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10 April 2014
Final Defendant Sentenced in Case Involving a Grandmother who Headed Family Drug OrganizationRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Leo Mellerson, of Buffalo, N.Y., who was convicted of conspiracy to distribute and distribution of crack cocaine, was sentenced to 15 months in prison by U.S. District Court Judge, Richard J. Arcara.
Assistant U.S. Attorney Mary Clare Kane, who handled the case, stated that between 2000 and February 2012, Theresa Anderson headed an illegal narcotics drug trafficking organization that controlled drug sales on Swinburne and Deshler Streets in the City of Buffalo. The defendant employed several family members to sell crack cocaine on a daily basis in the neighborhood. Among them, Mellerson, who is the boyfriend of her daughter Toshia Anderson. On October 26, 2011, Mellerson sold crack cocaine to an undercover police officer on two separate occasions.In order to monopolize narcotics sales in the area, Theresa Anderson threatened and intimidated rival narcotics traffickers and even purchased several homes in the area which were used for selling and storing the illegal narcotics.
“Today’s sentencing brings to a conclusion the successful prosecution of this group of individuals who attempted to destroy a city neighborhood,” said U.S. Attorney Hochul. “Theresa Anderson, a wife, mother and grandmother, destroyed not only her family through her illegal narcotics trafficking but also the streets where the drug trafficking took place.”As part of this case, the Government seized over $50,000 in U.S. Currency and approximately nine houses used by the drug organization.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the New York State Police, Special Investigations Unit, under the direction of Major Thomas G. Marmion.
Theresa Anderson was sentenced to 188 months in prison in November 2013. She was arrested in February 2012 along with eight others including Leo Mellerson, Steven Butler, Dion Anderson, Melvin Calhoun, Anquensha Hodge, Wymiko Anderson, Toshia Hodge, and Tajia Anderson. Five of these are either children or grandchildren of Anderson. A sixth defendant is Anderson's husband and the two others are boyfriends of Andersons' daughters. All nine defendants have been convicted and sentenced.Final Defendant Sentenced in Drug and Money Laundering Conspiracy CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance and Conspiracy to Commit Money Laundering was sentenced on March 31, 2014, by U.S. District Judge Karen E. Schreier.
Thiphavanh Noy Khaleck, age 29, was sentenced to 60 months in custody on the marijuana distribution conspiracy, and 70 months in custody on the money laundering conspiracy, to be served concurrently, followed by 3 years of supervised release. She pled guilty to the offenses on October 7, 2013.
Khaleck was indicted with five others by a federal grand jury on April 2, 2013. Others indicted were: Thongsay Chantharath, age 41, of Worthington, Minnesota; Jimmy Thithavong, age 28, of Worthington; Jon Charles Batcheller, age 25, of Sioux Falls; Kenneth Louis Stanley, age 54, of Worthington; and David Soukthavong, age 27, of Sioux Falls. These five defendants were all sentenced in 2013.
Chantharath, Thithavong, Batcheller, and Stanley were all charged with conspiracy to distribute 500 grams or more of methamphetamine; Batcheller, Khaleck, and Soukthavong were all charged with conspiracy to distribute marijuana; and Batcheller and Khaleck were both charged with conspiracy to commit money laundering.
Chantharath pled guilty to the methamphetamine conspiracy on August 19, 2013, and was sentenced on November 12, 2013, to 240 months in custody, followed by 10 years of supervised release.
Thithavong pled guilty to the methamphetamine conspiracy on July 19, 2013, and was sentenced on October 8, 2013, to 120 months in custody, followed by 5 years of supervised release.
Batcheller pled guilty to the methamphetamine and money laundering conspiracies on July 10, 2013, and was sentenced on October 8, 2013, to 151 months on each count, to be served concurrently, followed by 5 years of supervised release.
Stanley pled guilty to the methamphetamine conspiracy on July 8, 2013, and was sentenced on September 23, 2013, to 97 months in custody, followed by 3 years of supervised release.
Soukthavong pled guilty to the marijuana conspiracy on October 8, 2013, and was sentenced on December 30, 2013, to 30 months in custody, followed by 2 years of supervised release.
At different times during the 2009-2012 timeframe, the parties conspired together to distribute methamphetamine and marijuana. Some members made trips to California and Minnesota to purchase the drugs, and they and other members distributed them in the Sioux Falls area. Additionally, Batcheller and Khaleck conspired to commit money laundering by keeping the deposits and withdrawals of cash drug proceeds below $10,000, in an effort to avoid bank reporting requirements.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Internal Revenue Service – Criminal Investigations. Assistant U.S. Attorney John E. Haak prosecuted the case.
Female Meth Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Jaime Marie Holland, 26, of Saraland, was sentenced in federal court on Wednesday, April 9, for her participation in a conspiracy to possess with intent to distribute methamphetamine. United States District Court Judge Callie V. S. Granade imposed a sentenced of 37 months imprisonment, and ordered that Holland undergo drug treatment both while in prison and as a condition of a four-year term of supervised release, which will follow her imprisonment. Judge Granade did not impose a fine, but ordered that Holland pay $100 in special mandatory assessments.
Court documents reflect that Holland distributed methamphetamine to a confidential informant working for the sheriff’s office and to others who were invited into her residence while the informant was there, also to buy methamphetamine. Holland was also implicated by other subjects cooperating in the investigation as a person who distributed and used methamphetamine, and who acquired pseudoephedrine pills for others to use in manufacturing methamphetamine.
The case was investigated by the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Federal Jury Convicts Kimberly Robinson on Cocaine Distribution and Money Laundering Conspiracy ChargesRead the Press Release
Conspiracy Involved the Distribution of At Least 480 Kilograms of Cocaine
KNOXVILLE, Tenn. - Following a three day trial in U.S. District Court, Knoxville, Tenn., a jury convicted Kimberly Robinson of Fayetteville, Ga., of conspiracy to distribute at least five kilograms of cocaine and conspiracy to commit money laundering.
Sentencing is set for 10:00 a.m., Aug. 13, 2014, in U.S. District Court in Knoxville, Tenn. Robinson faces a minimum mandatory sentence of 10 years to life in prison.
The evidence presented at trial showed that beginning in 2007 Robinson transported kilogram quantities of cocaine from Fayetteville, Ga., to a residence in Knoxville, Tenn., where it was subsequently distributed by other members of the conspiracy. Evidence further showed that after the cocaine was sold, the proceeds from the drug sales were secured in the same residence so that Robinson could travel from Fayetteville, Ga., to the Knoxville, Tenn., residence and pick up the proceeds. Robinson would then deliver the proceeds to another member of the conspiracy in Fayetteville, Ga., where the proceeds were used to obtain additional kilograms of cocaine to sell in Knoxville, Tenn. In all, the conspiracy was responsible for distributing at least 480 kilograms of cocaine in Knoxville since 2000. Evidence at trial showed that the total street value of the cocaine involved in the case was $48 million.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Kimberly Robinson included the Drug Enforcement Administration, Internal Revenue Service, Knoxville Police Department, Clayton County Georgia Police Department, and Fayette County Georgia Sheriff’s Office. Assistant U.S. Attorney David P. Lewen, Jr. represented the United States at trial.
Federal Judge Hands Down Prison Sentences to Two Women for Using Stolen Identities to Claim Millions of Dollars from Medicaid in Related Health Care Fraud SchemesRead the Press Release
CHARLOTTE, N.C. – Two women who defrauded Medicaid of millions of dollars using stolen therapists’ identities in related health care fraud schemes have been sentenced to prison by a federal judge in Charlotte, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
On Wednesday, April 9, 2014, Chief U.S. District Judge Frank D. Whitney sentenced Victoria Finney Brewton, 39, of Shelby, N.C. to 111 months in prison, to be followed by three years of supervised release for defrauding Medicaid of $8 million in false reimbursement claims for sham mental and behavioral health services. Judge Whitney also ordered Brewton to pay $7,070,426.52 as restitution to Medicaid and $573,392.80 to IRS.
On Tuesday, April 8, 2014, Judge Whitney sentenced one of Brewton’s conspirators, Rodnisha Sade Cannon, 27, of Charlotte to 102 months in prison for a similar scheme also involving sham mental and behavioral health services. Judge Whitney also ordered Cannon to serve three years under court supervision and to pay restitution in the amount of $2,541,306.36.
Cannon initially worked as a patient recruiter for Brewton, providing Brewton with the personal information of Medicaid recipients, which Brewton then used to file fraudulent reimbursement claims with Medicaid. Cannon later began running her own similar health care fraud scheme, that attempted to defraud Medicaid of $4.8 million in fraudulent reimbursement claims using the stolen identities of patients and therapists.
Victoria BrewtonAccording to court documents and court proceedings, from 2008 to 2012, Brewton operated a series of after-school and summer childcare programs in Shelby. Brewton recruited juvenile Medicaid beneficiaries through their families to sign up for these programs, promising the programs would be free for Medicaid recipients. Court records show that Brewton stole the Medicaid recipient numbers of some of the children and families who had signed up for the programs and fraudulently billed Medicaid for mental and behavioral health services which were never provided. Brewton was not licensed or qualified to provide mental and behavioral health services nor was she a Medicaid-approved provider, court documents show. According to court records, Brewton submitted the fraudulent reimbursement claims through other Medicaid-approved providers, some of whom did not know their information had been compromised.
Court records show that one such provider was a licensed therapist (“K.S.M.”) hired by Brewton to provide mental and behavioral health services for her company, Healing Hearts. Brewton submitted false and fraudulent claims to Medicaid using K.S.M.’s Medicaid provider number far in excess of the services actually provided by K.S.M, and continued to submit fraudulent claims even after K.S.M. was no longer employed by Brewton. According to court documents, Brewton also misused the Medicaid provider numbers of other therapists employed by her company and submitted false claims to Medicaid through their numbers. Court records indicate that Brewton also failed to report to IRS the income derived from her fraudulent scheme. In January 2013, Brewton pleaded guilty to health care fraud and health care fraud conspiracy, aggravated identity theft and filing false tax returns.
Rodnisha Sade CannonAccording to court documents and court proceedings, beginning in 2010 to 2012, Cannon created two companies, (“2nd Chances” and “A Chance for Change, Inc.”), and began operating after-school and summer childcare programs in Gastonia and Shelby. Although therapists initially performed some services at these programs, Cannon and others used the Medicaid provider numbers of other companies and individual therapists to submit fraudulent claims to Medicaid for therapy services supposedly provided at Cannon’s programs. Court records reflect that in many instances, the claimed mental and behavioral health services were never provided at all.
Court documents indicate that Cannon, who was not licensed or qualified to provide mental and behavioral health services and was not approved by Medicaid, stole the identities of Medicaid-approved providers who had some relationship with her programs. For example, court documents indicate that in May 2012, Cannon hired “M.B.,” who was a licensed clinical social worker, to work for her company. M.B. worked for Cannon’s company for a single day. Court records show that Cannon and her conspirators stole M.B.’s Medicaid provider information and used it to file more than $800,000 in fraudulent claims for services that M.B. never provided, including claims for dates of service before M.B. worked for Cannon.
According to court records, after opening her own companies, Cannon continued to provide and sell to Brewton Medicaid beneficiary identification numbers and information to be used in Brewton’s fraud scheme. In total, Cannon and her conspirators submitted approximately $4.8 million in false claims and received over $2.5 million as payment on those claims from Medicaid. Cannon pleaded guilty in April 2013 to health care fraud conspiracy, aggravated identity theft and money laundering conspiracy. Cannon also pleaded guilty to attempting to remove property subject to seizure, namely a 2010 Mercedes-Benz CLS550.
According to court records, Cannon purchased the Mercedes-Benz for $59,500 with the proceeds of her fraud scheme. When law enforcement obtained a warrant to seize the Mercedes-Benz, Cannon attempted to sell the vehicle to avoid its seizure. Cannon has been in local federal custody since her arrest on the attempted removal of property to prevent seizure charge in September 2012 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
Brewton has been released on bond and will be ordered to self-report to the Federal Bureau of Prisons to begin serving her sentence. All federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Tompkins thanked North Carolina’s Medicaid Investigations Division (MID) under the direction of Attorney General Roy Cooper, the Charlotte Division of the FBI, under the direction of Special Agent in Charge John A. Strong, the Internal Revenue Service, Criminal Investigation Division (IRS-CI) under the direction of Special Agent in Charge Jeannine A. Hammett, and the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region, under the direction of Special Agent in Charge Derrick Jackson, for their investigation leading to Brewton and Cannon’s prosecutions. She also thanked the North Carolina Division of Medical Assistance, Program Integrity Section for their invaluable assistance in Brewton’s case.
The prosecution was handled by Assistant U.S. Attorneys Kelli Ferry and Jenny Grus Sugar of the U.S. Attorney’s Office in Charlotte.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistleblower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the April 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.
Steven M. Allen. Failure to Register as a Sex Offender. Allen, 41, of Miami, Okla., is charged with failing to register as a sex offender after prior convictions in 2009. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The United States Marshals Service is the lead investigative agency.
Jose Guadalupe Becerra-Molina. Possession of Firearms and Ammunition by Alien Illegally in United States, Possession of Methamphetamine with Intent to Distribute, Possession of Firearms in Furtherance of a Drug Trafficking Crime, and Alien in the United States After Deportation. Becerra-Molina, 34, unlawfully in the United States, is charged with possessing three (3) pistols, two (2) revolvers, and ammunition as an illegal alien; possessing methamphetamine with intent to distribute; possessing two (2) pistols in furtherance of a drug trafficking crime; and being illegally in the United States after being deported in June 2007 near Laredo, Texas. If convicted, the penalty for possessing the pistols and ammunition as an illegal alien would be a ten (10) year maximum sentence of imprisonment and a $250,000 fine; the penalty for possession of methamphetamine with intent to distribute would be twenty (20) years imprisonment and a $1,000,000 fine; the penalty for possession of firearms in furtherance of a drug trafficking crime would be a minimum of five (5) years imprisonment to life; and the penalty for re-entering the United States after deportation would be a maximum twenty (20) years imprisonment and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Police Department, and the U.S. Immigration and Customs Enforcement are the lead agencies.
James Dawson Bishop. Felon in Possession of Firearms and Ammunition, Carrying a Firearm in Furtherance of a Drug Trafficking Crime, and Possession of Methamphetamine with Intent to Distribute. Bishop, 34, of Tulsa, is charged on different dates with carrying various firearms and ammunition after having been previously convicted of a felony. Additionally, Bishop is charged with Carrying a Firearm in Relation to and Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Possession of Methamphetamine with the Intent to Distribute. If convicted, Bishop could be sentenced to a mandatory minimum of five years and up to life imprisonment with a $1,000,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Indian Affairs, and the Muscogee (Creek) Nation Lighthorse Tribal Police are the lead agencies.
Christopher Lee Burr and Dale Estus Sutton III.Felon in Possession of Firearms and Ammunition. Burr, 27, of Ponca City, and Sutton, 31, of Wagoner, are charged with possessing firearms after a felony conviction. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The Indictment is a result of a joint investigation by the Muscogee (Creek) Nation Lighthorse Police, Bureau of Indian Affairs, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Michael Wayne Cauldwell. Felon in Possession of a Firearm and Ammunition. Cauldwell, 35, of Tulsa, is charged with possessing a .40 caliber pistol and ammunition after prior felony convictions in 2002 and 2003. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement, Homeland Security Investigations is the lead agency.
Francis Harry Dishmon. Attempted Bank Robbery and Killing a Person While Attempting to Avoid Apprehension. Dishmon, 51, of Tulsa, is charged with attempting to rob the IBC Bank in Miami, Oklahoma on August 28, 2013, and killing a man while attempting to avoid apprehension for that attempted robbery. If convicted, the maximum penalty for the attempted bank robbery would be twenty (20) years imprisonment and a $250,000 fine; and the penalty for killing a person while attempting to avoid apprehension would be life imprisonment. The Federal Bureau of Investigation is the lead agency.
Rafael Gonzalez. Felon in Possession of Firearm and Ammunition. Gonzalez, 21, of Tulsa, is charged with possessing a .25 caliber pistol and ammunition after prior felony convictions in 2011 and 2013. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the lead agencies.
Mark Dee Gragg. Felon in Possession of Firearm. Gragg, 51, of Cushing, is charged with possessing a .22 caliber revolver after prior felony convictions including Threats Against the President. If convicted, Gragg would face a maximum sentence of ten (10) years imprisonment and a $250,000 fine. This case was investigated by the Sand Springs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Andre Ralph Haymond. Failure to Register as a Sex Offender. Haymond, 25, of Tulsa, is charged with failing to register as a sex offender after possession of child pornography convictions in 2010. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The United States Marshals Service is the lead investigative agency.
Juan Lopez-Martinez. Alien in the United States After Deportation. Martinez, 30, is charged with having returned to the United States unlawfully after being deported in August 2008 near Del Rio, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the lead agency.
Restituto L. Morales. Possession of Heroin with Intent to Distribute, Possession of Cocaine with Intent to Distribute, Possession of Methamphetamine with Intent to Distribute, and Distribution of Methamphetamine. Morales, 51, of Homestead, Florida, is charged with possessing more than one (1) kilogram of heroin, more than five (5) kilograms of cocaine, and more than 500 grams of methamphetamine all with intent to distribute. Morales is also charged with distribution of more than 500 grams of methamphetamine. If convicted, the mandatory minimum penalty would be ten (10) years imprisonment, the maximum penalty would be life imprisonment, and a $10,000,000 fine. The Tulsa County Sheriff’s Office and Drug Enforcement Administration are the lead agencies.
Ramona Lynn Peters. Theft of Government Property. Peters, 55, of Terlton, Okla., is charged with unlawfully taking $32,016.86 of a deceased family member’s social security benefits from January 2010 to June 2013. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The Social Security Administration, Office of Inspector General is the lead investigative agency.
Jorge Ramirez-Gomez. Alien in the United States After Deportation. Ramirez-Gomez, 21, is charged with having returned to the United States unlawfully after being deported in November 2013 near Del Rio, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the lead agency.
Salvador Rodriguez-Ramirez. Alien in the United States After Deportation. Rodriguez-Ramirez, 36, is charged with having returned to the United States unlawfully after being deported in March 2009 near Del Rio, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the lead agency.
Billy Ray Willis. Theft of Government Property. Willis, 57, of Stillwater, is charged with stealing $15,739 in Social Security Supplemental Security Income from September 2010 to August 2013. If convicted, the maximum penalty would be ten (10) years imprisonment and a $250,000 fine. The Social Security Administration, Office of Inspector General is the lead agency.
Federal Government Seizes China-Based WebsitesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that three websites that sold illegal and potentially dangerous controlled substances and analogues were seized by federal law enforcement officers. The United States Attorney’s Office obtained seizure warrants from U.S. Magistrate Judge Hugh B. Scott which were then executed by Special Agents from Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI).
The websites seized and shut down are:
o kerrypharm.com o kaseeypharm.com o kx-researchchem.com
According to Assistant U.S. Attorney Richard D. Kaufman, who is handling the case, over the course of the past year, HSI Special Agents in Western New York and across the country have been investigating the proliferation of illegally controlled substances purchased from numerous websites operated by Chinese businesses.
“Websites such as these are nothing more than technologically enhanced, street corner drug dealers,” said U.S. Attorney Hochul. “We have often warned the public about purchasing knock off goods online. When it comes to substances which are intended for human consumption, such purchases become a life and death situation.”
“Seizing these websites that openly sell illegal narcotics helps to stem the flow of drugs to communities in Western New York,” said James Spero, Special Agent in Charge of HSI Buffalo. “We will continue to aggressively target and dismantle these operations that pump poison onto our streets.”
The HSI investigation included several undercover buys from the websites and arrests of numerous individuals throughout the United States who were purchasing the illegal substances in order to re-sell the drugs on the streets. The websites listed over 20 different synthetic narcotics available for sale, including schedule I and III controlled substances and analogues. Some of the drugs purchased included Fentanyl, Bath Salts, and Methylone.
U.S. Attorney Hochul pointed to the following examples where death or near death situations have occurred, linked to websites similar to the ones seized by HSI:
In August of 2013, a man and a woman were found dead in a Hamburg, N.Y. residence. Autopsies confirmed that the man and woman died of acute intoxication from MT-45, an opioid analgesic drug, and ethanol. Authorities believe these substances came from China.
In October, 2013, a 17 year old girl from Western New York suffered multiple seizures and wound up in a coma after taking Methylone. She has since recovered. Authorities believe the Methylone came into this area after being purchased from a Chinese website.
The seizures are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Federal Court Shuts Down Mississippi Tax Return PreparerRead the Press Release
The U.S. District Court for the Southern District of Mississippi permanently barred Tamara Brock from preparing federal tax returns for others, the Justice Department announced today. Brock agreed to the entry of a final judgment of permanent injunction, which was entered by the court on April 10, 2014.
The complaint alleged that Brock, formerly a franchisee with Liberty Tax Service, prepared federal income tax returns for customers in Moss Point, Miss., and Pensacola, Fla. According to the complaint, Brock prepared federal tax returns that included fictitious education expenses to qualify her customers to receive or to maximize the American Opportunity Credit on their federal tax returns.
The judgment also requires Brock to turn over to the United States a list of all individuals and entities for whom she has provided tax preparation services since Jan. 1, 2011, and to notify these customers of the permanent injunction against her.
Return preparer fraud is one of the IRS' Internal Revenue Service's Dirty Dozen Tax Scams for 2014 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Tamara Brock
Stipulated Judgment of Permanent Injunction Against Tamara BrockEl Departamento de Justicia y el Poder Judicial de Rhode Island Realizaron un Acuerdo para la Provisión de Servicios de Asistencia Idiomática en Tribunales de Rhode IslandRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que realizó un acuerdo con el Poder Judicial de Rhode Island para asegurar que personas con conocimientos limitados del inglés [Limited English Proficient (LEP)] tengan acceso a asistencia idiomática oportuna y competente, sin costo en todos los procesos, servicios y procesos judiciales en todo el sistema judicial del estado.
Como parte del acuerdo, el Departamento aprobó el Plan de Acceso Idiomático del Poder Judicial de Rhode Island, el que detalla la labor a realizarse a fin de garantizar la asistencia idiomática integral en todo el sistema judicial. El plan exige la traducción constante de formularios y carteles en edificios de los tribunales a idiomas comúnmente hablados en Rhode Island, tales como español, portugués, camboyano y caboverdiano. El Poder Judicial de Rhode Island también creó un Aviso de Derecho a la Asistencia Idiomática, el que indica que el tribunal proveerá sin costo un intérprete competente para cualquier parte o testigo con conocimientos limitados del inglés y explica el procedimiento para solicitar un intérprete o una traducción del aviso a otros idiomas. Se debe entregar el aviso a cada demandado en un proceso judicial y el mismo está disponible en varios idiomas. En casos civiles, se debe incorporar o anexar el aviso a los alegatos iniciales a ser entregados al demandado. En casos penales, se debe incorporar o anexar el aviso a los documentos de acusación inicial entregados al demandado, en los formularios completados por un comisionado de fianzas o provistos por el tribunal al demandado en su comparecencia inicial al tribunal. Además, existe un formulario de queja sobre servicios idiomáticos disponible en varios idiomas en el portal del tribunal en Internet, en la oficina del secretario del juzgado y la Oficina de Intérpretes Judiciales.
El plan fue exigido en 2012 por el Presidente de la Corte Suprema Paul A. Suttell por medio de una orden ejecutiva emitida después de extensas deliberaciones con el departamento. La Oficina de Intérpretes Judiciales y la Oficina Administrativa de Tribunales Estatales analizarán anualmente la eficacia del plan y considerarán cambios para mejorar sus políticas y procedimientos. El plan incluye una importante exigencia de contar con las opiniones de las partes interesadas y consultar a las mismas. El acuerdo también exige que el tribunal tome medidas adicionales en colaboración con el departamento y dispone un período de al menos dos años de monitoreo y asistencia técnica.
"Elogiamos al Presidente de la Corte Suprema Suttell, el personal del Poder Judicial de Rhode Island y otras partes interesadas de Rhode Island que contribuyeron para esta proceso, por su labor constante y determinación compartida de que la justicia y la igualdad en los tribunales de Rhode Island no se limite a las personas con dominio del inglés", señaló la Secretaria de Justicia Auxiliar Interina Jocelyn Samuels de la División de Derechos Civiles.
La demanda fue resuelta como parte de la iniciativa de la Sección de Coordinación y Cumplimiento Federal [Federal Coordination and Compliance Section (FCS)] de la División de Derechos Civiles para asegurar que los tribunales estatales cumplan con las exigencias de acceso idiomático del Título VI. Para garantizar que no se le niegue justicia a ninguna persona LEP debido a la falta de provisión de servicios idiomáticos por parte de un tribunal, el Equipo de Tribunales de la FCS, liderado por la Consejera Legal Especial Christine Stoneman, brinda orientación en políticas y asistencia técnica a sistemas judiciales estatales y hace valer la ley en todo el país. Recientemente, la FCS lanzó una Herramienta para la planificación y asistencia del acceso idiomático y resolvió una queja con el Tribunal Superior del Condado de King en Washington.
Estuvo a cargo del caso de Rhode Island el Abogado de la FCS Paul M. Uyehara de la División de Derechos Civiles, con la asistencia del Secretario de Justicia Auxiliar Ndidi N. Moses en calidad de Abogado Asignado al FCS.
Para obtener más información sobre el Título VI y la Ley de Calles Seguras, o para obtener copias de la carta, visite este portal.
El Departamento de Justicia Da Conocer los Resultados Investigativos del Departamento de Policía de AlbuquerqueRead the Press Release
WASHINGTON – Después de una amplia investigación, el Departamento de Justicia anunció hoy que el Departamento de Policía de Albuquerque (DPA) ha estado involucrado en patrones o prácticas del uso excesivo de fuerza, mismos que violan la Constitución y la ley federal. Esta mañana el Departamento de Justicia hizo entrega de una carta al alcalde de Albuquerque, Richard J. Berry y al jefe de policía Gorden Eden la cual expone los resultados de la investigación.
La investigación comenzó el 27 de noviembre, 2012 y fue llevada a cabo conjuntamente por la División de Derechos Civiles y la oficina del Procurador Federal por el Estado de Nuevo México. La investigación examinó si el DPA toma parte en un patrón o en una práctica no constitucional del uso de fuerza excesiva, incluyendo fuerza mortal, así como cualquier patrón o práctica de violación de ley. La investigación no evaluó si cualquier conducta violaba leyes criminales. Casos específicos han sido referidos a la Sección Criminal de la División de Derechos Civiles para ser considerados.
El Departamento de Justicia encontró causa razonable para creer que DPA está involucrado en un patrón que practica del uso excesivo de fuerza, violando así la Cuarta Enmienda de la Constitución de los Estados Unidos. El departamento encontró específicamente tres patrones de fuerza excesiva:
- Oficiales del DPA muy frecuentemente utilizan fuerza mortal contra personas que representan una amenaza mínima y en situaciones donde la conducta de los oficiales exalta el peligro y contribuye a la necesidad del uso de fuerza;
- Oficiales del DPA utilizan fuerza menos letal, incluyendo armas de control electrónico, contra personas quienes están resistiendo pasivamente, no son una amenaza, quienes visiblemente no pueden obedecer órdenes o que presentan solamente una amenaza mínima a los oficiales; y
- Encuentros entre oficiales del DPA y personas con enfermedad mental y en crisis, muy frecuentemente resultan en el uso de fuerza o en el uso de fuerza a un nivel más alto de lo necesario.
El Departamento de Justicia también encontró deficiencias sistémicas con el DPA las cuales contribuyen a estos tres patrones, incluyendo: políticas deficientes, sistemas de responsabilidad fallidos, entrenamiento inadecuado, supervisión inadecuada, sistemas de investigación y adjudicación inefectivos, la ausencia de una cultura de colaboración ciudadana, y la falta de suficiente vigilancia civil.
La investigación del departamento involucró una revisión profunda de documentos del DPA, así como la participación extensiva de la comunidad. El departamento revisó miles de páginas de documentos, incluyendo políticas escritas y procedimientos, reportes internos, data, videos y archivos investigativos. Abogados del departamento e investigadores asistidos por expertos en materia policial, también llevaron a cabo entrevistas con oficiales del DPA, supervisores y personal de comando, oficiales de la ciudad; y cientos de entrevistas a miembros de la comunidad y defensores locales.
"Estamos muy preocupados por los resultados de nuestra investigación y esperamos poder trabajar con la ciudad de Albuquerque para desarrollar unas reformas firmes y duraderas", dijo Jocelyn Samuels, Procuradora General Auxiliar Interina de Derechos Civiles. "Nuestro trabajo de ayudar a los departamentos de policía alrededor de la nación, tiene la intención de fomentar principios importantes. Hacer a la policía responsable de prácticas Constitucionales mejora la confianza pública, promueve la seguridad pública y hace que el trabajo de proveer servicios policíacos sea más seguro, más fácil y más efectivo. La confianza pública se ha roto en Albuquerque, pero se puede reparar a través de este proceso".
"La primicia de hoy marca un importante punto de partida para hacerle frente a los problemas que han plagado a nuestra comunidad y al Departamento de Policía de Albuquerque por años", dijo Damon Martínez, Procurador Federal Interino por el Distrito de Nuevo México. "Estos resultados llegan en un tiempo único para la ciudad y para el Departamento de Policía de Albuquerque y proveerán un plan de acción para cambiar la cultura del Departamento de Policía de Albuquerque y para reconstruir la relación con la comunidad a la cual sirve. A pesar de que hay asuntos difíciles y sistémicos por resolver, aceptamos estos retos y estamos muy optimistas por el futuro del Departamento de Policía de Albuquerque".
El Departamento de Justicia espera seguir contando con la cooperación de la Ciudad y del Departamento de Policía para resolver estos hallazgos bajo términos mutuamente aceptables, que darán respuestas al público y rendirán medidas correctivas dentro de un tiempo determinado.
Un reporte completo puede ser encontrado en http://justice.gov/crt/about/spl/findsettle.php y http://www.justice.gov/usao/nm/APD.html. Para más información sobre la División de Derechos Civiles del Departamento de Justicia, por favor visite el www.justice.gov/crt/. Cualquier comentario o duda sobre el reporte puede ser dirigido a [email protected] o 1-877-218-5228.
Resumen de Hallazgos Departamento de Policía de Albuquerque
Donna Man Charged with Hacking into Multiple Local ServersRead the Press Release
McALLEN, Texas – Fidel Salinas, 27, of Donna, has been charged in a superceding federal indictment with new computer-hacking charges, announced United States Attorney Kenneth Magidson.
Salinas was originally indicted in October of last year on one charge of attempting to gain unauthorized access to the Hidalgo County web server and, as a result, causing damage and loss of more than $5,000. Further investigation has resulted in the return of a superseding indictment, returned April 2, 2014, alleging 14 additional charges. He is excepted to make his initial appearance before U.S. Magistrate Judge Peter E. Ormsby today at 8:45 a.m.
The additional counts allege that between November 2011 and January 2012, he repeatedly tried to gain unauthorized access to, cause damage to and obtain information from web servers hosting websites for Hidalgo County, La Joya Independent School District and The Monitor newspaper. Salinas allegedly belonged to a conspiracy related to the computer-hacking group “Anonymous” and that he entered into a chat room belonging to Anonymous’ Operation Anti-Security.
The FBI arrested Salinas in Donna 2013 upon the filing of a criminal complaint. According to that complaint, during the late evening of Jan. 4, 2012, through early morning Jan. 5, 2012, Salinas made more than 14,000 hacking attempts to the administration management page of the Hidalgo County web site server. This allegedly resulted in true administrators being unable to access their web site and the county incurring losses of more than $10,000 in responding to the attack. Following that alleged hacking incident, the FBI discovered Salinas had allegedly posted a quote used by Anonymous and other “hacktivist” groups on his Facebook page.The maximum sentence varies for each count as charged in the indictment, reaching a maximum of up to 10 years in federal prison upon conviction on the most serious charge.
Each of the charges carry a maximum sentence of up to 10 years in federal prison, upon conviction.
The FBI is investigating with the assistance of the Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Christopher Sully is prosecuting the case.
A complaint or indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Department of Justice and Rhode Island Judiciary Enter into Agreement for Provision of Language Assistance Services in Rhode Island CourtsRead the Press Release
The Justice Department today announced it has reached an agreement with the Rhode Island Judiciary to ensure that limited English proficient (LEP) individuals will have access to timely and competent language assistance at no charge in all court proceedings, services and programs throughout the state court system.
As part of the agreement, the department approved the Rhode Island Judiciary’s Language Access Plan, which outlines the efforts to be undertaken in order to ensure comprehensive language assistance throughout the court system. The plan requires ongoing translations of forms and signs in court buildings into commonly spoken languages in Rhode Island, such as Spanish, Portuguese, Cambodian and Cape Verdean. The Rhode Island Judiciary also created a Notice of Right to Language Assistance which states that the court will provide a competent interpreter for any limited English proficient party or witness at no charge, and explains the procedure to request an interpreter or a translation of the notice into other languages. The notice must be provided to each defendant in a proceeding and is available in multiple languages. In civil matters, the notice must be incorporated in or attached to the initial pleading to be served upon the defendant. In criminal matters, the notice must be incorporated in or attached to the initial charging documents provided to the defendant, in the forms completed by a bail commissioner or provided by the court at the defendant’s her initial court appearance. In addition, a language services complaint form is available in multiple languages on the court’s website, in the court clerk’s office and at the Office of Court Interpreters.
The plan was mandated in 2012 by Chief Justice Paul A. Suttell through an executive order that was issued after extensive consultation with the department. The Office of Court Interpreters and the Administrative Office of State Courts will review the effectiveness of the plan and consider changes to improve its policies and procedures on an annual basis. The plan includes an important requirement for input from and consultation with stakeholders. The agreement also requires additional steps to be taken by the court in consultation with the department and provides for at least two years of monitoring and technical assistance.
“Chief Justice Suttell, the Rhode Island Judiciary staff and the other Rhode Island stakeholders who contributed to this process are to be commended for their ongoing efforts and shared determination that justice and equality in Rhode Island courts not be restricted to those proficient in English,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.
The complaint was resolved as part of the initiative by the Federal Coordination and Compliance Section (FCS) of the Civil Rights Division to ensure that state courts comply with the language access requirements of Title VI. To ensure that no LEP individual is denied justice due to a court’s failure to provide language services, the FCS Courts Team, led by Special Legal Counsel Christine Stoneman, provides policy guidance and technical assistance to state court systems and undertakes enforcement actions across the country. Recently, FCS released a Courts Language Access Planning and Assistance Tool and resolved a complaint with the King County Superior Court in Washington.
The Rhode Island matter was handled by FCS Attorney Paul M. Uyehara of the Civil Rights Division with the assistance of Assistant U.S. Attorney Ndidi N. Moses, who was serving as a Detail Attorney to FCS.
For more information about Title VI and the Safe Streets Act, or to obtain copies of the settlement documents, please visit this website.
Dallas Men Sentenced on Firearms ConvictionsRead the Press Release
DALLAS — Two Dallas men, who were stopped by officers with the Dallas Police Department (DPD) for a traffic violation in March 2013, and who subsequently pleaded guilty to federal firearms offenses, have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
U.S. District Judge Sam A. Lindsay sentenced Ivy Johnson, Jr., 26, to 40 months in federal prison. In February 2014, Judge Lindsay sentenced Jose Enrique Castaneda, 21, to 39 months in federal prison. Johnson, who is under indictment in Dallas County on a felony drug charge, pleaded guilty to one count of illegal receipt of a firearm by a person under indictment; Castaneda, who is illegally in the U.S., pleaded guilty to one count of being an illegal alien in possession of a firearm.
According to documents filed in the case, on March 21, 2013, DPD officers were investigating a drug complaint at a house on Cowan Avenue in Dallas when they observed a white truck leave the residence. Soon thereafter, the truck failed to come to a complete stop at the intersection of Marsha and Walnut Hill, and officers initiated a traffic stop. Castaneda was driving the vehicle and Johnson was in the passenger seat. There was a semi-automatic pistol in plain view on the driver’s seat, and what appeared to be a large rifle case between Johnson’s legs. As Castaneda exited the truck, Johnson opened the passenger door and fled, but was apprehended soon thereafter. Officers noticed a strong odor of marijuana in the truck.
In searching for the source of the marijuana odor, officers recovered a 9-millimeter pistol in the driver’s seat and a Romarm rifle in the rifle case. Officers also found two additional rifles in the floorboard behind the driver’s seat and 72 individually packaged bags of marijuana in the glove compartment.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the DPD investigated the case. Assistant U.S. Attorney Cara Pierce prosecuted.
DOJ Partners with Seattle Mariners and Community Organizations for Anti-Bullying CampaignRead the Press Release
Seattle Mariners All-Star pitcher Felix Hernandez and Grammy Award-winning recording artist Macklemore are joining forces with Seattle area middle schools to help foster a safe and respectful learning environment for all students. Hernandez and Macklemore launched the #ChangeTheGame campaign on April 10 at Safeco Field by surprising a group of students from Highland Middle School in Bellevue, Washington. The students were brought to Safeco Field to be part of an anti-bullying public service announcement with the Mariner Moose. Then, after a few shots with Moose, Hernandez and Macklemore unexpectedly appeared from the dug out to film the PSA with the students.
"Only together we can change the game and ensure every kid's right to a safe school, free from bullying and intimidation," said U.S. Attorney Jenny A. Durkan. "Felix Hernandez and Macklemore show the power of celebrating differences and treating others with kindness. The Department of Justice is proud to partner with the Seattle Mariners and community organizations, and thank them for their leadership in working to "Change the Game" and promote safe and healthy schools."
In the PSA, the two superstars from sports and music talk about how they may look different than most people, whether it is their haircuts or the clothes they wear, but just because someone is different doesn’t mean they should be teased or bullied. They ask students to “be kind, stay positive, and support each other,” and to sign an anti-bullying pledge. The PSA ends with the line, “Together, we can change the game.” The 30-second PSA will be distributed to radio and TV stations throughout Western Washington.
“Everyone deserves to feel safe at their school. I hope kids will hear our message and treat each other with respect and kindness,” said Hernandez.
"It's an honor to be working with the Mariners and Felix Hernandez to help spread a message of individuality to our area schools. We hope to encourage our youth to feel free to be themselves and to take care of each other along the way," said Macklemore.
The campaign also consists of an education component for Seattle-area middle schools with posters and activity guides for teachers, as well as online resources at mariners.com/changethegame to provide students, teachers and parents tools to help address the issue of bullying in schools. Parents can help their children complete the activities and take the anti-bullying pledge to be entered into a contest to meet Hernandez and Macklemore prior to the Seattle Mariners vs. New York Yankees game on Thursday, June 12, which is Macklemore Bobblehead Night at Safeco Field.
Partnering with the Mariners on the campaign are the King County Sexual Assault Resource Center; Committee for Children; U.S. Department of Justice, United States Attorney’s Office, Western District of Washington, and DOJ’s Community Relations Service; and Copacino+Fujikado.
Crime Victims, Good Samaritans and Community Groups Honored at Event Marking National Crime Victims’ Rights Week- U.S. Attorney Machen Cites Bravery of Victims, Survivors -Read the Press Release
WASHINGTON - U.S. Attorney Ronald C. Machen Jr. and the Victim Witness Assistance Unit of the U.S. Attorney’s Office for the District of Columbia today paid tribute to more than 50 crime victims, their families, witnesses, and community advocates for their bravery, compassion, and dedication to the pursuit of justice.
The honorees were recognized during a ceremony at the U.S. Attorney’s Office for the District of Columbia, timed with the annual observance of National Crime Victims’ Rights Week. This year’s theme, “30 Years: Restoring the Balance of Justice,” focuses on the strides that have been made for victims since the passage of the Victims of Crime Act in 1984.
In addition to U.S. Attorney Machen, speakers at today’s ceremony included Angela Rose, the founder and executive director of Promoting Awareness/Victim Empowerment (PAVE), a community-based, non-profit organization that uses social, educational and legislative tactics to bring attention to the issue of sexual violence. Ms. Rose is a survivor of a brutal sexual assault and has worked to assist victims of sexual assault throughout the country. PAVE now has more than 35 chapters and affiliates, including an affiliate in the District of Columbia.
“We all aspire to help victims seek justice, find hope, and rebuild their lives,” said U.S. Attorney Machen. “In doing so, we ourselves are inspired by the courage and dignity of these victims and survivors. It is important for us to stand up and celebrate those who are brave enough to say something or do something to make our community a safer place.”
Today’s ceremony included awards for several individual victims and Good Samaritans whose efforts furthered the cause of justice. For example, the honorees included a carjacking victim and the police officers and civilians who came to her aid; two former students from Catholic University, who helped rescue and then protect a woman who was being assaulted; the neighbors of a young man who came to them for help after his brother killed their mother; people who banded together to help an elderly woman whose husband had been slain, and others who stepped forward as witnesses and advocates on behalf of victims of crime. The honorees also included a supervisory victims’ coordinator for the U.S. Parole Commission who ensured that the family of a murder victim had the opportunity to be heard regarding the killer’s request for parole. The family’s views were taken into consideration and the offender was not released.
The program also recognized the work of organizations such as FAIR Girls, a non-profit based in the District of Columbia that sponsors programs worldwide to prevent the exploitation of girls. FAIR Girls has provided assistance in numerous cases in the District of Columbia, offering support and services to victims of human trafficking and sexual abuse.
Special recognition was given to the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. The task force’s work has led to numerous prosecutions of people in the District of Columbia for child pornography charges and other federal offenses. Undercover officers act swiftly when they learn of victims of sexual abuse and child pornography, and their work has led to arrests in recent months of defendants in Ohio, North Carolina, Indiana, Texas, and Pennsylvania.
Today’s event was developed and organized by the Victim Witness Assistance Unit of the U.S. Attorney=s Office for the District of Columbia. Members of the Unit provide essential services and support to victims and witnesses, such as making referrals for counseling, addressing safety concerns, assisting with access to Crime Victim Compensation Program funds, and accompanying victims to court proceedings. The Unit also notifies victims of their rights and provides information regarding significant case events, such as the filing of charges, plea hearings, trials and sentencing hearings.
As part of this year’s National Crime Victims’ Rights Week, the Department of Justice gave special recognition to the Victim Witness Assistance Unit of the U.S. Attorney’s Office for the District of Columbia. The Unit won two honors: Outstanding Victim Services Professionals of 2014, and Victims’ Rights and Restitution Act Champion of 2014. The Department of Justice cited, for example, the Unit’s work to ensure that families and victims of last year’s mass shooting at the Washington Navy Yard were provided with invaluable resources and support.
Additional information about the Victim Witness Assistance Unit is available at http://www.justice.gov/usao/dc/programs/vw/vwa.html.
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
14-084Crime Victims, Good Samaritans and Community Groups Honored at Event Marking National Crime Victims’ Rights Week- U.S. Attorney Machen Cites Bravery of Victims, Survivors -Read the Press Release
WASHINGTON - U.S. Attorney Ronald C. Machen Jr. and the Victim Witness Assistance Unit of the U.S. Attorney’s Office for the District of Columbia today paid tribute to more than 50 crime victims, their families, witnesses, and community advocates for their bravery, compassion, and dedication to the pursuit of justice.
The honorees were recognized during a ceremony at the U.S. Attorney’s Office for the District of Columbia, timed with the annual observance of National Crime Victims’ Rights Week. This year’s theme, “30 Years: Restoring the Balance of Justice,” focuses on the strides that have been made for victims since the passage of the Victims of Crime Act in 1984.
In addition to U.S. Attorney Machen, speakers at today’s ceremony included Angela Rose, the founder and executive director of Promoting Awareness/Victim Empowerment (PAVE), a community-based, non-profit organization that uses social, educational and legislative tactics to bring attention to the issue of sexual violence. Ms. Rose is a survivor of a brutal sexual assault and has worked to assist victims of sexual assault throughout the country. PAVE now has more than 35 chapters and affiliates, including an affiliate in the District of Columbia.
“We all aspire to help victims seek justice, find hope, and rebuild their lives,” said U.S. Attorney Machen. “In doing so, we ourselves are inspired by the courage and dignity of these victims and survivors. It is important for us to stand up and celebrate those who are brave enough to say something or do something to make our community a safer place.”
Today’s ceremony included awards for several individual victims and Good Samaritans whose efforts furthered the cause of justice. For example, the honorees included a carjacking victim and the police officers and civilians who came to her aid; two former students from Catholic University, who helped rescue and then protect a woman who was being assaulted; the neighbors of a young man who came to them for help after his brother killed their mother; people who banded together to help an elderly woman whose husband had been slain, and others who stepped forward as witnesses and advocates on behalf of victims of crime. The honorees also included a supervisory victims’ coordinator for the U.S. Parole Commission who ensured that the family of a murder victim had the opportunity to be heard regarding the killer’s request for parole. The family’s views were taken into consideration and the offender was not released.
The program also recognized the work of organizations such as FAIR Girls, a non-profit based in the District of Columbia that sponsors programs worldwide to prevent the exploitation of girls. FAIR Girls has provided assistance in numerous cases in the District of Columbia, offering support and services to victims of human trafficking and sexual abuse.
Special recognition was given to the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. The task force’s work has led to numerous prosecutions of people in the District of Columbia for child pornography charges and other federal offenses. Undercover officers act swiftly when they learn of victims of sexual abuse and child pornography, and their work has led to arrests in recent months of defendants in Ohio, North Carolina, Indiana, Texas, and Pennsylvania.
Today’s event was developed and organized by the Victim Witness Assistance Unit of the U.S. Attorney=s Office for the District of Columbia. Members of the Unit provide essential services and support to victims and witnesses, such as making referrals for counseling, addressing safety concerns, assisting with access to Crime Victim Compensation Program funds, and accompanying victims to court proceedings. The Unit also notifies victims of their rights and provides information regarding significant case events, such as the filing of charges, plea hearings, trials and sentencing hearings.
As part of this year’s National Crime Victims’ Rights Week, the Department of Justice gave special recognition to the Victim Witness Assistance Unit of the U.S. Attorney’s Office for the District of Columbia. The Unit won two honors: Outstanding Victim Services Professionals of 2014, and Victims’ Rights and Restitution Act Champion of 2014. The Department of Justice cited, for example, the Unit’s work to ensure that families and victims of last year’s mass shooting at the Washington Navy Yard were provided with invaluable resources and support.
Additional information about the Victim Witness Assistance Unit is available at http://www.justice.gov/usao/dc/programs/vw/vwa.html.
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
14-084Court Orders Release of 4 Charged in Robery of Jewelry StoreRead the Press Release
St. Thomas, USVI – Over the objection of the Government, United States Magistrate Judge Ruth Miller today ordered the release of the four men charged in the robbery of Imperial Jewelry Store on St. Thomas, United States Attorney Ronald W. Sharpe announced. Judge Miller stayed her order releasing the four men until 9 a.m. Monday to give the Government an opportunity to appeal the order to the district court judge.
Shaquim Fredericks, 19, Warkim Gabriel, 18, Alvin Thomas, 19, and Chefton Newton, 26, all of St. Thomas, were charged in Federal Court on April 4 with Interference with Commerce by Threats of Violence. They appeared today in federal court for their preliminary and detention hearing.
After finding probable cause to charge the four men with Hobbs Act robbery, the court ordered their release with conditions, including: home confinement, electronic monitoring, thirdparty custodian and $50,000 cash bond. The four men are allowed to post 10% of the bond.
According to documents filed in federal court, on March 15, 2014, the four defendants and three additional individuals committed armed robbery of the Imperial Jewelry Store on Main Street, St. Thomas, robbing the store of more than $1millionworth of merchandise. After leaving the store, the defendants fled to the bushy area behind Fireburn Hill where they were apprehended by officers and detectives from the Virgin Islands Police Department.
If convicted, defendants face a statutory maximum sentence of 20 years in prison.
This case is being investigated by the Bureau of Alcohol Tobacco Explosives and Firearms, the Federal Bureau of Investigations, and the Virgin Islands Police Department. It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
Charges Allege Woman Used Dead Mother's Government BenefitsRead the Press Release
Elizabeth Goode-Bishop, 65, of New Castle, Delaware, was charged today by information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant received retirement benefits intended for her mother, after her mother’s death in March 1988 until her fraud was discovered in October 2013. The defendant’s alleged actions resulted in a loss to the government of approximately $169,198.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, a three year period of supervised release, restitution to the government of $169,198, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Carbon County Man Sentenced to Prison for Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Carbon County man was sentenced today, in federal court in Scranton by Senior United States District Judge Edwin M. Kosik, to serve 37 months in prison on the charge of aiding and abetting the distribution of cocaine.
According to United States Attorney Peter Smith, Alexander “Butch” Sommers, age 48, of Summit Hill, Carbon County, previously pleaded guilty to assisting others in distributing crack cocaine and powder cocaine in the Carbon County area between January 2011 and December 2012.
In addition to the prison term, Senior Judge Kosik also ordered that Sommers be supervised by a probation officer for four years following his release from prison.
Sommers was indicted by a federal grand jury on October 30, 2012, after an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
Previously, Victoria Argott, age 34, of Lansford, Carbon County, the former girlfriend of Sommers, was sentenced to 40 months in federal prison for participating in the same cocaine trafficking conspiracy.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
California Man Receives 10-Year Federal SentenceRead the Press Release
EUGENE, Ore. – Victor Rivera-Cruz, 39, of Orange County, California, was sentenced today by U.S. District Court Chief Judge Ann Aiken to a 10-year prison term for possession with the intent to distribute methamphetamine. Following his release from prison, Rivera-Cruz will be on supervised release for five years.
In April 2012, the Oregon State Police conducted a traffic stop of defendant’s vehicle near Glenwood, Oregon. A search of the vehicle revealed nearly four pounds of methamphetamine. Rivera-Cruz’ criminal history includes convictions in 2001 and 2002 for possession of controlled substances, and convictions in 2005 for possession for sale of heroin, cocaine, methamphetamine and marijuana, felon in possession of a firearm, and child abuse.
This case was investigated by the Eugene Resident Office of the Drug Enforcement Administration and the Oregon State Police. Assistant United States Attorney Jeffrey Sweet prosecuted the case.
Burlington Man Sentenced for Child Exploitation OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Kevin Gallagher, 32, of Burlington, Vermont, was sentenced on April 7, 2014, in United States District Court in Burlington, Vermont, to serve six months imprisonment following his guilty plea to one count of possession of child pornography. United States District Judge William K. Sessions III also ordered the defendant to serve six months of home incarceration as part of a five-year term of supervised release, and to pay a $100 special assessment.
According to court records, law enforcement was conducting undercover operations on a file-sharing network, and discovered a computer later identified as belonging to Gallagher was offering to share image files depicting child pornography. Law enforcement seized Gallagher’s computer pursuant to a search warrant on February 1, 2013, and discovered nearly 400 images and videos depicting child pornography on it.
United States Attorney Coffin commended the work of the Vermont Attorney General’s Office, the Vermont Internet Crimes Against Children Task Force, and Homeland Security Investigations, Department of Homeland Security. Gallagher was represented by John Pacht of Hoff Curtis. The case was prosecuted by Assistant United States Attorney Barbara A. Masterson.
United States Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Brooklyn Fish Processors Ordered to Comply with Sanitation RemediesRead the Press Release
After a bench trial handled by the Department of Justice, the U.S. District Court for the Eastern District of New York has entered an injunction against New York City Fish Inc., Maxim Kutsyk, Pavel Roytkov and Leonid Staroseletesky under the federal Food, Drug and Cosmetic Act (FDCA). The court found that each of the defendants had violated the FDCA in the past and that the court had “scant assurance” that defendants would comply with food safety laws going forward. The defendants manufacture ready-to-eat fishery products, including smoked salmon and mackerel, and operate out of a food processing facility located at 738 Chester Street in Brooklyn.In its verdict, the court found that each of the defendants had failed to keep the Chester Street Facility in compliance with current Good Manufacturing Practices, failed to keep records necessary to evaluate food safety and processed fish in a way that could lead to Listeria monocytogenes (L. mono) contamination. People who eat food contaminated with this bacterium can contract the disease listeriosis, which can be serious—even fatal—for vulnerable groups such as newborns and those with impaired immune systems. Complications from the disease can also lead to miscarriage. The court also found that, during several inspections dating back to 2006, FDA testing revealed the presence of L. mono in the facility.
The court ordered injunction provides for important remedies. Among other provisions, the injunction prohibits defendants from operating the Chester Street Facility until an independent laboratory and an independent sanitation expert develop a Listeria Monitoring Program satisfactory to the FDA and until the FDA is satisfied that defendants will fully comply with that program on an ongoing basis. The facility cannot begin operating again until defendants have cleaned and sanitized the Chester Street Facility and laboratory testing shows that L. mono is no longer present in the facility.The lawsuit was handled by Trial Attorney Adrienne Fowler of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Elliot M. Schachner of the Eastern District of New York, with the assistance from FDA Assistant Chief Counsel for Enforcement Julie Dohm.
Benson Man Sentenced on Narcotics Distribution and Weapons ChargesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that today, FELIX A. OKAFOR, 53, of Benson, North Carolina, was sentenced by Senior United States District Judge Malcolm J. Howard to 3,157 months (approximately 263 years) and 6 years of supervised release. OKAFOR was convicted of 25 drug and firearms offenses including conspiracy to distribute 100 grams of heroin and 100 kilograms of marijuana, four counts of distribution of marijuana, six counts of distribution of heroin, distribution of drugs within 1000 feet of a school, and 11 counts of possession of a firearm during a drug trafficking crime.
During a four day trial that concluded on July 11, 2013, the government presented evidence that between on or about November 8, 2011, through on or about January 11, 2012, OKAFOR sold various quantities of marijuana and heroin multiple times to a confidential informant at the defendant’s convenience store, the Flying Eagle, in Benson, North Carolina. OKAFOR possessed a gun in his pocket during each of these transactions. Additionally, the defendant used the Flying Eagle to cut and package the drugs to sell. The store was within 1000 feet of Benson Middle School.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives the North Carolina State Bureau of Investigation, the Johnston County Sheriff’s Office and North Carolina Alcohol Law Enforcement (ALE). Assistant United States Attorney Ethan A. Ontjes prosecuted the case.
Beaver County Prescription Drug Ring Leader Guilty of Violating Firearms, Narcotics and Burglary LawsRead the Press Release
PITTSBURGH – After hearing seven days of testimony from more than 33 witnesses, and after deliberating for nine hours, a federal jury of seven men and five women found David Best guilty of 11 counts of violating federal firearms, narcotics and burglary laws, United States Attorney David J. Hickton announced today.
David Best, 28, of Coraopolis, Pa., was tried before United States District Judge Arthur J. Schwab in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Eric S. Rosen, who prosecuted the case, the evidence presented at trial established that Best conspired together with others, from in and around July 2011, and continuing thereafter to in and around May 2013, to distribute and possess with intent to distribute large quantities of oxycodone and Opana, both of which are Schedule II controlled substances. Additionally, on April 18, 2013 and April 30, 2013, Best distributed oxycodone and oxymorphone, in the form known as Opana to a confidential informant. These sales were captured on videotape. The evidence presented at trial demonstrated that David Best was the leader of this Beaver County based drug trafficking organization which, over the course of the conspiracy, possessed with the intent to distribute and distributed Schedule II prescription drugs with an estimated street value of more than $600,000.
The jury also determined that on three separate occasions, Dec. 1, 2011, Sept. 26-27, 2012, and Feb. 15, 2013, Best burglarized the MedFast pharmacy in Baden, Pa.,, and from that pharmacy, stole a number of Schedule II controlled substances, including: fentanyl, oxymorphone, including in the form known as Opana, Ritalin, oxycodone, including in the form known as Oxycontin, methylphenidate, Vyvanse, morphine sulfate, Roxicet, Focalin, methylphenidate, hydromorphone, methadone, and meperidine. On two occasions, Best chiseled through the wall of the neighboring China Garden restaurant into the pharmacy, and on the third occasion, Best broke into the Bo-Rics hair salon, and from there, burrowed directly into the MedFast controlled substances cabinet. Best stole these controlled substances in order to distribute them.
Finally, the jury convicted David Best of carrying and brandishing a loaded revolver during and in relation to his drug trafficking conspiracy on June 20, 2012. The jury determined that Best held two men hostage at gunpoint after he lured them to his Economy Township home under the guise that he had a large stash of drugs and drug proceeds in his room. Best suspected that these two men were conspiring to steal his drug proceeds, so he preemptively attacked and held them hostage at gunpoint. The jury also found that Best possessed this firearm in furtherance of his drug trafficking conspiracy.
Judge Schwab scheduled sentencing for Sept. 15, 2014, at 9:30 a.m. On the drug distribution charges, the law provides for a maximum sentence of up to 20 years in prison on each count and a fine of up to $1,000,000. On the pharmacy burglary charges, the law provides for a maximum total sentence as to each count of up to 20 years in prison and a fine of up to $250,000. These sentences can be imposed concurrently or consecutively to each other. Finally, for the firearms charge, the Court must impose a mandatory minimum sentence of seven years imprisonment, a maximum of life imprisonment, and a fine of up to $250,000. The firearms sentence must be imposed consecutively to all other sentences, including those for drug distribution. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant. Pending sentencing, the court continued the detention of David Best.
The Drug Enforcement Administration and the Economy Borough and Cranberry Township Police Departments conducted the investigation that led to the prosecution and conviction of David Best.
Baltimore Prescription Drug Trafficker Sentenced to 5 Years in PrisonRead the Press Release
Was a Member of a Drug Trafficking Conspiracy Based out of the Paschall Auto Body Shop; Loaned His Truck to Others to Use in Commercial Robberies
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Richard Ashbrook, age 51, of Baltimore, today to five years in prison followed by three years of supervised release for conspiring to distribute oxycodone.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Howard County Police Chief William McMahon; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department."The big picture about today's sentencing of Mr. Ashbrook is that prescription drug trafficking in Maryland is a growing problem," stated Gary Tuggle, DEA Assistant Special Agent in Charge. “As a result of the illegal abuse of opiate based drugs like oxycodone, a wider epidemic of opiate addiction has developed in Maryland. We now have a new sub culture of opiate addicted individuals; individuals who now turn to heroin to feed their habits all because of prescription drug abuse."
According to his plea agreement, from the spring of 2012 to July 2013, Ashbrook illegally sold prescription pills, often OxyContin and Percocet, to David Paschall and others. David Paschall operated Paschall’s Auto Body Shop, formerly located at 801 Desoto Road in Baltimore. Ashbrook knew that the business was operating as a hub for the sale of illegal narcotics - mostly oxycodone, but also heroin, cocaine and other illegal drugs. Ashbrook sold oxycodone to David Paschall that was either prescribed to him, or which he had illegally obtained from others. Ashbrook sold more than 14,930 milligrams of oxycodone, which is roughly 1,000 15mg pills. He further admitted that members of the conspiracy distributed between 14.93 and 59.70 grams of oxycodone.Ashbrook also knew of other illegal conduct being committed by his coconspirators and others. David Paschall and others borrowed Ashbrook’s truck to use in commercial burglaries. On April 8, 2013, law enforcement overheard Ashbrook warning David Paschall about the light coming on when the truck doors are open, and suggesting that Paschall use a screwdriver to pop out the light, to avoid detection by law enforcement.
David Paschall, age 54, of Catonsville, Maryland, and his son, Chad Paschall, age 28, of Baltimore, pleaded guilty in February 2014 to conspiring to distribute oxycodone and two counts of conspiring to commit bank burglary. The Paschalls admitted to committing commercial burglaries in Maryland, Virginia, West Virginia and Pennsylvania. According to their plea agreements, the Paschalls conspired to steal cash, money orders, stamps, silver bars, jewelry, cigarettes, lottery tickets, prescription drugs, food, beverages, safes, laptop computers, cell phones, electronics, vehicles and other valuable items from gas stations, convenience stores, banks, credit unions and other commercial establishments.
At their sentencing, David and Chad Paschall face a maximum sentence of 20 years in prison and a $1 million fine for the drug conspiracy, and five years in prison for the bank larceny conspiracy. David Paschall has agreed to forfeit $500,000, his ownership interest in Paschall’s Auto Body Shop and his residence, three firearms and his vehicle. Chad Paschall has agreed to forfeit $250,000, his interest in his residence, four firearms and ammunition.
To date, a total of 12 defendants charged in the drug and burglary conspiracies have pleaded guilty to their participation in the criminal activities. Charges remain pending against four other defendants.
United States Attorney Rod J. Rosenstein commended the DEA, Howard County Police Department, Baltimore County Police Department; Anne Arundel County Department, ATF, Department of Health and Human Services - Office of Inspector General; Coast Guard Investigative Service and Baltimore Police Department for their work in the investigation. Mr. Rosenstein also praised the many local and state agencies in Virginia, West Virginia and Pennsylvania for their assistance in the investigation.
Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Andrea L. Smith, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Baldwin County Meth Cook Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Anthony David Granger, 31, of Robertsdale, was sentenced to 54 months imprisonment in federal court today for his participation in a conspiracy to manufacture methamphetamine. Granger pled guilty to the charge in November of 2012, and was released from custody on conditions. His conditions of release were revoked when he tested positive for the use of illegal drugs. At the sentencing hearing today, United States District Court Judge Callie V. S. Granade denied Granger’s request to receive credit for “acceptance of responsibility” under the United States Sentencing Guidelines, finding that his use of illegal drugs while under conditions of release did not show an affirmative acceptance of responsibility or a turning away from criminal behavior. Judge Granade also ordered that Granger undergo drug treatment while in prison and after his release on a four-year term of supervision, which will follow his imprisonment. She did not impose a fine, but ordered that Granger pay the $100 special mandatory assessment.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the Loxley Police Department. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Baldwin County Meth Cook Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Richard Littrell, Jr., 27, of Robertsdale, was sentenced to 84 months imprisonment on Wednesday, April 9, for his participation in a conspiracy to manufacture methamphetamine from 2009 through 2012. Littrell pled guilty to the charge in federal court in 2013 before United States District Court Judge Callie V. S. Granade. Judge Granade also ordered that Littrell serve a five-year term of supervised release following his release from imprisonment. The judge ordered that Littrell undergo drug treatment both during his incarceration and while on supervised release. Judge Granade did not impose a fine, but ordered that Littrell pay the $100 special mandatory assessment.
The case was investigated by the Baldwin County Drug Task Force, the Baldwin County Sheriff’s Office, and the Loxley Police Department. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
9 April 2014
Wickliffe Man Charged Faces Child Pornography ChargeRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that William Lintala, 31, of Wickliffe, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from in or about March 27, 2010, through on or about October 22, 2013, Lintala knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct, and possessed an Intel i5 tower computer, a Western Digital hard drive, and a Kingwin Brand USB external hard drive that contained child pornography on November 5, 2013.
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Painesville Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Westbrook Man Convicted of PerjuryRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Joel
Dudley, 29, of Westbrook, was convicted yesterday after a two-day jury trial in U.S. District
Court in Portland of making a false declaration to a federal court.According to court records and evidence introduced at trial, in April of 2013, Dudley testified at a hearing on a motion to suppress statements he made during an interview with law enforcement agents in connection with an investigation of him for possession of child pornography. At the suppression hearing held in U.S. District Court in Portland, Dudley falsely testified that he repeatedly invoked his right to counsel during the interview, but that agents continued to question him in violation of his constitutional rights. Today’s guilty verdict reflected the jury’s conclusion that Dudley’s suppression hearing testimony was knowingly false and material to, or capable of influencing the outcome of, the hearing at which he testified.
On February 25, 2014, Dudley was convicted of possession of child pornography after a two-day jury trial in U.S. District Court. Dudley will be sentenced on both cases after completion of a pre-sentence investigation report by the U.S. Probation Office. He faces a maximum sentence of up to 10 years and a fine of up to $250,000 on the child pornography charge, and a maximum sentence of up to 5 years and a fine of up to $250,000 on the false declaration charge.The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations and the Westbrook Police Department.West Orange, N.J., Woman Sentenced to 30 Months in Prison for Stealing Nearly $100,000 from an Elderly WomanRead the Press Release
TRENTON, N.J. – A West Orange, N.J., woman who defrauded an elderly victim of nearly $100,000 by taking the victim’s Social Security payments and secretly applying for a reverse mortgage on the victim’s home was sentenced today to 30 months in prison, U.S. Attorney Paul J. Fishman announced.
Shawn L. Craig, 47, previously pleaded guilty before U.S District Judge Michael A. Shipp to an information charging her with one count of mail fraud and one count of filing false personal federal income tax return for 2011 by not disclosing income, including money fraudulently obtained from her victim. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents in this case and statements made in court:
In November 2010 Craig entered into a general power of attorney with the victim, an elderly woman, to serve as her attorney-in-fact. Craig was trusted to act in the victim’s best interest and to arrange for the payment of the victim’s living expenses.
After gaining access to the victim’s bank accounts, Craig diverted a portion of the victim’s funds for her own benefit and the benefit of her family, including paying her automobile insurance; purchasing a bar and bar stools; making a tuition payment; and paying for entertainment at the Wachovia Center in Philadelphia. At the time Craig made those purchases, the funds in the victim’s accounts consisted primarily of the victim’s Social Security benefits.
In December 2010, Craig submitted an application in the victim’s name to a commercial lender for a reverse mortgage on the victim’s residence in East Orange. When the victim refused to sign a specific power of attorney permitting the closing of the reverse mortgage to go forward, Craig forged the victim’s signature on the document and presented it to the title agent at the title agent’s office in Morristown, N.J.
Craig used the money from the reverse mortgage to purchase items at retail establishments including Gucci, Coach, Nike, Apple, Footlocker and various other shoe stores; pay for meals and entertainment at restaurants, liquor stores and other establishments, including the Taj Mahal in Atlantic City, N.J., the Staples Center in Los Angeles and Amazing LA Tours in Santa Monica, Calif.; fund travel to, and stays at, hotels in New Jersey, California and Florida; and pay personal bills, including automobile insurance, gas and electric, cell phone and cable bills.
In June 2011, Craig was notified that the general power of attorney had been revoked, so she transferred the victim’s funds to a new bank account. In all, Craig misused approximately $99,000 of the victim’s funds.
Craig also admitted that she caused a tax preparer to prepare and electronically file with the IRS a false and fraudulent personal income tax return for tax year 2011 by not disclosing as income the funds that she had fraudulently obtained from the victim.
In addition to the prison term, Judge Shipp sentenced Craig to three years of supervised release, fined her $10,000 and ordered her to pay restitution of $75,663.
U.S. Attorney Fishman credited special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Region, under the direction of special Agent in Charge Christina Scaringi; the FBI, under the direction of Special Agent in Charge Aaron T. Ford; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Maureen Nakly and Jacques S. Pierre of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Thomas R. Ashley Esq., Newark
Vian Man Sentenced to 46 Months for Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CLENTON KENDALL MCCOY, age 51, of Vian, Oklahoma, was sentenced to 46 months of imprisonment, followed by 3 years of supervised release for being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Charges arose from an investigation by the Sequoyah County Sheriff’s Office. The defendant was indicted in August, 2013 and pled guilty in September, 2013.
The Indictment alleged that on or about July 1, 2013, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm, to-wit: one Harrington and Richardson .20 gauge single shot shotgun with no serial number, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Two Leaders of 'Red Breed Guerillas' Street Gang Sentenced to Lengthy Prison Terms for Drug and Gun PossessionRead the Press Release
NEWARK, N.J. – Two leaders of a Bloods street gang set known as the “Red Breed Guerillas” were sentenced today to prison terms for drug trafficking and illegal possession of weapons, U.S. Attorney Paul J. Fishman announced.
Kaseem Upshaw, a/k/a “Uzi Kaz”, 34, and Anthony Pearson, a/k/a “Iz”, 32, both of Newark, were sentenced to 130 and 128 months, respectively, in prison. Both pleaded guilty in November 2013 before U.S. District Judge Esther Salas to conspiracy to distribute heroin and being convicted felons in possession of eight firearms. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
On Sept. 1, 2011, law enforcement officials executed a search warrant on an apartment on Stratford Place in Newark. They recovered 2,440 envelopes of heroin and eight guns, including three semi-automatic rifles, four handguns, and one shotgun, as well as 400 rounds of ammunition. Pearson and Upshaw were charged in a superseding indictment with being leaders of the Bloods set known as the “Red Breed Guerillas,” which controlled the drug trade in that area of Newark, and with being responsible for maintaining that apartment as part of their heroin distribution efforts.
During their guilty pleas, both Pearson and Upshaw admitted that from March 1, 2011, through Sept. 1, 2011, they used the apartment on Stratford Place in Newark to store heroin that was eventually distributed on the street. They both admitted they were in possession of the eight firearms after having previously convicted of felonies in New Jersey Superior Court.
In addition to the prison terms, Judge Salas sentenced Upshaw and Pearson each to five years of supervised release.
U.S. Attorney Fishman credited Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski; and Newark Police Department, under the direction of Police Director Sheilah A. Coley and Police Chief Ivonne Roman, for the investigation leading to today’s sentencings.
The Government was represented by Assistant U.S. Attorneys James Donnelly and Robert Frazer of the Organized Crime/Gangs Unit in Newark.
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Defense counsel: Pearson: Michael Pedicini Esq., Chatham, N.J.
Upshaw: James Patton Esq., Livingston, N.J.Two Defendants Sentenced to Prison in Insider Trading SchemeRead the Press Release
NEWARK, N.J. – The two primary traders in an extensive insider trading network were sentenced to prison today for repeatedly using information divulged by insiders at pharmaceutical/medical technology firms operating in New Jersey, U.S. Attorney Paul J. Fishman announced.
Lawrence Grum, 50, of Livingston, N.J., was sentenced to one year and one day in prison and Michael Castelli, 50, of Morris Plains, N.J., was sentenced to nine months in prison. Grum previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with two counts of conspiracy to commit securities fraud and four counts of securities fraud. Castelli previously pleaded guilty before Judge Hayden to an information charging him with two counts of conspiracy to commit securities fraud and five counts of securities fraud. Judge Hayden imposed both sentences today in Newark federal court.
According to documents filed in this case and statements made in court: From 2007 to 2012 Grum and Castelli executed numerous, profitable trades based on inside information fed to them by their friend, Mark Cupo, 53, of Morris Plains, who was an executive at Sanofi-Aventis, a global pharmaceutical company with United States operations based in New Jersey. Cupo, in turn, obtained much of the inside information from his friend and former employee, John Lazorchak, 43, of Long Valley, N.J., who was director of financial reporting at Celgene Corp., another global pharmaceutical company based in New Jersey. Lazorchak also obtained certain inside information from Mark Foldy, 44, of Morris Plains, a friend and former high school classmate of Lazorchak, who was a marketing executive at Stryker Corp., a leading medical technology business with a major division located in New Jersey.
During the course of the multi-year insider trading operation, Grum and Castelli regularly received from Lazorchak, via Cupo, material, non-public information about Celgene’s anticipated corporate acquisitions, numerous quarterly earnings results, and regulatory news, with the understanding that Grum and Castelli would trade based on the inside information and share their profits with Lazorchak and Cupo. Grum and Castelli also received inside information directly from Cupo regarding a corporate acquisition planned by Cupo’s employer, Sanofi, as well as inside information Cupo had obtained from Lazorchak regarding a Stryker acquisition. Lazorchak, in turn, had obtained the Stryker inside information from his friend, Foldy.
Grum and Castelli made efforts to conceal their involvement in insider trading by, for example, compiling binders of market research to try to provide an independent basis for their knowledge of confidential, material nonpublic information.
The material, non-public information available to Grum and Castelli enabled them to reap substantial profits by engaging in lucrative securities trading ahead of the public announcement of several corporate acquisitions, numerous quarterly earnings results, and regulatory news. In addition, they shared a portion of their profits with Lazorchak and Cupo for their respective roles in providing Grum and Castelli inside information.
In addition to the prison terms, Judge Hayden sentenced Grum and Castelli to two years each of supervised release.
Grum and Castelli are the last of the six defendants charged with participating in this insider trading network to plead guilty. The other four defendants: Lazorchak, Cupo, Foldy, and Michael Pendolino, 44, of Nashua, N.H., entered their guilty pleas before Judge Hayden on Oct. 7, 2013, and are awaiting sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty pleas. He also thanked the U.S. Securities and Exchange Commission=s Market Abuse Unit, under the direction of Daniel M. Hawke.The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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.
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Defense counsel: Lawrence Grum: Scott A. Resnik Esq., New York
Michael Castelli: Daniel Zinman Esq. and Daniel Stein Esq., New York
John Lazorchak: Lawrence S. Lustberg Esq., Newark
Mark Cupo: Joseph J. Bell Jr. Esq. and Joseph J. Bell, IV Esq., Rockaway, N.J.
Mark Foldy: Jonathan Marks Esq., New York, Michael Pendolino: James S. Friedman Esq., NewarkTom's River, N.J., Chiropractor Admits Receiving Bribes for Patient ReferralsRead the Press Release
NEWARK, N.J. – A chiropractor with a practice in Toms River, N.J., admitted today to accepting bribes to refer a number of his patients to a New Jersey-licensed pain management physician, U.S. Attorney Paul J. Fishman announced.
Norman Eastburn, 48, of Jackson, N.J., pleaded guilty to an information charging him with one count of violating the Anti-Kickback statute. He entered his guilty plea before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to documents filed in this case and statements made in court:
Eastburn was paid a cash fee per patient he referred to the pain management physician. As part of the scheme, the pair negotiated specific kickback amounts that would be paid based on which payor would be billed – Medicare or a private healthcare insurer – and what type of pain treatment would be rendered.
Eastburn indicated to the pain physician that a medical doctor’s involvement in pain procedures would increase Eastburn’s likelihood of being reimbursed by insurers. As an example, Eastburn recounted a prior situation in which he misled a patient by telling her that she required an injection that he did not then believe, in fact, was medically necessary, then then paid a doctor $500 in cash to administer it.
The violation of the Anti-Kickback statute carries a maximum potential penalty of five years in prison and a $250,000 fine. In addition, Eastburn has agreed to forfeit to the United States the money he was paid in bribes. Sentencing is scheduled for July 8, 2014.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, with the investigation.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark
Eastburn, Norman Information
Three Iowa Men Indicted for Armed Robbery of Burlington Junction BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Iowa men were indicted by a federal grand jury today for the armed robbery of a Burlington Junction, Mo., bank.
Donald D. Kestner, Jr., 26, and Torrence Joseph O’Neill, also known as “Torry,” 26, both of Mt. Pleasant, Iowa, and Travis Joe Davis, 27, of Fort Dodge, Iowa, were charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Kestner, O’Neill and Davis stole $12,282 from Citizens Bank and Trust, 102 W. Main St., Burlington Junction, Mo., on March 21, 2014.
Kestner, O’Neill and Davis were arrested shortly after the robbery occurred. A Maryville Department of Public Safety officer in an airplane piloted by a citizen spotted the three men walking and they were arrested by the Missouri State Highway Patrol. The vehicle used in the armed bank robbery was discovered hidden among some trees and three men were seen walking away from that vehicle.
Kestner and Davis are also charged with one count of aiding and abetting one another to brandish a firearm during a crime of violence.
Kestner is also charged with being a felon in possession of a firearm. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Kestner, who has a prior felony conviction for burglary, allegedly possessed a .45-caliber pistol.
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 Rudolph R. Rhodes, IV. It was investigated by the Nodaway County, Mo., Sheriff’s Department, the Maryville, Mo., Department of Public Safety, the Missouri State Highway Patrol, the Page County, Iowa, Sheriff’s Department and the FBI.Taquarius Ford Charged with Sex Trafficking by Force, Fraud, CoercionRead the Press Release
PORTLAND, Ore. — Taquarius Kaream Ford, also known as “Cameron,” has been indicted by a federal grand jury on sex trafficking and conspiracy charges. Ford has pled not guilty to all charges. Following a detention hearing today, U.S. Magistrate Court Judge Janice M. Stewart detained Ford, pending his trial. Trial is currently set for June 3, 2014, before U.S. District Court Judge Garr M. King.
The grand jury indictment alleges that Ford and a co-conspirator sex trafficked adult females in the District of Oregon and elsewhere, by force, fraud and coercion. In its’ court filings, the government alleges that Ford recruited young women in suburban shopping malls and elsewhere across the United States by posing as a modeling executive and promising them a modeling contract. He convinced young women to travel to Los Angeles, wined and dined them in Hollywood, and then told them that if they want to be models, they must first work for him as prostitutes. In one case, he recruited an 18-year-old girl at a suburban mall, flew her to Los Angeles, and took her to Hollywood parties. He then coerced her to work in his escort business, and when she protested, he forcibly raped her. Ford and his co-defendant also threatened to harm the victim’s family. Thereafter, defendants transported the victim to Portland for the purpose of prostitution, where she was rescued at an airport hotel by Port of Portland officers. Further investigation by the FBI’s Child Exploitation Task Force revealed that defendant had recruited other young women across the country into his “escort” business. The FBI has identified additional victims in Idaho, Arizona, and Georgia.
Sex trafficking by force, fraud, and coercion carries a mandatory minimum sentence of 15 years in prison, and a statutory maximum of life imprisonment. A criminal indictment is only an allegation and not evidence of guilt. Defendant is presumed innocent unless and until proven guilty.
The FBI urges anyone who was victimized by Taquarius “Cameron” Ford, to contact the Portland FBI office at (503) 224-4181.
The charges stem from a continuing investigation by the FBI and the Tigard Police Department, members of the FBI’s Child Exploitation Task Force. The case is being prosecuted by Assistant U.S. Attorney Stacie Fatka Beckerman, and Special Assistant U.S. Attorney Glen Ujifusa of the Multnomah County District Attorney’s Office.
Suffolk Man Indicted for Making Death ThreatsRead the Press Release
NORFOLK, Va. – David Gil Wilkinson, 43, of Suffolk, Va., was indicted by a federal grand jury today for making death threats against both the President and former First Lady Hillary Clinton.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and William Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement.
Wilkinson faces a maximum penalty of 10 years if convicted.
According to an affidavit previously filed, Wilkinson, a retired Special Forces Navy Chief, called 911 in Southampton County claiming to be a FBI Agent on a secret mission. When officers responded Wilkinson told them that he was going to run for president and personally execute both the President and Hillary Clinton. Wilkinson was committed for an emergency mental health evaluation for 72 hours. Secret Service agents interviewed Wilkinson where he re-iterated his desire to execute the President and Hillary Clinton. When Wilkinson was released he drove to Henrico County, called 911 and told operators that President Obama was out, people needed to die, and he was part of a group that would take back America.
This case was investigated by the United States Secret Service. Assistant United States Attorney Joseph L. Kosky is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Steubenville Man Sentenced to 21 Years for Cocaine TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - A Steubenville, Ohio man will serve the next two decades in federal prison for his role in the distribution of cocaine in the Northern District of West Virginia and in Jefferson County, Ohio.
United States Attorney William J. Ihlenfeld, II, announced that MICHAEL T. MCGEE, age 43, of Steubenville, was sentenced to 262 months in prison at a hearing held today before U.S. District Court Judge Frederick P. Stamp, Jr. McGEE was convicted in January of the felony offense of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine” after a three-day jury trial.
MCGEE, who has prior convictions for armed robbery and cocaine and marijuana trafficking, was found by the jury to have conspired with co-defendant Ronald Snider and others to distribute cocaine from November of 2012 to June of 2013.
In announcing the sentence, U.S. Attorney Ihlenfeld praised the work of the Jefferson County, Ohio, Drug Task Force and the Drug Enforcement Administration. Ihlenfeld also commended the efforts of Assistant U.S. Attorney Robert H. McWilliams, Jr., who prosecuted the case.
State Audit Director Charged with Federal Program FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that DELRICE J. AUGUSTUS, age 34, of Baton Rouge, Louisiana, has been charged in a Bill of Information with federal program fraud, in violation of Title 18, United States Code, Section 666(a)(1)(A).
AUGUSTUS is the Director of the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS). He is currently on leave from his position. DCFS leadership has cooperated fully with the investigation.
If convicted, AUGUSTUS faces up to 10 years imprisonment, a $250,000 fine, forfeiture of the proceeds from the offense, restitution, and up to 3 years of supervised release following a term of imprisonment. His initial appearance will be held on a date to be determined.
The Bill of Information alleges that, during the period from 2010 through March 2014, while serving as Audit Director of a state agency receiving over a billion dollars annually in federal funds, AUGUSTUS fraudulently misused government purchasing cards to obtain items for personal use for himself and others, including an installed dishwasher, televisions, movies, cameras, wireless audio systems, such as Sonos and Jawbone, gaming devices, such as Xboxes, Wii and Leapsters, mobile devices, such as I-Pads, Kindle Fires, and an I-Phone 5, Dyson vacuums, rental vehicles, hotel rooms, and fuel.
The matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation.
NOTE: A Bill of Information is an accusation by the U.S. Attorney’s Office. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Sisters Arrested on Federal Tax Fraud ChargesRead the Press Release
BIRMINGHAM -- Federal authorities today arrested two sisters on charges that they worked together in their Taxes N More business in Tarrant to prepare fraudulent tax returns for themselves and others, often falsely claiming a credit for first-time homebuyers, announced U.S. Attorney Joyce White Vance and IRS, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
A federal grand jury indicted LUGENIA L. "Gigi" CONNER, 31, of Trussville, and KANESHIA L. "Kiki" CONNER-GOODGAME, 34, of Birmingham, in late March on charges of conspiracy to defraud the United States by obstructing and defeating collection of income taxes by the Internal Revenue Service. The indictment also charges both sisters, individually, with assisting in the preparation and presentation of false and fraudulent returns for the 2008 tax year, and with making and filing false returns for themselves for 2008. The indictment was sealed until both women were arrested.
"Tax return preparers who concoct schemes to collect inflated refunds are stealing from the U.S. Treasury and cheating the millions of hard-working Americans who pay their due share of taxes each year," Vance said. "The U.S. Attorney's Office will continue to work with the IRS to prosecute tax fraud and protect the sanctity and integrity of the tax system."
"As filing season comes to an end, the arrests today should send a message that IRS Criminal Investigation will continue to enforce laws that protect the integrity of our tax system,” Hyman-Pillot said. “Refund fraud is not a victimless crime and it affects everyone who pays taxes. Honest taxpayers who file accurate returns can be assured that the government will pursue the individuals who attempt to defraud the United States tax system."According to the March indictment, Conner and Conner-Goodgame conducted their scheme as follows:
The sisters jointly owned and operated Taxes N More, where they worked together to obtain inflated refunds for their clients in 2009 by falsifying information submitted on clients' 2008 returns. The sisters claimed the First Time Home Buyer's Credit of up to $7,900 on returns they prepared for other taxpayers, knowing those taxpayers were not entitled to the credit. The women also prepared third-party tax returns claiming itemized deductions or business expenses that clients neither had provided information for, nor were entitled to receive.
Conner faces five counts of assisting in the preparation of fraudulent returns for falsely claiming a total of $93,683 in deductions and credits on returns she prepared for five different taxpayers. Conner-Goodgame faces two counts of the same charge for falsely claiming a total of $15,400 with the First Time Home Buyer's Credit for two tax clients.
Conner and Conner-Goodgame also each are charged with creating and submitting 2008 personal tax returns on which they claimed the homebuyers' credit, knowing they were not entitled to that deduction.
The Taxes N More business had a dramatic increase in both the number of returns prepared and the amount of refunds claimed from the 2007 to the 2008 tax year, according to the indictment. For the 2007 tax year, it says the sisters' business prepared 337 third-party tax returns, claiming $1.3 million in refunds. For the 2008 tax year, Taxes N More prepared 670 third-party returns, claiming $3.5 million in refunds.
IRS Criminal Investigation investigated the case, which Assistant U.S. Attorney Amanda Wick is prosecuting.
The public is reminded that an indictment is only a charge and defendants are presumed innocent. It is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Sentence of 70 Months in Prison for Marijuana ConspiracyRead the Press Release
PLATTSBURGH, NEW YORK – ALAIN FORGET, 43, was sentenced on April 4, 2014 by United States District Court Judge Glenn T. Suddaby to 70 months imprisonment and four years supervised release for conspiracy to possess with intent to distribute and to distribute more than one hundred (100) kilograms of marijuana announced United States Attorney Richard S. Hartunian.
On February 28, 2012, FORGET pled guilty to an information, charging conspiracy to possess with intent to distribute and to distribute a controlled substance, in violation of 21 U.S.C. §§846 and 841(b)(1)(B). FORGET participated in a large scale drug trafficking organization designed to import thousands of pounds of marijuana into the United States and he help generate millions of dollars in drug proceeds. In addition to personally smuggling loads of marijuana into the United States, FORGET assumed a leadership role within the organization, recruiting others into the smuggling scheme and directing their activities.
The investigation and prosecution of FORGET was the result of a joint investigation between the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the New York State Police (NYSP), the United States Border Patrol (USBP), the Plattsburgh Police Department, and Clinton County Sheriff’s Office.
Any questions may be directed to Assistant U.S. Attorney John Duncan in Syracuse, New York at 315-448-0672.
Sentence of 120 Months in Prison for Marijuana ConspiracyRead the Press Release
PLATTSBURGH, NEW YORK – NICHOLAS VARACALLI, 66, was sentenced on April 3, 2014 by United States District Court Judge Glenn T. Suddaby to 120 months imprisonment and five years supervised release for conspiracy to possess with intent to distribute and to distribute more than one thousand (1,000) kilograms of marijuana announced United States Attorney Richard S. Hartunian.
On December 19, 2013, VARACALLI pled guilty to Count 1 of superseding indictment 10-CR- 534 (GTS), charging conspiracy to possess with intent to distribute and to distribute a controlled substance, in violation of 21 U.S.C. §§846 and 841(b)(1)(A). VARACALLI played a key role in an international drug smuggling organization designed to import thousands of pounds of marijuana into the United States and helped generate millions of dollars in drug proceeds. The defendant, along with co-defendant’s Denis Vachon and Jacques Perrault, was responsible for coordinating the acquisition and delivery of large quantities of marijuana, communicating with marijuana dealers in the United States to arrange marijuana shipments and receiving the proceeds of the transactions to pay the suppliers and other members of the organization.
On March 4, 2014, co-defendant Jacques Perrault pled guilty to Count 1 of superseding indictment 10-CR-534. Perrault is scheduled to be sentenced on July 10, 2014.
The investigation and prosecution of VARACALLI was the result of a joint investigation between the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the New York State Police (NYSP), the United States Border Patrol (USBP), the Plattsburgh Police Department, and Clinton County Sheriff’s Office.
Any questions may be directed to Assistant U.S. Attorney John Duncan in Syracuse, New York at 315-448-0672
Ronald House Sentenced on Obstruction of Justice ChargesRead the Press Release
ALBANY, NEW YORK – Richard S. Hartunian, United States Attorney for the Northern District of New York, announced that RONALD L. HOUSE, 58, of Rochester, New York was sentenced today in Buffalo, New York on his November, 2013 conviction for three counts of obstruction of justice and one count of making materially false statements.
Hon. William M. Skretny, Chief United States District Judge for the Western District of New York sentenced House to 48 months imprisonment, 2 years supervised release and a money judgment of $32,000.
House’s conviction came after a jury trial in Buffalo, New York charging that he endeavored to obstruct justice on behalf of criminal defendants with cases pending in the United States District Court in Rochester. He was convicted of obstructing two cases by endeavoring to fraudulently attribute information to criminal defendants that they could use in exchange for sentencing leniency, and in one case, for pre-trial release. As to a third case he was also convicted of obstructing justice by making false representations to a United States Probation Officer in an effort to persuade the officer from filing a supervised release violation against the offender.
House was also convicted of making materially false statements to the then-director of a Rochester halfway house in order to obtain extra liberty for an inmate by falsely representing that the inmate was going to be with House at a church men’s group, while knowing that the inmate instead was going to use the time to spend time with a girlfriend.
HOUSE’s arrest and conviction are the result of an investigation by the Federal Bureau of Investigation - Buffalo Division, the Internal Revenue Service – Criminal Investigation, New York Field Office, the City of Rochester Office of Public Integrity, and the Rochester Police Department. The prosecution was handled by Northern District of New York Assistant U.S. Attorney Lisa Fletcher, who can be reached at 315-448-0672.
Robber Receives 20-Year Federal SentenceRead the Press Release
Four Banks and Two Motels Robbed During Crime Spree Last FallPORTLAND, Ore.- Andrew Frank Laviguer, 57, was sentenced today by Senior U.S. District Judge Robert E. Jones to 240 months in federal prison for the robbery of four banks and two motels in Oregon and Washington during August and September of last year. Laviguer pled guilty to the charges in November of 2013 and has been in custody since the time of his arrest on September 9, 2013.
Laviguer was sentenced for the following robberies: (1) August 14, 2013, armed robbery (replica firearm) of the Columbia Bank on NE Halsey Street in Portland, Oregon; (2) August 30, 2013, robbery of the Key Bank on 17th Avenue SW in Seattle, Washington; (3) September 4, 2013, robbery of the Sterling Savings Bank on Tacoma Mall Blvd. in Tacoma, Washington; (4) September 7, 2013, robbery of the Super 8 Motel on SW Parkway Avenue in Wilsonville, Oregon; (5) September 8, 2013, attempted robbery of the Roadway Inn on Astoria Way NE in Salem, Oregon; and (6) September 9, 2013, armed robbery (replica firearm) of the Wells Fargo Bank on NW 11th Avenue in Portland, Oregon.
Laviguer was arrested by Portland Police Bureau officers after he robbed the Wells Fargo Bank in September of 2013. Laviguer received a sentence of 180 months, following a 1992 Salem bank robbery. After serving that sentence and being released, he was convicted of robbing a bank in Gresham in 2007 and was sentenced to 77 months in prison. Following his release from the Federal Correctional Institution in Williamsburg, South Carolina, on July 9, 2013, he was ordered to report to the Lane County Work Release Center to begin his supervised release for the 2007 bank robbery. He failed to report and the robbery spree began less than one month later.
In order to achieve the 20-year sentence, Jones found that Laviguer was a “career offender” under federal sentencing law and departed upward from that sentencing range because of Laviguer’s aggravated criminal history and the number of robberies he committed.
This case was investigated by the FBI, the Portland Police Bureau, the King County Sheriff’s Office, the Tacoma Police Department, the Clackamas County Sheriff’s Office and the Salem Police Department. It was prosecuted by Assistant U.S. Attorney Fred Weinhouse.
Rapid City Man Indicted for Concealing Person from Arrest and False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Concealing Person from Arrest and False Statement.
Yellow Elk was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Justin Robert Yellow Elk, age 28, was indicted on March 18, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 7, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 5 years’ imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment charges that Yellow Elk aided in concealing a man from arrest on a federal charge, and gave false statements to a federal agent during the investigation.
The charges are merely accusations and Yellow Elk is presumed innocent until and unless proven guilty.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Prison Time and Stiff Penalties Await Tax Fraudsters, Prosecutors WarnRead the Press Release
Tax Preparer Fraud, Identity Theft Among The 12 Most Common Tax Scams
CHARLOTTE, NC - With the deadline for filing income tax returns less than a week away, Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina and Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI), jointly announce recent tax fraud prosecutions and caution potential tax fraudsters to think twice before they commit tax crimes.
“Prosecuting those who cheat the tax system remains a priority for my Office,” said U.S. Attorney Tompkins in making today’s announcement. “Taxes help pay for important services our communities rely on and tax cheats increase the burden on honest taxpayers who each year file accurate and timely tax returns and pay their tax obligations.” Ms. Tompkins urged tax payers to be vigilant in safeguarding their personal identities and to avoid being victims of tax scams by selecting reliable tax preparers and reporting suspected tax fraud. U.S. Attorney Tompkins also said, “Our experienced tax prosecutors and IRS criminal investigators work hand-in-hand to uncover tax fraud and hold tax cheats accountable for their actions.”
“During tax filing season, return preparers and taxpayers should be aware of the serious consequences facing those who aid or assist in the filing of fraudulent tax returns,” said IRS-CI Special Agent in Charge Hammett. “Those who fly in the face of the tax laws face investigation, prosecution, and if convicted, significant prison sentences and substantial fines.”
Tax Preparer Pleads Guilty to Tax FraudReginald B. Landrum, a Charlotte-area tax return preparer, pleaded guilty today to one count of aiding in the preparation of false tax returns. Court records show that between 2006 and 2010 Landrum prepared and submitted to IRS 58 false tax returns using false information, resulting in larger tax refunds for his clients. Court records show that Landrum used false Schedule C income and expenses, false Schedule A deductions, false wages, false dependents and other false items to prepare the fraudulent tax returns. The total tax loss associated with the 58 fraudulent tax returns Landrum prepared and filed is $229,691. At sentencing, Landrum faces up to three years in prison and a $250,000 fine. A sentencing date has not been set yet. (3:14-cr-46).
Other 2013 Tax ProsecutionsIn the last year, the U.S. Attorney’s Office, with the assistance of IRS-CI, has prosecuted numerous individuals for criminal tax violations. Tax enforcement prosecutions include:
Isaac H. Birch - On August 15, 2013, Isaac Birch, of Franklin, N.C., pleaded guilty to filing false and fraudulent statements with the U.S. Treasury. According to court documents, Birch filed false tax returns in 2007, 2008 and 2009 using fictitious IRS 199OID forms, through which he fraudulently obtained a refund in excess of $480,000. Birch is awaiting sentencing and faces a maximum prison term of three years and a $100,000 fine. (2:13-cr-00020).
Tega Burns - On January 14, 2014, Tega Burns, a/k/a Tega Foy, of Charlotte, was sentenced to 24 months in prison and two years of supervised release and was ordered to pay $306,972.43 as restitution, for committing tax fraud and mortgage fraud. Court records show that from 2007 to 2011, Burns was the owner of Family Homecare Services, which provided in-home care services in the Charlotte area. Court documents show that Burns did not pay a large part of the employment taxes owed for the relevant tax years and used nominees, including her son and her step-father, to hide funds from the IRS. Burns pleaded guilty to failure to account for and pay over employment tax and to making a false statement on a loan application. (3:12-cr-00198).
Candida Figueroa and Cathy Cisneros – On November 7, 2013, Candida Figueroa and Cathy Cisneros, both of Charlotte, were sentenced to prison time for obtaining false and fraudulent income tax refunds. Figueroa was sentenced to 30 months in prison and two years of supervised release, and Cisneros was sentenced to 37 months in prison and three years of supervised release. Figueroa and Cisneros pleaded guilty false claims conspiracy and were ordered to pay $1,658,477.67 as restitution. Court documents indicate that from January to July 2012, the defendants used fraudulent Individual Taxpayer Identification Numbers (ITINs), Mexican birth certificates and other false documents to file at least 1,104 fraudulent tax returns seeking refunds. IRS issued refunds totaling approximately $1.6 million, of which $136,334 has been recovered. (3:12-cr-00260). A third co-conspirator, Ana Portillo, of Charlotte, pleaded guilty to false claims conspiracy in May 2013 for participating in the same tax fraud scheme and is awaiting sentencing. Portillo faces a maximum prison term of 10 years, a $250,000 fine, or both. (3:12-cr-00389).
Teodoro Felix Hernandez – On November 10, 2013, Teodoro Felix Hernandez pleaded to false claims conspiracy. According to filed court documents, from February 2012 to May 2013, Hernandez conspired with others and defrauded the U.S. Treasury by obtaining false tax refunds using fraudulently obtained ITINs. The conspirators prepared and filed false returns using the ITINs and false wage, income, and withholding tax information and claiming multiple dependents, causing the U.S. Treasury to issue tax return checks. The checks were mailed to rural addresses in North Carolina, South Carolina and Georgia, at which the purported taxpayer did not live. According to the documents, Hernandez cashed approx. 109 fraudulent tax return checks with various money service businesses, the value of which totaled $428,065 in false refunds. Hernandez is currently released on bond and awaiting sentencing. He faces a maximum of 10 years in prison and a $250,000 fine. (3:12-cr-158).
James Wesley Hills, II – On March 3, 2014, James Wesley Hills, II, of Asheville, pleaded guilty to making false claims against the United States and aggravated identity theft. According to court documents, Hills gained access to personal identifying information of customers of Primerica, a financial products company, and between 2010 and 2011, he used the stolen information to file fraudulent tax returns. Hills filed at least 38 false tax returns in this manner and collected over $50,000 of stolen U.S. Treasury funds. Hills is awaiting sentencing. He faces a maximum prison term of five years for making false claims and a mandatory term of two years in prison for the aggravated ID theft charge, and a $250,000 fine. (1:14-cr-05).
Jacqueline Pucheta Juarez – On January 7, 2014, Jacqueline Pucheta Juarez pleaded to false claims conspiracy. According to filed court documents, from January 2012 to May 2013, Juarez and others conspired to defraud the U.S. Treasury by participating in a scheme to obtain false tax refunds, using fraudulently obtained ITINs. Juarez and others used these ITINs to prepare fraudulent federal tax returns seeking refunds based on false wage, income, and withholding tax information and by claiming multiple dependents. Based on the fraudulent tax returns, the U.S. Treasury issued tax return checks and mailed them to addresses in rural addresses in North Carolina, South Carolina and Georgia, at which the purported taxpayer did not live. Juarez cashed approx. 350 fraudulent tax refund checks at various money service businesses, the value of which totaled $1,271,377 in false refunds. Juarez is currently in federal custody and awaiting sentencing. She faces a maximum prison term of 10 years, a $250,000 fine, or both. (United 3:12-cr-157).
Yolanda Tiess Kitson - On October 28, 2013, Yolanda Tiess Kitson, of Augusta, Ga., pleaded guilty to false claims conspiracy. Court records show that Kitson conspired with Senita Dill and Ronald Jeremy Knowles to file fraudulent tax returns using stolen personal identifying information. Through her job as a contractor at the Eisenhower Army Medical Center at Fort Gordon in Augusta, Ga., Kitson stole personal information from patient records and passed it her sister, Dill, who used it to file false tax returns. The conspirators filed more than 1,000 false tax returns and received over $3.5 million of stolen U.S. Treasury funds. Dill and Knowles also pleaded guilty to similar charges. All three defendants are awaiting sentencing and face up to 10 years in prison and $250,000 in fines. (1:13-cr-31).
Nghia Ly – On October 2, 2013, Nghia Ly, of Waxhaw, N.C., pleaded guilty to tax evasion for the 2011 calendar year. According to court records, Ly owned half of Kim Sen Jewelry, Inc., d.b.a. KS Nail Supply (KSJ) in Charlotte. From 2007 through 2011, Ly concealed from the IRS some of his personal earnings from KSJ. Court records show that Ly failed to provide bank records and hid a large part of the gross receipts of KSJ from his tax return preparer. For years 2007 through 2011, KSJ earned additional gross receipts totaling more than $4.8 million which Ly failed to report on KSJ corporate tax returns. As a result of the unreported gross receipts, Ly had additional taxable income of $820,396. A sentencing has not been set. Ly faces a maximum sentence of five years in prison and a maximum fine of $250,000. (3:13-cr-00235).
Jessica Ordonez – On March 31, 2014, Jessica Ordonez, of Morganton, N.C., was charged with tax evasion and aiding and abetting the preparation and presentation of a false tax return. Beginning in 2002, Ordonez was the owner of Tax Pros (a/k/a “Ordonez Tax Services”), which offered tax preparation services, among other things. Court documents show that between 2004 and 2012 Ordonez prepared at least 100 false tax returns for 23 taxpayers, using fraudulent ITINs which entitled her clients to large fraudulent tax refunds, with an associated tax loss of at least $202,217. Ordonez also failed to report her own income on her individual tax returns for tax years 2009 to 2011, with a corresponding tax loss between $81,000 and $122,000. Ordonez’s formal plea hearing is scheduled for April 11, 2014. At sentencing, she faces five years in prison and a $250,000 fine for the tax evasion charge and three years in prison and a $250,000 fine for aiding and abetting the preparation and presentation of a false tax return. (3:14-cr-00071).
Edward Rosner – On September 12, 2013, Edward Rosner, of Charlotte pleaded guilty to tax evasion. According to the court records, from 2005 through 2009, Rosner concealed his personal earnings from the IRS by directing funds obtained from his employer to himself through bank accounts in the name a nominee company, New Start LLC, and by directing the transfer of funds to accounts in the name of another individual. During this same time period, Rosner failed to file tax returns, despite obtaining income totaling approximately $2.9 million. Rosner awaits sentencing and faces a maximum prison sentence of five years and a $250,000 fine. (3:13-cr-00172).
Nkhenge Shropshire – On October 15, 2013, Nkhenge Shropshire, a/k/a Konjay Shropshire, of Charlotte, pleaded guilty to conspiracy to defraud the IRS and to making false statements on a loan application. Court records show that from 2009 through 2012, Shropshire owned Tax Connections, a Charlotte tax return preparation business. From 2009 to 2011, Shrophsire aided and assisted in the preparation of more than 600 tax returns for clients which were e-filed with the IRS. Many of the tax returns prepared by Shropshire falsely included Schedule C losses and refundable education credits, which decreased the clients’ tax liabilities, therefore resulting in larger tax refunds and false Earned Income Tax Credits. The tax loss associated with the false education credits is more than $580,000. Shropshire directed that many of the fraudulent tax refunds be deposited into a business bank account she controlled, and kept a portion of the refund as payment for her services. On some occasions, Shropshire did not provide her clients with copies of their completed tax returns or gave them incomplete copies, so clients could know their returns contained false information. The defendant is awaiting sentencing, and faces a maximum sentence of five years in prison and a maximum fine of $250,000 for the conspiracy count and a maximum sentence of 30 years in prison and a $1 million fine for the false statement on a loan application charge. (3:13-cr-00248).
Kenneth Sumner – On January 16, 2014, Kenneth Sumner, of Charlotte, pleaded guilty to filing a false tax return. Court documents indicate that Sumner was the owner of a Charlotte sales company, Ken B. Sumner and Associates. From 2006 through 2010, Sumner failed to file timely tax returns with the IRS despite having the requisite income to file tax returns. In June 2010, Sumner filed his 2006 federal income tax return which omitted gross receipts from Sumner’s business totaling approximately $106,808. For tax years 2007 and 2008, Sumner failed to file timely income tax returns even though he earned approximately $318,433 and $337,090, respectively. A sentencing date has not been set. Sumner faces a maximum sentence of three years in prison and a $250,000 fine. (3:13-cr-00257).
Denise Swanson – On August 22, 2013, Denise Swanson, of Lenoir, N.C., pleaded guilty to tax evasion for tax year 2010. Court documents show that Swanson was the owner and operator of Bottomline Accounting, a tax preparation and bookkeeping business. From 2006 to 2012, Swanson performed tax preparation services for J.W. and K.W., and their business, C.B. (“the Clients”), and was responsible for making tax payments on their behalf. Swanson received money from the Clients to pay various tax obligations to the IRS and other state agencies. But instead of making the payments, Swanson embezzled the money and used it to pay for personal expenses. In total, Swanson embezzled approximately $839,830. Also, Swanson failed to report the embezzled income on her own individual tax returns for tax years 2006 through 2011. Swanson awaits sentencing and faces a maximum sentence of five years in prison and a $250,000 fine. (5:13-cr-61).
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated ID theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against a wide range of tax schemes ranging from identity theft to return preparer fraud. The IRS has issued its annual “Dirty Dozen” which lists common tax scams that taxpayers may encounter, particularly during filing season. Taxpayers are urged look out for, and to avoid, the following common schemes:
• Identity theft • Pervasive Telephone Scams • Phishing • False Promises of “Free Money” from Inflated Refunds • Return Preparer Fraud • Hiding Income Offshore • Impersonation of Charitable Organizations • False Income, Expenses or Exemptions • Frivolous Arguments • Falsely Claiming Zero Wages or Using False Form 1099 • Abusive Tax Structures • Misuse of Trusts
Education is the best way to avoid these common schemes. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website.
Physical Therapy Clinics to Pay $2.78 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON - Two companies that operate physical therapy clinics in Washington, D.C., Virginia, and Maryland, along with three individuals associated with the businesses, have agreed to pay the United States $2.78 million to settle allegations that the firms’ billings to Medicare and the TRICARE health care program violated the False Claims Act.
The settlement was announced today by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C., and Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS).
The companies -- Alliance Rehabilitation, LLC and Active Physical Therapy Services, LLC -- submitted invoices to Medicare and TRICARE through a consolidated billing office in Fairfax, Va., that was managed and overseen by Geeta Trehan, of Virginia. The companies’ owners, Thomas Bray and Rajeev Gupta, both of Maryland, also managed the operations.
The settlement resolves allegations that, between January 2007 and August 2012, the companies submitted claims which falsely represented that the physical therapy services being billed were either rendered or directly supervised by the physical therapist identified on the claims by his or her National Provider Identifier (NPI) number. In fact, the physical therapist identified on the claim had no involvement in the services rendered. The settlement also resolves allegations that Alliance Rehabilitation, LLC, and Active Physical Therapy Services, LLC, sought payment from TRICARE for physical therapy services that were not provided by the physical therapist identified on the claim.
In addition to the False Claims Act settlement, the companies and Trehan, Bray, and Gupta have entered into a five-year Corporate Integrity Agreement with the U.S Department of Human Health and Services Office of Inspector General. That agreement imposes integrity obligations on each of the entities and individuals and requires them, among other things, to retain an independent review organization to review their coding, billing, and claims submissions to Federal health care programs.
“These physical therapy clinics overbilled the federal programs that provide health care to senior citizens and military families,” said U.S. Attorney Machen. “If health care providers want to be paid for their services with taxpayer dollars, they have to play by the rules. Americans deserve to know that they are getting their money’s worth. This nearly $2.8 million settlement is part of our continued fight to protect taxpayers and to ensure the integrity of federal health care programs.”
“When health care companies and the individuals who run them try to enrich themselves by misrepresenting the medical services they bill to taxpayer-funded health care programs, we will make sure they are held accountable for their deceptive schemes,” said Special Agent in Charge DiGiulio.
“The Defense Criminal Investigative Service seeks to hold those accountable who jeopardize the Department of Defense's objective to provide affordable and safe health care to the men and women serving in the armed forces,” said Special Agent in Charge Craig. “Current and former soldiers deserve adequate care. Health care providers who seek financial gain through inaccurate billing processes and irresponsible treatment of their patients will continue to be diligently investigated by DCIS agents in partnership with the DOJ and other law enforcement agencies. We are extremely pleased with the outcome of this investigation.”
The conduct at issue was brought to light through a lawsuit that was filed in the U.S. District Court for the District of Columbia by two former Alliance employees under the qui tam, or whistleblower provisions, of the False Claims Act. The False Claims Act is one of the government’s most powerful tools in the effort to combat fraud on federal programs. The Act allows private citizens to bring suit on behalf of the United States and share in any recovery obtained by the government. In this case, the two former Alliance employees will receive more than $400,000 as their share of the government’s recovery.
This settlement was the result of a coordinated investigative effort by the U.S. Attorney’s Office for the District of Columbia, the Department of Health and Human Services Office of Inspector General, and the Defense Criminal Investigative Service.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is United States ex rel. Angel and Natal v. Alliance Rehabilitation LLC et al., Civil Action No. 10-cv-02124 (D.D.C.).
14-083Physical Therapy Clinics to Pay $2.78 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON - Two companies that operate physical therapy clinics in Washington, D.C., Virginia, and Maryland, along with three individuals associated with the businesses, have agreed to pay the United States $2.78 million to settle allegations that the firms’ billings to Medicare and the TRICARE health care program violated the False Claims Act.
The settlement was announced today by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C., and Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS).
The companies -- Alliance Rehabilitation, LLC and Active Physical Therapy Services, LLC -- submitted invoices to Medicare and TRICARE through a consolidated billing office in Fairfax, Va., that was managed and overseen by Geeta Trehan, of Virginia. The companies’ owners, Thomas Bray and Rajeev Gupta, both of Maryland, also managed the operations.
The settlement resolves allegations that, between January 2007 and August 2012, the companies submitted claims which falsely represented that the physical therapy services being billed were either rendered or directly supervised by the physical therapist identified on the claims by his or her National Provider Identifier (NPI) number. In fact, the physical therapist identified on the claim had no involvement in the services rendered. The settlement also resolves allegations that Alliance Rehabilitation, LLC, and Active Physical Therapy Services, LLC, sought payment from TRICARE for physical therapy services that were not provided by the physical therapist identified on the claim.
In addition to the False Claims Act settlement, the companies and Trehan, Bray, and Gupta have entered into a five-year Corporate Integrity Agreement with the U.S Department of Human Health and Services Office of Inspector General. That agreement imposes integrity obligations on each of the entities and individuals and requires them, among other things, to retain an independent review organization to review their coding, billing, and claims submissions to Federal health care programs.
“These physical therapy clinics overbilled the federal programs that provide health care to senior citizens and military families,” said U.S. Attorney Machen. “If health care providers want to be paid for their services with taxpayer dollars, they have to play by the rules. Americans deserve to know that they are getting their money’s worth. This nearly $2.8 million settlement is part of our continued fight to protect taxpayers and to ensure the integrity of federal health care programs.”
“When health care companies and the individuals who run them try to enrich themselves by misrepresenting the medical services they bill to taxpayer-funded health care programs, we will make sure they are held accountable for their deceptive schemes,” said Special Agent in Charge DiGiulio.
“The Defense Criminal Investigative Service seeks to hold those accountable who jeopardize the Department of Defense's objective to provide affordable and safe health care to the men and women serving in the armed forces,” said Special Agent in Charge Craig. “Current and former soldiers deserve adequate care. Health care providers who seek financial gain through inaccurate billing processes and irresponsible treatment of their patients will continue to be diligently investigated by DCIS agents in partnership with the DOJ and other law enforcement agencies. We are extremely pleased with the outcome of this investigation.”
The conduct at issue was brought to light through a lawsuit that was filed in the U.S. District Court for the District of Columbia by two former Alliance employees under the qui tam, or whistleblower provisions, of the False Claims Act. The False Claims Act is one of the government’s most powerful tools in the effort to combat fraud on federal programs. The Act allows private citizens to bring suit on behalf of the United States and share in any recovery obtained by the government. In this case, the two former Alliance employees will receive more than $400,000 as their share of the government’s recovery.
This settlement was the result of a coordinated investigative effort by the U.S. Attorney’s Office for the District of Columbia, the Department of Health and Human Services Office of Inspector General, and the Defense Criminal Investigative Service.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is United States ex rel. Angel and Natal v. Alliance Rehabilitation LLC et al., Civil Action No. 10-cv-02124 (D.D.C.).
14-083Pennsylvania Woman Indicted on Drug and Gun ChargesRead the Press Release
Lynda Hang Vang, 46, of Akron, Pennsylvania was charged today by Indictment with attempted possession with intent to distribute Methylenedioxy-N-methylcathinone (“methylone”) and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 25 years in prison, a fine of up to $1 million, and three years of supervised release.
The case was investigated by Immigration and Customs Enforcement (ICE) Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New York Man Sentenced for Conspiring to Pass Counterfeit Currency in Western PennsylvaniaRead the Press Release
PITTSBURGH - A New York resident has been sentenced in federal court to five years probation, which includes 10 months of home detention with electronic monitoring, on his conviction of conspiracy and passing counterfeit currency, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Sean R. Marroquin, 26.
According to information presented to the court, Marroquin conspired to pass counterfeit currency in the Western District of Pennsylvania on or about March 9, 2013.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Marroquin.