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Tuesday 25 March 2014
New York Doctor Charged in Alleged Multi-Million Medicare Fraud SchemeRead the Press Release
BROOKLYN, NY - A criminal complaint was unsealed this morning in Brooklyn federal court charging Dr. Syed Imran Ahmed, 49, with healthcare fraud in connection with his submission of millions of dollars in false Medicare billings. Seizure warrants seeking millions of dollars of the defendant’s alleged ill-gotten gains, including the contents of seven bank accounts, were also unsealed. In addition, a civil forfeiture complaint was also filed today against the defendant’s residence located in Muttontown, New York, valued at approximately $4 million. Further, earlier today search warrants were executed at six locations in New York, Michigan and Nevada. The defendant’s initial appearance is scheduled this afternoon before United States Magistrate Judge Marilyn Go, at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges 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).
As alleged in the complaint, Ahmed engaged in a scheme to submit claims to Medicare for surgical procedures that were not in fact performed. The complaint cites multiple instances in which either patients told law enforcement officers that they never had the procedures that were billed, or hospital medical records did not contain any evidence that the procedures were actually performed. From January 2011 through mid-December 2013, Medicare was billed at least $85 million for surgical procedures by Ahmed, a sole practitioner.
“As alleged, Ahmed created phantom medical procedures to steal very real taxpayer money. The defendant sought to enrich himself and fund his lifestyle through billing Medicare for services he never performed,” stated United States Attorney Lynch. “We are committed to protecting these taxpayer-funded programs and prosecuting those who steal from them.”
“The Medicare system entrusts doctors to provide patients with the care and services they need,” said Acting Assistant Attorney General O’Neil. “The charges unsealed today allege that Dr. Ahmed billed millions of dollars to Medicare for surgical procedures that he did not actually perform. These charges are yet another example of the Department of Justice’s determination to hold accountable those who abuse the trust placed in them and steal from the system for personal gain.”
FBI Assistant Director in Charge Venizelos stated, “Fraudulently billing the government defrauds every American taxpayer. We will investigate cases of graft and greed to protect important programs for those who need them.”
“For a single physician, the alleged conduct in this case is among the most serious I’ve seen in my law enforcement career,” said SAC for HHS-OIG O’Donnell. “Being a Medicare provider is a privilege, not a right. When Dr. Ahmed allegedly billed Medicare for procedures he never performed, he violated the basic trust that taxpayers extend to healthcare providers.”
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 Attorneys William Campos and Erin Argo of the U.S. Attorney’s Office for the Eastern District of New York.
The charges in the complaint 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 its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
The Defendant:
SYED IMRAN AHMED
Age: 49
Glen Head, New York
E.D.N.Y. Docket No. 14-274
New York Doctor Admits Taking Bribes for Referring Tests to New Jersey Clinical LabRead the Press Release
25th Defendant to Plead Guilty in Connection with Scheme
NEWARK, N.J. – A pediatrician with a New York practice in Staten Island and Brooklyn admitted today he accepted bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced.Surender Gorukanti, 46, of Brooklyn, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including Gorukanti, 25 people – including 14 physicians– have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.Gorukanti admitted he accepted checks of $1,000 per month as bribes from BLS in return for referring patient blood specimens to BLS.
The bribery count to which Gorukanti pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 16, 2014. As part of his guilty plea, Gorukanti agreed to forfeit $14,000, representing the bribes he received from BLS.
The investigation has recovered more than $7 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the New Jersey FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-102Defense counsel: Thomas Tormey Esq., New York
Gorukanti, Surender InformationNew York City Man Sentenced for Involvement in Cocaine Distribution ConspiracyRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge Edwin M. Kosik has sentenced George Abreu, age 32, of New York, New York, to 57 months’ imprisonment for his involvement in a conspiracy to distribute more than 3.5 kilograms of cocaine between 2008 and May 24, 2012.
According to United States Attorney Peter J. Smith, Abreu’s role in the conspiracy included delivering cocaine in New York City to individuals traveling from Luzerne County to obtain cocaine for distribution in the Pittston area. FBI Agents arrested Abreu in New York City when he arrived to distribute cocaine to a cooperating witness.
A federal grand jury sitting in Scranton, Pennsylvania, indicted Abreu on the conspiracy charge on March 12, 2013, and on October 21, 2013, Abreu pleaded guilty to the Indictment.
In addition to the 57-month term of imprisonment, Judge Kosik also ordered that Abreu be placed on supervised release for a period of three years following the service of his sentence.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
New Jersey Man Charged with Heroin Trafficking in KingstonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a New Jersey resident was indicted by a federal grand jury in Scranton today for trafficking in heroin in Kingston, Pennsylvania, in January 2013.
According to United States Attorney Peter Smith, the grand jury alleges that George Wormley, age 37, of Montclair, New Jersey, possessed heroin with the intent to distribute it on January 3, 2013.
The charge stems from an investigation by The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Kingston Police, and the Luzerne County District Attorney’s Office.
If convicted of the charge, Wormley faces a potential maximum sentence of 20 years in prison and a $1 million fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a fine of $1 million. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New Jersey Man Charged in Heroin Trafficking SchemeRead the Press Release
PITTSBURGH – A New Jersey man has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
The one-count superseding indictment named Rafael Cabrera, 35, of Passaic, New Jersey.
According to the superseding indictment, from in and around August 2012, to on or about Jan. 10, 2013, in the Western District of Pennsylvania and elsewhere, Cabrera conspired with others to distribute and possess with the intent to distribute 100 grams or more of heroin, a Schedule I controlled substance.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $8,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Eric S. Rosen and Jake D. Pugh are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Missouri Woman Pleads Guilty to Bankruptcy FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Marlene Stephens (61, Kansas City, MO) pleaded guilty to one count of bankruptcy fraud. She faces a maximum penalty of 5 years in federal prison. As part of her plea agreement, Stephens has agreed to pay restitution in the amount of $175,000.48 to various credit card companies. Her sentencing hearing is scheduled for June 18, 2014.
According to court documents, Stephens filed a petition for bankruptcy on October 10, 2008. In that petition, she sought the discharge of more than $500,000 in personal credit card debt. Included in the personal credit card debt was $191,342.51 that Stephens transferred to her sister via credit card convenience checks, in January and February 2008. The investigation revealed that Stephens wrote the convenience checks to her sister, who put the money into a Washington Mutual checking account. At the time Stephens filed the bankruptcy petition, this account had a balance of $175,000.48. Stephens’ bankruptcy, which included the credit card debt, was discharged in February 2009.
A month before Stephens filed her bankruptcy petition, her sister transferred the money from a Washington Mutual account to a Wachovia Bank account. An investigation determined that Stephens concealed the existence of the Wachovia Bank account from the bankruptcy trustee when she filed for bankruptcy in October 2008. The Internal Revenue Service (IRS) was able to trace the funds in the Wachovia Bank account back to Stephens, after the bankruptcy was discharged.
This case was investigated by Internal Revenue Service-Criminal Investigation, with assistance from the United States Trustees Office. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Mexico Man Sentenced for Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that a man from Michoacan, Mexico, convicted of Illegal Reentry after Deportation was sentenced on March 24, 2014, by U.S. District Judge Karen E. Schreier.
Jose Antonio Rivera, a/k/a Ulises Valenzuela-Rivera, age 31, was sentenced to 28 months in custody and assessed $100.
Rivera was indicted for Illegal Reentry after Deportation by a federal grand jury on January 22, 2014. He pled guilty on January 24, 2014.
Rivera is a citizen of Mexico, and was deported from the United States on November 24, 2009. He reentered the United States and was found in South Dakota on July 26, 2010, when he was arrested for a drug-related felony. Following his conviction in South Dakota for the drug-related felony, his second such conviction, he served his sentence and was released to Immigration and Customs Enforcement agents for prosecution for entering the United States without permission of the government.
This case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Connie Larson prosecuted the case.
Rivera was immediately turned over to the custody of the U.S. Marshals Service.
McLaughlin Man Charged with Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender.
Anthony Bobtail Bear, Jr., age 34, was indicted on February 11, 2014, and March 11, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on March 21, 2014, and pled not guilty to the Indictments.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund for each Indictment. Restitution may also be ordered.
The Indictments allege that on December 3, 2013, and again on February 26, 2014, Bobtail Bear unlawfully committed acts of domestic assault against separate victims. At the time of the assaults, Bobtail Bear had at least two separate prior convictions for assaults that were against a spouse or intimate partner.The charge are merely accusations and Bobtail Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Bobtail Bear was remanded to the custody of the U.S. Marshals Service pending trial. Trial dates have not been set.
Marysville Man Sentenced to over Seven Years in Federal Prison for Racially Motivated Assault on White Man and African-American WomanRead the Press Release
SACRAMENTO, Calif. – Billy James Hammett, 30, of Marysville, Calif., was sentenced today by U.S. District Judge John A. Mendez to 87 months in prison for violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his role in a 2011 racially motivated attack against a white man and an African-American woman in Marysville, Calif. The court also ordered Hammett to pay restitution of $175 and to serve a three year period of supervised release. Hammett pleaded guilty on Dec. 17, 2013, and his co-defendants, Perry Sylvester Jackson, 28, and Anthony Merrell Tyler, 33, have also pleaded guilty and are awaiting sentencing.
According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants, each of whom has white supremacist tattoos, attacked the man and woman based on race. After calling the male victim a “[racial slur]-lover,” Jackson punched him twice in the head through the open passenger window. At the same time, Hammett kicked the woman in the chest. A few seconds later, Tyler smashed the car’s windshield with a crowbar. As the attack continued, the woman managed to take refuge inside the convenience store. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. At the end of the incident, Tyler used a racial slur to refer to an African-American witness.
In sentencing the defendant, Judge Mendez said he found surveillance video footage of the assault “disturbing.” He noted that Hammett’s attack on the victims was “unprovoked and unwarranted,” and that the victims continue to suffer.
During the sentencing hearing, Judge Mendez considered Hammett’s background and criminal history, which includes a conviction in 2006 for assaulting a 72-year-old black man, also in Marysville. According to court records, Hammett made racial comments immediately before the unprovoked attack. In addition, Hammett has been affiliated with a number of white supremacist gangs, including Supreme White Power. He has tattoos of the words “white power” across his abdomen, a large swastika on the right side of his torso and the word “skinhead” written across the top of his back. Judge Mendez stated during the sentencing hearing that Hammett poses “a serious threat to the public.”
“The defendant and his friends accosted the victims in public and assaulted them because of their race,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Department is committed to stamping out racial violence and will continue to prosecute hate crimes vigorously.”
“Racially-motivated violence has no place in civilized society,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “This office has a history of prosecuting those perpetrate crimes of hate, and as long as these crimes continue, we will be there to enforce the law and uphold this nation’s Constitutional values.”
“The FBI has a long history of promptly investigating civil rights violations,” said Special Agent in Charge Monica M. Miller for the FBI Sacramento Field Office. “Hammett is experiencing the full force of a federal response against his despicable act. The strong sentence imposed by Judge Mendez demonstrates that hate crimes such as this will not be tolerated in our communities.”
This case was investigated by the FBI with assistance of the Yuba County Sheriff’s Office and the Yuba County District Attorney’s Office. The case is being prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Civil Rights Division.
Jackson is scheduled to be sentenced on April 22, 2014 and Tyler is scheduled to be sentenced on July 8, 2014. Each defendant faces a statutory maximum sentence of 10 years in prison and a fine of $250,000.Manhattan U.S. Attorney Charges Leader of Racketeering Organization in A 48-Count Indictment with 10 Murders and 10 Attempted Murders, Marijuana Trafficking, Money Laundering, and Other ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), and William J. Bratton, the Police Commissioner of the City of New York (“NYPD”), today announced the return of a 48-count superseding Indictment charging MANUEL GEOVANNY RODRIGUEZ-PEREZ, a/k/a “Shorty,” with controlling a massive racketeering organization (the “Rodriguez Enterprise”) whose members sold large quantities of marijuana, murdered and attempted to murder 20 people, transported and laundered millions of dollars, obstructed justice and committed perjury, and engaged in firearms offenses. This Indictment was filed yesterday in connection with “Operation Green Venom,” a coordinated multi-agency investigation that was led by ICE HSI and first announced in October 2010. RODRIGUEZ-PEREZ will be arraigned before U.S. District Judge Laura T. Swain on Thursday at 4:30 p.m.
Manhattan U.S. Attorney Preet Bharara said: “Today we announce the addition of no fewer than 10 murders and attempted murders to the already numerous alleged egregious acts of violence, drug trafficking, and other criminal conduct with which Manuel Rodriguez-Perez is charged. This Office will continue to work with our law enforcement partners until everyone involved in this enterprise is brought to justice.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr., said: “As alleged, the Rodriguez Drug Trafficking Organization sought to maintain its vise grip on the drug trade throughout New York City by using murder and assaults on its competitors and workers alike. HSI and its law enforcement are committed to taking down drug organizations that wreak havoc on our neighborhoods.”
NYPD Commissioner William J. Bratton said: “Individuals who traffic illegal drugs and give orders to take someone’s life have no place in our city. Thanks to the efforts of the investigators and prosecutors involved in this extensive case, these criminals will be prosecuted to the fullest extent of the law.”
According to the allegations contained in the superseding Indictment unsealed yesterday in Manhattan federal court:
RODRIGUEZ-PEREZ, the leader of the Rodriguez Enterprise, is charged with ten murders and ten attempted murders, including the murders of the following victims:
- Francisco Perez, a/k/a “Francie,” on October 26, 1997;
- Antonio Kasse, a/k/a “Toasty,” on December 13, 1998;
- FNU LNU, a/k/a “Carlos Valentin,” a/k/a “Campi,” in or about 2000;
- Noel Herrera, on December 29, 2001;
- Kelly Perez, a/k/a “Red” on September 16, 2002;
- Marino Molina, on January 11, 2003;
- Wilfredo Molina, a/k/a “Willie,” on May 3, 2004;
- Manuel Rivas, a/k/a “Tony el Mono,” on October 29, 2005;
- Richard Cabrera, a/k/a “Bori,” on January 16, 2006; and
- Saturnino Delgado-Garcia, on May 1, 2011
Noel Herrera, Marino Molina, Manuel Rivas, and Saturnino Delgado-Garcia were each murdered in the Dominican Republic. Wilfredo Molina was murdered in New Jersey, and the remaining victims were murdered in New York City. RODRIGUEZ-PEREZ solicited the murder of Delgado-Garcia from prison.
A chart containing the charges in the Superseding Indictment, and the corresponding maximum potential sentences for each count, is attached. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. The charges contained in the Indictment against RODRIGUEZ-PEREZ are merely accusations, and he is presumed innocent unless and until proven guilty.
The Indictment seeks forfeiture of $25 million, which is the approximate amount of gross proceeds received by RODRIGUEZ-PEREZ derived from racketeering activities, properties in New York, Florida, and the Dominican Republic, and cash and jewelry seized by law enforcement officers.
RODRIGUEZ-PEREZ, 41, has been in federal custody since October 15, 2010, when he was arrested during a takedown of more than 50 members of a massive marijuana trafficking ring that transported ton-quantities of marijuana from Florida and California for distribution in the greater New York area from the early 1990’s to 2010.
RODRIGUEZ-PEREZ and eight other defendants were charged in July 2012, in S31 10 Cr. 905 (LTS) with, among other things, five murders and five attempted murders. Since that time, five of the defendants charged in that indictment have pled guilty to, among other things, multiple murders, marijuana trafficking, money laundering, and firearms offenses. The charges against the remaining defendants, Oscar Rodriguez, Theodore Jones, and Jose Espinal, are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Mr. Bharara praised the outstanding investigative work of ICE HSI, the NYPD, and the U.S. Drug Enforcement Administration. He also thanked the Federal Bureau of Investigation, U.S. Marshals Service, the Bergen County, New Jersey, Prosecutor’s Office, the Englewood, New Jersey, Police Department, the U.S. Department of Housing and Urban Development, and the New York City Department of Investigation for their assistance, and added that the investigation is continuing.
The prosecution of the cases arising from “Operation Green Venom” is being overseen by the Office’s Violent Crimes Unit. Assistant U.S. Attorney Amie N. Ely is in charge of the prosecution. Assistant U.S. Attorney Andrew Adams is responsible for the forfeiture proceedings.
Click here to view chart(s)
U.S. v. Manuel Geovanny Rodriguez-Perez Indictment S38 10 Cr 905
Long Island Doctor Arrested and <br /> Accused of Multi-million Medicare Fraud SchemeRead the Press Release
A Long Island, N.Y., doctor was arrested today on charges that he submitted millions of dollars in false billings to Medicare.
The charges were announced by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office and Special Agent in Charge Thomas O’Donnell of the Department of Health and Human Services Office of Inspector General (HHS-OIG).
Dr. Syed Imran Ahmed, 49, was charged with one count of health care fraud by a criminal complaint unsealed this morning in federal court in Brooklyn, N.Y. A seizure warrant seeking millions of dollars of Ahmed’s alleged ill-gotten gains, including the contents of seven bank accounts, was also unsealed. In addition, a civil forfeiture complaint was also filed today against Ahmed’s residence located in Muttontown, N.Y., valued at approximately $4 million. Further, search warrants were executed earlier today at six locations in New York, Michigan and Nevada. Ahmed’s initial appearance is scheduled this afternoon before U.S. Magistrate Judge Marilyn Go.
“The Medicare system entrusts doctors to provide patients with the care and services they need,” said Acting Assistant Attorney General O’Neil. “The charges unsealed today allege that Dr. Ahmed billed millions of dollars to Medicare for surgical procedures that he did not actually perform. These charges are yet another example of the Department of Justice’s determination to hold accountable those who abuse the trust placed in them and steal from the system for personal gain.”
“As alleged, Ahmed created phantom medical procedures to steal very real taxpayer money. The defendant sought to enrich himself and fund his lifestyle through billing Medicare for services he never performed,” stated United States Attorney Lynch. “We are committed to protecting these taxpayer-funded programs and prosecuting those who steal from them.”
“Fraudulently billing the government defrauds every American taxpayer,” said FBI Assistant Director in Charge Venizelos. “We will investigate cases of graft and greed to protect important programs for those who need them.”
“For a single physician, the alleged conduct in this case is among the most serious I've seen in my law enforcement career," said HHS-OIG SAC O’Donnell. “Being a Medicare provider is a privilege, not a right. When Dr. Ahmed allegedly billed Medicare for procedures he never performed, he violated the basic trust that taxpayers extend to healthcare providers.”
As alleged in the complaint, Ahmed engaged in a scheme to submit claims to Medicare for surgical procedures that were not in fact performed. The complaint alleges multiple instances in which either patients told law enforcement officers that they never had the procedures that were billed, or hospital medical records did not contain any evidence that the procedures were actually performed. From January 2011 through mid-December 2013, Medicare was billed at least $85 million for surgical procedures purportedly performed by Ahmed.
The investigation has been conducted by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorney Turner Buford of the Fraud Section and Assistant U.S. Attorneys William Campos and Erin Argo of the U.S. Attorney’s Office for the Eastern District of New York.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
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.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Little Eagle Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Corey Flying Bye, age 25, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on March 18, 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, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 1, 2013 and January 31, 2014, Flying Bye knowingly engaged in, and attempted to engage in, a sexual act with a victim who had not attained the age of 16.
The charge is merely an accusation and Flying Bye is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Flying Bye was released on bond pending trial. A trial date has not been set.
Little Eagle Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Domestic Assault by an Habitual Offender.
Gary Little Bird, Jr., age 34, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on March 18, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 13, 2014, Little Bird assaulted his girlfriend with shod feet.
The charge is merely an accusation and Little Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Little Bird was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lincoln Woman Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
On March 24, 2014, an Indictment was unsealed charging Rachel Rayanne Rodriguez, 28, of Lincoln with conspiracy to distribute 50 grams or more of a mixture or substance containing methamphetamine between April of 2009 and May of 2013. Rodriguez had her first court appearance on March 25, 2014, and was ordered held without bond. Rodriguez’s next scheduled court appearance is a status conference on May 20, 2014.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leader of Identity Fraud Ring Sentenced to 22 Years in PrisonRead the Press Release
The leader of an identity fraud ring was sentenced to 22 years in prison today following his conviction for wire fraud and identity theft, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
U.S. District Court Judge Sean F. Cox imposed sentence on Gerald Bass, 45, of Detroit.
On August 7, 2012, a jury convicted Bass of conspiracy to commit wire fraud, access device fraud and aggravated identity theft. The evidence at trial established that Bass was the leader of a group of conspirators who stole victims’ identification information and accessed their credit accounts at retail stores such as J.C. Penney, Nordstrom, Lowes and Home Depot. Bass and his co-conspirators used this
information to obtain merchandise worth tens of thousands of dollars.At sentencing, Judge Cox stated that Bass’s lengthy criminal record, including his 13 prior convictions for crimes involving theft and dishonesty, was a significant a factor in his sentencing decision. Judge Cox also stated that although the possibility of a long prison sentence had not deterred this defendant Bass from victimizing the public, perhaps Bass’s sentence might deter others from committing this kind of crime.
“Anyone who has had their identity or credit card stolen knows that identity fraud causes serious harm to victims, who can spend years repairing their credit history. Today’s sentence sends a strong message that identity thieves will pay a steep price.” McQuade said.
The case was investigated by the U.S. Secret Service and the Michigan State Police, and prosecuted by Assistant United States Attorneys Abed Hammoud and Patrick Hurford.
Latrobe Post Office Worker Charged with Misappropriating $55K in Money Orders and CashRead the Press Release
PITTSBURGH - A resident of Westmoreland County has been indicted by a federal grand jury in Pittsburgh on a charge of misappropriation of postal funds, United States Attorney David J. Hickton announced today.
The one-count indictment named Jessica L. Croyle, 32, of Greensburg, Pa., as the sole defendant.
According to indictment, from Nov. 1, 2012, to July 19, 2013, Croyle, while employed with the United States Postal Service at the Latrobe, Pa., post office, wrongfully converted to her own use, postal money orders and cash having a total value of $55,362.90.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Kankakee Businessman Sentenced to Prison for Filing False Income Tax Returns and StructuringRead the Press Release
Urbana, Ill. – The owner of ABC Disposal Inc., a Kankakee waste management company, was sentenced late yesterday to a prison sentence for filing false income tax returns and structuring cash withdrawals to avoid detection by the IRS. Joseph S. Deno, 67, was ordered to serve 12 months and one day in prison, followed by 12 months of home confinement during a one-year term of supervised release. Deno has already paid full restitution to the IRS in the amount of $905,261, for unpaid income taxes, plus interest and penalties. In addition, Deno was ordered to forfeit $190,700 of structured funds to the government. U.S. District Judge Michael P. McCuskey advised Deno to report on May 21, 2014, to the federal Bureau of Prisons to begin serving his prison sentence.
Deno pled guilty on Sept. 6, 2013, to six counts of filing false income tax returns and one count of structuring. Deno, the sole shareholder, owner and operator of ABC Disposal, Inc., admitted that for tax years 2005 through 2010, he withheld financial records from his tax preparer. This resulted in under-reporting his company’s gross receipts and underpayment of his federal income taxes.
Deno also pled guilty to structuring cash withdrawals from three bank accounts over a one-year period, from March 2010 to March 2011. To avoid a Currency Transaction Report from being prepared by his bank and sent to federal authorities, Deno withdrew funds he had hidden from his accountant and the IRS in amounts just under the $10,000 threshold, for a total of $190,700. Financial institutions are required to complete and file CTRs with the IRS for any currency transactions in excess of $10,000.
The Internal Revenue Service, Criminal Investigation Division conducted the case investigation. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.Jury Convicts KC Man of Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today on charges related to child pornography.
Donald T. Paris, Jr., 27, of Kansas City, was found guilty of one count of producing child pornography, one count of receiving child pornography over the Internet, one count of transporting child pornography over the Internet and one count of possessing child pornography.
Evidence introduced during the trial indicated that Paris used a child victim, identified in the indictment as “CV,” to produce child pornography in December 2010. Paris also used his e-mail account to receive, transport and possess separate images of child pornography in December 2010 and December 2011.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately 30 minutes before returning the guilty verdicts to U.S. District Judge Beth Phillips, ending a trial that began Monday, March 24, 2014.
Under federal statutes, Paris is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 80 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Taney County, Mo., Sheriff’s Department, the North Richland Hills, Texas, Police Department and the Branson, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Johnstown Woman Admits Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distributing heroin, United States Attorney David J. Hickton announced today.
Desalynn L. Coleman, 33, pleaded guilty before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Oct. 30, 2012, Coleman distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for July 31, 2014, at 10:30 a. m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Coleman.
Indianapolis Man Sentenced as Part of Collaboration Between Offices of Marion County Prosecutor and United States AttorneyRead the Press Release
More Indianapolis results as state and federal prosecutor’s offices crack down on violent gun-related crime
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Raymond Barnes, 32, of Indianapolis, has been sentenced to 37 months (over three years) in federal prison by U.S. District Judge Jane Magnus-Stinson. Barnes admitted to illegally possessing a firearm as a convicted felon. Barnes’ conviction is the result of a joint prosecution effort between the U.S. Attorney’s Office and the Marion County Prosecutor’s Office.
“Three years ago, this Office pledged to federally prosecute more illegally-armed felons than ever before,” said Hogsett. “Today’s sentence supports that pledge to take off our streets the most violent criminals who terrorize our neighborhoods.”
Court documents state, on July 13, 2013, Indianapolis Metropolitan Police Officers responded to a call of gunshots being fired in the 3800 block of North Boulevard Place on the City’s Northside. When officers arrived, they found Barnes walking away from the scene and detained him. While searching Barnes, officers located a loaded cartridge magazine in his pants pocket and placed him under arrest. Shortly after arresting him, Barnes escaped and fought with officers, injuring one and sending the officer to the hospital.
Additional responding officers located spent shell casings and four live rounds in the area of the shooting. A short time later, officers obtained a search warrant for Barnes’ vehicle which was parked nearby. In the vehicle, officers found a Keltee, SUB 2000, .40 caliber rifle with a jammed round in the chamber. The magazine found in Barnes’ pocket fit the rifle.
Announced in March of 2011, the Violent Crime Initiative represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly three years since, more than 225 defendants have been charged.
“Credit should go where it is due. Marion County Prosecutor Terry Curry saw the need to improve the cooperation between his office and the United States Attorney’s Office. As part of his vision, Prosecutor Curry has since cross-designated several of his best prosecutors to screen gun cases and make thoughtful decisions about whether to prosecute repeat violent offenders in state court or in federal court. In this sense, Prosecutor Curry has always been ‘out front’ in the challenge of ridding Indianapolis of the high level of gun violence it has experienced,” Hogsett explained.
According to Special Assistant U.S. Attorney (SAUSA) Thomas Lupke, who is prosecuting the case for the government, Barnes faces three years of supervised release after his sentence. Lupke currently serves as a SAUSA for Hogsett’s office and splits his time as a deputy prosecutor with the Marion County Prosecutor’s Office where he specializes in gun-related cases.
Identity Thief Sentenced to Six Years in PrisonRead the Press Release
PHILADELPHIA - Carnell Ragan, 48, of Philadelphia, was sentenced today to 72 months in prison for an identity theft scheme that caused at least $95,233.22 in losses to his victims. The prison term includes a two year mandatory term. Ragan stole personal information of hundreds of unsuspecting individuals. He obtained classified hospital records which contained patient and staff account and personal information, official DMV and credit card company’s holograms and employee badges of various companies. He created counterfeit credit cards and he also sold his victims’ credit card account numbers to anyone who wanted one and who would pay his fee. He invested in sophisticated equipment which enabled him to do this on a large scale. When Pennsylvania State Police searched Ragan’s home, they found account numbers written on pieces of paper, on magnetic strips, pressed on credit cards, on ink rolls and in hospital records. Of those found, 107 victims reported losses.
Ragan pleaded guilty on October 4, 2013, to conspiracy to commit access device fraud and aggravated identity theft. In addition to the prison term, U.S. District Court Judge R. Barclay Surrick ordered restitution of $95,233.22 to Ragan’s victims, a $200 special assessment, and three years of supervised release.
The case was investigated by United States Secret Service and Pennsylvania State Police. It was prosecuted by Assistant United States Attorney Virgil Walker.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Georgia Man Sentenced to 7 Years in Federal Prison for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan today sentenced John Charles Stevenson (46, Rincon, Georgia) to 7 years in federal prison for receiving videos and images of child pornography over the Internet. He was also ordered to serve a 5-year term of supervision and to register as a sex offender, following his incarceration. Stevenson pleaded guilty on October 29, 2013, and has been in the custody of the U.S. Marshals Service since his arrest in Rincon, Georgia on June 21, 2013.
According to court documents, an agent with the Federal Bureau of Investigation conducted an investigation to identify individuals, in Jacksonville, who were trading images and videos depicting child pornography over the Internet. The agent determined that a computer using a particular Jacksonville Internet Protocol (IP) address was hosting child pornography. The agent was able to download several videos of prepubescent children engaged in sexually explicit conduct from this host computer. Further investigation revealed that the subscriber information for this IP address resolved to a residence in Jacksonville, where Stevenson was living. On January 31, 2013, FBI agents and other officers executed a federal search warrant at this Jacksonville residence.
During an interview, Stevenson stated that he had been viewing and downloading child pornography for at least three years. He described his activities with child pornography as "interesting, curious, and novel," and stated that he downloads and watches child pornography for his “personal use.” Subsequent forensic analysis of Stevenson's two laptop computers seized from the residence revealed that they contained a total of at least 24 videos and 51 images depicting child pornography.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Georgia Husband and Wife Tax Return Preparers Sent to Prison for Tax FraudRead the Press Release
Detrick and Natashia Tucker, a husband and wife who owned and operated a tax preparation business named T&T Express Tax located in Pine Mountain, Ga., were sentenced to serve 12 months and one day and 46 months in prison, respectively, for crimes relating to the preparation of false tax returns, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. Detrick Tucker previously pleaded guilty to aiding and assisting in the preparation of false tax returns and Natashia Tucker pleaded guilty to conspiring to defraud the United States by filing false tax returns. Natashia Tucker was ordered to pay $1,483,025 in restitution and Detrick Tucker was ordered to pay restitution in the amount of $66,235.
According to court documents, the Tuckers conspired to fraudulently inflate refunds on their clients’ tax returns in order to increase the popularity of T&T Express Tax and secure more business. Detrick Tucker contributed to the conspiracy by registering T&T Express Tax with the Internal Revenue Service (IRS) so that the false returns could be electronically filed and by performing managerial duties. He also knowingly allowed Natashia Tucker to use his IRS registration numbers to file her own false tax returns. As the main tax return preparer at T&T Express Tax, Natashia Tucker prepared the majority of the false returns at the business. She primarily obtained the artificially high refunds by abusing the Earned Income Tax Credit and by creating false business information for her clients. During its three years of operation, T&T Express Tax filed at least 268 fraudulent federal tax returns that claimed over $1,000,000 in false refunds.
The case was investigated by special agents of the IRS-Criminal Investigation and the Georgia Department of Revenue. Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Tax Division prosecuted the case.
Georgia Husband and Wife Tax Return Preparers Sent to Prison for Tax FraudRead the Press Release
WASHINGTON – Detrick and Natashia Tucker, a husband and wife who owned and operated a tax preparation business named T&T Express Tax located in Pine Mountain, Ga., were sentenced to serve 12 months and one day and 46 months in prison, respectively, for crimes relating to the preparation of false tax returns, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. Detrick Tucker previously pleaded guilty to aiding and assisting in the preparation of false tax returns and Natashia Tucker pleaded guilty to conspiring to defraud the United States by filing false tax returns. Natashia Tucker was ordered to pay $1,483,025 in restitution and Detrick Tucker was ordered to pay restitution in the amount of $66,235.According to court documents, the Tuckers conspired to fraudulently inflate refunds on their clients’ tax returns in order to increase the popularity of T&T Express Tax and secure more business. Detrick Tucker contributed to the conspiracy by registering T&T Express Tax with the Internal Revenue Service (IRS) so that the false returns could be electronically filed and by performing managerial duties. He also knowingly allowed Natashia Tucker to use his IRS registration numbers to file her own false tax returns. As the main tax return preparer at T&T Express Tax, Natashia Tucker prepared the majority of the false returns at the business. She primarily obtained the artificially high refunds by abusing the Earned Income Tax Credit and by creating false business information for her clients. During its three years of operation, T&T Express Tax filed at least 268 fraudulent federal tax returns that claimed over $1,000,000 in false refunds.
The case was investigated by special agents of the IRS-Criminal Investigation and the Georgia Depatment of Revenue. Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Tax Division prosecuted the case.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Four Gang Members Found Guilty of Taking Part in Conspiracy That Led to Murders, Shootings and Other Violence-One Murder Took Place Outside A Funeral in Northwest Washington-Read the Press Release
WASHINGTON – Four members of a criminal street gang based at 14th and Girard Streets in Northwest Washington have been found guilty by a jury of murder and other charges stemming from a conspiracy to assault, kill, and threaten their rivals and obstruct justice.
The guilty verdicts were announced today by U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department, and Robert D. MacLean, Acting Chief of the U.S. Park Police.
The defendants, all from Washington, D.C., include Robert Givens, 21; Keir Johnson, 24; Lester Williams, 26, and Marcellus Jackson, 25. The guilty verdicts followed nearly four months of trial in the Superior Court of the District of Columbia. Givens, Johnson and Williams were found guilty on March 21, 2014, of murder and other offenses. Jackson was found guilty on the same date of conspiracy and related offenses. The jury then continued deliberations of other charges against Jackson, finding him guilty on March 24, 2014 of assault with a dangerous weapon and related charges. Today, the jury found him guilty of a second-degree murder charge.
The Honorable Lynn Leibovitz scheduled sentencing for June 13, 2014. The defendants, who have been in custody since their arrests, face decades in prison.
The 14th and Girard gang, also known as G-Rod, 1-4, and the Cut Crew, was centered in the areas of 14th and Girard and 14th and Fairmont Streets NW. The group was engaged in a longstanding conflict with rival crews, especially ones that were based in the areas of 17th and Euclid Streets NW and the 600 block of Morton Street NW. The gang’s victims included Sean Robinson, 18, who was killed in the parking lot of a school in August 2010, and Jamal Coates, 21, who was killed following a funeral in September 2010.
“During a four-month trial, this jury learned about the outrageous gang violence that culminated with the brazen daylight murder of 21-year-old Jamal Coates at a busy U Street intersection,” said U.S. Attorney Machen. “That murder came just a month after this gang killed a teenager in a school parking lot. These guilty verdicts send a clear message about our community’s refusal to tolerate gang violence. In the District, we hold accountable the crew members who try to spread chaos and fear throughout our neighborhoods.”
“These verdicts are a reminder to our community that every sector and department of the criminal justice system will make every effort and exhaust its resources to ensure that our streets are safer by eradicating violent street gangs,” said Police Chief Lanier. “Violence will not be tolerated, regardless of the intended recipient. I applaud all the hard work and collaboration of every agency involved in making today’s verdicts possible.”
Givens was found guilty of second-degree murder while armed in the slaying of Mr. Robinson, as well as a charge of assault with a dangerous weapon involving a second victim shot at the scene. He also was found guilty of conspiracy, firearms offenses, and charges that he committed the crimes for the benefit of a criminal street gang.
Johnson and Williams were each found guilty of first-degree murder while armed in the killing of Mr. Coates. They also were found guilty of assault with intent to kill in the shooting of another individual in that attack, as well as assault with a dangerous weapon for firing upon a third person that day. Johnson and Williams also were found guilty of conspiracy, firearms offenses, and charges that they committed the crimes for the benefit of a criminal street gang. Finally, Johnson also was found guilty of a charge of assault with intent to kill while armed stemming from a separate attack in June 2010 in which a man was wounded.
In addition to conspiracy, Jackson was found guilty of second-degree murder in the slaying of Mr. Coates, assault with a dangerous weapon involving an attack against one of the individuals with Mr. Coates, and charges that he committed the offenses for the benefit of a criminal street gang.
According to the government’s evidence, the shootings resulted from a longstanding conflict with rival crews. The government presented evidence of these and other crimes:
June 27, 2010: Johnson chased, shot, and attempted to kill a rival crew member in the parking lot of a gas station in the 3400 block of Georgia Avenue NW.
Aug. 11, 2010: Givens and others committed the murder of Mr. Robinson, who lived in the area of 17th and Euclid Streets, as well as the shooting of two 14-year-olds who were with him while they stood together in the parking lot of a school in the 2600 block of Mozart Street NW.
Sept. 28, 2010: Johnson and Williams committed the murder of Mr. Coates, a rival crew member, near 13th and U Streets NW, during the funeral procession for a young female with family ties to the rival crew. In addition to shooting Mr. Coates, Williams and Johnson shot a second person in the attack and fired upon a third individual. Jackson provided assistance to Johnson and Williams.
After the funeral shooting, the defendants took many steps to attempt to obstruct justice and avoid prosecution, such as trying to find and locate witnesses and in the case of two of the defendants, fleeing to North Carolina.
The men were indicted in December 2011, following an investigation by the Metropolitan Police Department, the U.S. Park Police, and the Drug Enforcement Administration. Two other members of the crew earlier pled guilty to charges stemming from their violent conduct.
In announcing the verdicts, U.S. Attorney Machen, MPD Chief Lanier, and Acting U.S. Park Police Chief MacLean thanked those who investigated the case from theMPD, the Park Police, and the DEA. They also expressed appreciation for the assistance provided by the U.S. Marshals Service; the FBI/MPD Safe Streets Task Force; the U.S. Postal Inspection Service; the FBI Cellular Analysis Survey Team; the FBI Digital Forensic and Analysis Section; the U.S. Secret Service Forensic Sciences Division; the District of Columbia Department of Corrections Office of Investigative Services; the District of Columbia Department of Forensic Sciences; the Washington D.C./Baltimore High Intensity Drug Trafficking Area; the Alexandria, Va. Police Department; the Marlboro County, S.C. Sherriff’s Office, and the Miami-Dade County State’s Attorney’s Office. They also acknowledged the assistance of Bruce Budowle, PhD, executive director of the University of North Texas Health Science Center’s Institute of Investigative Genetics.
They expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorneys Sharad Khandelwal and Joseph P. Cooney, who helped secure the indictment; Assistant U.S. Attorney Kacie Weston, who assisted with trial preparation; Assistant U.S. Attorneys Chrisellen Kolb and David Goodhand who assisted with legal analysis; and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. In addition, they acknowledged the work of Legal Assistants Kendra Johnson, Marian Russell, Sharon Newman, Kwasi Fields, Philip Aronson, and Benjamin Kagan-Guthrie; former Intelligence Analyst Lawrence Grasso; Intelligence Analyst Zachary McMenamin; Information Technology Specialist Leif Hickling; Victim/Witness Security Specialists Michael Hailey, M. Laverne Forrest, Debra Cannon, Tanya Via, and Katina Adams; Victim/Witness Advocate Marcia Rinker; and Criminal Investigators Durand Odom, Tommy Miller, Mark Crawford, and Christopher Brophy.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Todd Gee, Emily Miller, Laura Bach, and Deborah Sines, who prosecuted the case.
14-070Fort Worth Man Guilty in Extensive Mortgage Fraud Scheme, Federal Income Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas - A 64-year-old Fort Worth man has pleaded guilty to mortgage fraud and federal income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lawrence Michael Day pleaded guilty to conspiracy to commit mail and wire fraud affecting a financial institution today before U.S. Magistrate Judge Don Bush. Day also pleaded guilty today to an Information charging him with two counts of tax fraud.
According to information presented in court, from 2005 to 2008, Day conspired with others to defraud lending institutions by providing fraudulent documents and causing residential loans to be provided based on the fraudulent information. One such property was located on Carlton Court in McKinney, Texas. A total of 28 properties located in Cedar Hill, Cresson, Dallas, Euless, Fairview, Fort Worth, Frisco, Heath, Hurst, McKinney, Murphy, Plano, Prosper, and Watauga, Texas, were involved in the scheme. Based on this criminal activity, Day personally gained $1,877,032.56.
On Apr. 11, 2013, a federal grand jury indicted Day and five others for their participation in this mortgage fraud scheme. Co-defendants Donna Shirley Cobb, 53, of Aledo, Texas; Michael Jerome Edwards, 41, of Lewisville, Texas; Scott Cameron Sherman, 38, of Mansfield, Texas; and Donald Lee Mattox, 41, of McKinney, Texas, have all pleaded guilty in this scheme and are awaiting sentencing.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
In another scheme, on Oct. 8 2008, Day claimed a refund of $981,952 on his 2006 federal income tax return to which he knew he was not entitled. On Oct. 10, 2008, Day claimed a refund of $2,895,041 on his 2007 federal income tax return to which he knew he was not entitled. Day prepared and submitted fraudulent Forms 1099-OID worksheets in support of both fraudulent federal income tax returns.
Day faces up to 30 years in federal prison for the mortgage fraud violation and has agreed to submit to forfeiture of $1,877,032.56. He also faces up to three years in federal prison and a fine of up to $100,000 for each of the tax fraud violations. A sentencing date has not been set.These cases are being investigated by the Federal Bureau of Investigation, the Federal Housing Finance Agency – Office of Inspector General, and the Internal Revenue Service-Criminal Investigation. These cases are being prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.
####Former Youth Director and Parish Outreach Coordinator Sentenced for Distribution of Child PornographyRead the Press Release
ATLANTA – Kevin Hickey, a former church youth director and Director of Parish Outreach for Life Teen International, has been sentenced to ten years in federal prison for distributing child pornography.
“This Defendant was entrusted with counseling and protecting children, but instead collected and distributed highly graphic images portraying their sexual exploitation and abuse” said United States Attorney Yates. “We will to continue to aggressively prosecute those who pose such a great threat to our children.”
“HSI puts special emphasis on investigating consumers of child pornography who have access to children through positions of trust,” said Special Agent in Charge Brock D. Nicholson, Homeland Security Investigation (HSI) Atlanta. “My special agents, our law enforcement partners and prosecutors at all levels are engaged in a relentless pursuit of child pornographers. By putting men like Kevin Hickey behind bars, I have no doubt that we are saving innocent children from the trauma of rape and exploitation.”
According to United States Attorney Yates, the criminal indictment, and information presented in court: Kevin Hickey was identified as an individual with a sexual interest in children and who collected and distributed child pornography. In June 2013, Hickey, using his online screen name “funguyatl77,” engaged in an online communication, monitored by federal agents, in which he stated that he was watching “perving vids” and offered to share child pornography. On June 3, 2013, Hickey transmitted a video showing two prepubescent males being sodomized by an adult male. Hickey further displayed photographs of children he took surreptitiously in public places and was heard gratifying himself sexually during the online conversation. A subsequent investigation by Homeland Security Investigations agents led them to Hickey and to Hickey’s home, where he maintained his computer and engaged in the collection and distribution of these pornographic images. Thousands of images of child exploitation have been located on Hickey’s electronic devices.
Hickey, 39, of Atlanta, Ga., was sentenced by United States District Judge Timothy C. Batten, Sr. to ten years in prison to be followed by lifetime supervised release. He was ordered to pay $1,000 in restitution, and a $100 special assessment. The defendant will be required to register as a sex offender when he is released from prison.
This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement.
This case is being 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 U.S. Attorneys’ Offices, 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.
Assistant United States Attorney Jill E. Steinberg is prosecuting the case.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Wells Resident Sentenced to 18 Months for Failure to Register as a Sex OffenderRead the Press Release
Contact: James W. Chapman, Jr.
Assistant U.S. Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert
Wayne Lyon, age 27, formerly of Wells, was sentenced in U.S. District Court in Portland by
Judge Nancy Torresen to eighteen months in prison, followed by five years of supervised
release, for failing to register as a sex offender. Lyon pled guilty to this offense on October 29,
2013.According to court records, in 2007 the defendant pled guilty in Arizona to Sexual
Conduct with a Minor, a crime that required him to register as a sex offender under state and
federal law upon his release from jail. In 2009, when he updated his registration in Arizona, he
acknowledged that he understood that his obligation to register as a sex offender was a lifetime
requirement and that if he moved to another state, he had to comply with the registration
requirements of that state. Soon thereafter, Lyon left Arizona and moved to Arkansas and then
Missouri before arriving in Maine in 2012 without ever registering as a sex offender in any of
those states. Federal authorities arrested Lion on July 2, 2013.This case was investigated by the Wells Police Department and the U.S. Marshals
Service.Former Senior Vice President of Marketing at A&P Admits Wire FraudRead the Press Release
NEWARK N.J. – The former senior vice president of marketing at A&P, a U.S. supermarket and liquor store chain, today admitted his role in a scheme to defraud A&P by selling for personal gain event tickets that were intended for A&P’s use, U.S. Attorney Paul J. Fishman announced.
John R. Moritz, 44, of Mason, Ohio, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From December 2010 through December 2011, Moritz worked at A&P, a U.S. supermarket and liquor store chain that is headquartered in Montvale, N.J. He arranged for A&P to purchase thousands of tickets to sporting events, concerts and other shows that were to be used to reward high-performing A&P employees and for other legitimate business purposes. However, Moritz resold more than 7,000 tickets to third parties over the internet, without A&P’s knowledge or consent. Some of these tickets were for the 2011 Super Bowl, the 2011 New York Yankees playoffs and Bon Jovi, Lady Gaga and U2 concerts. He admitted that as a result of his conduct, he fraudulently obtained $1,218,192.
The fraud count carries a maximum potential penalty of 20 years in prison and up to a $250,000 fine. Sentencing is scheduled for July 9, 2014.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark and Evan Weitz of the Asset Forfeiture and Money Laundering Unit.
14-103
Defense Counsel: Lawrence S. Feld Esq. and Paul Silverman Esq. New York
Former Post Office Manager Gets 4 Years Probation for Misusing Funds, Stealing from MailRead the Press Release
PITTSBURGH – A former U.S. Post Office employee was sentenced today in federal court to four years probation and restitution of $5,729.65 on her convictions of misappropriation of postal funds and theft of mail by a postal employee, United States Attorney David J. Hickton announced today.
Senior United States District Court Judge Donetta W. Ambrose imposed sentence upon Jennifer M. Soltis.
According to information presented to the court, from Oct. 8, 2012 to Jan. 9, 2013, Soltis, while employed as the Acting Officer in Charge with the United States Postal Service at the Smock, Pa., post office, converted to her own use, postal money orders, stamps and cash having a total value of $5,729.65. On Dec. 9, 2012, Soltis also embezzeled a Wal-Mart gift card from an item of mail.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Service, Office of Inspector General, for the investigation that led to the successful prosecution of Soltis.
Former Police Officer Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDREW W. NIELSEN, 49, of South Windsor, pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to one count of possession of child pornography.
According to court documents and statements made in court, between November 2010 and April 2011, NIELSEN purchased several DVDs containing child pornography, including depictions of prepubescent minors, from a foreign company and had them shipped to his residence. NIELSEN was arrested on November 1, 2012. On that date, law enforcement executed a court-authorized search warrant at NIELSEN’s residence and seized several of the DVDs that he had ordered.
NIELSEN was a police officer with the East Hartford Police Department at the time of the offense. He resigned from the police department after his arrest.
Judge Covello scheduled sentencing for June 18, 2014, at which time NIELSEN faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
NIELSEN has been released on bond under electronic monitoring by the United States Probation Office since November 2012.
This matter is being investigated by the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
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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[email protected]Former New York Attorney Sentenced to Fifty Months in PrisonRead the Press Release
SAN FRANCISCO – Leigh E. Sprague was sentenced yesterday to fifty months in prison and ordered to pay $1.4 million in restitution after being convicted of transporting stolen money in foreign commerce, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Sprague, 43, of Fort Atkinson, Wis., pleaded guilty on Dec. 16, 2013, to transporting more than $5 million of stolen funds in foreign commerce. According to court records, Sprague graduated from Columbia Law School and then worked in two large law firms in New York, eventually transferring to a law firm’s Moscow office. After leaving the law firm, in 2007 he joined United Company Rusal in Moscow, where he served as the Head of the Corporate Finance Unit until he was fired in April 2011.
In June 2010, Sprague incorporated a shell corporation set up in the Republic of Seychelles. Although Sprague owned and managed the shell corporation, he forged a stock certificate falsely reflecting that the shell corporation was owned by his employer. After setting up a bank account in Geneva, Switzerland, in the name of the shell company, Sprague falsely represented to Goldman Sachs that he was authorized to direct Goldman to liquidate $10 million of an asset belonging to Sprague’s corporate employer. Relying on Sprague’s false statements and forged documents, Goldman liquidated $10 million of the asset and paid that amount into the shell company’s Swiss bank account.
According to court records, Sprague then transferred the funds to bank accounts he controlled in various parts of the world, including Belize, Switzerland, Hong Kong, and the United States. He also used the money on lavish personal expenditures, including more than $800,000 on rare collectors’ automobiles, remodeling an ocean-view home he owned in Malibu, Calif., and paying off significant credit card bills. Several months after stealing the $10 million, Sprague allegedly tried to have Goldman liquidate an additional $5 million through the same scheme. Goldman and Sprague’s employer discovered the scheme, however, and did not transfer this money. Sprague then allegedly fled from Moscow.
Sprague transferred more than $5 million of the stolen money to the United States. According to court records, Sprague then tried to transfer much of that money to an account in Belize, but he failed. Law enforcement authorities seized more than $6 million of the stolen funds as well as many luxury collector automobiles Sprague had purchased with the stolen funds. In all, law enforcement authorities and Sprague’s employer have recovered approximately $8.5 million of the $10 million Sprague diverted.
Sprague, formerly resided in New York, N.Y., and in Moscow, Russia. The United States Attorney’s Office filed an Information on Oct. 30, 2013, charging Sprague with one count of transporting stolen money in foreign commerce, in violation of Title 18, United States Code, Section 2314.
The sentence was handed down by the Honorable Thelton E. Henderson, United States District Court Judge, following Sprague’s guilty plea. Judge Henderson also sentenced the defendant to a three-year period of supervised release and ordered Sprague to pay $1,416,260.85 in restitution. The defendant will begin serving the sentence on May 5, 2014.
Doug Sprague and Patricia Kenney are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
(Sprague indictment )
Former IRS Employee Indicted for Taxpayer ID Theft, Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former employee of the Internal Revenue Service is among three defendants who have been indicted for stealing taxpayers’ identity information in order to receive fraudulent tax refunds.
Taylor S. Knight, 32, and Michael J. Moore, 27, both of Kansas City, Mo., and Michael Stalcup, 42, of Farley, Mo., were charged in a six-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, March 18, 2014. The indictment was unsealed and made public today upon their arrests and initial court appearances.
According to the indictment, Knight worked as an employee of the IRS at the office at 333 W. Pershing Rd., Kansas City, from March 2009 to January 2012. Taylor allegedly abused her position of trust by accessing the information of three taxpayers without authorization.
On Sept. 30, 2011, Knight allegedly used the information from two of the victim taxpayers to submit a bogus online application for three prepaid debit cards. These debit cards were issued and mailed to the residence of Moore’s grandmother, the indictment says. Moore allegedly monitored the mail sent to his grandmother’s address and retrieved the three prepaid debit cards.
For one of the victim taxpayers, the indictment says, Knight submitted a bogus online application for a prepaid debit card that was approved and mailed to an address in Oak Grove, Mo.; this debit card was never used. The indictment alleges that Knight submitted this false online application to test whether her scheme to defraud the IRS was viable.
On Oct. 17, 2011, one of the conspirators allegedly submitted a 2010 tax return for two of the victim taxpayers, who were married and filed their taxes jointly. The IRS approved a $46,572 refund, the indictment says, of which $5,000 was deposited on a debit card that had been obtained by Knight. The IRS attempted to deposit the remaining $41,572 refund on the other debit cards obtained by Knight, according to the indictment, but the receiving banks rejected the deposits.
Moore allegedly telephoned the IRS and falsely claimed to be the victim. He allegedly provided the IRS representative pertinent personal identification information for both victims and requested the IRS to send the remaining tax refund to a new address located in Independence, Mo. Moore identified this address, the indictment says, because it was his former residence and he knew it was unoccupied.
In August 2011, the victim taxpayers filed legitimate amended tax returns. According to the indictment, a $46,734 refund check was sent to the Independence address. Moore allegedly received the refund check at his former residence and gave it to Knight. Knight allegedly paid Stalcup $500 to help her cash the refund check. Knight allegedly obtained false identification documents – including Social Security cards and driver’s licenses – so that she and Stalcup could assume the identity of the victim taxpayers. They attempted to cash the refund check at a local gas station, but the business refused and reported the incident to law enforcement.
The federal indictment charges Knight, Moore and Stalcup with participating in a conspiracy to defraud the United States by using the identification of genuine taxpayers to fraudulently induce the IRS into issuing tax refund payments based on false information submitted by co-conspirators.
In addition to the conspiracy, Knight and Moore are charged together with one count of the theft of government money, two counts of aggravated identity theft, one count of mail fraud and one count of the misuse of a Social Security number.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by the Treasury Inspector General for Tax Administration.Former Financial Advisor Sentenced to 24 Months in Prison on Bank Fraud ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Christopher Williams of Bryant, Arkansas appeared before United States District Judge Susan Weber Wright to be sentenced for bank fraud. After receiving testimony from the case agent and a letter written on behalf of the elderly lead victim, Judge Wright sentenced Williams to 24 months’ imprisonment to be followed by 5 years’ of supervised release. Judge Wright also ordered Williams to pay over $200,000 in restitution to the victims of his offense.
A federal grand jury indicted Williams in January 2013 on charges of bank fraud and aggravated identity theft. Williams pled guilty to bank fraud in December 2013. When entering his plea, Williams admitted that after losing his job as a financial adviser at Charles Schwab in June 2012, he reestablished contact with a former client. During visits to the client’s Little Rock home, Williams obtained sensitive financial account information that he used to access the client’s online account at Bank of America and also deceived the client into signing personal checks made payable to third-party organizations under Williams’s control. Williams then used the client’s personal identifiers to create an E*TRADE online brokerage account to facilitate the transfer of money out of the client’s Bank of America account and opened credit cards in the client’s name for Williams’s own personal use. The scheme persisted until his arrest in December 2012.
The United States Attorney acknowledges the valuable assistance of Special Agent Charles Briscoe of the Office of the Inspector General for the Social Security Administration, Special Agent Lee Wood of the United States Secret Service, and Special Agent Amy Briscoe of the United States Naval Criminal Investigative Service for their extraordinary work on this investigation. Assistant United States Attorney Alexander D. Morgan prosecuted the case for the United States.
Former Army National Guard Soldier Pleads Guilty in Connection with Bribery and Fraud Scheme <br /> to Defraud the U.S. Army National Guard BureauRead the Press Release
A former soldier of the U.S. Army National Guard has pleaded guilty for his role in a bribery and fraud scheme that caused approximately $70,000 in losses to the U.S. Army National Guard Bureau, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Former Sergeant First Class Michael Rambaran, 51, of Pearland, Texas, pleaded guilty today to one count of conspiracy, one count of bribery and one count of aggravated identity theft. Sentencing is scheduled for June 24, 2014 before U.S. District Judge Lee H. Rosenthal in Houston.
The case arises from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 22 of whom have pleaded guilty.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to Army National Guard soldiers who referred others to join the Army National Guard. Through this program, a participating soldier could receive bonus payments for referring another individual to join the Army National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Rambaran admitted that between approximately February 2008 and August 2011, while he was a recruiter for the National Guard, he obtained the names and Social Security numbers of potential soldiers and provided them to recruiting assistants so that they could use the information to obtain fraudulent recruiting referral bonuses by falsely claiming that they were responsible for referring those potential soldiers to join the Army National Guard, when in fact they were not. In exchange for the information, Rambaran admitted that he personally received a total of approximately $29,000 in payments from the recruiting assistants.
Co-conspirators Edia Antoine, Ernest A. Millien III and Melanie Moraida pleaded guilty to conspiracy and bribery in connection to this scheme. Antoine and Millien are each scheduled to be sentenced on Aug. 24, 2014. Moraida is scheduled to be sentenced on Aug. 26, 2014. All of these sentencing hearings are set before U.S. District Judge Rosenthal in Houston.
Another alleged co-conspirator, Christopher Renfro, who was indicted on Aug. 7, 2013, remains charged with two counts of wire fraud and two counts of aggravated identity theft. Trial is currently scheduled for June 16, 2014, before U.S. District Judge Rosenthal in Houston. An indictment is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
The cases are being investigated by special agents from the San Antonio Fraud Resident Agency of Army CID’s Major Procurement Fraud Unit. This case is being prosecuted by Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.Former Air National Guard Recruiting Assistant Pleads Guilty to Conspiracy to Defraud Department of DefenseRead the Press Release
Max P. Andolsek, 52, of Tullahoma, Tenn., pleaded guilty yesterday in U.S. District Court to conspiracy to defraud the Department of Defense, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Andolsek, a former recruiting assistant for the Air National Guard, and two other individuals, were indicted on July 17, 2013. He faces up to five years in prison and a fine of $250,000.
“Our nation’s men and women who are considering serving their country through enlistment in the military deserve to be dealt with candidly and with honesty,” said U.S. Attorney David Rivera. “Recruiters are the first faces of the military seen by many considering service. Those who attempt to profit financially by fraudulently manipulating our nation’s recruitment programs undermine their effectiveness, particularly when we are experiencing lean financial times for our nation’s defense. All attempts to defraud our nation’s military will be vigorously pursued by this office and our law enforcement partners.”
“Recruitment into the United States Military should be about service to one’s country and not service to one’s wallet,” said A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “This plea is the result of the efforts of the FBI and our law enforcement partners to investigate and bring to justice any who would commit blatant and outrageous fraud against the United States.”
According to evidence presented at the plea hearing, between December 2006 and July 2009, Andolsek conspired with Aaron L. Osborne, a full-time Air National Guard recruiter, to make materially false statements or representations to the Department of Defense in order to embezzle money from the Air National Guard Recruiting Assistance Program (“G-RAP”).
Andolsek admitted to the Court that he had contracted with Document and Packaging Brokers, Inc. (“Docupak”), a U.S. Department of Defense contractor, to administer the G-RAP Program, which was designed to allow airmen, officers, and retirees of the Air National Guard to voluntarily serve as recruiting assistants. To participate in the G-RAP Program these individuals were required to complete an online application. Recruiting assistants were selected by Docupak from the pool of applicants and then received online training, including instruction as to eligibility to serve, financial issues, Air Force core values, and ethics.The G-RAP Program was also designed to encourage recruiting assistants to reach out in their communities to find qualified individuals, who were not already working with a full time recruiter, to become Air National Guard Airmen. Once a recruiting assistant identified a qualified potential airman, they would enter the information into the G-RAP website. If the person actually enlisted in the Air National Guard, a $1,000 pre-loaded VISA card would be mailed to the recruiting assistant.
Under the program regulations, full time and temporary Air National Guard recruiters were not eligible to participate in the G-RAP initiative and to be eligible to receive payment, recruiting assistants had to be the first contact with a potential airman.
G-RAP program regulations also prohibited payments being split with a full time or temporary recruiter.At his plea hearing, Andolsek admitted that Osborne, a full-time recruiter, was the first to receive the contact information of various potential airmen and then supplied that information to Andolsek. Andolsek would then enter the information on the Docupak website and receive a $1,000 payment loaded onto a VISA card each time. Whenever Andolsek made a subsequent entry that one of the potential airmen had started boot camp, he received an additional $1,000 payment loaded to the VISA card. Most of the times that Andolsek received a $1,000 payment, he paid $300 of the proceeds to Osborne.
Andolsek will be sentenced on October 10, 2014. Provisions outlined in the plea agreement require that Andolsek make restitution in the amount of at least $14,000.
Aaron Osborne and co-defendant Arvalon Michelle Harleston, both from Clarksville, Tenn. are scheduled for trial on September 23, 2014, before United States District Court Judge Kevin H. Sharp.
An indictment is merely an accusation and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Federal Bureau of Investigation and the Tennessee Bureau of Investigation. Assistant United States Attorney Kathryn Ward Booth represents the government.
Federal, State, and Local Effort Yields 41 Indictments for Drugs, Firearms, and Counterfeiting in Obion and Weakley CountiesRead the Press Release
Jackson, TN – At least 36 individuals were arrested today in Obion and Weakley Counties as part of a combined federal, state, and local investigation of criminal activity in the area, announced U.S. Attorney Edward L. Stanton III; ATF Special Agent in Charge Jeff Fulton; and 27th District Attorney General Thomas A. Thomas.
Twelve federal indictments were unsealed today accusing 18 individuals of a variety of charges, including illegal firearm possession, illegal drug trafficking, and counterfeiting. In addition to those charged federally, General Thomas’s office announced 22 indictments were returned naming 23 individuals on state charges.
The following individuals were charged by a federal grand jury. The potential penalties each one is facing can be found on the chart attached to this release.
John Barnett III, 27, of Martin, TN, is charged with three counts of distribution of cocaine base (crack cocaine), one count of distribution of less than 50 kilograms of marijuana, and one count of being a felon in possession of a firearm.
Edwynn Taylor, 28, of Martin, TN, is charged with two counts of distribution of cocaine and one count of possession with intent to distribute cocaine base (crack cocaine).
Charles Macklin, 41, of Martin, TN, is charged with one count of distribution of cocaine base (crack cocaine), one count of possession with intent to distribute cocaine base (crack cocaine), and one count of distribution of cocaine.
Peter Graves, 36, of Martin, TN, is charged with one count of distribution of cocaine and one count of distribution of cocaine base (crack cocaine).
Eric West, 24, of Martin, TN, is charged with two counts of distribution of cocaine and two counts of distribution of less than 50 kilograms of marijuana.
Terrence Carter, 24, of Martin, TN is charged with one count of distribution of less than 50 kilograms of marijuana.
Johnson Davis, 30, of Martin, TN, is charged with one count of distribution of cocaine.
Tony Darnell Edwards, a/k/a Tony Darnell Scott, 41, of Martin, TN, is charged with one count of distribution of cocaine base (crack cocaine) and one count of distribution of cocaine.
Emanuel Ray Harris, 36, of Martin, TN, is charged with two counts of distribution of cocaine base (crack cocaine).
James Courtney Shane, 31, of Martin, TN, is charged with one count of distribution of cocaine base (crack cocaine).
Dante Brock, 33, of Martin, TN, is charged with one count of distribution of cocaine base (crack cocaine).
Laquinte Ingram, 36, of Union City, TN, is charged with two counts of distribution of cocaine base (crack cocaine).
Cedric Jones, 34, of Bradford, TN is charged with two counts of distribution of cocaine and one count of distribution of cocaine base (crack cocaine).
Cory Gentry, 40, of Union City, TN, is charged with one count of distribution of cocaine base (crack cocaine) and one count of distribution of cocaine.
Robbin Jones, 34, of Martin, TN, is charged with one count of distribution of cocaine base (crack cocaine) and one count of distribution of cocaine.
Ricky Booker, 24, of Martin, TN, is charged with one count of distribution of cocaine.
Anthony Brown, 29, of Martin, TN, is charged with two counts of distribution of cocaine base (crack cocaine).
Christopher Mitchell, 24, and Laura Petty 27, of Union City, TN, are each charged with one count of counterfeiting Federal Reserve Notes.
More than 100 individuals from law enforcement agencies across West Tennessee assisted in the early morning takedown, including FBI, DEA, ATF, U.S. Marshal’s Service, U.S. Secret Service, Tennessee Bureau of Investigation (TBI), Tennessee Highway Patrol, 27th Judicial Drug Task Force, Martin Police Department, Weakley County Sheriff’s Department, Union City Police Department, Obion County Sheriff’s Department, Milan Police Department, Dyersburg Police Department, Jackson Police Department Special Weapons and Tactics (SWAT), and Shelby County Sheriff’s Office SWAT.
This case is being investigated by the ATF, the FBI, the TBI, the Martin Police Department, the Weakley County Sheriff’s Department, the Union City Police Department, and the Obion County Sheriff’s Department. Assistant United States Attorneys Vic Ivy, James Powell, and Matt Wilson are representing the government.# # # #
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Fairfield Woman Sentenced to 14 Months on Immigration, Money Laundering and Tax ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Mei
Juan Zhang, 31, of Fairfield, Maine, was sentenced today in U.S. District Court by Chief Judge
John A. Woodcock, Jr. to 14 months of imprisonment to be followed by 3 years of supervised release for
harboring undocumented aliens for commercial advantage and private financial gain, money
laundering conspiracy, and conspiracy to file false employer's quarterly federal tax returns. She
was also ordered to pay restitution of $54,288 to the Internal Revenue Service. Zhang pled
guilty to the charges on April 18, 2013.According to court records, between 2009 and 2011, the defendant was the manager of
the Grand Asian Buffet and the Super China Buffet, located on Kennedy Memorial Drive in
Waterville. In that capacity, she managed a Chinese buffet restaurant that brought
undocumented aliens into Maine to work, had them work six to seven days per week, twelve
hours per day, housed them in a cramped residence on Oak Street in Waterville, transported them
back and forth each day to work, paid them under the table with cash generated illegally by the
employment of undocumented aliens, and filed numerous false quarterly employment tax returns
in which the undocumented aliens were not disclosed and employment taxes were not properly
withheld or paid. The investigation revealed that about half of the employees at the buffet over
that period were undocumented, and that the defendant’s activities concealed about $250,000 in
wages and thwarted the collection of about $55,000 in employment taxes.
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations, the Internal Revenue Service, Criminal Investigation, the U.S.
Department of Labor, Office of Inspector General, Office of Labor Racketeering & Fraud
Investigations, with assistance from the Waterville Police Department.Eagle Butte Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Kendahl Clown, age 20, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 19, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, at least 5 years up to life of supervised release, with a violation of a condition of release possibly resulting in 5 years of additional incarceration on any such revocation, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 1, 2013, and June 30, 2013, Clown engaged in and attempted to engage in a sexual act with a minor.
The charge is merely an accusation and Clown is presumed innocent until and unless proven guilty.The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Clown was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Copley Man Pleads Guilty to Defrauding Investors Out of $1.8 MillionRead the Press Release
A Copley man pleaded guilty to a 14-count criminal information for operating a fraudulent investment scheme which caused investors to lose approximately $1.8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Davian, 34, pleaded guilty to one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering. He is scheduled to be sentenced July 2.
“This defendant deceived clients to line his own pockets,” Dettelbach said. “We will continue to aggressively pursue cases in which investors are cheated out of their savings.”
The information charges that between July 2008 and July 2013, Davian used his hedge fund, Davian Capital Advisers, LLC, to promote and sell securities to at least 20 investors across several states, resulting in $1.8 million in overall investor loss.
Davian purported to sell securities in the form of shares in the various funds he created and controlled, including Davian Capital, Rubber City Gravity, Rubber City Pure Alpha, Cleveland Precious Metals Fund, and others. Instead, he used the investors’ monies to redeem earlier investors, enrich himself and pay off personal expenses, such as the purchase of an Audi Q7 Prestige, according to the information.
The investigation revealed that Davian cajoled investors’ into giving him hundreds of thousands of dollars by claiming to manage hundreds of millions of dollars to make himself appear more sophisticated than he really was and by falsifying client account statements, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Matthew Cronin and James Morford following an investigation by agents of the United States Secret Service, the Internal Revenue Service and the United States Postal Service.
Clermont Woman Indicted for Tax Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal grand jury has returned an indictment charging Tanya Fox (38, Clermont) with 1 count of conspiracy to defraud the government, 5 counts of wire fraud, 10 counts of theft of government property, and 10 counts of aggravated identity theft. If convicted, she faces a maximum penalty of 10 years’ imprisonment on the conspiracy count, 20 years in prison on the wire fraud counts, 10 years in prison for the theft of government property counts, and an additional 2 years’ imprisonment for the aggravated identity theft charges, to be served consecutively to any sentence imposed on the previous charges. The indictment also notifies the defendant that the United States is seeking a money judgment of $4,055,735 for the wire fraud and theft of government property charges.
Fox was arrested and made her initial appearance on March 25, 2014, before U.S. Magistrate Judge Philip R. Lammens. She was detained pending further proceedings.
According to the indictment, Fox orchestrated a scheme to file fraudulent tax returns using identities that were stolen from a variety of sources. She would direct other individuals to open business bank accounts in the name of a fraudulent tax preparation business and have the tax refunds deposited into those accounts. Fox would then work with those individuals to withdraw the funds.
Previously, Shanterica Smith, Gerald Williams, and Delray Duncan were convicted and sentenced for providing over 2,200 names from the Orange County Health Department to Fox so that she, or a co-conspirator, could file over $3.9 million in fraudulent tax returns. Further, as part of this scheme, Fox purchased a number of automobiles, furniture, and other lifestyle items. In total, the United States alleges that Fox filed attempted to file fraudulent tax returns totaling over $5.8 million.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Chapmanville Man Pleads Guilty to Selling Prescription PainkillersRead the Press Release
CHARLESTON, W.Va. – A Chapmanville, W.Va. man who sold the powerful prescription painkiller oxymorphone, commonly sold under the brand name Opana, pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Carl Tomblin, 50, pleaded guilty to distribution of oxymorphone before United States District Judge John T. Copenhaver, Jr. in Charleston.
On five separate occasions in December of 2013, Tomblin sold oxymorphone to a confidential informant in exchange for cash. Tomblin admitted to law enforcement that he had been purchasing and distributing oxymorphone from approximately May of 2013 through January of 2014.
Tomblin tested positive for the drug Benzodiazepine, commonly known as Valium or Xanax. As a result, the court ordered Tomblin released on home confinement with electronic monitoring. Tomblin faces up to 20 years in federal prison when he is sentenced on June 25, 2014.
The investigation was conducted by the U.S. 119 Task Force and the West Virginia State Police. Assistant United States Attorney Haley Bunn is handling the prosecution.
The prosecution is part of an ongoing effort 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.
Carbondale Man Sentenced in Madison County Tax Sale SchemeRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Barrett R. Rochman, 71 of Makonda, Ill., was sentenced in United States District Court in East St. Louis, Ill., for violating the Sherman Antitrust Act.
Evidence argued at the sentencing hearing established that Rochman participated in a price fixing scheme orchestrated by former Madison County Treasurer Fred Bathon. Bathon structured the Madison County tax sale to permit the tax buyers to charge distressed homeowners inflated interest rates from 2005-2008 in exchange for campaign contributions.
Rochman was sentenced to 16 months in prison, to serve three (3) years supervised release, to pay a $30,000 fine and a special assessment of $100. The sentence was the maximum sentence recommended by the United States Sentencing Guidelines. Former Treasurer Fred Bathon, along with tax buyers Scott McLean and John Vassen have all been previously sentenced to federal prison for their roles in this scheme.
Arguments made in court revealed that Rochman’s lawyer had reached out to prosecutors before he was charged and offered to pay a large settlement in lieu of prosecution or in exchange for a misdemeanor plea. Prosecutors said that Rochman’s conduct was too serious to be resolved solely by way of a settlement or a reduced plea and that they would not create the perception, or the reality, that one defendant would be able to buy his way out of trouble. US Attorney Wigginton noted, “Whether the case involves an elected official, a local attorney, or a wealthy businessman, my office will ensure accountability. No amount of money offered will interfere with the administration of justice.”
The charges allege that at Illinois tax lien auctions, investors bid to purchase tax lien certificates issued against delinquent tax payers. Investors are supposed to compete to purchase these tax liens by bidding on the interest rate the property owner will be required to pay prior to redeeming the tax lien attached to the owner's property. The bid opens at no more than the statutory maximum of 18% and through a competitive bidding process can be driven as low as 0 percent. The bidder offering the least penalty percentage rate, i.e., the bidder who is willing to allow the owner to redeem his property for the smallest penalty, is allowed to purchase the tax lien. As such, competitive bidding benefits financially distressed homeowners by reducing the amount of money that they have to pay to save their home from foreclosure; however, that same system reduces the profit made by tax buyers. Tax buyers prefer to receive high interest rates, which corresponds to higher profits.
For the tax sales conducted in 2005-2008, Fred Bathon structured the tax sales in a way that eliminated competitive bidding and allowed the tax buyers to engage in price fixing by only bidding the statutory maximum interest rate of 18%. The tax buyers who pled guilty today were charged with making campaign donations to Bathon in exchange for receiving property tax liens at non-competitive interest rates.
By 2007 and 2008, the bid rigging and price fixing was so pervasive that distressed homeowners were charged the statutory maximum interest rate on nearly every property tax lien sold. During the tax auction occurring November 14-15, 2007, 2,549 out of 2,574 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 99.03% of the property tax liens auctioned. During the tax auction occurring November 13-14, 2008, 2,290 out of 2,364 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 96.86% of the property tax liens auctioned.
United States Attorney Wigginton observed that if Rochman were sincere in his desire to pay back those affected, that he could agree to do so by putting the money in some sort of escrow account. “Rochman is encouraged to make victims whole by helping repay their losses. What he is not free to do is to use his fortune to evade criminal responsibility.”
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service, and the Federal Bureau of Investigation. The case is being prosecuted by US Attorney Stephen R. Wigginton and Assistant United States Attorney Steven D. Weinhoeft.
Canadian Man Sentenced for Defrauding Elderly VictimsRead the Press Release
Received Thirty Months in Prison for Stealing from Vulnerable Seniors
ALBANY, NEW YORK – JASON S. KATZ, age 47, of Quebec, Canada, was sentenced today to thirty months in prison by United States District Court Judge Mae A. D’Agostino, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Assistant Special Agent-in-Charge Nicholas J. DiNicola. The defendant was also fined $10,000 and required to pay restitution of $8,000 to two victims. The sentence follows KATZ’s September 27, 2013 guilty plea to two counts of wire fraud. Judge D’Agostino ordered that KATZ begin serving his sentence immediately.
According to the plea agreement, between May and August 2012, KATZ was involved in an international telemarketing scheme targeting elderly victims. The victims, ages 95 and 86 at the time, were repeatedly solicited over the telephone and instructed to wire tens of thousands of dollars to KATZ’s bank account in Plattsburgh, NY. The victims were told the money would be used to help arrange for the release of the victim’s child or grandchild from a Mexican jail and to pay fines associated with traffic accidents. At times, the caller impersonated the victim’s child or grandchild. KATZ was in Europe on a cruise in July 2012 when one of the victims wired him $42,000 under the belief that the funds would be used to help procure the release of her grandson from a Mexican jail. Judge D’Agostino described the fraud as “despicable.”
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations, the Columbia Township Police Department in Brooklyn, Michigan, and the Waterloo, New York Police Department. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
California Man Sentenced to Federal Prison for Racially Motivated Assault on White Man and African-American WomanRead the Press Release
Billy James Hammett, 30, of Marysville, Calif., was sentenced today by U.S. District Judge John A. Mendez to serve 87 months in prison for violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act in a 2011 racially motivated attack against a white man and an African-American woman in Marysville. The court also ordered Hammett to pay restitution in the amount of $175 and to serve three years of supervised release following his prison sentence. Hammett pleaded guilty on Dec. 17, 2013, and his co-defendants, Perry Sylvester Jackson, 28, and Anthony Merrell Tyler, 33, have also pleaded guilty and are awaiting sentencing.
According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants, each of whom has white supremacist tattoos, attacked the man and woman based on race. After calling the male victim a “[racial slur]-lover,” Jackson punched him twice in the head through the open passenger window. At the same time, Hammett kicked the woman in the chest. A few seconds later, Tyler smashed the car’s windshield with a crowbar. As the attack continued, the woman managed to take refuge inside the convenience store. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. At the end of the incident, Tyler used a racial slur to refer to an African-American witness.
In sentencing the defendant, Judge Mendez said he found surveillance video footage of the assault “disturbing.” He noted that Hammett’s attack on the victims was “unprovoked and unwarranted,” and that the victims continue to suffer.
During the sentencing hearing, Judge Mendez also specifically considered Hammett’s background and criminal history, which includes a conviction in 2006 for assaulting a 72-year-old black man, also in Marysville. According to court records, Hammett made racial comments immediately before the unprovoked attack. In addition, Hammett has been affiliated with a number of white supremacist gangs, including Supreme White Power. He has tattoos of the words “white power” across his abdomen, a large swastika on the right side of his torso and the word “skinhead” written across the top of his back. Judge Mendez stated during the sentencing hearing that Hammett poses “a serious threat to the public.”
“The defendant and his associates accosted the victims in public and assaulted them because of their race,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department is committed to stamping out racial violence and will continue to prosecute hate crimes vigorously.”
“Racially-motivated violence has no place in civilized society,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “This office has a history of prosecuting those who perpetrate crimes of hate, and as long as these crimes continue, we will be there to enforce the law and uphold this nation’s constitutional values.”
Jackson is scheduled to be sentenced on April 22, 2014, and Tyler is scheduled to be sentenced on July 8, 2014. Each defendant faces a statutory maximum sentence of 10 years in prison and a fine of $250,000.
This case was investigated by the FBI with the assistance of the Yuba County Sheriff's Office and the Yuba County District Attorney's Office. The case is being prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Justice Department's Civil Rights Division.
California Man Indicted on Charges of Domestic Violence Resulting in Death of A SpouseRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Dellando Recardo Campbell, age 31, of Lemoore, California, on charges of interstate domestic violence resulting in the death of a spouse, in connection of the death of Serika Dunkley Holness. The indictment was returned on February 5, 2014. Campbell, who was arrested in California on February 7, 2014, was transported to Maryland. Campbell had an initial appearance today in U.S. District Court in Baltimore and was detained, pending a detention hearing scheduled for Friday, March 25, 2014.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
The indictment alleges that Campbell conspired with Ryan Dave Holness to murder Ryan Holness’ wife, Serika Dunkley Holness. DNA evidence found in Holness’ car, which was recovered in Washington, D.C. the day after the murder, link Campbell to the crime.According to DNA and other evidence presented at Ryan Holness’ two week trial, Ryan Holness devised a scheme to bring his wife from New York to Maryland for the murder. On June 4, 2009, Holness and his wife traveled from New York to Maryland. Serika Holness was found murdered, stabbed multiple times in Kent County, Maryland, on June 5, 2009. Ryan Holness was convicted of domestic violence resulting in the death of a spouse and sentenced to life in prison.
If convicted, Campbell faces a maximum sentence of life in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Maryland State Police and FBI for their work in the investigation and thanked the Kings County, California, District Attorney’s Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, who is prosecuting the case.
CEO of Bankrupt Sentinel Management Group Convicted in $500 Million Fraud Scheme Before Firm’s 2007 CollapseRead the Press Release
CHICAGO ― The chief executive officer of the bankrupt Sentinel Management Group, Inc., was convicted today of defrauding more than 70 customers of over $500 million before the firm collapsed in August 2007. The defendant, ERIC A. BLOOM, misappropriated securities belonging to customers by using them as collateral for a loan that Sentinel obtained from Bank of New York Mellon Corp., which was used, in part, to purchase millions of dollars’ worth of highrisk, illiquid securities not for customers, but for a trading portfolio maintained for the benefit of Sentinel=s officers, including Bloom, members of his family, and corporations controlled by the Bloom family.
A federal jury deliberated less than two hours after a four-week trial in U.S. District Court before returning guilty verdicts on 18 counts of wire fraud and one count of investment adviser fraud. The case is one of the largest financial fraud cases ever prosecuted in Federal Court in Chicago.
Bloom, 49, of Northbrook, remains free on bond while awaiting sentencing, which was not scheduled pending post-trial motions. Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or, alternatively, a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater, and restitution is mandatory. The investment adviser fraud count carries a maximum penalty of five years in prison and a $250,000 fine. The government is also seeking a forfeiture judgment of more than $500 million. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Sentinel was located in suburban Northbrook and managed short-term cash investments of futures commission merchants, commodity pools, hedge funds, and other customers. Sentinel’s head trader, Charles K. Mosley, 50, of Vernon Hills, pleaded guilty last October to two counts of investment adviser fraud and is awaiting sentencing.
“Sentinel was sinking like the Titanic,” Assistant U.S. Attorney Clifford Histed told the jury in closing arguments. “Sentinel was not a victim of the credit crisis,” he said, adding that the “financial crisis merely exposed the fraud” that had been going on for years.
According to the evidence at trial, Bloom, the president and CEO of Sentinel who was responsible for its day-to-day operations, misled customers four days before Sentinel declared bankruptcy by blaming Sentinel=s financial problems on the “liquidity crisis” and “investor fear and panic” when he knew that the actual reasons for Sentinel=s financial problems were its purchase of high-risk, illiquid securities, excessive use of leverage, and the resulting indebtedness on the Bank of New York loan, which had a balance exceeding $415 million on Aug. 13, 2007. Sentinel declared bankruptcy on Aug. 17, 2007.
Between January 2003 and August 2007, Bloom fraudulently obtained and retained under management more than $1 billion of customers’ funds by falsely representing the risks associated with investing with Sentinel, the use of customers’ funds and securities, the value of customers’ investments, and the profitability of investing with Sentinel. Bloom used customers’ securities invested in Sentinel=s “125 Portfolio” and its “Prime Portfolio” as collateral for its loan with Bank of New York to purchase millions of dollars’ worth of high-risk, illiquid collateralized debt obligations (CDOs).
Bloom lied about customers’ investments and engaged in an undisclosed trading strategy with Sentinel’s own “House Portfolio,” which they traded for the benefit of themselves and Bloom family members. The undisclosed trading strategy included extensive borrowing and a high concentration of CDOs that were inconsistent with the representations Bloom made to customers regarding separate investment portfolios. The undisclosed strategy affected all customers, regardless of the trading portfolio in which they were invested, because Bloom directed employees to use customers’ securities as collateral when Sentinel borrowed money from the Bank of New York and so-called “repo” lenders, and then used the borrowed money to carry out the undisclosed trading strategy. (Under a repurchase agreement, known as a “repo,” a party such as Sentinel, effectively a borrower, sold securities to a counterparty, effectively a lender, with an agreement to repurchase the securities at a later date.)
As part of the fraud scheme, Bloom falsely represented the returns generated by the securities in each Sentinel portfolio to customers. Rather than giving customers the actual returns generated by a particular portfolio, Bloom directed employees on a daily basis to pool the trading results for all of Sentinel’s portfolios and then allocated the returns to the various portfolios as they saw fit. To conceal the scheme, to encourage customers to invest additional funds, and to otherwise lull customers, Bloom on a daily basis caused false and misleading account statements to be created and distributed to customers, including via email. These account statements reported returns earned by customers without disclosing that the returns actually were allocated by Bloom and his employees and were not the result of the market performance of the customers’ particular portfolios. The account statements also listed the purported value of securities being held by each portfolio without disclosing that the securities were being used as collateral for Sentinel’s loan from Bank of New York.
In July and August 2007, Bloom knew that Sentinel was approaching insolvency and that defaulting on the Bank of New York loan was a real possibility, yet he caused Sentinel to take in more than $100 million in customers’ money and continued to conceal Sentinel’s true financial condition from customers.
The verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago. Also assisting in the investigation were the Labor Department=s Employee Benefits Security Administration, the Commodity Futures Trading Commission, and the Securities and Exchange Commission. The CFTC and the SEC filed separate civil enforcement lawsuits following the collapse of Sentinel, which remains in bankruptcy proceedings.
The government is being represented by Assistant U.S. Attorneys Clifford C. Histed and Patrick M. Otlewski.
Brooklyn, N.Y., Man Admits Traveling to New Jersey to Violently Extort Divorce Consent from Reluctant HusbandRead the Press Release
TRENTON, N.J. - A Brooklyn, N.Y., man admitted today in Trenton federal court to traveling to New Jersey in order to coerce a Jewish man to give his wife a religious divorce – referred to as a “get” – through threats of violence, U.S. Attorney Paul J. Fishman announced.
Simcha Bulmash, 30, pleaded guilty today before U.S. District Judge Freda L. Wolfson to an information charging him with traveling in interstate commerce to commit extortion. His bail conditions include a $500,000 bond and GPS monitoring.
According to documents filed in this case and statements made in court:
On Oct. 9, 2013, Bulmash and a group of conspirators – including Jay Goldstein, 59, Moshe Goldstein, 31, Avrohom Goldstein, 34, David Hellman, 31, Ariel Potash, 40, Binyamin Stimler, 38, and Sholom Shuchat, 29 – traveled from New York to a warehouse in Edison, N.J., with the intent of forcing a Jewish man to give his wife a “get,” a divorce document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
Bulmash admitted that when he arrived at the warehouse, the group met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the husband’s brother in law. Bulmash admitted that they discussed a plan and prepared to confine, restrain and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint – along with rabbis Mendel Epstein, 68, and Martin Wolmark, 55 – in connection with the scheme. Hellman pleaded guilty to an information charging him with traveling in interstate commerce to commit extortion on March 6, 2014. Moshe and Avrohom Goldstein pleaded guilty to the same charge on March 11, 2014. The charges against the remaining alleged conspirators remain pending. All of the defendants reside in Brooklyn, except Potash and Wolmark, who live in Monsey, N.Y.
During his guilty plea proceeding, Bulmash also admitted that on Aug. 22, 2011, he and others went to a residence in Brooklyn where they restrained, assaulted and injured a man in an attempt to extort a divorce from him. That conduct will be considered by the court during sentencing, currently scheduled for July 10, 2014.
Bulmash faces a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked the Lakewood, N.J., Police Department for their role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.
14-104
Defense counsel: Robert C. Gottlieb Esq., New York
Bulmash, Simcha Information
Brighton Man Sentenced for Defrauding InvestorsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that John Zdanecis, 79, of Brighton, N.Y., who was convicted of mail fraud, was sentenced to five years probation by U.S. District Judge Charles G. Siragusa. The defendant was also ordered to pay $82,500 in restitution to victims.
Assistant U.S. Attorney John J. Field, who handled the case, stated that the defendant solicited investors to participate in a commodities trading pool, Comtra Limited, that he controlled. Zdanecis then used most of the money for personal and business expenses, and did not invest it in commodities as promised. To conceal his scheme, the defendant sent his investors periodic account statements that were false and misrepresented the true condition of the investments. As a result of the fraud, investors lost more than $160,000.
At sentencing, the defendant was subject to a recommended sentencing guideline range of 33 to 41 months in prison.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.Brazilian Removed Three Times from US Charged with Illegal Re-entry After DeportationRead the Press Release
PITTSBURGH - An alien found in Pittsburgh has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Valber Silva-Brito, 26, of Brazil, as the sole defendant.
According to the indictment presented to the court, Valber Silva-Brito, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Oct. 16, 2007, Jan. 10, 2008 and Sept. 16, 2010. Valber Silva-Brito was found to be illegally present in Pittsburgh on June 9, 2013.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.