Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 18 March 2014
Group Indicted for Possession of Prescription and Illegal DrugsRead the Press Release
Memphis, TN – Eighteen individuals were named today in an indictment on a variety of charges involving illegal possession of prescription drugs and possession of illegal drugs, announced U.S. Attorney Edward L. Stanton.
Members of law enforcement from the ATF and the Multi-Agency Gang Unit executed a series of take-downs across Shelby County to apprehend the suspects.The following individuals are alleged to have conspired to distribute prescription drugs:
Marlon Deshone Quarles, a/k/a “Marlon Patterson,” 41, address unknown;
Saul Williams, a/k/a “Jabo,” 37, address unknown;
Victor Quarles, a/k/a “Vic,” 29, Cordova, TN;
Brandon Powell, 26, address unknown;
Zack Patterson, 63, Memphis, TN;
Walter Echols, 31, address unknown;
Maurice Woodard, 26, Memphis, TN;
Christopher Munn, 28, address unknown;
Troy Stephenson, 29, Bartlett, TN;
Antonio Humphries, 32, address unknown;
Bobby Griffin, a/k/a/ “Unc,” 45, address unknown;
Michelle Carlson, 31, Horn Lake, MS;
Jasmine King, 21, address unknown;
Kiara Wright, 22, Memphis, TN;
Latisha Bobo, 26, address unknown; and
Manika Shelby, 22, address unknown.The group is specifically charged with conspiring to do the following:
The following individuals are alleged to have conspired to distribute illegal drugs:
• Possession with intent to distribute oxycodone (Oxycontin), which carries a penalty of up to 20 years in prison and a fine of up to $1,000,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 30 years and a fine of up to $2,000,000;
• Possession with intent to distribute morphine, which carries a penalty of up to 20 years in prison and a fine of up to $1,000,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 30 years and a fine of up to $2,000,000;
• Possession with intent to distribute Meperidine which carries a penalty of up to 20 years in prison and a fine of up to $1,000,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 30 years and a fine of up to $2,000,000;
• Possession with intent to distribute hydrocodone (a/k/a “Lortab”, “Lorcet,” “Tussionex.” “Hydromet,” and “Vicodin”), which carries a penalty of up to 10 years in prison and a fine of up to $500,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 20 years and a fine of up to $1,000,000;
• Possession with intent to distribute alprazolam (a/k/a “Xanax,” “Xanax bars,” and “bars”), which carries a penalty of up to 5 years in prison and a fine of up to $250,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 10 years and a fine of up to $500,000;
• Possession with intent to distribute lorazepam (a/k/a “Ativan”), which carries a penalty of up to 5 years in prison and a fine of up to $250,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 10 years and a fine of up to $500,000; and
• Possession with the intent to distribute Carisoprodol (a/k/a Soma), which carries a penalty of up to 5 years in prison and a fine of up to $250,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 10 years and a fine of up to $500,0000.
Marlon Deshone Quarles, a/k/a “Marlon Patterson,” 41, address unknown;
Saul Williams, a/k/a “Jabo,” 37, address unknown;
Victor Quarles, a/k/a “Vic,” 29, Cordova, TN;
Tyrone Williams, a/k/a “Ty,” age unknown, address unknown;
Brandon Powell, 26, address unknown;
Maurice Woodard, 26, Memphis, TN;
Christopher Munn, 28, address unknown; and
Jacqueline Chambers, a/k/a “Jackie,” age unknown, address unknown.The group is specifically charged with conspiring to do the following:
• Possession with intent to distribute up to 500 grams of cocaine, which carries a penalty of at least 5 years in prison up to a maximum of 40 years in prison and a fine of up to $5,000,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be at least 10 years in prison up to life and a fine of up to $8,000,000 and;
• Possession with intent to distribute up to 100 kilograms of marijuana, which carries a penalty of at least 5 years in prison up to a maximum of 40 years in prison and a fine of
up to $5,000,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be at least 10 years in prison up to life and a fine of up to $8,000,000.
Victor Quarles is also charged with three counts of possession of marijuana with intent to sell, and Christopher Munn is also charged with two counts of possession of marijuana with intent to sell. Each charge carries a penalty of up to 5 years in prison and a fine of up to $250,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 10 years and a fine of up to $500,000.
This case was investigated by the Multi-Agency Gang Unit, which is comprised of members of federal, state, and local law enforcement including the United States Attorney’s Office; the Shelby County District Attorney’s Office; the Shelby County Sheriff’s Office; the Memphis Police Department; the Federal Bureau of Investigation; and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kevin Whitmore is 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.Grants Man Sentenced to Eighty-Four Months in Federal Prison for Unlawful Possession of FirearmsRead the Press Release
ALBUQUERQUE – Aaron Jimenez, 31, of Grants, N.M., was sentenced this morning to 84 months in federal prison followed by three years of supervised release for violating the federal firearms laws. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Chief Steve Sena of the Grants Police Department.
Jimenez was charged in March 2013 in a two-count indictment with unlawful possession of an unregistered sawed-off shotgun and being a felon unlawfully in possession of a firearm and ammunition. According to the indictment, Jimenez committed these offenses on Oct. 10, 2012, in Cibola County, N.M. At the time, Jimenez was prohibited from possessing firearms or ammunition because he previously had been convicted of burglary, aggravated battery and criminal damage to property.
In April 2013, Jimenez was transferred to federal custody from state custody, where he was being held on related state charges. The state charges subsequently were dismissed in lieu of federal prosecution. In Sept. 2013, Jimenez pled guilty to both counts of the indictment.
Jimenez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Grants Police Department with assistance from the 13th Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.Georgia Woman Charged in Nigerian "Mystery Shopper" ScamRead the Press Release
PITTSBURGH - A resident of Georgia has been indicted by a federal grand jury in Pittsburgh on charges of fraud conspiracy and wire fraud, United States Attorney David J. Hickton announced today.
The two-count indictment named Monica Mason, 48, as a defendant.
According to the indictment, Mason was involved in a Nigerian “Mystery Shopper” scam whereby her coconspirator Shawn Foote knowingly prepared and addressed fraudulent mail containing counterfeit instruments to victims, who believed they were acting as mystery shoppers. The victims unwittingly received the counterfeit commercial and Postal money orders and checks and cashed them to make small purchases for purposes of evaluating the commercial services provided. They then wire transferred excess funds back to Mason, Foote, and others. After these transactions, the money orders and checks were returned as counterfeit by the victims’ banks and they were left to repay the bank from their own funds.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the U.S. Customs and Immigration 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.
Gallup Man Pleads Guilty to Federal Child Sex Abuse ChargeRead the Press Release
ALBUQUERQUE – Darryle R. Dennison, 25, an enrolled member of the Navajo Nation who resides in Gallup, N.M., pleaded guilty this morning to an aggravated sexual abuse charge. Under the terms of his plea agreement, Dennison will be sentenced to a prison term of 12 to 14 years followed by a term of supervised release to be determined by the court. Dennison will be required to register as a sex offender after he completes his prison sentenced.
Dennison’s guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
Dennison was arrested on June 7, 2013, on a criminal complaint alleging that he sexually abused a child less than 12 years old on June 4, 2013, in a location within the Navajo Indian Reservation. During today’s hearing, Dennison pled guilty to a felony information charging him with aggravated sexual abuse and Dennison admitted engaging in a sexual act with a child under the age of 12 years.
Dennison has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI with assistance from the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Presiliano A. Torrez as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Fresno Police Department Detective and Fresno Marijuana Trafficker Charged in Bribery SchemeRead the Press Release
FRESNO, Calif. — A complaint has been filed in the Fresno branch of the United States District Court against Derik Carson Kumagai, 40, a Fresno Police Department detective assigned to the Vice Unit and Saykham Somphoune, 40, of Clovis, charging them with conspiracy, bribery, and extortion, United States Attorney Benjamin B. Wagner announced.
“Prosecuting those who misuse their badge for personal gain is an important mission for the U.S. Department of Justice,” said US Attorney Wagner. “I am grateful for the assistance of Chief Dyer and the leadership of his Department in this investigation.”
According to court documents, detective Kumagai accepted a $20,000 bribe from an individual who was under investigation for marijuana trafficking (identified as Person Y). In return for the bribe payment, Kumagai and co-conspirator Somphoune promised Person Y that he would be signed up as a confidential informant for the Fresno PD. Somphoune is not a law enforcement officer.
In October and November 2013, Kumagai and Somphoune met with Person Y on several occasions and discussed the proposed bribe payment. On November 6, 2013, Person Y paid Kumagai approximately $20,000 cash. A few hours later, Person Y completed documents regarding work as a confidential informant for the Fresno Police Department.
This case is the product of an investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney are prosecuting the case.
If convicted of conspiracy, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of bribery, they face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Complaint
Former San Diego Police Detective Pleads Guilty to Campaign Finance ConspiracyRead the Press Release
San Diego, CA – Former San Diego police detective Ernesto Encinas pled guilty today to charges that he conspired to commit campaign finance crimes in connection with a series of elections at the local and federal level. At the same hearing, Encinas also pled guilty to charges that he made false statements to the Internal Revenue Service when filing tax returns on behalf of his private security business, Coastline Protection and Investigations, Inc.
As part of his plea agreement, Encinas admitted to a range of allegations first brought to light on January 21, 2014, when prosecutors unsealed a complaint against him. Speaking under oath before U.S. Magistrate Judge William V. Gallo, Encinas admitted that he and his coconspirators agreed to make illegal contributions on behalf of Jose Susumo Azano Matsura, a foreign national who was arrested by FBI agents on related campaign finance charges in February. Foreign nationals cannot lawfully contribute to any campaign at the federal, state or local level. Also as part of the plea, Encinas confirmed that he and others, including Azano, Ravneet Singh and Marco Polo Cortes, agreed to make conduit contributions in connection with a federal election, as well as falsify records with the intent to impede a federal investigation—both of which are felonies regardless of whether the source is a citizen or foreign national. (Azano, Singh and Cortes, who were charged earlier this year, have pleaded not guilty to the charges filed against them.)
Encinas’s plea agreement detailed other aspects of the scheme not previously disclosed in public filings. For example, Encinas admitted to FBI agents that Azano induced a series of individuals to donate directly to “Candidate 1,” described as a candidate for the office of mayor of San Diego during the 2012 primary election cycle. Encinas stated that Azano provided cash, which the straw donors each used to make the maximum possible donation to Candidate 1.
In addition, as part of his plea agreement, Encinas admitted that during tax years 2011 and 2012, Azano paid Encinas approximately $10,000 in cash “off the books.” Encinas failed to report approximately $147,300 of such cash payments in tax year 2011, and approximately $74,900 in cash payments in tax year 2012, for a total of approximately $222,200 in unreported cash income. This resulted in a tax loss of $69,394.36 over two years, which Encinas agreed to pay back as restitution.
First Assistant United States Attorney Cindy M. Cipriani said: “To secretly inject foreign money into our elections is an affront to the transparency and integrity of our electoral system. In obtaining this guilty plea, we demonstrate our continuing efforts to investigate and prosecute campaign finance crimes in San Diego and beyond.”
FBI Special Agent in Charge, Daphne Hearn said, “Illegal campaign contributions from foreign sources undermines our electoral process and ultimately our democracy. The FBI is committed to working with our law enforcement partners to identify and root out public corruption wherever it may be happening.”
Special Agent in Charge of Internal Revenue Service Criminal Investigation (IRS CI), Erick Martinez, commented: “Retired San Diego Police Detective Ernesto Encinas intentionally failed to report over $222,000 in cash received by keeping this money ‘off the books.’ Today’s guilty plea should serve as a reminder- all of us have an obligation to file an accurate and truthful tax return. Failure to do so could result in criminal prosecution.”
Encinas’s sentencing hearing has been set for June 9, 2014 at 9 a.m. before United States District Judge Michael M. Anello.
DEFENDANT Case No. 14CR0344-MMAErnesto Encinas
Age: 57
San Diego, CA CHARGESCount 1: Conspiracy to Commit Offenses against the United States – 18 U.S.C. § 371. Maximum penalties: 5 years in prison, 3 years of supervised release, $250,000 fine and a $100 special assessment
Count 2: False Tax Return – 26 U.S.C. § 7206(1): 3 years in prison, 1 year of supervised release, $250,000 fine and a $100 special assessment
INVESTIGATING AGENCYFederal Bureau of Investigation
Internal Revenue Service, Criminal Investigation
San Diego Police Department*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Former President of Guatemala, Alfonso Portillo, Pleads Guilty in Manhattan Federal Court to Laundering Millions of Dollars Through United States BanksRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALFONSO PORTILLO, the former President of Guatemala, pled guilty today in Manhattan federal court to laundering millions of dollars through bank accounts located in the United States. PORTILLO, who served as the President of Guatemala from January 14, 2000 to January 14, 2004, arrived in the Southern District of New York on May 24, 2013 after being extradited to the United States by the Government of Guatemala. Portillo pled guilty to the sole charge in the Indictment before United States District Judge Robert P. Patterson.
Manhattan U.S. Attorney Preet Bharara said: “Former President Alfonso Portillo may have thought his position of power prevented him from having to answer for accepting multi-million dollar bribes to shape his country’s foreign policy, for embezzling money intended to benefit the Guatemalan people, and for using U.S. banks to launder the ill-gotten funds. But he was wrong. With his guilty plea today, Portillo now stands convicted in an American court for his criminal conduct. This Office will aggressively pursue and prosecute individuals, irrespective of their position or title, if they engage in violations of U.S. laws.”
According to the Indictment and PORTILLO’s guilty plea allocution today:
From December 1999 through August 2002, while serving as President of Guatemala, PORTILLO received $2.5 million in bribery payments from the Government of Taiwan. In his plea allocution, PORTILLO stated, “I understood that, in exchange for these payments, I would use my influence to have Guatemala continue to recognize Taiwan diplomatically.” Knowing that the $2.5 million was the proceeds of illegal payments from Taiwan, PORTILLO conspired with others to launder the $2.5 million through bank accounts located in the United States. PORTILLO also stated that he and others had the illegally obtained funds “carried from Guatemala to the United States” and then deposited them into the U.S. accounts.
The $2.5 million in payments consisted of five checks provided by the Government of Taiwan’s Embassy in Guatemala. Three of the checks, totaling $1.5 million, were issued in 2000, and were endorsed personally by PORTILLO. PORTILLO then caused the checks to be deposited in a bank account in Miami, Florida. Two additional checks totaling $1 million were issued in 2002 and were made payable to a company known as Oxxy Financial Corp. (“Oxxy Financial”). These two checks were deposited at the International Bank of Miami, in an account held by Oxxy Financial. According to PORTILLO, these and other transactions were “designed, in part, to conceal and disguise the source and ownership of the money.” More than $1.5 million of the Taiwanese payments received by PORTILLO were ultimately deposited into bank accounts in the name of PORTILLO’s former wife and daughter at Banco Bilbao Vizcaya Argentaria (“BBVA”) in Paris, France. Money transferred into the BBVA accounts was further laundered through financial institutions in Luxembourg and Switzerland, among other places.
PORTILLO, 62, pled guilty to one count of conspiracy to commit money laundering. He faces a maximum term of 20 years in prison and a maximum fine of the greater of $500,000, or twice the value of the monetary instruments or funds involved in the money laundering transactions. PORTILLO will be sentenced by Judge Patterson on June 23, 2014, at 4:00 p.m. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the New York Field Office of the Internal Revenue Service, Criminal Investigation, the Drug Enforcement Administration’s (“DEA”) New York Organized Crime Drug Enforcement Strike Force – which is comprised of agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service and the U.S. Marshals Service – the DEA’s Guatemala Country Office, the Department of State, and the U.S. Department of Justice’s Office of International Affairs for their work in this investigation. Mr. Bharara also recognized and thanked the United Nations Commission Against Impunity in Guatemala (“CICIG”), the Guatemalan Special Prosecutor’s Office for the CICIG, and the Ministerio Público in Guatemala for their assistance in this investigation.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Adam Fee and Shane T. Stansbury are in charge of the prosecution.
U.S. v. Alfonso Portillo Indictment
Former Paintsville Doctor Admits Role in Pill Mill That Illegally Dispensed 25,000 Prescription PillsRead the Press Release
Lexington, KY - A former doctor in Paintsville, KY., has admitted to his role in a conspiracy that was responsible for illegally distributing more than 25,000 prescription pills in Eastern Kentucky.
Om Monday, Rano Bofill, 72, pleaded guilty in federal court in Lexington, before U.S. District Judge Amul Thapar, to conspiracy to unlawfully dispense Oxycodone.
According to court documents, from January 2009 until December 2012, Bofill conspired with Tammy Cantrell and Shelby Lackey, owners of Care More Pain Management, LLC, located in Johnson County, to distribute thousands of Oxycodone pills to patients without a legitimate medical purpose.
Bofill acknowledged that he wrote prescriptions for numerous patients after performing little to no examination and, in some instances, he even signed off on prescriptions without actually ever seeing the patients. Patients who visited the clinic paid $200 for the initial visit and $185 for subsequent visits; all fees were paid in cash. Bofill admitted he saw approximately 25 patients per day and was paid between $5,000 and $6,000 per week
Lackey and Cantrell pled guilty last year to their roles in the conspiracy. At the time of their guilty pleas, Cantrell and Lackey were the first pain clinic owners in the Eastern District of Kentucky to have federal convictions for illegally distributing prescription drugs. Another doctor at the clinic, Richard Albert, pled guilty in July 2012 to a conspiracy charge and was sentenced to 75 months in prison. Albert, Cantrell and Lackey have collectively agreed to forfeit approximately $1.3 million, which represents proceeds from the conspiracy.
The investigation into this case started when detectives with the Kentucky Attorney General’s Office received complaints from local law enforcement that Care More was seeing a remarkably high volume of patients. Court records state that patient lines at Care More stretched into the parking lot.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Robert L. Corso, Special Agent in Charge, DEA, and Jack Conway, Kentucky Attorney General, jointly announced the plea.
The investigation was conducted by the Kentucky Attorney General’s Office, the DEA and the Paintsville Police Department. Assistant U.S. Attorney Roger West prosecuted this case on behalf of the federal government.
Bofill will appear for sentencing on July 14, 2014. . He faces a maximum of 20 years in prison. However, the Court will consider the U.S. Sentencing Guidelines and the federal statues before imposing a sentence.
Former Owner of Pain Clinics in Georgetown and Dry Ridge Sentenced to 20 YearsRead the Press Release
Defendant sentenced to maximum penalty allowed under the statute
LEXINGTON, KY - The former owner of pain clinics in Georgetown, KY., and Dry Ridge, KY., that illegally dispensed prescription drugs to thousands of patients, was sentenced today to 20 years in prison.
U.S. District Judge Karen Caldwell sentenced Ernest William Singleton for drug trafficking, money laundering, opening and maintaining a drug involved premise and conspiracy offenses. Singleton will have to serve at least 85 percent of his prison sentence.
Singleton and his corporations, Double D Holdings, LLC and S and R Medical Enterprises, LLC, which owned Central Kentucky Bariatric and Pain Management, Central Kentucky Family Pharmacy of Georgetown, and the Grant County Wellness Center in Dry Ridge, were convicted by a federal jury in June 2013.
According to evidence presented at trial, from October 2010 until February 2013 and under Singleton’s direction, doctors at the clinics prescribed large quantities of Oxycodone and Diazepam outside the scope of professional practice and without a legitimate medical purpose.
Specifically, the evidence established that Singleton oversaw the daily operations of the clinics, influenced doctors to overprescribe drugs to patients, and pressured them to see as many patients as possible. Witnesses testified that, at Singleton’s direction, one of the doctors saw more than 90 patients in a day and another doctor visited with some patients for as little as three minutes before prescribing medication. Witnesses also testified that when some doctors complained to Singleton about the volume of patients, he instructed them not to reduce their patient load.
Other evidence established that the pain clinics operated on a cash only basis and did not accept insurance. Patients paid approximately $250 on the first visit and $300 on subsequent visits. Investigators estimate that approximately 5,000 patients visited the clinics during the course of the conspiracy.
Some of the doctors who testified at trial confirmed that they could not provide adequate medical care under Singleton’s guidelines. Two of the doctors employed by Singleton, Lea Marlow and Gregory White, pled guilty to criminal charges last year and are currently serving prison terms.
The jury also found that Singleton engaged in money laundering, by using the drug proceeds to purchase real estate, a boat, and farm equipment, among other items. He also used the proceeds to build a home. Singleton has forfeited items numerous that either facilitated the crimes or were purchased with proceeds from his criminal offenses, including bank accounts consisting of more than $427,000, more than 20 firearms, more than 40 pieces of farm equipment, vehicles, and livestock.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; James W. Allen, Acting Special Agent in Charge, Drug Enforcement Administration; Christopher A. Henry, Special Agent in Charge of IRS, Criminal Investigation Division; Jack Conway, Kentucky Attorney General; and Rodney Brewer, Commissioner of Kentucky State Police, jointly made the announcement.
The investigation was conducted by the DEA, IRS Criminal Investigation Division, the Kentucky Attorney General’s Office and Kentucky State Police. Assistant U.S. Attorney Ron Walker, former Assistant U.S. Attorney Patrick H. Molloy, and Special Assistant U.S. Attorney Shawna Kincer, the Executive Director of Special Prosecutions with the Kentucky Attorney General’s Office, prosecuted the case.
Former Employee of Navy Contractor Pleads Guilty in International Navy Bribery ScandalRead the Press Release
Alex Wisidagama, a citizen of Singapore formerly employed by Glenn Defense Marine Asia (GDMA), pleaded guilty today to one count of conspiracy to defraud the United States for his role in a scheme to overbill the U.S. Navy for ship husbanding services. Wisidagama’s plea is the second in an expanding investigation into acts of alleged fraud and bribery committed by GDMA and several United States Navy officers and personnel.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Deputy Inspector General for Investigations James B. Burch of the U.S. Department of Defense Office of the Inspector General made the announcement after the plea was accepted by U.S. Magistrate Judge Jan M. Adler of the Southern District of California. The plea is subject to acceptance by U.S. District Judge Janis Sammartino. Sentencing is set for June 13, 2014, before Judge Sammartino.
Wisidagama, who was arrested in San Diego, Calif., on Sept. 16, 2013, served as the general manager of global government contracts for GDMA, which was owned and operated by his cousin, Leonard Glenn Francis . GDMA was a multi-national corporation with headquarters in Singapore and operating locations in other countries, including Japan, Thailand, Malaysia, Korea, India, Hong Kong, Indonesia, Australia, Philippines, Sri Lanka and the United States. GDMA provided the U.S. Navy with hundreds of millions of dollars in husbanding services, which involve the coordinating, scheduling and procurement of items and services required by ships and submarines when they arrive at port. These services included providing tugboats; paying port authority and customs fees; furnishing security and transportation; supplying provisions, fuel and water; and removing trash and collecting liquid waste.
In his plea agreement, Wisidagama admitted to conspiring to defraud the U.S. Navy in different ways. Wisidagama and other GDMA employees generated bills charging the U.S. Navy for port tariffs that were far greater than the tariffs that GDMA actually paid. In some cases, Wisidagama and others created fictitious port authorities for ports visited by U.S. Navy ships, and in other cases, Wisidagama and GDMA created fake invoices from legitimate port authorities purporting to bill the U.S. Navy at inflated tariff rates. Wisidagama and GDMA also overbilled the U.S. Navy for fuel by creating fraudulent invoices which represented that GDMA acquired fuel at the same cost that it charged the U.S. Navy when in fact GDMA sold the fuel to the U.S. Navy for far more than it actually paid. Wisidagama and GDMA also defrauded the U.S. Navy on the provision of incidental items by creating fake price quotes purportedly from other vendors to make it appear that the other vendors’ offering prices were greater than GDMA’s prices.
Wisidagama is the second defendant to plead guilty as part of this investigation. On Dec. 17, 2013, former NCIS Supervisory Special Agent John Bertrand Beliveau Jr. pleaded guilty to conspiracy to commit bribery after admitting to providing Francis with sensitive law enforcement information in exchange for things of value such as cash, travel accommodations, lavish dinners, and prostitutes. In addition to Beliveau and Wisidagama, Francis and U.S. Navy Commanders Michael Vannak Khem Misiewicz and Jose Luis Sanchez have been charged as part of a bribery and fraud scheme designed to defraud the U.S. Navy. The charges against Misiewicz, Sanchez and Francis are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service and the Defense Contract Audit Agency. Significant assistance was provided by the Criminal Division’s Office of International Affairs, as well as the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Royal Thai Police and the Corrupt Practices Investigation Bureau in Singapore.
The case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California, Director of Procurement Fraud Catherine Votaw and Trial Attorney Brian Young of the Criminal Division’s Fraud Section, and Trial Attorney Wade Weems, on detail to the Fraud Section from the Special Inspector General for Afghan Reconstruction.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline , or call (800) 424-9098.Former Arlington County Employee Convicted of Taking BribesRead the Press Release
ALEXANDRIA, Va. – Francisco Samayoa Hernandez (“Samayoa”), 33, of Silver Spring, Md., pleaded guilty today to receiving bribes in connection with his work as a tax assessor supervisor at the Arlington County, Va., Department of Motor Vehicles Select office.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
Samayoa faces a maximum penalty of ten years in prison when he is sentenced on June 9, 2014.
In a statement of facts filed with his plea agreement, Samayoa admitted to receiving approximately $11,480 in bribes from a vehicle exporter in exchange for providing vehicle titles and falsifying Department of Motor Vehicle paperwork that allowed the exporter to avoid paying state motor vehicle sales and use tax in connection with the registration and titling of various luxury automobiles. In exchange for the bribes, Samayoa enabled the exporter to avoid paying approximately $24,923 due to the Commonwealth of Virginia for the registration and titling of a Lamborghini and multiple Ferraris, Porsches and Mercedes.
Samayoa was an Arlington County employee, and the Arlington County Commissioner of Revenue contracts with the DMV to provide vehicle-related services at its local office.
Samayoa also admitted to serving as a straw buyer for the exporter and purchasing three BMWs in his name. In connection with these transactions, Samayoa falsely certified to a dealership that he was not purchasing the vehicle for export, and the dealership relied on that certification in making the sale.This case was investigated jointly by the FBI’s Washington Field Office and the Virginia DMV Law Enforcement Division Office of Enforcement and Compliance. Assistant U.S. Attorney Paul J. Nathanson is prosecuting the case.
Any person who believes they may have information regarding public corruption in the Northern Virginia area is encouraged to call the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225 or send an email to [email protected].
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Federal Jury Convicts Red Lake Man for Assaulting an InfantRead the Press Release
MINNEAPOLIS—Last week in federal court in Fergus Falls, a jury found a 40-year-old Red Lake man guilty of assaulting an infant while on the Red Lake Indian Reservation. On March 13, 2014, following a four-day trial, the jury convicted James White, Jr., on one count of assault resulting in serious bodily injury. White was indicted on October 22, 2013.
According to the indictment and evidence presented at trial, on August 30, 2013, White assaulted the infant. For his crime, White faces a potential maximum penalty of life in prison. United States District Judge John R. Tunheim will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.Federal Jury Convicts Man for Tax EvasionRead the Press Release
MINNEAPOLIS—Last week, a federal jury found a former executive of a Minnesota-based multi-level marketing company guilty of conspiracy to defraud the United States, tax evasion and failing to file federal tax returns. On March 14, 2014, following a seven-day trial, the jury convicted Michael Andrew Schlegel on one count of conspiracy to defraud the U.S., three counts of tax evasion and three counts of failure to file tax returns. Schlegel was indicted on April 9, 2013.
According to the indictment and evidence presented at trial, from 2002 through 2010, Schlegel, and his co-defendant Bradley Mark Collin, conspired with each other and others to defraud the U.S. by obstructing the Internal Revenue Service (“IRS”) in its lawful collection and assessment of individual income taxes. To that end, Schlegel failed to make any payments toward the back taxes, interest and penalties levied against him in 2000, which totaled more than $600,000. Both defendants also failed to file federal individual tax returns for tax years 2002-2009, pursuing “tax protestor” ideologies. On December 23, 2013, Collin pleaded guilty to one count of conspiracy to defraud the U.S.
From 2002 to 2009, Schlegel controlled NatureRich, Inc., a multi-level marketing company that sold natural and health-related products. Like similar companies, NatureRich paid commissions to salespeople based on direct sales and on the sales of downstream salespeople. At various times between 2002 and 2009, Schlegel and Collin received wages and commission payments from NatureRich that totaled more than $400,000. Schlegel also caused NatureRich to pay his commissions to a nominee trust called the “Andrew James Living Trust,” from which he then paid his family’s expenses. During that time, Schlegel also operated a painting business, receiving more than $400,000 in income from painting contracts.
In 2004, the defendants, through the use of nominee entities, began engaging the “warehouse” banking services of Olympic Business Systems and Century Business Concepts. “Warehouse” banking refers to the use of one or more bank accounts in which the funds of multiple clients are deposited, thereby concealing the true source of the funds.
The defendants also filed misleading federal corporate tax returns in the name of NatureRich in an effort to conceal the true extent of their personal interest in and the income derived from NatureRich. In all, the defendants attempted to conceal at least $3 million in gross income from the IRS, thereby avoiding income taxes on that income and also avoiding having those funds seized for payment of their previous tax debts.
For his crimes, Schlegel faces a potential maximum penalty of five years in prison on the conspiracy count, five years on each tax evasion count, and one year on each count of failure to file a tax return. Collin faces a potential maximum penalty of five years. U.S. District Judge Patrick J. Schiltz will determine their sentences at a future hearing, yet to be scheduled.
This case is the result of an investigation by the IRS-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and John E. Kokkinen.
Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.Federal Authorities Seize $5.7 Million in Cocaine, Detain Two SmugglersRead the Press Release
SAN JUAN, Puerto Rico –U.S. Magistrate Marcos E. López authorized a complaint charging Raddif Tapia-Rivera and Estevan DeCarlos with conspiracy to import 242 kilograms of cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Coast Guard, U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) seized a 469 pound cocaine shipment, a go-fast vessel, and apprehended two men following an at-sea interdiction 22 nautical miles southeast of Vieques, Puerto Rico Sunday morning. Federal law enforcement authorities involved in the interdiction were working in support of the Caribbean Border Interagency Group's (CBIG) Operation Caribbean Guard and the Caribbean Corridor Strike Force. The seized cocaine shipment was estimated to have a street value of approximately $5.7 million dollars, while the men detained claimed to be U.S. citizens from Puerto Rico.
“The US Attorney’s Office and our law enforcement counterparts remain committed to using every law enforcement tool available to attack these criminal organizations and ensure that drug traffickers and their associates are brought to justice for the damage they inflict on our communities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“Our effective interagency coordination efforts and aggressive patrolling of international and jurisdictional waters around Puerto Rico and the U.S. Virgin Islands allow us to successfully interdict these shipments at sea and bring those responsible to justice,” said Capt. Drew W. Pearson, Commander, Coast Guard Sector San Juan. “Our resolve and commitment are unwavering as we stand watch twenty-four seven to protect the safety and security of the citizens of Puerto Rico and the U.S. Virgin Islands from the threats delivered by the sea.”
While on a routine patrol in the Caribbean Sea late Saturday night, the crew of a U.S. Coast Guard HC-144 Ocean Sentry Maritime Patrol Aircraft (MPA) from Air Station Miami detected a 25-foot go-fast vessel, with two outboard engines and two subjects onboard, traveling northwest without any navigation lights, approximately 115 nautical miles southeast of Vieques. Coast Guard Sector San Juan Watchstanders, notified of the developing situation, diverted the Coast Guard Cutter Reef Shark to interdict the suspect vessel. A CBP Office of Air and Marine operations marine unit, with an Immigration and Customs Enforcement special agent onboard also responded, while Puerto Rico Police Joint Force for Rapid Actions, along the east coast of Puerto Rico, were alerted and ready to respond in the case the go-fast vessel entered Puerto Rico jurisdictional waters.
The Coast Guard MPA maintained constant surveillance as the Coast Guard Cutter Reef Shark arrived on scene and intercepted the go-fast vessel, approximately 22 nautical miles southeast of Vieques. The crew of the Reef Shark located the suspected illegal drug shipment in plain sight, a total of seven bales, and detained Tapia-Rivera y DeCarlos. A further inspection and testing of the suspected drug shipment revealed the contraband to be cocaine.
Custody of the two defendants, the narcotics, and the go-fast vessel were transferred by the Reef Shark to Special Agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) for further investigation and prosecution.
The Reef Shark is an 87-foot coastal patrol boat homeported in San Juan, Puerto Rico.If convicted, the defendants could face from 10 years up to life in prison. A criminal complaint contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Detroit Tax Preparer Convicted for Filing False Tax Returns, Failing to Report Half a Million Dollars in His Own IncomeRead the Press Release
The Justice Department, the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration (TIGTA) announced that Matthew Bender, of Detroit, was convicted today of obstructing the IRS and nine counts of aiding and assisting in the preparation of false federal income tax returns following a jury trial in the U.S. District Court for the Eastern District of Michigan.
According to court documents and evidence produced at trial, Bender prepared over 3,000 tax returns between 2006 and 2011 and earned over $500,000 in tax preparation fees. However, Bender failed to report his own income to the IRS, either by filing false tax returns for himself or by failing to file his own tax returns at all. The evidence showed that Bender caused his customer’s tax refunds to be inflated by placing false deductions on their returns.
Following the conviction, Bender remains detained pending sentencing. For each of the 10 counts of conviction, Bender faces a statutory maximum sentence of three years in prison and a maximum fine of $250,000.
The case was investigated by special agents of IRS – Criminal Investigation and TIGTA. Trial Attorneys Kenneth Vert and Jeffrey McLellan of the Tax Division prosecuted the case.
DeKalb Man Sentenced to 17 Years as Part of Robbery CrewRead the Press Release
ATLANTA - Larry Pratt has been sentenced in federal court to 17 years in prison to be followed by a five years of supervised release for his part in a robbery crew.
“By impersonating police and invading houses in residential areas, this robbery crew undermined the public’s trust in real law enforcement officers,” said United States Attorney Sally Quillian Yates. “Citizens must be able to trust that those who look like police are, in fact, really police. Although it may be tempting to characterize this as merely drug dealer on drug dealer crime; the fact that this robbery crew also used SWAT-like tactics, kidnapped victims, and exchanged gun fire on residential streets to steal drugs and cash demonstrates a lack of respect for people’s lives. Their arrest and prosecution is an important way to maintain public trust.”
"Individuals who impersonate law enforcement and pursue a criminal path of armed robberies and home invasions threaten the safety of our communities,” said ATF Acting Special Agent in Charge Ray Brown. “ATF along with our law enforcement partners remain on the frontline of preventing such criminal activities.”
According to United States Attorney Yates, the charges and other information presented in court: Pratt and the five other men indicted with him by the Fulton County District Attorney’s Office belonged to a robbery crew that targeted suspected drug dealers. The robbers used tracking devices they secretly put on the victims’ cars to learn their habits and where their intended victims stored drugs and money. The armed robbers would dress like police, including wearing bullet-proof vests, raid jackets, and hats with the word “POLICE” printed on them. They would then storm the victims’ houses in a “SWAT”-like tactic – yelling “Police, get down.” From there, they would tie up and beat the victims until they provided the locations of the drugs and money.
In one robbery, on the evening of January 14, 2010, Pratt and nine other robbers targeted a residence in DeKalb County, Ga. Dressed as police, the robbers approached the house just as the victim was walking out the front door. The robbers rushed the victim, and had him in handcuffs on the front lawn when the victim’s friend drove up. The robbers shot at the victim’s friend, and a gunfight between the friend and the robbers took place in the front yard. The robbers then kidnapped the victim in an attempt to get him to tell them where the drugs were located. The robbers drove the victim around for several hours, all the time keeping him handcuffed in the back of the vehicle. The victim was certain he would be killed. The ordeal ended only when the robbers drove the victim to his residence in Conyers, Ga., and his girlfriend recognized that something was wrong and called police.
Pratt, 40, of Decatur, Ga., was sentenced to 17 years in prison, and five years of supervised release. Pratt pleaded guilty on November 10, 2011, and his sentencing was delayed until after the trial of his co-defendants.
Besides this robbery, the crew committed other robberies including ones in Rockdale, Fulton, Bartow and Cobb Counties. The crew included three men from Baltimore, Maryland, who travelled here for the sole purpose of committing these robberies: Torrez Seymore, who was sentenced on March 7, 2013, to 13 years, eight months in prison, Kenneth Patterson, who was sentenced on November 8, 2013, to ten years and one month in prison, and Rashaad Wilson, who is scheduled to be sentenced on April 15, 2014. Two members of the crew are from Atlanta, Ga.; Charles Hutcheson, aka Charlie Boy, who was sentenced July 12, 2013, to 19 years, six months, and Taylor Richardson, who is scheduled to be sentenced on April 15, 2014. One other member of the crew, Ryan Whitt, of Decatur, Ga., was sentenced on January 6, 2013, to 16 years in prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Kim S. Dammers and Leslie Abrams prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Dallas County Man Admits Role in $5 Million Staged Accident Fraud SchemeRead the Press Release
DALLAS — Leroy Nelson, 61, of DeSoto, Texas, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to his role in a $5 million staged accident fraud scheme, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Nelson pleaded guilty to one count of mail fraud and one count of engaging in illegal monetary transactions. He faces a maximum statutory penalty of 20 years in federal prison on the mail fraud count and 10 years in federal prison on the illegal monetary transactions count. In addition, each count carries a fine of up to $250,000, and restitution could be ordered. Sentencing is set for July 7, 2014, before U.S. District Judge Sam A. Lindsay.
According to the plea agreement filed in the case, Nelson agrees to forfeit several vehicles, a motor home, a boat and trailer and real estate in Duncanville and Cooper, Texas.
According to the factual resume filed in the case, beginning in 2005 and continuing through 2012, Nelson engaged in a scheme to defraud automobile insurance companies by fabricating and submitting false and fraudulent claims for damage to technical equipment damaged in fictitious road accidents.
As part of the scheme, Nelson promised cash payments to individuals he recruited for them to falsely report to their automobile insurance company that, while driving, they inadvertently damaged a piece of equipment. Typically, the individual would falsely report that while driving, he or she had either rear-ended a trailer pulling equipment, or swerved to avoid something in the road and collided with equipment on the side of the road. Nelson would instruct the individual on how to make the telephone call to the insurance company.
Nelson then prepared and submitted the claims for property damage in the name of a “DBA” he created. The claim would include a photo of the equipment and a fictitious repair estimate that Nelson prepared. The damaged equipment was described as very technical in nature, such as: a “Remote Aircraft Landing Marker,” a “chemical Pipeline Examiner” or a “Seismographic Probe.” The claimed repair expenses would usually be from $16,000 to $19,000.
Nelson opened private mailboxes in states including Minnesota, Missouri, Washington, Arizona, Connecticut and Louisiana to receive the insurance checks. The mailboxes were opened under an assumed business name that Nelson used as the owner of the damaged equipment in the claims. Nelson also used the addresses of two warehouses on Explorer Street in Dallas, and directed that mail received at the private mailboxes be forwarded to one of those two addresses.
The cumulative total of the insurance claims prepared and submitted to insurance companies by Nelson from 2005 to 2012 totaled approximately $5 million.
This investigation was brought to the attention of federal law enforcement by the National Insurance Crime Bureau (NICB) and Farmers Insurance Group, Special Investigations. The FBI, Internal Revenue Service Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
California Man Sentenced to 22.5 Years in Prison for Role as Marijuana Supplier to Drug Trafficking NetworkRead the Press Release
CHARLOTTE, N.C. – Milton Earl Adams, 36, of Los Angeles, Calif., was sentenced today to serve 270 months in prison for his role as a supplier of marijuana to a drug trafficking network that operated from coast to coast for more than two years, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE - Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department.
Adams, a/k/a “Turtle,” pleaded guilty in December 2012 to conspiracy to possess with intent to distribute 1,000 or more kilograms of marijuana and to money laundering conspiracy. Upon completion of his prison term, U.S. District Judge Robert J. Conrad, Jr. ordered Adams to be placed on five years of supervised release.
According to court documents and today’s sentencing proceedings, between 2009 and 2011, Adams was the California-based supplier of marijuana to a drug trafficking network that operated from coast to coast. Court documents indicate that Adams had ties to the “Mexican Mafia” and supplied several tons of marijuana from the Los Angeles area to the Charlotte area and other locations throughout the country. “Couriers” of the drug trafficking ring transported the marijuana using commercial flights, each time delivering $50,000 in cash to California, and returning to Charlotte with approximately 100 pounds of marijuana. An airport employee assisted the couriers in passing the packaged marijuana in baggage through airport security.
In January 2014, Judge Conrad sentenced the Charlotte leader of the drug trafficking ring, Parker Antron Coleman, to serve 60 years in prison for marijuana trafficking, money laundering and firearms offenses. To date, a total of 47 defendants have been sentenced in connection with the investigation, 11 are awaiting sentencing and five are currently fugitives. Also, the United States seized more than $1 million of drug proceeds, 600 pounds of marijuana and 13 firearms related to the case. (See list of defendants and sentences/status below).
This investigation, code-named “Operation Goldilocks,” was led by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF). In announcing the sentence, U.S. Attorney Tompkins commended the work of Homeland Security Investigations and CMPD, which are members of the task force. Ms. Tompkins also acknowledged the Gastonia Police Department, the Concord Police Department, the Mooresville Police Department, the Pineville Police Department, the Huntersville Police Department, the Kannapolis Police Department, the Cornelius Police Department, the Waxhaw Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Bureau of Investigation, the Iredell County Sheriff’s Office, the Union County Sheriff’s Office, and the Culver City, Cal. Police Department for their assistance with the investigation.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the case.
The defendants stemming from this investigation are:
3:10-cr-238, U.S. v. Coleman et al:
1. Parker Coleman – 720 months in prison, followed by 10 years of supervised release (SR). 2. Stephanie Peppers – 54 months in prison and 4 years SR. 3. Shaunda Shenal McAdoo – 36 months in prison and 3 years SR. 4. Ryann Chancler Lewis – 87 months in prison and 5 years SR. 5. Samantha Jo Schmidlin – 27 months in prison and 3 years SR. 6. Nolan Robertson – 41 months in prison and 4 years SR. 7. Leah Patience Davis – 24 months of probation. 8. Leon Edgar Robertson – 84 months in prison and 4 years SR. 9. Mark Eric Dorsey, II – 96 months in prison and 5 years SR. 10. Wendell Jerrod Robinson – 72 months in prison and 4 years SR. 11. Davon Clifton Harris – 60 months in prison and 3 years SR. 12. Christopher Seaton McKneely – 37 months in prison and 4 years SR. 13. Gerren Ezekiel Darty – 188 months in prison and 5 years SR. 14. Glenn O’Neil Carrera – 87 months in prison and 3 years SR. 15. William Pierce – 36 months in prison and 3 years SR. 16. Rico Lamont Grier – 36 months in prison and 3 years SR. 17. Harold Manigault – 30 months in prison and 3 years SR. 18. Mark Rene Hunt – 46 months in prison and 4 years SR. 19. Jason Lee Banks – 78 months in prison and 3 years SR. 20. Megan Amelia Baehr – 41 months in prison and 4 years SR.
3:10-cr-245, U.S. v. Crockett et al:
1. Ahmed Daniel Crockett – 235 months in prison and 5 years SR. 2. Goldie Frances Crockett – 60 months in prison and 3 years SR. 3. Sharon Kelsey-Brown – 60 months in prison and 3 years SR. 4. Robert Jonathan Brown – 58 months in prison and 5 years SR. 5. Shondu Lamar Lynch – 96 months in prison and 4 years SR.
3:11-cr-18, U.S. v. Romero Lamont Massey – 60 months in prison and 4 years SR.
3:11-cr-46, U.S. v. Lasonya White – 24 months of probation.
3:11-cr-85, U.S. v. Thomas Diggs, III – 12 months and 1 day in prison and 2 years SR.
3:11-cr-209, U.S. v. Jerry Davis – 48 months in prison and 3 years SR.
3:11-cr-256, U.S. v. Saulsberry et al:
1. Kamia Arekai Saulsberry – 36 months of probation. 2. Kisha Dorsey – 44 months in prison and 4 years SR. 3. Robert Earl Dorsey, Jr. – 48 months in prison and 3 years SR. 4. Ashley Rae Williams – 6 months in prison and 3 years SR. 5. Tonisha Deshon Williams – 70 months in prison and 4 years SR. 6. Vincent Talbot – 72 months in prison and 4 years SR. 7. Kevin Lamont Stanfield, Jr. – 42 months in prison and 4 years SR. 8. Danny Hance – 37 months in prison and 3 years SR.
3:11-cr-287, U.S. v. Thomas Lavon Smith, Jr. – 168 months in prison and 5 years SR.
3:11-cr-337, U.S. v. Logie et al:
1. Tavarus Shamaco Logie – 210 months in prison and 5 years SR. 2. Crystal Alethea Easter – 36 months in prison and 4 years SR. 3. Don Levon Marsh – 48 months in prison and 4 years SR. 4. Anthony Silva Alegrete – 54 months in prison and 5 years of SR. 5. Ronald Clemenceau Hargette – 60 months in prison and 4 years SR. 6. Sandra Anita Landers – 27 months in prison and 3 years SR. 7. Natalia Christina Wade – 6 months in prison and 3 years SR. 8. Francine Vanessa Williams – convicted at trial/pending sentencing. 9. Evelyn Chantell LaChapelle – convicted at trial/pending sentencing. 10. Marvin Ray Wilburn – pleaded guilty/pending sentencing. 11. Corvain T. Cooper – convicted at trial/pending sentencing. 12. Leamon Keishan Moseley – pleaded guilty/pending sentencing. 13. Gregory Wall – pleaded guilty/pending sentencing. 14. Dana Lamont Adams – pleaded guilty/pending sentencing. 15. Lamar Andrew Harris – pleaded guilty/pending sentencing. 16. Clyde Monroe Wilburn – currently a fugitive.
3:13-cr-18, U.S. v. Lopez et al:
1. Enrique Leonardo Lemus – 70 months in prison and 3 years SR. 2. Octavio Lopez – pleded guilty/pending sentencing. 3. Gustavo Campos Garcia – currently a fugitive. 4. Roberto Mendoza – currently a fugitive. 5. Edgar Milian – currently a fugitive. 6. Cristian Deylah West – currently a fugitive.
3:13-cr-40, U.S. v. Andrew Scott Lowery – pleaded guilty/pending sentencing.
3:13-cr-132, U.S. v. Darrick Leon Johnson – pleaded guilty/pending sentencing.
California Attorney Sentenced to Prison in Scheme to Hide Millions in Secret Swiss Accounts at UBS AG and Pictet & CieRead the Press Release
California attorney Christopher M. Rusch was sentenced to serve 10 months in prison for helping his clients Stephen M. Kerr and Michael Quiel, both businessmen from Phoenix, hide millions of dollars in secret offshore bank accounts at UBS AG and Pictet & Cie in Switzerland, the Justice Department and the Internal Revenue Service (IRS) announced today. U.S. District Judge James A. Teilborg also ordered Rusch to serve three years of supervised release following his prison sentence. On Feb. 6, 2013, Rusch pleaded guilty to conspiracy to defraud the government and failing to file a Report of Foreign Bank and Financial Accounts (FBAR). Kerr and Quiel were sentenced in September 2013 to each serve 10 months in prison after both were tried and convicted of filing false income tax returns for 2007 and 2008. The jury also convicted Kerr of failing to file FBARs for 2007 and 2008.
According to the evidence presented at trial, Kerr and Quiel, with the assistance of Rusch and others, including Swiss nationals, established nominee foreign entities and corresponding bank accounts in Switzerland to conceal Kerr and Quiel’s ownership and control of stock and income they deposited in these accounts. Rusch testified at trial, admitting that he and others caused the sale of the shares of stock through the undeclared accounts. Rusch further testified that, at Kerr and Quiel’s direction, he transferred some of the money in the secret accounts back to the United States through Rusch’s Interest on Lawyer’s Trust Account before dispersing the money for Kerr and Quiel’s benefit, including the purchase of a multi-million dollar golf course in Erie, Colo. According to court documents and evidence presented at trial, with Rusch’s assistance, Kerr and Quiel each failed to report more than $ 4,600,000 and $2,000,000 of income, respectively, during 2007 and 2008 which they hid in the undeclared accounts with Rusch’s assistance.
“We are getting more and more information all the time about offshore banking activities,” said Assistant Attorney General Kathryn Keneally for the Tax Division. “We are committed to investigating and prosecuting those who continue to evade taxes and reporting requirements. As these sentences show, those who fail to come into compliance risk high penalties and jail.”
“This prosecution serves notice that the Department of Justice will not tolerate fraudulent activity designed to undermine the integrity of our income tax system,” said U.S. Attorney John S. Leonardo for the District of Arizona.
“Today, Mr. Rusch has been held accountable for his actions in assisting wealthy individuals hide millions of dollars in secret offshore bank accounts and dodge the tax system,” said Chief of IRS-Criminal Investigation Richard Weber. "In addition, Mr. Rusch used his attorney trust account to funnel money from the secret offshore accounts back to Mr. Kerr and Mr. Quiel for their personal benefit, including the purchase of a multi-million dollar golf course. As the investigation into offshore tax evasion continues, Criminal Investigation will leave no financial stone unturned as we continue to vigorously pursue new leads."
The case was investigated by special agents of IRS-Criminal Investigation, and was prosecuted by Trial Attorney Timothy J. Stockwell for the Tax Division and Assistant U.S. Attorney Monica Edelstein for the District of Arizona.
Additional information about the Justice Department’s Tax Division and its enforcement efforts is available at the website.
Bridgeport Man Sentenced to 40 Months in Prison for Selling CocaineRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CORNEL CAMERON, 36, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 40 months of imprisonment for his role in a southwestern Connecticut narcotics trafficking ring.
This matter stems from a six-month investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, 20 individuals have been charged in federal court with various offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford.
During the investigation, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, the investigation revealed that CORNEL CAMERON’s brother, Chester Cameron, regularly purchased half-kilogram quantities of cocaine from suppliers in New York and Jamaica. Chester Cameron and CORNEL CAMERON then distributed the drug from the Fresh Cuts barbershop in Bridgeport. One of the Cameron’s main drug customers was Marvin Wooten, also known as “Smash,” of Norwalk, who converted large amounts of cocaine into crack, which he distributed throughout Fairfield County.
On October 15, 2013, CORNEL CAMERON pleaded guilty to two counts of using a telephone to facilitate a drug trafficking felony. Chester Cameron and Wooten also pleaded guilty and are serving prison terms of 70 months and 120 months, respectively.
The Camerons are citizens of Jamaica and face deportation proceedings when they complete their federal sentences.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – which is composed of members of the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The U.S. Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bedford County Man Helped Transport 31 Stolen Firearms from Pennsylvania to MarylandRead the Press Release
JOHNSTOWN, Pa. - A resident of Saxton, Pa., pleaded guilty in federal court to a charge of interstate transportation of stolen firearms, United States Attorney David J. Hickton announced today.
Joshua M. Faircloth, 27, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Jan. 28, 2013, Faircloth aided in transporting 31 firearms stolen from Saxton Outdoor Supply, Inc., from Pennsylvania to Maryland.
Judge Gibson scheduled sentencing for July 31, 2014, at 1 p.m. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police-Bedford Barracks conducted the investigation that led to the prosecution of Faircloth.
According to Mr. Hickton, Faircloth is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Austin Area Man Pleads Guilty to Stealing Millions from Pension PlansRead the Press Release
In Austin, 64-year-old Lakeway resident Ricky Lynn Richardson faces up to five years in federal prison, a maximum $250,000 fine and restitution after pleading guilty this morning to stealing millions from pension plans announced United States Attorney Robert Pitman and Federal Bureau of Investigation Acting Special Agent in Charge Aaron C. Rouse, San Antonio Division.
Appearing before United States Magistrate Judge Andrew Austin, Richardson pleaded guilty to a one-count Information charging him with theft and embezzlement from an employee benefit plan. According to authorities, from 1998 to 2013, Richardson stole approximately $4.3 million from four separate pension plans for which he provided administrative services. During the scheme, Richardson, doing business as Benefit Consultants, Inc. in Spicewood, TX, secretly misdirected or misappropriated money that belonged to the plans and provided customers with false statements, leading them to believe they still had the retirement money.
Richardson is out on bond pending sentencing. No sentencing date has been scheduled. The restitution amount in this case will be determined by the Court at sentencing.
This investigation was conducted by agents with Federal Bureau of Investigation and the Employees Benefits Security Administration of the Department of Labor. Assistant United States Attorney Alan M. Buie is prosecuting this case on behalf of the Government.
American Family Care Inc. to Pay $1.2 Million to Settle Allegations of Inflated Medicare ClaimsRead the Press Release
American Family Care Inc. has agreed to pay the government $1.2 million to resolve allegations under the False Claims Act that it knowingly submitted claims to Medicare for outpatient office visits that were billed at a higher rate than was appropriate, the Justice Department announced today. American Family Care is a network of walk-in medical clinics headquartered in Birmingham, Ala., with offices in Alabama, Tennessee and Georgia.
“Mischarging the government for office visits wastes valuable government resources that could be used to care for other patient needs,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “At a time of increasing concern about the cost of medical care, it is especially important to ensure that health care providers are not overbilling the government by improperly inflating their claims.”
Following guidance adopted by the Centers for Medicare and Medicaid Services, health clinics such as American Family Care bill Medicare for their services by selecting a corresponding Evaluation and Management code. The codes are divided into five different levels - from basic (level 1) to most complex (level 5). Higher level codes result in higher reimbursement from Medicare than lower level codes. The government alleged that American Family Care knowingly selected Evaluation and Management codes for a level of services that exceeded those actually provided in order to artificially increase the amount of reimbursement it received for those visits.
“The False Claims Act is a critical tool for weeding out fraud and protecting the taxpayers,” said U.S. Attorney for the Northern District of Alabama Joyce White Vance. “My office will continue to return funds, like the $1.2 million in this case, to the taxpayers by proceeding against those who abuse our public health programs."
“Billing the government for services not provided as claimed cheats both taxpayers and patients,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General, U.S. Department of Health and Human Services region including Alabama. “We will pursue aggressively providers like American Family Care alleged to have improperly maximized reimbursements.”
The civil settlement resolves a lawsuit filed by Anita C. Salters, a former employee of American Family Care, under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the government for false claims and to obtain a portion of the government’s recovery. Salters’ share has not yet been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement with American Family Care was the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of Alabama; the Department of Justice’s Civil Division, Commercial Litigation Branch; the Office of Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation.
The lawsuit is captioned United States ex rel. Anita C. Salters v. American Family Care Inc. (N.D. Ala.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
AMENDED: Government Contractor Pleads Guilty to Submitting False ClaimsRead the Press Release
ALEXANDRIA, Va. – Thomas J. Cicatello, 32, of Woodbridge, Va., pleaded guilty today to charges of submitting false claims to the United States government totaling more than $40,000.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Robert Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s Mid-Atlantic Field Office (DCIS), made the announcement after the plea was accepted by United States District Judge Gerald Bruce Lee.
Cicatello faces a maximum penalty of five years in prison when he is sentenced on May 15, 2014.
In a statement of facts filed with the plea agreement, Cicatello admitted that from February 2011 through October 2011, while he was employed as a contractor providing image and data analysis services to the National Geospatial-Intelligence Agency (NGA), he caused his employer to submit to the NGA time reports claiming he had worked for significant amounts of time when in fact he was not at work. As part of his responsibilities, Cicatello reviewed geospatial intelligence to aid in the identification of improvised explosive devices in active war zones, including Afghanistan and Iraq. The information he was responsible for preparing was used in reports provided to U.S. military personnel in those areas, who relied on the accuracy of the information they received to make strategic decisions. In order to conceal his absences, Cicatello prepared false intelligence reports indicating “NSTR,” which meant nothing significant to report, without actually having reviewed the relevant material.
This case was investigated jointly by DCIS and NGA Office of Inspector General. Assistant United States Attorney Timothy D. Belevetz is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Monday 17 March 2014
Weight-Loss Infomercial Pitch-Man Kevin Trudeau Sentenced to 10 Years in Prison for Criminal ContemptRead the Press Release
CHICAGO ― Author and television pitch-man KEVIN TRUDEAU was sentenced today to 10 years in federal prison for criminal contempt for violating a 2004 federal court order that prohibited him from making deceptive television infomercials that misrepresented the contents of his weight loss cure book. Trudeau was convicted by a jury last November after a week-long trial in U.S. District Court.
Trudeau, 51, formerly of Oak Brook, who has been in custody since he was convicted, was also placed on supervised release for five years following his sentence by U.S. District Judge Ronald Guzman. During supervised release, Trudeau was ordered to cooperate in the collection of civil judgments and abide by court orders.
“Since the age of 25, [Trudeau] has attempted to cheat others for his own personal gain,” Judge Guzman said, adding he has a lengthy “history of refusal to follow court orders to tell the public the truth.”
Trudeau “is an unrepentant, untiring, and uncontrollable huckster who has defrauded the unsuspecting for 30 years. He is the type of person the Court should expect to defraud his fellow inmates while in custody, and to continue to commit fraud into old age. He appears capable of nothing else,” prosecutors argued in a sentencing memo.
Criminal contempt has no statutory maximum sentence. The judge found that Trudeau faced an advisory federal sentencing guidelines range of 235 to 293 months in prison and said that such a sentence would be reasonable, but cited prosecutors’ request for a sentence of at least 10 years in imposing the sentence.
During the sentencing hearing, a man who twice shouted from the gallery was removed by court security officers. The U.S. Marshals Service issued a petty offense citation to Ed Foreman, 80, of Dallas, for allegedly causing a disturbance. He was given a June 9 court date unless he pays a fine and court costs totaling $175 before that date.
According to the evidence at trial, Trudeau appeared in three television infomercials between December 2006 and July 2007 in which he willfully misrepresented the contents of his book The Weight Loss Cure “They” Don’t Want You to Know About. In April 2010, U.S. District Judge Robert Gettleman issued an order to show cause why Trudeau should not be held in criminal contempt of a Sept. 2, 2004, settlement in which Trudeau agreed not to directly or indirectly produce and broadcast any deceptive infomercials that misrepresented the contents of any book, including the weight loss cure book. Federal Trade Commission v. Trudeau, No. 03 C 3904.
Prosecutors cited a litany of blatant lies and misrepresentations made by Trudeau in his infomercials. These included his claims that his book was not a “diet,” when in fact it required at least three weeks of eating 500 calories or less a day, and that a hormone found only in pregnant women that was required to be injected daily could be obtained “anywhere,” when in fact it could be obtained in the United States only through a doctor’s prescription. He also claimed that after finishing the diet, consumers could eat anything they wanted without regaining weight, when in fact the diet required severe food deprivation that lasts for life.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorneys April Perry and Marc Krickbaum.
University Park Woman Sentenced to 14 Years in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Erika Susan Perdue, 43, of University Park, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to 168 months (14 years) in federal prison and an eight-year term of supervised release following her guilty plea in September 2013 to one count of transporting and shipping child pornography. In addition, Judge Lindsay ordered Perdue to pay a $10,000 fine and $5,000 in restitution to one of the victims identified by the National Center for Missing and Exploited Children as “Vicky.” The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A federal grand jury returned a four-count indictment in May 2012 charging Perdue with two counts of transporting and shipping child pornography, one count of receipt of child pornography and one count of possession of child pornography. Purdue has been in custody since June 2012 when the court found that she had violated its conditions.
On January 4, 2012, a special agent with the FBI, and on January 5, 2012, an FBI Task Force Officer with the Plano Police Department, each acting online in an undercover capacity and assuming someone else’s identity, launched publicly-available peer-to-peer file-sharing programs and discovered that an individual, using the username, “Classybitch,” later identified as Perdue, was logged on to the network. They observed that the individual’s shared folder contained numerous files, many with names consistent with child pornography. They downloaded files, directly from this individual’s computer, and several did contain child pornography, including one video of a man and a woman engaged in sexually explicit conduct with a minor child. That video is described in Count One of the indictment for which Perdue is pleading guilty.
A search warrant was executed at Perdue’s resident on April 10, 2012. She admitted that one of her screen names was “Classybitch,” and that she traded child pornography while her husband was at work.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Plano Police Department. Assistant U.S. Attorney Camille Sparks prosecuted.
Union County, N.J., Woman Sentenced to 70 Months in Prison for Fraud Leading to Theft of $7 Million in Charity HIV and Cancer MedicationRead the Press Release
Medicines had been donated to be used for indigent patients
TRENTON, N.J. – A Union County, N.J., woman was sentenced today to 70 months in prison for her role in defrauding a charity program out of more than $7 million in donated HIV and cancer medication by using her access to a company hired to administer the program, U.S. Attorney Paul J. Fishman announced.
Lateefah McKenzie Body, 35, of Linden, N.J., was previously convicted of one count of conspiracy to commit mail fraud and nine counts of mail fraud following a two-week trial before U.S. District Judge Mary L. Cooper, who imposed the sentence today in Trenton federal court.
Another conspirator, Keisha Jackson, 47, of Perth Amboy, N.J., pleaded guilty to conspiracy to commit bank fraud and was sentenced on Dec. 20, 2013, to 51 months in prison.
According to documents filed in this case and the evidence at trial:
A pharmaceutical company donated millions of dollars’ worth of FDA-approved prescription medicines – including for the treatment of HIV and cancer – at no cost to qualified patients experiencing financial difficulties. Jackson, Bryant, and McKenzie Body were all, at various times, employed as customer service representatives at a corporation hired to provide administrative support in operating the donated medicines program. They were responsible for receiving applications for the program, entering the applications into the computer system, and using the computer system to cause the donated medicines to be delivered to the physicians of patients who met certain eligibility criteria, including financial status.
As part of the scheme, McKenzie Body entered approximately 600 fraudulent orders into the company’s system, causing medicines to be delivered to Jackson’s home and other addresses controlled by those involved in the scheme. After McKenzie Body was terminated from the company for unrelated reasons, McKenzie Body enlisted Bryant to take over entering fraudulent orders. Bryant agreed, and entered approximately 950 fraudulent orders, again causing medicines, which could then be resold at a profit, to be delivered to Jackson’s home and other addresses controlled by those involved in the scheme.
In addition to the prison term, Judge Cooper sentenced McKenzie Body to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Andrew Leven of the Healthcare and Government Fraud Unit and Danielle Corcione of the General Crimes Unit in Newark.14-091
Defense Counsel: James Patton Esq., Livingston, N.J.Two Traveling Through Idaho Sentenced for Meth TraffickingRead the Press Release
POCATELLO – Co-defendants Robert Anthony Johnson, 33, of Fairview, Montana, and Brandy Rachelle Felts-Patelzik, 40, of Watford City, California, were sentenced today in United States District Court in Pocatello for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
U.S. District Judge Brian Ted Stewart, from the District of Utah, sentenced Johnson to 75 months and Felts-Patelzik to 12 months in prison, followed by four years of supervised release. Johnson was also ordered to pay a $1,500 fine. The two pleaded guilty to the charge on December 2, 2013.
According to the plea agreements, on February 25, 2013, the defendants were traveling from Nevada to North Dakota. While en route, they were stopped by Idaho State Police in Madison County, Idaho. A subsequent search by law enforcement found them to be in possession of one and one-half pounds of a mixture containing methamphetamine.
Co-defendant Wes Elden Williams, 56, of Ririe, Idaho, is set for sentencing on April 21, 2014. He pleaded guilty on January 29, 2014, to possession with intent to distribute methamphetamine. He faces up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
The case is the result of a joint investigation by Idaho State Police and the Madison County Sheriff’s Office.
Two Convicted in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Linus Davar Riggs, 32, and Nowell Joshua Cousin, 31, both of Houston, have been convicted of filing fraudulent tax returns using identification information that was either stolen or used without lawful authority, announced United States Attorney Kenneth Magidson. Riggs entered a guilty plea today, while Cousin entered his plea March 10, 2014. Both were convicted of one count of conspiracy to commit mail fraud and one count of conspiracy to submit false claims to the U.S.
According to court records, the defendants used personal identifying information, including names and Social Security numbers, to file at least 266 fraudulent tax returns claiming approximately $1,296,710 in refunds. According to Internal Revenue Service (IRS) records, the government paid out approximately $544,846 before Riggs and Cousin were arrested and the scheme discovered. The tax refunds generated by the fraudulent returns were often deposited onto reloadable debit cards and mailed to addresses under control of the conspirators.
Both face up to 20 years in federal prison for conspiracy to commit mail fraud as well as 10 years on the conspiracy to submit false claims. Both convictions also carry a potential $250,000 fine.
U.S. District Judge Kenneth Hoyt, who accepted the pleas, has set sentencing for Riggs June 16, while Cousin will be sentenced May 27, 2014. Cousin will remain in custody, while Riggs was permitted to remain on bond pending sentencing.
The matter was investigated by the U.S. Postal Inspection Service and IRS-Criminal Investigation. Assistant U.S. Attorney James R. Buchanan is prosecuting.
Topeka Man Pleads Guilty to Federal Gun ChargeRead the Press Release
TOPEKA, KAN. – A Topeka man pleaded guilty today to a federal gun charge, U.S. Attorney Barry Grissom said.
Troy A. Kurtti, 21, Topeka, Kan., pleaded guilty to unlawful possession of a firearm after a felony conviction. In his plea, he admitted he possessed a .25 caliber pistol when he was arrested July 15, 2013, at the Value Place Hotel in Topeka. Police were called by a manager who reported receiving a bad check as payment for a room. Kurtti was found hiding in a bathroom and the gun was found in a trash can where he hid it. He was prohibited by federal law from possessing a firearm because of prior convictions in Shawnee County District Court for possession of methamphetamine, eluding police and theft.
Sentencing is set for June 9. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.Three Indicted on Fraud and ID Theft Charges in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Organization Allegedly Capitalized on Information Hacked
From The Customers of More Than a Dozen Global Financial InstitutionsNEWARK, N.J. – Three alleged members of an international cybercrime, money laundering and identity theft conspiracy were charged in New Jersey today with a scheme to use information hacked from customer accounts held at more than a dozen banks, brokerage firms, payroll processing companies and government agencies in an attempt to steal at least $15 million from American customers, U.S. Attorney Paul J. Fishman announced.
The three defendants – Oleksiy Sharapka, 33, and Leonid Yanovitsky, 39, both of Kiev, Ukraine; and Richard Gundersen, 47, of Brooklyn, N.Y., were indicted by a federal grand jury on charges of conspiracy to commit wire fraud, conspiracy to commit access device fraud and identity theft, and with aggravated identity theft.
According to the Indictment and other documents filed in the case:
Sharapka allegedly directed the conspiracy with the help of Yanovitsky. Gunderson allegedly facilitated the movement of fraud proceeds. Sharapka and Yanovitsky are fugitives. Gundersen will be arraigned on the new charges on a date to be determined.
Conspiring hackers gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, the defendants and conspirators diverted money from them to bank accounts and pre-paid debit cards the defendants controlled. They then implemented a sophisticated “cash out” operation, employing crews of individuals known as “cashers” to withdraw the stolen funds, among other ways, by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere.
As part of the scheme, the defendants stole identities from individuals in the United States, which they used to facilitate the cash out operation, including by transferring money to cards in the names of those stolen identities. They also used some of those identities to file fraudulent tax returns with the IRS seeking refunds.
The defendants and their conspirators laundered the proceeds of the scheme, often through international wire transfer services, to the leaders of the conspiracy overseas.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
If convicted, each of the defendants face a maximum potential penalty of 20 years in prison on the conspiracy to commit wire fraud count, five years in prison on the conspiracy to commit access device fraud and identity theft count, and a consecutive term of two years in prison on the aggravated identity theft counts. The wire fraud and identity theft counts also carry a maximum fine of $250,000, or twice the gross amount of pecuniary gain or loss resulting from the offenses. The money laundering conspiracy count carries a maximum fine of $500,000, or twice the value of the monetary instruments involved.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement/Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
14-090
Defense counsel:
Gundersen: Cynthia H. Hardaway Esq., NewarkSharapka et al. Indictment
Third Person Pleads Guilty in HUD Mortgage Fraud CaseRead the Press Release
Defendant’s Mother and Former Husband Sentenced Last Year
for Their Roles in the SchemePOCATELLO – U.S. Attorney Wendy J. Olson announced that Sarah Kate Henecke, 35, also known as Alessandra Valencia Toscanelli, of Las Vegas, Nevada, pleaded guilty today to making a false statement on a residential loan application to the Department of Housing and Urban Development. Henecke was arrested in Nevada on December 11, 2013. She appeared today before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello. Sentencing is set for June 9, 2014.
A federal grand jury in Boise indicted Henecke on November 13, 2013. She was charged with one misdemeanor count of making a false statement on a residential loan application to the Department of Housing and Urban Development (HUD) on a guaranteed loan. She admitted to misrepresenting that she had employment income of $2,400 per month, when in fact she was not employed.
Darin Henecke, 37, of Pocatello, Idaho, and Sarah Henecke’s mother, Karen DeWall Shaw, 60, of Chubbuck, Idaho, pleaded guilty last year to a misdemeanor charge of making a false statement. They were sentenced on September 25, 2013, to five years of probation and each ordered to pay $42,905 in restitution. According to the plea agreement filed in the case, on March 13, 2009, Darin Henecke obtained a residential loan to finance the purchase of a residence in Eagle, Idaho. The loan was funded based in part on the false statement allegedly made by Sarah Henecke. Shortly after the loan was funded, it went into default and foreclosure, causing HUD to sustain a loss. When interviewed by investigators, Darin Henecke admitted that he knew false employment information was submitted to obtain the loan. Shaw admitted that she assisted in the fraud by providing false employment information in order for the borrowers to qualify for the loan.
The case was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG).
Today’s announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Third Defendant Sentenced in Bonneville Co. Traffic Stop Meth Distribution CaseRead the Press Release
POCATELLO — Angelica Campos, 27, of Caldwell, Idaho, was sentenced today to 121 months in prison and fined $500 for conspiring to distribute and to possess with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Brian Ted Stewart of the District of Utah also ordered Campos to serve five years of supervised release following her prison term, and to forfeit all property used to commit the crime and proceeds derived from the crime. Campos pleaded guilty to the charges on October 23, 2013.
According to court records, an Idaho State Police trooper stopped a vehicle being driven by co-defendant Noe Gonzalez on February 12, 2013, in Bonneville County. Campos was a passenger, and both she and Gonzalez were ultimately arrested. Pursuant to a search warrant, the vehicle was searched the next day. Hidden in the dash of the vehicle, police found a white tube sock containing four baggies of methamphetamine within a larger zip lock bag. The methamphetamine totaled 95.53 grams. Police also found a handgun and loaded magazine in the glove box. Recorded calls between Campos and her sister, Vanessa Campos, revealed that Vanessa Campos planned to get the vehicle out of police impound and recover the methamphetamine before it was discovered by law enforcement. By the time Vanessa Campos recovered the vehicle, the police had already located the drugs.
Vanessa Campos, 25, and Gonzalez, 29, both of Caldwell, Idaho, were sentenced in January to serve 47 months and 151 months, respectively, for their roles in the conspiracy.
The case was the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Idaho State Police, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation (IRS-CI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Temecula Student Sentenced to Federal Prison in ‘Sextortion’ CaseRead the Press Release
SANTA ANA, California – A Temecula college student who hacked into as many as 150 online accounts to extort young females into sending him nude photos and video – or submitting to Skype sessions in which he convinced two teens to undress – was sentenced today to 18 months in federal prison, concluding the latest in a series of federal “sextortion” cases in Southern California.
Jared James Abrahams, 20, was sentenced this morning by United States District Judge James V. Selna.
After being arrested last year by special agents with the FBI, Abrahams pleaded guilty on November 12 to one count of computer hacking and three counts of extortion.
Abrahams targeted young women he knew, and he identified other victims after hacking into Facebook pages. Using hacking software, Abrahams took control of victims’ email accounts, social media accounts and even their computers – which allowed him to remotely turn on web cameras and occasionally take pictures of naked victims.
Abrahams used the nude photos to extort victims by threatening to publicly post the compromising photos or videos to the victims’ social media accounts – unless the victim either sent more nude photos or videos, or engaged in a Skype session with him and did what he said for five minutes.
Several teens and women in their early 20s were victimized when Abrahams posted nude photos to their social media accounts. At least two victims consented to the Skype sessions proposed by Abrahams to keep their photos off the Internet.
“As digital devices, email accounts, and social media accounts now contain the most intimate details of the public’s daily lives, the impact of this type of hacking and extortion becomes more pronounced, troubling, and far-reaching,” prosecutors wrote in a sentencing memo filed with the court. “In some cases, this type of criminal behavior can be life-changing for the victims – especially for vulnerable victims who may feel it is impossible to rebuild their tarnished reputations. Stated differently, individuals like defendant have the ability to affect a person’s life in frightening ways by using the broad reach of the Internet.”
To avoid become a victim of sextortion, everyone should be prudent when posting images online or to any wireless communication (computer, phone, tablet), especially if the images have private or compromising content. Victims who receive extortionate threats or whose personal accounts have been compromised are urged to contact a parent, trusted adult, or law enforcement, since the situation will only worsen. The FBI was able to quickly identify Abrahams after a victim quickly reported his extortion attempts. As always, computer users are warned to ensure their passwords are difficult for others to guess, avoid opening unverified attachments, and use reliable anti-virus software with updated definitions. Lastly, computer users should cover their webcams when they are not in use.
In previous sextortion cases investigated by the FBI and prosecuted by the United States Attorney's Office, a Glendale man was sentenced in December to five years in prison (see: http://www.justice.gov/usao/cac/Pressroom/2013/142.html), and an Orange County man received a six-year prison term in 2011 (see: http://www.justice.gov/usao/cac/Pressroom/2011/123.html).
Release No. 14-031
Springfield Engineer Pleads Guilty to Fraud ConspiracyRead the Press Release
Springfield, Ill. – A sentencing date has been set in July for a Springfield, Ill., engineer, Jeremy L. VanScyoc, who has pleaded guilty to participating in a scheme to defraud the Illinois Environmental Protection Agency. VanScyoc, 37, of the 400 block of Elle Court, waived indictment and pled guilty on Mar. 10, 2014, to an information filed by the U.S. Attorney’s Office charging him with one count of conspiracy to commit mail fraud. VanScyoc appeared before U.S. District Judge Sue E. Myerscough. Sentencing is scheduled on Jul. 21, 2014.
During court hearings and in court documents, VanScyoc admitted that after he joined Environmental Management, Inc. (EMI), in October 2001, he agreed to engage in a scheme to defraud IEPA. VanScyoc admitted his participation in the submission of false claims for reimbursement to IEPA through the Leaking Underground Storage Tank fund, known as the LUST fund, which is administered by IEPA. These false claims were submitted from October 2001 through Nov. 27, 2012, for services not rendered or not rendered to the extent claimed and false claims represented as ‘actual costs’ which in fact, were inflated in excess of the true cost of the product or services.
EMI, Inc. is an environmental consulting firm located at 1154 North Bradfordton Road, in Springfield. VanScyoc joined EMI in late October 2001 and obtained a small ownership interest in 2007. One of EMI’s primary business activities was the remediation of property contaminated by petroleum leaks from underground storage tanks.
In a separate but related case, in October 2013, a federal grand jury indicted three individuals who have served or currently serve as EMI officers: Eric M. Andrews; Joel C. Andrews; and Michael R. Keebler. According to the indictment, from at least 1997 until
September 2006, Joel Andrews was the president of EMI; in or about September 1999, Eric Andrews became an officer with EMI; and on or about Apr. 1, 2001, Keebler joined the firm and became an officer in 2003. On or about Sept. 30, 2006, Joel Andrews sold the business and Keebler became the majority owner and EMI president. The indictment charges the three men with one count of conspiracy to commit mail fraud and 10 counts of mail fraud.A status conference is scheduled on Apr. 28, 2014, for the three defendants. The indictment of Eric and Joel Andrews and Keebler seeks a personal money judgment against the three defendants, jointly and severally, of at least $13.6 million, which would represent the amount of the net proceeds obtained as a result of the alleged offenses.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
The U.S. EPA has a cooperative agreement with the state of Illinois in which IEPA and the Illinois State Fire Marshal regulate the use, maintenance and removal of petroleum underground storage tanks. The State Fire Marshal administers the preventative and permitting aspects of the program which regulates daily operation and maintenance of underground storage tank systems, including oversight for tank installation and removals. If there is a spill or leak from an underground storage tank, however, IEPA is responsible to oversee the cleanup investigation and to supervise the corrective action. IEPA also administers the state’s LUST fund. The State of Illinois imposes taxes and fees on gasoline sales which are added to the LUST fund to assist owners of contaminated sites to clean up the property.
During VanScyoc’s plea hearing and in court documents, VanScyoc admitted that on multiple occasions between Oct. 29, 2001, and Nov. 27, 2012, he agreed with others to submit fraudulent invoices to the IEPA LUST fund. These invoices were represented to be the ‘actual cost’ of work performed, when, in fact, the claims were in excess of the actual costs incurred by EMI or were otherwise inflated. VanScyoc further admitted that he created or modified invoices to make it appear as if invoices were submitted by subcontractors. These invoices exaggerated the work performed, the actual cost of the work, or both.
For the offense of conspiracy to commit mail fraud, the maximum statutory penalty is five years in prison, and a $250,000 fine or twice the amount of pecuniary gain or loss to the victim. For each count of mail fraud, the statutory penalty is up to 20 years in prison.
The charges are the result of an investigation by the U.S. Environmental Protection Service, Criminal Investigation Division, the Illinois Environmental Protection Agency and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Patrick D. Hansen.Spokane Man Sentenced to 5 Years in Federal Prison for Possessing Firearm and AmmunitionRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jacob L. Peckham, age 25, of Spokane, Washington, was sentenced today for being a previously convicted felon in possession of a firearm and ammunition. Chief United States District Court Judge Rosanna Malouf Peterson sentenced Peckham to a five-year term of imprisonment and a three-year term of court supervision following release from Federal prison.
According to information disclosed during court proceedings, while on routine patrol on June 18, 2013, a Spokane Police Department officer observed Peckham riding a bicycle at the intersection of Empire and Cincinnati Streets. At the time, Peckham was the subject of three outstanding arrest warrants. As the officer pursued Peckham in his patrol car, he observed Peckham abandon his bicycle and backpack, and flee on foot. The officer apprehended Peckham a short distance away and arrested him. A Spokane Police Department sergeant searched Peckham incident to arrest and recovered one round of .38 caliber ammunition in Peckham's right front pants pocket. Members of the Spokane Police Department's Patrol Anti-Crime Team (PACT) arrived and recovered the bicycle and backpack. PACT members searched the area where Peckham had fled, suspecting he discarded a firearm. An officer found a fully-loaded Smith & Wesson, model 19, .357 caliber revolver in foliage approximately ten feet away from where Peckham had abandoned his backpack. When officers told Peckham they found a firearm, Peckham blurted, "Man, I'm carrying that for protection." Peckham was charged with being a previously convicted felon in possession of a firearm and ammunition and he pleaded guilty to that crime on December 13, 2013.
Michael C. Ormsby said, "Prosecuting firearms-related crimes continues to be a priority for the United States Attorney's Office for the Eastern District of Washington. Previously convicted felons should be aware that there are serious criminal penalties connected with possessing a firearm and ammunition and that this Office is committed to prosecuting aggressively firearm-related cases in the Eastern District of Washington."
This case was investigated by the Spokane Police Department, Spokane Police Department Patrol Anti-Crime Team, and Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-00156-RMP
Speedbump ConvictionsRead the Press Release
Defendant Counts(s) Charged Disposition Sentence John Savage
5:12-CR-351-1F Counts 1, 5, 6, 7, 8, and 9 of Indictment and Counts 1 and 2 of Superseding Information 09/03/2013:
Pled guilty to Counts 1 and 2 of Superseding Information. Bureau of Prisons 300 months on Count 1 and 60 months consecutive on Count 2 - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $200.00 - No Fine - Restitution $2,479.00 joint and several Candy Medlin
5:12-CR-351-2F 1, 5, 6, 7, and 1003/12/2013:
Bureau of Prisons 240 months - Supervised Release LIFE - Special Assessment $100.00 - Fine $9,700.00 interest waived - Restitution $2479.00 joint and several interest waived Larry Medlin
Pled guilty to Count 1.
5:12-CR-351-3F 1 and 11 07/01/2013:
Pled guilty to Count 1. Bureau of Prisons 90 months - Supervised Release LIFE - Special Assessment $100.00 - Fine $6,800.00 interest waived - No Restitution Allen Bass
5:12-CR-351-4F 1 and 1201/28/2013:
Bureau of Prisons 113 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - No Restitution Larry Barefoot
Pled guilty to Count 1.
5:12-CR-351-5F 1 and 1303/11/2013:
Bureau of Prisons - 121 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - No Restitution J.R. Thornton
Pled guilty to Count 1.
5:12-CR-351-6F 1 and 1401/28/2013:
Bureau of Prisons 144 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - No Restitution Jamie Hunt
Pled guilty to Count 1.
5:12-CR-351-7F 1, 2, and 1503/12/2013:
Bureau of Prisons 110 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - No Restitution George Myron Adams
Pled guilty to Count 1.
5:12-CR-351-8F 1, 5, 6, 7, and 16 09/03/2013:
Pled guilty to Count 1. Bureau of Prisons 188 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - Fine $7,300.00 - Restitution $2,479.00 joint and several Teresa Darden
5:12-CR-351-9F 1, 3, and 1701/28/2013:
Bureau of Prisons 240 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - Restitution $952.38 Steven McCall
Pled guilty to Count 1.
5:12-CR-351-10F 1, 4, and 18 07/01/2013:
Pled guilty to Count 1. Bureau of Prisons 191 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - Fine $9,900.00 interest waived - No Restitution Keith Britt
5:12-CR-351-11F 1 and 1901/28/2013:
Bureau of Prisons 87 months - Supervised Release 5 years - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine Christina Britt
Pled guilty to Count 1.
5:12-CR-351-12F 1 and 2001/28/2013:
Bureau of Prisons 81 months - Supervised Release 5 years - Special Assessment $100.00 - No Fine - No Restitution Ryan Meyers
Pled guilty to Count 1.
5:12-CR-351-13F 1 and 21 09/03/2013:
Pled guilty to Count 1. Bureau of Prisons 300 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - Restitution $952.38 joint and several Jackie Joyner
5:12-CR-351-14F 1 and 2201/28/2013:
Bureau of Prisons 113 months-Supervised Release 5 years – Special Conditions of Release Imposed – Special Assessment $100.00 – No Fine –No Restitution Shannon Kidwell
Pled guilty to Count 1.
5:12-CR-351-15F 1 and 2303/11/2013:
Bureau of Prisons 126 months - Supervised Release 5 years - Special Assessment $100.00 - No Fine - No Restitution Jamie Denning 1
Pled guilty to Count 1.
01/09/2014:
126 months custody, 5 years supervised release01/28/2013:
Bureau of Prisons 126 months - Supervised Release 5 years - Special Assessment $100.00 - No Fine - No Restitution
Pled guilty to Count 1 01/30/2014:
132 months custody, lifetime supervised releaseSioux Falls Man Receives Four Life Sentences for Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Sex Trafficking of a Child, Conspiracy to Engage in Sex Trafficking of a Child, and two counts of Sex Trafficking by Means of Force, Fraud, or Coercion was sentenced on March 17, 2014, by U.S. District Judge Karen E. Schreier.
Mohammed Sharif Alaboudi, age 45, was sentenced to life imprisonment on each of the four counts, and a $400 assessment to the Federal Crime Victims Fund.
On December 5, 2013, Alaboudi was convicted by a federal jury for Sex Trafficking of a Child, Conspiracy to Engage in Sex Trafficking of a Child, and two counts of Sex Trafficking by Means of Force, Fraud, or Coercion.
Alaboudi is the third person in the past four years to receive a life sentence for human trafficking in the District of South Dakota.
In 2011, the Sioux Falls Police Department (SFPD) Street Crimes Unit began investigating a criminal organization operating in and around Sioux Falls. Witnesses identified several individuals they claimed had been selling narcotics and prostitutes. In January 2012, the SFPD requested federal assistance, and a team consisting of the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations, the Federal Bureau of Investigation, the SFPD, and the South Dakota Division of Criminal Investigation began investigating the case.
Investigators discovered that Alaboudi was living in a one-bedroom, upstairs apartment in a house several blocks from downtown Sioux Falls. Alaboudi lured multiple girls and young women to his home, where he provided drugs and alcohol. Then he would force them into engaging in sex acts with him and others who arrived at his residence, paying them with money and drugs. Witnesses described being drugged to the point of being unable to defend themselves. Alaboudi also used severe violence and threats of violence to coerce his victims into engaging in sex acts. Multiple witnesses described being beaten with objects and being threatened with further violence if they did not comply.
“Mr. Alaboudi ran a house of horror where girls and young women were assaulted and forced to engage in sex acts with strangers,” said Johnson. “This sentence ensures that he will no longer be able to profit from the pain and misery he inflicted on the most vulnerable women and children in our community.”
This case was investigated by the SFPD, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorneys Kevin Koliner and Jeff Clapper prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Alaboudi was remanded to the custody of the U.S. Marshals Service.
Shreveport Fire Department Dispatcher Arraigned on Child Pornography ChargesRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that an initial appearance and arraignment hearing was held for Shreveport Fire Department Dispatcher Stephen St. John, 45, of Shreveport, before Magistrate Judge Mark L. Hornsby for possessing and receiving child pornography. He pleaded not guilty to both charges and was released on a $25,000 unsecured bond.
According to the indictment, St. John knowingly received child pornography on a computer on January 29, 2013. The images were video files depicting minors and prepubescent children engaging in sexually explicit conduct and lascivious exhibition of the genitals and pubic area. Additionally, images of child pornography were found in his possession on a computer and computer disks on September 5, 2013.
The defendant faces up to 20 years in prison for one count of possession of child pornography and from five to 20 years in prison for one count of receiving child pornography. He faces three years of supervised release for each count. He also faces a $250,000 fine for each count and forfeiture of the equipment used to acquire, store and view the child pornography.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The U.S. Postal Inspection Service, Homeland Security Investigations, U.S. Marshals Service and the Louisiana State Police investigated the case. Assistant U.S. Attorney Cytheria D. Jernigan is prosecuting the case.
Ship's Purser Convicted of EmbezzlementRead the Press Release
NORFOLK, Va. – Ismael Cuario Estrada, 66, was convicted today of embezzlement, after a four-day jury trial.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Charles T. May Jr., the Naval Criminal Investigative Service (NCIS) Acting Executive Assistant Director for Atlantic Operations, made the announcement after the verdict was accepted by Senior United States District Judge Henry Coke Morgan, Jr.
Estrada faces a maximum penalty of ten years and a fine of $250,000.00 when he is sentenced on June 25, 2014.Estrada was indicted on November 6, 2013. According to court records and the evidence presented at trial, Estrada is a retired Navy enlisted sailor who joined the Military Sealift Command (MSC) as a ship’s purser. In late 2006, he became a crewman on the USNS Arctic and remained there until March 30, 2013. In the early part of 2013, Estrada was ordered to become the purser on another USNS ship, the Laramie, whose purser was two months past his time limit on board. Estrada attempted to remain on the Arctic, but was ordered to leave for the Laramie. Contrary to the Captain’s orders, Estrada did not do the normal cash verification and placement of the ship’s money in the bank. Instead, he only did the cash verification and left the money in the ship’s vault. A cash verification on April 30, 2013 found that approximately $350,118 was missing from the $691,000 that should have been in the safe in the purser’s office, based on a cash verification that had been performed a month earlier. Estrada was then ordered off the Laramie and returned to Norfolk where he was eventually arrested and indicted for embezzlement.
This case was investigated by Naval Criminal Investigative Service. Assistant United States Attorney Steve Haynie and Special Assistant United States Attorney Christopher George are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Sex Offender Sentenced to 15 Years for 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 Grandview, Mo., man who is a convicted sex offender was sentenced in federal court today for receiving child pornography over the Internet.
Robert E. Shepherd, 41, of Grandview, was sentenced by U.S. District Judge Dean Whipple to 15 years and eight months in federal prison without parole.
Shepherd, who pleaded guilty on May 15, 2013, was on state parole at the time of the federal offense after being convicted on state charges of statutory rape and statutory sodomy in Cass County in 2000 and of statutory sodomy in Clay County in 1999. He absconded from state parole during the federal criminal investigation and was a fugitive from justice for almost four years. Shepherd was arrested at the Mexican border and his parole revoked in December 2011, for which he served a year in state prison before being indicted and taken into federal custody.
Shepherd brought his computer to a computer repair facility in April 2008. Approximately a week later, a technician at the facility discovered at least one image of child pornography on the computer. The technician notified law enforcement officers, who retrieved the computer and obtained a search warrant for Shepherd’s residence. Officers seized additional computers and electronic media at Shepherd’s residence. Two videos of child pornography were discovered on the computers.
This case was being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Grandview, Mo., Police Department and the Lee’s Summit, 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."Service Member at U.S. Naval Air Station in Lemoore Sentenced to 10 Years in Prison for Sex Trafficking of A MinorRead the Press Release
FRESNO, Calif. — Charles Ray Benavidez, 33, an Aviation Ordnanceman (Second Class) stationed at the United States’ Naval Air Station in Lemoore, was sentenced today by United States District Judge Anthony W. Ishii to 10 years for sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, in April 2013, Benavidez knowingly recruited a 17-year-old female to engage in commercial sex acts in Kings and Tulare Counties. Benavidez was charged with sex trafficking of a minor and has been in federal custody since May 23, 2013. He pleaded guilty to the child sex trafficking charge on January 6, 2014.
“For most people, criminal acts against children are impossible to comprehend, but for the children who have been sexually exploited, these crimes are all too real,” said Mike Prado, resident agent in charge of HSI Fresno. “The physical and emotional scars are difficult, if not impossible, to outgrow. HSI will continue to work tirelessly to ensure child predators and sex traffickers receive the justice they deserve.”
This case was the product of an investigation by the Central California Internet Crimes Against Children Task force, specifically the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Naval Criminal Investigative Service (NCIS), as well as the Porterville, Tulare and Lemoore police departments. Assistant United States Attorney Brian W. Enos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet Safety.
Second Defendant Pleads Guilty in Scheme to Use Fresno Trucking Front to Ship Cocaine to CanadaRead the Press Release
FRESNO, Calif. —Vicente Rivaz-Felix, 28, an undocumented alien who was living in Los Angeles, pleaded guilty today to conspiracy to distribute and possess with the intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Rivaz-Felix’s co-defendants set up a Fresno trucking company intending that cocaine would be concealed in legitimate cargo to be shipped to Canada. On September 21, 2012, Rivaz-Felix delivered eight kilograms of cocaine to a courier who had been sent to Los Angeles by his co-defendants. Law enforcement seized that cocaine and followed Rivaz-Felix back to his Los Angeles residence. A search warrant was served there on September 21, 2012, and 40 more kilograms of cocaine were seized.
This case is the product of an investigation by the Organized Crime Drug Enforcement Task Force, the Drug Enforcement Administration, Fresno Police Department, and the Fontana and Vernon Police Departments. Assistant United States Attorney Kevin Rooney is prosecuting the case.
Rivaz-Felix has been held in custody without bail since his arrest on September 21, 2012. He is scheduled to be sentenced by Judge Anthony W. Ishii on June 2, 2014. Rivaz-Felix faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Santostee Man Pleads Guilty to Assaulting Navajo TeenagerRead the Press Release
ALBUQUERQUE – Jayson Gustina, 24, of Sanostee, N.M., pleaded guilty this morning to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Gustina was arrested on Oct. 23, 2013, on a criminal complaint charging him with assault resulting in serious bodily injury and aggravated sexual abuse. On Jan. 19, 2013, Gustina was indicted and charged with assault resulting in serious bodily injury and abusive sexual contact. According to court filings, Gustina assaulted the victim, a 16-year-old Navajo girl, and attempted to rape her on Aug. 21, 2013, in Shiprock, N.M.
In entering his guilty plea, Gustina admitted assaulting the victim on Aug. 21, 2013. He also acknowledged that the victim suffered severe bruising, swelling, and a fractured cheek bone as a result of the assault.
Gustina has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Gustina faces a maximum penalty of ten years in prison.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
San Joaquin County Man Arrested at Canadian Border on Charges of Attempting to Provide Material Support to Foreign Terrorist OrganizationRead the Press Release
SACRAMENTO, Calif. — In the early hours of the morning, Nicholas Teausant, 20, of Acampo, Calif. was arrested near the Canadian border, in Blaine, Wash. He was charged today in a complaint containing a single count of attempting to provide material support to a foreign terrorist organization, United States Attorney Benjamin B. Wagner announced.
According to the complaint, Teausant traveled to the Canadian border with the intent of continuing to travel to Syria to join the Islamic State of Iraq and Syria, a foreign terrorist organization more widely known as al-Qaida in Iraq.
This case is the product of an investigation by the Federal Bureau of Investigation and the Modesto Police Department and San Joaquin Sheriff’s Office, who are members of the Modesto/Stockton Joint Terrorism Task Force, with significant assistance from U.S. Customs and Border Protection. Assistant United States Attorneys Jean M. Hobler and Jason S. Hitt are prosecuting the case in conjunction with Trial Attorney Andrew Sigler of the National Security Division of the U.S. Department of Justice.
Teausant is expected to make his initial appearance today in the United States District Court for the Western District of Washington at 2 p.m.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, Teausant faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Complaint
Salina Man Pleads Guilty to Federal Gun and Drug ChargeRead the Press Release
TOPEKA, KAN. – A Salina man today pleaded guilty today to a federal gun and drug charge, U.S. Attorney Barry Grissom said.
Stephen M. Smith, Jr., 45, Salina, Kan., pleaded guilty to one count of unlawful possession of a firearm in furtherance of drug trafficking. In his plea, he admitted that he possessed a .40 caliber handgun when he was arrested Sept. 6, 2013, at his residence in Salina. Police, who were called to the residence by a Kansas State Parole officer, seized a distribution quantity of methamphetamine and the gun.
Sentencing is set for June 9. Both sides have agreed to recommend a sentence of five years in federal prison. Grissom commended the Kansas Department of Corrections, the Salina Police Department, the I-135/I-70 Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Mike Warner for their work on the case.Ronnie Jackson Faces up to Life in Prison After Leading Robbery Spree Through Shelby CountyRead the Press Release
Memphis, TN – Ronnie Jackson, Jr., 29, of Memphis, TN, faces up to life in prison following his conviction on March 13, 2014, by a federal jury on 12 counts related to a series of robberies in and around Shelby County, announced U.S. Attorney Edward L. Stanton III.
According to the indictment and facts presented in open court, Jackson and his accomplices robbed three Dollar General Stores, a Family Dollar Store, and two Walgreens drug stores in April and May of 2012. During the last robbery, Jackson and a female accomplice went into the Walgreens at 824 West Poplar Street, Collierville, TN, to case the store. After Jackson and his female accomplice returned to their getaway vehicle, two male accomplices entered the store, forcing approximately 14 customers and five employees to the floor at gunpoint. They ordered the manager to open the safe and took more than $6,000.
One of the victims of the robbery managed to dial 911, and Collierville Police converged on the scene, arriving in time to witness one of the male accomplices attempting to enter the getaway vehicle. Jackson and his female accomplice were taken into custody and the male accomplices were apprehended after a brief foot pursuit.
Jackson was convicted on six counts of robbing a business engaged in interstate commerce (also known as “Hobbs Act” robberies), and six counts of using a firearm during a crime of violence. Each robbery carries a penalty of up to 20 years. The first firearms charge carries a penalty of seven years to life in prison and each of the other firearm charges carries a penalty of 25 years to life in prison. All firearms charges must be served consecutively and there is no parole in the federal system. He will be sentenced on June 19, 2014, at 2:00 p.m., before U.S. District Judge S. Thomas Anderson.
This case was investigated by the Safe Streets Task Force, specifically by the Federal Bureau of Investigation, the Memphis Police Department, and the Collierville Police Department. Assistant U.S. Attorney David Pritchard and Special Assistant U.S. Attorney Bo Summers represented the government.Port Arthur Businessman Guilty of Disaster Loan FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The former owner of a Port Arthur, Texas business has pleaded guilty to disaster loan fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kenneth W. Matthews, 58, of Fort Pierce, Florida pleaded guilty to conspiracy to defraud the Small Business Administration of disaster loan funds on Mar. 12, 2014, before U.S. Magistrate Judge Zachary Hawthorn.
According to information presented in court, from January 2008 to May 2010, Matthews conspired with his general contractor and subcontractor to submit falsely inflated invoices and checks for repair work done after Hurricanes Humberto and Ike in order to obtain low interest disaster repair loans extended by the Small business Administration. Matthews, the former owner of MegaBowl in Port Arthur, received SBA disaster loan proceeds of $750,000 after Hurricane Humberto and $760,000 after Hurricane Ike. After receiving the loan disbursements based upon the false invoices, the general contractor and a subcontractor would receive from Matthews a lesser amount than invoiced for the work actually done, or would kickback to Matthews a portion of the loan disbursement paid to them. The loan funds were disbursed solely for repairs and other expenses associated with the hurricanes and were not allowed for other general business or personal use. Matthews agreed to pay criminal restitution of $500,000 to the SBA and remains civilly liable for all loan proceeds.
Matthews faces up to 5 years in federal prison. A sentencing date has not been set.
In September 2005, the U.S. Department of Justice created the Hurricane Katrina Fraud Task Force, designed to deter, investigate and prosecute disaster-related federal crimes such as charity fraud, identity theft, procurement fraud and insurance fraud. The Hurricane Katrina Fraud Task Force includes members of the FBI, the Federal Trade Commission, the U.S. Postal Inspection Service, and the Executive Office for United States Attorneys, among others.
This case is being investigated by the Small Business Administration-OIG and the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Robert L. Rawls. ####Physician Sentenced to 57 Months in Federal Prison on Health Care Fraud ConvictionRead the Press Release
Co-defendants Who Were Convicted at Trial are Awaiting Sentencing
on Conspiracy and Health Care Fraud ConvictionsDALLAS — Dr. Nicolas Alfonso Padron, 54, of Garland, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 57 months in federal prison and ordered to pay $9,484,111 in restitution to the Centers for Medicare and Medicaid Services (CMS). Dr. Padron pleaded guilty in September 2013 to one count of count of conspiracy to commit health care fraud stemming from his role as medical director of a physician house-call company, A Medical House Calls (A Medical). Dr. Padron has been in custody since his arrest in June 2012. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Two co-defendants in the case, Lawrence Dale St. John, 67, and his son, Jeffrey Dale St. John, 42, both of Grand Prairie, Texas, were each convicted at trial in October 2013 on one count of conspiracy to commit health care fraud and 13 counts of health care fraud related to their operation of A Medical, which they owned and operated. Each count carries a maximum statutory sentence of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. Both are in custody and sentencing hearings are scheduled for March 31, 2014.
Dr. Padron joined A Medical as its medical director in December 2009. A Medical, which was also known as A+ Medical House Calls and ANM Physician House Calls, provided physician visits to Medicare beneficiaries in their homes, rather than at a doctor’s office. A Medical had locations in Mesquite, Texas; Dallas; and Carrollton, Texas. Its primary purpose was to certify and re-certify Medicare beneficiaries for home health services, regardless of the true condition of the patient.
Once A Medical established a Medicare beneficiary for physician home-visit services, it would submit billing for fraudulent care plan oversight claims. The company did not provide primary care physician services to Medicare beneficiaries.
From May 2010 to January 2012, the defendants conspired together and with others to defraud the Medicare program. A Medical, at the direction of Lawrence and Jeffrey St. John, submitted claims to Medicare using Dr. Padron’s unique Medicare number, with Dr. Padron’s permission, regardless of the claim’s merit. The defendants conspired together to bill Medicare for care plan oversight by Dr. Padron for numerous beneficiaries when Dr. Padron was out of town, including dates when he was out of the country and on a cruise.
In total, the defendants billed taxpayers for $1.4 million of services that were either not medically necessary or not rendered at all. Through the fraudulent certifications, Medicare was billed an additional $9.7 million by home health agencies.
In a separate case, Dr. Padron entered a guilty plea to one count of conspiracy to distribute a controlled substance stemming from his operation of Padron Wellness Clinic, a “pill-mill,” that he operated in Dallas. A sentencing date has not been set in this case.
The investigation was conducted by U.S. Department of Health and Human Services - Office of Inspector General, the FBI and the Medicaid Fraud Control Unit of the Office of the Attorney General of Texas. Assistant U.S. Attorneys Kate Pfeifle and J. Nicholas Bunch are in charge of the prosecution.
Pasco County Teacher Arrested for Enticement of MinorsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that David Wendel Thompson (48, Seffner) was charged by a criminal complaint and arrested on Friday, March 14, 2014 for the enticement of minors. Thompson made his initial appearance today in Miami, Florida and is currently being detained. If convicted, he faces a mandatory minimum penalty of 10 years, up to a maximum penalty of life in federal prison.
Thompson is a teacher at Centennial Middle School in Dade City, Florida.
According to the criminal complaint, Thompson used Facebook in an attempt to knowingly persuade two minor females, from the country of Belize, to engage in sexually explicit conduct. In February 2014, Thompson had sexually explicit conversations with a 13 year old and a 15 year old female in Belize. In those conversations, he discussed flying to Belize to meet the minors and engage in sexual activity with them. On March 14, 2014, Thompson took a flight from Tampa, Florida to Belize City, Belize, with a layover in Miami, Florida. He was refused entry into Belize and arrested in the Miami International Airport.
A criminal complaint 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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.