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23 April 2014
Man Sentenced to 30 Years in Prison for Brutal Manslaughter of Another Man on Nevada Indian Colony in December 2011Read the Press Release
RENO, Nev. – A man who killed another man with a shotgun on the Battle Mountain Indian Colony in Lander County, Nev., in December 2011 was sentenced on April 21, 2014, to 30 years in federal prison, announced United States Attorney Daniel G. Bogden.
Daniel James Draper, 48, who was convicted by a jury in January 2014 of voluntary manslaughter and use of a firearm during a crime of violence causing death, was sentenced by U.S. District Judge Robert C. Jones. The sentence was the maximum allowed under federal law for those offenses.
“The 30-year prison sentence imposed against defendant Draper cannot bring Linford Dick back or undo any of the violent criminal acts inflicted upon him,” said United States Attorney Bogden. “Hopefully, the verdicts and sentence provides some measure of justice to the victim, his family, and the Battle Mountain Indian Colony community. We will continue our outreach and law enforcement efforts in an attempt to make our tribal communities safe.”
The case was investigated by the FBI, the Bureau of Indian Affairs, the Lander County Sheriff’s Office, and the Battle Mountain Indian Colony Police Department, and prosecuted by Assistant United States Attorneys Megan Rachow and William R. Reed
According to the court records, on Dec. 20, 2011, at approximately 1:00 a.m., Draper smashed a front window and entered a home on the Indian Colony, and shot and killed the victim, Linford Dick. Draper also used the shotgun to strike and beat the victim in the head. Two other women and a child were in the home at the time.Lower Brule Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Daniel Berry, age 25, was indicted on April 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2012, and January 31, 2012, Berry knowingly engaged in and attempted to engage in a sexual act with the victim, who had not attained the age of 16 years old.
The charge is merely an accusation and Berry is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Berry was released on bond pending trial. A trial date has not been set.
Long-Time Nigerian Fugitive Convicted of Importing Heroin into the U.S.Read the Press Release
HOUSTON - Koyode Lawrence aka “papa,” who recruited college students in Nigeria to transport heroin into the U.S., has pleaded guilty to conspiracy to import a controlled substance, announced United States Attorney Kenneth Magidson.
The investigation was initiated Feb. 18, 2001, following the arrests of two co-defendants at Bush Intercontinental Airport (IAH) as they attempted to internally smuggle 1498 grams of heroin into the country from Nigeria. Both men were determined to be working for Lawrence, 45, of Lagos, Nigeria.
Lawrence headed the organization in which couriers would swallow heroin filled pellets in Nigeria, enter the U.S. and expel the pellets upon arrival at their final destination.
Lawrence recruited carriers who had dual U.S. and Nigerian citizenship because Lawrence believed them to be less suspicious. Generally, most were born in the U.S. when their parents were attending school and moved back to Nigeria while still children. Most of the carriers were recruited while attending college in Nigeria.
Individuals called “strikers” recruited potential couriers and brought them to Lawrence’s house in Lagos, where they were tested for their internal smuggling ability. Some of the couriers required extensive training to develop the ability to swallow between 700 and 800 grams of heroin filled pellets at a time. The couriers were paid between $6,000 and $15,000 per trip.
Lawrence accompanied carriers to a hotel in Ghana where they were given the heroin pellets to swallow. The carriers usually then flew from Ghana to Amsterdam and then to an international airport in the U.S., frequently arriving at IAH. Upon arrival, they were met by a manager who would escort them back to an apartment in Chicago, where they were instructed to expel the pellets. Carriers would often stay in Chicago for several days until arrangements could be made for their return.
Between March 2000 and November 2002, 14 heroin arrests were subsequently linked to Lawrence with multiple historical runs further attributed to him. Throughout the conspiracy, the Lawrence organization is responsible for importing at least 29 kilograms of heroin into the U.S. from Nigeria.
Lawrence fought his extradition from Nigeria for nearly 10 years and was finally brought to the U.S. in the latter part of 2013.
U.S. District Judge Nancy F. Atlas accepted the plea today and has set sentencing for July 9, 2014, at which time Lawrence faces a mandatory minimum of 10 years and up to life imprisonment as well as a potential $5 million fine. He will remain in custody pending that hearing.
The investigation leading up to the charges was conducted by Homeland Security Investigations and Customs and Border Protection. Assistant United States Attorney Stuart A. Burns is prosecuting the case.
Kingston Man Pleads Guilty to Federal Drug ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Michael Hughes, age 32, of Kingston, Pennsylvania, pleaded guilty to a charge of possession of marijuana, a controlled substance, with intent to distribute yesterday before Senior U.S. District Judge Edwin M. Kosik in Scranton. The offense occurred in April 2013 when Kingston Police officers, with the assistance of ATF agents initiated a traffic stop on Hughes based on an outstanding warrant. During the search of the vehicle, investigators located a quantity of marijuana. Hughes was charged in a criminal information filed on April 4, 2014.
This case was the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kingston Police Department.
Prosecution is assigned to Assistant United States Attorney Amy C. Phillips.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine, and a 3 year term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Kansas Man Sentenced for Attempted Bank Robbery after Shooting, High-speed ChaseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas man was sentenced in federal court today for an attempted bank robbery in Trimble, Mo., that was foiled when he was shot by a bank employee before leading law enforcement officers on a high-speed chase.
Michael S. Oliva, 36, of Kansas, was sentenced by U.S. District Judge Gary A. Fenner to five years and three months in federal prison without parole.
On Nov. 25, 2014, Oliva pleaded guilty to attempted bank robbery.
Oliva entered First Security Bank, 202 U.S. Hwy. 169, Trimble, on March 1, 2013. Oliva pulled on a black mask, pointed what appeared to be a handgun (but was later found to be a realistic plastic replica) at a bank employee and ordered her to give him the money in her teller drawer. According to court documents, the employee instead dropped to the floor behind the teller stations and began crawling toward another bank employee, shouting for help. As she was crawling, she saw Oliva lean over the teller station and point his handgun at her. She grabbed a plastic trash can and tossed it over the teller counter toward Oliva; however, Oliva had moved around the end of the teller stations and was directly behind her.
Another bank employee, who was in an office, heard the shouts for help. He saw Oliva pointing a handgun at the first bank employee and retrieved a Smith & Wesson .357 revolver. He fired two rounds at Oliva, striking him in the jaw. Oliva fled from the bank, jumped in his car and left; no money was taken during the attempted robbery.
According to court documents, after Oliva left the bank, the first employee got up from the floor and saw him staggering behind a nearby building. She called 9-1-1. Oliva had left a sizable trail of blood for about 150-200 feet that led to a handicapped parking space in the nearby building’s parking lot.
Trimble police officers located Oliva’s Dodge Stratus and began pursuing him at speeds approaching 100 miles per hour. Officers deployed spike strips and the vehicle stopped. When officers approached the car, Oliva got out of the vehicle and asked, “You guys going to let me die?” Officers noted that Oliva appeared to have suffered a gunshot wound to the jaw or chin and there was a large amount of blood on Oliva and in his vehicle.
Oliva was placed under arrest and transported to an emergency room for medical treatment.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Trimble, Mo., Police Department, the Clinton County, Mo., Sheriff’s Department and the FBI.KCK Man Sentenced to 15 Years for Illegal FirearmsRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was sentenced in federal court today for illegally possessing two firearms.
Gregory E. Mitchell, 41, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Mitchell was sentenced as an armed career criminal due to his prior felony convictions.
On Dec. 10, 2013, Mitchell pleaded guilty to being a felon in possession of firearms. Mitchell admitted that he was in possession of a Smith & Wesson .38-caliber revolver and a Taurus .38-caliber revolver with an obliterated serial number. Mitchell also pleaded guilty to being in possession of a firearm with an obliterated serial number.
Mitchell was arrested on July 8, 2013, when his vehicle was stopped by Kansas City police officers. Mitchell was wearing a shoulder holster that contained the loaded Taurus revolver. The Smith & Wesson revolver was found in his vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mitchell has two prior felony convictions for burglary and two prior felony convictions for robbery.
This case is being prosecuted by Assistant U.S. Attorney Justin Davids. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Japanese Automotive Parts Manufacturer Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. CarsRead the Press Release
Showa Corp., an automotive parts manufacturer based in Saitama, Japan, has agreed to plead guilty and to pay a $19.9 million criminal fine for its role in a conspiracy to fix prices and rig bids for pinion-assist type electric powered steering assemblies installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in the U.S. District Court for the Southern District of Ohio in Cincinnati, Showa engaged in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to rig bids for, and to fix, stabilize and maintain the prices of, certain pinion-assist type electric powered steering assemblies sold to Honda Motor Co. Ltd. and certain of its subsidiaries in the United States and elsewhere. In addition to the criminal fine, Showa has agreed to cooperate with the department’s ongoing investigation. The plea agreement will be subject to court approval.
“Today’s guilty plea marks the 27th time a company has been held accountable for fixing prices on parts used to manufacture cars in the United States,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division and its law enforcement partners remain committed to prosecuting illegal cartels that harm U.S. consumers and businesses.”
According to the charge, Showa and its co-conspirators carried out the conspiracy through meetings, conversations and communications in which they discussed and agreed upon bids and price quotations on pinion-assist type electric powered steering assemblies to be submitted to Honda. Showa then submitted quotations in accordance with those agreements and sold pinion-assist type electric powered steering assemblies at collusive and noncompetitive prices. Showa and its co-conspirators monitored adherence to the agreed-upon bid-rigging and price-fixing scheme. The conspirators kept their conduct secret by using code names and meeting at remote locations, among other things. Showa’s involvement in the conspiracy lasted from at least as early as 2007 until as late as September 2012.
Showa manufactures and sells pinion-assist type electric powered steering assemblies. These devices provide power to the steering gear pinion shaft from electric motors to assist the driver to more easily steer the automobile. Pinion-assist type electric powered steering assemblies include an electronic control unit and link the steering wheel to the tires but do not include the column, intermediate shaft, steering wheel or tires.
Including Showa, 27 companies and 24 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of $2.3 billion in criminal fines.
Showa Corp. is charged with price fixing and bid rigging in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office with assistance from the U.S. Attorney’s Office for the Southern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cincinnati Field Office at 513-421-4310.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Strong in Great Falls on April 18, 2014 and entering pleas of Not Guilty were:
- LLIAM MICHAEL LANCASTER, a 31-year-old resident of Louisville, Kentucky, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, LANCASTER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Missouri River Drug Task Force. PACER Case Reference: 14-03
- SUS PIMENTAL-LOPEZ, 22, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, PIMENTAL-LOPEZ faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 13-24
Appearing before U.S. Magistrate Ostby in Billings on April 21, 2014 and entering pleas of Not Guilty were:
- RRY DALE HILL, a 62-year-old resident of Billings, appeared on charges of being a felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, HILL faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-45
- DD JAMES NESIUS, a 33-year-old resident of Wheatland, Wyoming, appeared on charges of possession of stolen firearms. If convicted of the charge contained in the indictment, NESIUS faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-11
Appearing before U.S. Magistrate Ostby in Billings on April 22, 2014 and entering pleas of Not Guilty were:
- VID LEE BARNARD, JR. a 43-year-old resident of Billings appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, BARNARD faces life imprisonment, $10,000,000 in fines and 5 years imprisonment. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- VID LEE GOFFENA, a 46-year-old resident of Roundup, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, possession with intent to distribute methamphetamine, distribution of methamphetamine, conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, GOFFENA faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- RSTA ELAINE GOFFENA, a 38-year-old resident of Roundup, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, GOFFENA faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- RARDO LOPEZ MARTINEZ, a 38-year-old resident of Los Angeles, California, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, MARTINEZ faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- DY WILLIAM SIMPSON, a 25-year-old resident of Taft, California, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, SIMPSON faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- RIO ALBERT VILLEGAS, a 32-year-old resident of Los Angeles, California, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, VILLEGAS faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment Unsealed Charging Pennsylvania Man and Two Additional Individuals with Conspiracy to Illegally Export Restricted Chemical Laboratory Equipment to SyriaRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) and U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement announced today the unsealing of an indictment charging three individuals, including Ahmad Feras Diri, age 39, of London, United Kingdom, Harold Rinko, age 72, of Hallstead, Susquehanna County, Pennsylvania, and Moawea Deri, age 36, a Syrian citizen, and a firm with which Ahmad Feras Diri and Moawea Deri were associated, for their alleged involvement in a conspiracy to illegally export laboratory equipment, including items used to detect chemical warfare agents, from the United States to Syria, in violation of federal law.
The indictment alleges that federal legislation and export controls seek to shut down the supply chain used by the Syrian state to support terrorism and to develop and proliferate weapons of mass destruction, including chemical weapons. Pursuant to regulations of the U.S. Department of Commerce’s Export Administration, a license is required to export goods and services from the United States to Syria, other than limited and certain categories of humanitarian food and medicine.
According to U.S. Attorney Peter Smith, the indictment, returned by a Scranton grand jury on November 20, 2012, and sealed until today, charges the three individuals and the company with criminal conspiracy, wire fraud, illegal export of goods, money laundering, and false statements.
According to Homeland Security Investigations Philadelphia Special Agent in Charge (SAC) John Kelleghan, Commerce Department Office of Export Enforcement New York Field Office SAC Sidney Simon, and the United States Attorney’s Office, Ahmad Feras Diri was arrested by the Metropolitan Police in London on March 14, 2013, and is facing extradition to the United States in connection with the charges in the Middle District of Pennsylvania. Harold Rinko, of Hallstead, Pennsylvania, previously waived arraignment on the sealed indictment. The government has also filed a plea agreement with Rinko which is subject to the approval of the Court. Rinko, the owner-operator of Global Parts Supply, was allegedly engaged in the export business. Ahmad Feras Diri and Moawea Deri are brothers in the business of purchasing and transferring goods from the United States to Syria through a firm known as d-Deri Contracting & Trading. Moawea Deri, remains at large, and is considered a fugitive.
The indictment alleges that, from 2003 until the date of the indictment, the three men conspired to export items from the United States through third party countries to customers in Syria, without the required U.S. Commerce Department licenses.
According to the indictment, the conspirators prepared false invoices which undervalued and mislabeled the goods being purchased and listed false information as to the identity and geographic location of the purchasers of the goods. The indictment alleges that the items were to be shipped from the United States to Jordan, the United Arab Emirates and the United Kingdom, and thereafter transshipped to Syria.
According to the indictment the items allegedly included: a portable gas scanner used for detection of chemical warfare agents by civil defense, military, police and border control agencies; a handheld instrument for field detection and classification of chemical warfare agents and toxic industrial chemicals; a laboratory source for detection of chemical warfare agents and toxic industrial chemicals in research, public safety and industrial environments, a rubber mask for civil defense against chemicals and gases; a meter used to measure chemicals and their composition; flowmeters for measuring gas streams; a stirrer for mixing and testing liquid chemical compounds; industrial engines for use in oil and gas field operations; and a device used to accurately locate buried pipelines.
The case was investigated by HSI in partnership with the Department of Commerce, Office of Export Enforcement. “HSI will use all resources at its disposal to prevent sensitive and restricted technology from being exported to Syria though the black market,” said SAC Kelleghan. “No good comes of illegal exports to Syria during this time of gross misgovernment and civil strife, and HSI will do all in its power as the principal enforcer of export controls to ensure that sensitive technology doesn’t fall into the wrong hands in Syria. I applaud our colleagues at the Department of Commerce, along with our law enforcement counterparts in the United Kingdom, who helped us make this complex investigation a success.”
Special Agent In-Charge Simon cited the close cooperation of Federal law enforcement agencies throughout the case. “I commend our colleagues from HSI and the United Kingdom, and the U.S. Attorney’s Office, for their outstanding work with the Commerce Department on this case. Our special agents work tirelessly every day to pursue those who flout our export control laws and attempt to supply anyone with technology that threatens our national security. OEE will seek and arrest violators wherever located, worldwide, and we will continue to leverage our unique authorities as the only federal law enforcement agency exclusively dedicated to enforcing dual-use export violations,” he said.
The case is assigned to Assistant U.S. Attorney Todd K. Hinkley and Mariclaire Rourke, Trial Attorney with the Department of Justice, National Security Division, Counterespionage Section.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Four Defendants Sentenced in Stolen Identity Tax Refund Scheme Resulting in Millions of Dollars in Fraudulent ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that defendants Brandon Johnson, 29, of Miami Gardens, Henry Dorvil, a/k/a “D,” 35, of Hollywood, Ronald Gustave, 36, of Miami, and Marie Eleazard, a/k/a “Fanfan,” 32, of Miami were sentenced for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity.
Johnson was sentenced yesterday to 30 months in prison, to be followed by three years of supervised release, and was ordered to pay $74,050 in restitution. Dorvil was sentenced on April 17, 2014 to 54 months in prison, to be followed by three years of supervised release, and was ordered to pay $2,537,417 in restitution. Gustave was sentenced on April 17, 2014 to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay $544,054 in restitution. Eleazard was sentenced on April 9, 2014 to 25 months in prison, to be followed by two years of supervised release, and was ordered to pay $1,880,317.94 in restitution. Each of the defendants previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Co-defendants Dukens Eleazard, a/k/a “DK,” 33, of Pembroke Pines, Luckner St Fleur, a/k/a “Nene,” 32, of Miami, Jesse Lamar Harrell, 26, of Miramar, Corey Williams, 30, of Miami Gardens, and Ruth Cartwright, a/k/a “Princess,” 30, formerly of Plantation, each previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, 1028A(a)(1). Dukens Eleazard is scheduled to be sentenced on April 29, 2014; St Fleur and Harrell are scheduled to be sentenced on May 9, 2014; Williams is scheduled to be sentenced on May 21, 2014; and Cartwright is scheduled to be sentenced on July 7, 2014.
Co-defendants Herve Wilmore Jr., 29, of Aventura, and Delvin Jean Baptiste, a/k/a “Doo Doo”, 29, of Miramar, were convicted by a federal jury in Miami on March 5, 2014. Sentencing is scheduled for June 12, 2014, at 9:30 a.m. before U.S. District Judge Robert N. Scola. Specifically, the defendants were convicted of one count of conspiring to defraud the Internal Revenue Service (IRS), commit wire fraud, and commit aggravated identity theft, all in violation of Title 18, United States Code, Section 371; two counts of wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2; and two counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents and evidence presented at trial, the defendants conspired to unjustly enrich themselves by recruiting knowing co-conspirators and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers (EFINs) in their names, through which fraudulent transactions would be conducted. To accomplish this, the defendants used the personal identification information of individuals, many deceased, to prepare and file false and fraudulent income tax returns with the IRS. The defendants would obtain possession of fraudulently obtained refunds in the form of United States Treasury and Refund Anticipation Loan checks diverted to addresses or into bank accounts that they caused to be created and controlled. The defendants would then negotiate the fraudulently obtained federal income tax refunds within each other’s businesses, and elsewhere, to avoid being detected.
According to evidence at trial and court documents, Wilmore, Baptiste and their co-conspirators caused the filing of approximately $35 million in fraudulent federal income tax return of which the IRS paid out approximately $14 million. Defendant Wilmore was the president of Worldwide Income Tax Multiservices while Baptiste was the president of Royal Tax Multiservices, both tax preparation services located in Miami.
Co-defendant Marc Leroy Saint Juste, 47, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371. He was sentenced to two months in prison, to be followed by one year of supervised release.
Co-defendant John Similien, 24, of Plantation, pled guilty on the third day of the eight day trial to making a false statement, in violation of Title 18, United States Code, Section 1001(a)(2), and was sentenced to time served.
The indictment was dismissed against Miguel Patterson, 35, of Miami.
U.S. Attorney Ferrer and Assistant Attorney General Keneally commended the investigative efforts of the IRS-CI, FBI, and USSS. The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil and Tax Division Trial Attorney Greg Tortella.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fort Hall Man Sentenced for Possessing Sawed-off ShotgunRead the Press Release
POCATELLO – Arriyon Meeks-Ortiz, 34, of Fort Hall, Idaho, was sentenced yesterday in United States District Court to 40 months in prison, followed by three years of supervised release for possession of an unregistered firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on May 15, 2013, Fort Hall Police officers responded to a residence on the Fort Hall Indian Reservation. Meeks-Ortiz was observed to be holding what appeared to be a small bat or club. After being instructed by officers to leave the residence, Meeks-Ortiz tossed the object into a bedroom. Officers subsequently located an Iver Johnson 12-gauge shotgun with a barrel less than 18” in length on the bed in the bedroom. During an interview with law enforcement, Meeks-Ortiz said that he purchased the sawed-off shotgun in its altered condition for $100 and kept it underneath his trailer.
The case was investigated by the Fort Hall Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Officer at Roxbury Correctional Institution Sentenced for Assaulting InmateRead the Press Release
U.S. District Judge James K. Bredar sentenced Michael Morgan, formerly an officer at Roxbury Correctional Institution (RCI) in Hagerstown, Md., to serve 30 months in prison for depriving an inmate of his civil rights. Morgan and other RCI officers from three different shifts assaulted Kenneth Davis, an inmate, in March 2008, in retaliation for a prior incident in which Davis struck an officer.
Morgan pleaded guilty on Jan. 10, 2013, to deprivation of rights under color of law. According to court documents filed in connection with his guilty plea, Morgan acknowledged that after he heard officers yelling at Davis for having previously hit an officer, he kicked Davis in the groin and then watched another officer kick Davis. Morgan also admitted that he tried to cover up his involvement in the assault by providing false testimony during an administrative hearing on June 17, 2008.
“The defendant participated in one of the series of assaults suffered by Mr. Davis, and then he lied to cover up his involvement,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The defendant’s actions run completely counter to the responsibilities and trust given to correctional officers. The Justice Department will continue to vigorously prosecute those officers who, like this defendant, commit a crime under color of law.”
To date, 16 current or former officers at RCI have been convicted in connection with the series of assaults that Kenneth Davis suffered on March 8-9, 2008. Four former officers still await sentencing by U.S. District Judge James K. Bredar.
The case was investigated by the Frederick Resident Agency of the FBI, and prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the assistance of Assistant U.S. Attorney Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
Former Lafollette Attorney Sentenced for Federal Tax OffenseRead the Press Release
KNOXVILLE, Tenn. – Johnny V. Dunaway, 66, of Lafollette, Tenn., was sentenced on Apr. 23, 2014, by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 12 months in prison. Dunaway was also ordered to pay restitution to the Internal Revenue Service (IRS) for unpaid taxes and interest.
In December 2013, Dunaway pleaded guilty to a one-count information charging him with filing a false tax return for the 2008 tax year. In conjunction with his guilty plea, Dunaway admitted that his 2008 return failed to declare truthfully the business income that he had received from his law practice. In the course of its investigation, the IRS determined that Dunaway had also falsely reported his income taxes for the 2006, 2007 and 2009 tax years.
For most of his career as an attorney, Dunaway practiced law in Lafollette, Tenn. As a result of his federal tax offense, Dunaway consented to disbarment in October 2013.
This conviction is the result of an investigation by IRS-Criminal Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.
Former JBLM Soldier Sentenced to 17 Years in Prison for Production and Distribution of Child PornographyRead the Press Release
A former Army soldier and Marine was sentenced Monday to 17 years in prison and a lifetime of supervised release for production and distribution of child pornography, announced U.S. Attorney Jenny A. Durkan. ARRON D. BURTON, pleaded guilty in January 2014, admitting that he made and distributed a video of his molestation of a three-year-old child. U.S. District Judge Benjamin H. Settle imposed the sentence.
According to the plea agreement, BURTON was living at Joint Base Lewis-McChord (JBLM) in late 2012, when he came to the attention of law enforcement because of the child pornography he distributed via the internet. Search warrants were executed on BURTON’s computers, and analysis showed more than 100 images and 27 videos of child pornography.
Following his release from prison, BURTON will be required to register as a sex offender.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Francis Franze-Nakamura.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Houston Police Officer IndictedRead the Press Release
HOUSTON – Former Houston Police Department (HPD) officer Marcos E. Carrion, 36, has surrendered to authorities, announced United States Attorney Kenneth Magidson today.
Carrion was charged in a sealed indictment, returned April 16, 2014. It was unsealed as Carrion turned himself into authorities this morning. He is expected to make his initial appearance before U.S. Magistrate Judge George C. Hanks Jr. at 2:00 p.m. today.
Carrion is charged with conspiring with others to possess with the intent to distribute five or more kilograms of cocaine from mid-2013 through April 2014.
Carrion, a five-year HPD veteran, had recently resigned from his position.
If convicted, he faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine.
The charges are the result of a six-month investigation by the Drug Enforcement Administration with the assistance of HPD and the FBI. The case will be prosecuted by Assistant United States Attorneys Mark E. Donnelly and Shelley J. Hicks.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Director Pleads Guilty to Stealing $300,000 from Home for Disabled PersonsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former director of a program that provided a home for disabled persons in Higginsville, Mo., pleaded guilty in federal court today to embezzling more than $300,000 from the organization.
Terri Arlene Marr, 51, of Warrensburg, pleaded guilty before U.S. District Judge Dean Whipple to two counts of theft in connection with a health care benefit program.
Marr was the director of the Progressive Alternative Living, Inc. (PAL) from 1991 through 2013. PAL is an organization that operates a home in Higginsville for disabled persons in need of assistance. PAL receives reimbursement for many of these individuals from Medicaid. Marr was responsible for keeping strict and accurate accounts of all money received by and disbursed for and on behalf of PAL.
By pleading guilty today, Marr admitted that she used PAL credit cards to pay personal expenses. Marr also made payments on her personal credit cards out of the PAL bank account from 2001 through 2013.
Marr also admitted that, from 2001 through 2013, she issued payroll checks to an individual who was not an employee of PAL. These payroll checks total approximately $186,038.
Under the terms of today’s plea agreement, Marr must pay restitution to PAL for the total amount of the loss, not limited to the amounts set forth in the indictment and the two counts of conviction. If the parties are unable to agree to a loss figure, the court will decide the matter by a preponderance of the evidence.
Marr must forfeit to the government a money judgment of $327,544, which represents the proceeds of the offenses.
Under federal statutes, Marr is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the Higginsville, Mo., Police Department.
Five Plead Guilty to Theft from Union FundRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that five individuals pleaded guilty today to theft from an employee benefit plan. James McCall (32, Orange City), Ian Chase Dove (26, Orange City), Jason Wesson (37, Deltona), Michael Giesinger (36, Deltona), and Shane Riley (31, Deland) each face a maximum penalty of 5 years in federal prison. The sentencing hearings are scheduled for July 16, 2014.
According to court documents, Angela Deleon worked at Advance Administration, Inc. (AAI), which was the third-party administrator of an employee benefit plan for the Ironworkers Local 808. As the third-party administrator for the Ironworkers Local 808 Annuity Fund, AAI was responsible for processing members’ payment applications, paying the Fund’s bills, and speaking with union members. Deleon’s duties at AAI included data entry and the processing of payments.
Over a period of about fourteen months, Deleon wrote forty-six checks from the Fund, totaling over $427,000, to individuals who were not members of the Local 808 or participants in the Fund, including McCall, Dove, Wesson, Giesinger, and Riley. All five cashed the checks provided to them by Deleon and, in most cases, split the stolen proceeds with Deleon.
Deleon was previously sentenced to two years in federal prison for her participation in these crimes, ordered to pay $594,000 in restitution to the Ironworkers Local 808 Annuity Fund, and sentenced to a one-year term of supervision, following her incarceration. The restitution amount includes more than $427,000 that Deleon stole from the Fund, plus the amounts spent by the Fund to audit and reconstruct the records that were impacted by the scheme.
Four other individuals have been charged by indictment with conspiracy and theft from an employee benefit plan. Three of those individuals, Brandon Alfonso (28, Orange City), Marta Blackmer (70, Orange City), and Phillip Simmons (50, Orange City), are scheduled to begin trial in June 2014. Another, Jason Ferrari (33, Orange City), has not yet been arrested. If convicted, these defendants face a maximum penalty of 5 years in federal prison for each count.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
Five Charged in Identity Theft Scheme with Thousands of VictimsRead the Press Release
ERIE, Pa. - Five individuals from around the United States have been indicted by a federal grand jury in Erie on charges of conspiracy to commit wire fraud and aggravated identity theft, United States Attorney David J. Hickton announced today.
The 13-count superseding indictment, returned on April 8, 2014, named:
- Doherty Kushimo, 52, of Providence, Rhode Island;
- Saburi Adeyemi, 56, of Memphis, Tennessee;
- Abiodun Bakre, 49, Ozone Park, New York;
- Adetunji Gbadegeshi, 57, of Queens, New York; and
- Adebola Mejule, 54, of Hempstead, New York, as defendants.
“We are making significant progress in our efforts to uncover identity fraud and protect citizens from criminals who steal their personal information and steal their money,” stated U.S. Attorney Hickton. “We have dismantled a massive stolen identity ring that involved thousands of victims and tens of millions of dollars in losses.”
“Investigating refund fraud and identity theft is a top priority for IRS Criminal Investigation, and perhaps one of our most intense challenges,” according to IRS-CI Special Agent in Charge Akeia Conner. “Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law.”
“The use of the Internet for criminal purposes is one of the most critical challenges facing the FBI and law enforcement in general,” added Patrick Fallon, Asst. Special Agent in Charge of the FBI. “In order to combat Internet fraud, it is essential for law enforcement officers not only to understand and use the Internet, but also to join forces. This case illustrates the benefits of law enforcement and private industry, around the world, working together in partnership on computer crime investigations.”
According to the superseding indictment presented to the court, the five defendants conspired to commit wire fraud by submitting fraudulent federal tax returns in the names of individuals whose identities the conspirators stole. The conspirators then opened bank accounts using other stolen identities and used those accounts as repositories for their fraudulently obtained federal tax refunds. The conspirators obtained stolen identity information on the Internet and then traded that information among themselves using email accounts and other means of communication. All told, the indictment alleges that approximately $21 million in fraudulent tax refunds was sought from the IRS by the conspirators, causing the IRS to pay approximately $10 million in fraudulent refunds.
The law provides for a maximum total sentence of 20 years in prison for Saburi Adeyemi, Adetunji Gbadegeshi and Adebola Mejule. Doherty Kushimo faces 38 years in prison and Abiodun Bakre faces 36 years in prison. All five defendants are subject to a maximum fine of $250,000 or twice the amount of loss to the victims. 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 defendants.
For more information about identity theft, please visit www.irs.gov or www.justice.gov.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ex-NBA Player Chris Herren Visits Ohio ValleyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistHerren speaks to Park, John Marshall students about dangers of drugs
WHEELING, WV – Former NBA player Chris Herren spoke to students at Wheeling Park High School and John Marshall High School today about the dangers of drugs and his personal battle with addiction.
Herren spoke to over 2,000 area students this morning about how substance abuse derailed his basketball career. The audiences at the schools learned that Herren was a high school All-American at Durfee High in Massachusetts before starring at Boston College and Fresno St. He went on to be drafted by the Denver Nuggets of the NBA, and then was traded to the Boston Celtics, where he played for several years. Herren described to students how his abuse of alcohol, cocaine, and then ultimately heroin nearly ended his life. He has been sober since 2008 and now tours the country speaking to young people about his struggles.
Herren, whose story was featured as part of ESPN’s 30 for 30 series, took questions from the students at each school following his talk. He also posed for a special picture with the members of Drug Free Clubs of America at Wheeling Park and John Marshall.
Wheeling Park Principal Amy Minch discussed the importance of bringing in a speaker such as Herren to discuss substance abuse.
“We regularly educate our students about the perils of drugs but this takes it to a whole new level,” said Minch. “When someone like Chris Herren speaks the kids sit up and listen and that’s what we want.”
John Marshall Principal Rick Jones concurred.
“When this opportunity was presented to me I immediately signed on,” said Jones. “It’s my responsibility as an educator to seek out programs like this one so that our students continue to learn about what could happen to them if they make the wrong choice.”
The committee that organized and planned Herren’s visit was made up of representatives from the Marshall County Family Resource Network, the Ohio County Substance Abuse Prevention Coalition, John Marshall High School, Wheeling Park High School, Paree Insurance, and the U.S. Attorney’s Office. The cost of bringing Herren to the area was covered through donations from community partners of the event.
Herren’s visit is part of Project Future, a U.S. Attorney-led initiative designed to educate parents and children about the dangers of prescribed medicine, synthetic drugs, and other illegal drugs that are plaguing communities in West Virginia. Project Future is a year-round program and is available to all schools within the Northern District of West Virginia.
Doctor Pleads Guilty to Prescribing Drugs for Sex, MoneyRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Dr. Joseph Ngui Mwau Ndolo, 60, of Fairhope, Alabama pleaded guilty to three federal drug charges. Ndolo, an internal medicine physician, ran a “pill mill” from 2008 to 2013 out of his private clinic, Premier Internal Medicine, P.C., in Fairhope. He prescribed patients drugs outside the usual course of professional practice in exchange for sex, graphic communications, money and favors from his patients. Ndolo’s cocktail of medications consisted of schedule II controlled substances such as oxycodone and numerous other schedules II – V substances. Some patients referred to Ndolo’s clinic as a “candy store” for drugs. He put his patients’ safety in jeopardy by, for instance, writing medically needless prescriptions without conducting basic patient examinations. As part of his agreement with the United States, Ndolo shall surrender his medical license. He faces a maximum penalty of twenty years in prison for each drug charge. His sentencing is scheduled for August 22, 2014.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Gregory Bordenkircher and Special Assistant United States Attorney Sinan Kalayoglu.
District Man Sentenced to Four Years in Prison for September 2013 Credit Union Robbery- Defendant Fled on Metro Train Following Robbery -Read the Press Release
WASHINGTON – Norman Ellis, 54, of Washington, D.C., was sentenced today to four years in prison for robbing a credit union in September 2013, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI=s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Ellis pled guilty to one count of bank robbery in January 2014 and was sentenced today by the Honorable Richard J. Leon in the U.S. District Court for the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. He also was ordered to pay $2,481 in restitution.
According to a factual proffer of evidence presented at the time of the guilty plea, on the morning of Sept. 21, 2013, Ellis entered a Signal Financial Credit Union, in the 1400 block of Irving Street NW, approached a teller, handed over a note demanding money, and gestured as if he had a gun. After the teller handed Ellis $2,481 in U.S. currency, Ellis fled the credit union. Moments following the robbery, Ellis entered the Columbia Heights Metro station, and removed his jacket and baseball cap before boarding a Metro train and fleeing the area.
Ellis was arrested Oct. 18, 2013 and, during a search of his home, law enforcement recovered the clothing he wore during the robbery.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, and Chief Lanier commended the investigative work of the Special Agents from the FBI’s Washington Field Office who worked on the case and the entire joint FBI/MPD Violent Crimes Task Force.
In addition, they acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Legal Assistant Jessica Moffatt and Paralegal Specialist Starla Stolk, and Assistant U.S. Attorney Catherine K. Connelly, of the Asset Forfeiture and Money Laundering Section. Finally, they thanked Assistant U.S. Attorney David B. Kent, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the case.
14-094District Man Sentenced to Five Years in Prison for July 2013 Attempted Bank RobberyDefendant Committed Offense While on Supervised Release for String of 19 Bank Robberies in D.C., Maryland, and Virginia in 2003Read the Press Release
WASHINGTON – Calvin Kinard Adams, 33, of Washington, D.C., was sentenced today to five years in prison for attempting to rob a bank in July 2013, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Adams pled guilty to one count of attempted bank robbery in January 2014 and was sentenced today by the Honorable Richard J. Leon in the U.S. District Court for the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release.
According to a factual proffer of evidence presented at the time of the guilty plea, on the morning of July 3, 2013, Adams entered a Wells Fargo Bank, in the 3200 block of Pennsylvania Avenue SE, approached a bank employee, and handed over a note demanding money. As the teller attempted to press the silent alarm, Adams fled the bank.
Adams was arrested on Oct. 18, 2013. At the time of the offense, Adams was on supervised release following his 2003 convictions for a string of 19 bank robberies he committed in 2003 in the District of Columbia, Maryland, and Virginia. In that case, the Honorable Paul L. Friedman in the U.S. District Court for the District of Columbia sentenced Adams to 11 years in prison followed by three years of supervised release. Adams had been on supervised release for less than six months when he committed the attempted bank robbery in this case.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, and Chief Lanier, commended the investigative work of the Special Agents from the FBI=s Washington Field Office and the FBI Laboratory Latent Print Operations Unit who worked on the case, and the entire joint FBI/MPD Violent Crimes Task Force. In addition, they acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Legal Assistant Jessica Moffatt and Paralegal Specialist Starla Stolk. Finally, they thanked Assistant U.S. Attorney David B. Kent, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the case.
14-095Dickinson Man Sentenced in Medina Bank RobberyRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 23, 2014, Satrone Rashard Boyd, 38, of Dickinson, N.D., was sentenced before U.S. District Judge Ralph R. Erickson to serve 7 ½ years in prison for bank robbery.
On Oct. 25, 2013, at approximately 9:30 a.m., Boyd and codefendant Rendell Charles Hardy forcefully robbed Northland Financial in Medina, N.D. wearing clown masks. After quickly approaching the teller, Boyd demanded money from a bank employee after which the two men fled the scene. Boyd and Hardy later changed vehicles southwest of Medina, N.D., before being identified at a truck stop near the Star Lite Motel in Jamestown, N.D. A surveillance video showed Boyd throwing the masks and a set of keys into the dumpster by the Star Lite Motel. Boyd was later apprehended in Fargo, N.D. Sentencing for Hardy is set for July 1, 2014, at 2:15 p.m. in United States District Court.
Judge Erickson also sentenced Boyd to serve three years of supervised release, to pay $2,670 in restitution and a $100 special assessment to the Crime Victims Fund.
The case was investigated by the Federal Bureau of Investigation together with the Stutsman County Sheriff’s Office, the North Dakota Highway Patrol, the Dickinson Police Department and the Fargo Police Department.
Assistant U.S. Attorney Keith Reisenauer prosecuted the case.
Deming Man Pleads Guilty to Federal Marijuana Trafficking ChargeRead the Press Release
ALBUQUERQUE – Crispin Fierro, 32, of Deming, N.M., pleaded guilty yesterday afternoon in Las Cruces federal court to a marijuana trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Fierro initially was charged based on a criminal complaint alleging that he possessed 456 kilograms (1004.5 pounds) of marijuana with intent to distribute in Luna County, N.M., on March 4, 2013. Fierro subsequently was indicted on that same charge.
During yesterday’s proceedings, Fierro pleaded guilty to the indictment and admitted that on March 4, 2013, he possessed approximately 456 gross kilograms of marijuana which he intended to deliver to another person. In his plea agreement, Fierro acknowledged that he was the driver and sole occupant of a flatbed truck in which he was transporting the marijuana. Fierro further admitted that the marijuana was found by U.S. Border Patrol agents when they pulled him over on New Mexico State Highway 9 in Luna County.
Fierro has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Fierro faces a federal prison sentence of not less than five years and not more than 40 years.
This case was investigated by the Deming office of Homeland Security Investigations and the Deming Station, El Paso Sector of the U.S. Border Patrol, and is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley of the U.S. Attorney’s Las Cruces Branch Office.Charleston Heroin Dealer Sentenced to Federal PrisonRead the Press Release
Defendant Brandon “Fresh” Solomon was prosecuted as part of Charleston’s West Side Drug Market Intervention initiative
CHARLESTON, W.Va. – A Charleston man was sentenced to six months in federal prison for distribution of heroin, U.S. Attorney Booth Goodwin announced today. Brandon Christopher Solomon, 19, also known as “Fresh,” sold heroin to a police informant three separate times in August of 2013. One sale took place inside the Charleston Town Center Mall and two others took place on the West Side of Charleston. Solomon previously pleaded guilty to distribution of heroin in December of 2013. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Solomon was prosecuted as part of the Charleston area’s Drug Market Intervention (DMI) initiative. Solomon was designated a member of the DMI A-list comprised of the most serious offenders identified in the initiative. The DMI initiative was launched in February 2012 by U.S. Attorney Booth Goodwin and Charleston Police Chief Brent Webster, in collaboration with other federal, state, local law enforcement agencies and leaders representing several West Side community development organizations. A continuation of the DMI initiative was announced in December of 2013 in Charleston. Over the course of the most recent DMI initiative, the Charleston Police Department and other law enforcement agencies conducted undercover operations and completed investigations that resulted in federal charges being filed against thirteen individuals.
The DMI strategy also included a staged community intervention held at the New Covenant Missionary Baptist Church on Charleston’s West Side. The community intervention meeting offered a rare second chance for five low-level, non-violent offenders to end their criminal activity and avoid being prosecuted, if a strict set of guidelines set by law enforcement are obeyed. The December 12, 2013 community intervention call-in meeting was attended by offenders’ relatives, concerned citizens, and faith-based leaders from the West Side community. The call-in meeting was coordinated and attended by federal, state and local law enforcement officials.
DMI, first implemented in High Point, North Carolina, and replicated with success in several other cities, including Huntington, W.Va., is a strategic problem-solving initiative aimed at closing down drug markets that breed crimes of violence and disorder.
Cameron Park Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. —Kendal Mychael Lobb, 32, of Cameron Park, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison and a $250,000 fine for receiving child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, in July 2012, law enforcement investigators identified Lobb’s computer as a source of online child pornography. Among the files being offered were videos of prepubescent children being sexually assaulted by adults. Law enforcement officers executed a search warrant at Lobb’s residence and found more than 100 images and 300 videos of child pornography. These files had been downloaded by the defendant through the Internet between April 12, 2003, and October 5, 2012.
This case was the product of an investigation by the Sacramento Internet Crimes Against Children (ICAC) task force, a federally and state funded task force managed by the Sacramento Sheriff’s Department composed of agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Kyle Reardon 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.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Buffalo Man Pleads Guilty to Four Bank RobberiesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Earl Moss, 29, of Buffalo, N.Y., pleaded guilty before Chief U.S. District Court Judge William M. Skretny, to bank robbery and brandishing a firearm in connection with a crime of violence. The charges carry a maximum penalty of life in prison, a fine of $250,000 or both.
According to Assistant U.S. Attorneys John E. Rogowski and Edward H. White, who are handling the case, the defendant robbed four banks in Buffalo and Amherst in 2010 and 2011 including:
o The April 20, 2010, robbery of the Citizens Bank at 3180 Sheridan Drive in Amherst, during which the defendant, wearing women’s clothing, passed the teller a note demanding money. After the teller turned over an amount of money to Moss and shortly after he left the bank, the dye pack in the bank money exploded. The defendant abandoned the money which was recovered by a nearby citizen who took the money back to the bank;
o The April 30, 2010, robbery of the Citizens Bank at 1893 Elmwood Avenue in Buffalo, during which the defendant, again wearing women’s clothing, passed the teller a note reading “no dye packs or I’ll kill you.” The defendant fled the scene after receiving an amount of money;
o The December 24, 2010, armed robbery of the Citizens Bank at 3180 Sheridan Drive in Amherst, during which the defendant, wearing a hooded sweat shirt and sun glasses, waived a silver hand gun and demanded money from the bank tellers. Moss received money from several tellers and ran from the bank. A customer in the bank took pursuit after the defendant and fired four shots from a pistol he had a permit to carry. None of the shots struck Moss and the defendant escaped with the money; and
o The April 18, 2010, armed robbery of the Citizens Bank at 1893 Elmwood Avenue in Buffalo, during which the defendant, again wearing a hooded sweat shirt and sun glasses, waived a silver hand gun and demanded money from the bank tellers. Moss received money from several tellers and ran from the bank.
Moss moved to the Atlanta, Georgia, area after the first two robberies. In early December, 2010, following an armed robbery of a bank in Atlanta, the Federal Bureau of Investigation received information that Moss may be responsible for that robbery as well as the Buffalo area robberies. As a result, the FBI gathered sufficient evidence which resulted in Moss’s arrest two days after the last robbery. The defendant has been incarcerated since his arrest.
“The successful conclusion of this case demonstrates effective, coordinated policing at its best,” said U.S. Attorney Hochul. “As a result, both the community and area financial institutions are now safe from this violent predator.”
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Amherst Police Department, under the direction of Chief John C. Askey, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 20, 2014, at 10:00 a.m. before Chief Judge Skretny.Bryan Woman Heads to Prison in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Yolanda Nowlin, 42, has been ordered to federal prison for 11 years following her multiple convictions in relation to a large health care fraud conspiracy, announced United States Attorney Kenneth Magidson. A federal jury in Houston convicted Nowlin Sept. 4, 2013, following seven days of trial and less than three hours of deliberations.
At the sentencing hearing late yesterday, U.S. District Judge Sim Lake handed Nowlin a total sentence of 132 months in federal prison - 120 months for conspiracy to commit health care fraud to be served consecutively to a 12-month sentence for health care fraud, conspiracy to violate the anti-kickback statute and Social Security fraud. She was further ordered to pay $744,105 in restitution to Medicare and Medicaid and $106,492.10 to the Social Security Administration. In handing down the sentence, Judge Lake noted the fraud occurred over several years, harming beneficiaries, the public and the Medicare and Medicaid systems. Nowlin will also be required to serve three years of supervised release following completion of the prison term.
Nowlin, of Bryan, ran two durable medical equipment companies - Yellabone Medic Care Express Equipment Supply Company and Yellabone Medical Equipment Inc. Nowlin was arrested in December 2012 along with co-defendant Carla Parnell, 51, also from Bryan. Parnell pleaded guilty earlier this year to Social Security fraud and testified against Nowlin at the jury trial. Parnell is scheduled to be sentenced May 15, 2014.
The evidence at trial showed that between July 2003 and December 2009, Nowlin engaged in a scheme to defraud Medicare and Medicaid. Nowlin submitted claims to Medicare and Medicaid for durable medical equipment (DME) and incontinence supplies that were not delivered, not wanted and not needed by Medicare or Medicaid beneficiaries and were often the result of illegal kickbacks. During the alleged conspiracy, Nowlin submitted approximately $3,391,771.90 in claims to Medicare and Medicaid and received $1,108,316.82 for those claims. A total of $744,105 was identified as fraudulently paid.
The evidence at trial also showed that Nowlin paid kickbacks to a large number of recruiters over the course of the scheme in return for the referral of beneficiaries to Yellabone.
Nowlin was additionally convicted of aiding and abetting the theft of government money from the Social Security administration. Nowlin and Parnell concealed Parnell’s employment with Yellabone in order to continue Parnell’s receiving Social Security disability benefits to which she was not entitled.
Previously released on bond, Nowlin was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was the result of a joint investigation conducted by agents from Texas Attorney General’s Office – Medicaid Fraud Control Unit and the Department of Health and Human Services-Office of the Inspector General, Office of Investigations. Special Assistant United States Attorneys Adrienne E. Frazior and Suzanne Bradley prosecuted the case.
Brooklyn Man Charged with Murder to Obstruct Bank Fraud InvestigationRead the Press Release
A nine-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Naquan Reyes with the murder of Nicole Thompson to prevent her from communicating with federal law enforcement officials. Reyes was also charged with bank fraud, bank fraud conspiracy, aggravated identity theft and related offenses. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York, on April 16, 2014.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Brian A. Swain, Acting Special Agent-in-Charge, United States Secret Service, New York Field Office.
As alleged in the indictment and detention memorandum, since 2008, Reyes has perpetrated a scheme to defraud various banks. As part of the scheme, Reyes created counterfeit checks and recruited others to deposit those checks into their and others’ bank accounts. Reyes and his coconspirators then attempted to withdraw the funds from the bank accounts before the banks learned the checks were counterfeit. Among those he recruited to make the deposits was Nicole Thompson. On July 16, 2010, Thompson was arrested by the New York City Police Department in connection with her role in the scheme, and she immediately decided to cooperate with law enforcement. Just eight days after her arrest, on July 24, 2010, Thompson's body, duct taped and wrapped in garbage bags, was found in a dumpster in Landover, Maryland. When Reyes learned of Thompson's plans to cooperate and thereby jeopardize his ongoing fraud scheme, Reyes murdered her and then traveled from New York to Maryland to dispose of her body. Thompson was 24 years old at the time of her murder.
“As alleged, Naquan Reyes sat atop a scheme to defraud multiple banks using counterfeit checks, recruiting others to help perpetrate the scheme. When one of his recruits began to cooperate with law enforcement, Reyes decided that her life was forfeit, and killed her to protect the flow of ill-gotten gains. Today’s arrest should send a message to those who in any way tamper with witnesses to evade detection by law enforcement,” stated United States Attorney Lynch. “We will relentlessly continue our investigation of such individuals until they are brought to justice.” Ms. Lynch expressed her grateful appreciation to the Prince George's County, Maryland Police Department, New York City Police Department, and Bronx County District Attorney’s Office for their significant cooperation and assistance in the investigation.
“Tampering with a witness is a serious crime. Murdering a witness in a vain attempt to obstruct justice is another matter altogether,” stated FBI Assistant Director-in-Charge Venizelos.
“The Secret Service works in concert with federal, state, and local law enforcement to ensure our resources are being targeted to those criminal activities that are of high concern to local communities. We worked closely with the Federal Bureau of Investigation, New York City Police Department, and the Prince George’s County, MD Police Department to bring justice in this case. This investigation is just one example that proves the power of agency partnerships at every level in combating financial crimes,” said Secret Service Acting Special Agent-in-Charge Swain.
The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr., at the federal courthouse in Brooklyn. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Elizabeth Kramer, Elizabeth Geddes, Samuel Nitze, and Karin Orenstein.
The Defendant:
NAQUAN REYES
Age: 29
Brooklyn, NY
E.D.N.Y. Docket No. 14-CR-0227
Brooklyn Fish Dealer Pleads Guilty to Wire FraudRead the Press Release
Alan Dresner, a federally-licensed fish dealer from Brooklyn, N.Y., pleaded guilty today in federal court in Central Islip, N.Y., to federal violations stemming from his role in systematically underreporting fluke (summer flounder) that was being harvested as part of the federal Research Set-Aside (RSA) Program, the Justice Department’s Environment and Natural Resources Division announced.
Alan Dresner pleaded guilty to one count of wire fraud. The scheme involved his personal falsification and internet submission of at least 120 fisheries dealer reports from July 2009 to December 2011, as part of a scheme to defraud the United States of 246,376 pounds of overharvested and underreported fluke valued at $510,000.
As part of the plea deal, Dresner agreed to be subject to between $516,000 and $577,000 in combined fines and restitution. The defendant also agreed to make a $15,000 community service payment to the Cornell Cooperative Extension of Suffolk County in order to pay for the enhancement of fluke habitat through the C.C.E.’s Marine Meadows Program. The jointly proposed sentence includes relinquishment of Dresner’s federal dealer license and a ban on accessing the National Oceanic and Atmospheric Administration’s (NOAA) SAFIS computer system . The court will hear sentencing recommendations regarding non-agreed terms at a hearing set for Oct. 22, 2014.
“Today, Dresner has acknowledged his role in cheating a federal research program for financial gain at the expense of law abiding fishermen,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “He repeatedly misled the government as he schemed to take hundreds of thousands of dollars in illegally harvested fluke. This conviction shows our commitment to protecting this resource for today’s fisherman and future generations.”
“These dealers created the market for these elicit, unreported fish and their willingness to conspire with the harvesters of these fish to no report them completely undermines the system of trying to obtain the best available science to manage this fishery,” said Logan Gregory, Special Agent in Charge of the NOAA Office of Law Enforcement’s Northeast Division. “The Office of Law Enforcement will continue to investigate this issue to conclusion. It's not only important to fisheries management, but also important to the law abiding industry members who rely on the availability of this fish to harvest and sell.”
Alan Dresner is “Fish Dealer X” as that person is identified in the related case of U.S. v. Anthony Joseph. As a federal fish dealer, Dresner had a NOAA permit to purchase fish directly from commercial fishing vessels without having to go through an intermediary. In July 2009, Dresner learned that Anthony Joseph, captain of the F/V Stirs One, was consistently overharvesting fluke through Joseph’s abuse of the RSA Program. By July 2009, Dresner was making regular purchases of illegal fluke from Joseph at the Point Lookout, N.Y., waterfront.
In order to cover his illegal fishing, Joseph would mail falsified fishing logs, known as FVTRs, to NOAA, but falsified FVTRs were just one side of the coin. This is because fish dealers are required to report their purchases to NOAA on an electronic form known as a dealer report. The dealer reports include information such as date of landing, port of landing, catch vessel, corresponding FVTR numbers, commercial grade, species, price, and weight. NOAA utilizes the data in the dealer reports to set quotas and implement other management measures designed to ensure a sustainable fisheries. The dealer reports also serve as a check on the information that is submitted in FVTRs. In other words, in order to effectuate his scheme, Anthony Joseph needed to ensure that corresponding false dealer reports were being submitted that contained the same false information as was contained on the falsified FVTRs. A mismatch would have indicated a serious error or fraud, and would have been a red flag for fisheries managers. Accordingly, during July 2009 to December 2011, the defendant schemed with Anthony Joseph to file at least 120 false dealer reports with NOAA, representing a loss of 246,376 pounds of fluke valued at $510,000. Another part of the scheme involved Dresner paying for legitimate, reported fish with a check, but utilizing cash handoffs to Joseph to purchase the illegal fluke.
The case was investigated by agents of NOAA’s National Marine Fisheries Service, with assistance from the New York State Department of Environmental Conservation Police. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division.Related Materials:
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Plea AgreementBridgeport Man Sentenced to 30 Months in Prison for Distributing CrackRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LAWRENCE BLUE, 36, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 30 months of imprisonment, followed by six years of supervised release, for distributing crack.
In December 2002, BLUE was sentenced by Judge Hall to 92 months of imprisonment and three years of supervised release for possession of a firearm by a previously convicted felon. He was released from federal prison in June 2009.
According to court documents and statements made in court, on March 20, 2012, the U.S. Marshals Service and members of the Connecticut Violent Fugitive Task Force arrested BLUE at his Bridgeport residence on a federal violation of supervised release warrant. On that date, a search of BLUE’s bedroom revealed narcotics, two loaded firearms and approximately $2,500 in cash.
On April 17, 2012, Judge Hall sentenced BLUE to 21 months of imprisonment for violating the conditions of his supervised release stemming from his prior federal conviction.
On October 23, 2013, BLUE pleaded guilty to one count of possession with intent to distribute cocaine base (“crack”).
BLUE has been detained since his arrest in March 2012.
This case was prosecuted by Assistant U.S. Attorney Alina P. Reynolds.
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Tom Carson
(203) 821-3722 [email protected]Bozeman Man Gets 10 Years for Child PornographyRead the Press Release
The United States Attorney's Office announced that on April 17, 2014, MATTHEW RYAN PETTIT, 30, of Bozeman, was sentenced to a term of 120 months' imprisonment and 20 years supervised release by U.S. District Judge Dana L. Christensen, in connection with his January 2014 guilty plea to possession of child pornography.
Assistant U.S. Attorney Cyndee Peterson told the Court in Missoula that that in April of 2012 a Federal Bureau of Investigation ("FBI") Special Agent determined there was an Internet Protocol address ("IP address") offering known child pornography files for download via the Internet. The agent successfully downloaded video files which depicted child pornography. The agent determined the location of the residence-the home of Matthew Pettit-associated with the IP address, and a search warrant was obtained.
On November 15, 2012, officers conducted a search of the Pettit's residence. Several items were seized including a laptop computer belonging to Pettit and a wireless router which he had installed. Forensic analysis of the seized laptop computer revealed that Pettit's laptop contained files depicting child pornography (a visual depiction of a minor engaged in sexually explicit conduct). Peer-to-peer file sharing clients, with whom images are exchanged, were also discovered on the laptop.
Boone County Man Admits Role in Heroin ConspiracyRead the Press Release
Defendant Caught with Hydrocodone, Cash and Stolen Firearms
CHARLESTON, W.Va. – An Ashford, West Virginia man admitted today that he conspired with others to distribute heroin in and around Boone County, W.Va., announced U.S. Attorney Booth Goodwin. James Harry Barker, 63, pleaded guilty in federal court in Charleston to conspiracy to distribute heroin.
In June of 2013, the U.S. 119 Drug Task Force executed a search warrant at Barker’s home and a bar he operated called “Firebug’s,” both located in Ashford. Officers seized cash and evidence of drug distribution such as drug packing materials. Barker admitted that he sold several hundred heroin “stamps” in the Boone County area from the summer of 2012 through the summer of 2013. He also admitted that the money seized from his home and business came from drug sales.
Barker faces up to 20 years in federal prison when he is sentenced on August 6, 2014.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
The U.S. 119 Drug Task Force conducted the investigation. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
Bismarck Man Sentenced for Child Pornography ChargeRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 23, 2014, Erik E. Cryderman, 47, Bismarck, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of material involving the sexual exploitation of minors. Cryderman pleaded guilty to the charge on Jan. 21, 2014.
Judge Hovland sentenced Cryderman to serve the minimum mandatory 10 years in federal prison, to be followed by 10 years of supervised release. Cryderman was ordered to pay a $100 special assessment to the Crime Victim’s Fund. Cryderman must register as a sex offender.
On March 7, 2012, Cryderman was in possession of visual depictions which showed minors engaging in sexually explicit conduct.
This investigation was conducted by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, and the North Dakota Parole & Probation Office.
This case was brought as a 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Assistant U.S. Attorney Gary Delorme prosecuted the case.
Attorney Pleads Guilty to Stealing Escrow FundsRead the Press Release
ORFOLK, Va. – David R. Flynn, 44, of Norfolk, Va., pleaded guilty today to mail fraud and unlawful monetary transactions.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Field Office in Washington, D.C. (IRS-CI); William Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after the plea was accepted by Senior United States District Judge Henry Coke Morgan, Jr.
Flynn faces a maximum penalty of 20 years in prison for mail fraud and a maximum penalty of 10 years in prison for unlawful monetary transactions when heis sentenced on July 7, 2014.
According to a statement of facts filed with the plea agreement, Flynn, an attorney licensed to practice law in Virginia and owner of Assured Title of Virginia, LLC in Virginia Beach, stole over two million dollars from real estate trust accounts in order to cover up problems with his Wells Fargo escrow account that dated back to 2008. Flynn also used the stolen funds to pay a personal credit card, to travel to tropical destinations, sometimes paying for friends to join him, and on at least one occasion, to charter a private plane.
This case was investigated by the Tidewater Complex Financial Crimes Task Force. Members of the Task Force include the Federal Bureau of Investigation, the Internal Revenue Service, Secret Service and the Postal Inspection Service. Assistant United States Attorney Melissa O’Boyle 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.Architect Pleads Guilty in Conjunction with Progreso Bribery SchemeRead the Press Release
HOUSTON - Jesus Bustos, 58, has pleaded guilty to conspiracy, announced United States Attorney Kenneth Magidson.
Bustos was charged in a second superseding federal indictment alleging his participation in a bribe paying scheme in Progreso. Today in Houston federal court, Bustos admitted that from 2004 through 2013, he paid bribes and kickbacks to obtain architectural contracts for his architectural firm IDEA Group LLC on public projects in Progreso and Weslaco.
Bustos admitted he conspired with, and primarily paid these bribes through, an IDEA Group employee to obtain contracts on construction projects with the Progreso Independent School District (PISD) and with the Weslaco Independent School District (WISD). The collective value of the PISD and WISD projects on which Bustos paid bribes was in the millions of dollars.
PISD’s Director of Maintenance and Transportation Jose Guadalupe Vela, Progreso Mayor Omar Vela and PISD Board of Trustees President Michael Vela largely controlled contracting with PISD and directed PISD contracts to those who were willing to pay Vela family members bribes. Jose Vela shared the bribe money with PISD School Board members who were willing to vote for contractors that Jose Vela chose for their willingness to pay bribes.
In Progreso, Bustos paid bribes through his employee to members of the Vela family to obtain contracts on PISD construction projects, to include West Elementary School, Fine Arts Center, North Elementary School and the Science and Technology building. Bustos also personally delivered bribe money to Michael Vela in approximately 2011.
In Weslaco, Bustos paid a bribe through his employee to a WISD school board member in order to obtain a contract on the Mario Ybarra Elementary School Construction project. He paid two bribes through his employee to the school board member at the end of the construction project in order to expedite payment from WISD to IDEA Group.U.S. District Judge David Hittner has set sentencing for July 25, 2014. At that time, Bustos faces up to five years in prison and a possible $250,000 fine.
The case was investigated by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting.
Announcing New Clemency Initiative, Deputy Attorney General James M. Cole Details Broad New Criteria for ApplicantsRead the Press Release
As part of the Justice Department’s new clemency initiative, Deputy Attorney General James M. Cole announced six criteria the department will consider when reviewing and expediting clemency applications from federal inmates.
Under the new initiative, the department will prioritize clemency applications from inmates who meet all of the following factors:
· They are currently serving a federal sentence in prison and, by operation of law, likely would have received a substantially lower sentence if convicted of the same offense(s) today;
· They are non-violent, low-level offenders without significant ties to large scale criminal organizations, gangs or cartels;
· They have served at least 10 years of their prison sentence;
· They do not have a significant criminal history;
· They have demonstrated good conduct in prison; and
· They have no history of violence prior to or during their current term of imprisonment.
“For our criminal justice system to be effective, it needs to not only be fair; but it also must be perceived as being fair,” said Deputy Attorney General Cole. “Older, stringent punishments that are out of line with sentences imposed under today’s laws erode people’s confidence in our criminal justice system, and I am confident that this initiative will go far to promote the most fundamental of American ideals – equal justice under law.”
In December 2013, President Obama commuted the sentences of eight individuals who were sentenced under an outdated regime—many of whom would have already paid their debt to society if they had been sentenced under current law. Since that time, President Obama has said he wants to consider more applications for clemency from inmates who are similarly situated. The Department of Justice, which assists the president in the exercise of executive clemency by reviewing petitions for clemency for federal offenses and making recommendations, is committed to carrying out this important mission and has pledged to provide the necessary resources to fulfill this goal expeditiously.
Outside of this initiative, any inmate can apply for commutation under the standard principles for which executive clemency has been granted historically. This initiative applies to a limited category of petitioners whose clemency applications may be especially meritorious.
Deputy Attorney General Cole also announced Deborah Leff, Acting Senior Counselor for Access to Justice, as the new head of the Office of the Pardon Attorney. Ronald Rodgers, who previously held the position, will assist Leff during a transition period and will then take on another role at the department to be announced at a later date.
“Over the past several years, Ron has performed admirably in what is a very tough job. He has demonstrated dedication and integrity in his work on pardons and commutations,” Cole said.
Deputy Attorney General Cole added that Acting Senior Counselor Leff’s work with the department’s Access to Justice program makes her uniquely qualified to step into the pardon attorney’s role.
“Deborah has committed her career to the very basis of this initiative - achieving equal justice under law,” said Deputy Attorney General Cole. “As Acting Senior Counselor for Access to Justice, her fundamental mission has been to help the justice system deliver outcomes that are fair and accessible to all.”
To facilitate the thorough and rapid review of the new clemency applications this initiative will likely spur, Deputy Attorney General Cole announced that he issued a department-wide call for attorneys willing to help review new petitions. These attorneys will help assess the petitions to determine which fall within the six stringent standards and merit further consideration. Department lawyers will be temporarily assigned to the Pardon Attorney’s Office.
The Bureau of Prisons (BOP) will notify inmates in the coming days about this initiative and the availability of pro bono lawyers from the newly formed Clemency Project 2014. The Clemency Project 2014, which is made up of independent, outside groups as well as federal public defenders, was organized in response to Deputy Attorney General Cole’s Jan. 30, 2014, speech at the New York State Bar Association in which he called for assistance in identifying appropriate clemency petitions under this initiative.
In addition to notifying inmates of this initiative, BOP will provide interested inmates with an electronic survey that will help both pro bono lawyers and Justice Department lawyers to screen the petitions for the Office of the Pardon Attorney to quickly identify whether inmates meet the criteria for the program. BOP case managers will continue to provide inmates assistance with submitting the appropriate paperwork for clemency applications.
Deputy Attorney General Cole sent a letter to all of the 93 U.S. attorneys asking for their assistance in identifying meritorious candidates and notifying them that the Pardon Attorney’s Office will be soliciting their views on petitions that appear to meet the criteria after an initial screening by the lawyers in the Office of the Pardon Attorney.
The new clemency initiative is an outgrowth of Attorney General Holder’s “Smart on Crime” initiative, which is intended to strengthen the criminal justice system, promote public safety and deliver on the promise of equal justice under law.
The Deputy Attorney General’s Office oversees the Office of the Pardon Attorney. The department assists the president in the exercise of executive clemency. Under the Constitution, the president’s clemency power extends only to federal criminal offenses. All requests for executive clemency for federal offenses are directed to the pardon attorney for investigation and review. Petitions are then sent to the Deputy Attorney General for review and recommendation to the president.
Amherst Restaurant Owner Pleads Guilty to Filing a False Income TaxRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Ravi Sabharwal, 58, of Williamsville, N.Y., pleaded guilty plea to filing a false tax return before Chief U.S. District Judge William M. Skretny. The charge carries a maximum sentenced of three years in prison, a fine of $100,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Sabharwal, owner of Tandoori’s restaurant in Amherst, N.Y., underreported the gross receipts of the business on corporate tax returns to avoid paying federal taxes.
In October 2012, the defendant attempted to sell Tandoori’s restaurant and two related businesses to any interested buyers by listing the businesses for sale with a broker. Between October 2012 and March 2013, Internal Revenue Service, Criminal Investigation Division (IRS-CID) undercover agents, posing as interested buyers, met with the defendant to negotiate the terms of the sale of the business. During conversations with the agents, Sabharwal admitted that he significantly underreported the gross receipts and the taxable income for Tandoori’s restaurant on corporate tax returns. The defendant was able to underreport the gross receipts and taxable income by not running the receipts of a related business through the register and by not depositing all the business receipts to the business bank accounts.
On October 7, 2012, Sabharwal assisted in the preparation of the corporate tax return for Tandoori’s restaurant for calendar year 2011 by providing his accountant, who prepared the corporate tax returns, with information concerning the gross receipts of the business. The return reported that the gross receipts for the calendar year 2011 were the sum of $738,358 and that the total amount of tax due was $4,686. The gross receipts of Tandori’s restaurant for the calendar year 2011 were actually $1,052,372.89, with taxes due to the IRS totaling $48,952.
In addition, Sabharwal similarly assisted with the preparation of a false and fraudulent corporate tax return for Tandoori’s restaurant for calendar year 2010. The total tax due was $95,063.The plea is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
Sentencing is scheduled for August 6, 2014 at 9:00 a.m. before Judge Skretny.
Amedisys Home Health Companies Agree to Pay $150 Million to Resolve False Claims Act AllegationsRead the Press Release
Amedisys Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program, the Department of Justice announced today. Amedisys, a Louisiana-based for-profit company, is one of the nation’s largest providers of home health services and operates in 37 states, the District of Columbia and Puerto Rico.
“It is critical that scarce Medicare home health dollars flow only to those who provide qualified services,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “This settlement demonstrates the department’s commitment to ensuring that home health providers, like other providers, comply with the rules and don’t misuse taxpayer dollars.”
The settlement announced today resolves allegations that, between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services. Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments. These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients.
Additionally, this settlement resolves certain allegations that Amedisys maintained improper financial relationships with referring physicians. The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that home healthcare providers may have with doctors who refer patients to them. The United States alleged that Amedisys’ financial relationship with a private oncology practice in Georgia – whereby Amedisys employees provided patient care coordination services to the oncology practice at below-market prices – violated statutory requirements.
“Combating Medicare fraud and overbilling is a priority for my office, other components of the Department of Justice, and United States Attorneys’ Offices across the country,” said Zane David Memeger, United States Attorney for the Eastern District of Pennsylvania. “We have recovered billions of dollars in federal health care funds from schemes such as the one alleged in this case. Those are health care dollars that should be spent on legitimate medical needs.”
“Home health services are a large and growing part of our federal health care system,” said Sally Quillian Yates, United States Attorney for the Northern District of Georgia. “Health care dollars must be reserved to pay for services needed by patients, not to enrich providers who are bilking the system.”
“Amedisys made false Medicare claims, depriving the American taxpayer of millions of dollars and unlawfully enriching Amedisys,” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama. “The vigorous enforcement work by assistant U.S. attorneys in my office, along with their colleagues in North Georgia, Eastern Pennsylvania, Eastern Kentucky and the Civil Division of the Justice Department, has secured the return of $150 million to the taxpayers and stands as a warning to future wrongdoers that we will aggressively pursue them.”
“This settlement represents a significant recovery of public funds and an important victory for the taxpayers,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “Fighting health care fraud and recovering tax payer dollars that fund our vital health care programs is one of the highest priorities for our district.”
Amedisys also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General that requires the companies to implement compliance measures designed to avoid or promptly detect conduct similar to that which gave rise to the settlement.
“Improper financial relationships and false billing, as alleged in this case, can shortchange taxpayers and patients,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “Our compliance agreement with Amedisys contains strong monitoring and reporting provisions to help ensure that people in Federal health programs will be protected.”
This settlement resolves seven lawsuits pending against Amedisys in federal court – six in the Eastern District of Pennsylvania and one in the Northern District of Georgia – that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. As part of today’s settlement, the whistleblowers – primarily former Amedisys employees – will collectively split over $26 million.
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 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 $19.2 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.
The United States’ investigation was conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division; the United States Attorneys’ Offices for the Eastern District of Pennsylvania, Northern District of Alabama, Northern District of Georgia, Eastern District of Kentucky, District of South Carolina, and Western District of New York; the Department of Health and Human Services’ Office of Inspector General; the Federal Bureau of Investigation; the Office of Personnel Management’s Office of Inspector General; the Defense Criminal Investigative Service of the Department of Defense; and the Railroad Retirement Board’s Office of Inspector General.
The lawsuits are captioned United States ex rel. CAF Partners et al. v. Amedisys, Inc. et al. 10-cv-2323 (E.D. Pa.); United States ex rel. Brown v. Amedisys, Inc. et al., 13-cv-2803 (E.D. Pa.); United States ex rel. Umberhandt v. Amedisys, Inc., 13-cv-2789 (E.D. Pa.); United States ex rel. Doe et al. v. Amedisys, Inc., 13-cv-3187 (E.D. Pa.); United States ex rel. Ognen et al. v. Amedisys, Inc. et al. 13-cv-4232 (E.D. Pa.); United States ex rel. Lewis v. Amedisys, Inc., 13-cv-3359 (E.D. Pa.); and United States ex rel. Natalie Raven et al. v. Amedisys, Inc. et al., 11-cv-0994 (N.D. Ga.). The claims settled by the agreement are allegations only, and there has been no determination of liability.
Amedisys Home Health Companies Agree to Pay U.S. $150 Million to Resolve False Claims Act AllegationsRead the Press Release
BIRMINGHAM - Amedisys, Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program, the Department of Justice and U.S. Attorney Joyce White Vance announced today. Amedisys, a Louisiana-based for-profit company, is one of the nation’s largest providers of home health services and operates in 37 states, the District of Columbia, and Puerto Rico.
“It is critical that scarce Medicare home health dollars flow only to those who provide qualified services,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “This settlement demonstrates the Department’s commitment to ensuring that home health providers, like other providers, comply with the rules and don’t misuse taxpayer dollars.”
“Amedisys made false Medicare claims, depriving the American taxpayer of millions of dollars and unlawfully enriching Amedisys, Vance said. “The vigorous enforcement work by assistant U.S. attorneys in my office, along with their colleagues in North Georgia, Eastern Pennsylvania, Eastern Kentucky and the Civil Division of the Justice Department, has secured the return of $150 million to the taxpayers and stands as a warning to future wrongdoers that we will aggressively pursue them.”
The settlement announced today resolves allegations that, between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services. Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments. These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients.
Additionally, this settlement resolves certain allegations that Amedisys maintained improper financial relationships with referring physicians. The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that home healthcare providers may have with doctors who refer patients to them. The United States alleged that Amedisys’ financial relationship with a private oncology practice in Georgia – whereby Amedisys employees provided patient care coordination services to the oncology practice at below-market prices – violated statutory requirements.
Amedisys also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General that requires the companies to implement compliance measures designed to avoid or promptly detect conduct similar to that which gave rise to the settlement.
“Amedisys allegedly billed taxpayers for unnecessary services and ineligible patients,” said Derrick Jackson, Special Agent in Charge for the Inspector General’s Office of the U.S. Department of Health and Human Services region including Alabama. “Working with our law enforcement partners we will aggressively investigate and prosecute these home health cases.”
This settlement resolves seven lawsuits pending against Amedisys in federal court – six in the Eastern District of Pennsylvania and one in the Northern District of Georgia – that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. As part of today’s settlement, the whistleblowers – primarily former Amedisys employees – will collectively split over $26 million.
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 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 $19.2 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.
The United States’ investigation was conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division, the United States Attorneys’ Offices for the Eastern District of Pennsylvania, Northern District of Alabama, Northern District of Georgia, Eastern District of Kentucky, District of South Carolina, and Western District of New York, the Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, the Office of Personnel Management’s Office of Inspector General, the Defense Criminal Investigative Service of the Department of Defense, and the Railroad Retirement Board’s Office of Inspector General.
The lawsuits are captioned United States ex rel. CAF Partners et al. v. Amedisys, Inc. et al. 10-cv-2323 (E.D. Pa.); United States ex rel. Brown v. Amedisys, Inc. et al., 13-cv-2803 (E.D. Pa.); United States ex rel. Umberhandt v. Amedisys, Inc., 13-cv-2789 (E.D. Pa.); United States ex rel. Doe et al. v. Amedisys, Inc., 13-cv-3187 (E.D. Pa.); United States ex rel. Ognen et al. v. Amedisys, Inc. et al. 13-cv-4232 (E.D. Pa.); United States ex rel. Lewis v. Amedisys, Inc., 13-cv-3359 (E.D. Pa.); and United States ex rel. Natalie Raven et al. v. Amedisys, Inc. et al., 11-cv-0994 (N.D. Ga.). The claims settled by the agreement are allegations only, and there has been no determination of liability.
Amedisys Home Health Companies Agree to Pay U.S. $150 Million to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA - Amedisys Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program. Amedisys, a Louisiana-based for-profit company, is one of the nation’s largest providers of home health services and operates in 37 states, the District of Columbia, and Puerto Rico.
The settlement was announced today by United States Attorney Zane David Memeger and the Department of Justice. It resolves allegations that, between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services. Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments. These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients.
“Combating Medicare fraud and overbilling is a priority for my office, other components of the Department of Justice, and United States Attorneys’ Offices across the country,” said Memeger. “We have recovered billions of dollars in Federal health care funds from schemes such as the one alleged in this case. Those are health care dollars that should be spent on legitimate medical needs. This settlement should send a message to all healthcare providers in the Eastern District of Pennsylvania, including home health providers, that we will continue to dedicate our full attention and resources to pursuing similar violations of the False Claims Act.”
Additionally, this settlement resolves certain allegations that Amedisys maintained improper financial relationships with referring physicians. The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that home healthcare providers may have with doctors who refer patients to them. The United States alleged that Amedisys’ financial relationship with a private oncology practice in Georgia – whereby Amedisys employees provided patient care coordination services to the oncology practice at below-market prices – violated statutory requirements.
“It is critical that scarce Medicare home health dollars flow only to those who provide qualified services,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “This settlement demonstrates the Department’s commitment to ensuring that home health providers, like other providers, comply with the rules and don’t misuse taxpayer dollars.”
Amedisys also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General that requires the companies to implement compliance measures designed to avoid or promptly detect conduct similar to that which gave rise to this settlement.
“Improper financial relationships and false billing, as alleged in this case, can shortchange taxpayers and patients,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “Our compliance agreement with Amedisys contains strong monitoring and reporting provisions to help ensure that people in Federal health programs will be protected.”
This settlement resolves seven lawsuits pending against Amedisys in federal court – six in the Eastern District of Pennsylvania and one in the Northern District of Georgia – that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. As part of today’s settlement, the whistleblowers – primarily former Amedisys employees – will collectively split over $26 million.
For the United States Attorney’s Office for the Eastern District of Pennsylvania, this investigation and settlement were handled by Assistant United States Attorneys Gregory B. David and Eric D. Gill. The United States’ investigation was conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division; the United States Attorneys’ Offices for the Northern District of Alabama, Northern District of Georgia, Eastern District of Kentucky, District of South Carolina, and Western District of New York; the Department of Health and Human Services’ Office of Inspector General; the FBI; the Office of Personnel Management’s Office of Inspector General; the Defense Criminal Investigative Service of the Department of Defense; and the Railroad Retirement Board’s Office of Inspector General.
The claims settled by the agreement are allegations only, and there has been no determination of liability. The lawsuits are captioned United States ex rel. CAF Partners et al. v. Amedisys, Inc. et al. 10-cv-2323 (E.D. Pa.); United States ex rel. Brown v. Amedisys, Inc. et al., 13-cv-2803 (E.D. Pa.); United States ex rel. Umberhandt v. Amedisys, Inc., 13-cv-2789 (E.D. Pa.); United States ex rel. Doe et al. v. Amedisys, Inc., 13-cv-3187 (E.D. Pa.); United States ex rel. Ognen et al. v. Amedisys, Inc. et al. 13-cv-4232 (E.D. Pa.); United States ex rel. Lewis v. Amedisys, Inc., 13-cv-3359 (E.D. Pa.); and United States ex rel. Natalie Raven et al. v. Amedisys, Inc. et al., 11-cv-0994 (N.D. Ga.).
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 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 $19.2 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Amedisys Home Health Companies Agree to Pay $150 Million to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA - Amedisys Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program, the Department of Justice announced today. Amedisys, a Louisiana-based for-profit company, is one of the nation’s largest providers of home health services and operates in 37 states, the District of Columbia and Puerto Rico.
“Home health services are a large and growing part of our federal health care system,” said Sally Quillian Yates, United States Attorney for the Northern District of Georgia. “Health care dollars must be reserved to pay for services needed by patients, not to enrich providers who are bilking the system.”
“It is critical that scarce Medicare home health dollars flow only to those who provide qualified services,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “This settlement demonstrates the department’s commitment to ensuring that home health providers, like other providers, comply with the rules and don’t misuse taxpayer dollars.”
The settlement announced today resolves allegations that, between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services. Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments. These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients.
Additionally, this settlement resolves certain allegations that Amedisys maintained improper financial relationships with referring physicians. The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that home healthcare providers may have with doctors who refer patients to them. The United States alleged that Amedisys’ financial relationship with a private oncology practice in Georgia – whereby Amedisys employees provided patient care coordination services to the oncology practice at below-market prices – violated statutory requirements.
“Combating Medicare fraud and overbilling is a priority for my office, other components of the Department of Justice, and United States Attorneys’ Offices across the country,” said Zane David Memeger, United States Attorney for the Eastern District of Pennsylvania. “We have recovered billions of dollars in federal health care funds from schemes such as the one alleged in this case. Those are health care dollars that should be spent on legitimate medical needs.”
“Amedisys made false Medicare claims, depriving the American taxpayer of millions of dollars and unlawfully enriching Amedisys,” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama. “The vigorous enforcement work by assistant U.S. attorneys in my office, along with their colleagues in North Georgia, Eastern Pennsylvania, Eastern Kentucky and the Civil Division of the Justice Department, has secured the return of $150 million to the taxpayers and stands as a warning to future wrongdoers that we will aggressively pursue them.”
“This settlement represents a significant recovery of public funds and an important victory for the taxpayers,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “Fighting health care fraud and recovering tax payer dollars that fund our vital health care programs is one of the highest priorities for our district.”
Amedisys also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General that requires the companies to implement compliance measures designed to avoid or promptly detect conduct similar to that which gave rise to the settlement.
“Improper financial relationships and false billing, as alleged in this case, can shortchange taxpayers and patients,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “Our compliance agreement with Amedisys contains strong monitoring and reporting provisions to help ensure that people in Federal health programs will be protected.”
This settlement resolves seven lawsuits pending against Amedisys in federal court – six in the Eastern District of Pennsylvania and one in the Northern District of Georgia – that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. As part of today’s settlement, the whistleblowers – primarily former Amedisys employees – will collectively split over $26 million.
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 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 $19.2 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.
The United States’ investigation was conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division; the United States Attorneys’ Offices for the Eastern District of Pennsylvania, Northern District of Alabama, Northern District of Georgia, Eastern District of Kentucky, District of South Carolina, and Western District of New York; the Department of Health and Human Services’ Office of Inspector General; the Federal Bureau of Investigation; the Office of Personnel Management’s Office of Inspector General; the Defense Criminal Investigative Service of the Department of Defense; and the Railroad Retirement Board’s Office of Inspector General.
The lawsuits are captioned United States ex rel. CAF Partners et al. v. Amedisys, Inc. et al. 10-cv-2323 (E.D. Pa.); United States ex rel. Brown v. Amedisys, Inc. et al., 13-cv-2803 (E.D. Pa.); United States ex rel. Umberhandt v. Amedisys, Inc., 13-cv-2789 (E.D. Pa.); United States ex rel. Doe et al. v. Amedisys, Inc., 13-cv-3187 (E.D. Pa.); United States ex rel. Ognen et al. v. Amedisys, Inc. et al. 13-cv-4232 (E.D. Pa.); United States ex rel. Lewis v. Amedisys, Inc., 13-cv-3359 (E.D. Pa.); and United States ex rel. Natalie Raven et al. v. Amedisys, Inc. et al., 11-cv-0994 (N.D. Ga.). The claims settled by the agreement are allegations only, and there has been no determination of liability.
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/.
Allegany County Business Owners Agree to Forfeit Almost $174,000 to Settle Allegations That They Sold Synthetic DrugsRead the Press Release
Operated Puff & Stuff Stores at Three Locations in Cumberland and LaVale
Baltimore, Maryland – Charles and Traci Casey, the owners of Puff & Stuff stores in Cumberland and LaVale, Maryland, have agreed to forfeit $173,988.61, to settle claims that they sold synthetic drugs at their stores.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and the members of the Allegany County Combined Criminal Investigations Task Force (C3I),Colonel Marcus L. Brown, Superintendent of the Maryland State Police, Cumberland Police Chief Charles H. Hinnant, Allegany County Sheriff Craig Robertson; Frostburg Police Chief Royce C. Douty, Frostburg University Chief of Police Cindy R. Smith, and Allegany County State’s Attorney Michael O. Twigg.
According to the settlement agreement and complaint for forfeiture, in April 2012, the Maryland State Police received complaints about a business called “Puff & Stuff,” that operated in Cumberland. The complaints stated that the business is a “head shop,” (a business that sells drug-related paraphernalia including smoking devices and other related items) and sold synthetic drugs. The synthetic drugs are often labeled as different brands, but they are commonly referred to as “spice.” As set forth in the complaint, what the Caseys were selling as “spice” was leafy vegetable matter sprayed with chemicals that have a pharmacological effect on the human body that is similar to that of marijuana. Puff & Stuff currently operates at two locations in Cumberland and another in LaVale, Maryland. A Maryland State Police Task Force initiated an investigation and conducted five controlled purchases of spice from Puff & Stuff stores beginning on April 23, 2012 through February 27, 2013. As a result of the investigation, on March 7, 2013, officers executed five search and seizure warrants at the Casey’s residence; the three Puff & Stuff store locations; and for two of the Casey’s bank accounts, seizing a total of $259,988.61 in cash and numerous packets of spice.Under the terms of the settlement agreement, the Government has agreed to release $86,000 of the seized funds and the Caseys have agreed to withdraw their claims to the remaining $173,988.61. In addition, the Caseys have agreed to stop selling any substances marked or distributed as “potpourri,” “spice,” or “bath salts.”
The claims settled by this agreement are allegations, and there has been no determination of liability.
United States Attorney Rod J. Rosenstein praised the DEA and Allegany County Combined Criminal Investigations Task Force (C3I), comprised of the Maryland State Police, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Frostburg University Police Department and Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Stefan D. Cassella, who handled the forfeiture.
Albuquerque Man Sentenced to Federal Prison for Robbing Western Commerce Bank in September 2013Read the Press Release
ALBUQUERQUE – Solas Jansen, 36, of Albuquerque, N.M., was sentenced today to 33 months in federal prison for his bank robbery conviction. Jansen will be on supervised release for three years after completing his prison sentence.
Jansen was arrested on Sept. 29, 2013, based on a criminal complaint alleging that he robbed the Western Commerce Bank branch located at 1910 Wyoming Blvd. NE in Albuquerque on Sept. 24, 2013. Jansen subsequently was charged with bank robbery in an indictment filed on Oct. 9, 2013.
On Dec. 17, 2013, Jansen entered a guilty plea to the indictment. Jansen admitted robbing the bank by presenting a demand note to a bank teller and taking money from the teller on Sept. 24, 2013. Jansen acknowledged that the demand note may have put the bank teller in fear of harm.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Additional Charges Filed Against a Local Businessman in a Bribery Scandal Involving Buffalo PoliceRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a superseding indictment adding two new charges against James Mazzariello, Jr., 58, of Marilla, N.Y. The new charges against Mazzariello accuse him of filing false tax returns, each of which carry a maximum penalty of three years in prison, a fine of $100,000 or both.
The defendant was originally charged in October 2013 along with his son, Adam Mazzariello, 33, and Christopher Mahoney, 29, for conspiring to pay bribes to City of Buffalo police officers. All three defendants face a maximum penalty of five years in prison on the conspiracy charge, a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that James Mazzariello, Jr. owns and operates Jim Mazz Auto, Inc. (“Jim Mazz Auto”) and National Towing, Inc (“National Towing”). The companies are involved in all aspects of the automobile towing and repair business, including collision repair work, mechanical repair work, towing and storage work, and the sale of used automobiles. Adam Mazzariello supervises towing services for the businesses and Christopher Mahoney serves in a managerial capacity for each of the businesses.
According to the indictment and superseding indictment, between August 2006 and May 2012, each of the defendants conspired to pay City of Buffalo police officers cash, in return for allowing Jim Mazz Auto tow truck drivers to tow damaged motor vehicles from accident scenes. In furtherance of the conspiracy, each defendant paid police officers cash, or caused Jim Mazz Auto tow truck drivers to pay cash, to City of Buffalo police officers. James Mazzariello, Jr. is further accused of filing false corporate tax returns and false personal tax returns for calendar years 2009 and 2010.
The indictment is the culmination of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, the New York State Department of Motor Vehicles Criminal Division, under the direction of Owen McShane, Director of Investigations, the New York State Department of Taxation and Finance Criminal Investigations Division, under the direction of Upstate Chief of Investigations Pat Simet, the New York State Department of Financial Services Criminal Investigations Unit, under the direction of Director Frank Orlando, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.8 Weslaco Men Enter Guilty PleasRead the Press Release
McALLEN, Texas - A total of eight men residing in Weslaco have entered guilty pleas to conspiracy to possess with the intent to distribute narcotics, announced U.S. Attorney Kenneth Magidson.
Tomas Reyes Gonzalez aka “El Gallo,” 37, Eloy Gonzalez, 39, Hector Rodriguez Jr., 37, Hector Rodriguez Sr., 61, Federico Rodriguez, 27, Miguel Placencia III, 28, Jamail Thomas, 27, William Champion Gonzalez, 22, all of Weslaco, entered their guilty pleas just a short time ago in McAllen federal court. Reyes Gonzalez also pleaded to one count of conspiring to launder money as did a ninth defendant - Francisco Rios, 40, from Atlanta, Ga.
The investigation revealed that from 2007 to 2013, Reyes Gonzalez headed a drug trafficking organization responsible for the distribution of thousands of kilograms of marijuana and hundreds of kilograms of cocaine. The narcotics were transported from the Rio Grande Valley to Arkansas, Tennessee, Alabama and Georgia. Reyes Gonzalez used the resulting drug proceeds to purchase properties. He also provided some of proceeds to former Hidalgo County Sheriff Lupe Trevino and former Hidalgo County Sheriff’s Office Commander Jose Padilla.
U.S. District Judge Randy Crane, who accepted the pleas today, has set sentencing for July 17, 2014. At that time, those convicted of the drug charge will face a maximum of life imprisonment along with a potential fine up to $10 million. Reyes Gonzalez will also face a maximum of 20 years imprisonment and a $500,000 (or twice the amount of the proceeds) for the conspiracy to launder money as will Rios for his conviction.
The investigation leading to the charges was conducted by Drug Enforcement Administration, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation and Texas Department of Public Safety, Rangers Division. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.
22 April 2014
Utica Man Sentenced to 63 Months Incarceration Following Conviction on Drug ChargesRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announced that DEAN STEPPELLO, was sentenced before the Honorable Norman A. Mordue in U.S. District Court in Syracuse, New York to 63 months incarceration following his conviction of federal felony drug charges. STEPPELLO was also ordered to serve a three year term of supervised release following his term of incarceration and to pay a $200 special assessment.
STEPPELLO, 43, of Utica, New York was convicted on September 19, 2013, of two counts of Possession of Cocaine with Intent to Distribute following a four day jury trial. The jury also found he possessed over 500 grams of cocaine, requiring a mandatory minimum sentence of five years imprisonment.
The defendant was arrested by members of the New York State Police Community Narcotics Enforcement Team (“CNET”) in Utica as he attempted to deliver four ounces of cocaine. A subsequent search of the defendant’s residence resulted in the recovery of an additional pound and three quarters of cocaine, drug paraphernalia, a shotgun and four thousand dollars in cash.
The case was investigated by the New York State Police Community Narcotics Enforcement Team and was prosecuted by Assistant U.S. Attorneys Richard R. Southwick and Tamara B. Thomson. The Oneida County District Attorney’s Office also assisted in the prosecution of this matter.
U.S. Attorney's Office and U.S. Marshals Service Join DEA for Drug Take-Back DriveRead the Press Release
SHREVEPORT, La.–United States Attorney Stephanie A. Finley and the U.S. Marshals Service are teaming up with the Drug Enforcement Administration (DEA) to promote the National Prescription Drug Take-Back Day. A local event will be held at the federal courthouse in Shreveport from Wednesday, April 23rd through Friday, April 25th. The courthouse is located at 300 Fannin Street and will serve as a drop location to give the public an opportunity to rid their homes of unused or expired prescription drugs and medicines. This event is a kick off to the eighth annual National Prescription Drug Take-Back Day which will be held this Saturday, April 26th, and is sponsored by the DEA and more than 4,200 national, tribal and community law enforcement partners nationwide.
The National Prescription Drug Take-Back Day aims to provide a safe, convenient and responsible means of disposing of prescription drugs, while also educating the general public about the potential for abuse of medications. Unused medications in homes create a public health and safety concern because they are highly susceptible to accidental ingestion, theft, misuse, and abuse. DEA reports that almost twice as many Americans (6.8 million) currently abuse prescription drugs than the number of those using cocaine, hallucinogens, heroin, and inhalants combined, according to the 2012 National Survey on Drug Use and Health. And more Americans died in 2010 from overdoses of prescription medications (22,134, including 16,651 from narcotic painkillers) than from motor vehicle accidents, says the Centers for Disease Control and Prevention. Studies show that the majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
Rates of prescription drug abuse in the United States are alarmingly high,” Finley stated. “DEA reported that last October, Americans turned in 324 tons (over 647,000 pounds) of prescription drugs, and since DEA’s first National Drug Take-Back event in September of 2010, consumers have disposed of over 3.4 million pounds of unwanted medication. We are excited to partner with the U.S. Marshals Service during this local event to help DEA promote their national initiative on Saturday. We hope that Louisiana citizens take this opportunity to safely dispose of prescriptions and medications that would normally get flushed or discarded in a landfill, and in turn help reduce the harm they cause to the public, environment and wildlife.”
“We greatly appreciate the outstanding support we are receiving from the U.S. Attorney’s Office and the U.S. Marshals Service,” said Joseph Shepherd, Assistant Special Agent in Charge of the Drug Enforcement Administration. “This ongoing initiative truly is a collaborative community effort addressing the serious problem of prescription drug abuse. By offering safe and secure options for our citizens to dispose of their unwanted prescription drugs, we are reducing the threat that these substances pose to public health.”
DEA will have over 5,600 collection sites across the country on Saturday, April 26th, for those who are interested in bringing their unused or expired prescription drugs for proper disposal. Only pills and other solids, like patches, can be brought to the collection sites – liquids and needles or other sharp objects will not be accepted. The collections sites will be open between 10:00 a.m. and 2:00 p.m. local times. The service is free and anonymous, no questions asked.
The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they enter their zip code, or they can call 800-882-9539. The U.S. Marshals will be at the Shreveport location this week on Wednesday through Friday to supervise the drop off program at the federal courthouse.
U.S. Attorney Booth Goodwin, Kanawha Co. Sheriff's Dept. to Host Prescription Drug Take-back Kickoff WednesdayRead the Press Release
***MEDIA ADVISORY***
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin and the Kanawha County Sheriff’s Department will host a National Prescription Drug Take-Back kickoff event on Wednesday, April 23, 2014, at 10:00 a.m. at the Kanawha County Sheriff’s Department detachment located at 6809 Ohio Avenue in St. Albans, West Virginia.
Wednesday’s kickoff event will promote awareness of the eighth National Prescription Drug Take-Back Day, which will be held Saturday, April 26, 2014. As part of West Virginia’s participation in the prescription drug collection effort, the U.S. Drug Enforcement Administration and other partners will collect expired, unused and unwanted prescription drugs at several designated drop-off sites throughout the state on April 26, 2014 from 10 a.m. until 2 p.m. Past take-back events have collected a total of more than 13 tons of unwanted prescription drugs in West Virginia and 1,733 tons nationwide. For a complete list of collection locations, please visit: www.dea.gov.
PRESCRIPTION DRUG TAKE-BACK KICKOFF EVENT - Kanawha County Sheriff’s Department, St. Albans Detachment
WHO: United States Attorney Booth Goodwin
Chief Deputy Mike Rutherford, Kanawha County Sheriff’s Department
WHERE: Kanawha Sheriff’s Department Detachment
6809 Ohio Avenue
St. Albans, WV
WHEN: Wednesday, April 23, 2014 at 10:00 a.m.Two Former S.C. Police Officers Charged with Using Unreasonable ForceRead the Press Release
The Department of Justice announced that a federal grand jury in Florence, S.C., returned a two-count indictment today charging Eric Walters and Franklin Brown, both former police officers with the City of Marion Police Department, with using unreasonable force against a female citizen.
Walters and Brown have each been charged with one count of deprivation of rights under color of law, specifically alleging that, while acting as police officers, each defendant used unreasonable force on the victim, resulting in bodily injury. The indictment alleges that on April 2, 2013, Walters and Brown each used their respective tasers multiple times on the victim.
If convicted, each defendant faces a statutory maximum sentence of 10 years in prison.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the Myrtle Beach, S.C., Division of the FBI. It is being prosecuted by Trial Attorneys Nicholas Murphy and Henry Leventis for the Justice Department’s Civil Rights Division and U.S. Attorney Bill Nettles and Assistant U.S. Attorney John Potterfield for the District of South Carolina.