionate means in order to collect $50,000 the contractor owed to Kelly from 2009. The conspirators made the victim believe that the money he had borrowed from Kelly was owed to the “Old Man,” a member of organized crime who would cause physical harm to the victim if the debt was not paid. Balsamo also displayed a key to a construction site where the victim was working in Brick, N.J., and warned that the key could be used to gain access to, and cause damage to the site, due to the victim’s failure to fully repay the debt. Balsamo and Kelly sent Bantang to the construction site on three occasions to deliver threats purportedly on behalf of the “Old Man.”
On March 24, 2011, Balsamo and Kelly went to the Brick construction site, which was now a completed restaurant, to confront the victim. Kelly told the victim that if he had brought his “boys” that it would have gotten “done right in here, right in this place, right like this, in front of everybody . . . and your wife gets it too.” Kelly also told the victim that he deserved “a beatin’ just out of f- - kin’ principle.” Balsamo warned that the “Old Man” wanted to “beat the shit” out of the restaurant owner due to the victim’s failure to repay the debt, which Balsamo and Kelly now stated had grown to $70,000. Balsamo also advised the victim that the “Old Man” has been “promoted,” implying that the “Old Man” now possessed a higher position in organized crime.
Kelly and Bantang previously pleaded guilty in February 2012 to conspiring to collect a debt from the victim using extortionate means, before Judge Hayden. Kelly was sentenced today to three years of probation, including four months of house arrest and 40 hours of community service. Bantang was sentenced to three years of probation.
In addition to the prison term, Judge Hayden sentenced Balsamo to two years of supervised release and ordered him to pay restitution of $2,500 in cash and a Rolex watch he had taken from the victim.
Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of the N.J., State Commission of Investigation, under the direction of Executive Director Philip James Degnan, for the investigation leading to today’s sentencings.
The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Economic Crime Unit in Newark.
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Defense Counsel: Balsamo: John Yauch Esq., Assistant Federal Public Defender, Newark
Kelly: Timothy Donohue Esq., West Orange, N.J.
Bantang: Michael Baldassare Esq., NewarkFormer Corrections Officer Sentenced for Conspiring with Inmate to Smuggle Illegal Items into PrisonRead the Press Release
ASHLAND, KY - A former corrections officer at the Federal Corrections Institute (FCI) in Ashland, Ky., has been sentenced to federal prison for conspiring with an inmate and others to smuggle prohibited items into the prison.
U.S. District Judge David L. Bunning sentenced 46-year-old James Lewis on Monday to 15 months in federal prison. Under federal law, Lewis will have to serve at least 85 percent of his prison sentence.
According to court records, from December 2010 until February 2012, Lewis conspired with inmate Gary Musick, of Newport, Tenn., and Musick’s girlfriend, Cindy Gates, to introduce tobacco, marijuana, and nude photographs into the prison. Gates frequently visited the prison and gave the items to Lewis. Lewis subsequently provided the items to Musick, in exchange for payment from Gates and others.
Evidence at Musick’s trial, in March, established that he sold some of the prohibited items to other inmates. Musick was convicted of conspiracy to introduce contraband into a correctional facility and possession of contraband. Gates pleaded guilty to a misdemeanor conspiracy charge, prior to trial, and she was also sentenced on Monday; she received probation.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and John F. Oleskowicz, Special Agent in Charge, Department of Justice, Office of the Inspector General, Chicago Field Office, jointly announced the sentence.
The investigation was conducted by the Department of Justice, Office of the Inspector General. Assistant U.S. Attorneys Edwin J. Walbourn, III and Wade T. Napier prosecuted this case on behalf of the federal government.
Former Cape Cod Man Sentenced for Attempted Arson and Attempted Witness TamperingRead the Press Release
BOSTON – A former West Harwich man was sentenced today for attempting to recruit two homeless men to burn a West Harwich residence and then attempting to tamper with the witnesses of the criminal case.
Benjamin Parker, 29, was sentenced by U.S. District Judge George A. O’Toole to six years in prison and three years of supervised release. In March, Parker pleaded guilty to attempted arson, attempted kidnaping, and attempted witness tampering.
In September 2011, Parker solicited two homeless Boston men to burn residential rental property in West Harwich. The men immediately notified the authorities and then assisted in the ensuing investigation. Parker provided the men with materials to set the fire and explained when and how he wanted it started. Parker was arrested later that weekend.
In March 2012, Parker was charged with the attempted arson in federal court. He was released on conditions and was scheduled to plead guilty in July 2013. However, in June 2013 he traveled to Hartford, Conn. in violation of his conditions of release and attempted to hire a member of the Latin Kings street gang to kidnap and hold the men he had solicited to commit the arson. The individual Parker approached reported Parker’s activities to authorities and, like the two Boston men, assisted with the investigation. Parker was arrested on June 24, 2013 in upstate New York, where he was living with his family as part of his conditions of release.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Chief Paul MacMillan of the MBTA Police Department; Boston Police Commissioner William Evans; Stephen D. Coan, State Fire Marshal; Harwich Police Chief William Mason; and Hartford Police Chief David A. Groves, made the announcement today.
Former Army Contracting Official Indicted on Federal Charges in Bribery and Kickback SchemeDefendant Accused of Taking Cash, Vacations, and Other Benefits, Including Part Ownership of Two Companies Awarded Government ContractsRead the Press Release
WASHINGTON – In Seon Lim, a former contracting official for the U.S. Department of the Army, was arrested today following his indictment on federal bribery and other charges in a scheme in which he allegedly accepted more than $350,000 in cash, along with vacations and other benefits, from favored contractors.
The indictment was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
Lim, 48, of Fairfax Station, Va., also known as InSeon Lim, was indicted on May 8, 2014 in the U.S. District Court for the Eastern District of Virginia. The 10-count indictment, which was unsealed following today’s arrest, accuses Lim of one count of conspiracy, four counts of bribery, money laundering, a tax offense, and related charges. Lim made his initial court appearance today and was released pending a status hearing May 20, 2014.
Lim is the latest person to be charged in an investigation into domestic bribery, bid-rigging, and federal contracting. A total of 17 individuals and one corporation, Nova Datacom, LLC, have pled guilty to federal charges, and a second company, Saena Tech Corp., entered into a deferred prosecution agreement with the government.
The indictment provides notice that, if convicted, the United States will seek forfeiture of all proceeds of the charged offenses, including Lim’s house in Fairfax Station.
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“A federal grand jury has charged this Army official with taking more than $350,000 in cash, a Lexus, and a trip to the Bahamas in exchange for steering business to crooked contractors,” said U.S. Attorney Machen. “Seventeen people and one corporation have already pled guilty as part of this sweeping investigation into bribery in federal contracting. The wide reach of these prosecutions should send a clear message to corrupt public officials and contractors who use secret payoffs to cheat the system.”
“Accepting personal gifts in exchange for favorable action on government contracts steals from the American taxpayer and has no place in government contracting,” said Assistant Director in Charge Parlave. “Working together to protect federal funds, the FBI and our law enforcement partners will continue to ensure that those who commit fraud and corruption are brought to justice.”
“IRS Criminal Investigation is focused on cases in which greedy public officials, who for their own personal benefit, use their official position to accumulate ill-gotten wealth at a cost to the taxpayer,” said Special Agent in Charge Kelly. “The illegal activity detailed in the indictment regarding this bribery and kickback scheme was both extensive and significant. IRS Criminal Investigation, in conjunction with our law enforcement partners, is committed to investigating cases just like these.”
“Federal small business contracts are not pay-to-play,” said SBA Inspector General Gustafson. “Corruption, bribery, and deceitful actions will be rooted out of the system, and those responsible will be brought to justice. I want to thank our law enforcement partners and the U.S. Attorney’s Office for their cooperation and dedication to this investigation.”
“It's a sad day when the public's trust is shaken by the criminal acts of government officials who are entrusted to safeguard our taxpayer dollars, said DCIS Special Agent in Charge Craig. “However, today sends a strong message that DCIS, along with its investigative partners, will ensure prosecution of those individuals to the fullest extent of the law, no matter who they are or what position they hold.”
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According to the indictment, Lim was a public official until April 2012. The charges involve his activities as an assistant project manager and product director with the Program Executive Office Enterprise Information Systems, a part of the Army that provides infrastructure and informational management systems.
The indictment covers activities from May 2007 through October 2011.
Until June 2010, Lim resided and worked in Seoul, South Korea. While in South Korea, his primary duties were to oversee and implement communications systems upgrades for the U.S. forces there, which included approximately 10 communications centers and various other special projects at military sites throughout the country. Among other things, Lim coordinated work on a major contract, which, in turn, had numerous sub-contracts.
From June 2010 until his resignation in April 2012, Lim worked as a product director at Fort Belvoir, Va.
The indictment alleges that Lim secretly used his official position to enrich himself by soliciting and accepting gifts, payments and other things of value from government contractors in return for favorable official action. Among other things, the indictment alleges, Lim received payments personally and to accounts that he controlled; payments for travel, vacation, vehicles, cellphones and cellular service for himself and family members; payments for female escorts; ownership interests in two companies, and assistance in obtaining home financing.
The government contractors, meanwhile, enriched themselves by secretly obtaining favorable official action, the indictment alleges. At Lim’s direction, some of the contractors allegedly submitted fraudulent invoices for purported work that was not actually performed. Also at Lim’s direction, the indictment alleges, these contractors then paid him a portion of the proceeds generated by the fraudulent invoices.
The indictment provides details about numerous contracts and payments. For example:
-Nova Datacom: According to the indictment, two former employees of the company - Alex N. Cho, also known as Young N. Cho, and Nick Park - separately paid Lim a total of $50,000 in cash in 2007. In addition, Park paid for Lim’s travel, lodging, meals and entertainment during a trip to the Philippines in 2007, and Cho paid for lodging and a $1,000 casino chip during a trip later that year to Las Vegas, the indictment alleges.
-Avenciatech: According to the indictment, two former officials of Avenciatech, Inc., a government contractor based in Annandale, Va., provided Lim with cash and an ownership interest in the company in exchange for official action. For example, the indictment alleges, one of the former officials - Oh Song Kwon, also known as Thomas Kwon - provided Lim with cash payments; payments for hotel stays for Lim and family members, including a trip to the Atlantis resort in the Bahamas; payments to finance the purchase of a 2010 Lexus automobile, and payments for other things of value. Kwon also assisted Lim in obtaining financing for the purchase of a home in Fairfax Station, Va., where Lim resided following his reassignment in 2010 to a position at Fort Belvoir.
- UEI:Nick Park left Nova Datacom in 2007 and co-founded another government contractor, Unisource Enterprise Inc. (UEI), based in Annandale, Va. According to the indictment, in exchange for favorable treatment, Park provided Lim with a secret ownership in UEI. Among other things, Lim allegedly provided Park with sensitive procurement information.
-Saena Tech: According to the indictment, a former official with Saena Tech, which was based in South Korea, provided Lim with $70,000 in cash; payments for meals, entertainment, and an automobile, and $175,000 of the proceeds generated by a fraudulent invoice.
Cho, Park, and Kwon are among those who earlier pled guilty to charges in the case.
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An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This investigation is being conducted by the FBI’s Washington Field Office; the Washington Field Office of the Internal Revenue Service-Criminal Investigation, the Office of the Inspector General for the Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency, and the Army Criminal Investigation Command. It is being prosecuted by Assistant U.S. Attorneys Michael K. Atkinson and Bryan Seeley of the Fraud and Public Corruption Section and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section, all of the U.S. Attorney’s Office for the District of Columbia, and Assistant U.S. Attorney Jack Hanly, of the U.S. Attorney’s Office for the Eastern District of Virginia.
14-112Former Army Assistant Inspector General Pleads Guilty to Fraud Scheme Targeting Identities of U.S. Army OfficersRead the Press Release
James Robert Jones, 43, of Woodlawn, Tennessee pleaded guilty today in connection with a scheme to obtain fraudulent bank loans using the stolen identities of active duty U.S. Army officers, announced David Rivera, United States Attorney for the Middle District of Tennessee. At a hearing today before U.S. District Court Judge Aleta A. Trauger, Jones entered a plea of guilty to one count of bank fraud, one count of making a false statement to a bank, one count of making a false statement to federal agents, and one count of obstructing justice.
At his plea hearing, Jones, a former Assistant Inspector General with the U.S. Army Office of Inspector General at Fort Campbell, admitted abusing his position to obtain personal identifying information, including Social Security numbers and dates of birth, of active duty U.S. Army officers, including officers who were deployed to Afghanistan. Jones acknowledged that he used this personal identifying information to apply for loans in the officers’ names, that he obtained loans from two federally-insured financial institutions, and that he used the money from the loans for his own personal benefit. Jones further admitted that he attempted to conceal his scheme by asking a colleague to delete records found on his U.S. Army-issued laptop computer, and by seeking to cast blame for his crimes on a deceased U.S. Army officer, despite the fact that the deceased officer had no involvement in the scheme.Jones faces up to 30 years in prison for the counts of bank fraud and making a false statement to a bank, up to 20 years in prison for obstructing justice, and up to 5 years in prison for making false statements to investigators. Jones will be sentenced by Judge Trauger on August 11, 2014.
The case was investigated by the United States Secret Service and the U.S. Army Criminal Investigations Command at Fort Campbell. The United States is represented by Assistant U.S. Attorney William F. Abely.
Fifty South Florida Residents Charged as Part of Nationwide Coordinated Takedown by Medicare Fraud Strike Force OperationsRead the Press Release
90 Individuals Charged Nationally for Submitting Approximately $260 Million in Fraudulent Billing; South Florida Responsible for more than $65,701,885 in False Billings
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Attorney General Eric Holder, Daniel R. Levinson, Inspector General, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, Amy L. Parker, Assistant Special Agent in Charge, Eastern Region, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), Pam Bondi, Florida Attorney General, and Gerald Bailey, Commissioner, Florida Department of Law Enforcement (FDLE), announce that fifty (50) South Florida residents were charged for their alleged participation in various schemes to defraud Medicare out of more than $65,701,885. The charges in South Florida are part of a nationwide takedown by Medicare Fraud Strike Force operations in six cities that resulted in charges against 90 individuals, including doctors, nurses, licensed medical professionals and others, for their alleged participation in Medicare fraud schemes involving approximately $260 million in false billings.
U.S. Attorney Wifredo A. Ferrer stated, “Today, 50 defendants were charged in a number of schemes with defrauding our nation’s Medicare program here in South Florida. While some of the schemes were different, all of the defendants possessed the common goal of stealing from a program whose purpose is to provide the security of health care to seniors and the infirm. This is unacceptable. Hopefully, the sight of so many criminal defendants – from medical professionals to clinic owners to Medicare beneficiaries – being held accountable for their misdeeds will send a message of deterrence to those thinking Medicare fraud is a good idea. The efforts described today should also demonstrate that law enforcement in Miami will continue to fight the battle against health care fraud on all fronts. There is simply no safe harbor for Medicare fraudsters in South Florida.”
“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.”
“Today’s arrests demonstrate the effectiveness of our Strike Forces in combatting Medicare and Medicaid fraud,” said U.S. Department of Health and Human Services Inspector General Daniel R. Levinson. “Through seamless teamwork, our agents and law enforcement partners bring lawbreakers to justice, protect beneficiaries, and recover stolen taxpayer funds.”
“The actions of the FBI and our partners today have disrupted the operations of several health care fraud operations,” said George L. Piro, Special Agent in Charge, FBI Miami. “But, we need the public’s assistance. Report suspicious activity, inform your insurance company if you see charges on your explanation of benefits for services you did not receive and protect your insurance cards and other personally identifiable information.”
“Greed is the ultimate downfall of these criminals,” said Inspector in Charge Ronald Verrochio. “Today exemplifies the great work of the U.S. Postal Inspection Service and its law enforcement partners in combating fraud.”
“The work of this Strike Force should be a warning to all those who believe that they can defraud the Government with impunity,” said ASAC Amy L. Parker. “If you break the laws of the United States, if you put monetary gain above patient safety, you will be caught and you will be prosecuted. The OPM-OIG is committed to working with law enforcement organizations at all levels to ensure the safety of Federal employees, annuitants, and their dependents, as well as protecting taxpayer dollars.”
“The work of this Strike Force should be a warning to all those who believe that they can defraud the Government with impunity,” said ASAC Amy L. Parker. “If you break the laws of the United States, if you put monetary gain above patient safety, you will be caught and you will be prosecuted. The OPM-OIG is committed to working with law enforcement organizations at all levels to ensure the safety of Federal employees, annuitants, and their dependents, as well as protecting taxpayer dollars.”
“My Medicaid Fraud Control Unit is a proud partner in this nationwide takedown to stop Medicaid and Medicare fraud, which has resulted in charges being brought against dozens of people for defrauding these government programs,” stated Attorney General Pam Bondi. “We will continue to partner with federal, state and local agencies to uphold the integrity of the Medicaid program and to protect taxpayer dollars.”
Florida Department of Law Enforcement Commissioner Gerald Bailey said, “FDLE will continue to infiltrate these criminal organizations. These cases are complex and involve the authority and expertise of multiple law enforcement agencies; I appreciate their hard work.”
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 more than 1,900 defendants who collectively have falsely billed the Medicare program for more than $6 billion. In addition, CMS, working in conjunction with HHS-OIG, has temporarily stopped enrollments of high-risk providers in five Strike force locations and has removed over 17,000 providers from the Medicare program since 2011.
Specifically, the South Florida cases announced as part of the nationwide Medicare Fraud Strike Force takedown include:
1. United States v. Cecilia Valdes, Case No. 14-20297-CR-Williams
Cecilia Valdes, 46, of Miami, is charged with one count of conspiracy to commit health care fraud. The information filed against Valdes, a physical therapist, alleges that she was paid by therapy staffing service agencies to falsely and fraudulently certify that she had provided home health care physical therapy services to Medicare beneficiaries when she had in fact never done so. As the result of Valdes’ conduct, the Medicare program sustained losses of approximately $355,000. If convicted, Valdes faces up to ten years in prison.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.
2. United States v. Maria E. Ortiz, Case No. 14-20238-CR-Cooke
Maria E. Ortiz, 46, of Homestead, is charged with conspiracy to commit money laundering, substantive counts of money laundering, conspiracy to structure transactions to evade federal reporting requirements, and substantive counts of structuring transactions to evade reporting requirements. The indictment alleges that between November 2011 and June of 2012, Ortiz and others conspired to launder the proceeds of illegal health care kickbacks from Musomed Health Care Corp., a home health agency certified by Medicare. Ortiz and others allegedly withdrew kickback proceeds from banks in amounts less than $10,000 to evade the reporting of the transactions. If convicted, Ortiz faces up to 20 years in prison for each count of money laundering, and up to ten years for each count of structuring.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Eric E. Morales.
3. United States v. Yulianela Martinez, et.al., Case No. 14-20239-CR-Middlebrooks
Yulianela Martinez, 32, of Hialeah, Luisa Cladera, 53, of Hialeah, Leyma Sosa, 39, of Hialeah, and Miguel Delgado 41, of Hialeah, were charged with conspiracy to pay illegal kickbacks in relation to a federal health care program and with substantive counts of paying illegal kickbacks in relation to a federal health care program. The indictment alleges that between 2009 and 2012, the defendants offered and paid kickbacks and bribes to recruiters for the referral of Medicare beneficiaries to MCDS Home Health Group, a corporation purportedly providing skilled nursing services, physical therapy, occupational therapy, and home health aide services to Medicare beneficiaries. If convicted, the defendants face up to five years for each kickback count.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Amanda Perwin.
4. United States v. Israel Benigno Gil, Case No. 14-20263-CR-Middlebrooks
Israel Benigno Gil, 85, of Hialeah, is charged with two counts of receiving health care kickbacks. The indictment alleges that Gil was a Medicare beneficiary and received payments in return for ordering, arranging for, and recommending purchasing and ordering home health services. If convicted, Gil faces up to five years in prison for each kickback count.
Mr. Ferrer commended the investigative efforts of USPIS, HHS-OIG, and FBI. This case is being prosecuted by Assistant U.S. Attorney Robert T. Watson.
5. United States v. Miriam Castellanos, Case No. 14-20264-CR-Scola
Miriam Castellanos, 63, of Miami, is charged with conspiracy to commit health care fraud and eight counts of substantive health care fraud. The indictment alleges that Castellanos was president and owner of Professional Treatment Medical Center, Inc., and submitted false and fraudulent claims, causing Medicare to incur a loss of $1,473,504. If convicted, Castellanos faces up to ten years in prison for each count of health care fraud.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher Clark.
6. United States v. Miguel Espinosa and Luis Buzzi, Case No. 14-20317-CR-Cooke
Miguel Espinosa, 45, of Coral Springs, and Luis Buzzi, 50, of Hialeah, are charged with conspiracy to commit health care fraud, nine counts of substantive health care fraud, conspiracy to receive health care kickbacks, and substantive counts of receiving kickbacks. Espinosa and Buzzi were patient recruiters who allegedly received and paid kickbacks for referral of Medicare beneficiaries to Lord’s Medical. The indictment alleges that from Febrauty 2010 through July 2011, Lord’s Medical Rehab Center Inc. submitted $5,497,047 in false and fraudulent claims for medical services to Blue Cross Blue Shield, and was paid $2,346,416 of the submitted claims. If convicted, the defendants face up to ten years in prison for each count of health care fraud, and up to five years in prison for each kickback count.
Mr. Ferrer commended the investigative efforts of the FBI, HHS-OIG and Office of Personnel Management. This case is being prosecuted by Assistant U.S. Attorney Christopher Clark.
7. United States v. Manuel J. Chavez, Case No. 14-20321-CR-Ungaro
Manuel J. Chavez, 34, of Miami Beach, is charged with eight counts of health care fraud. The indictment alleges that Chavez submitted false and fraudulent claims for medications to Medicare Part D in connection with Pharma One, a pharmacy in Hialeah. An invoice reconciliation analysis of Pharma One drug purchases shows that it overbilled Medicare by approximately $1,381,278. If convicted, Chavez faces up to ten years in prison for each count of health care fraud.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher Clark.
8. United States v. Eduardo Perez de Morales, Case No. 12-20663-CR-Zloch(s)(s)
Eduardo Perez de Morales, 26, of Miami, is charged with one count of conspiring to launder the proceeds of health care fraud. According to Court records, Jorge Emilio Perez de Morales Sante, a fugitive defendant previously charged, operated a money remitting company that moved money from the United States to Cuba. The superseding indictment alleges that Jorge Emilio Perez de Morales and his brother Eduardo Perez de Morales laundered health care fraud proceeds through the money remitting company’s bank accounts. The United States is seeking forfeiture of $238,067,956. If convicted, Eduardo Perez de Morales faces up to 20 years in prison.
Mr. Ferrer commended the investigative efforts of the Florida Department of Law Enforcement and the FBI. This case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson.
9. United States v. Yamile Calvo-Gonzalez, Case No. 14-20288-CR-Lenard
Yamile Calvo-Gonzalez, 41, of Miami, the owner of WY Medical Group and Rehabilitation Services Inc., is charged with conspiracy to commit health care fraud, substantive health care fraud, conspiracy to receive health care kickbacks and substantive receipt of kickbacks. The indictment alleges that Calvo-Gonzalez and her co-conspirators submitted and caused the submission of false and fraudulent claims to Medicare and Florida Medicaid for home health services that were neither medically necessary or actually provided. The indictment further alleges that the defendant acted as a patient recruiter and received kickbacks and bribes from co-conspirator home health agency owners for referring beneficiaries to serve as patients. If convicted, Calvo-Gonzalez faces up to ten years in prison for each count of health care fraud, and up to five years in prison for each kickback count.
Mr. Ferrer commended the investigative efforts of the Florida Attorney General Medicaid Fraud Control Unit and HHS-OIG. This case is being prosecuted by Special Assistant U.S. Attorney Hagerenesh Simmons from the Florida Attorney General’s Office, Medicaid Fraud Control Unit.
10. United States v. Igor Iturriaga, Ovidio Iturriaga and Esther Lopez, Case No. 14-20324-CR-Moore
Igor Iturriaga, 45, Ovidio Iturriaga, 71, and Esther Lopez, 54, all of Miami, were charged with conspiracy to pay and receive health care kickbacks in relation to a federal health care program, receipt of health care kickbacks in connection with a federal health care program, conspiracy to commit money laundering, and substantive counts of money laundering. The indictment alleges that in 2012, the defendants cashed checks for their co-conspirators, knowing that the cash they provided to their co-conspirators would be used to pay kickbacks to patient recruiters who provided Medicare beneficiaries to home health care agencies Miami United Home Health Care, Inc. and TGR Home Health Care, Inc. The defendants acted as patient recruiters and also accepted kickbacks from their co-conspirators in return for referring Medicare beneficiaries to Miami United and TGR for home health services. The defendants and their co-conspirators used the beneficiary information obtained through the payment of bribes and kickbacks to cause Miami United and TGR to submit claims to Medicare for home health services purportedly provided to the recruited Medicare beneficiaries. If convicted, the defendants face up to 20 years in prison on the money laundering counts, and up to five years in prison on the kickback counts.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Robert T. Watson.
11. United States v. Jesus Fundora and Carlos Manuel Perez Gomez, Case No. 14-20287-CR-Altonaga
Jesus Fundora, 36, and Carlos Manuel Perez Gomez, 50, both of Miami, are charged with conspiracy to commit health care fraud as well as 12 counts of substantive health care fraud. The indictment alleges that the defendants filed false and fraudulent prescription drug claims under Medicare Part D through Kiara Pharmacy, and as a result of those false and fraudulent claims, Medicare sustained a loss of over $6 million. If convicted, the defendants face up to ten years in prison for each count of health care fraud.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Jon M. Juenger.
12. United States v. Adalberto Perez Peguero, Maydelin Matos Fernandez, Roberto Rogelio Rojas and Maria Arce, Case No. 14-20266-CR-Lenard(s)
Adalberto Perez Peguero, 42, Maydelin Matos Fernandez, 34, Roberto Rogelio Rojas, 72, all of Miami, and Maria Arce, 57, of Miami Beach, are charged with conspiracy to commit health care fraud, and Perez Peguero, Matos Fernandez and Arce are charged with substantive counts of health care fraud as well. The indictment also charges Perez Peguero with paying kickbacks, and Rogelio Rojas and Arce with receiving kickbacks. The indictment alleges that Perez Peguero managed and operated Alephzayn Health Services and he offered and paid kickbacks and bribes to patient recruiters, including Rogelio Rojas, in return for referring beneficiaries so that he and Matos Fernandez could bill Medicare, through Alephzayn, for services that were not medically necessary and provided. The indictment further alleges that beneficiaries, including Arce, solicited and accepted bribes and kickbacks in exchange for permitting their beneficiary information to be used to submit false and fraudulent claims to Medicare. If convicted, the defendants face up to ten years in prison for each count of health care fraud, and up to five years in prison for each kickback count.
Mr. Ferrer commended the investigative efforts of USPIS, HHS-OIG and FBI. This case is being prosecuted by Assistant U.S. Attorney James V. Hayes.
13. United States v. Joel Diaz Reyes and Miguel Gonzalez, Case No. 14-20292-CR-Scola(s)
Joel Diaz Reyes, 42, and Miguel Gonzalez, 41, both of Miami, are charged with conspiracy to commit health care fraud, substantive counts of health care fraud, conspiracy to pay and receive health care kickbacks, and substantive counts of paying and receiving health care kickbacks. The indictment alleges that the defendants recruited Medicare beneficiaries to Santa Barbara Pharmacy in order to cause the submission of false and fraudulent claims to Medicare for drugs that were not medically necessary and were never provided. The defendants also allegedly offered and paid kickbacks and bribes to Medicare beneficiaries and caused false and fraudulent prescriptions to be created for those beneficiaries. If convicted, the defendants face up to ten years for each count of health care fraud, and up to five years for each kickback count.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James V. Hayes.
14. United States v. Luisa Isabel Vega, Case No. 14-2530-CR-Simonton
Luisa Isabel Vega, 57, of Miami, is charged by criminal complaint with health care fraud. Vega was the owner of AB Pharmacy, which billed Medicare Part D for dispensed prescription drugs, and as a result of those claims, received $8.4 million. However, an invoice reconciliation by government agents showed that AB Pharmacy did not buy enough of the drugs billed for to support the amount the pharmacy was paid for dispensing those drugs. As a result, AB Pharmacy received $4.2 million for drugs that it never dispensed. Interviews with beneficiaries revealed that many had been paid kickbacks by patient recruiters in return for allowing AB Pharmacy to submit fraudulent claims to Medicare using their beneficiary information, and many had never received the billed-for medications. If convicted, Vega faces up to ten years for each count of health care fraud.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Jon M. Juenger.
15. United States v. Alexander Gonzalez and Virgilio Zayas, Case No. 14-20334-CR-Cooke
Alexander Gonzalez, 37, and Virgilio Zayas, 65, both of Miami, are charged with conspiracy to pay and receive health care kickbacks. Gonzalez is also charged with thirteen substantive counts of paying kickbacks and Zayas is also charged with two substantive counts of receiving kickbacks. Gonzalez managed and operated a Miami-based HHA, Suncare Home Health Services, Inc. ("Suncare"), which purportedly provided home health therapy to Medicare beneficiaries. Gonzalez paid patient recruiters kickbacks for referring patients to Suncare. Patient recruiters would buy home health prescriptions from doctors in the area and paid beneficiaries a kickback for serving as patients. Zayas was paid kickbacks as both a patient recruiter and for serving as a beneficiary himself at Suncare. The defendants face up to five years in prison for the conspiracy charge, and up to five years in prison for each substantive count.
Mr. Ferrer commended the investigative efforts of USPIS. This case is being prosecuted by Assistant U.S. Attorney James V. Hayes.
16. United States v. Yenisey Suarez, et al., Case No. 14-20322-CR-Williams
Yenisey Suarez, 36, of Miami, Lourdes Duarte, 41, of Hialeah, and Erick Armando Juarez, 32, of Miami, are charged with one count of conspiracy to defraud the United States and receive health care kickbacks and two counts each of receipt of kickbacks in connection with a federal health care program. The indictment alleges that the defendants were patient recruiters for defunct home health care company Starlite Home Health Care Inc. (Starlite Home Health). The defendants are alleged to have solicited and received kickbacks and bribes from the owner and operator of Starlite Home Health in return for recruiting patients to Starlite Home Health and allowing the company to bill the Medicare program on behalf of the recruited patients for home health care and therapy services that were not medically necessary and/or were not provided. As alleged in the indictment, between approximately May 2010 through May 2013, Starlite Home Health submitted over $8 million in fraudulent claims to Medicare and was reimbursed approximately $3 million by Medicare. If convicted, the defendants face up to five years in prison for each kickback count.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Trial Attorney Kelly Graves of the Criminal Division’s Fraud Section.
17. United States v. Abigail Aguila, Estrella Perez, Solchys Perez, and Monica Macias, Case No. 14-20300-CR-Moore
Abigail Aguila, 40, of Miami, Estrella Perez, 57, of Coral Gables, Solchys Perez, 34, of Miami, and Monica Macias, 52, of Miami, are charged with conspiracy to defraud the United States and receive health care kickbacks. Solchys Perez and Estrella Perez are also charged with conspiracy to commit health care fraud and with receiving kickbacks in connection with a federal health care program. The indictment alleges that the defendants participated in a scheme involving Trust Care Health Services, Inc. (Trust Care). The defendants allegedly supplied Medicare beneficiaries to Trust Care in exchange for kickbacks and bribes. Trust Care, in turn, fraudulently billed Medicare for more than $20 million for home health services that were not provided and/or were not medically necessary. If convicted, the defendants face up to ten years in prison for the health care fraud charge, and up to five years in prison for each kickback-related charge.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
18. United States v. Cruz Sonia Collado, Case No. 14-20302-CR-Scola. United States v. Euridice Borroto, Case No. 14-20310-CR-Lenard
Cruz Sonia Collado, 64, of Homestead, and Euridice Borroto, 45, of Miami, are charged with conspiracy to defraud the United States and pay health care kickbacks. Collado also faces substantive kickback charges. The indictment alleges that Cruz Sonia Collado orchestrated a scheme involving Nestor’s Health Services, Inc. (Nestor’s). As owner and operator of Nestor’s, the defendant paid kickbacks and bribes to patient recruiters, in exchange for the recruiters providing Medicare beneficiaries to Nestor’s for purported home health and therapy services. Nestor, in turn, fraudulently billed Medicare for approximately $6.5 million for home health care services purportedly provided to the Medicare beneficiaries. Euridice Borroto was a patient recruiter who solicited patients to participate in the scheme at Nestor’s. If convicted, the defendants face up to five years in prison for each count charged.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
19. United States v. Annarella Garcia and Annilet Dominguez, Case No. 14-20301-CR-Moreno
Annarella Garcia, 44, and Annilet Dominguez, 27, both of Hialeah, are charged with conspiracy to commit health care fraud. Dominguez is also charged with substantive counts of making false statements related to health care matters, and the other defendant is also charged with money laundering. The indictment alleges that the defendants participated in a scheme involving Professional Medical Home Health LLC. (Professional Home Health). The defendants and their co-conspirators submitted false and fraudulent claims for home health services that were not provided and/or were not medically necessary. In turn, Medicare paid Professional Home Health approximately $6 million for services purportedly provided to Medicare beneficiaries. If convicted, the defendants face up to 20 years in prison for the money laundering charge, up to ten years in prison for the health care fraud charge, and up to five years in prison for each false statement charge.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
20. United States v. Armando Buchillon and Lizette Garcia, Case No. 14-20299-CR-Lenard
Armando Buchillon, 42, of Miami, is charged with conspiracy to commit health care fraud and substantive health care fraud. Lizette Garcia, 37, of Hialeah, is charged with payment of kickbacks in connection with a federal health care program. The indictment alleges that the defendants participated in a scheme involving Anna Nursing Services Corp. Buchillon, a registered nurse, was Anna Nursing’s Director of Nursing. Garcia was a receptionist and office worker. The defendants paid kickbacks and bribes to patient recruiters, in exchange for the recruiters providing Medicare beneficiaries to Anna Nursing for purported home health and therapy services. As a result of the submission of fraudulent claims on behalf of these beneficiaries, Medicare paid Anna Nursing more than $7 million for purported home health services. If convicted, the defendants face up to ten years in prison for each heath care fraud charge, and up to five years in prison for the kickback-related charge.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
21. United States v. Barry Kaplowitz, M.D., Christopher Gabel, Melvin Hunter and Tiffany Foster, Case No. 14-20323-CR-Altonaga
Barry Kaplowitz, M.D., 53, of Aventura, Christopher Gabel, 61, of Davie, Melvin Hunter, 61, of Davie, and Tiffany Foster, 47, of Alabama, are charged with participating in a conspiracy to commit health care and wire fraud arising from claims made to Medicare by Hollywood Pavilion, LLC (“HP”), a state licensed psychiatric hospital located in Hollywood that purportedly provided inpatient and outpatient psychiatric care to Medicare beneficiaries. Dr. Barry Kaplowitz is also charged with health care fraud and false statements relating to health care matters related to claims HP made to Medicare for patients that he purportedly treated. Christopher Gabel, Melvin Hunter and Tiffany Foster are also charged with participating in a conspiracy to pay illegal bribes and kickbacks to patient brokers and causing claims to be submitted for Medicare beneficiaries who were procured through bribes and kickbacks. The indictment alleges that from at least 2003 through September 2012, HP billed Medicare more than $67 million for services that were never rendered, for patients that did not qualify for the services being billed, and for claims that were procured through bribes and kickbacks. If convicted, the defendants face up to 20 years in prison for wire fraud, up to 10 years for health care fraud, and up to five years for the false statements and the kickback counts
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Trial Attorney Nicholas Surmacz of the Criminal Division’s Fraud Section.
22. United States v. Gabriel Delgado and Guillermo Delgado, Case No. 14-2581-Otazo Reyes
Guillermo Delgado, 42, and Gabriel Delgado, 41, both of Miami, are charged with conspiracy to defraud the United States and receive health care kickbacks, receipt of kickbacks in connection with a federal health care program and conspiracy to commit money laundering. As alleged in the complaint, the defendants are patient recruiters who controlled numerous patients residing in Assisted Living Facilities (ALFs) located in the Miami area and referred them to pharmacies, home health agencies, and community mental health centers among other Medicare providers in exchange for kickback payments. The complaint also alleges that the defendants led a money laundering scheme with Jose Morales, the owner and operator of Morales Pharmacies whereby the defendants would provide checks to Morales for him to cash through a Western Union franchise operated by Morales. The complaint alleges that the defendants and Morales submitted and caused to be submitted approximately $23,367,755.07 in false and fraudulent claims to the Medicare and Florida Medicaid programs. Morales pleaded guilty in December 2012 to one count each of health care fraud and payment of kickbacks for his role in the scheme. If convicted, the defendants face up to five years in prison for each kickback count, and up to 20 years for the money laundering conspiracy.
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.
23. United States v. Nelson Salazar, Case No. 14-20326-CR-Martinez
Nelson Salazar, 45, of Miami, is charged with conspiracy to commit health care fraud. The information filed against Salazar alleges that he was a patient recruiter for American Therapeutic Corporation (ATC) who would pay and receive kickbacks in exchange for referring Medicare beneficiaries to attend ATC. The information further alleges that Salazar and others caused false and fraudulent claims to be submitted to Medicare for services purportedly provided at ATCs locations. If convicted, the defendant faces up to ten years in prison.
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.
24. United States v. Francisco Pabon, Case No. 14-20327-CR-Ungaro
Francisco Pabon, 64, of Miami, is charged with conspiracy to commit health care fraud. The information filed against Pabon alleges that he was a mental health technician and social worker at an inpatient psychiatric hospital located in Miami, and he received illegal health care kickbacks in exchange for referring inpatient psychiatric patients to Health Care Solution Network (HCSN). The information further alleges that Pabon and his co-conspirators submitted and caused to be submitted claims to Medicare and Medicaid in an approximate amount of $63 million for partial hospitalization program services that were not medically necessary and were not provided at HCSN in Florida and North Carolina. If convicted, the defendant faces up to 10 years in prison.
Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Trial Attorney Allan Medina of the Criminal Division’s Fraud Section.
25. United States v. Lazaro Martinez, Case No. 14-20329-CR-Cooke
Lazaro Martinez, 72, of Miami, was a patient recruiter who received illegal health care kickbacks from Jose Carlos Morales, the former owner and operator of the Morales Pharmacies, and, in turn, paid illegal health care kickbacks to owners and operators of assisted living facilities located in Miami. Morales agreed to pay illegal health care kickbacks to patient recruiters like Martinez to guarantee a stream of beneficiary information to be used to submit false and fraudulent claims to Medicare and Medicaid. If convicted, the defendant faces up to five years in prison.
Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Trial Attorney Allan Medina of the Criminal Division’s Fraud Section.
26. United States v. Michael Mendoza, Case No. 14-20328-CR-Lenard
Michael Mendoza, 45, of Miami, is charged with conspiracy to commit health care fraud. The information filed against Mendoza alleges that Mendoza was a patient recruiter for American Therapeutic Corporation (ATC), which purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness. As further alleged in the information, Mendoza agreed with the owner of ATC and others to refer patients to ATC in exchange for kickbacks. According to the information, the PHP services for which the patients were referred to ATC were not medically necessary and not provided. If convicted, the defendant faces up to ten years in prison.
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.
An indictment and information are merely charges and defendants are presumed innocent until proven guilty.
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.
Fifth and Final Defendant Sentenced in the Treasure Valley Meth Distribution RingRead the Press Release
BOISE B Mexican national Luis Angel Nunez-Leon, 25, a Mexican national illegally in the United States, was sentenced yesterday to 30 months in prison followed by three years of supervised release for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge John C. Coughenour, visiting from the Western District of Washington, also ordered Nunez-Leon to forfeit $6,060 in United States currency seized during the investigation.
Nunez-Leon pled guilty on November 26, 2013. During his plea hearing, Nunez-Leon admitted driving co-Defendant Angel Valdez-Soto to and from a drug transaction in Caldwell, Idaho on April 11, 2011. Nunez-Leon admitted knowing that Valdez-Soto had arranged to distribute 55 grams of methamphetamine. During the transaction, Valdez-Soto distributed 55 grams of methamphetamine to a confidential informant.
Four co-defendants have been sentenced. Angel Valdez-Soto, a Mexican national, was sentenced on May 22, 2012 to 108 months in prison followed by five years of supervised release for distributing methamphetamine. Roy Brian Coolidge of Nampa, Idaho, was sentenced on April 2, 2012 to 57 months in prison followed by five years of supervised release for conspiracy to distribute methamphetamine. Jose Romos-Gonzales, a Mexican national, was sentenced on June 5, 2012 to 188 months in prison, followed by five years of supervised release for distributing methamphetamine. Jose Gregorio Valenzuela-Favela, a Mexican national, was sentenced on February 19, 2014 to 57 months in prison for distributing methamphetamine.
"These sentences demonstrate that those who poison our communities and our youth with methamphetamine will serve long sentences in federal prisons,@ said Olson. AState and federal law enforcement officers throughout Idaho will work together to ensure that drug traffickers are caught, prosecuted and convicted."
The case was investigated by the Boise Police Department Narcotics Unit, the Drug Enforcement Administration (DEA) and the Nampa Police Department.
Federal Authorities Arrest Suspended Catholic PriestRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a four-count indictment against Israel Berríos-Berríos, a suspended Catholic priest, for sex trafficking of children and transporting a minor with the intent to engage criminal sexual conduct, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
The indictment alleges that from in or about the year 2007, through in or about 2008, Berríos-Berríos, while affecting interstate commerce, did knowingly recruit, entice, harbor, transport, provide, obtain and maintain, a 14-15 year-old male, identified as “John Doe,” knowing that said minor had not attained the age of 18. Defendant transported minor “John Doe” in an automobile owned and used by the San José Parish, from Aibonito, PR, to the defendant’s residence located in Naranjito, PR, knowing that “John Doe” would engage in a commercial sex act.
From on or about July 21, 2008, through on or about July 30, 2008, the defendant transported “John Doe” to the City of Miami, Florida, where together they took a four-day cruise to the Bahamas aboard the vessel known as “Majesty of the Seas,” knowing that minor “John Doe” would engage in a commercial sext act.
“Unfortunately, sexual abuse of children has become all too common in Puerto Rico,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The USAO for the District of Puerto Rico is committed to taking full advantage of our investigative tools in order to protect our children from sexual predators. I urge the public to be on the lookout for children being transported anywhere within Puerto Rico for the purpose of engaging in any sexual activity, and to contact the authorities immediately.”
The case is being prosecuted by Assistant U.S. Attorney Marshal D. Morgan, Coordinator of the initiative Project Safe Childhood. If convicted, the defendant faces a mandatory minimum sentence of incarceration of ten years and a possible maximum statutory penalty of life imprisonment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
“These allegations are especially disturbing given the position of trust the defendant has occupied,” said Ángel M. Meléndez, special agent in charge of HSI San Juan. “Identifying people who violate their positions of public trust by contributing to the exploitation of children is a top priority for HSI. Anyone who targets children for sexual exploitation should also consider themselves a target by HSI and by our law enforcement partners regardless of who they are. We have an obligation to protect those most vulnerable in our society who cannot protect themselves.”
A criminal indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Essex County, N.J., Man Arrested in Multi-Million Dollar Real Estate Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man was arrested at his home by federal law enforcement officers this morning on charges that he allegedly ran a real estate investment scheme that bilked victims out of $4 million, U.S. Attorney Paul J. Fishman announced today.
Abbe Edelman, 50, of Livingston, is charged by complaint with six counts of wire fraud. He is scheduled to make his initial court appearance later today before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the complaint: Beginning in 2004, Edelman operated through several companies alleged to be in the business of buying and selling real estate. He allegedly engaged in a real estate investment fraud in which he obtained millions of dollars from victims who invested in his scheme. Edelman told investors that he had significant past real estate experience, including a purported history of successfully buying and selling numerous bank foreclosed properties, and an MBA degree from NYU in real estate finance. Edelman claimed that he had long standing relationships with banks that provided him with unique access to purchase foreclosed properties below market prices and, in fact, already had negotiated with the banks to purchase certain properties at agreed-upon prices that would guarantee an easy resale and profit for investors.
Edelman promised investors that any investment would be used solely for the purchase and renovation of specific investment properties in, among other places, New York, New Jersey, California, and Florida. Edelman represented to his investors that he could obtain extraordinary returns – as much as 25 percent – in as little as eight to 12 months. Edelman allegedly told some victims he had received from other investors, including professional athletes and celebrities, the majority of the capital needed to purchase the investment properties. He also said he provided cash deposits to the financial institutions to secure the right to purchase the investment properties and invested his own money in the deals.
In reality, neither Edelman nor any of his real estate companies had a history of purchasing any bank foreclosed properties. Edelman also did not possess even an undergraduate degree. He did not have any deals lined up involving any investment properties, did not have his own money invested in any such deals, and did not have any money from celebrity investors. Edelman induced investors to give him $4 million and used little, if any, of it to fund any real estate acquisitions or renovations, instead diverting the funds for his own use.
He allegedly used the funds for his home mortgage and day-to-day living expenses, such as restaurants, telephone, and gas bills, purchased merchandise from high-end retailers, such as Gucci and Neiman Marcus, repaid existing investors in Ponzi-scheme fashion and paid his legal expenses in connection with victims seeking repayment of their investment.When investors later inquired about the status of their investments, Edelman offered additional misrepresentations, including emails sent from a fake email account he had created, falsely assuring investors that he and his company had closed on the foreclosed properties, sometimes telling them buyers for the properties already had been identified.
In some cases, to allow the scheme to continue undetected, Edelman made “lulling” payments to investors, ranging from $100 to tens of thousands of dollars, to permit the scheme to continue. When payments were made to any investors, Edelman generally represented that the money was from the sale of investment properties, when, in fact, it came from a new investor.The wire fraud counts with which he is charged each carry a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited criminal investigators with the U.S. Attorney’s Office and postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s arrest.
The charges and allegations against Edelman are merely accusations and he is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky of the Economic Crimes Unit and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
Today’s arrest is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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Edelman, Abbe Complaint
Eric Pack of Burlington Sentenced to 60 Months for Distribution of Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Eric Pack, 54, of Burlington, Vermont was sentenced on May 13, 2014 for distribution of crack cocaine. Judge J. Garvan Murtha, sitting in Brattleboro, sentenced Pack to 60 months in prison, to be followed by three years of supervised release.
According to court records, the Burlington Police Department conducted controlled purchases of crack cocaine from Pack in February and March 2013. At the time Pack was selling crack cocaine, he was on probation with the State of Vermont for possession of stolen property. Pack was arrested in June 2013 and plead guilty on January 23, 2014 to a two-count information charging him with distribution of crack cocaine.
This matter was investigated by the Burlington Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Border Patrol, with the assistance of the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorney Kevin J. Doyle. Pack is represented by Elizabeth D. Mann, Esq.
Dallas-Based Physician and Home Health Agency Director of Nursing Convicted in $3 Million Medicare Fraud ConspiracyRead the Press Release
Late yesterday, a federal jury in the Northern District of Texas convicted a physician and a home health agency manager for their participation in a $3 million Medicare fraud conspiracy.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, Special Agent in Charge Diego Rodriguez of the FBI Dallas Division and Special Agent in Charge Mike Fields of the Dallas office of the Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations made the announcement.
Joseph Megwa, M.D., and Ebolose Eghobor, R.N., were convicted of one count of conspiracy to commit health care fraud, and Megwa was convicted of three substantive counts of health care fraud. Eghobor was acquitted of the three substantive health care fraud counts brought against him. The home health care charges related to a scheme involving PTM Healthcare Services Inc. (PTM), which was owned and operated by Ferguson Ikhile, R.N. Ikhile pleaded guilty in 2013 to conspiracy to commit health care fraud.
According to evidence presented at trial, from approximately 2006 to 2011, PTM recruited Medicare beneficiaries so that PTM could bill Medicare for unnecessary home health services. Ikhile, Eghobor and others then prepared fraudulent medical records that made it appear that the beneficiaries needed home health services. In exchange for cash payments, Megwa, who owned and operated Raphem Medical Practice P.A., falsely certified that the beneficiaries needed home health services and that the services otherwise qualified for payment under Medicare.
Megwa was also convicted of four counts of making false statements related to a health care benefit program based on his submission of false claims to Medicare for home visits or house calls to patients that he never actually made.
The investigation was led by the FBI, HHS-OIG and the Medicaid Fraud Control Unit of the Office of the Texas State Attorney General and was brought by the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office for the Northern District of Texas and the Criminal Division’s Fraud Section. The case was prosecuted by Deputy Chief Jeffrey A. Goldberg and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.Dallas-Based Physician and Home Health Agency Director of Nursing Convicted in $3 Million Medicare Fraud ConspiracyRead the Press Release
Physician Was Also Convicted of Lying to Medicare about House Calls
DALLAS – Late yesterday, a federal jury in the Northern District of Texas convicted a physician and a home health agency manager for their participation in a $3 million Medicare fraud conspiracy.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, Special Agent in Charge Diego Rodriguez of the FBI Dallas Division and Special Agent in Charge Mike Fields of the Dallas office of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement today.
Joseph Megwa, M.D., 60, of Arlington, Texas, and Ebolose Eghobor, R.N., 49, of Grand Prairie, Texas, were convicted of one count of conspiracy to commit health care fraud, and Megwa was convicted of three counts of health care fraud. Eghobor was acquitted of the health care fraud counts brought against him. The home health care charges related to a scheme involving PTM Healthcare Services Inc. (PTM), which was owned and operated by Ferguson Ikhile, R.N. Ikhile, 56, of Irving, Texas, pleaded guilty in 2013 to conspiracy to commit health care fraud.
According to evidence presented at trial, from approximately 2006 to 2011, PTM recruited Medicare beneficiaries so that PTM could bill Medicare for unnecessary home health services. Ikhile, Eghobor and others then prepared fraudulent medical records that made it appear that the beneficiaries needed home health services. In exchange for cash payments, Megwa, who owned and operated Raphem Medical Practice P.A., falsely certified that the beneficiaries needed home health services and that the services otherwise qualified for payment under Medicare.
Megwa was also convicted of four counts of making false statements related to a health care benefit program based on his submission of false claims to Medicare for home visits or house calls to patients that he never actually made.
The conspiracy to commit health care fraud count and each of the substantive health care fraud counts carry a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Each count of making false statements relating to health care matters carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered. U.S. District Judge Ed Kinkeade is scheduled to sentence Megwa and Eghobor on September 10, 2014 and Ikhile on May 28, 2014.
The investigation was led by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office for the Northern District of Texas and the Criminal Division’s Fraud Section. The case was prosecuted by Deputy Chief Jeffrey A. Goldberg and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mindy Sauter and Michael Elliott of the Northern District of Texas.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Dallas Couple Face up to Life in Federal Prison After Pleading Guilty to Conspiracy and Sex Trafficking of Children OffensesRead the Press Release
DALLAS — A couple from Dallas, Erin Patton and Keith Williams, aka “Chucky Blood,” both 24, have pleaded guilty to their respective roles in sex trafficking a child, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Patton pleaded guilty to a superseding information charging one count of conspiracy to commit sex trafficking of children. Her boyfriend, Williams, pleaded guilty in February 2014 to one count of sex trafficking of children. Both Patton and Williams face a maximum statutory penalty of life in prison and a $250,000 fine. U.S. District Judge David C. Godbey will sentence the defendants this summer.
According to documents filed in the case, in September 2012, after she ran away from home, 14-year-old “Jane Doe” met Erin Patton. Patton let Jane Doe stay with her, and Patton facilitated Jane Doe’s engaging in commercial sex acts by driving her to locations where the acts occurred and providing her a cell phone so she could post her services on “Mocospace” and Backpage.com. Jane Doe gave Patton a portion of the money she earned from engaging in the sex acts.
Again, in November 2012, after she again ran away from home, Jane Doe contacted Patton. This time, both Patton and Williams picked up Jane Doe and posted her availability to engage in commercial sex acts on Backpage.com. While Williams went to serve a jail sentence shortly thereafter, Patton continued facilitating Jane Doe’s commercial sex acts. Jane Doe eventually left.
In April 2013, Jane Doe again contacted Patton and told her she was still in school, but wanted to leave and wanted Patton to pick her up. Patton and Williams agreed to let Jane Doe stay with them, but they told her she was going to have to engage in commercial sex acts, as she had done in the past, to pay for her expenses. Williams and/or Patton drove Jane Doe to meet with customers and Jane Doe gave all the money she earned to Williams and Patton.
On May 4, 2013, officers with the Dallas Police Department (DPD) encountered now 15-year-old Jane Doe, in a car parked in an area known for prostitution. Williams came by shortly thereafter. He admitted knowing she was 15, driving her to meet with customers, and collecting proceeds from her “dates.”
DPD led the investigation, with assistance from the FBI. Assistant U.S. Attorney Cara Foos Pierce is prosecuting.
DEA's Eight Pill Take Back Event Yields Fruitful Results in South CarolinaRead the Press Release
Contact Person: Chuvalo J. Truesdell (404) 893-7124
Columbia, South Carolina ----- South Carolinians participating in the United States Drug Enforcement Administration’s (DEA’s) eighth National Prescription Drug Take-Back event on Saturday, April 26, 2014, turned in 5,698 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state. This amount exceeded the previous statewide total collected during the October 26, 2013 Take-Back event which yielded 5,626 pounds.
“Harry S. Sommers, the Special Agent in Charge (SAC) of the DEA Atlanta Field Division commented, “DEA’s eighth Prescription Drug Take-Back campaign was a huge success both locally and nationally. While South Carolinians turned in 5,698 pounds of unwanted or expired medications, nationally, more than 780,158 pounds of expired and unwanted prescription medications were collected with more than 4,440 sites that were available in all 50 states, the District of Columbia and U.S. territories. The local and national amounts collected are the highest amounts ever collected of the eight previous Take-Backs and the national amount collected is the second highest total ever collected. I would like to thank the multitude of partners (both law enforcement and non-law enforcement) who worked tirelessly to make this event another great success.”
This initiative addresses a vital public safety and public health issue. Prescription drugs that languish in home medicine cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high; more Americans (6.8 million) currently abuse prescription drugs than the number of those using cocaine, heroin, hallucinogens like LSD, and inhalants (sniffed household products) combined, according to the 2012 National Survey on Drug Use and Health. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
Take-Back Days are presently needed because the Controlled Substances Act (CSA) as originally written didn’t provide a way for patients, caregivers, and pet owners to dispose of such controlled substance (CS) medications such as painkillers, sedatives, tranquilizers, and stimulants like ADHD drugs. People were flushing their old meds down the toilet or throwing them in the trash, but in recent years medicines have been found in the nation’s water supplies, and medications were being retrieved from the trash by those who would abuse or sell them.
To give people a more environmentally responsible and secure way to dispose of their meds, DEA launched its first Take-Back event in September 2010. Four days later, Congress passed the Secure and Responsible Drug Disposal Act of 2010, which amends the CSA to allow people and, in some instances, long term care facilities to regularly, conveniently, and safely dispose of their CS medications by delivering them to entities authorized by the Attorney General to accept them. DEA is in the process of finalizing regulations to implement the Act.
SAC Sommers encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.Cincinnati Man Sentenced to 240 Years in Prison for Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –James O. Napier, 40, of Cincinnati was sentenced to serve 240 years (2,880 months) in prison for producing child pornography involving an 11-month old infant and an approximately nine-year old child.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence handed down today by Chief U.S. District Judge Susan Dlott.
Napier was also sentenced to be placed under the court’s supervision for the rest of his life, which means that he will have to register as a sex offender anywhere that he lives, works or goes to school. Judge Dlott also sentenced Napier to pay $95,009 in restitution for each victim.
Napier was convicted following a three-day trial in January on nine counts of production of child pornography. The jury also convicted Napier of one count each of transportation of child pornography, distribution of child pornography and receipt of child pornography. Trial testimony showed that in November 2009 Napier used an 11-month old infant for sexual gratification, molested the infant and made a video recording of it before placing it on the internet. Other testimony showed that as recently as November 2012 Napier sexually exploited a girl who was approximately nine years-old and produced videos of those acts.
FBI agents began investigating Napier based on information from the FBI office in Phoenix that Napier was seeking to trade child pornography with others on a website under investigation. FBI agents arrested Napier on January 18, 2013. He has been held without bond.
“The initial investigation of Napier identified him as an active and enthusiastic participant in a community of morally depraved individuals who trade child sex abuse images and videos to satisfy their sexual desires,” Assistant U.S. Attorney Christy Muncy told the court. “One of his victims, due to her age, may never know the abuse she suffered. The other will never forget.”
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by FBI agents in Phoenix and Cincinnati, the assistance provided by the Miami Valley Regional Computer Forensics Laboratory, as well as Assistant U.S. Attorneys Christy Muncy and Ben Glassman, who prosecuted the case.
# # #Cape May County, N.J., Man Sentenced to 57 Months in Prison for Transporting Minor Across State Lines for SexRead the Press Release
CAMDEN, N.J. – A Cape May County, N.J. man was sentenced today to 57 months in prison for transporting an underage girl across state lines for the purpose of engaging in sexual activity, U.S. Attorney Paul J. Fishman announced.
Michael Kulick, 47, of Dennis Township, N.J., previously pleaded guilty before U.S. District Court Judge Joseph E. Irenas to an information charging him with one count of transportation of a minor over state lines in order to engage in sexual activity. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In August 2012, Kulick and his family went on a vacation to Lancaster, Pa., accompanied by his daughter’s friend, a 15-year-old girl. Kulick engaged in sexual contact with the minor girl while staying at a hotel in Pennsylvania. Kulick admitted that after returning to New Jersey, he continued to have a sexual relationship with the minor girl for approximately two months. Kulick also admitted that at the time that he transported the minor girl to and from Pennsylvania, he knew that it was illegal in both New Jersey and Pennsylvania to commit statutory rape.
In addition to the prison term, Judge Irenas sentenced Kulick to 10 years of supervised release and must register as a sex offender. A restitution hearing is scheduled for July 9, 2014.
U.S. Attorney Fishman credited special agents of the FBI Atlantic City resident agency, under the direction of Special Agent In Charge Aaron T. Ford; in Newark; the N.J. State Police, under the direction of Col. Rick Fuentes, superintendent of the state police, and investigators with the Cape May County Prosecutor’s office, under the direction of Prosecutor Robert L. Taylor, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Edwin J. Jacobs Jr. Esq., Atlantic City, N.J.Camden County Man Sentenced for Meth, Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Camden County, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and for illegally possessing a firearm.
Donald George LaFlamme, III, 37, of Camden County, was sentenced by U.S. District Judge Fernando J. Gaitan to 12 years and seven months in federal prison without parole.
On Nov. 25, 2013, LaFlamme pleaded guilty to participating in a conspiracy to distribute methamphetamine. He also pleaded guilty to two counts of possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
According to court documents, Lake Ozark, Mo., police officers were dispatched to LaFlamme’s room at a local hotel on Sept. 26, 2010, in reference to a domestic disturbance call. Officers contacted Krystle Ann Gezendorf, 27, who reported that she had been assaulted by LaFlamme, her boyfriend. When officers searched the hotel room, they found a Clerke .32-caliber revolver under the bed as well as a hypodermic needle, a bag containing methamphetamine and a piece of aluminum foil containing methamphetamine.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. LaFlamme has a prior felony conviction for fraudulently attempting to obtain a controlled substance.
Gezendorf told officers that LaFlamme had a large amount of money and methamphetamine that was likely stashed nearby. Hotel staff reported seeing LaFlamme entering several rooms and two housekeeping closets prior to law enforcement arriving. When officers searched those areas, they found additional methamphetamine and $2,525.
Gezendorf told federal agents that LaFlamme acquired approximately one half pound of methamphetamine approximately two to three times a week from a source in Kansas City, Mo., named Lorenzo Carbajal Pina, 52.
On Nov. 23, 2010, Camdenton, Mo., police officers were dispatched to a motor vehicle crash involving a 1996 Chevrolet Blazer. LaFlamme was discovered unconscious behind the wheel of the Blazer. He had to be extricated from the vehicle and was placed inside an ambulance to be transported to the hospital. While tending to LaFlamme, ambulance personnel discovered four bags of methamphetamine weighing approximately two ounces, a bag containing a user quantity of marijuana, and $3,054 inside LaFlamme’s pants pockets.
Gezendorf was sentenced to five years in federal prison without parole after pleading guilty to her role in the conspiracy to distribute methamphetamine. Pina was sentenced to 11 years and three months in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy.
This case is being prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mid-Missouri Drug Task Force, the Lake Ozark, Mo., Police Department, and the Camdenton, Mo., Police Department.Brooklyn Medical Equipment Providers Charged in Alleged $13 Million Scheme to Defraud Government Funded Health PlansRead the Press Release
BROOKLYN, NY – Earlier today, an indictment was unsealed charging Chikwere Onyekwere and Uchechi Onyekwere, registered owners and officers of purported durable medical equipment (“DME”) companies located in Brooklyn, New York, with executing a scheme to submit over $13 million in fraudulent claims to a New York-based, government-sponsored managed care organization. The defendants were arrested earlier this morning and will be presented for arraignment later today at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before United States Magistrate Judge Joan M. Azrack.
The charges and arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, David O’Neil, Acting Assistant Attorney General of the Justice Department’s Criminal Division, George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office, and Thomas O’Donnell, Special Agent in Charge, Department of Health and Human Services-Office of Inspector General (HHS-OIG).
According to the indictment, beginning in approximately 2008 and continuing through at least the end of 2013, the defendants formed a series of sham DME companies which they used to submit fraudulent claims to the managed care organization for reimbursement for DME that was purportedly provided to the organization’s members, many of whom were elderly or disabled and had insurance through Medicare Part C Advantage Plans or New York Medicaid Managed Care plans. In an effort to make their sham companies appear legitimate, the defendants obtained Tax Identification Numbers from the Internal Revenue Service, opened bank accounts and established phony business addresses for the sham companies at UPS Store locations and other addresses where the defendants lived. The defendants also gave names to the sham companies similar to DME companies that were approved providers in the managed care organization’s network of DME providers.
As part of the scheme, the defendants placed telephone calls in which they impersonated representatives of the approved DME providers to obtain preauthorization codes from the managed care organization for claim submissions. The defendants later submitted claim forms to the managed care organization referencing the preauthorization codes but sought payment in the name of the sham companies that they set up. The DME identified in the claim forms was not provided to the members of the managed care organization, many of whom called the managed care organization to complain. As alleged in the indictment, the sham DME companies associated with the defendants submitted over $13 million in fraudulent claims and were paid over $4 million for those claims.
“As alleged, the defendants used fictitious companies and fraudulent claims to steal very real healthcare dollars,” stated United States Attorney Lynch. “The Medicare and Medicaid systems serve our most vulnerable citizens, and those who seek to steal those tax dollars will be prosecuted to the fullest extent of the law.”
“Using cutting-edge, data-driven investigative techniques, we are bringing fraudsters to justice and saving the American taxpayers billions of dollars," said Acting Assistant Attorney General David A. O'Neil of the Justice Department's Criminal Division. "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.”
“Fraud against the government is fraud against every American taxpayer. We’ll continue to root out corruption wherever we find it,” stated FBI Assistant Director in Charge Venizelos
“The Brooklyn Strike Force will continue to vigorously investigate Medicare fraud at all levels,” said HHS-OIG Special Agent-in-Charge O’Donnell. “Sham DME companies need to be eradicated and the fraudsters need to be held accountable for their actions.”
The investigation has been conducted by the FBI and HHS-OIG, brought as part of the Medicare Fraud Strike Force, and supervised by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. The case is being prosecuted by Trial Attorney Turner Buford of the Criminal Division’s Fraud Section and Assistant United States Attorney Peter Baldwin of the U.S. Attorney’s Office for the Eastern District of New York.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of ten years.
Since their inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, has removed over 17,000 providers from the Medicare program since 2011.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
The Defendant:
CHIKWERE ONYEKWERE
Age: 28
Brooklyn, New York
UCHECHI ONYEKWERE
Age: 33
Queens, New York
E.D.N.Y. Docket No. 14-274
Brookline Man Possessed Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Eric Roller, 49, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on or about Feb. 22, 2013, Roller possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge Hornak scheduled sentencing for Sept. 15, 2014, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Roller.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brattleboro Man Sentenced to Jail for 5 Years for Possession of Child PornographyRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that David Schnyer, 77, of 213 Birge Street, Brattleboro, Vermont was sentenced today by U.S. District Court Judge William K. Sessions III, to 60 months in prison for possession of child pornography. Schnyer was also sentenced to five years of supervised release after the completion of his prison term.
According to Court records, on August 13, 2013, David Schnyer was in possession of over 41,000 images and videos containing child pornography. He was apprehended when Special Agents with Homeland Security Investigations (“HSI”) learned that that someone at the Birge Street residence was distributing child pornography using Ares, a type of file-sharing software. Pursuant to a federal search warrant, law enforcement searched the residence at 213 Birge Street on August 13, 2013 and discovered child pornography on David Schnyer’s computer.
Schnyer was arrested on August 13, 2013 and, on August 14, 2013, he appeared before United States Magistrate Judge John M. Conroy who released Schnyer pending trial. He was indicted by a federal grand jury on August 29, 2013 for possession of child pornography. Schnyer pled guilty to that offense on February 5, 2014 and was released pending sentencing.
This case was investigated by the Department of Homeland Security Investigations. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant United States Attorney, Nancy J. Creswell. Schnyer was represented by Steven Barth of the Office of the Federal Public Defender.
Attorney General Holder and Secretary Duncan to Announce Law Enforcement Action to Protect Military Servicemembers from Unfair Lending PracticesRead the Press Release
Attorney General Eric Holder and Secretary of Education Arne Duncan will hold a press conference to announce a major law enforcement action to protect military servicemembers from unfair lending practices. TODAY, TUESDAY, MAY 13, 2014, at 1:15 P.M. EDT.
WHO: Attorney General Eric Holder
Secretary of Education Arne Duncan
WHAT: Press conference to announce law enforcement action to protect military servicemembers from unfair lending practices.
WHEN: TODAY, TUESDAY, MAY 13, 2014
1:15 p.m. EDT
WHERE: Department of Justice
7th Floor Conference Room
950 Pennsylvania Ave., N.W.
Washington, D.C.
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Media must enter the department at the visitor’s entrance on Constitution Avenue between 9th and 10th Streets by 12:55 p.m. EDT. Media may begin arriving at 12:15 p.m. EDT and cameras must be pre-set by 12:55 p.m. EDT. Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007 or email [email protected].
Athens Man Sentenced for Stealing and Selling Medical Teaching Items from UniversityRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Weston Henri Moquin, 29, of Athens, Ohio was sentenced in U.S. District Court to serve 15 months in prison, followed by two years of supervised release, for stealing and selling human bones and plastinated human remains from the university anatomy lab where he worked.
Carter Stewart, U.S. Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence handed down today by Senior U.S. District Judge Peter C. Economus.
Moquin pleaded guilty on January 7, 2014 to one count of interstate transportation of stolen property and one count of theft from a program receiving federal funds. Moquin stole materials used as teaching aids at Ohio University between July 2011 and June 2012. The materials included loose human bones, skulls, skeletons, plastinated human remains, autopsy saws and other materials that had been purchased by the university. Moquin sold the items primarily through his eBay account. Most of the stolen goods were shipped to customers in California, Utah and Oregon.
“While the general public would have been uncomfortable with keeping and packaging human remains, defendant’s experience became his ‘special skill’ that facilitated the theft,” Assistant U.S. Attorney Deborah Solove told the court. “The university representatives were shocked to learn of the thefts – the very nature of the material made the items an unlikely target for theft, except for someone like defendant Moquin.”
Moquin was ordered to pay $78,018.85 in restitution to the university. “The university also spent countless man hours to update the tracking system to prevent such a theft in the future,” Solove wrote.
U.S. Attorney Stewart commended the investigation by the FBI as well as Assistant U.S. Attorney Deborah A. Solove who prosecuted the case.
# # #Altavista Man Sentenced for Trafficking in Counterfeit GoodsRead the Press Release
LYNCHBURG, VIRGINIA – An Altavista, Va. man, who previously pled guilty to charges related to trafficking in counterfeit sports apparel, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg.
George E. Hall, 46, of Altavista., Va., previously pled guilty to one count of trafficking in goods bearing counterfeit marks and one count of copyright infringement. Today in U.S. District Court, Hall was sentenced to five months incarceration and five months of home confinement. In addition, Hall was ordered to pay approximately $64,000 in restitution.
“The jerseys Mr. Hall sold to consumers were labeled as authentic,” United States Attorney Timothy J. Heaphy said today. “In reality, they were counterfeit. Mr. Hall’s fraud misled customers and deprived the authentic manufacturers of sales. This case demonstrates our commitment to protecting the integrity of the marketplace and holding counterfeiters accountable.”
“Trafficking in counterfeit merchandise is a multi-billion dollar global enterprise," said Katrina W. Berger, acting special agent in charge of HSI Washington. "HSI is committed to dismantling these schemes to prevent trans-national criminal organizations from profiting by conducting this type of illicit business."
Hall previously admitted to trafficking in counterfeit sports jerseys and DVDs from his Altavista home. The defendant admitted to importing counterfeit sports jerseys, hats, necklaces, bracelets and sunglasses, from China and Hong Kong and then selling those items to other vendors who sold the items at trade shows and at a local store.
During several undercover buys by agents of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Hall admitted to receiving several letters from U.S. Customs and Border Protection Services advising him that items he was importing from China and Hong Kong were being seized because they were counterfeit. Even after receiving these letters, Hall continued the practice of importing counterfeit goods and simply changed the shipping address information.
The defendant also admitted to downloading and reproducing copyright infringed movies and selling these movies to others. Hall has admitted that he was aware that both the importation and sale of counterfeit clothing items and the downloading and sale of pirated movies were illegal. In all, agents recovered approximately 3,500 movies, 480 sports jerseys and 135 hats.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HIS) and the Campbell County Sheriff’s Office. Assistant United States Attorney Daniel Bubar prosecuted the case for the United States.
Alleged War Criminal Arrested on Fraud ChargesRead the Press Release
An indictment was unsealed yesterday charging Jucontee Thomas Woewiyu, a/k/a “Jucontee Thomas Smith,” 68, of Collingdale, Pennsylvania, with lying on his application for U.S. citizenship by not disclosing his alleged affiliation with a violent political group in Liberia, announced United States Attorney Zane David Memeger. Woewiyu is charged with seven counts of perjury, two counts of fraudulently attempting to obtain citizenship, four counts of fraud in immigration documents, and three counts of false statements in relation to naturalization.
According to the indictment, Woewiyu was residing in the U.S. when he formed the Association for Constitutional Democracy in Liberia (ACDL) to advocate against the regime of Master Sergeant Samuel K. Doe in Liberia. Woewiyu, and others, also formed the National Patriotic Front of Liberia (NPFL) a military organization committed to the violent overthrow of the Doe government. The ACDL provided funding to the NPFL. In 1990, a splinter group captured and executed Doe. The NPFL, however, persisted with a brutal campaign for control of the country. An attack, in October of 1992 by NPFL forces, left scores of residents of Monrovia dead. According to the indictment, Woewiyu presided as NPFL Minister of Defense during a brutal military campaign during which perceived adversaries were tortured, civilians were executed, girls and women were raped and forced into sex slavery, and humanitarian aid workers were murdered.
In his application for U.S. Citizenship, Woewiyu responded that he had not ever advocated for the overthrow of any government by force or violence and that he had never persecuted any person because of race, religion, national origin, membership in a particular social group or political opinion.
If convicted the defendant faces a maximum possible sentence of 110 years imprisonment, a $4 million fine, not more than 3 years supervised release and a $1,600 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
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, 215-861-8525Albuquerque Woman Pleads Guilty to Federal Wire Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Lesa Howard, 52, of Albuquerque, N.M., pleaded guilty today to federal wire fraud and aggregated identity theft charges under a plea agreement with the U.S. Attorney’s Office.
Howard was arrested on Aug. 7, 2013, on a seven-count indictment charging her with two counts of wire fraud, one count of mail fraud, three counts of aggravated identity theft and one count of bank fraud. The indictment alleged that Howard committed these crimes in Bernalillo and Valencia Counties between July 2007 and July 2009.
According to the indictment, in July 2007, Howard unlawfully orchestrated the straw purchase of a house in Los Lunas, N.M., which she occupied for several years. When the mortgage holder began to foreclose on the straw purchaser in Aug. 2008, Howard unlawfully orchestrated the sale of the house to a second straw purchaser, who was living in the house with her, and unlawfully pocketed proceeds due to the original straw purchaser.
During today’s proceedings, Howard pled guilty to Counts 1 and 4 of the indictment charging her with wire fraud and aggravated identity theft, respectively. In her plea agreement, Howard admitted executing a scheme in Aug. 2008, to fraudulently induce a mortgage company to extend a $417,000 home loan for the purchase of a house in Los Lunas. She further admitted using the personal identifiers of another person, without authorization, to obtain the loan. Howard falsely represented that the homeowner had agreed to the sale of the house even though the homeowner had not agreed to the transaction. Although Howard represented that she would deliver the proceeds of the transaction to the homeowner, Howard arranged for $96,471 in proceeds to be wired into a bank account she controlled.
At sentencing, Howard faces a statutory maximum penalty of 30 years in prison on the wire fraud charge. Howard also faces a mandatory two years in prison on the identity theft charge which must be served consecutive to any prison sentence imposed on the wire fraud charge. Howard remains on conditions of release pending her sentencing hearing, which has yet to be scheduled.
Under the terms of the plea agreement, the court will impose a money judgment against Howard in the amount of approximately $291,132, which represents part of the net profit Howard derived as a result of her criminal conduct. Howard also will be required to forfeit any interest she has in the Los Lunas house.
This case was investigated by Albuquerque office of Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Jeremy Pena. The forfeiture proceedings are being handled by Assistant U.S. Attorney Stephen R. Kotz.
Akron Men Indicted for Counterfeiting ConspiracyRead the Press Release
A three-count indictment was unsealed charging Jerry Reynolds, 44, and Marvin Reynolds, 34, both of Akron, Ohio, with one count of conspiracy to possess and utter counterfeit checks, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced.
The grand jury also charged both with two counts of possessing and uttering counterfeit checks, or causing another to possess and utter a counterfeit check, on July 13, 2013.
According to the indictment, Jerry Reynolds and Marvin Reynolds knowingly and intentionally recruited individuals to possess and utter counterfeited and forged checks of an organization, which activities affected interstate or foreign commerce.
If convicted, the sentences of the defendants will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, his role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation is being conducted by the United States Secret Service with assistance from the Norton Police Department. The case is being prosecuted by Kevin Culum, Special Assistant United States Attorney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
12 May 2014
Woodland Park, N.J., Man Sentenced to Three Years in Prison for Scheme to Defraud 17 Charities and Non-Profit OrganizationsRead the Press Release
NEWARK, N.J. - The owner and president of GAC Consulting Group LLC (GAC) was sentenced today to 36 months in prison for his role in a scheme to defraud at least 17 charities and non-profit organizations, costing them more than $750,000 in losses, U.S. Attorney Paul J. Fishman announced.
Gregory Ciccone, 37, of Woodland Park, N.J., previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to one count of wire fraud and one count of filing a false tax return. On Oct. 26, 2010, Ciccone was arrested and charged with mail fraud and wire fraud in connection with his charity fraud scheme, which promised high-end prizes that were never delivered. A superseding indictment returned by a federal grand jury on May 15, 2012, charged Ciccone with mail fraud, wire fraud and filing a false 2009 tax return.
According to documents filed in the case and statements made in court: Ciccone owned and operated GAC, a business which contracted with charities and non-profit organizations and arranged for high-end prizes to be auctioned off to bidders during fund-raising events. They included: a walk-on role on the “Desperate Housewives” television show; tickets to the 2009 Tony Awards; an appearance by “C.A.,” a celebrity who is a cancer survivor; and rounds of golf at the Augusta National Golf Course in Augusta, Ga.
Ciccone convinced the charities and non-profit organizations to pay GAC both an up-front retainer and commission fees based upon his ability to provide certain prizes. Ciccone not only did not deliver the vast majority of the prizes offered to his victims, he never had the ability to do so. From October 2006 through April 2010, Ciccone’s actions caused more than $768,000 in losses to at least 17 different charities and non-profit organizations.
After his Oct. 26, 2010, arrest, Ciccone filed a false 2009 tax return on May 13, 2011, in which he failed to list certain retainer fees and commissions received from his victims, as well as gambling winnings. As part of his plea, Ciccone agreed to pay back $267,778 in criminal forfeiture.
In addition to the prison term, Judge Hayden sentenced Ciccone to three years of supervised release, ordered him to pay restitution of $768,103 and forfeiture of $267,788.
U.S. Attorney Fishman credited special agents with the FBI under the direction of Special Agent in Charge Aaron T. Ford; special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Joseph Mack and Kathleen P. O’Leary of the U.S. Attorney=s Healthcare and Government Fraud Unit.
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Defense counsel: Salvatore T. Alfano Esq., Bloomfield, N.J., and Louis C. Esposito Esq., Cedar Grove, N.J.U.S. Attorney's Office for the Western District of Louisiana Remembers Fallen Law Enforcement Officers During National Police Week 2014Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. Communities across the United States are coming together during National Police Week - May 11th through May 17th - to honor and remember those law enforcement officers who made the ultimate sacrifice, as well as the family members, friends and fellow officers they left behind.
“Law enforcement officers face the monumental challenge of protecting and serving the public every day,” stated U.S. Attorney Stephanie Finley. “They risk their lives for all of us, and the men and women of the Western District salute and remember them during National Police Week. We specifically remember those who have fallen while on duty and the legacy of service their sacrifice leaves.”
This year, the names of 286 officers killed in the line of duty are being added to the National Law Enforcement Officers Memorial in Washington, D.C., during the 2014 Candlelight Vigil on the evening of May 13, 2014. These names include officers who were killed during 2013 and officers who died in previous years who have not been previously added to the Memorial.
The fallen officers of 2013 include four members of the law enforcement community in the Western District of Louisiana. They are:
- Sergeant Frederick Albert “Rick” Riggenbach of the Chitimacha Tribal Police Department, who died on January 26, 2013;
- Assistant Warden Peggy Sylvester of the Opelousas Police Department, who died on April 14, 2013;
- Special Agent James Terry Watson of the Drug Enforcement Administration, who died June 21, 2013; and
- Deputy Sheriff Steven George Netherland of the Vernon Parish Sheriff’s Office, who died June 24, 2013.
In order to assist local public safety officers in the work that they do, the U.S. Attorney’s Office, Western District of Louisiana, offers safety and survival training throughout the year to increase awareness of the hazards they encounter on a daily basis. The course curriculum and sessions are overseen by the Western District’s Law Enforcement Community Coordinator, Michael Campbell, a former Chief of Police for the City of Shreveport. The Western District of Louisiana consists of 42 of Louisiana’s 64 parishes, and the courses are open to federal, state, local, military and tribal offices.
“We have and will continue to offer officer safety and survival training to increase awareness of the hazards our public safety officers face on a daily basis,” Finley stated. “Our goal is for all public safety officers to return home to their families at the end of their shifts each and every day.”
U.S. Attorney Timothy Purdon to Discuss Human Trafficking at North Dakota Motor Carriers Association Annual Convention in FargoRead the Press Release
FARGO – U.S. Attorney Timothy Purdon will join North Dakota Attorney General Wayne Stenehjem and Truckers Against Trafficking Executive Director Kendis Paris in addressing the topic of Human Trafficking in North Dakota at the North Dakota Motor Carriers Association (“NDMCA”) Annual Convention at the Ramada Plaza Suites in Fargo at 3:30 p.m. on Wednesday, May 14, 2014.
U.S. Attorney Purdon said, “Attorney General Stenehjem and I are pleased to join Truckers Against Trafficking and the North Dakota Motor Carriers Association in the discussion of human trafficking. Human trafficking is a growing concern for law enforcement here in North Dakota. While Attorney General Stenehjem and I are working together to address this issue, we recognize that we need help in these efforts. Our friends at Truckers Against Trafficking and North Dakota Motor Carriers know that members of the trucking industry and individual truckers are invaluable in the fight against this heinous crime. As the eyes and ears of our nation's highways, they are in a unique position to make a difference and close loopholes to traffickers who seek to exploit our transportation system for their personal gain. We look forward to working with these great partners to stamp out this horrible crime.”
Following remarks by U.S. Attorney Purdon and Attorney General Stenehjem, Kendis Paris from Truckers Against Trafficking will present to the NDMCA on training opportunities that Truckers Against Trafficking can make available to individual trucking companies so they can continue their assistance in the effort to fight human trafficking in North Dakota.
Human Trafficking Presentation to NDMCA
OPEN PRESS: 3:30 p.m. to 4:15 p.m.
Who: United States Attorney Timothy Purdon North Dakota Attorney General Wayne Stenehjem Executive Director Kendis Paris, Executive Director Where: Ramada Plaza Suites Fargo, N.D. When: Wednesday, May 14, 2014 3:30 p.m. to 4:15 p.m.The media is welcome to the OPEN PRESS session from 3:30 p.m. to 4:15 p.m.
U. S. Attorney Honors Deputy U. S. MarshalRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A Deputy U. S. Marshal was recognized for his significant investigative efforts leading to the apprehension of a federal fugitive.
United States Attorney William J. Ihlenfeld, II, recognized Deputy U. S. Marshal Wesley Fred Frederick at the U.S. Attorney’s Award ceremony held in Wheeling. DUSM Frederick was honored for going above and beyond the call of duty in locating a defendant who fled the Clarksburg area on the eve of his trial for involvement in a large-scale “bath salts” and synthetic marijuana distribution conspiracy. After eight months of reviewing records, interviewing and re-interviewing persons with information, the defendant was apprehended at a remote cabin in New Mexico. Thanks to the outstanding efforts of DUSM Frederick, the defendant is now in federal custody pending trial.
“My congratulations go out to Deputy Marshal Wesley "Fred" Frederick in being recognized by the United States Attorney's Office for the Northern District of West Virginia for his contributions to law enforcement and his relentless pursuit of fugitives,” stated U. S. Marshal Gary M. Gaskins. “DUSM Frederick was honored for his tenacity and determination in hunting down a fugitive after eight months on the run. It was DUSM Frederick's many hours of hard work and never giving up that located this individual in holding true in the Marshals Service motto, that you can run but can't hide. I am extremely proud of DUSM Frederick for his performance and dedication during this fugitive investigation."
The ceremony included remarks from U.S. District Court Judge Frederick P. Stamp, Jr. and the presence of many local, state and federal law enforcement leaders from throughout
West Virginia.
The individuals included in the photo are Criminal Chief Shawn Angus Morgan; DUSM Wesley Fred Frederick; U. S. Attorney William J. Ihlenfeld, II.Two Bluefield Men Sentenced to Federal Prison for Prescription Drug OffenseRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that two Bluefield men were sentenced in federal court for distribution of prescription drugs. Leonard Graves III, 31, of Bluefield, Virginia, was sentenced to eighteen months in federal prison for distribution of oxycodone. Graves pled guilty in January of 2014, admitting that in September of 2013, he distributed 20 oxycodone pills in the Bluefield area to a person cooperating with police. As part of his plea, Graves admitted that he sold a total of 269 oxycodone pills.
Jermaine Holland, 31, of Bluefield, West Virginia, was sentenced to fifteen months in federal prison for distribution of hydromorphone. Holland pled guilty in December of 2013, admitting that in July of 2013, he distributed two hydromorphone pills from his Bluefield home to a person cooperating with police. Holland also admitted that he sold several additional hydromorphone pills, and that he possessed two firearms and kept them near the drugs and money he earned from selling drugs.
These cases were investigated by the Southern West Virginia Drug and Violent Crime Task Force and the prosecution was handled by Assistant United States Attorney John File. This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U. S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Two Bangor Residents Plead Guilty to Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Elizabeth Mikotowicz, a/k/a “Beth,” 27, and Steven Orosco, a/k/a “Pablo,” 23, both of
Bangor, pleaded guilty today in U.S. District Court in Bangor to conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical compound commonly referred to as “bath salts” or “monkey dust.”According to court records, the members of the conspiracy illegally distributed MDPV in
Penobscot County and elsewhere between April and December 2011. The defendants obtained
MDPV from other members of the conspiracy and traded, sold or otherwise distributed it using cellular telephones and other means of communication.
The defendants face up to 20 years in prison, a $1,000,000 fine, or both. They will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Defendants are two of fourteen defendants charged by criminal complaint as part of the conspiracy. A criminal complaint is merely an accusation and a defendant is presumed to be innocent until proven guilty in a court of law.
Co-defendants Alan Ketchen, a/k/a “AJ,” Daniel Hines, Adam Hathorn, and Tina Keaton, a/k/a “Fumble,” all of Bangor; Jessica Bryden, of Greenbush, Maine; and Matthew Tardiff, of
Old Town, Maine; previously pled guilty to the conspiracy charge and await sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from the U.S. Drug Enforcement Administration and the Bangor Police Department.Topeka Man Sentenced on Federal Firearm ChargeRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced Monday to five years in federal prison on a firearms charge, U.S. Attorney Barry Grissom said.
Joseph Eugene Dix, 31, Topeka, Kan., pleaded guilty to one count of carrying a firearm in furtherance of a drug traffic king crime. In his plea, he admitted he was stopped by Topeka police Aug. 17, 2013, for a traffic violation. Officers seized two gallon-sized packages of marijuana, a baggie of methamphetamine, $900 in cash and a small black ledger containing what appeared to be records of drug transactions. They also seized a .45 caliber pistol from under the driver’s seat.
Grissom commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.
Three Florida Residents Sentenced for Mail Fraud in Connection with Misrepresenting Business OpportunitiesRead the Press Release
Three individuals who pleaded guilty to conspiracy to commit mail fraud in connection with operating a series of fraudulent business opportunity companies were sentenced in the United States District Court for the Southern District of Florida. Robert Gallo (aka Bobby Pace, Vincent Pastone, Joe Barone, Bobby Marino, Anthony Russo), of Coconut Creek, Fla., and Mitchell Berman (aka Brian Griffin), of Boca Raton, Fla., were sentenced on Friday to 120 months and 78 months imprisonment, respectively. Steven Axelrod (aka Michael Hutton), of Wellington, Fla., was sentenced to 15 months imprisonment.
“These sentences reflect the Department of Justice’s continued commitment to protecting consumers from fraud schemes,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “Those who violate court orders and who seek to deprive innocent, hardworking Americans of their hard-earned money will be held accountable.”
The defendants operated a series of fraudulent companies that sold coffee display rack business opportunities. These business opportunities, as advertised by the defendants to potential purchasers, consisted of the following: bags of coffee, display racks in which to place the coffee, profitable locations for the display racks, assistance in placing the display racks in profitable locations, and other customer services.
Berman and Gallo, with Axelrod as salesman, operated the first company in approximately 1999, leading to a December 2000 federal court order barring Berman, the company, and its successors from misrepresenting profits, locations, and other aspects of business opportunities. Over the course of the next twelve years, beginning in August 2000 and continuing through October 2011, the defendants opened and closed five more iterations of the same company: Selective Services Business, Best Gourmet Coffee, Cambridge Coffee, Royal Gourmet Coffee, and South Beach Coffee. They sold business opportunities for a minimum of approximately $10,000. In order to evade detection, all the defendants used aliases and gave out false addresses for the companies. According to the indictment, Berman and Gallo also avoided listing their own names on corporate and promotional documents, and instead paid people who did not work at the companies to be titular presidents. They operated each company for six months to a year, shutting down when purchasers began complaining, only to reopen again after a period of time.
In selling these business opportunities, all three defendants made numerous false statements to potential purchasers of the business opportunities to induce them to buy. Among the misrepresentations are that purchasers would likely earn substantial profits, that prior purchasers of the business opportunities were earning substantial profits, that purchasers would be given lucrative “commercial accounts,” and that the company would provide assistance in establishing and maintaining the business. According to the indictment, purchasers made little to no money on their investments, were unable to find profitable locations or accounts, and were not provided the support promised by defendants. In making misrepresentations to potential purchasers, Berman was also violating a 2000 federal court order.
The matter was handled by the Department of Justice’s Consumer Protection Branch with the investigative efforts of the Postal Inspection Service. The case was prosecuted by Trial Attorneys Cindy Cho and Christopher Parisi of the Consumer Protection Branch of the Civil Division of the Department of Justice.
Three Defendants Sentenced to Prison for Bakersfield and Fresno Mortgage Fraud SchemesRead the Press Release
FRESNO, Calif. — In three separate cases, defendants convicted of carrying out mortgage fraud schemes in Fresno and Bakersfield were sentenced to prison today, United States Attorney Benjamin B. Wagner announced.
Randy Lee Wilkins, 48, of Gilroy, was sentenced to four years and nine months in prison for carrying out a mortgage fraud scheme in Fresno. Wilkins was also ordered to pay $736,965 in restitution. A federal jury found Wilkins guilty in January 2014 of one count of conspiracy to commit wire fraud and bank fraud, three counts of bank fraud, and three counts of wire fraud. The court found that Wilkins obstructed justice by testifying falsely at trial, and also found that he directed other conspirators in carrying out the scheme. According to court documents and evidence presented at trial, between April 2006 and May 2007, Wilkins had applications for three home loans submitted in a co-conspirator’s name that contained false statements concerning the co-conspirator’s income, assets, liabilities, and intent to occupy the properties as his personal residence. Wilkins also received kickbacks funded by loan origination fees and other charges. Wilkins has been in custody since the verdict was returned in January.
Antonio Perez-Marcial, 41, of Bakersfield, was sentenced to three years and 10 months in prison for conspiracy to commit bank fraud, mail fraud, and wire fraud in connection with a mortgage fraud scheme in Bakersfield. Perez-Marcial was also ordered to pay $3,455,250 in restitution. From 2007 to 2010, Perez-Marcial conspired with others to use straw buyers to purchase residential properties in Bakersfield. The loan applications the conspirators submitted to lenders frequently contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties. They also submitted false supporting documentation to lenders such as false bank account statements, rent verifications, pay stubs, and employment verifications.
Jeriel Salinas, 32, of Bakersfield, was sentenced to 19 months in prison and ordered to pay $1,488,762 in restitution for charges stemming from his involvement in an extensive Bakersfield mortgage fraud scheme that ran from January 2004 to September 2007. Salinas was a real estate agent at Crisp & Cole Real Estate (CCRE). According to court documents, the scheme defrauded mortgage companies and federally insured financial institutions by using straw buyers to acquire properties with funds borrowed from lenders based on false and fraudulent loan applications. The properties were nominally owned by the straw buyers, but were controlled by CCRE and held for the benefit of CCRE. According to his plea agreement, Salinas acted as a straw buyer for CCRE and knowingly made misstatements and omitted information in loan applications he submitted to lenders. Salinas also served as a real estate agent on other transactions in the scheme.
Seven other defendants have been sentenced in the CCRE scheme: David Crisp and Carl Cole were each sentenced to 17 years and seven months in prison. Jayson Peter Costa was sentenced to six years and six months in prison. Michael Munoz was sentenced to two years in prison. Caleb Cole was sentenced to five months in prison. Jennifer Crisp was sentenced to five years of probation. Robinson Nguyen has completed his 27-month sentence. Two remaining defendants, Julie Farmer and Sneha Mohammadi, are scheduled to be sentenced on July 14, 2014.
In 2009 and 2010, five cases related to the CCRE scheme were brought against five defendants. All have pleaded guilty to the charges and two of those defendants are scheduled to be sentenced on May 27, 2014: Kevin Patrick Sluga and Leslie Sluga. Three are scheduled to be sentenced on June 2, 2014: Jerald Allen Teixeira, Megan Balod, and Christopher Lance Stovall.
The Wilkins and Salinas cases were the product of investigations by the Federal Bureau of Investigation. The Perez-Marcial case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorneys Kirk E. Sherriff and Grant B. Rabenn prosecuted the Wilkins case. The Perez-Marcial case was prosecuted by Assistant U.S. Attorneys Kirk E. Sherriff and Henry Z. Carbajal III. The Salinas case was prosecuted by Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Christopher D. Baker.
The U.S. Attorney’s Office for the Western District of North Carolina Honors and Remembers Fallen Law Enforcement Officers, in Observance of 2014 "National Police Week"Read the Press Release
CHARLOTTE, N.C. – This week, communities across the United States will gather during National Police Week to remember law enforcement officers who made the ultimate sacrifice in the line of duty, to share their stories of courage and sacrifice and to honor their memory.
“Police week is a time of remembrance of fallen officers who gave their lives to protect ours,” said Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. “Together with our fallen heroes’ families, friends and comrades we come together to grieve for their tragic loss, to celebrate their lives and to carry on the legacy they left behind.”
This year, the names of 286 officers killed in the line of duty will be added to the National Law Enforcement Officers Memorial in Washington, D.C., including the names of 100 officers who made the ultimate sacrifice during 2013, and 186 officers who died earlier in history but whose sacrifice had not been previously documented. With the addition of the 286 names this year, a total of 20,267 officers’ names are engraved on the Memorial. The names represent fallen law enforcement officers from all 50 states, the District of Columbia, U.S. territories, federal law enforcement, and military police agencies. Among those added this year will be:
• Robert Austin Bingaman, of the Asheville Police Department. Officer Bingaman died in October 2013.
• Jerry L. Scantling, of the Onslow County Sheriff’s Office, who died in August 2008.
• Ronald Lee Yeazel, of the Hope Mills Police Department, who was killed in September 1994.
• John Cook, of the Mecklenburg County Sheriff’s Office, who was killed in October 1804.Since January 2014, two more officers in North Carolina have fallen in the line of duty. Alexander Thalmann, of the New Bern Police Department, died in March 2014 from a gunshot wound he sustained during a traffic stop. Forest Service law enforcement officer Jason Crisp and his K-9 partner, Maros, were shot and killed in March 2014 while pursuing a suspect, who hours earlier had killed his own father and step-mother. Officers Thalmann and Crisp will be honored in next year’s ceremony at the Memorial.
U.S. Attorney Tompkins noted that, “Police Week is an opportunity to honor and recognize all law enforcement officers in our communities, who bravely stand on the front lines of violence, each day. These officers are part of a long line of courageous men and women who have taken an oath to protect our neighborhoods, our homes and our loved ones from harm. I am thankful for their service, their courage and their willingness to answer the ultimate call of duty.” There are approximately 900,000 law enforcement officers currently serving in communities across the United States. Each year, nearly 60,000 assaults against law enforcement officers are reported, resulting in approximately 16,000 injuries.
The names of all 286 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial during the 26th Annual Candlelight Vigil, which will be held on the evening of May 13, 2014, in Washington, D.C. U.S. Attorney General Eric Holder will deliver the keynote address and lead the candle lighting and reading of the names of the fallen officers.
The ceremony will be webcast live beginning at 8:00 p.m. (EDT). To register for this free online event, please visit www.LawMemorial.org/webcast. http://www.LawMemorial.org/webcast
Seven Central West Virginia Men Indicted on Federal Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
CLARKSBURG, WEST VIRGINIA — Seven Central West Virginia men have been indicted on federal drug charges alleging a conspiracy to distribute prescription painkillers, as well as other related drug charges.United States Attorney William J. Ihlenfeld, II, announced that Jason MARPLE, age 35, of Clarksburg, West Virginia; Casey SEARCY, age 33, of Salem, West Virginia; Christopher Michael WALLS, age 29, of Clarksburg; Chad Alton REGISTER, age 31, of Anmoore, West Virginia; Russell POWERS, also known as Rusty, age 49, of Clarksburg; George POWERS, age 34, of Clarksburg; and Dedreayl MADDOX, also known as “D,” age 29, of Fairmont, West Virginia, were named in a fifteen count superseding indictment charging them with “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.” The superseding indictment also alleges additional counts of “Distribution of Oxycodone,” “Distribution of Oxycodone within 1,000 Feet of a Playground,” “Possession of a Firearm in Furtherance of a Drug Trafficking Crime,” and “Maintaining Drug-Involved Premises.”
SEARCY is charged with two counts of “Distribution of Oxycodone within 1,000 Feet of a Playground,” which doubles the penalty; three counts of “Distribution of Oxycodone;” one count of “Possession with Intent to Distribute Oxycodone;” and one count of “Maintaining a Drug-Involved Premise.”
MARPLE is charged with two counts of “Distribution of Oxycodone within 1,000 Feet of a Playground,” which doubles the penalty; two counts of “Distribution of Oxycodone;” and one count of “Knowingly Using a Firearm in Furtherance of a Drug Trafficking Crime.”
REGISTER is charged with one three counts of “Distribution of Oxycodone,” and one count of “Possession with Intent to Distribute Oxycodone.”
Russell POWERS and George POWERS are each charged with “Possession with Intent to Distribute Oxycodone,” and one count of “Maintaining a Drug-Involved Premise.”
WALLS is charged with one count of “Distribution of Oxycodone.”
The Superseding Indictment also carries a forfeiture allegation wherein the United States seeks to forfeit $1,886 in United States Currency; a 2003 Harley Davidson Heritage Softtail motorcycle; firearms; and tools that were seized from the defendants and derived from proceeds obtained directly from the offenses alleged in the Superseding Indictment.
The conspiracy, distribution, possession, and drug-involved premises counts carry a penalty of up to twenty years imprisonment; the distribution counts within 1,000 feet of a playground carry a penalty of up to forty years imprisonment; and the firearm charge carries a minimum penalty of five years imprisonment.
The case will be prosecuted by Assistant United States Attorney Shawn A. Morgan, and was investigated by the Greater Harrison County Drug & Violent Crime Task Force. A Superseding Indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty.
Seneca Falls Man is Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Lawrence Higgins, 63, of Seneca Falls, N.Y., who was convicted of possession of child pornography and being a felon in possession of a firearm, was sentenced to 150 months in prison and 20 years of supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the United States Postal Inspection Service received information that Higgins was ordering DVDs depicting child pornography from an "International Company." From November 2008 to March 2011, the defendant made 11 purchases. The DVDs were delivered to an address located on State Street in Seneca Falls.
A search warrant was executed by Inspectors from the Postal Inspection Service on November 14, 2012. Higgins admitted to ordering the DVDs and to possessing thousands of images of child pornography and hundreds of hours of videos of child pornography on his computers and digital storage media. The defendant has a prior conviction for sexual abuse in the first degree and admitted to possessing a rifle and ammunition.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of the United States Postal Inspection Service under the direction of Acting Inspector in Charge, Shelly A. Binkowski, Boston Division.Samuel K. Crocker to Serve as U.S. Trustee for Kansas, Oklahoma and New MexicoRead the Press Release
WASHINGTON – Samuel K. Crocker, the U.S. Trustee for Kentucky and Tennessee (Region 8), has been designated by Attorney General Eric Holder also to serve as the U.S. Trustee for Kansas, Oklahoma and New Mexico (Region 20) for an interim period beginning today, the Executive Office for U.S. Trustees announced today. He replaces Richard A. Wieland, who has served as U.S. Trustee for Region 20 since January 2008.
Mr. Crocker was appointed as Region 8 U.S. Trustee in July 2011. Prior to that appointment, he was engaged in the private practice of law in Nashville, Tennessee, for more than 25 years. During that time he also served on the panel of chapter 7 trustees in the Middle District of Tennessee and as a trustee in numerous chapter 11 cases. Mr. Crocker has argued cases before the Fifth, Sixth and Eleventh Circuit Courts of Appeal. As an authority on consumer bankruptcy and trustee-related matters, he has written extensively and spoken frequently at bankruptcy seminars and training programs around the country and advises the U.S. Trustee Program (USTP) on national policy on those matters. Mr. Crocker received his law degree from the University of Mississippi School of Law in Oxford, Mississippi, and his Bachelor of Arts degree from Vanderbilt University in Nashville.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 93 field office locations. Region 20 is headquartered in Wichita, Kansas, with additional offices in Oklahoma City and Albuquerque, New Mexico.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Russell County Man Pleads Guilty to Failing to Register as a Convicted Sex OffenderRead the Press Release
Montgomery, Alabama - On Friday, May 9, 2014, Gregory Whidden, a resident of Russell County, Alabama, pled guilty in the United States District Court for the Middle District of Alabama to a federal felony charge of failing to register as a sex offender, announced United States Attorney George L. Beck, Jr.
A federal grand jury indicted Whidden in February 2014 for one count of failing to register and update a registration as required by the Sex Offender Registration and Notification Act after he traveled in interstate commerce in violation of federal law. According to court documents, Whidden was convicted of sexual abuse second degree in the Circuit Court of Russell County, Alabama in 1987. Due to this conviction, Whidden is required to register as a sex offender for life. Whidden registered in Lee County in 2010 and 2011, then relocated to Florida and registered in Florida. Defendant’s last registration in Florida occurred in November 2012. At the change of plea hearing, Whidden admitted that, as a convicted sex offender, he was required to register and that if he moved to another state he must register in that new state. Whidden also admitted at the hearing that he traveled from Florida to Alabama in August 2013 and relocated to Russell County. Whidden further admitted that, after relocating to Russell County, he did not register as a sex offender in the State of Alabama or update his Alabama registration.
Whidden’s sentencing hearing before Senior United States District Judge Myron H. Thompson is yet to be scheduled. At sentencing, Whidden faces a maximum sentence of ten years in prison, a $250,000 fine, and no less than five years of supervised release following his release from prison. Whidden remains in the custody of the United States Marshals Service pending sentencing.
This case was investigated jointly by the United States Marshals Service and Phenix City Police Department. Assistant United States Attorney Jerusha T. Adams prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Private Security Guard Sentenced for Providing <br /> Armed Security for Drug TransactionRead the Press Release
A former private security guard was sentenced in the District of Puerto Rico today for his role in providing armed security for a drug transaction.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Field Office made the announcement.
Ricardo Amaro-Santiago, 41, of Guaynabo, Puerto Rico, was sentenced to serve 15 years in prison by U.S. District Judge Gustavo A. Gelpi.
Amaro-Santiago was charged in an indictment unsealed on Oct. 6, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals, as part of the FBI undercover operation known as Guard Shack.
According to the indictment and information presented in court, in May 2010, Amaro-Santiago provided security for what he believed was an illegal drug deal, but which in fact was part of the undercover FBI operation. Amaro-Santiago was employed as a private security guard but posed as a Puerto Rico police officer during the transaction. Amaro-Santiago was brought into the scheme by a co-defendant who was a police officer in Puerto Rico. In return for the security he provided, Amaro-Santiago received a cash payment of $1,000, which the court today ordered that he forfeit as part of his sentence.
The case was investigated by the FBI and was prosecuted by Trial Attorneys Marquest J. Meeks and Tracee Plowell of the Public Integrity Section in the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the District of Puerto Rico.Philadelphia Man Charged with Gun CrimeRead the Press Release
An Information was filed charging Jelani Christmas, 30, of Philadelphia, PA, with being a felon in possession of three firearms, ammunition and a large capacity magazine, announced United States Attorney Zane David Memeger.
If convicted the defendants face a maximum possible sentence of ten years imprisonment and $250,000 fine.
The case was investigated by the ATF, and is being prosecuted by Assistant United States Attorney Alicia M. Freind.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Patrick S. Layng to Serve as U.S. Trustee for Colorado, Utah and WyomingRead the Press Release
WASHINGTON – Patrick S. Layng, the U.S. Trustee for the Northern District of Illinois and the Eastern and Western Districts of Wisconsin (Region 11), has been designated by Attorney General Eric Holder also to serve as the U.S. Trustee for Colorado, Utah and Wyoming (Region 19) for an interim period beginning today, the Executive Office for U.S. Trustees announced today. He replaces Richard A. Wieland, who has served as interim U.S. Trustee in the region since July 2011.
Mr. Layng was appointed as Region 11 U.S. Trustee in December 2010. Prior to that appointment, he served as a Regional Criminal Coordinator for the U.S. Trustee Program (USTP) for six years, an Assistant U.S. Attorney in the Northern District of Illinois for more than 14 years, and a law clerk to the Honorable Stanley J. Roszkowski, U.S. District Court, Northern District of Illinois (retired). During his career, Mr. Layng has tried approximately 40 federal criminal trials and argued 14 cases before the U.S. Court of Appeals for the Seventh Circuit. While serving in the USTP, he has also led multi-regional trial teams in complex civil cases involving improper actions by major financial institutions and professional firms. Mr. Layng received his law degree cum laude from the University of Illinois Urbana-Champaign Law School and his undergraduate degree magna cum laude from the University of Illinois Urbana-Champaign College of Commerce.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 93 field office locations. Region 19 is headquartered in Denver with additional offices in Salt Lake City and Cheyenne, Wyoming.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411