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Tuesday 25 February 2014
Man Found Guilty of Stabbing Three Women in PoplarRead the Press Release
The United States Attorney's Office today announced that after less than an hour of deliberation, a federal jury has found 31-year-old Robert Lewis Burshia guilty of stabbing three women at a residence in Poplar, Montana on March 6, 2013. Following a day and half long trial before U.S. District Court judge Brian M. Morris, the jury convicted Burshia of all four counts in the indictment: three counts of assault with a a dangerous weapon, and one count assault resulting in serious bodily injury.
At trial, Assistant U.S. Attorney Laura Weiss presented evidence that on the evening of March 6, 2013, Burshia appeared at a residence in Poplar where he asked to use the bathroom. Burshia then joined three women at the residence who were sharing a bottle of Black Velvet. He left, then returned fifteen minutes later, having told one of the women he was using meth and wanted to drink. As two of the women were eating spagetti, Burshia took a shot from the bottle in the kitchen and began making claiming that the bottle of Black Velvet belonged to him. Burshia then pulled up his hood, put his hand in the pocket of his hoodie and pulled out a knife. Burshia then stabbed one of the women. A second woman tried to protect the first assault victim and Burshia stabbed her as well. The two women then ran from the house and hid in the garage. Burshia, who had been in the house before, went straight back to the bedroom where the third woman was sleeping with two young children, ages six and seven. Burshia kicked the door in and stabbed the third woman as she draped her body over the children to try to protect them. He then fled the house and was located by law enforcement a few doors down.
The three women were transported by ambulance to the emergency room. The first woman who was stabbed had to be transported to Billings, due to the severity of her injuries. It is estimated that she lost 10 percent of her blood. In surgery, the doctor located a stab wound that went directly into her stomach. Part of her stomach had to be removed in order to staple shut the stab wound.
Burshia faces a possible penalty on each of the four counts of 10 years in prison, a $250,000 fine, and three years supervised release. The terms of imprisonment on each count could run consecutively.
The investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Lockport Man Pleads Guilty to Drug ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced that Bobby Spencer, 59, of Lockport, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio to use of a communication facility to facilitate a drug felony. The charge carries a maximum penalty of four years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that from March, 2010 through August, 2010, the defendant used a cellular telephone to call co-defendant Eric Williams to facilitate the purchase of cocaine. Spencer then distributed the cocaine to others in the Lockport area.
Spencer is one of 24 defendants convicted as a result of this drug investigation.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Agent in Charge, New York Field Division, and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.Leader of Massive Real Estate Fraud Scheme Sentenced to 22 Years in Prison for Fraud and Money LaunderingRead the Press Release
TRENTON, N.J. - An Ocean County, N.J., man was sentenced today to 264 months in prison for running a real estate investment fraud scheme that caused $200 million in losses and laundering the proceeds of the scheme, U.S. Attorney Paul J. Fishman announced.
Eliyahu Weinstein, a/k/a “Eli Weinstein,” a/k/a “Edward Weinstein,” a/k/a “Eddie Weinstein,” 38, of Lakewood, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano to two counts of an indictment charging him with conspiracy to commit wire fraud, and money laundering. Weinstein’s co-defendant, Vladimir Siforov, is charged in the indictment with three counts of wire fraud and remains a fugitive.
According to documents filed in this case and statements made in court:
From June 2004 through August 2011, Weinstein orchestrated – with the help of Siforov and others – a real estate investment fraud scheme headquartered in Lakewood that resulted in multimillion-dollar losses to victim investors.
To induce victims to invest, Weinstein and others made various types of materially false and misleading statements and omissions. Weinstein and others told victims that Weinstein’s inside access to certain real estate opportunities allowed him to buy a particular piece of property at a below-market price. Weinstein and others also told victims that their money would be used to purchase a specific property, and the property would be quickly resold – or “flipped” – to a third-party purchaser that Weinstein had lined up. Victims were also told that the victims’ money would be held in escrow until the closing of a purported real estate transaction.
Weinstein bolstered his lies by creating, and causing to be created, various types of fraudulent documents, including “show checks,” which Weinstein led victims to believe represented Weinstein’s investments in specific transactions, but which in fact were never deposited; forged checks, which had actually been negotiated for small amounts, but which Weinstein altered so as to appear worth millions of dollars; and various kinds of phony legal documents, including mortgages, and deeds.
Weinstein and others initially targeted victims from the Orthodox Jewish community to which Weinstein belonged, exploiting his standing in, and knowledge of, the customs and practices of this community to further the scheme. Weinstein abused the Orthodox community’s practice of engaging in transactions based on trust, and without paperwork, to obtain money from his victims without substantial written records. He would then falsely represent that specific real estate transactions existed, that the victims’ monies were used to fund those transactions, or that the victims’ profits from those transactions were being “rolled” into new investments. Weinstein also used a portion of the fraud’s proceeds to fund “charitable and religious contributions,” which he used to elevate his reputation within the Orthodox Jewish community.
By 2010, Weinstein had tarnished his reputation in the Orthodox Jewish community due to the massive losses caused by his fraud scheme and found it difficult to obtain more money to further the scheme from within the community. In April 2010, Weinstein and others began soliciting victims from outside of the Orthodox Jewish community, whom they defrauded out of additional millions of dollars.
Weinstein also used millions of dollars fraudulently obtained from his victims to fund his own lavish spending, including millions of dollars’ worth of antique Judaica and other artwork; a multimillion-dollar collection of jewelry and watches; gambling in Las Vegas and elsewhere; and Weinstein’s personal expenses, including millions of dollars in credit card bills, millions of dollars in legal bills, and luxury car-lease payments.
In addition to the prison term, Judge Pisano sentenced Weinstein to three years of supervised release. Judge Pisano ordered Weinstein to pay restitution of $215.4 million and forfeiture of $215.4 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s sentence. He also credited agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their important contributions to the investigation.
The government is represented by Assistant U.S. Attorneys Zach Intrater, Gurbir S. Grewal, Rachael A. Honig and Evan Weitz.
The charges and allegations against Siforov are merely accusations, and he is considered innocent unless and until proven guilty.
Defense counsel: Eric Creizman Esq., New York
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
14-064Keith Bowers Sentenced for Bomb ThreatsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Keith Bowers, aged 59, of Jessieville, Arkansas, was sentenced by U.S. District Court Judge Clay D. Land on Tuesday, February 25, 2014, to serve 1 year and 1 day in federal prison for transmitting threats in interstate commerce.Mr. Bowers entered a plea of guilty to the charge on December 18, 2013. As part of his plea agreement, Mr. Bowers admitted that on August 16, 2012, he placed two threatening telephone calls from Longview, Texas to Carmike Cinema’s Columbus, Georgia, headquarters. Using a Hispanic accent, Mr. Bowers expressed his displeasure with Carmike’s alleged practice of underpaying immigrant workers for cleaning services and stated that he was going to detonate an explosive during Carmike’s screening of a movie called “the Expendables”. At the time, Mr. Bowers was in the business of providing cleaning services to businesses, including Carmike, and was bitter about rival cleaning companies who allegedly hired illegal immigrant labor and were therefore able to undercut Mr. Bowers’ contract bids.
“We take threats seriously. In this case, Mr. Bowers not only caused unnecessary fear, he caused us to have to use precious law enforcement resources to track him down. He will have time to consider just how reckless he was as he sits in federal prison,” said U.S. Attorney Michael Moore.
The case was investigated by S/A Gordon Hurley and S/A Gabe Coulter with the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Melvin E. Hyde, Jr.Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Kansas Woman Indicted for Stealing $543,000 from EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bucyrus, Kan., woman was indicted by a federal grand jury today for embezzling more than $543,000 from her employer.
Susan Elise Prophet, 45, of Bucyrus, was charged in a 16-count indictment returned by a federal grand jury in Kansas City, Mo.
Prophet worked as a bookkeeper for Dorfman Plumbing Supply Company in Kansas City, Mo., from December 2012 until she was fired eight months later in August 2013. (The company has since been sold to Ferguson Enterprises, Inc., a national distributor of residential and commercial plumbing supplies.) Prophet was known to her employer as “Susan Morriss.” She touted that she was the wife of a federal law enforcement agent, which was true at or close to the time she was hired (Morriss is the last name of her now-estranged husband).
According to the indictment, Prophet engaged in a scheme to embezzle at least $543,034 from Dorfman Plumbing Supply Company that began soon after she was hired and continued until she was fired. Prophet allegedly wrote 105 unauthorized checks drawn on the company’s bank account for her benefit. Prophet was not an authorized signatory for the company, so she forged the owner’s signature on each of the checks.
Prophet allegedly opened multiple bank accounts using a bogus Social Security number and a misspelled variation of her last name. She paid her personal creditors with the checks, cashed the checks or deposited them into her personal accounts, the indictment says. Among those checks, the indictment says, were two checks payable directly to her landlord. She allegedly used the funds for her personal enrichment, purchasing trucks, a car, a motorcycle, travel, furniture, electronics, and other items. She also withdrew large amounts of cash, according to the indictment.
In addition to the fraudulently-opened bank accounts, the indictment alleges that Prophet took other steps to conceal her scheme, such as altering the company’s financial records. According to the indictment, Prophet altered the company’s ledger to show that vendors had been paid when, in fact, they had not been paid. When vendors attempted to collect, Prophet allegedly answered the calls and hid the claims from her employer. As vendors began to freeze the company’s accounts, the indictment says, Prophet created new checks and forged her employer’s name on the checks to pay the most critical invoices.
According to the indictment, Prophet spent at least $130,424 on vehicle-related purchases, including a 2013 Dodge Ram 1500 Sport; a 2013 Harley Davidson FLTRX Road Glide motorcycle; a 2008 Ford Focus; a 2005 Chevrolet Tahoe; and a 2003 Chevrolet Trailblazer. She allegedly shared the vehicles with her boyfriend and adult children. Prophet withdrew at least $86,000 from her accounts, the indictment says, and wrote nearly $21,000 in checks to herself or to cash. She allegedly used the embezzled funds to pay her rent and pay down her debts, and allegedly spent at least $15,096 at restaurants, $12,743 on travel, $6,703 on electronics, and $9,221 at Nebraska Furniture Mart.
Today’s indictment charges Prophet with two counts of bank fraud, one count of wire fraud, one count of money laundering and 11 counts of aggravated identity theft.
The indictment also contains a forfeiture allegation, which would require Prophet to forfeit to the government any property derived from the proceeds of the alleged violations, including a money judgment of $543,034 the five vehicles.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI and the Kansas City, Mo., Police Department.Justice Department Announces Results of Investigation into the Death of Milton HallRead the Press Release
The Civil Rights Division of the U.S. Department of Justice, the U.S. Attorney’s Office for the Eastern District of Michigan and the FBI announced today that they will not be pursuing federal criminal civil rights charges against the Saginaw Police Department (SPD) officers who shot and killed Milton Hall on July 1, 2012. After a thorough investigation, federal authorities have determined that this tragic event does not present sufficient evidence of willful misconduct to lead to a federal criminal prosecution of the police officers involved.
The Civil Rights Division, the U.S. Attorney’s Office, and the FBI conducted an independent investigation that carefully considered all of the evidence. During the investigation, prosecutors thoroughly reviewed the criminal investigation previously conducted by the Michigan State Police in conjunction with the Saginaw County Prosecutor’s Office and the Michigan Attorney General’s Office. State authorities collected the physical evidence at the scene; photographed the scene; interviewed the two non-shooting SPD officers and dozens of eyewitnesses; acquired the patrol car dashcam and civilian videos of the incident; gathered the dispatch logs, 911 calls and other investigative materials related to the incident; obtained the involved officers’ police reports; and conducted a ballistics and autopsy examination. At the conclusion of the state investigation, the Saginaw County Prosecutor and the Michigan Attorney General declined to prosecute any of the SPD officers involved in the incident.
In addition to reviewing the evidence previously collected, FBI agents interviewed a number of witnesses who had not been interviewed during the state investigation, including individuals whose names were provided to prosecutors by Hall’s family.
To pursue prosecution under Section 242 in the U.S. Code, the applicable criminal civil rights statute, the government would have to prove beyond a reasonable doubt that the SPD officers deprived Hall of his constitutional right to be free from an unreasonable use of force. The government would also have to establish beyond a reasonable doubt that the officers acted willfully, that is, for the specific purpose of violating the law. Law enforcement actions based on fear, panic, misperception or even poor judgment do not constitute willful conduct prosecutable under the statute.
The evidence in this case shows that on July 1, 2012, SPD officers responded to the Riverview Plaza in Saginaw, Mich., after receiving a 911 call about a confrontation between a man, later identified as Hall, and a clerk at a Mobil gas station. An SPD sergeant was the first officer to arrive at the scene, where she located Hall in the plaza’s parking lot and saw that he was carrying a knife with an approximately three-inch blade. After encountering Hall and seeing that he was armed with a knife, the sergeant requested backup. When the second officer arrived, Hall approached that officer’s patrol car and jabbed the hood of the vehicle with a knife. The six remaining SPD officers on duty that day, including a K-9 officer and his dog, reported to the plaza, approached Hall and repeatedly ordered him to drop his knife. Hall did not comply with the officers’ commands, and verbally responded that he would not put the knife down. While the SPD officers came together on the scene, the K-9 officer and his dog approached and retreated from Hall several times. During this time, Hall was intermittently shifting his feet and getting into and out of a crouching stance. When Hall, with the knife still in his hand, moved toward the K-9 officer and his dog, six SPD officers fired at him and fatally wounded him.
Two SPD patrol car dashcams captured a video recording, with no audio, of much of the encounter between Hall and the SPD officers. The dashcams on the other SPD patrol cars were either not operational or not activated during this incident. Several civilians witnessed the incident and recorded portions of it on their cellular phones.
After the shooting, all of the SPD officers at the scene wrote reports. In these reports, the officers who discharged their weapons explained that they did so because they believed Hall posed an imminent threat to the officers’ safety.
A fter a careful review of all of the evidence, experienced prosecutors from the Criminal Section of the Civil Rights Division and the United States Attorney’s Office for the Eastern District of Michigan have determined that t he evidence in this case is insufficient to prove , beyond a reasonable doubt, that the SPD officers willfully shot Hall for an unlawful purpose, rather than for their stated purpose of preventing Hall from harming SPD staff. Even if the officers were mistaken in their assessment of the threat posed by Hall, this would not establish that the officers acted willfully, or with an unlawful intent, when using deadly force against Hall. Accordingly , this tragic event does not present sufficient evidence of willful misconduct to give rise to a federal criminal prosecution of the police officers involved.
Jury Convicts Macoupin County Man for Possession of Heroin with Intent to DistributeRead the Press Release
Springfield, Ill. – Sentencing is scheduled in June 2014, for a Mt. Olive, Ill., man, after a jury convicted him of possession of heroin with intent to distribute. The jury deliberated for approximately 30 minutes on Feb. 20, 2014, before finding David L. Simpson, 51, guilty.
During the trial, which began on Monday, Feb. 18, and in pre-trial hearings, the government presented evidence that established that Simpson traveled to St. Louis to pick up heroin three to four times a day from at least April to mid-June 2013, totaling more than 100 grams. Evidence further established that Simpson brought the heroin to Mt. Olive and distributed the heroin to customers in Litchfield, Mt. Olive, Staunton, and Wilsonville, Ill.
At sentencing, scheduled on June 9, 2014, at 10:00 a.m., Simpson faces a statutory maximum penalty of 30 years in prison because the government has filed notice that Simpson has a prior felony drug conviction from 2011 in Will County, Ill. Simpson has remained in law enforcement custody since his arrest in June 2013.
Law enforcement agencies participating in this investigation include the DEA, Springfield Division; the Mt. Olive Police Department; and task force officers assigned to DEA by the Illinois Attorney General’s Office and the FBI. The Litchfield Police Department and the Illinois State Police also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass is prosecuting the case in the Central District of Illinois, Springfield Division.
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 Judge Strong in Great Falls on February 24, 2014 and entering please of Not Guilty were:
- VICTOR MICHAEL VIELLE, a 31-year-old resident of Browning, appeared on charges of second degree murder. If convicted of the charge contained in the indictment, VIELLE faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. PACER Case Reference: 13-110
Appearing before U.S. Magistrate Judge Strong in Great Falls on February 25, 2014 and entering pleas of Not Guilty were:
- KENNETH WAYNE DAVIS, a 58-year-old resident of Cascade, appeared on charges of conspiracy with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, felon in possession of a firearm, and drug user in possession of a firearm. If convicted of the most serious offenses charges in the indictment, DAVIS faces 40 years imprisonment, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Drug Enforcement Administration and the HIDTA Task Force. PACER Case Reference: 14-11
- RUEBEN FRIESEN, a 33-year-old resident of Alberta, Canada, appeared on charges of travel with intent to engage in illicit sexual conduct. If convicted of the most serious offense charged in the indictment, FRIESEN faces 30 years imprisonment, $250,000 in fines and lifetime supervised release. The case was investigated by Homeland Security Investigations and the Great Falls Police Department. PACER Case Reference: 14-10
- WILLIAM TAYLER KIRKALDIE, a 31-year-old resident of Fort Belknap, appeared on charges of domestic abuse by a habitual offender. If convicted of the offense charged in the indictment, KIRKALDIE faces 5 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-12
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.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, 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 Charges Philadelphia Man in Multiple Bank HeistsRead the Press Release
PHILADELPHIA - William Butler, 48, of Philadelphia, PA, was charged today by Indictment with committing four armed bank robberies at two separate Center City banks, in January 2014, announced United States Attorney Zane David Memeger.
According to the indictment, Butler was armed with a knife when he robbed the Republic Bank branch, at 1818 Market Street, on January 17th and January 27th and the Citizens Bank branch, at 1701 John F. Kennedy Boulevard, on January 24th and January 28th. Butler took just over $11,000 total in the four robberies.
If convicted, Butler faces a maximum possible sentence of 100 years in prison, five years of supervised release, a $1 million fine, and a $400 special assessment.
The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Anita Eve.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Huntington Heroin Dealer Sentenced to Four Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced yesterday to four years in federal prison for his role in a heroin distribution conspiracy, announced United States Attorney Booth Goodwin. Forty-nine-year-old Rickey Ray Rockwell previously pleaded guilty in November 2013 to conspiracy to distribute heroin before Chief United States District Judge Robert C. Chambers in Huntington federal court.
Between November 2010 and July 2011, Rockwell participated with convicted felons Kevin Luthor Robinson and Jermaine D. Dickerson to distribute heroin in and around the Huntington area.
Rockwell told police that during the illegal drug scheme, he controlled the door to a Huntington residence that was primarily used as a place to distribute illegal drugs. Rockwell also completed illegal heroin transactions on behalf of Robinson and Dickerson. Afterward, Rockwell gave the drug proceeds to his co-conspirators at the completion of the drug transactions.Robinson, 44, was sentenced to 11 years and three months in prison in March 2013 for his role in the illegal drug conspiracy. Dickerson, 36, was also sentenced in March 2013 to 15 years and nine months in federal prison. Robinson and Dickerson, both of Columbus, previously pleaded guilty in December 2012 to conspiracy to distribute heroin and 28 grams or more of crack cocaine.
During the scheme, Robinson and Dickerson arranged frequent trips to Columbus to purchase heroin and cocaine. The illegal drugs were then brought to Huntington and sold. The defendants also utilized several Huntington residences to store, prepare and package illegal drugs during the fall of 2010 through July 2011.
This case was investigated by the United States Drug Enforcement Administration, the Huntington Police Department, and the Appalachia High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. 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 in communities across the Southern District.Hogsett Announces Sentence for Drug Conspiracy and Money LaunderingRead the Press Release
Daviess County woman to serve a decade in prison for methamphetamine sales
EVANSVILLE - Joseph H. Hogsett, United States Attorney, announced today that Ruby Ramsey, 56, of Daviess County, Indiana, was sentenced to 120 months (10 years) imprisonment by U.S. District Chief Judge Richard L. Young for conspiracy to distribute methamphetamine and money laundering.
“Dealing drugs and violence seem to go hand-in-hand, in our Hoosier communities,” Hogsett said. “Making our neighborhoods safer by putting the worst of the worst in federal prison is one of my top priorities.”
Ramsey pleaded guilty to the charges on January 23, 2014. At the time of her guilty plea, Ramsey admitted that she was involved in sending parcels containing methamphetamine to southwestern Indiana and distributing large amounts in the Pike County area. She also deposited approximately $3,000 at a bank in Washington, Indiana from proceeds of methamphetamine sales.
This case was the result of an investigation by the Drug Enforcement Administration and the Internal Revenue Service.
According to Assistant U.S. Attorney, Lauren M. Wheatley, who prosecuted the case for the government, Judge Young also imposed 5 years of supervised release.
Frankfort Man Sentenced to 87 Months for Receiving Child PornographyRead the Press Release
FRANKFORT, KY - A Franklin County man, who previously admitted to downloading numerous images of child pornography, was sentenced to 87 months in federal prison.
On Monday, U.S. District Judge Gregory Van Tatenhove sentenced 43-year-old Dennis Hodge for receipt of child pornography. Under federal law, Hodge must serve at least 85 percent of his prison sentence and will be on supervised release for 20 years following the completion of his prison term.
Hodge admitted, during his guilty plea in October 2013, that he downloaded more than 100 images of child pornography using a computer at his Frankfort home. According to the plea agreement, the images depicted children, under 12 years of age, engaged in sexually explicit conduct and many were considered sadistic and violent in nature.
In October 2011, Kentucky State Police seized Hodge’s computer during the execution of a search warrant. Agents later performed a forensic examination of the computer and discovered the child pornography images.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye K. Turner, Special Agent in Charge, FBI, and Rodney Brewer, Kentucky State Police Commissioner, jointly announced the sentence today.
The investigation was conducted by the FBI and the Kentucky State Police. This case was prosecuted by the U.S. Attorney’s Office in Fort Mitchell, KY.
Former Wellington Resident Sentenced in Investment Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, announce that George Louis Theodule, 52, a former resident of Wellington, was sentenced to 150 months in prison, to be followed by three years of supervised release. Theodule previously pled guilty to wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the indictment, Theodule engaged in an investment fraud or “Ponzi” scheme, wherein he induced individuals to invest money with his companies, Creative Capital Consortium and A Creative Capital Concepts, based upon the representation that he would be able to double their money in 90 days, primarily by trading in stock options. Theodule, the indictment alleges, targeted the Haitian community in South Florida and elsewhere, forming “investment clubs” which attracted thousands of investors between late 2007 and late 2008. In reality only a small portion of investors’ money was placed into trading accounts – which invariably were depleted without showing any gains whatsoever. Rather, substantial funds were used to repay earlier investors, creating the appearance of investment success, and other funds were used by the defendant for his personal benefit. The scheme unraveled in early 2009 when the Securities and Exchange Commission obtained a restraining order and later an injunction to stop the alleged unlawful practices.
U.S. Attorney Wifredo A. Ferrer stated, “George Louis Theodule defrauded his victims out of millions of their hard-earned dollars. He did so by taking advantage of people who trusted him because of their cultural affinity. Such tactics are intolerable, especially given that some of his victims lost their entire life savings. This sentence should send a strong message to those who prey on the trust of others: you will get caught and justice will be served.”
“George Louis Theodule preyed on his connections within the Haitian community with offers too good to be true,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. Theodule now has 12 and a half years in prison to think about how he betrayed others.”
“Protecting Floridians from fraud, such as this, is one of our highest priorities and we are pleased with the outcome,” said OFR Commissioner Drew J. Breakspear. “We thank our partners in law enforcement for bringing this individual to justice. All potential investors are strongly encouraged to use due diligence when considering any financial product.”
In addition to the prison sentence, Theodule will be ordered to pay restitution to identified victims of the scheme. A restitution hearing has been scheduled for May 9, 2014.
Any victims of George Louis Theodule’s fraud who have not yet submitted a claim with the U.S. Probation Office are asked to contact Rosemary Williams at (305) 523-5455.
Mr. Ferrer commended the investigative efforts of the FBI and the Florida Office of Financial Regulation. This case is being prosecuted by Assistant U.S. Attorneys Roger H. Stefin and Carolyn Bell.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Union President Indicted for Embezzling $185,000Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former president of the union representing Jackson County Department of Corrections employees was indicted by a federal grand jury today for a wire fraud scheme in which he embezzled more than $185,000 from the union local.
Jesse E. Morgan, 38, of Kansas City, Mo., was charged in a 29-count indictment returned by a federal grand jury in Kansas City. Morgan was president of the American Federation of State, County and Municipal Employees (AFSCME) Local 1707 from 2008 through Oct. 20, 2012.
Today’s indictment alleges that Morgan engaged in a wire fraud scheme from Nov. 1, 2008, through Oct. 22, 2012, to steal from AFSCME Local 1707. The federal indictment charges Morgan with 29 counts of wire fraud.
According to the indictment, Morgan wrote $9,700 in unauthorized checks from the union local’s bank account, payable to himself. Morgan allegedly made $69,540 in electronic payments from the AFSCME Local 1707 bank accounts to others, for his own benefit. Morgan allegedly made $56,231 in unauthorized ATM withdrawals from AFSCME Local 1707 bank accounts. Morgan allegedly made $50,091 in unauthorized counter withdrawals from AFSCME Local 1707 bank accounts.
The indictment also contains a forfeiture allegation, which would require Morgan to forfeit to the government any property derived from the proceeds of the alleged wire fraud scheme.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Department of Labor – Office of Labor-Management Standards.
Former Sycamore Resident Indicted on Child Pornography ChargesRead the Press Release
ROCKFORD — A former Sycamore, Ill. resident was indicted today by a federal grand jury in Rockford for allegedly transporting and possessing child pornography. MICHAEL PODOLSKY, 26, now of Elkader, Iowa, was charged with two counts of transporting child pornography via the internet, and one count of possessing child pornography that had crossed state lines.
Transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, while possessing child pornography carries a maximum of 10 years in prison. If convicted, the actual sentence will be determined by a United States District Court Judge, guided by the United States Sentencing Guidelines.
The indictment was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Donald M. Thomas, Chief of the Sycamore Police Department. The government is represented by Assistant United States Attorney Michael D. Love.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former Rockford Physician Charged with FraudRead the Press Release
ROCKFORD — A former Rockford physician was indicted today by a federal grand jury in Rockford on two counts of making false statements in a bankruptcy case and three counts of mail fraud. The indictment alleges that LYNN Y. ZOIOPOULOS (also known as Lynn Shelton-Zoiopoulos, Lynn Y. Shelton, Lynn Yenko, Lynn Yenko Zoiopoulos, Lynn Yenko Shelton-Zoiopoulos, and Lynn Zoiopoulos), 58, now of Chicago, Ill., filed a Chapter 7 Bankruptcy Petition on August 11, 2009. As alleged in the indictment, Zoiopoulos failed to disclose that she had an interest in the estate of her deceased grandmother, and that she fraudulently concealed property from the bankruptcy trustee, creditors, and the United States Trustee. The indictment further alleges that Zoiopoulos made false statements on a bankruptcy schedule and a Statement of Financial Affairs, both of which were filed under penalty of perjury.
According to the indictment, Zoiopoulos was Executor of her deceased grandmother’s estate, in which she and her sister were beneficiaries. It is alleged Zoiopoulos devised a scheme to defraud the estate and her sister, by misappropriating hundreds of thousands of dollars of assets of the estate for her own personal use and benefit. It is further alleged that Zoiopoulos concealed her embezzlement of estate assets by not filing the required inventory, accounting, tax returns, and status reports for the estate, and falsely asserted to the Trustee of her bankruptcy case that the remainder of the estate’s assets were earmarked for her sister. It is also alleged that in carrying out the scheme, Zoiopoulos caused checks representing assets of the estate to be sent to her using the United States mail.
Each charge of mail fraud carries a maximum penalty of up to 20 years in prison, and each count of providing material false statements or documents under penalty of perjury in a bankruptcy case carries a maximum penalty of 5 years in prison. Each count also carries a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The judge may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
Members of the public are reminded that a criminal indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt of the defendant beyond a reasonable doubt.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Indictment
Former President of Galiano Career Academy Sentenced for Theft of Federal Funds, Obstruction of A Federal Audit, and Aggravated Identity TheftRead the Press Release
Orlando, FL – U.S. District Judge Roy B. Dalton today sentenced Michael Gagliano (50, Sanford) to four years in federal prison for theft of government property, obstruction of a federal audit, and aggravated identity theft. As part of his sentence, the court also ordered restitution and entered a money judgment in the amount of $2,105,761.00, the proceeds of the charged criminal conduct. Gagliano pleaded guilty on August 16, 2013.
According to court documents, Galiano Career Academy, Inc. (GCA), located in Altamonte Springs, was a for-profit trade school, offering career programs such as Medical Assistant, Medical Billing and Coding, Pharmacy Technician, Travel Counselor, and Travel and Tourism Specialist. Gagliano was GCA’s President and School Director. GCA was approved by the United States Department of Education (DOE) to administer Federal Student Assistance (FSA) programs, including the Federal Family Education Loan Program (FFEL) and the Federal Pell Grant program, which offered assistance to eligible students participating in post-secondary education at eligible institutions. GCA also received financial assistance for job training from Workforce Central Florida (WCF), a permanent placement agency, that helps employers connect with central Florida job seekers.
Gagliano used Columbus Academy, a high school “diploma mill” owned and operated by his wife, to make students eligible for FSA when they otherwise would not have been qualified. The GCA students who “graduated” from Columbus Academy were not eligible to receive the federal funds since these students did not receive a real high school education. From July 2007 through July 2010, 176 ineligible students who were enrolled at GCA, through Columbus Academy, received $1,221,878.00 in Direct Student Loan funds and $715,708.00 in Pell grant funds. Additionally, GCA received federal funds from the United States Department of Labor and WCF for ineligible students who attended GCA. As a result, GCA unlawfully received $168,175.00 in funds for unqualified students.
On July 13, 2009, the DOE Office of Federal Student Aid conducted a program review of GCA. The review was conducted to assess GCA’s administration of the financial aid programs in which it participated. During the program review, Gagliano tampered with student records and placed a recording device in the auditor’s room to secretly monitor their conversations. The investigation also revealed that GCA/Gagliano electronically submitted the name and social security number of a student to the DOE in order to obtain loan funds on the student’s behalf, well after the student stopped attending GCA. Gagliano falsified the student’s attendance records to indicate that she was in attendance at GCA.
This case was investigated by U.S. Department of Education, Office of Inspector General and the U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigation. It was prosecuted by Assistant United States Attorney David Haas.
Former Pittsburgh Chief Harper Sentenced to 18 Months in PrisonRead the Press Release
PITTSBURGH – Former Pittsburgh Police Chief Nathan E. Harper has been sentenced in federal court to 18 months imprisonment and one year of supervised release, and was ordered to pay $31,986 in restitution on his conviction of conspiracy and willful failure to file income tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Harper, 60, of Pittsburgh, Pa.
According to information presented to the court, Harper was the Chief of the City of Pittsburgh Bureau of Police. From 2009 to 2012, he caused checks received by the Special Events office of the Department to be diverted to two “off the books” accounts at the Greater Pittsburgh Police Federal Credit Union. Using Visa debit cards, Harper obtained over $31,000 in ATM withdrawals and debit purchases, all for his personal benefit. Harper also failed to file federal tax returns for the years 2008 to 2011.
“The vast majority of elected and appointed officials serve their constituents with integrity an honor,” stated U.S. Attorney Hickton. “But when those whom the public entrusts with authority place greed over good, they must be held accountable. It is our hope that through this prosecution we can shape the future of Pittsburgh by deterring other officials from stealing from taxpayers and by attracting honest public servants to office.”
Gary Douglas Perdue, Special Agent in Charge of the Pittsburgh Division of the Federal Bureau of Investigation, said, “Stemming public corruption is the FBI’s top criminal investigative priority. It will not be tolerated in our community – no matter the level, the amount, or the individuals involved. We invite the public to report information concerning public corruption to the FBI through the public corruption hotline at (412) 432-4122.”
“No public official gets a free pass to ignore the tax laws,” added Asst. Special Agent in Charge Ed Wirth of the IRS-Criminal Investigation. “The IRS-Criminal Investigation Division, together with our partner agencies and the Department of Justice will investigate and prosecute those who violate our tax system to ensure that everyone pays their fair share.”
Assistant United States Attorneys Robert S. Cessar and Lee J. Karl prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation for the investigation leading to the successful prosecution of Harper.
Former Okla. Jail Superintendents Convicted of Excessive Force Against InmatesRead the Press Release
Today, a federal jury in the U.S. District Court for the Eastern District of Oklahoma in Muskogee, Okla., convicted Raymond A. Barnes, 43, and Christopher A. Brown, 32, the former jail superintendent and assistant jail superintendent, respectively, of the Muskogee County Jail (MCJ) on multiple counts of civil rights offenses related to allegations of excessive force on inmates at MCJ on or between August 2009 and May 2011. Brown was also convicted of making material false statements to the FBI.
Both Barnes and Brown were found guilty of conspiring to violate the rights of inmates housed at MCJ by assaulting inmates themselves or by directing other jailers employed by MCJ to do so. Specifically, the defendants did or caused the following to be done: unjustifiably strike, assault, harm and physically punish inmates at MCJ who were restrained, compliant and not posing a physical threat; organize “meet and greets,” whereby jailers would scare, punish and harm incoming inmates from neighboring counties by throwing and slamming the handcuffed inmates to the ground upon their arrival at MCJ; threaten to fire MCJ employees if they reported abusive behavior directly to the sheriff or to outside law enforcement authorities; require and encourage MCJ jailers to write incident reports that falsely justified uses of force and contained misleading or inaccurate accounts of what had occurred when force was used; and perpetuate an environment within MCJ that allowed unlawful beatings and assaults against inmates to continue indefinitely and without consequence.
Both defendants were also convicted of violating the rights of an inmate identified as J.R. when MCJ jailers slammed and threw J.R. head-first to the ground while he was handcuffed. Barnes was additionally convicted of violating the rights of a second inmate, G.T., for similar conduct. Brown was acquitted of violating the rights of G.T.
In addition, Brown was convicted of one count of making material false statements to the FBI. Brown falsely claimed that, during meet and greets, the incoming inmate was ordered out of the transport vehicle and then “gently placed” on the ground. But in fact, Brown knew at the time of his statement to the FBI that during these meet and greets the MCJ jailers routinely threw and slammed inmates to the ground even though the inmates were restrained and posed no physical threat.
“Our Constitutional system of government requires this nation’s jailers to abide by the laws they enforce, and to protect the Constitutional rights of all persons in their custody,” said Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division. “Today’s verdict demonstrates that the Department of Justice will vigorously prosecute anyone who abuses their official power to harm the people in their custody.”
The defendants face a statutory maximum penalty of 10 years for each of the civil rights convictions. Brown faces a statutory maximum penalty of five years for making material false statements to the FBI.
This case was investigated by the Muskogee Resident Agency of the Oklahoma City Division of the FBI and prosecuted by Trial Attorneys Fara Gold and Dana Mulhauser of the Civil Rights Division.
Former Director of Finance of New Jersey-Based Toll Global Forwarding Admits Stealing $1.3 Million from the CompanyRead the Press Release
TRENTON, N.J. – The former director of finance of the Middlesex County-based integrated logistic services company Toll Global Forwarding today admitted stealing more than $1.3 million from her former employer through an elaborate false invoicing scheme, U.S. Attorney Paul J. Fishman announced.
Karen Sipes, 40, of Brick, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging her with wire fraud for her theft from the multi-national company based in Carteret, N.J. She was originally charged by complaint in November 2012.
According to documents filed in this case and statements made in court:
While Sipes was employed at Toll Global Forwarding (TGF) – from August 2010 through August 2012 – she was responsible for entering vendor transactions and invoices into TGF’s accounts payable accounting system and paying those vendors by preparing checks from TGF. As a result, Sipes had access to and significant control over TGF’s accounts payable accounting and bill payment systems.
In the false invoicing scheme, Sipes identified vendors with a high number of transactions and invoices in TGF’s accounting system. She admitted she would then create and input fake transactions and invoices for them, preparing checks payable to herself.
Sipes also admitted that she identified legitimate vendor transactions and invoices and changed vendors’ names to her name, making those checks payable to herself. She also used TGF checks to pay the credit card bill of a family member and accessed TGF’s accounting system to remove any record of the fraudulent transactions.
The wire fraud count to which Sipes pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. As part of her guilty plea, Sipes is required to pay restitution of $1,335,698.93 to Toll Global Forwarding. Sentencing is scheduled for July 29, 2014.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Courtney M. Oliva and Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-062
Defense counsel: Michael Critchley Sr. and Edmund DeNoia, Esqs., Roseland, N.J.
Former Bank Vice President Pleads Guilty to Attempted Online Enticement of A MinorRead the Press Release
WILMINGTON, Del. – Kirk A. Simmons, age 59, of Newark, Delaware, pled guilty today to Attempted Coercion and Enticement of a Minor, in violation of federal law. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the guilty plea following a hearing in the United States District Court for the District of Delaware, where Simmons will be sentenced by United States District Judge Leonard P. Stark on June 24, 2014.
Simmons faces a mandatory minimum sentence of ten years, and a maximum sentence of life, in prison. He also faces a fine of up to $250,000 and a term of supervised release following his prison sentence of at least five years to life. Simmons also will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school.
At the time of his arrest in this case, Simmons was employed as a Vice President, Market Information Manager II at Bank of America’s Newark, Delaware facility. Bank of America terminated Simmons’s employment following notification of his arrest and criminal conduct. According to his LinkedIn profile, at the time of his arrest, Simmons also was working as a “Professional private tutor” through WyzAnt Tutoring, “providing private in-home tutoring at the high school and college levels.”
According to the indictment and court documents, Simmons was arrested by the Delaware Child Predator Task Force on July 18, 2013, after he arrived at a Newark hotel to engage in sex acts with two persons he believed to be a 13-year-old girl and her biological father. Approximately one month earlier, in June 2013, Simmons responded to a “personals” advertisement for “fam love/taboo” on an adult social networking website. Simmons believed the advertisement had been posted by the father of a 13-year-old girl who the father would make available for sex with adult males. In fact, the “father” was actually an undercover Delaware State Police detective assigned to the Delaware Child Predator Task Force.
Over the course of the next month, Simmons and the undercover detective engaged in numerous online chat conversations in which Simmons indicated and graphically described that he wanted to engage in sexual activity with the purported “father” and his child. After a number of online conversations, Simmons and the “father” agreed to meet at a Newark hotel on July 18, 2013, where they both would engage in sex acts with the “13-year-old daughter.”
Shortly before that meeting, Simmons was under surveillance by the Delaware State Police and was observed driving directly from his workplace to the hotel. He was arrested by Child Predator Task Force members when he arrived in the hotel parking lot. In a recorded interview with a Delaware State Police detective, Simmons admitted that he intended to engage in sexual activity with the fictitious “father” and “13-year-old daughter” at the hotel. Simmons also admitted that he brought a digital camera with him to photograph the sexual activity.Following the plea hearing, United States Attorney Charles M. Oberly, III stated: “I want to thank the Delaware Child Predator Task Force for its outstanding work in this case. This was a time-intensive, month-long, online undercover investigation that resulted in the capture of a seemingly upstanding and successful businessman who planned to rape a child with her father’s help. I would also like to thank the U.S. Department of Homeland Security for its continued and successful partnership with our State law enforcement partners on this critically important work.”
"Protecting children from predators requires cooperation among law enforcement agencies," said Delaware State Prosecutor Kathleen Jennings. "That's why under Attorney General Biden's leadership the Delaware Child Predator Task Force, which is co-led by the Delaware Department of Justice and the Delaware State Police, regularly works across jurisdictional lines with local, state, and federal partners to track down and stop those who are seeking to hurt our kids."
"This case shows that exploitation of children has severe consequences for those who engage in these depraved activities,” said John Kelleghan, special agent in charge of HSI Philadelphia. “HSI is committed to investigating these cases, working alongside our agency partners to help protect the citizens of our neighboring communities.”
The case is being prosecuted by Assistant United States Attorney Edward J. McAndrew and investigated by the Delaware State Police and the United States Department of Homeland Security, Homeland Security Investigations.
Former AAU Coach Sentenced on Wire Fraud ChargesRead the Press Release
LYNCHBURG, VIRGINIA – A former AAU coach and mentor to a local college basketball star, who pled guilty in December, was sentenced this morning in the United States District Court for the Western District of Virginia in Lynchburg on a wire fraud charges.
Thomas Patric Boggs, 60, of Brookneal, Va., previously pled guilty to one count of wire fraud. This morning in U.S. District court, Boggs was sentenced to 57 months in federal prison and three years of supervised release. In addition, Boggs was ordered to pay over $380,000 to the victims of his fraud.
“Mr. Boggs exploited the trust placed in him by Travis Watson and turned it into a vehicle for fraud,” United States Attorney Timothy J. Heaphy said today. “He stole hundreds of thousands of dollars from Mr. Watson and caused harm that extends well beyond financial loss.”
Boggs has admitted that he met Travis Watson when Watson was a freshman in high school in Texas. During a trip to Lynchburg, Va. to play in an AAU tournament, Watson met the defendant, who welcomed Watson into his home. The two soon became close and through Boggs’ efforts, Watson was able to attend Oak Hill Academy where he continued to develop his basketball skills. Watson considered Boggs a mentor, coach and father figure.
Following high school, Watson attended and played basketball at the University of Virginia before playing professionally in Greece, Italy, Lithuania and other places in Europe.
The Government’s evidence established, and Boggs admitted, that during Watson’s time overseas, Boggs approached him and offered to invest a portion of Watson’s earnings to ensure financial security post-basketball. Boggs knew that due to the close personal nature of their relationship, Watson would trust him to invest his money wisely. Boggs instructed Watson how to wire money into a pair of accounts, and that Watson expected Boggs to invest that money for Watson’s benefit.
Between 2009 and 2011, Watson wired $357,965 to the accounts controlled by Boggs, who admitted that he used nearly all of the money sent by Watson to pay the personal expenses of Boggs and to pay family members. In addition, throughout the process, Boggs assured Watson that he was making sound investments and that he was going to make Watson a “millionaire.”
The investigation of the case was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Anthony Giorno and Laura Rottenborn prosecuted the case for the United States.
Florida-Based Oxycodone Suppliers Sentenced to Federal PrisonRead the Press Release
ROME, Ga. – Gerald Young and Rodney Strachan, two Florida men who supplied large amounts of the prescription narcotic Oxycodone to pill distributors in northwest Georgia, have been sentenced to prison.
“The significant sentences imposed reflect our office’s continued commitment to ending the illegal distribution of prescription painkillers in our community,” said United States Attorney Sally Quillian Yates. “The defendants sentenced today supplied a drug trafficking organization with tens of thousands of Oxycodone tablets. In recent years, the abuse of Oxycodone has risen to epidemic proportions, and fatal overdose rates continue to rise. We will pursue anyone involved in the illegal acquisition and distribution of pain killers, including unscrupulous doctors, pharmacists, and clinic owners.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “One of DEA’s top priorities are addressing the problem of the diversion and abuse of controlled pharmaceuticals. These pill peddling perpetrators trafficked scores of Oxycodone pills. Now, they are deserving of the prison term they received. This case was successful because of the unified efforts of our federal, state and local law enforcement partners.”
According to United States Attorney Yates, the charges and other information presented in court: An investigation by the Drug Enforcement Administration, the Lookout Mountain Judicial Circuit Drug Task Force, and the Catoosa County Sheriff’s Office, revealed that John Gregory Alvarez was the leader of a thirteen-person conspiracy to distribute Oxycodone and launder the proceeds of the illicit sales of the pills. This drug trafficking organization obtained the vast majority of its pills from Florida. Specifically, co-defendant Alvarez, and later co-defendants that he recruited, would travel to Florida on a monthly basis to obtain prescription Oxycodone painkillers from both Young and Strachan.
Young and Strachan stockpiled copious amounts of Oxycodone pills, which they would then provide to Alvarez and his co-conspirators on consignment. Members of the Alvarez organization would sell the pills for a profit, and then reinvest the proceeds into the organization by using the funds to pay for the previous month’s supply of narcotics. The reach of this organization’s illegal Oxycodone distribution included not only the northwest Georgia area, but also extended into Tennessee, West Virginia, and Kentucky. Investigators determined that this conspiracy was responsible for trafficking hundreds of thousands of Oxycodone pills.
Young, 69, of Ft. Lauderdale, Fla., and Strachan, 58, of Pompano Beach, Fla., were sentenced by United States District Judge Harold L. Murphy. Young was sentenced to ten years, one month in prison to be followed by three years of supervised release. Strachan was sentenced to nine years in prison to be followed by three years of supervised release. Both are the last defendants to be sentenced for their roles in this Oxycodone distribution ring based in Rossville, Ga.
For his role in leading the northwest Georgia drug trafficking organization, on October 21, 2011, Alvarez was sentenced to 21 years, ten months in prison to be followed by six years of supervised release.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
This case was investigated by Special Agents of the Drug Enforcement Administration, officers of the Lookout Mountain Judicial Circuit Drug Task Force, and deputies of the Catoosa County Sheriff’s Office.
Assistant United States Attorney C. Brock Brockington prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information 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 is www.justice.gov/usao/gan.
Florida Man to Serve 13 Months for Defrauding Thousands of Homeowners in $4 Million Home Loan Modification ScamRead the Press Release
BOSTON – A Florida man was sentenced today to serve 13 months in prison for defrauding thousands of homeowners in a $4 million nationwide home loan modification scheme.
United States Attorney Carmen M. Ortiz, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero made the announcement.
Vernell Burris Jr., 54, of Coconut Creek, Fla., was sentenced by U.S. District Court Judge Rya W. Zobel and ordered to serve two years of supervised release following his prison term. Two co-defendants, Christopher S. Godfrey, 44, of Delray Beach, Fla., and Dennis Fischer, 42, of Highland Beach, Fla., were each sentenced on Feb. 20, 2014, to serve 84 months in prison and three years of supervised release following their prison term.
On Nov. 28, 2012, Burris pleaded guilty, to conspiracy and nine counts of wire fraud.
Burris worked for Godfrey and Fischer, initially as a salesman and later as the sales manager. From January 2009 through May 2011, Burris, along with Godfrey, Fischer and others, operating under the name Home Owners Protection Economics Inc. (HOPE), made a series of misrepresentations to induce struggling homeowners to pay HOPE $400 to $2,000 in up-front fees in exchange for HOPE’s help obtaining federally-funded home loan modifications. The scheme generated over $4 million in revenues.
The conspirators misrepresented that, with HOPE’s assistance, the homeowner was guaranteed to receive a loan modification under the Home Affordable Modification Program (HAMP), which is part of the Troubled Asset Relief Program (TARP) and is a federally-funded, mortgage-assistance program. For example, the defendants routinely claimed that the homeowner had already been approved for a loan modification, provided phony “approval codes,” quoted new (and wholly fictitious) mortgage terms and due dates, touted their 98 percent past success rate and claimed that they were “underwriters” or were otherwise affiliated with the homeowners’ mortgage companies. HOPE also claimed that it would offer homeowners refunds in the unlikely event that they did not receive a loan modification.
In exchange for the up-front fees, HOPE sent its customers, including homeowners in Massachusetts, a do-it-yourself application package, which was virtually identical to the application that the government provides free of charge. The HOPE customers had no advantage in the application process, and, in fact, most of their applications were denied. Through these misrepresentations, HOPE was able to persuade thousands of homeowners to pay more than $4 million in fees.
The remaining defendant in the case, Brian Kelly, has pleaded guilty and is awaiting sentencing.The case was investigated by SIGTARP, and is being prosecuted by Assistant U.S. Attorney Adam Bookbinder of Ortiz’s Computer Crimes Unit and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section.
Federal Jury Finds Sarasota Convicted Felon Guilty of Firearm PossessionRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that a federal jury today found Tory Lenard James (32, Sarasota) guilty of being a felon in possession of a firearm. James faces a maximum penalty of ten years in federal prison. His sentencing hearing is scheduled for May 16, 2014.
According to testimony and evidence presented at trial, on July 25, 2013, members of the Sarasota Police Department executed a search warrant at James’s residence. Inside the home, law enforcement officers found a loaded .22 caliber pistol.
At the time of the incident, James was a convicted felon. His prior felonies include robbery and multiple drug charges. As a convicted felon, James is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Sarasota Police Department. It is being prosecuted by Assistant United States Attorneys Carlton C. Gammons and Shauna Hale.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improving the quality of life in communities where law enforcement efforts are focused.
Federal Inmate Pleads Guilty to Possession of Contraband WeaponsRead the Press Release
TERRE HAUTE– Joseph H. Hogsett, the United States Attorney, announced that Aeron Curtis Bush, 39, an inmate of the United States Penitentiary at Terre Haute, pled guilty to possession of 15 homemade contraband weapons, commonly referred to as “shanks” in a prison setting.
“Protecting our federal prison employees is a top priority of this Office,” said Hogsett. “We will not allow inmates to get the upper hand in the Bureau of Prisons.”
On August 25, 2012, officers at the penitentiary stopped Bush to conduct a random visual search. Upon searching Bush’s clothes, officers noticed homemade knife sheaths sewn into the inside of both his shorts and underwear. An officer then contacted the unit officer in Bush’s unit to secure Bush’s cell so it could be searched for weapons.
Officers searched the cell and located several pairs of shorts with sheaths sewn into the groin area. Upon inspection of the lower locker it was discovered that the rivets and bolts had been removed from the lower floor plate. Under this floor plate, 15 homemade metal and plastic weapons were discovered, along with multiple pieces of unsharpened metal. Bush was the only inmate assigned to this cell at the time.
Bush is currently imprisoned after being convicted of drug trafficking offenses in the Western District of Texas. His scheduled release for that conviction would have been May, 2018.
According to Assistant U.S. Attorney James M. Warden who is prosecuting the case, Bush faces an additional five years in prison upon sentencing.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on January 22, 2014:
Travon D. Russell, 22, of Fort Wayne, Indiana, is charged in a two count Indictment with being a felon in possession of a firearm on or about December 23, 2013, and maintaining a drug involved premise on or about December 12, 2013. The Indictment also alleges forfeiture of firearms, ammunition and a digital scale. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Drug Felon Sentenced to Twenty-Seven Years ImprisonmentRead the Press Release
HONOLULU – Jacob Drummondo-Farias, age 31, of Waialua, was sentenced yesterday by United States District Judge J. Michael Seabright to 324 months imprisonment for being a manager and supervisor of a conspiracy to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine between 2011 and January, 2012. Drummondo-Farias’ brother and co-defendant, Joshua Lew, 28, also of Waialua, earlier pled guilty to the same offense and will be sentenced on April 21, 2014.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that a federal jury found Drummondo-Farias, who has a prior federal felony drug conviction for distributing methamphetamine, guilty in November 2013, and that according to information presented at that trial Drummondo-Farias and Lew agreed with other individuals to distribute methamphetamine that was sent from California, via express mail services, to Honolulu during 2011 and 2012. The evidence also reflected that Drummondo-Farias arranged to have an express mail parcel with 890 grams of methamphetamine delivered to a Honolulu apartment in January 2012, but it was intercepted at the Honolulu International Airport by federal law enforcement authorities.
Drummondo-Farias faced a mandatory minimum sentence of 20 years imprisonment due to his prior federal drug felony conviction. The investigation which resulted in the charges in the case was conducted by the Drug Enforcement Administration, Hawaii Airport Task Force and the United States Postal Inspection Service. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Distributing Child Pornography Lands Huntsville Man in Federal PrisonRead the Press Release
HOUSTON – Reed Christopher LeBlanc, 20, a former resident of Huntsville, will now be serving a federal prison sentence of nearly 11 years following his conviction of distribution of child pornography, announced United States Attorney Kenneth Magidson. LeBlanc pleaded guilty Tuesday, Oct. 22, 2013.
U.S. District Judge Nancy Atlas, who took into consideration that LeBlanc had molested a young girl when he was a juvenile, ordered a total sentence of 130 months in federal prison. The sentence will be immediately followed by 30 years of supervised release, during which time he will be under special conditions designed to protect children and prohibit the use of the Internet. He will also be ordered to register as a sex offender.
The investigation started as a result of several downloads of child pornography over the Internet by a federal agent with the New York office of the FBI which were traced to a computer used by LeBlanc. On Dec. 3, 2012, federal agents served a search warrant at LeBlanc’s Huntsville address and seized his Apple computer. A forensic exam was conducted, revealing approximately 82 images and 33 videos of child pornography.
LeBlanc will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against were the result of an investigation conducted by the Texas City office of the FBI and officers with the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Diagnostic Imaging Group to Pay $15.5 Million for Allegedly Submitting False Claims to Federal and State Health Care ProgramsRead the Press Release
Diagnostic Imaging Group (DIG) has agreed to pay a total of $15.5 million to resolve allegations that its diagnostic testing facility falsely billed federal and state health care programs for tests that were not performed or not medically necessary and by paying kickbacks to physicians. Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery, U.S. Attorney for the District of New Jersey Paul J. Fishman and U.S. Attorney for the Eastern District of New York Loretta E. Lynch announced the settlement today.
DIG has agreed to pay $13.65 million to the federal government and an additional total of $1.85 million to New York and New Jersey. DIG operates a chain of diagnostic testing facilities through its subsidiary, Doshi Diagnostic Imaging Services, which is headquartered in Hicksville, N.Y. DIG previously operated chains in New Jersey and Florida through subsidiaries Doshi Diagnostic Imaging Services of New Jersey and Signet Diagnostic Imaging Services.
“When health care providers pay kickbacks and submit false claims to Medicare, they not only deplete the Medicare Trust Fund, they undermine the integrity of the health care system,” said Assistant Attorney General Delery. “The Justice Department will relentlessly pursue those who misuse federal health care funds for their own profit.”
“Health care providers who make decisions based on profit instead of medical need compromise patient safety and confidence,” said U.S. Attorney Fishman. “Unnecessary tests and the payment of kickbacks also siphon precious resources from our health care system. The settlement we’re announcing today is an appropriate response to these unacceptable practices.”
The settlement announced today resolves allegations that DIG submitted claims to Medicare, as well as the New Jersey and New York Medicaid Programs, for 3D reconstructions of CT scans that were never performed or interpreted. Additionally, DIG allegedly bundled certain tests on its order forms so that physicians could not order other tests without ordering the additional bundled tests, which were not medically necessary. Today’s settlement also resolves allegations that DIG paid kickbacks to physicians for the referral of diagnostic tests. According to the government, the kickbacks were in the form of payments that DIG made to physicians ostensibly to supervise patients who underwent nuclear stress testing. These payments allegedly exceeded fair market value and were, in fact, intended to reward physicians for their referrals.
“Patients deserve testing decisions based solely on medical need, not doctors’ pocketbooks,” said U.S. Attorney Lynch. “We will continue to work with our federal and state law enforcement partners to investigate vigorously allegations of fraud on federal programs like Medicare and to pursue those who seek to fraudulently deplete the Medicare Trust Fund.”
“Paying physicians for their referrals and submitting false claims to increase Medicare and Medicaid reimbursements – as was alleged in this case – simply cannot be tolerated,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Besides levying a hefty penalty, the settlement requires an independent organization to review Diagnostic Imaging Group’s claims for five years and to send reports to the government.”
The allegations resolved by today’s settlement were raised in three lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The three whistleblowers, Mark Novick, M.D., Rey Solano and Richard Steinman, M.D., will receive $ 1.5 million , $ 1.07 million and $ 209,250 , respectively, as part of today’s settlement.
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 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was handled by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the District of New Jersey and the U.S. Attorney’s Office for the Eastern District of New York. The settlement is the culmination of an investigation conducted jointly by special agents of the Department of Health and Human Services Office of Inspector General and the FBI with contributions from the Railroad Retirement Board.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The three cases are captioned United States ex rel. Mark Novick, M.D. v. Doshi Diagnostic Imaging Services P.C. , Civil Action No. 09-4992 (D.N.J.), United States ex rel. Rey Solano v. Diagnostic Imaging Group et al., Civil Action No. 10-267 (D.N.J.) and United States ex rel. Richard Steinman, M.D. v. Diagnostic Imaging Group, et al., Civil Action No. 10-4161 (E.D.N.Y.).
Diagnostic Imaging Group to Pay $15.5 Million for Allegedly Submitting False Claims to Federal and State Health Care ProgramsRead the Press Release
NEWARK, N.J. – Diagnostic Imaging Group (DIG) has agreed to pay a total of $15.5 million to resolve allegations that its diagnostic testing facilities falsely billed federal and state health care programs for tests that were not performed or not medically necessary and by paying kickbacks to physicians.
U.S. Attorney for the District of New Jersey Paul J. Fishman, Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery, and U.S. Attorney for the Eastern District of New York Loretta E. Lynch announced the settlement today.
DIG has agreed to pay $13.65 million to the federal government and an additional total of $1.85 million to New York and New Jersey. DIG operates a chain of diagnostic testing facilities through its subsidiary, Doshi Diagnostic Imaging Services, which is headquartered in Hicksville, N.Y. DIG previously operated chains in New Jersey and Florida through subsidiaries Doshi Diagnostic Imaging Services of New Jersey and Signet Diagnostic Imaging Services.
“Health care providers who make decisions based on profit instead of medical need compromise patient safety and confidence,” U.S. Attorney Fishman said. “Unnecessary tests and the payment of kickbacks also siphon precious resources from our health care system. The settlement we’re announcing today is an appropriate response to these unacceptable practices.”
“When health care providers pay kickbacks and submit false claims to Medicare, they not only deplete the Medicare Trust Fund, they undermine the integrity of the health care system,” said Assistant Attorney General Stuart F. Delery. “The Justice Department will relentlessly pursue those who misuse federal health care funds for their own profit.”
The settlement announced today resolves allegations that DIG submitted claims to Medicare, as well as the New Jersey and New York Medicaid Programs, for 3D reconstructions of CT scans that were never performed or interpreted. Additionally, DIG allegedly bundled certain tests on its order forms so that physicians could not order other tests without ordering the additional bundled tests, which were not medically necessary. Today’s settlement also resolves allegations that DIG paid kickbacks to physicians for the referral of diagnostic tests. According to the government, the kickbacks were in the form of payments that DIG made to physicians ostensibly to supervise patients who underwent nuclear stress testing. These payments allegedly exceeded fair market value and were, in fact, intended to reward physicians for their referrals.
“Patients deserve testing decisions based solely on medical need, not doctors’ pocketbooks,” said U.S. Attorney Lynch. “We will continue to work with our federal and state law enforcement partners to investigate vigorously allegations of fraud on federal programs like Medicare and to pursue those who seek to fraudulently deplete the Medicare Trust Fund.”
“Paying physicians for their referrals and submitting false claims to increase Medicare and Medicaid reimbursements – as was alleged in this case – simply cannot be tolerated,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Besides levying a hefty penalty, the settlement requires an independent organization to review Diagnostic Imaging Group’s claims for five years and to send reports to the government.”
The allegations resolved by today’s settlement were raised in three lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The three whistleblowers will receive the following amounts as part of today’s settlement: Mark Novick, M.D., $1.5 million; Rey Solano, $1.07 million; Richard Steinman, M.D., $209,250.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The government is represented by Assistant U.S. Attorney Charles Graybow of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Trial Attorneys Arthur Di Dio and William Olson of the Justice Department’s Civil Division in all aspects of the case, as well as Assistant U.S. Attorney Paul Kaufman of the U.S. Attorney’s Office for the Eastern District of New York with regard to the Steinman qui tam. New York was represented the New York Attorney General’s Medicaid Control Fraud Unit in New York City, and New Jersey was represented by the New Jersey Attorney General’s Government & Healthcare Fraud Section in Newark.
The settlement is the culmination of an investigation conducted jointly by special agents of the Department of Health and Human Services Office of Inspector General and special agents of the FBI in Newark under the direction of Special Agent in Charge Aaron T. Ford, with contributions from the Railroad Retirement Board.The claims settled by this agreement are allegations only, and there has been no determination of liability. The three cases are captioned United States ex rel. Mark Novick, M.D. v. Doshi Diagnostic Imaging Services P.C., Civil Action No. 09-4992 (D.N.J.), United States ex rel. Rey Solano v. Diagnostic Imaging Group et al., Civil Action No. 10-267 (D.N.J.) and United States ex rel. Richard Steinman, M.D. v. Diagnostic Imaging Group, et al., Civil Action No. 10-4161 (E.D.N.Y.).
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Defense counsel for Doshi:
Mitchell Lazris Esq. and Ronald Wisor Esq., WashingtonCounsel for Relators:
Novick qui tam – bundling, including 3D reconstruction: Marc S. Raspanti Esq. and Michael A. Morse Esq., Philadelphia
Solano qui tam – stress-testing: Eric H. Jaso Esq., New York, and David Bocian Esq., Radnor, Pa.
Steinman qui tam – 3D reconstruction: Timothy McCormack Esq., WashingtonDoshi Executed Settlement Agreement
Deported Alien Charged with Illegally Re-entering U.S.Read the Press Release
PITTSBURGH - An alien found in Beaver Falls, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Jesus Espinoza-Fernandez, 30, of Mexico, as the sole defendant.
According to the indictment presented to the court, Espinoza-Fernandez, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Jan. 6, 2009. Espinoza-Fernandez was found to be illegally present in Beaver Falls on Feb. 6, 2014.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendant Sentenced in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Wendy Sands, 42, of Opa-Locka, was sentenced today to 26 months in prison, to be followed by three years of supervised release. Sands previously pled guilty to one count of possessing fifteen or more unauthorized access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, on January 16, 2013, Sands met with a confidential source (CS) and Sands was unaware the CS was working for the government. During the meeting, Sands provided the CS with documents that contained personal identifying information -- including names, dates of birth, and social security numbers -- for approximately 64 stolen identities. Sands knew that these 64 stolen identities belonged to real people and that the 64 victims did not authorize her to possess their personal information. Sands also knew that the stolen personal identifying information would be used to file fraudulent tax returns.
Mr. Ferrer commended the investigative efforts IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
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.
Dallas Man Sentenced to Two Years in Federal Prison and Ordered to Pay $168,920 in Restitution for Fraudulently Receiving Social Security BenefitsRead the Press Release
Defendant Collected His Deceased “Father’s” Benefits
DALLAS — A Dallas man, Jose Alfredo Rodriguez, was sentenced today by U.S. District Judge Sam A. Lindsay to two years in federal prison and ordered to pay $168,920 in restitution, following his conviction at trial in October 2013 on felony offenses related to his theft of his deceased father’s Social Security retirement benefits, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The jury deliberated just two hours to convict Rodriguez, 54, on one count of theft of government funds and three counts of making false statements. At today’s sentencing hearing, Judge Lindsay ordered that Rodriguez surrender to the Bureau of Prisons on April 4, 2014.
The government presented evidence at trial that beginning in 1989, Fernando Loya began receiving Title II Retirement Insurance benefits from the Social Security Administration (SSA). The SSA determined that Mr. Loya required a representative payee to manage his benefits on his behalf, and appointed Rodriguez, who considered Mr. Loya his father, as Mr. Loya’s payee.
In early September 2, 2011, in response to a request from the SSA to bring Mr. Loya and his identification information to the SSA office in Dallas, Rodriguez appeared without Mr. Loya and informed a SSA employee that Mr. Loya lived in Mexico. On October 27, 2011, Rodriguez called the SSA and reported that Mr. Loya had passed away in Mexico on September 15, 2011.
An investigation ensued and when confronted, Rodriguez conceded that the last time he went to Mexico to give Mr. Loya his benefits, was in 1992 or 1994. Rodriguez also conceded that he did not know how or when Mr. Loya died, but believed it may have been in 1995, and that he sent no money to Mexico for his care after 1997.
The government presented further evidence at trial that on November 15, 2008, June 7, 2009 and May 20, 2011, Rodriguez made false statements or representations in documents used by the SSA to determine continued rights to Social Security benefits for Mr. Loya. On those dates, Rodriguez stated that he had spent, respectively, $13,160, $13,640 and $14,184 for food, housing, clothing, medical and dental expenses, recreation and personal expenses for Mr. Loya, when he well knew he did not use those funds for Mr. Loya.
The case was investigated by the SSA’s Office of Inspector General. Special Assistant U.S. Attorney Nicole Dana prosecuted.
Dallas Center Man Sentenced on Child Pornography ChargesRead the Press Release
DES MOINES, IA – On February 21, 2014, Benjaman Shelabarger, a thirty-six-year-old former resident of Dallas Center, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 210 months in prison on child pornography charges, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also ordered Shelabarger to serve five years of supervised release following the period of imprisonment.
Shelabarger’s sentence was enhanced, in part, because he falsely testified during trial that a relative was responsible instead of the defendant, which the judge found constituted an obstruction of justice. Shelabager’s sentence was also enhanced because he had movies and images of very young children being sexually assaulted, used a computer, and had a large number of child pornography movies and images.
Shelabarger was originally charged in March 2013 with one count of illegally possessing child pornography, and was additionally charged with knowingly receiving child pornography when the indictment was superseded in October 2013. A jury unanimously convicted Shelabarger on both counts on November 6, 2013.
The investigation was conducted by Homeland Security Investigations, a division of the U.S. Immigration and Customs Enforcement, the Iowa Division of Criminal Investigations, Cyber Crime Unit, and the Iowa Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Concord Doctor Pleads Guilty for Role in $27 Million Home Health Care ScamRead the Press Release
BOSTON - The former medical director of a Waltham-based home health agency pleaded guilty today for his role in a home health fraud scheme which cost Medicare over $27 million.
Dr. Spencer Wilking, 65, of Concord, pleaded guilty today before U.S. District Judge Joseph L. Tauro to health care fraud. Sentencing is scheduled for May 20, 2014. The statutory maximum penalty for the crime is 10 years in prison, three years of supervised release, a fine of $250,000 or twice the gross loss to the Medicare program or twice the gross gain to Wilking (whichever is greater), restitution to Medicare, forfeiture of any proceeds of the offense, and exclusion from the Medicare program.
From at least April 2011 through March 2012, Wilking was employed as the Medical Director for MJG Management Company, d/b/a At Home VNA (AHVNA), a home health agency located in Waltham. During this period, Wilking signed certifications and recertifications to provide AHVNA home health services to hundreds of Medicare beneficiaries who did not qualify for services under the Medicare program. To qualify for home health services under the Medicare program, the beneficiary had to be: (1) confined to his/her home, (2) in need of skilled nursing services, physical therapy, or speech therapy on an intermittent basis or occupational therapy on a continuing basis, and (3) under the care of the physician who established the plan of care for home health services.
Prior to initially certifying eligibility, Wilking had to document that he, or another qualified health care provider, had a “face-to-face encounter” with the beneficiary, which showed that the patient was homebound and in need of home health services. Despite these legal requirements, Wilking certified hundreds of Medicare beneficiaries for home health services by AHVNA, without conducting a “face-to-face encounter” with the beneficiary, the vast majority of whom were not referred to AHVNA by their primary care physician or another physician who had examined the patient. Instead, Wilking typically certified services after spending a minimal amount of time reviewing patient assessment forms that were prepared by AHVNA nurses and/or participating in brief discussions about the patients with the nurses and/or AHVNA’s Clinical Director, Janice Troisi. Had Wilking reviewed the patient files, he would have discovered that many of the files contained information demonstrating that many of the patients were not homebound because, for example, they worked, took vacations, and spent substantial time outside the home. The patient files also contained information demonstrating that many patients had not requested home health services and/or were not provided with skilled nursing services.
Wilking’s certifications and recertifications allowed AHVNA to bill Medicare Part A for payment for these home health services. In addition, Wilking, billed Medicare Part B for both the certifications and subsequent recertifications. During the relevant time period, Medicare paid AHVNA over $1 million for the services certified by Wilking where the patients had not had the required face to face encounter with a physician. In addition, during the same period, Medicare paid nearly $30,000 to Wilking for certifying and recertifying the patients. Finally, between April 2011 and April 2012, AHVNA paid Wilking approximately $42,000 to serve as the company’s medical director.
In September 2013, the owner of AHVNA Michael Galatis, 62, of Natick and the Clinical Director, Janice Troisi, 64, of Revere, were charged with conspiracy to commit health care fraud and 11 counts of health care fraud. Galatis was also charged with seven counts of money laundering. According to the indictment, between 2007 and 2012, Galatis and Troisi conspired to fraudulently induce the Medicare program to pay for home health care services that, by and large, the Medicare beneficiaries did not need nor want. They trained AHVNA nurses to recruit Medicare beneficiaries who lived in residential facilities for senior citizens by asking if they were insured by Medicare, and if so, if they would like to have a nurse visit them in their home. The indictment also alleges that they trained the nurses to manipulate the patients’ initial assessments to make it appear as though the patients qualified for home health services pursuant to Medicare’s guidelines, when that was often not the case. The home health certifications and plans of care were then signed by Wilking, who certified that the patients were homebound and in need of skilled services, when, in fact, the overwhelming majority of AHVNA’s patients were not homebound and did not need home health services. During the course of the conspiracy, AHVNA submitted more than $27 million in false and fraudulent claims to Medicare, and Medicare paid AHVNA more than $20 million.
Both Galatis and Troisi have entered not guilty pleas. If convicted, they each face up to 10 years in prison, three years of supervised release, a $250,000 fine or twice the gross loss to the Medicare program or twice the gross gain to the defendant (whichever is greater), restitution to Medicare, forfeiture of any proceeds of the offenses, and exclusion from the Medicare program.
The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Carmen M. Ortiz; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General; Office of Investigations; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys David S. Schumacher and Lisa Asiaf Schlatz of Ortiz’s Health Care Fraud Unit.
Clifton Insurance Adjuster Charged with Defrauding N.J. Turnpike Authority and Insurance Companies of over $200,000Read the Press Release
NEWARK, N.J. – The owner of a New Jersey-based insurance adjusting company was arrested today for allegedly defrauding the N.J. Turnpike Authority and certain insurance companies of more than $200,000, U.S. Attorney Paul J. Fishman announced.
Robert Napolitano, 54, of Clifton, N.J., the owner of Dawn to Dusk LLC, an insurance adjusting company that investigated and provided adjusting services to property and casualty insurance carriers in New Jersey, was arrested by special agents of the FBI and charged by complaint filed Feb. 19, 2014, and unsealed today with one count of mail fraud. Napolitano is scheduled to make his initial appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court later today.
According to the complaint:
From October 2011 to June 2013 Napolitano obtained by fraud more than $200,000 from the Turnpike Authority (NJTA) and certain insurance companies in several ways, including instructing insurance companies whose motorists caused damage to the N.J. Turnpike to issue checks payable to Dawn to Dusk. After the checks were mailed to Dawn to Dusk, Napolitano did not forward the payments to the NJTA and instead shared the money with his previously charged conspirator, Gerardo A. Blasi, an NJTA claims manager.
Blasi, 55, of Clifton, pleaded guilty Dec.11, 2013, before U.S. District Judge Kevin McNulty to an information charging him with using the mails to facilitate a scheme and artifice to defraud the NJTA and certain insurance companies in connection with his theft of more than $1.5 million from the authority and the insurance companies. He is scheduled to be sentenced March 19, 2014.The fraud count with which Napolitano is charged is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office Special Prosecution’s Division.
13-061Napolitano, Robert Complaint
Civilian Navy Employee Charged with Stealing More Than $360,000 in Housing BenefitsRead the Press Release
WASHINGTON – A civilian employee of the U.S. Navy posted at the Capodichino Navy Base near Naples, Italy, was arraigned yesterday in Norfolk, Va., for allegedly obtaining more than $360,000 in housing benefits that he was not entitled to receive.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and United States Attorney Nicholas A. Klinefeldt of the Southern District of Iowa made the announcement.
Steven William Ashton, 41, was charged in a seven-count indictment returned by a grand jury in the Southern District of Iowa on Feb. 19, 2014. He is charged with theft of government funds for obtaining more than $360,000 in housing benefits, called Living Quarters Assistance (LQA), to which he was not entitled. He is also charged with presenting a falsified lease and making false statements in an effort to justify those benefits when confronted by a federal agent from the Naval Criminal Investigative Service (NCIS).
According to court documents, from April 2004 to the present, Ashton has been employed by the Navy as the NATO and Host Nation Programs Manager for the regions of Europe, Africa and Southwest Asia, managing contracts and agreements among the Navy and other countries to support the United States’ military efforts. Because he lived off-base, he was entitled to an LQA allowance to reimburse him for his payments for rent and other housing expenses. But when he allegedly moved in with his future wife and stopped paying rent in November 2005, he continued receiving the rental subsidies even though he was no longer eligible for them. When confronted by an NCIS agent investigating the matter, Ashton allegedly forged a lease in 2013 with his father-in-law – who had died in 2007 – and provided the lease along with false explanations to the NCIS agent.
Ashton is also charged with creating and submitting to the U.S. Navy various fraudulent documents to obtain other benefits. According to the indictment, Ashton created false documents to obtain a Foreigners’ Permit of Stay from the Italian government that allowed him to travel in and out of Italy without a visa and to be tax exempt for wages earned in Italy. He also allegedly created false documents to obtain a Permanent Logistic Support letter that gave Ashton Navy benefits such as purchasing tax-free gas at a savings of more than 50 percent, and a Civilian Access Card that provided him free access to U.S. military facilities world-wide, including use of the tax-free military shopping facilities. In addition, Ashton used fraudulent U.S. Coast Guard documentation purporting to show that Ashton had the licenses needed to moor a boat at discounted rates in the Bay of Naples, which saved him more than $28,000 in mooring fees.
Ashton was arrested on the Navy base in Italy and flown to Norfolk for his initial appearance. A preliminary hearing is scheduled for March 4, 2014 in the Southern District of Iowa.
This case was investigated by the NCIS and the Air Force Office of Special Investigations. The case is being prosecuted by Director of Procurement Fraud Litigation Catherine Votaw of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Clifford Cronk of the Southern District of Iowa.
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Civilian Navy Employee Charged with Stealing <br /> More Than $360,000 in Housing BenefitsRead the Press Release
A civilian employee of the U.S. Navy posted at the Capodichino Navy Base near Naples, Italy, was arraigned yesterday in Norfolk, Va., for allegedly obtaining more than $360,000 in housing benefits that he was not entitled to receive.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and United States Attorney Nicholas A. Klinefeldt of the Southern District of Iowa made the announcement.
Steven William Ashton, 41, was charged in a seven-count indictment returned by a grand jury in the Southern District of Iowa on Feb. 19, 2014. He is charged with theft of government funds for obtaining more than $360,000 in housing benefits, called Living Quarters Assistance (LQA), to which he was not entitled. He is also charged with presenting a falsified lease and making false statements in an effort to justify those benefits when confronted by a federal agent from the Naval Criminal Investigative Service (NCIS).
According to court documents, from April 2004 to the present, Ashton has been employed by the Navy as the NATO and Host Nation Programs Manager for the regions of Europe, Africa and Southwest Asia, managing contracts and agreements among the Navy and other countries to support the United States’ military efforts. Because he lived off-base, he was entitled to an LQA allowance to reimburse him for his payments for rent and other housing expenses. But when he allegedly moved in with his future wife and stopped paying rent in November 2005, he continued receiving the rental subsidies even though he was no longer eligible for them. When confronted by an NCIS agent investigating the matter, Ashton allegedly forged a lease in 2013 with his father-in-law – who had died in 2007 – and provided the lease along with false explanations to the NCIS agent.
Ashton is also charged with creating and submitting to the U.S. Navy various fraudulent documents to obtain other benefits. According to the indictment, Ashton created false documents to obtain a Foreigners’ Permit of Stay from the Italian government that allowed him to travel in and out of Italy without a visa and to be tax exempt for wages earned in Italy. He also allegedly created false documents to obtain a Permanent Logistic Support letter that gave Ashton Navy benefits such as purchasing tax-free gas at a savings of more than 50 percent, and a Civilian Access Card that provided him free access to U.S. military facilities world-wide, including use of the tax-free military shopping facilities. In addition, Ashton used fraudulent U.S. Coast Guard documentation purporting to show that Ashton had the licenses needed to moor a boat at discounted rates in the Bay of Naples, which saved him more than $28,000 in mooring fees.
Ashton was arrested on the Navy base in Italy and flown to Norfolk for his initial appearance. A preliminary hearing is scheduled for March 4, 2014 in the Southern District of Iowa.
This case was investigated by the NCIS and the Air Force Office of Special Investigations. The case is being prosecuted by Director of Procurement Fraud Litigation Catherine Votaw of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Clifford Cronk of the Southern District of Iowa.Chinese Nationals Sentenced in Counterfeit Sneaker CaseRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Huang Yue Feng, 33, of Queens, N.Y., and Wang He Bin, 31, of Franklin Square, N.Y., formerly husband and wife, who were convicted of conspiracy to import goods falsely classified, were sentenced to 12 months in jail by U.S. District Court Judge Richard J. Arcara. The defendants also forfeited over $400,000 in cash and property seized during the execution of search warrants at warehouses in the New York City.
Assistant U.S. Attorney John E. Rogowski, who handled the prosecution of this case, stated that Feng and Bin were involved in the importation of counterfeit Nike sneakers from China which were then distributed throughout the United States. The defendants sold the counterfeit products to a co-defendant in New York City, Malik Bazzi. Defendant Bazzi, who was also convicted in this case, then sold the counterfeit sneakers to several individuals, including people in Buffalo and Niagara Falls, who in turn resold the counterfeit products to consumers. Some of the shoes were sold out of the back of vans, at flea markets and in clothing stores.
As a result of wire taps in this case, defendant Bin was recorded taking orders, discussing payments, and directing the delivery of the counterfeit sneakers to defendant Bazzi. Defendant Feng was observed loading sneakers into a van at warehouse locations and then delivering them to defendant Bazzi. AUSA Rogowski, in asking the Court to impose a prison sentence, noted that jail sentences were needed to send a message to those involved in trafficking counterfeit goods that they faced more than mere financial consequences for engaging in their crimes.
The defendants, who were first arrested in connection with this case in September, 2007, are among 23 individuals charged in the case. Twenty-two of the defendants were convicted and one defendant was acquitted after a trial before Judge Arcara in October of 2012.
“Today’s developments bring to a successful conclusion to the largest prosecution involving violations of intellectual property rights in the Western District of New York,” said U.S. Attorney Hochul. “This prosecution is part of the government=s aggressive enforcement of customs laws that protect the investment of manufactures, such as Nike, and also protect consumers who might unwittingly purchase inferior counterfeit goods. During the course of the investigation, over 310,000 pairs of counterfeit Nike sneakers were seized by law enforcement officers. In addition, over $1,000,000 in cash from the sale of the counterfeit product was also seized.”The sentences are the culmination of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge.
Chicago Woman Sentenced to 13 Years in Federal Prison for Swindling 1,000 Elderly Victims of Cash and Credit CardsRead the Press Release
CHICAGO — A Chicago woman was sentenced today to more than 13 years in federal prison for swindling at least 1,000 elderly victims of cash and credit cards, causing a loss of at least $800,000, over a period of five years. The defendant, TIFFANY HALL, was the mastermind of a scheme that targeted elderly victims, often widowed and living alone, and bilked some of them of their retirement and life savings.
Hall, 30, of Chicago, was sentenced to 159 months in prison and was ordered to pay $328,353 in restitution to more than 70 known, identified victims, by U.S. District Judge Amy J. St. Eve. Hall pleaded guilty to wire fraud and aggravated identity theft in January 2013, and has been in federal custody since she was arrested in early 2011.
Between 2006 and 2011, Hall, whose conduct was described as “ruthless” by Assistant U.S. Attorney Jennie Levin, spent nearly every day contacting victims and obtained cash and/or credit cards. Between 2009 and 2011 alone, Hall stole approximately $300,000 to $400,000 in cash from victims, and she used the stolen money to gamble and to purchase cars, designer bags and shoes, televisions, gift cards, clothes, consumer electronics, and other items. She also used the money to pay bills and expenses for herself and her husband, Lawrence Hall, 33, who was sentenced on Jan. 29 to 10 years in prison for his participation in the fraud scheme.
In pleading guilty, Hall admitted that, in 2006, she began calling victims and falsely telling them that she was a fraud investigator, either with the State of Illinois or a specific bank. She told the victims that their credit cards had been stolen or there was unusual activity on their accounts. After she gained the victims’ trust, she coaxed them to provide her with their credit or debit card numbers and personal identifying information, which she then used to purchase merchandise online and pay expenses for herself and her husband.
Beginning in 2007, Hall began meeting victims in person, asking them to provide her with their actual credit cards. In 2009, Lawrence Hall began recruiting runners to pick up victims’ cards and the Halls paid them in cash or allowed them to use the cards to purchase merchandise for themselves. About the same time, the Halls and their runners also started fleecing victims of their cash in addition to credit and debit cards.
Two other co-defendants were indicted with the Halls. Shana Banks, 30, of Chicago, pleaded guilty and is awaiting sentencing next month. Creassi Harris, 23, of Chicago, has pleaded not guilty and the charges are pending.
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Chicago Police Superintendent Garry McCarthy.
Charleston Men Sentenced on Federal Drug ChargesRead the Press Release
St. Louis, MO – ADRIAN LEWIS and MELVIN QUINN, both of Charleston, Missouri, were sentenced on separate unrelated indictments for their distribution of heroin in Mississippi County. They appeared yesterday, February 24th, before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau, MO. Adrian Lewis was sentenced to seven years in prison. Melvin Quinn received a six-year prison sentence.
Both cases were developed by a task force of officers with the Drug Enforcement Administration, Missouri Highway Patrol and local authorities working in Charleston during the spring and summer of 2013. Lewis and Quinn are both repeat federal offenders, having sustained federal drug convictions in 2005 and 2004 respectively. Both men pled guilty last December to use of a communication facility in furtherance of a drug crime.
This case is being investigated by the Drug Enforcement Administration and the Missouri Highway Patrol. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Cambria County Woman Sentenced to Probation with Home Detention for Marijuana Trafficking SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., has been sentenced in federal court to five years probation, the first 12 months of which must be served by conditions of home confinement, on her conviction of conspiracy to distribute marijuana, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Marguerite G. Lowmaster, 67, of Carrolltown, Pa.
According to information presented to the court, from March 2009 to May 9, 2011, Marguerite G. Lowmaster conspired to distribute and possess with intent to distribute at least 10 kilograms, but less than 20 kilograms, of marijuana. In addition, evidence presented to the Court at the time of Marguerite G. Lowmaster's sentencing reflected that she conspired with George M. Lowmaster and others with the intent to facilitate and promote George M. Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Marguerite G. Lowmaster. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
California Man Sentenced in Marijuana Distribution ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Korbel, California, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 24, 2014, by U.S. District Judge Karen E. Schreier.
Brett Aaron McFarland, age 29, was sentenced to 60 months in prison, to be followed by 4 years of supervised release.
McFarland agreed to forfeit to the United States all his interest in the proceeds of the sale of real property located in Petrolia, California, which he acquired as a result of his illegal activities.
McFarland was indicted for Conspiracy to Distribute More Than 100 Kilograms of Marijuana and Conspiracy to Commit Money Laundering on September 10, 2013. He pled guilty to the distribution conspiracy on November 12, 2013, and the other charge was dismissed at sentencing.
McFarland joined a conspiracy to illegally distribute marijuana in South Dakota and elsewhere. During his involvement, he grew, harvested, and obtained marijuana, illegally distributed it, caused it to be illegally delivered and distributed, and received payments for it. Marijuana was grown and harvested, among other places, on the real property in California, and then illegally sold. The proceeds of the marijuana sales were used to make payments on the real property.
This case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in both South Dakota and California, and the Internal Revenue Service, Criminal Investigations. Assistant U.S. Attorney Connie Larson prosecuted the case.
McFarland is to turn himself in to begin his sentence on or before March 13, 2014.
California Man Sentenced in Marijuana Distribution ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Korbel, California, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 24, 2014, by U.S. District Judge Karen E. Schreier.
Brett Aaron McFarland, age 29, was sentenced to 60 months in prison, to be followed by 4 years of supervised release.
McFarland agreed to forfeit to the United States all his interest in the proceeds of the sale of real property located in Petrolia, California, which he acquired as a result of his illegal activities.
On September 10, 2013, McFarland was indicted for Conspiracy to Distribute More Than 100 Kilograms of Marijuana and Conspiracy to Commit Money Laundering. He pled guilty to the distribution conspiracy charge on November 12, 2013, and the other charge was dismissed at sentencing.
McFarland joined a conspiracy to illegally distribute marijuana in South Dakota and elsewhere. During his involvement, he grew, harvested, and obtained marijuana, illegally distributed it, caused it to be illegally delivered and distributed, and received payments for it. Marijuana was grown and harvested, among other places, on the real property in California, and then illegally sold. The proceeds of the marijuana sales were used to make payments on the real property.
This case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in both South Dakota and California, and the Internal Revenue Service, Criminal Investigations. Assistant U.S. Attorney Connie Larson prosecuted the case.
McFarland is to turn himself in to begin his sentence on or before March 13, 2014.
Billings Man Sentenced to Prison for Possession of Pipe BombRead the Press Release
The United States Attorney(s Office announced that MITCHELL TODD ROSS was sentenced on February 19, 2014, to a term of 16 months in federal prison with three years of supervised release to follow, before U.S. District Judge Donald W. Molloy.
Ross was sentenced in connection with his guilty plea to possession of a destructive device - a pipe bomb.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Lori Suek advised the court on November 13th, 2011, at approximately 1:06 am, the Billings Police Department (BPD) stopped on a red 1997 Pontiac Grand Am for not having a license plate lamp. Upon conducting the traffic stop, the driver, later identified as the defendant, Mitchell Todd Ross, failed to comply with police instructions and fled. After a brief foot pursuit, Ross was secured in handcuffs and placed him in the back of a patrol car.
While Ross was escorted to the patrol car, an officer looked inside Ross's car and took pictures of the contents. The items visible within the car included a hard plastic or glass pipe board and a white shirt wrapped in black electrical tape with a green fuse sticking out on the front passenger floor.
Ross's car was searched after he signed a consent form. A BPD bomb team member responded to the scene to determine if the item (suspected pipe bomb) wrapped in a white shirt with black electrical tape and a fuse sticking out of it was safe. Ross told police that a friend, whom he would not identify, approached him the previous day and asked Ross if he could do anything with a pipe bomb. Ross informed the friend he could and claimed the friend informed him the pipe bomb was a dummy. The friend asked Ross if he was interested in the pipe bomb and Ross indicated that he was.
The seized suspected pipe bomb was placed into the BPD explosives bunker. On November 18, 2011, an ATF Special Agent Explosives Enforcement Officer made the suspected pipe bomb safe. The suspected pipe bomb was made by capping the end of a shower head extension tube with a penny and cap, placing powder into the tube, and capping the end. The end without the penny had a round cap and a small hole in it where the green fuse was protruding out of the capped tube. Samples of the powder contained in the tube and the green fuse were collected and, along with the shower-head tube, were sent to the ATF Laboratory for analysis. An ATF Forensic Chemist examined the suspected pipe bomb and concluded that it contained a functional length of green pyrotechnic fuse measuring approximately 1/8 inch in diameter; two nitrate explosive mixtures, pyrotechnic stars and grain hulls; and the remains of a1/2 inch nominal diameter standard 6 inch chrome-plated brass shower arm assembly with a brass nut
US penny to one end of the shower arm effecting closure and the swivel head portion of the shower adapter securing the other end with a 1/8 inch diameter hole - of sufficient size to have accommodated a method of initiation. The ATF Explosives Enforcement Officer, after reviewing the report from the Forensic Chemist, concluded that the materials evaluated were consistent with an improvised explosive weapon; that lighting the fuse would, after a short delay, ignite the explosive filler causing the devise to explode; and that this explosion would produce blast and thermal effects and project fragments at high velocity. The pipe bomb was capable of causing property damage and injury or death to persons near the explosion.
Bernard James Horstman Sentenced on Drug ChargesRead the Press Release
The United States Attorney's Office announced that BERNARD JAMES HORSTMAN was sentenced on February 20, 2014, to a term of 120 months in federal prison with five years of supervised release to follow, before U.S. District Judge Dana L. Christensen.
Horstman was sentenced in connection with his guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Tara Elliott advised the court that in August of 2012, the Northwest Drug Task Force (NWDTF) received information from several sources that an individual identified only as "BJ" was receiving methamphetamine through the mail and then distributing the methamphetamine throughout Northwest Montana.
Agents received information from a confidential informant who admitted to purchasing 2 grams of methamphetamine from Horstman on or about September 17, 2012. The informant had observed Horstman in possession of approximately 1/4 pound of methamphetamine.
On October 10, 2012, a DCI Agent applied for and received a state search warrant for an intercepted USPS Package addressed to the defendant. When the package was opened, agents discovered approximately 12.6 grams (contained in a small baggie further wrapped in aluminum foil) of methamphetamine located inside a DVD case.
On January 3, 2013 agents searched Horstman's Honda Civic and recovered 65 grams of pure meth. Horstman admitted that the meth was his, that he had purchased it in Fresno, California, and had transported it back to Montana.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Baton Rouge Man Sentenced to Forty-one Months for Threatening Former United States Attorney Jim LettenRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that the defendant, GERALD ESTRADE, 57, of Baton Rouge, LA, was sentenced today by U. S. District Judge James J. Brady to a term of imprisonment of 41 months and a three year term of supervised release following his release from federal prison.
ESTRADE previously plead guilty to threatening to kill the former United States Attorney for the Eastern District of Louisiana, James “Jim” Letten, and his family, with the intent to retaliate against him on account of his official duties, in violation of Title 18, United States Code, Section 155(a)(1).
On January 7, 2013, ESTRADE, while a patient in the Baton Rouge General Behavioral Health Unit, advised Baton Rouge General’s Chief of Security, and former BRPD Chief, Jeff LeDuff, that if he was released, he would take all of his remaining money from his bank account, travel to New Orleans, buy a gun, go to Mr. Letten’s house, hide behind a big oak tree in Mr. Letten’s front yard, and kill Mr. Letten and his dog, Rico, in front of Mr. Letten’s daughter. ESTRADE told Chief LeDuff that he wanted to kill Mr. Letten in retaliation for his failure to help him when he reached out to him from prison in 2005.
Chief LeDuff immediately advised former United States Attorney Letten and the FBI of the threat because he believed that Mr. Letten’s life was in serious danger.
Later that same day, ESTRADE was interviewed by two FBI agents. ESTRADE repeatedly stated that his intent was to travel to New Orleans and kill former United States Attorney Letten and his family. ESTRADE also advised that he had gone to Mr. Letten’s residence in 2001 and spoke to Mr. Letten briefly in his yard. ESTRADE further advised that he had sent a letter threatening Mr. Letten to the FBI in 2005 or 2006, while he was incarcerated in Allan Correctional Center. ESTRADE stated that after he sent this letter, FBI agents came to the prison to interview him and thereafter he experienced a lot of problems. ESTRADE advised that he intended to kill Mr. Letten in retaliation for the problems that Mr. Letten caused him as a result of the 2005 letter.
U.S. Attorney Walt Green stated, “All threats against public officials will be thoroughly investigated and vigorously prosecuted by this office to the full extent of the law. Our public officials should not have to live in fear for doing their jobs.”
“We thank the FBI and the U.S. Attorney’s Office in the Middle District of Louisiana for their outstanding efforts in prosecuting this case,” stated Kenneth Allen Polite, Jr., U.S. Attorney for the Eastern District of Louisiana. “Threats against public servants in an effort to impede the administration of justice cannot and will not be tolerated.”
FBI SAC Michael J. Anderson stated, “Threats of such violence are never tolerated, but those threats that could interfere with vital law enforcement functions must be swiftly addressed to prevent any chilling effects on those charged with carrying out their public safety duties.”
This investigation was handled by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter, who serves as a Deputy Criminal Chief, and Assistant United States Attorney J. Christopher Dippel, Jr.
20 Individuals Indicted and Arrested for False Statements in Loan Applications and Bank FraudRead the Press Release
San Juan, Puerto Rico –Twenty individuals, including ringleaders, straw buyers, sellers, real estate agents, and an accountant have been charged in a 11-count indictment unsealed today and returned by a grand jury in San Juan, Puerto Rico on February 12, 2014, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico announced today. These charges stem from a scheme used by the defendants to obtain money from mortgage lending institutions. The investigation was conducted by the Department of Homeland Security (HSI), along with Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) and the Housing and Urban Development- Office of Inspector General (HUD-OIG).
The defendants are charged with bank fraud and making false statements in loan applications. The investigation revealed that as part of the scheme and artifice to defraud, the defendants, through straw buyers, would purchase properties by obtaining mortgage loans from federally insured financial institutions in amounts substantially exceeding the selling price of the properties. The excess amount of the loans would be “kickbacked” to the defendants, and then they would default on payment of the monthly mortgage premiums.
In order to ensure the approval of the loans, the participants would create and submit false supporting documentation along with the loan application, i.e.: financial statements, bank statements, employment verification letters, tax returns, among others.
According to the indictment, the defendants aiding and abetting each other, knowingly made or caused to be made material false statements to various financial institutions for the purpose of influencing the action of other financial institutions, in connection with a loan application to obtain mortgage loans. The financial institutions are: Banco Santander de PR, Doral Bank, Banco Bilbao Vizcaya Argentaria of PR, and RG Premier Bank of PR.
The defendants are: Lina Prestol-Rodríguez, José Santana-Aponte, Carlos Vélez-De Jesús, Ángel Torres-Maymi, Brenda Mercado-Rodríguez, Marilyn Meléndez-Prestol, Johanna Rivera-Benítez, Carlos Solis-Guzmàn, José Luis Negrón-Molina, Alexander Cifuentes-Ramos, Carlos Ortiz-Dàvila, Eduardo Cora-Colón, Gabriel Branda-Collazo, Ricardo Santiago-Verdecía, Marco Antonio Ambert-Torres, José Rafael Mora-Nazario, Angélica Álvarez-Castañeda, Sheila Benabe-Gonzàlez, Adelinzy Grace-Vàzquez, and Awilda Díaz-Cabrera.
Defendant Lina Prestol-Rodríguez, the leader of the fraudulent schemes, is also charged with conspiracy to commit money laundering. It was the object of the conspiracy that Prestol-Rodríguez and her co-defendants would engage in a series of financial and monetary transactions, some in excess of $10,000.00 in criminally derived property, in order to promote the carrying-on and concealment of the bank fraud and false statements in loan applications in order to unjustly enrich themselves and eliminate existing debt obligations.
“This indictment demonstrates the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to ensure the integrity of the financial and banking system,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The investigation and prosecution of financial crimes is one of the top priorities of the U.S. Department of Justice. Mortgage fraud is a serious issue for the banking industry and for homeowners who helplessly watch as their property values decrease, and foreclosure signs and abandoned properties take over their neighborhoods.”
“These arrests are a reflection of the success that comes when federal, state and local law enforcement agencies work together to target criminal organizations and individuals in Puerto Rico,” said Ángel Meléndez, special agent in charge of HSI San Juan. “At HSI, we follow the money trail to identify, disrupt and dismantle the most complicated financial schemes and seize criminal assets. We will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system and are often a gateway to further criminal activity.”
Lester Fernàndez, Special Agent in Charge of this Region for the US Department of Housing and Urban Development – Office of Inspector General stated: “It is always disturbing when industry professionals who have fiduciary responsibilities and are expected to act as honest brokers exploit federally funded programs. HUD-OIG will continue to partner with prosecutors, law enforcement and audit agencies to aggressively pursue those engaged in activities that harm federal housing programs.”Carlos Cases, Special Agent in Charge of the FBI said: “Mortgage fraud isn’t a victimless crime. It threatens the financial health of our communities, and leaves lenders burdened with bad loans and neighborhoods with abandoned and deteriorating property. FBI will continue to utilize its financial investigative expertise to aggressively investigate criminal activities that attack our financial system.”
IRS Special Agent in Charge José A. Gonzàlez stated, “The IRS Criminal Investigation is committed to employing its financial expertise to investigate and trace the flow of the monies derived from financial violations including Mortgage Fraud. Rest assured that those willing to participate and profit from these illegal activities will be deprived of their ill-gotten gains and brought to justice.”
This case is being prosecuted by Senior Litigation Counsel Scott Anderson. The case was investigated by ICE-HSI, HUD-OIG, FBI, and IRS.
The maximum penalties for these offenses are 30 years of imprisonment, and fines up to $1 million. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
Monday 24 February 2014
Wolcott Man Admits Impersonating Federal Officer, Falsifying Military Discharge CertificateRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRUCE BROWN, also known as “Bruce Browne,” “Spenser Brown,” “Spenser Browne,” “Agent Brice” and “Detective Brice,” 47, of Wolcott, waived his right to indictment and pleaded guilty today in Bridgeport federal court to impersonating a federal officer and falsifying a military discharge certificate.
According to court documents and statements made in open court, on August 8, 2013, BROWN, operating a Ford Crown Victoria equipped to resemble a police vehicle, entered a shoreline residential community in Old Lyme. BROWN was wearing a bullet proof tactical vest with police insignia and was carrying a weapon and handcuffs. When approached by an Old Lyme resident, Brown stated that he was a special agent of the United States Coast Guard and was sent there to observe a Coast Guard vessel that was in the area.
While in the Old Lyme community, BROWN’s fiancée asked a friend to take BROWN out on the friend’s boat. As the boat was backing out of the slip, BROWN informed the boat owner that “I am commandeering your boat. Your boat is now a U.S. Coast Guard vessel.” BROWN then directed the owner to pilot his boat toward other vessels and at BROWN’s direction, the owner approached two boats operated by private citizens. In each instance, BROWN required the boat operators to produce their boating licenses.
BROWN then instructed the boat owner to approach an individual who was operating a jet ski. Again, BROWN asked the operator for his license. When the operator could not produce it, BROWN told him to return to the dock. The boat owner took BROWN back to the dock and then observed BROWN enter what appeared to be a police car and drive off with the emergency lights flashing. BROWN drove his car to the boat launch where the jet ski operator was removing his craft from the water. He required the jet ski operator to obtain his license. After the owner showed BROWN the license, he was allowed to leave.
Law enforcement officers subsequently located and questioned BROWN in the Old Lyme residential community. BROWN initially told them that he was a law enforcement officer sent by the U.S. Coast Guard to photograph a Coast Guard cutter that was in the area, but eventually admitted that he was not an officer. A search of BROWN’s car revealed numerous law enforcement items, including a bulletproof/tactical vest with police insignia and a TSA badge, multiple sets of handcuffs, three handguns, loaded gun magazines, significant quantities of ammunition including hollow point bullets, a knife, and a police tactical baton. BROWN was arrested on state charges at that time.
While released on bond following his arrest, BROWN took four other law enforcement badges in his possession and threw them into the Chestnut Hill Reservoir in Wolcott. BROWN subsequently informed federal authorities of his actions and, on September 27, 2013, a dive team from the Connecticut State Police recovered the badges.
Further investigation of this matter revealed that in March 2013, BROWN offered to have a “scared straight” conversation with the sons of an acquaintance who believed BROWN was a federal law enforcement officer with experience in narcotics matters. Brown arrived at his acquaintance’s home in a Crown Victoria that resembled a police vehicle, displayed a badge and had a holstered gun and handcuffs secured on his belt. BROWN individually introduced himself to the minors as “Agent Brice” and “Detective Brice.” After some initial conversation, BROWN escorted the minors up to their rooms. Their mother tried to follow, but was ordered by BROWN to stay downstairs. She heard raised voices and later learned from her son that BROWN had drawn his gun and handcuffed her son while BROWN searched his room.
Eventually, BROWN walked downstairs with one of the minors and entered the garage. BROWN removed the weapon from his holster and pointed it in proximity of the minor as they prepared to enter the garage. BROWN returned with a backpack that contained about $200, a small amount of what appeared to be marijuana and a pipe. After confirming with the mother that the money was from a legitimate source, BROWN gave her the money and took the backpack and all of its contents. While in the house, BROWN indicated that he had conducted surveillance on the boys in the prior week and related several incidents to them that seemed to authenticate that claim.
The investigation further revealed that in April 2002, BROWN was discharged from the U.S. Coast Guard “under other than honorable conditions.” In February 2013, BROWN submitted a Pistol Permit Application to the Connecticut State Police Special Licensing and Firearms Unit. In the military history section of the application, BROWN stated that he had not been discharged from the United States Armed Forces with less than an Honorable Discharge. The form required BROWN to attach a copy of his Department of Defense Discharge Form, DD-214. In box 24 of his DD-214, BROWN obliterated the words “under other than,” leaving the form to appear as if he had been discharged under “honorable conditions.”
BROWN pleaded guilty to two counts of impersonating a federal law enforcement officer, which carries a maximum term of imprisonment of three years on both counts, and one count of falsifying a military discharge certificate, which carries a maximum term of imprisonment of one year. He is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on May 19, 2014.
This matter is being investigated by the Department of Homeland Security – Office of Inspector General, Coast Guard Investigative Service, Connecticut State Police, and the Wolcott, Bristol and Southington Police Departments. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
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