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Friday 21 February 2014
Burlington, N.J., Real Estate Consultant Sentenced to 20 Months in PrisonRead the Press Release
Helped Clients Fraudulently Obtain Multiple Home Equity Loans.
CAMDEN, N.J. – A real estate consultant was sentenced today to 20 months in prison for helping five people defraud banks by obtaining multiple home equity loans on the same property, U.S. Attorney Paul J. Fishman announced.
William Barksdale, 47, of Burlington, N.J., previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to commit wire fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Barksdale was the owner of Barksdale Business Group, Barksdale Investment Properties, and Barksdale Loan Consultants. He devised a scheme to obtain multiple home equity lines of credit on a single home for more than the property was worth. A homeowner would submit loan applications to several lenders simultaneously without advising each lender about the other applications. Any bank conducting a title search would receive a clean title report because the other home equity lines of credit had not yet been recorded.
Barksdale advised five people to secure multiple home equity loans using his scheme, and each obtained at least three home equity loans on a single property. One individual obtained seven home equity loans on one home. Each person paid Barksdale a portion of the fraudulent proceeds. Many of the home equity loans later went into default. The scheme caused more than $1 million in losses.
In addition to the prison term, Judge Kugler sentenced Barksdale to five years of supervised release. A restitution hearing will be held at a later date.
U.S. Attorney Fishman credited agents of the FBI’s Trenton Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford, and agents of the N.J. Division of Criminal Justice, under the leadership of Director Elie Honig, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
14-058Defense counsel: Robert N. Agre Esq., Haddonfield, N.J.
Barksdale Information
Bossier City Man Pleads Guilty to Production and Sale of Counterfeit U.S. MoneyRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Corey Crosby, 23, of Bossier City, pleaded guilty before U.S. District Judge Donald E. Walter, to making and selling counterfeit Federal Reserve notes.
According to evidence presented at the guilty plea, authorities used a confidential informant to buy counterfeit money in the Shreveport/Bossier City area in June of 2013. Crosby was identified as the seller and manufacturer after the informant bought counterfeit money and uncut sheets of counterfeit money from him in denominations of $100, $20, and $10. Investigators also matched Crosby’s fingerprints to a printer used to manufacture the counterfeit notes.
Crosby faces up to 20 years in prison, three years of supervised release, restitution, and a fine of $250,000 for one count of counterfeiting obligations or securities. He will also face the same penalties for one count of dealing in counterfeit obligations or securities. Sentencing was set for May 22, 2014.
The U.S. Secret Service - Shreveport Office, Caddo Parish Sheriff’s Office, Shreveport Police Department, and Bossier Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B Brown is prosecuting the case.
Birmingham Man Gets 12 1/2 Years in Prison for Selling HeroinRead the Press Release
BIRMINGHAM -- A federal judge Thursday sentenced a Birmingham man to more than 12 years in prison for distributing heroin, announced U.S. Attorney Joyce White Vance and federal Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.JAMES DARNELL LEVERT, 31, pleaded guilty in October to two counts of selling heroin in Birmingham in December 2012 . One sale involved .35 grams of heroin; the second sale was .32 grams. U.S. District Judge Inge P. Johnson sentenced Levert to 12 years and seven months in prison, to be followed by four years of supervised release. The judge sentenced Levert as a "career offender" under the federal sentencing guidelines.
Levert's plea follows a plea earlier this month of HAROLD D. MIMS, 31, of Birmingham, to selling heroin that resulted in a death. That charge carries a mandatory minimum 20-year sentence. Mims was charged in connection to the death last year of William C. Wiggins in Tuscaloosa.
Both Levert and Mims were arrested during a roundup of heroin dealers in north Alabama in September. The roundup was part of an initiative launched in 2012 by the U.S. Attorney's Office, the DEA, district attorneys, and many federal, state and local agencies to attack the supply of heroin in the Northern District of Alabama.
"It is gratifying that so many law enforcement agencies in north Alabama recognize the dangerous scope of the heroin problem in our district and that they came together last year to take dealers off the streets," Vance said. "The roundup brought an immediate drop in the number of heroin overdose deaths in north Alabama, which have spiraled in the last few years, and helped to alert the community that the deadly problem exists here."
"As more of these defendants are sentenced, I hope more people realize that the heroin problem is real, and that selling heroin will lead to prison. If you sell heroin that causes a death, you will be prosecuted and you will get at least 20 years in prison," she said.
As a result of the September sweep, 49 people were indicted on drug distribution charges over the first several months of 2013. Of those 49 defendants, 39 have pleaded guilty, one was tried and convicted, four cases were dismissed, four are in pre-trial diversion programs, and one defendant remains a fugitive.
The DEA investigated the cases in conjunction with many state and local agencies. Assistant U.S. Attorney L. James Weil Jr. is prosecuting the cases.
Barre Man Indicted for Convenience Store RobberyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Lee Jay Manning, 28, of Barre, Vermont, was charged in a three-count indictment with robbing a Cumberland Farms convenience store in Barre on February 12, 2014, in violation of 18 U.S.C. § 1951, possessing a firearm in furtherance of that robbery, in violation of 18 U.S.C. § 924(c), and possessing that firearm as a convicted felon, in violation of 18 U.S.C. § 922(g).
According to court records, Manning robbed the Cumberland Farms convenience store in Barre on the evening of February 12, 2014 with a semi-automatic handgun. He was apprehended by law enforcement, in possession of the handgun, shortly after the robbery. In 2004, Manning was convicted in Vermont of burglary, which is a felony offense. Federal law prohibits convicted felons from possessing firearms.
Following his arrest on February 12, 2014, Manning appeared in federal court on February 13, 2014 to answer to a preliminary complaint. Magistrate Judge John M. Conroy ordered Manning detained at that time. The federal grand jury returned the three-count indictment on February 20, 2014. The court has yet to schedule Manning’s arraignment.
If convicted of the robbery charge, Manning faces a statutory maximum term of imprisonment of 20 years. A conviction for possession of a firearm as a convicted felon carries a statutory maximum of 10 years in prison. If convicted of carrying the firearm in furtherance of the robbery, Manning faces a maximum of life imprisonment and mandatory minimum term of five years in prison. Federal law requires that Manning serve such a sentence consecutively to any other sentence he receives.
The actual sentence in the event of conviction would be determined by the court with reference to the advisory federal sentencing guidelines. United States Attorney Tristram J. Coffin stated that the indictment is an accusation only and that Manning is presumed to be innocent unless and until proven guilty.
United States Attorney Coffin commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Barre City Police Department, the Barre Town Police Department, the Berlin Police Department, and the Vermont State Police for their investigation into this matter.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Manning is represented by the Federal Public Defender’s Office.
Ardmore Woman Pleads Guilty to Theft of Government FundsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ALLISON FAITH BATTLES, age 29, of Ardmore, Oklahoma, pled guilty to Making A False Statement, in violation of Title 18, United States Code, Section 1001(a)(2) and Theft Of Government Funds, in violation of Title 18, United States Code, Section 641.
The charge arose from an investigation by the Social Security Administration, Office of Inspector General. The defendant was indicted in January, 2014.
The Indictment alleged that on or about February 16, 2012, in the Eastern District of Oklahoma, the Defendant did knowingly make and cause to be made a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the Social Security Administration, an agency of the United States.
It further alleged that from in or about July 2009 to in or about April 2012, in the Eastern District of Oklahoma, the Defendant did willfully and knowingly embezzle, steal and convert to her own use, money and things of value from the Oklahoma Department of Human Services, an agency receiving and administering funds on behalf of the United States, which had been paid to the defendant as food stamps and medical benefits to which the defendant knew she was not entitled and having a value in excess of $1,000.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Chris Wilson represented the United States.
Another Drug Conspiracy and Money Laundering Ring Leader Heads to Prison for 30 YearsRead the Press Release
CORPUS CHRISTI, Texas – Jose Fidel Guajardo aka “Garfield,” 42, a leader of a drug trafficking and money laundering conspiracy, has been handed a significant federal sentence, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Janis Graham Jack determined Guajardo to be a leader in the conspiracy and sentenced him to a total of 360 months in federal prison. In handing down the sentence, Judge Jack considered his extensive criminal history and the need to protect the public from future criminal conduct. She further ordered he serve a five-year-term of supervised release following completion of his prison term and also ordered forfeiture of his interest in a property on Aaron Street in Corpus Christi.
Another leader in the conspiracy, Manuel Pena aka “Super,” also received a 30-year sentence earlier this year. Several others – Ignacio Pena aka “Nacho,” Raul Leal Martinez aka “Indio” or “Wahoo,” and David Pete Dominguez aka “Buda,” all also of Corpus Christi, previously pleaded guilty in relation to the case as well and were sentenced to 168, 85 and 120 months, respectively. Julieann Gutierrez was sentenced yesterday to 220 months, while the last defendant, Rocky Bazaldua aka “Rock,” will be sentenced March 20, 2014.
The indictment charged all of the defendants with conspiring from June 1, 2008, to Jan. 8, 2013, to possess with intent to distribute more than 50 grams of methamphetamine. The investigation revealed Guajardo, a member of the Texas Syndicate prison gang, orchestrated various drug deals in the Corpus Christi area. Evidence proved that in March 2011 Guajardo made deals to provide 20 kilograms of cocaine to a drug distributor located in San Antonio. Guajardo also made deals with Manuel Pena to purchase methamphetamine for distribution in the Corpus Christi area.
Guajardo and Martinez also pleaded guilty to conspiring to launder the proceeds of their drug sales through various financial transactions. Evidence showed that Guajardo invested significant amounts of cash into the material, labor and services supplied in the building of homes in the Corpus Christi area. Agents determined this cash was the proceeds of illegal drug sales. As part of his plea agreement, Guajardo also agreed to forfeit his interests in various properties around Corpus Christi.
Guajardo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, Texas Department of Public Safety, the Nueces and Kleberg County Sheriff’s Offices, and the Corpus Christi, Aransas Pass and Portland Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Hess.
Alvarado Pharmacy and Its Owner Ordered to Repay Medicare over $1 MillionRead the Press Release
United States Attorney Laura E. Duffy announced today that Alvarado Medical Plaza Pharmacy, Inc. was sentenced by United States District Court Judge Janis L. Sammartino to repay Medicare over $1 million, and to pay a $10,000 fine, following its conviction of federal Health Care Fraud for billing Medicare for unapproved oncology drugs.
The pharmacy had admitted that between May 2010 and June 2011, it ordered $752,688.00 of prescription oncology drugs from Quality Specialty Products (QSP) in Canada. The drugs ordered from QSP were unapproved versions of drugs sold in the United States as Avastin, Eloxatin, Gemzar, Neupogen, Rituxin, Taxotere, and Zometa, which were shipped from Canada to defendant in San Diego. The pharmacy further admitted that it was aware that the drugs were not intended for sale in the United States because (a) the packaging and shipping documents indicated that the drugs were shipped to the office from outside the United States; (b) many of the invoices identified the origin of the drugs and intended markets as countries other than the United States; (c) the labels did not bear the “RX Only” language required by the Food and Drug Administration (FDA); (d) the labels did not bear the National Drug Code (NDC) numbers found on the labels of the drugs intended for the U.S. market; (e) many of the labels had information in foreign languages; (f) the drugs were purchased at a substantial discount; and (g) the packing slips indicated that the drugs came from Canada.
The pharmacy further admitted that it supplied the prescription oncology drugs purchased from QSP to doctors, pre-mixed in infusion bags, without advising the doctors that the drugs came from abroad and were not approved for use in the United States. As known to the pharmacy, Medicare provides reimbursement only for drugs approved for use in the United States. Each drug approved by the FDA for use in the United States is assigned a specific code by Medicare for reimbursement claim purposes. The pharmacy admitted that it was aware that some of the drugs purchased from QSP would be administered to Medicare patients, and that doctors would bill Medicare for those drugs using the reimbursement code for U.S. approved drugs. The pharmacy admitted that by causing doctors to falsely claim that the drugs were approved by the FDA for use on patients in the United States, Medicare was fraudulently overbilled at least $1,004,284.04 between May 2010 and June 2011.
Also today Judge Sammartino sentenced William Burdine, a pharmacist licensed in the State of California and the owner of Alvarado Medical Plaza Pharmacy. Burdine was sentenced to 8 months’ home confinement, and ordered to complete 240 hours of community service over his five year period of probation. Burdine admitted that he ordered the prescription oncology drugs from QSP in Canada, knowing that it was unlawful for him to import those drugs into the United States under the Food, Drug and Cosmetic Act, and was convicted of Importation of Goods Contrary to Law. Burdine was also ordered to repay Medicare in the same amount as Alvarado Medical Plaza Pharmacy.
Criminal Case No. 13cr4295-JLS
DEFENDANTSAlvarado Medical Plaza Pharmacy, Inc.
Incorporated:1992
William Burdine
Age: 65 San Diego, California SUMMARY OF CHARGESAlvarado Medical Plaza Pharmacy Inc.
Health Care Fraud, in Violation of Title 18, United States Code, Section 1347.
Maximum Penalty for a corporation: 5 years probation, a $500,000 fine and $400 special assessment.William Burdine
AGENCY
Importation Contrary to Law, in Violation of Title 18, United States Code, Section 545.
Maximum Penalty: 10 years in custody and/or $250,000 fine and a $100 special assessmentU.S. Food and Drug Administration, Office of Criminal Investigations
Accountant Sentenced to 2 Years in Prison for Conspiracy, Violating Tax LawsRead the Press Release
PITTSBURGH - A Hampton Township resident was sentenced yesterday in federal court to 24 months imprisonment and a fine of $30,000 on his conviction of conspiracy to harbor illegal aliens and violating federal tax laws, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Martin R. Bujaky, 65, of Gibsonia, Pa.
According to information presented to the court, between approximately 2000 and 2007, Bujaky, an accountant, conspired with others to harbor out-of-status aliens employed in the hotel housekeeping industry in the Pittsburgh area, as well as Cleveland, Columbus, and Cincinnati, Ohio, by knowingly preparing false tax returns on behalf of their employers, which failed to report their wages as income. Bujaky assisted in the preparation and presentation of false quarterly tax returns for portions of 2005 and 2006 for B&M Best Consulting Co. by understating the size of the payroll and the employment taxes due to the Internal Revenue Service. These false returns accounted for approximately $9 million in unreported wages. United States Attorney Hickton stated that the entire scheme, over the course of seven years, resulted in a tax loss of approximately $3.7 million.
Prior to imposing sentence, Judge McVerry stated that Bujaky’s role in the conspiracy enabled his co-conspirators to conceal their true earnings and continue to victimize the workers.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation, Department of Homeland Security-Homeland Security Investigations (HSI), and U.S. Department of Labor for the investigation leading to the successful prosecution of Bujaky.
Thursday 20 February 2014
Worldwide Drug Trafficker SentencedRead the Press Release
SACRAMENTO, Calif. —Shiraz Malik, 36, a Pakistani national residing in Warsaw, Poland, was sentenced today by United States District Judge Lawrence K. Karlton to 15 years in prison for conspiring to distribute controlled substances and listed chemicals, conspiring to import controlled substances and ephedrine into the United States, and conspiring to launder money, United States Attorney Benjamin B. Wagner announced today.
According to court documents, from June 1, 2008, through September 8, 2011, Malik sold pharmaceuticals and highly regulated chemicals to customers in the United States, Europe, Mexico, and other countries and conspired to launder the profits of that activity. Malik took orders from customers via the Internet and coordinated with people in Pakistan to fill the orders. The drugs were sent from Pakistan to the customers, and Malik emailed the tracking numbers that his co-conspirators in Pakistan gave him to the customers. Malik sold large quantities of ephedrine to customers in Mexico, the country of origin for most of the methamphetamine sold in the United States.
In May 2008, DEA agents learned of two business-to-business Internet websites where businesses were offering to sell and illegally import into the United States pharmaceutical drugs, such as oxycontin, that are controlled substances under U.S. law, and regulated chemicals, such as ephedrine HCL, which is a precursor chemical used to manufacture methamphetamine. Two businesses that were offering controlled substances through the websites were Shama Medical Store in Karachi, Pakistan and Good Luck Trading Company in the United Kingdom. Both businesses referred customers to email addresses associated with Malik.
According to court documents, in the course of the three-year investigation, agents made eight undercover purchases of various drugs from Malik that were shipped from a post office in Lahore, Pakistan to addresses in the Sacramento area. In each instance, the purchase request was sent to Malik via email and payment instructions were sent by Malik to the undercover agent. Malik maintained at least two bank accounts in Poland that he used to receive payments for Internet drug purchases from undercover agents.
According to documents filed in the case, undercover agents met with Malik on three separate occasions in Milan, Italy (June 2009), Vienna, Austria (November 2009), and in Budapest, Hungary (August 2010). During those meetings, with the cooperation of law enforcement officials in the host countries, the agents posed as U.S.-based illegal drug dealers and had discussions with Malik about future purchases and possible collaborative efforts. In the meetings, Malik explained that his operation sold a variety of pharmaceutical and controlled substances including: steroids, OxyContin, ketamine, diazepam, lidocaine, illegal drugs including heroin from Pakistan, Ecstasy from Holland, methamphetamine (believed to be made in the Czech Republic), and ephedrine from India or China.
“Mr. Malik operated an international supermarket for illegal drugs,” said U.S. Attorney Benjamin Wagner. “As the Internet allows everyone access to international markets, federal law enforcement officials will be vigilant in protecting this country from overseas predators who profit off the addiction of others. Here, the defendant supplied addictive drugs, including oxycontin and heroin, to other drug traffickers in the U.S. and around the world, and supplied materials needed to make methamphetamine to clandestine producers in Mexico and Africa. Malik had never set foot in this country before he was arrested and extradited here on these charges. This should serve as a lesson to those drug traffickers who ship illegal drugs into the United States and who think they are untouchable.”Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick stated, “Shiraz Malik led an elaborate international drug trafficking network using the anonymity of the Internet to distribute dangerous controlled substances, pharmaceutical narcotics, and substances for illicit drug manufacture to customers around the world. The outstanding assistance and support DEA received from our foreign and domestic counterparts led to the successful prosecution of Malik. This sentencing sends a clear message that law enforcement will work across international borders to seek justice against criminal organizations.”
“Today’s sentence reflects the seriousness of this crime,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “The defendant used sophisticated methods to move large quantities of drug money around the world. CI is committed to following the money to financially disrupt and dismantle narcotics trafficking organizations.”
“This sentence is entirely fitting given the serious health risks associated with this defendant’s criminal activities,” said Dan Lane, assistant special agent in charge for Homeland Security Investigations (HSI) Sacramento. “The illegal sale of controlled substances and prescription drugs over the Internet represents a major safety threat for consumers who buy medications online. HSI will continue to work closely with its law enforcement partners here and overseas to identify and dismantle highly dangerous schemes such as this one.”
Malik was arrested at the Prague International Airport on September 8, 2011, and was extradited on June 22, 2012, from the Czech Republic to the United States. He pleaded guilty to the conspiracy counts on October 7, 2013.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the El Dorado County Sheriff’s Office. Assistant U.S. Attorney Richard J. Bender and former Assistant U.S. Attorney Daniel S. McConkie prosecuted the case with the assistance of attorneys from the U.S. Department of Justice’s: Office of International Affairs, the Narcotics and Dangerous Drugs Section, and the Organized Crime and Drug Enforcement Task Force Section.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of OCDETF is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Woman Serving Drug Sentence Charged with Contempt for Refusing to Testify at Co-Defendant's TrialRead the Press Release
PITTSBURGH - A Pittsburgh woman has been indicted by a federal grand jury in Pittsburgh on a charge of criminal contempt of court, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 18, named Marquetta Lavelle Mitchell, 41, as the sole defendant.
According to the indictment, Mitchell disobeyed and resisted the lawful process, order and command of a Court of the United States, that is, she refused to testify at the Oct. 16-22, 2012, trial of Andre Williams, for charges that included conspiracy to possess with intent to distribute five kilograms or more of cocaine, at Case Number 11-116, despite: the subpoena that required her to do so; an instruction from Senior United States District Court Judge Alan N. Bloch that her Fifth Amendment rights had been extinguished; and a written order compelling her to testify pursuant to a grant of immunity from Senior United States District Court Judge Alan N. Bloch.
The law provides for an unlimited period of incarceration and/or a fine, at the discretion of the Court. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant. Court records reveal that before Mitchell refused to testify at the trial of her co-defendant Andre Williams, Mitchell herself was prosecuted for federal drug charges and is serving a 10-year sentence.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Homeland Security Investigations and the 21st Judicial District Drug Task Force in Tennessee conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Winchester Man Sentenced on Child Porn ChargesRead the Press Release
HARRISONBURG, VIRGINIA – A Winchester man who previously admitted to enticing 19 minors into engaging in sexually explicit conduct via web cams, was sentenced yesterday in the United States District Court for the Western District of Virginia in Harrisonburg.
Brian Patrick Aronhalt, 33, of Winchester, Va., previously pled guilty to one count of conspiracy to produce child pornography, one count of enticing minors to engage in sexually explicit conduct, four counts of producing child pornography, one count of possession of child pornography and one count of distributing child pornography.
Yesterday in District Court, he was sentenced to 20 years in federal prison and a lifetime of supervised release following his prison term. Restitution in this matter will be determined during a separate hearing to be scheduled in the next 90 days.
“Mr. Aronhalt used deception to repeatedly abuse children,” United States Attorney Timothy J. Heaphy said today. “His case serves as a grim reminder for parents to monitor what their children are doing online. Those of us who work in law enforcement will continue to pursue and prosecute predators like Mr. Aronhalt. We won’t be successful, however, unless parents acknowledge the threat and take steps to help their children stay safe online.”
Evidence presented at yesterday’s hearing showed that Aronhalt posed as a minor female online and enticed numerous minor boys to masturbate for him via webcam, which he recorded. Evidence also showed that the defendant’s collection of self-produced webcam videos depicted at least 100 separate minors.
The defendant learned from others online how to use a sexually explicit video of a female to appear as a live webcast to the minor boys. Using the pre-recorded video, Aronhalt enticed the boys to masturbate for him via webcam and recorded the sexually explicit conduct.
In addition, during the execution of a search warrant, agents from the Federal Bureau of Investigation and the DC Internet Crimes Against Children Task Force found thousands of images depicting child pornography on Aronhalt’s computers.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Northern Virginia DC Internet Crimes against Children Task Force and the Child Exploitation and Obscenity Section of the Department of Justice. Assistant United States Attorney Nancy Healey will prosecute the case for the United States along with Trial Attorney Sarah Chang, U.S. Department of Justice, Child Exploitation and Obscenity Section (CEOS). CEOS’s High Technology Investigative Unit (HTIU) conducted computer forensic analysis for the case.
Wichita Man IndictedOn Charge of Attempting to Rob Dollar GeneralRead the Press Release
KANSAS CITY, KAN. - A Wichita man was indicted today on a federal charge of attempting to rob a Dollar General store, U.S. Attorney Barry Grissom said.
Emanuel Goines, 46, is charged with a Feb. 10, 2014, attempted robbery at Dollar General, 2020 E. 21st, in Wichita, Kan. Goines initially was charged in a criminal complaint filed Feb. 12 in U.S. District Court in Wichita. An affidavit alleges that on Feb. 10, 2014, officers were working on a special detail in response to an increase in commercial robberies. Two officers in an unmarked car saw Goines enter the Dollar General store at 2020 E. 21st North. When marked cars responded, Goines ran from the store. Officers found him hiding beneath a truck in the 2200 block of North Piatt.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney David Lind is prosecuting.
OTHER INDICTMENTS
Justin Johnson, 38, and Penny Johnson, 37, the owners of Timberview Construction in Lenexa, Kan., are charged with one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.
The indictment alleges they diverted the proceeds of a loan guaranteed by the Small Business Administration for purchases that were not part of the stated purpose of the loan. It also alleges they laundered proceeds of the crime through wire transfers to bank accounts they controlled.
If convicted, they face a maximum penalty of 30 years in federal prison and a fine up to $1 million on the bank fraud charge, and a maximum penalty of 10 years and a fine up to $250,000 on the money laundering charge. The Small Business Administration, the Internal Revenue Service, the Federal Deposit Insurance Corporation, the Federal Reserve Board – OIG, the U.S. Secret Service and the Office of the Special Inspector General for the Troubled Asset Relief Program investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
John Lee Cline, 48, Halstead, Kan., is charged with a Jan. 21, 2014, robbery of the Intrust Bank at 3932 W. 13th North in Wichita, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney David Lind is prosecuting.
Tomas Zepeda, Jr., 34, and Shawna Lynn Mathis, 31, are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Feb. 11, 2014 in Thomas County, Kan.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $1 million. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Thomas Lee Wohlford, 31, Wichita, Kan., is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Feb. 11, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Warwick Resident Sentenced to 3 Years in Federal Prison for Possession of Child PornographyRead the Press Release
PROVIDENCE, R.I. – Leonard O’Neill, 58, of Warwick, R.I., was sentenced today to 36 months in federal prison for possession of child pornography, announced United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Cheryl DiPrizio, Special Agent in Charge of the Northeast Field Office of the United States Naval Criminal Investigative Service (NCIS).
At sentencing, U.S. District Court Judge Mary M. Lisi ordered O’Neill to serve 10 years supervised release upon completion of his prison term. O’Neill pleaded guilty on October 17, 2013.
According to information presented to the court, in May 2012, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) task force were conducting an on-line Internet investigation of file-sharing networks to identify users possessing and sharing child pornography. On May 21, 2012, a Special Agent from NCIS assigned to the ICAC task force observed 235 files of child pornography being shared from an IP address in Warwick, R.I. The agent made a direct connection to the IP address and downloaded two image files and two zip files containing dozens of images of child pornography. The IP address was later identified as belonging to the defendant.
According to information presented to the court, on November 28, 2012, federal, state and local law enforcement members of the ICAC task force executed a court authorized search of the defendant’s Warwick residence and seized a laptop computer, two desktop computers, a video camera and two external hard drives. A forensic analysis of the computers and hard drives revealed 15,000 images and 2,430 videos depicting prepubescent children engaged in sexual acts with adult males, including images involving infants, bondage and bestiality. The National Center for Missing and Exploited Children is attempting to determine the identity of the victims.
Leonard, who was not at home at the time his residence was searched, was arrested a short time later by members of the ICAC task force at his place of employment.
Leonard, who was released to home confinement on $50,000 secured bond following his arraignment in federal court on July 11, 2013, wasordered to self-surrender by March 20, 2014, to begin serving his term of imprisonment.The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The Rhode Island Internet Crimes Against Children (ICAC) task force actively engages in investigative efforts to identify subjects involved in child exploitation-related activities. The Rhode Island ICAC Task Force Program, funded by the Department of Justice, is administered by the Rhode Island State Police and supports a national network of multi-agency, multi-jurisdictional task forces engaged in investigations, forensic examinations, and prosecutions related to Internet crimes against children and technology-facilitated child sexual exploitation.
The Rhode Island ICAC task force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Bristol, Coventry, Jamestown, Middletown, North Kingstown, Pawtucket, Portsmouth, Warwick, and Woonsocket Police Departments, and agents from Homeland Security Investigations, United States Naval Criminal Investigative Service and United States Postal Inspection Services
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Vanceboro Man Sentenced for Transporting Child PornographyRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court Senior United States District Judge James C. Fox sentenced WILLIAM CHRISTOPHER BUTLER , 55, to 240 months imprisonment, followed by a life-term of supervised release and he is required to register as a Sex Offender.
A Federal Grand Jury returned a Criminal Indictment on July 17, 2013. On October 1, 2013, BUTLER pled guilty to one count of transporting child pornography.
According to the investigation, on March 19, 2013, Greenville Police Department was notified by Inmotion, a media transfer and video production company, that they had received 8mm film from BUTLER requesting it be transferred to DVD. The film contained child pornography. During an interview with BUTLER on March 21, 2013, he admitted that he had transported the film from Bonita Springs, Florida to North Carolina when he moved to Vanceboro.
Investigation of this case was conducted by the Greenville Police Department and North Carolina State Bureau of Investigation, through the partnership of the North Carolina Internet Crimes Against Children Task Force. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Uniontown Man Sentenced to Prison for Illegally Possessing RevolverRead the Press Release
PITTSBURGH - A convicted felon was sentenced yesterday afternoon in federal court to 18 months imprisonment followed by three years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on William Kent Bricker, 56, of Uniontown, Pa.
According to information presented to the court, on Sept. 2, 2012, Bricker, being a convicted felon, illegally possessed a .32 caliber revolver. Bricker was convicted of armed bank robbery in 1993 and illegal firearms possession in 2004. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Bricker. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Two Sentenced in Madison County Tax Sale SchemeRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Scott McLean, 51, of Belleville, Illinois, and John A. Vassen, 56, of O’Fallon, Illinois, were sentenced in the United States District Court in East St. Louis, Ill., for violating the Sherman Antitrust Act.
Evidence presented at the sentencing hearing established that McLean and Vassen participated in a price fixing scheme orchestrated by former Madison County Treasurer Fred Bathon. Bathon structured the Madison County tax sale to permit the tax buyers to charge distressed homeowners inflated interest rates from 2005-2008 in exchange for campaign contributions.
“These tax buyers repeatedly gouged financially distressed homeowners with confiscatory interest rates enabled by a corrupt treasurer. This crime was a toxic combination of public corruption fueled by private greed. The people of Southern Illinois deserve better.” said United States Attorney Wigginton. US Attorney Wigginton praised the work of the Metro East Public Corruption Task Force, including agents from the IRS and the FBI. “These dedicated men and women work long hours for little pay to keep the citizens of our District safe from those who seek only to enrich themselves at our expense.”
McLean was sentenced to 18 months in prison, to serve three (3) years supervised release, pay a $25,000 fine and a special assessment of $100. Vassen was sentenced to 24 months in prison, to serve three (3) years supervised release, pay a $25,000 fine and a special assessment of $100. Both sentences were in excess of the recommendation from the United States Sentencing Guidelines. A third tax buyer, Barrett R. Rochman, 70, of Makonda, Ill., also pled guilty to participating in noncompetitive tax sales on October 17, 2013. Rochman is scheduled to be sentenced on March 25, 2014.
The former treasurer of Madison County, Illinois, Fred Bathon pled guilty to antitrust charges on February 5, 2013. Bathon was sentenced on December 6, 2013, to thirty (30) months in prison, two (2) years supervised release, a fine of $20,000, and a special assessment of $100.
The charges allege that at Illinois tax lien auctions, investors bid to purchase tax lien certificates issued against delinquent tax payers. Investors are supposed to compete to purchase these tax liens by bidding on the interest rate the property owner will be required to pay prior to redeeming the tax lien attached to the owner's property. The bid opens at no more than the statutory maximum of 18% and through a competitive bidding process can be driven as low as 0 percent. The bidder offering the least penalty percentage rate, i.e., the bidder who is willing to allow the owner to redeem his property for the smallest penalty, is allowed to purchase the tax lien. As such, competitive bidding benefits financially distressed homeowners by reducing the amount of money that they have to pay to save their home from foreclosure; however, that same system reduces the profit made by tax buyers. Tax buyers prefer to receive high interest rates, which corresponds to higher profits.
For the tax sales conducted in 2005-2008, Fred Bathon structured the tax sales in a way that eliminated competitive bidding and allowed the tax buyers to engage in price fixing by only bidding the statutory maximum interest rate of 18%. The tax buyers who pled guilty today were charged with making campaign donations to Bathon in exchange for receiving property tax liens at non-competitive interest rates.
By 2007 and 2008, the bid rigging and price fixing was so pervasive that distressed homeowners were charged the statutory maximum interest rate on nearly every property tax lien sold. During the tax auction occurring November 14-15, 2007, 2,549 out of 2,574 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 99.03% of the property tax liens auctioned. During the tax auction occurring November 13-14, 2008, 2,290 out of 2,364 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 96.86% of the property tax liens auctioned.
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service, and the Federal Bureau of Investigation. The case is being prosecuted by US Attorney Stephen R. Wigginton and Assistant United States Attorney Steven D. Weinhoeft.
Two Grand Haven Men Sentenced for Stealing Firearms from Gun Stores in Ottawa and Muskegon CountiesRead the Press Release
GRAND RAPIDS, MICHIGAN – Muskegon County Prosecutor D.J. Hilson, Ottawa County Prosecutor Ronald J. Frantz, and ATF Special Agent in Charge, Steven Bogdalek joined U.S. Attorney Patrick Miles in announcing that Joseph Jerry Sweet, age 33, and Ronald Patrick Cook, age 28, both from the Grand Haven area, were sentenced for their roles in stealing firearms from Federal Firearms Licensees. Cook received a sentence of 156 months, and Sweet received a sentence of 188 months. The defendants were ordered to pay restitution in the amount of $23,339.25 for the unrecovered firearms and the damage to the stores. Both were ordered to serve a three-year period of supervised release following their prison sentences.
Sometime during the night on June 27, 2013, the two defendants broke into the Renegade River store in Spring Lake, Michigan, stealing eight firearms. On July 13, 2013, the two broke into the Grasmeyer Brothers Gun & Supply Shop in Dalton Township, Michigan, at approximately 12:30 a.m., stealing 24 firearms, including twenty handguns and four rifles. Nine of the Grasmeyer firearms were later recovered. Most of the remaining firearms were sold or traded to drug dealers, including an individual who was the defendant’s main heroin supplier.
Federal law prohibits the theft of firearms from Federal Firearms Licensees. Both stores are federally-licensed firearms dealers. The defendants faced a maximum sentence of twenty years in prison.
This case resulted from a coordinated investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Muskegon County Sheriff’s Department, the Grand Haven Public Safety Department, the Spring Lake/Ferrysburg Police Department, and the Michigan State Police-West Michigan Enforcement Team (WEMET).U.S. Attorney Miles commented: “These significant federal sentences are the result of an on-going cooperative state and federal effort to combat gun violence in our communities, and they underscore the danger posed by this criminal behavior.
Muskegon County Prosecutor Hilson added: “When it comes to gun violence, the Muskegon County Prosecutor’s Office will continue to work hand in hand with the U.S. Attorney’s Office to make sure that those individuals who engage in illegal gun activity are removed from our neighborhoods so that we as a community are able to enjoy safe days and quiet nights.”
Ottawa County Prosecutor Frantz stated: “We appreciate the cooperative efforts of both federal and local law enforcement in bringing these matters to a just conclusion.” ATF Special Agent in Charge Bogdalek added, “we understand that firearms which are stolen typically end up in the hands of violent criminals that threaten the safety of our communities every day. Criminals should know that when they steal firearms from a Federal Firearms Licensee (FFL), ATF will respond with our state and local law enforcement partners to apprehend them.”
The Honorable Robert J. Jonker presided over this case.
END
Two Florida Men Sentenced for Defrauding Thousands of Homeowners in $4 Million<br /> Nationwide Home Loan Modification ScamRead the Press Release
Two Florida men were sentenced today to serve 84 months in prison for defrauding thousands of homeowners in a $4 million nationwide home loan modification scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero made the announcement.
Christopher S. Godfrey, 44, of Delray Beach, Fla., and Dennis Fischer, 42, of Highland Beach, Fla., were sentenced by U.S. District Court Judge Rya W. Zobel of the District of Massachusetts and ordered to serve three years of supervised release following their prison term.
The defendants were convicted on Nov. 14, 2013, after a two-week trial, of one count of conspiracy, eight counts of wire fraud, eight counts of mail fraud and one count of misusing a government seal.
“These men stole millions of dollars from struggling Americans who had achieved the dream of home ownership and sought help to refinance their mortgages and save their homes from foreclosure,” said Acting Assistant Attorney General Raman. “Today’s sentences should serve as a warning to anyone who exploits distressed homeowners and prevents them from getting the real help they need.”
“These convictions and sentences should send the message that those who prey on the most economically vulnerable among us to line their own pockets will be caught, convicted and given the long prison sentences they deserve,” said U.S. Attorney Ortiz.
“Scamming homeowners by selling for $400 to $2,000 what is a free application to TARP’s housing program is a despicable crime, and for their crimes, Godfrey and Fischer will each spend the next seven years in federal prison,” said Special Inspector General Romero. “Godfrey and Fischer swindled homeowners out of more than $4 million, which they used for extravagant trips to Dubai and France, luxury shopping sprees, and to pay their own mortgages on waterfront homes in Florida beach communities. SIGTARP and our law enforcement partners will put an end to scams that exploit TARP and bring swift justice to con men who perpetrate these scams.”
According to the evidence presented at trial, from January 2009 through May 2011, Godfrey, Fischer and their employees, operating under the name Home Owners Protection Economics Inc. (HOPE), made a series of misrepresentations to induce struggling homeowners to pay HOPE a $400 to $2,000 up-front fee in exchange for HOPE’s help obtaining federally funded home loan modifications. Among these misrepresentations were the claims that, with HOPE’s assistance, the homeowner was guaranteed to receive a loan modification under the Home Affordable Modification Program (HAMP), which is part of the Troubled Asset Relief Program (TARP) and is a federally funded mortgage-assistance program. For example, the defendants routinely claimed that the homeowner had already been approved for a loan modification, provided phony “approval codes,” quoted new (and wholly fictitious) mortgage terms and due dates, touted their 98 percent past success rate and claimed that they were “underwriters” or were otherwise affiliated with the homeowners’ mortgage companies. HOPE also claimed that it would offer homeowners refunds in the unlikely event that they did not receive a loan modification.
According to the trial evidence, in exchange for the up-front fees, HOPE sent its customers, including homeowners in Massachusetts, a do-it-yourself application package, which was virtually identical to the application that the government provides free of charge. The HOPE customers had no advantage in the application process, and, in fact, most of their applications were denied. Through these misrepresentations, HOPE was able to persuade thousands of homeowners to pay more than $4 million in fees.
Trial evidence also showed that the defendants claimed that they operated HOPE as a non-profit, when, in fact, they operated as a for-profit telemarketing fraud scheme. Godfrey and Fischer used funds that homeowners had paid into the purported non-profit’s bank account to pay for their trips to Dubai and the South of France, to shop at luxury stores, to pay for their pool service, and to pay the mortgages on their waterfront home and condominium. The remaining two defendants in the case, Vernell Burris Jr. and Brian Kelly, have pleaded guilty and will be sentenced on Feb. 25, 2014.
The case was investigated by SIGTARP and is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder in the District of Massachusetts’s Computer Crimes Unit.Two Florida Men Sentenced for Defrauding Thousands of Homeowners in $4 Million Nationwide Home Loan Modification ScamRead the Press Release
BOSTON – Two Florida men were sentenced today to serve 84 months in prison for defrauding thousands of homeowners in a $4 million nationwide home loan modification scheme.
United States Attorney Carmen M. Ortiz, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero made the announcement.
Christopher S. Godfrey, 44, of Delray Beach, Fla., and Dennis Fischer, 42, of Highland Beach, Fla., were sentenced by U.S. District Court Judge Rya W. Zobel and ordered to serve three years of supervised release following their prison term.
The defendants were convicted on Nov. 14, 2013, after a two-week trial, of one count of conspiracy, eight counts of wire fraud, eight counts of mail fraud and one count of misusing a government seal.
“These convictions and sentences should send the message that those who prey on the most economically vulnerable among us to line their own pockets will be caught, convicted and given the long prison sentences they deserve,” said U.S. Attorney Ortiz.“These men stole millions of dollars from struggling Americans who had achieved the dream of home ownership and sought help to refinance their mortgages and save their homes from foreclosure,” said Acting Assistant Attorney General Raman. “Today’s sentences should serve as a warning to anyone who exploits distressed homeowners and prevents them from getting the real help they need.”
“Scamming homeowners by selling for $400 to $2,000 what is a free application to TARP’s housing program is a despicable crime, and for their crimes, Godfrey and Fischer will each spend the next seven years in federal prison,” said Special Inspector General Romero. “Godfrey and Fischer swindled homeowners out of more than $4 million, which they used for extravagant trips to Dubai and France, luxury shopping sprees, and to pay their own mortgages on waterfront homes in Florida beach communities. SIGTARP and our law enforcement partners will put an end to scams that exploit TARP and bring swift justice to con men who perpetrate these scams.”
According to the evidence presented at trial, from January 2009 through May 2011, Godfrey, Fischer and their employees, operating under the name Home Owners Protection Economics Inc. (HOPE), made a series of misrepresentations to induce struggling homeowners to pay HOPE a $400 to $2,000 up-front fee in exchange for HOPE’s help obtaining federally funded home loan modifications. Among these misrepresentations were the claims that, with HOPE’s assistance, the homeowner was guaranteed to receive a loan modification under the Home Affordable Modification Program (HAMP), which is part of the Troubled Asset Relief Program (TARP) and is a federally funded mortgage-assistance program. For example, the defendants routinely claimed that the homeowner had already been approved for a loan modification, provided phony “approval codes,” quoted new (and wholly fictitious) mortgage terms and due dates, touted their 98 percent past success rate and claimed that they were “underwriters” or were otherwise affiliated with the homeowners’ mortgage companies. HOPE also claimed that it would offer homeowners refunds in the unlikely event that they did not receive a loan modification.
According to the trial evidence, in exchange for the up-front fees, HOPE sent its customers, including homeowners in Massachusetts, a do-it-yourself application package, which was virtually identical to the application that the government provides free of charge. The HOPE customers had no advantage in the application process, and, in fact, most of their applications were denied. Through these misrepresentations, HOPE was able to persuade thousands of homeowners to pay more than $4 million in fees.
Trial evidence also showed that the defendants claimed that they operated HOPE as a non-profit, when, in fact, they operated as a for-profit telemarketing fraud scheme. Godfrey and Fischer used funds that homeowners had paid into the purported non-profit’s bank account to pay for their trips to Dubai and the South of France, to shop at luxury stores, to pay for their pool service, and to pay the mortgages on their waterfront home and condominium. The remaining two defendants in the case, Vernell Burris Jr. and Brian Kelly, have pleaded guilty and will be sentenced on Feb. 25, 2014.
The case was investigated by SIGTARP, and is being prosecuted by Assistant U.S. Attorney Adam Bookbinder of Ortiz’s Computer Crimes Unit and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section.Texas Man Charged with Hate Crime for Assault Based on Victim’s Sexual OrientationRead the Press Release
Brice Johnson, 19, of Springtown, Texas, has been charged with willfully causing bodily injury to a person because of the actual or perceived sexual orientation of that person in a federal criminal complaint, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Northern District of Texas and the FBI Dallas Division announced. The complaint was filed on Feb. 12, 2014, in the U.S. District Court in Fort Worth, Texas.
Johnson has been in state custody since his arrest on Sept. 10, 2013, and he made his initial appearance in federal court today.
According to the affidavit filed with the criminal complaint, in the early morning hours of Sept. 2, 2013, the adult male victim, identified as A.K., connected with Johnson through the cell phone application for MeetMe.com. A.K.’s MeetMe.com page indicated he was a gay man, while Johnson’s page indicated he was not gay. During their communications, Johnson said that he was interested in engaging in sexual activity with A.K. He invited A.K. to his home, gave A.K. his cell phone number and address and they exchanged text messages planning their sexual activity.
After A.K. showed up at the house, Johnson severely beat him, then put him into the trunk of A.K.’s car and drove him to a friend’s home. Based on ligature marks on A.K.’s wrists, it appears that he was bound with an electrical cord while he was in the trunk of the car. Individuals at the home told Johnson to take A.K. to the hospital or they would call the police, and Johnson eventually drove the victim to an Emergency Medical Services station in Springtown.
A.K. was hospitalized for 10 days in Fort Worth, and he was diagnosed and treated for multiple skull and facial fractures. The investigation revealed that on the night of the incident, Johnson saved A.K.’s cell phone number using a gay slur as a contact name and Johnson later stated that he was playing a prank on the victim because of his sexual orientation, again using a gay slur when referring to A.K. According to the affidavit, A.K. said that he had no physical contact with Johnson prior to the attack.
A federal complaint is a written statement of the essential facts of the offenses being charged and must be made under oath before a magistrate judge. The defendant is presumed innocent until proven guilty. However, the statutory maximum penalty upon conviction for the offense as charged is 10 years in federal prison and a $250,000 fine. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment, and an indictment could include other charges that increase the maximum penalty.
The investigation is being conducted by the FBI, the Springtown Police Department and the Parker County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Cara Foos Pierce and Trial Attorney Saeed Mody of the Civil Rights Division.
Steven Marshall Fout Sentenced to 151 Months in Prison for Distribution and Possession of Child PornographyRead the Press Release
KNOXVILLE, Tenn.- Steven Marshall Fout, 24, of Sweetwater , Tenn., was sentenced on Feb. 20, 2014, to serve 151 months in prison by the Honorable Danny C. Reeves, visiting U.S. District Judge. The sentence was imposed as the result of a guilty plea entered by Fout in June 2013, to federal charges of knowingly distributing and possessing child pornography.
Upon his release from prison, Judge Reeves imposed a 30-year term during which Fout’s activities will be supervised by the U.S. Probation Office. He was also ordered to pay $2,500 in restitution to victims whose digital images were found on in his possession.
Also, as a result of the conviction, the federal Sex Offender Registration and Notification Act will require Fout to register following his incarceration with the state sex offender registry anywhere he resides, is employed, or is a student.
The investigation leading to the conviction and sentencing of Fout was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew T. Morris represented the United States at sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Six Indicted in Fraud Cases Related to Telemarketing Operations That Solicited Millions to Fund Fake MoviesRead the Press Release
LOS ANGELES – Four people were arrested today on federal fraud charges stemming from telemarketing operations that allegedly solicited investments in movies with false promises of high returns with little risk.
Today’s arrests are the result of two federal grand jury indictments unsealed this morning. The indictments charge a total of six defendants who allegedly participated in separate fundraising schemes related to bogus film projects. While one movie script was written, no movies were ever actually produced. The indictments allege that the defendants executed the schemes to defraud victims around the nation and collectively caused losses of several million dollars.
The first case is contained in a 29-count indictment relating to two companies -- Mutual Entertainment LLC and Film Shoot LLC. Four defendants related to this scheme are charged with mail fraud, wire fraud, attempted wire fraud and making false statements.
The defendants are:
Samuel Braslau, 53, of Mar Vista, an attorney and co-founder of the companies, who was arrested this morning;
Rand Jay Chortkoff, 64, of Encino, a co-founder of the companies, who was arrested this morning;
Stuart Rawitt, 47, of West Hollywood, a salesperson, who was arrested this morning;
Robert Matias, 50, of Granada Hills, a salesperson who is a fugitive.
The three arrested this morning are expected to be arraigned this afternoon in United States District Court in Los Angeles.Also today, the Securities and Exchange Commission filed a civil lawsuit that alleges Braslau, Chortkoff and Rawiit defrauded investors (see: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370540815507)
In the second case, the operators of another company – C22 in the San Fernando Valley -- were named in a 19-count indictment that accuses them of mail fraud, wire fraud, and attempted wire fraud. The two named in an indictment focusing on a company known under several permutations of C22 are:
Mack Machen, 70, of Sunland, the president of C22, who has agreed to self-surrender and be arraigned this afternoon; and
Anthony David Millan, 37, of Chula Vista, the CEO of C22, who was arrested this morning and is expected to make his first court appearance this afternoon in United States District Court in Santa Ana.
The first indictment focuses on the activities of a company called Mutual Entertainment LLC and later renamed Film Shoot LLC, which allegedly bilked investors in a motion picture called “Marcel” and later renamed “The Smuggler.”
The indictment alleges that the defendants raised money for the film through boiler room telemarketing operations. The telemarketers allegedly made fraudulent pitches to investors after first representing themselves to be independent “surveyors” from a national research firm. Victims were falsely told that 64 percent of investor money would be used to produce the film, and that investors would be first in line to receive any revenue generated by the movie, according to the indictment, which states that the defendants also falsely claimed to have contracted with well-known actors to appear in “The Smuggler.”
During the course of the Mutual Entertainment/Film Shoot scheme, the defendants allegedly persuaded more than 60 investors across the nation to invest a total of $1.8 million in the movie that was never produced.
In 2011, the Alabama Securities Commission filed an administrative order against the company and one of the defendants, concluding that the defendants in that action had failed to comply with many provisions of the Code of Alabama 1975 pertaining to the offer and sale of investments. As alleged in the indictment, following the issuance of this order, two other defendants changed the name of the company from Mutual Entertainment to Film Shoot, and the name of the movie from “Marcel” to “The Smuggler,” in an attempt to hide the Alabama Order from potential investors.
The second indictment unsealed today focuses on C22 Capital, Inc. and C22 LLC, Inc. This indictment alleges that telemarketers for C22 fraudulently induced investments to fund a movie titled “Beyond the Mat.”
According to the indictment, the C22 defendants and their telemarketers made cold-calls to potential investors and told the victims that their money would be used to provide short-term “bridge loans.” Later, the defendants began soliciting money for investment in “Beyond the Mat.” The indictment alleges that the defendants issued promissory notes and promised returns of up to 13 percent per year.
Approximately 80 victims were fraudulently induced to invest in C22, and during the course of the scheme they lost more than $3 million, according to the indictment.
In late 2011, the California Department of Corporations issued a Desist and Refrain order the directed C22 LLC, Inc. to stop doing business due to its fraudulent practices. The indictment alleges that the defendants continued to conduct their business under a different name.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The wire fraud and mail charges each carry a statutory maximum penalty of 20 years in federal prison.
The criminal investigation is being investigated by the Federal Bureau of Investigation.
Release No. 14-024
Sentencing for February 14 - 20, 2014Read the Press Release
Maya Latoya Wiltz, 31, of Riverbank, California, was sentenced by Federal District Court Judge Alan B. Johnson on February 20, 2014, for fraud using an unauthorized access device. Wiltz was arrested in Stanislaus County, California. She received 30 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $102,813.87 to 34 victims. This case was investigated by the Federal Bureau of Investigation and U.S. Secret Service.
Travis J. Harding, 20, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 19, 2014, for conspiracy to possess stolen firearms. Harding was arrested in Gillette, Wyoming. He received 41 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Cody Lynn Clark, 41, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 18, 2014, for possession with intent to distribute, and to distributing 78 grams of methamphetamine and for possession of a firearm in furtherance of a drug trafficking crime. Clark was arrested in Cheyenne, Wyoming. He received 106 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $800.00 fine and a $200.00 special assessment. This case was investigated by the Cheyenne Police Department and the Wyoming Division of Criminal Investigation.
Levi W. Massman, 22, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 18, 2014, for conspiracy to possess stolen firearms. Massman was arrested in Casper, Wyoming. He received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $11,642.81, joint and several with other defendants. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Vertis McDonald, 32, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 14, 2014, for conspiracy to possess stolen firearms. McDonald was arrested in Casper, Wyoming. He received 42 months imprisonment, to be followed by three years of supervised release, and was ordered to a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Self-employed Munhall Man Took $18K in Compensation Benefits Through FraudRead the Press Release
PITTSBURGH – A suburban Pittsburgh man pleaded guilty in federal court to a charge of Federal Employees’ Compensation Fraud, United States Attorney David J. Hickton announced today.
William J. Miller, Jr., 52, of Munhall, Pa., pleaded guilty to one felony count before Senior United States District Judge Maurice B. Cohill, Jr.
According to information presented to the Court at the guilty plea, Miller, in connection with the application and receipt of federal employees' compensation moneys and benefits, concealed and covered up the fact that he was self-employed and involved in a business enterprise. Miller's fraudulent conduct resulted in compensation checks totaling approximately $18,104.57 being issued to him during the period from March 13, 2011, to November 19, 2011, checks he knew he was not entitled to.
Judge Cohill scheduled sentencing for May 29, 2014, at 1:30 p.m. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Miller on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Inspector General, and the United States Postal Service, Office of Inspector General, conducted the investigation leading to the Information in this case.
San Antonio Bank Robber Sentenced to 70 Months in Federal PrisonRead the Press Release
This morning, 27-year-old Larry Elmoe Drummer of San Antonio was sentenced to 70 months in federal prison and ordered to pay $8,581 for robbing the Chase Bank located in the Park North shopping center on February 1, 2013, announced United States Attorney Robert Pitman and Federal Bureau of Investigation Acting Special Agent in Charge Aaron C. Rouse, San Antonio Division.
On November 13, 2013, Drummer pleaded guilty to one count of bank robbery for the above mentioned incident. At the time of his guilty plea, Drummer agreed to pay restitution for his role in three additional bank robberies, namely: $4,296 for the robbery of Frost Bank in the 10000 block of Wurzbach Road on December 19, 2012; $1,000 for the robbery of Security Service Bank in the Park North shopping center on January 23, 2013; and, $11,000 for an earlier robbery of Chase Bank in the Park North shopping center on January 2, 2013. The total restitution ordered in this case to be paid by the defendant amounts to $24,887.
This investigation was conducted by the Federal Bureau of Investigation together with the San Antonio Police Department. Assistant United States Attorney Matthew Lathrop prosecuted this case on behalf of the Government.
Sacramento Dentist Indicted for Fraudulent Billing Scheme Involving Unnecessary Dental WorkRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 18-count indictment today against David M. Lewis, 60, of Sacramento, charging him with one count of conspiracy to commit health care fraud and mail fraud and 17 counts of health care fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Lewis was a dentist who operated a dental practice in Sacramento. Beginning in late 2008 or early 2009, Lewis began targeting United Parcel Service employees for dental treatment because their health care plan under the Northern California General Teamsters Security Fund provided 100 percent coverage without any annual limits. Lewis offered cash and other incentives to UPS patients for receiving dental treatment from Lewis, or for recruiting other UPS employees to receive such treatment.
The indictment alleges that in some instances, Lewis caused claims to be submitted to Delta Health Systems, which administered the UPS health care plan, that falsely billed the plan for work that was never performed. In many other instances, Lewis performed unnecessary dental work on healthy teeth of the UPS employees, including root canals, and claims were submitted to Delta for payment for these unnecessary services.
The indictment also alleges that Lewis created false narratives for work that was not performed or created false statements about purported pre-existing dental conditions of the UPS employee’ teeth to justify the work performed. In some instances, Lewis drilled into healthy teeth, installed a temporary filling, instructed his assistants to take X-rays of the temporary fillings, and then submitted claims to Delta with X-rays of the temporary fillings, falsely claiming that the X-rays depicted tooth decay justifying further restorative procedures.
The total amount of fraudulent billings submitted to Delta as a result of the conspiracy and health care fraud was more than $1 million.
This case is the product of an investigation by the U.S. Department of Labor ‑ Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor ‑ Employee Benefits Security Administration with assistance from the Dental Board of California. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
If convicted, Lewis faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 or twice the gross gain from the fraud. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Queens, N.Y., Men Sentenced to 57 Months in Prison for Large-Scale Atm Skimming Scheme Targeting New Jersey Bank CustomersRead the Press Release
NEWARK, N.J. - Two Romanian natives residing in Queens, N.Y., were sentenced today to prison terms for a scheme to steal account information from bank customers throughout New York, New Jersey, and Connecticut by installing secret card-reading devices on ATMs, U.S. Attorney Paul J. Fishman announced.
Ioan Leusca, a/k/a “Ionel Spinu,” 30, and Dezso Gyapias, a/k/a “Valentin Folea,” 29, were each sentenced to 57 months in prison.
The defendants previously pleaded guilty before U.S. District Judge William J. Martini to separate informations charging each with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Leusca and Gyapias have been held without bail since their arrests on Jan. 13, 2013. Judge Martini imposed the sentences today in Newark federal court.
According to documents filed in these and other cases and statements made in court:
Leusca and Gyapias admitted that they and their fellow conspirators installed skimmers and pinhole cameras at bank ATMs. The devices were installed on multiple ATMs in New Jersey and Connecticut. Each skimmer, an electronic device, would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers. Leusca and Gyapias admitted that they and other conspirators went back to collect the devices containing the recorded information.
Leusca and Gyapias acknowledged that after the stolen customer account and identification information had been loaded onto blank ATM cards, they and their conspirators used those cards to steal $985,000 from Citibank ATMs in New Jersey, New York and Connecticut.
The charges leading to their sentences arose from a larger investigation into a skimming scheme that targeted customers in the tri-state area in 2012 and early 2013. Together, the schemes cost a number of banks a total of $5 million in cash stolen from their customer accounts.
Of the eight others charged in relation to the wider scheme, all Romanian nationals who lived in Queens, seven are in custody. The leaders of the scheme, Marius Vintila, 31, and Bogdan Radu, 31, were charged by criminal complaint on July 10, 2013. Vintila and Radu designed and created the actual skimming devices and pinhole cameras and recruited individuals, including Leusca and Gyapias, to install them on bank ATMs. Vintila used an alias to rent multiple self-storage units, in which he stored the contents of an entire skimming operation, including skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds. Radu taught co-conspirators how to install the skimming devices, and used an alias to move skimming devices and cash proceeds overseas.Other charged conspirators, including Constantin Ginga, 53, Marius Cotiga, 35, Constantin Pendus, 30, Emil Revesz, 30, Florin Apetrei, 18 and another individual charged as “first name unknown, last name unknown,” a/k/a “Chioru,” installed the devices designed by Vintila and Radu onto bank ATMs and used fraudulent ATM cards to steal millions of dollars. They used hats, jackets, scarves and sunglasses to disguise themselves while installing the devices and while using the cards to withdraw money.
Ginga, Cotiga, Leusca, Gyapias, Pendus, Revesz, Apetrei, and Radu are in custody in New Jersey and being held without bail. Ginga previously pleaded guilty to conspiring to commit bank fraud and aggravated identity theft and awaits sentencing on Feb. 26, 2014. On Sept. 24, 2013, Vintila was apprehended in Sweden and extradited to the United States in February 2014. Vintila was charged in a six-count indictment on Feb.18, 2014, with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, possession of 15 or more counterfeit access devices, conspiracy to possess access device-making equipment, and possession of access device-making equipment. The individual known as “Chioru” remains at large.
In addition to the prison terms, Judge Martini sentenced Leusca and Gyapias to two years each of supervised release and to pay $985,000 in restitution.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of the U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations in Newark, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s sentences.
The charges and allegations against the other defendants charged in the pending complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel:
Leusca: Frank Arleo Esq., West Orange, N.J.
Gyapias: Joseph Rotella Esq., NewarkPuerto Rico/U.S. Virgin Islands High Intensity Drug Trafficking Area Program Receives National RecognitionRead the Press Release
St. Thomas, VI – White House Drug Control Policy Director Gil Kerlikowske has awarded the St. Thomas Major Organization Investigations unit of the Puerto Rico/U.S. Virgin Islands High Intensity Drug Trafficking Area program (HIDTA) the 2013 national award for Outstanding Task Force Effort, announced United States Attorney Ronald W. Sharpe.
United States Attorney Sharpe, who served as the Chairperson of the PR/USVI HIDTA from June 2012 through December 2013, congratulated the St. Thomas MOI on being chosen for this prestigious award. “Close collaboration with our federal and local law enforcement partners is critical to our efforts to reduce the supply of illicit drugs and the violence associated with its distribution and use,” Sharpe said.
“The DEA Caribbean Division is very proud of the accomplishments of our St. Thomas HIDTA Task Force and we congratulate them for this well-deserved 2013 ONDCP Director's Award,” said Vito Salvatore Guarino, Special Agent in Charge of the DEA Caribbean Division “Key to the St Thomas HIDTA Task Force sustained success is the close coordination and joint work with our law enforcement partners VIPD, ATF, FBI, HSI, IRS, CBP, and the USMS.”
Disrupting and dismantling drug trafficking organizations is fundamental to the mission of the PR/USVI HIDTA. In furtherance of this goal, the St. Thomas Major Organization Investigations (MOI) unit formed an operation known by law enforcement as “Operation Franco’s Folly/Excess Baggage” that targeted the trafficking of narcotics through the St. Thomas Airport. Through the course of the operation, law enforcement employed innovative investigative tactics while maintaining a high level of secrecy which led to the arrest and indictment of 28 individuals, the seizure of over 40 kilograms of cocaine destined for Puerto Rico, Florida and Georgia, and the seizure of a substantial amount of assets. Operation Franco’s Folly also uncovered significant public corruption, which led to the arrest and prosecution of several airport baggage handlers and a Transportation Security Administration officer, whose official positions and access to sensitive areas of the airport posed serious risks to national security.
Significantly, the operation revealed that Roberto Tapia, Director of Enforcement Operations for the Virgin Islands Department of Planning and Natural Resources (DPNR) utilized his official supervisory law enforcement position as well as a DPNR vessel and automobile to facilitate narcotics smuggling. Angelo Hill, former Chief of the Virgin Islands Police Department (VIPD) assisted Tapia by helping him traffic narcotics and avoid detection by federal law enforcement. In September 2013, Tapia pleaded guilty to racketeering charges in connection with his use of DPNR as a criminal enterprise to engage in illegal drug trafficking activities. Angelo Hill also pleaded guilty to related charges. Both men are in custody awaiting sentencing.
The Office of National Drug Control Policy’s HIDTA program provides federal resources to designated areas to help reduce drug trafficking and its harmful consequences. Law 3 enforcement organizations within HIDTAs assess drug-trafficking problems and design specific initiatives to decrease the production, manufacture, transportation, distribution, and chronic use of drugs and money laundering. The HIDTA program plays a vital role in the Obama Administration’s efforts to make the nation safer and healthier by reducing drug use and its consequences. There are currently 28 HIDTAs, which include approximately 16 percent of all counties in the United States and 60 percent of the U.S. population. HIDTA-designated counties are located in 46 states, Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
Sharpe also commended the agencies that comprise the St. Thomas MOI for their efforts in securing the award and for the overall success of the HIDTA program. These agencies include the Federal Bureau of Investigation (FBI), U.S. Drug Enforcement Administration (DEA), Virgin Islands Police Department (VIPD), United States Marshals Service (USMS), Internal Revenue Service Criminal Investigation Division (IRS-CID), U.S. Department of Homeland Security, Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Additional information about the HIDTA program is available on the ONDCP Web site: www.WhiteHouseDrugPolicy.gov
Postal Employee Sentenced for Stealing from the Post OfficeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Donna Spencer, 51, of Falconer, N.Y., pleaded guilty to misappropriation of postal funds by a postal service employee before Chief U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Spencer was employed by the United States Postal Service since 1986. Between February 13, 1999, and July 19, 2013, the defendant was employed as the Postmaster at the Frewsburg, N.Y. Post Office. During that time, Spencer accepted cash payments from USPS customers for the purchase of postage stamps. Instead of depositing the cash payments into the USPS register, the defendant kept the cash for her own purposes. An audit of the Frewsburg facility determined that the total loss amount was $14,023.50.
Sentencing is scheduled for May 27, 2014 at 10:00 a.m. before Judge Skretny.
The plea is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Inspector in Charge Kevin Niland of the Boston Division.Pittsburgh Man Facing Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on Feb.18, named Eugene Allen Morgan, 44, as the sole defendant.
According to the indictment, on or about Sept. 12, 2013 and Sept. 19, 2013, Morgan distributed and possessed with the intent to distribute a quantity of heroin, a Schedule I controlled substance. Additionally, on or about Jan. 30, 2014, Morgan, being a convicted felon, illegally possessed a Smith & Wesson .40 caliber semi-automatic pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
A task force led by the Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the indictment in this case. The task force also included several other federal, state, and local agencies from multiple states, including the Internal Revenue Service - Criminal Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Allegheny County District Attorney’s Office, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Penn Hills Police Department, the Monroeville Police Department, and the McKees Rocks Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Trying to Send A Pistol from U.S. to LebanonRead the Press Release
PITTSBURGH – A Stanton Heights man has been indicted by a federal grand jury in Pittsburgh on a charge of smuggling goods from the United States, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 18, named Tarek Mohamed Chok, 49, as the sole defendant.
According to the indictment presented to the Court, on or about Sept. 18, 2012, Chok knowingly and fraudulently attempted to export and send a Springfield, Model 1911, .45 caliber pistol from the United States to Lebanon.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Department of Homeland Secuirty conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pine Bluff Family Found Guilty in tax Fraud Scheme; Fraudulent Refunds Submitted Totaled More Than $1.7 MillionRead the Press Release
Little Rock - Christopher R. Thyer,United States Attorney for the Eastern District of Arkansas; and Christopher A. Henry, Internal Revenue Service-Criminal Investigation Special Agent in Charge; announced that after a two and one-half week trial, Brenda Laws, age 56, Lareka Laws, age 35, Jameel Laws, age 27, and Milton Laws, Jr., age 32, all of Pine Bluff, were all found guilty on February 13, 2014, of conspiracy to defraud the United States by filing false tax returns.
Brenda Laws was found guilty of filing 249 false tax returns for 249 different people who claimed the Frist Time Home Buyer (FTHB) credits on their 2008 tax return. She was also convicted of aiding her son, Milton, in the filing of his false tax return.
Lareka Laws was convicted of conspiracy and two counts of filing false tax returns. Jameel Laws was convicted of conspiracy and filing his own false tax return. Milton laws, Jr. was convicted of conspiracy and filing his own false tax return with the assistance of his mother, Brenda.
“The blatant abuse of the tax code credit for first time homebuyers by this family for their personal gain and gambling funds is inexcusable,” stated Thyer. “When 56% of all tax returns with the FTHB credit from Jefferson County and 46% of the same FTHB credit returns from Alteimer filed in 2009 were filed from the Laws residence, it didn’t take long for this investigation to begin and end with the Laws. I am grateful for the tedious investigative work of the IRS agents and for the attention the jury gave to the vast amount of evidence during the long trial. Their service to the citizens of Arkansas has brought about the just conviction of a family who thought nothing of stealing from law-abiding taxpayers.”
“At the IRS, protecting taxpayer money is a matter we take extremely serious. An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims,” stated SAC Henry. “Convictions, like those in this case, send a loud and clear message that individuals who violate our nation’s tax laws will be fully investigated, prosecuted, and subjected to the full punishment of the law for their actions.”
Stephen Barnett and Tenesha Roberts, also indicted in this case, both pled guilty to the conspiracy prior to the trial. Both testified against the Laws at trial.
According to the indictment, all six individuals conspired to defraud the Internal Revenue Service (IRS) by filing 2008 federal income tax returns in their own names and in the names of others without their knowledge to claim refunds they knew they were not entitled to receive. This group of individuals was allegedly responsible for the filing of a total of 251 tax returns which falsely claimed the First-Time Homebuyers Credit. The refund claims totaled more than $1.7 million. Brenda and Lareka Laws created false Forms 5405, the First-Time Homebuyer Credit Form, which contained fabricated addresses and acquisition dates of property that the taxpayer listed did not purchase. These returns were then filed electronically with the IRS.
Milton Laws, Jr. was detained after trial. His pretrial release was revoked December 10, 2013, by United States Magistrate Judge Beth Deere. The Third Motion to Revoke stated that Milton violated the terms of his release by submitting diluted specimens for drug screenings on six separate occasions during 2012. On October 29, 2012, his drug screen tested positive for marijuana. On October 19, 2012, he failed to make payments on citations. On December 12, 2012, his blood alcohol content test revealed a 0.343% blood alcohol level. He failed to appear for required counseling sessions and on March 5, 2013, was terminated from outpatient treatment as a result of his lack of participation in treatment services. He continued to disregard the restrictions put in place by the United States Magistrate Judge resulting in his arrest. All other defendants in the case have remained out on their own recognizance.
Sentencing for all defendants will be set by the Court at a later date.
Each individual faces a maximum penalty of 10 years in prison, a fine of $250,000, or both with not more than 3 years’ supervised release on the conspiracy count. Each false claim count carries a maximum penalty of 5 years in prison, a fine of $250,000, or both with not more than 3 years supervised release.
The investigation was conducted by the Internal Revenue Service - Criminal Investigation Division. First Assistant United States Attorney Pat Harris and Assistant United States Attorney Stephanie Mazzanti have prosecuted this case for the United States.
Physician Arrested for Allegedly Illegally Dispensing Oxycodone and Falsely Billing Medicare in Undercover ProbeRead the Press Release
CHICAGO — A southwest suburban physician was arrested yesterday on federal charges for allegedly conspiring to illegally dispense a prescription medication and health care fraud, federal law enforcement officials announced today. The defendant, SATHISH NARAYANAPPA BABU, the owner of Anik Life Sciences Medical Corp., allegedly conspired to illegally dispense oxycodone and fraudulently billed Medicare for services he purportedly provided.
Federal agents with the Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of Inspector General, and the FBI yesterday executed federal search and seizure warrants at Bubu’s residence in Bolingbrook and Anik’s offices in Darien in connection with the ongoing investigation of alleged prescription drug diversion and health care fraud. Agents seized more than $100,000 from Anik’s bank accounts. Anik Life Sciences was located in Arlington Heights before relocating to Darien last fall.
Babu, 47, was charged with one count each of conspiracy to illegally dispense a controlled substance and health care fraud in a criminal complaint. He was released on a $100,000 unsecured bond and prohibited from writing any prescriptions or submitting any claims to Medicare by U.S. Magistrate Judge Sheila Finnegan. Babu was ordered to return for a status hearing at 9:15 a.m. next Tuesday in U.S. District Court.
According to the complaint, between November 2012 and December 2013, Babu issued five prescriptions, each for 60 doses of 80mg strength OxyContin, to a patient who was actually an undercover agent, despite never having seen or examined the patient, and Babu permitted unlicensed personnel associated with Anik Life Sciences to issue prescriptions to the patient. During the same period, Babu allegedly submitted false claims to Medicare for services purportedly provided to the patient that were not rendered by Babu or another medical professional licensed in Illinois.
The undercover agent posed as a healthy individual purportedly covered by Medicare and seeking physician services to obtain prescription medication, including oxycodone. The agent further purported to have shoulder pain from a previous injury and to be on disability. On approximately 10 occasions, representatives from Anik Life Sciences, none of whom were licensed as physicians, nurses, or other medical professionals in Illinois, visited the undercover agent in his purported apartment.
Babu allegedly caused unlicensed personnel from Anik Life Sciences to provide purported medical care ― including prescriptions issued under Babu’s name and DEA registration number for controlled substances ― to the undercover agent and then billed Medicare for that purported care. Furthermore, the approximately 300 OxyContin pills that Babu allegedly prescribed to the undercover agent were paid for in large part by Medicare.
The arrest and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Sarah Streicker.
Conspiracy to illegally dispense oxycodone carries a maximum penalty of 20 years in prison and a $1 million fine, and health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Ottawa, Illinois Man Sentenced to 7½ Years in Federal Prison for Receiving Child PornographyRead the Press Release
CHICAGO — An Ottawa, Ill., man was sentenced yesterday to 7½ years in federal prison for amassing a large collection of child pornography over more than four years. The defendant, JAY ARTHUR WIDEMANN, 57, of Ottawa, pleaded guilty last October to receiving child pornography, admitting that he had collected more than 10,500 illicit images and videos.
Widemann formerly owned an appliance store in Ottawa and there were no allegations or indications of any sexual contact with minors.
Widemann was also ordered to pay $70,000 in restitution ― $10,000 to each of seven identified victims ― and he was placed on supervised release for five years following his prison term by U.S. District Chief Judge Ruben Castillo. Widemann was ordered to surrender on April 2 and must serve at least 85 percent of his sentence before he is eligible for release. There is no parole in the federal prison system.
In imposing the sentence, Judge Castillo said it sends a message that such collections of child pornography must be stopped.
According to court documents, Widemann was charged after the Ottawa Police Department received information from the Dutch National Police in Holland that a computer in Ottawa had been used to download child pornography from a Dutch website with massive collections of child pornography. The internet protocol address of that computer was traced to Widemann’s store in Ottawa. After further investigation, Ottawa police learned that Widemann maintained a large collection of child pornography on his computers at his store and residence, which he had accumulated between 2004 and 2009.
Widemann’s “collection of child pornography contained approximately 10,532 images and videos of child pornography, including acts of penetration, extreme degradation, bestiality, and bondage,” Assistant U.S. Attorney Jennie Levin wrote in a sentencing memo.
The federal investigation was conducted by the FBI's Child Exploitation Task Force. The task force is part of a nationwide effort known as the Innocence Lost National Initiative targeting those involved in the commercial sexual exploitation of children in the United States. In Chicago, the CETF is comprised of FBI special agents and officers and investigators from the Chicago Police Department, the Cook County Sheriff's Office, and the Cook County State's Attorney's Office.
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Ocean Springs Businessman Pleads Guilty to Federal Program FraudRead the Press Release
Hattiesburg, Miss - Scott Walker, 34, of Ocean Springs, pled guilty today in U.S. District Court to one count of federal program fraud and one count of conspiracy to commit federal program fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Walker admitted creating and submitting a false invoice in the amount of $180,000 to the City of D’Iberville for payment of consulting services that were never performed in connection with a $3 million grant issued to the City of D’Iberville by the Mississippi Department of Environmental Quality.
Additionally, Walker admitted conspiring with his father, William Walker, to divert federal grant monies in a scheme that resulted in the federal grant monies being used to unlawfully purchase Scott Walker’s personal property in Ocean Springs, Mississippi.
"Today's guilty plea concludes a significant case of fraud committed against the City of D'Iberville," said U.S. Attorney Gregory K. Davis. "Today's guilty plea also takes us one step closer to holding accountable those who, through the Mississippi Department of Marine Resources, fraudulently diverted and misused both federal grants and money belonging to the State of Mississippi."
Daniel McMullen, Special Agent in Charge of the FBI in Mississippi, stated: “I’d like to recognize and commend the investigators whose tenacious pursuit of the truth resulted in this guilty plea. Scott Walker has admitted to and is taking responsibility for conspiring with others, including other public officials, to defraud the United States government for personal gain, validating the case the investigators had built against him. Crimes of this nature do not affect just one person or one community. Public corruption is just that – a corruption that affects everyone, if only by undermining their trust.”
Walker will be sentenced on May 6, 2014 at 1:30 p.m. by U.S. District Judge Keith Starrett in Hattiesburg. The maximum penalty for theft of government funds is ten years in prison and a $250,000 fine. The maximum penalty for conspiracy is five years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation with assistance from the Mississippi State Auditor’s Office. Criminal Division Chief John Dowdy, Assistant U.S. Attorney Jerry Rushing and Assistant U.S. Attorney Jay Golden are prosecuting the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
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Help us combat the proliferation of sexual exploitation crimes against children.
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New Bedford Man Indicted for Armed Bank RobberyRead the Press Release
BOSTON – A New Bedford man was charged today with the armed robbery of a New Bedford credit union.
David A. Frates, 36, was charged with armed bank robbery. The indictment alleges that on Sept. 24, 2013, an individual, later determined to be Frates, entered the St. Anne’s Credit Union in New Bedford. Once inside, Frates, who was wearing a translucent mask and gloves, brandished what appeared to be a black semi-automatic firearm and demanded cash. The tellers handed Frates $1,098 which he stuffed inside an orange bag before fleeing the bank. A witness stated that Frates was wearing a gray sweatshirt with the words, “Bristol Community College” imprinted on the front. Following an investigation, Frates was arrested and officers recovered the gray sweatshirt, the translucent mask, an orange bag, and a black BB gun.
If convicted, Frates faces a maximum sentence of 25 years in prison, five years of supervised release, a $250,000 fine and $1,098 in restitution to St. Anne’s Credit Union.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chief David Provencher of the New Bedford Police Department, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Muskogee Man Pleads Guilty to Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MARCUS WAYNE HALL, age 42, of Muskogee, Oklahoma, pled guilty to Possession of Certain Material Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
Charges arose from an investigation by the Colorado Springs Police Department and the Federal Bureau of Investigation. The defendant was indicted in June, 2013.
The Indictment alleged that between in or about November 2011 and March 1, 2012, in the Eastern District of Oklahoma, the defendant, did knowingly possess and attempt to possess matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct, and had been transported in interstate commerce by computer.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is up to 10 years imprisonment and/or up to a $250,000 fine.
Assistant United States Attorney Edward Snow represented the United States.
More Than 20 People Arrested Following Investigations into Widespread Health Care Fraud in D.C. Medicaid ProgramCharges Unsealed in Largest Health Care Fraud Takedown in D.C. HistoryRead the Press Release
WASHINGTON - More than 20 people, including operators of home care agencies and nurse staffing agencies, office workers, and personal care assistants, were arrested today following investigations into fraudulent billing practices in the home health care industry.
The arrests -- marking the largest health care fraud takedown in the history of the District of Columbia -- followed a multi-year effort by federal and local law enforcement agencies to target widespread fraud in the District of Columbia Medicaid program. More than 200 law enforcement agents fanned out across the region early today to make arrests, execute search warrants at 10 locations, and seize dozens of bank accounts and property.
The charges were announced by U.S. Attorney Ronald C. Machen Jr.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; 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.; Kathy A. Michalko, Special Agent in Charge, Washington Field Office, U.S. Secret Service; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI), and Charles J. Willoughby, Inspector General for the District of Columbia.
The investigation uncovered numerous, separate schemes involving fraud, kickbacks, and false billings in the growing field of home care services for D.C. Medicaid patients. Medicaid provides for such services to be performed by personal care aides, working for home care agencies. The aides assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth. In order to be covered for such benefits, the beneficiaries must get a doctor’s prescription.
In one alleged scheme, the owner of three home care agencies, who was barred from participating in federal health care programs after her nursing license was revoked, is accused of collecting more than $75 million through the District of Columbia and Maryland Medicaid programs. In other alleged schemes, individuals are accused of recruiting and teaming up with Medicaid beneficiaries, who faked or exaggerated symptoms so they could sign up for home health care and then received cash payments of approximately $200 every two weeks to sign timesheets falsely stating that they received home care services when they did not. Bills were submitted on behalf of these individuals for services that never were provided, costing D.C. Medicaid hundreds of thousands of dollars. Finally, one scheme involves a woman accused of selling counterfeit home health care aide certificates.
“This investigation has revealed that Medicaid fraud in the District of Columbia is at epidemic levels,” said U.S. Attorney Machen. “This fraud diverts precious taxpayer dollars, drives up the cost of health care, and jeopardizes the strength of a program that serves the most vulnerable members of our society. However, as today’s arrests, searches, and seizures demonstrate, we are aggressively fighting back to protect the U.S. taxpayer and the integrity of our federal health care programs.”
“Medicaid fraud rings are criminal enterprises that threaten our health care system and our public safety, and they will not be tolerated,” said Assistant Director in Charge Parlave. “Today’s arrests are part of a well-coordinated action with our law enforcement partners that puts criminals on notice that we are actively working to identify, arrest and prosecute anyone who participates in defrauding government programs designed to assist truly deserving patients.”
“Criminal organizations that steal from the District of Columbia Medicaid program are robbing the bank of health care money and cheating honest citizens of resources needed for their care,” said Special Agent in Charge DiGiulio. “We will work tenaciously with our law enforcement partners to fully investigate these disturbing allegations.”
“While it cannot be overly emphasized that this is an announcement of the charging of individuals for alleged criminal conduct with respect to the Medicaid program, the bringing of the charges demonstrates how the District of Columbia Office of the Inspector General continues to work with its law enforcement partners and District agencies to safeguard the District’s residents and treasury, collaborations that I continue to be proud of,” said Inspector General Willoughby.
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The various investigations were conducted by the FBI’s Washington Field Office; the U.S. Department of Health and Human Services, Office of Inspector General; the U.S. Secret Service; the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General; the Internal Revenue Service-Criminal Investigation; the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI); the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, Department of Labor; the Social Security Administration, Office of Inspector General, and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office. Assistance was provided by the District of Columbia’s Department of Health Care Finance and other agencies.
Twelve defendants were named in a total of five indictments that were unsealed today in the U.S. District Court for the District of Columbia. Each of the indictments includes a forfeiture allegation seeking a money judgment representing the proceeds of the alleged scheme.
An additional 13 defendants were charged in the Superior Court of the District of Columbia with first-degree fraud.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws. Every defendant is presumed innocent until, and unless, proven guilty.
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The following charges were unsealed today:
- United States v. Florence Bikundi
Bikundi, the owner of three home care agencies, is charged in a federal indictment with health care fraud, Medicaid fraud, and other charges in a scheme to secure more than $75 million in D.C. Medicaid payments, even though she was barred from participating in any federal health care programs. The charges include multiple counts of money laundering for the manner in which she allegedly conducted financial transactions to conceal the nature, source, and location of her illegal proceeds.
Bikundi 51, also known as Florence Ngwe and Florence Igwacho, of Bowie, Md., owns two entities named Global Healthcare, Inc., and one named Flo-Diamond Inc. In April 2000, according to the indictment, HHS-OIG notified Bikundi in writing that she was excluded from participation in Medicare, Medicaid, and all federal health care programs. This notice was based on the revocation the previous year of Bikundi’s nursing license in Virginia. The exclusion was issued against Bikundi under her name of Florence Igwacho.
Bikundi subsequently concealed her past when she secured Medicaid provider numbers for her businesses using the name of Florence Bikundi, the indictment alleges. She also did not disclose that her nursing licenses were revoked in Virginia, South Carolina and the District of Columbia, the indictment alleges.
In violation of the terms of her exclusion, between July 2007 and the present, according to the indictment, Bikundi’s entities received more than $78 million in payments from Medicaid; of this, $75 million came from the District of Columbia program and the rest from Maryland.
-United States v. Arrey Kingsly Etchi-Banyi, et al
Five individuals, including the owner of a nurse staffing agency, are charged in a federal indictment with conspiracy to commit health care fraud, health care fraud, and other charges in a scheme that allegedly defrauded D.C. Medicaid out of more than $498,000.
Etchi-Banyi, 30, of College Park, Md., owns Ultimate Goal Home Care Agency, Inc., a nurse staffing agency based in Maryland. Ultimate Goal Home Care Agency contracted with home care agencies to provide personal care aides. He is accused of conspiring with four named defendants to get Medicaid payments for personal care services that never were provided.
According to the indictment, from February 2012 to October 2013, Etchi-Banyi and others recruited at least 19 D.C. Medicaid beneficiaries to sign up for personal care and other services that they actually would not receive. The beneficiaries were paid kickbacks to sign up, the indictment alleges, and coached by Etchi-Banyi on what to tell doctors in order to justify their entitlement for personal home care.
The defendants then allegedly paid additional kickbacks to the beneficiaries to prepare false timesheets for home care services that were not provided. These timesheets were used to bill D.C. Medicaid at least $498,000 for services not provided, the indictment alleges.
In addition to Etchi-Banyi, those indicted include three purported personal care aides who worked for Utlimate Care: Oyebola Hammed Babarinde, 25, of Forestville, Md.; Oluwatoyin Bakare, 25, of Laurel, Md., and Cecilia Acquah, 32, of Silver Spring, Md., who also was the office manager. Also indicted was Oyebisi Zaart Babarinde, 31, of Forestville, Md., the sister of Oyebola Hammed Babarinde; she worked for a home care agency.
-United States v. Felix Aburi Fon, et al
Two individuals, both personal care aides, are charged in a federal indictment with conspiracy to commit health care fraud, health care fraud, and other charges in a scheme that allegedly defrauded D.C. Medicaid out of more than $124,000.
Felix Aburi Fon, 41, and his wife, Mirabel Tenjoh Mukum, 32, both of Takoma Park, Md., were personal care aides for Immaculate Health Care Services, a home care agency operating out of the District of Columbia. Mukum also worked for Nursing Unlimited Services, Inc., a home care agency operating out of the District of Columbia.
According to the indictment, from April 2012 through September 2013, Fon and Mukum recruited two D.C. Medicaid beneficiaries into the scheme by offering kickbacks to sign up for personal care services and help submit false timesheets for work that was not performed. Fon and Mukum allegedly carried out this scheme with an unnamed co-conspirator, who worked as a personal care aide for the Vizion One home care agency.
The indictment provides details about $124,000 in allegedly fraudulent claims submitted to D.C. Medicaid and paid to Nursing Unlimited Services, Inc. and Vizion One.
-United States v. Ernest N. Nkongsah, et al
Three individuals, including two personal care aides, are charged in a federal indictment with conspiracy to commit health care fraud and health care fraud in a scheme that allegedly defrauded D.C. Medicaid out of more than $54,000.
From March 2013 until October 2013, according to the indictment, Ernest N. Nkongsah, 38, of New Carrollton, Md., recruited two people to sign up for personal care and other services that they did not receive; one was an undercover law enforcement agent purporting to be a D.C. Medicaid beneficiary. These people were paid kickbacks to sign up, according to the indictment, and then coached by Nkongsah and co-defendant Elizabeth E. Arung on how to make false representations to doctors and nurses so that they could be made eligible for personal care.
Nkongsah and Arung allegedly worked with co-defendant Emiline Desiree Nkemera Besong to prepare false timesheets. The Medicaid claims were submitted on behalf of Vizion One, a home care agency based in the District of Columbia, even though no services were provided. The indictment provides details about more than $54,000 in fraudulent claims.
Arung, 41, of Silver Spring, Md., was a personal care aide at Vizion One, as was Besong, 35, of Hyattsville, Md.
-United States. v. Adoshia L. Flythe
Flythe, a personal care aide, is charged in a federal indictment with health care fraud and aggravated identity theft for her role in a scheme that involved counterfeit health certificates.
Flythe, 36, of Washington, D.C., worked for a home care agency in the District of Columbia. She is accused of selling counterfeit documents to help enable people to become personal care aides, making them eligible for Medicaid reimbursement.
Flythe allegedly sold packages that included a counterfeit “Home Health Care Aide” certificate from the University of the District of Columbia and a counterfeit “Health Certificate for Staff” that contained the forged name and signature of at least one doctor, to two individuals. The individuals purportedly wanted to apply for employment with a home care agency and to cause Medicaid to be billed for personal care services.
Superior Court Cases
Four separate cases were filed in the Superior Court of the District of Columbia, involving a total of 13 defendants and more than $35,000 in D.C. Medicaid payments.
The cases involve separate schemes in which D.C. Medicaid beneficiaries were induced with kickbacks to participate in home health care frauds. As in some of the federal cases, D.C. Medicaid was billed for services that never were provided.
Those charged with first-degree fraud in the Superior Court of the District of Columbia include: Cedonne Ngwilefem Alemnji, 28, of Hyattsville, Md.; Dennis Allen, 56, of Washington, D.C.; Niba Ayinwingong, 49, of Glenarden, Md.; Etienne Boussougou, 34, of Hyattsville, Md.; Ulric Ayo Boyle, 47, of Silver Spring, Md.; Rose Epse-Acha, 53, of Greenbelt, Md.; Brandon Chenwi Shu Fobeth, 28, of Greenbelt, Md.; Michael Fomundam, 38, of Greenbelt, Md.; Eric Mukala, 47, of Bladensburg, Md.; Michael Nyantakyi, 32, of Lanham, Md.; Eliane Poungoum, 47, of Bladensburg, Md.; Victor Tarkeh, 47, of Bowie, Md., and Paul Tengwei, 31, of Takoma Park, Md.
In addition to the arrests, 55 federal seizure warrants were executed today. The contents of 46 bank accounts associated with Bikundi that contained funds received from D.C. Medicaid were seized, as were the contents of three bank accounts associated with Etchi-Banyi’s alleged fraud. In addition, six vehicles purchased with proceeds from the various schemes were seized. A Cadillac Escalade, a Mercedes Benz, a Porsche Panamera, a Land Rover, a Range Rover, and a BMW were seized from Bikundi, and a Toyota Highlander was seized from Etchi-Banyi.
The indictment against Bikundi also alleges that her residence is subject to forfeiture, as it was purchased with funds she received from D.C. Medicaid.
The FBI has set up a hotline number to report suspected incidents of Medicaid fraud: 855-281-1242. People can also provide information by e-mail to [email protected].
HHS-OIG also has a hotline that can be reached at 800-HHS-TIPS or by visiting the agency’s website at http://oig.hhs.gov/ and clicking on the “Report Fraud” tab.
The cases are being prosecuted by Special Assistant U.S. Attorney Dangkhoa Nguyen and Assistant U.S. Attorneys Ted Radway, Michael Friedman, and David Johnson, the office’s health care fraud coordinator, all of the Fraud and Public Corruption Section, and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section.
Assistance was provided by Forensic Accountant Maria Boodoo; Paralegal Specialists Toni Donato, Donna Galindo, Krishawn Graham, Tasha Harris, Shanna Hays, Corinne Kleinman, and Nicole Wattelet; Legal Assistants Angela Lawrence, Jessica McCormick, and Christopher Samson; Litigation Support Specialist Ron Royal; Criminal Investigator Matthew Kutz; Law Clerk Anne Ben-Ami; former Paralegal Specialists Lenisse Edloe and Diane Hayes; and former Assistant U.S. Attorney Angela Saffoe.
14-042Michigan Men Charged with Bank Robbery of Bradford National Bank in HighlandRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Ramsey Z. Fakhouri, 22, and Alexander P. Gerth, 18, both of Troy, Michigan, were indicted by a federal grand jury on February 20, 2014, with bank robbery.
Documents filed with the court allege that on February 14, 2014, the defendants robbed the Bradford National Bank in Highland, Illinois, of $25,780.00 in United States currency, which they obtained by force, violence, and intimidation from a bank employee as the bank employee was re-stocking the bank’s ATM machine.
Note: A defendant is presumed innocent of a charge unless proven guilty beyond a reasonable doubt.
The bank robbery statute carries maximum possible penalties of 20 years in federal prison, a $250,000 fine, or both, and three years’ supervised release.
The case is being prosecuted by Assistant U.S. Attorney Stephen B. Clark. The case was investigated by the Highland Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation.
Mexican Businessman Indicted in Broadening Campaign Finance InvestigationRead the Press Release
San Diego – Mexican businessman Jose Susumo Azano Matsura was charged in an indictment unsealed today with making an illegal campaign contribution to a San Diego mayoral candidate.
Azano, 48, was arrested by FBI agents at his Coronado home Wednesday morning. He was arraigned in federal court this afternoon before U.S. Magistrate Judge Mitchell D. Dembin.
Today’s indictment makes it clear that Azano was the foreign national responsible for the $120,000 illegal campaign contribution to a San Diego mayoral candidate referred to in prior court records. According to federal law, it is illegal for a foreign national to donate to political campaigns in the U.S. Also charged in related cases are San Diego lobbyist Marco Polo Cortes, former San Diego Police detective Ernesto Encinas and Ravneet Singh, owner of the campaign services company known as ElectionMall Inc., which is also charged as a corporate entity.
According to court documents, Cortes, Singh and Encinas conspired to funnel more than $500,000 of illegal foreign money into San Diego municipal and federal campaigns, primarily in 2012 and 2013. The source of the illegal foreign money, the court records said, was a person referred to as “the Foreign National.”
The $120,000 sum in the Azano indictment is the same transaction described in a January 21, 2014 complaint that charges Cortes with conspiracy to finance political campaigns using money from an illegal foreign source. That complaint says: “Using money that the Foreign National had given him, the straw donor wrote a $120,000 check from one of his corporation’s bank accounts to an independent expenditure committee that favored Candidate 3.”
The “straw donor” is still identified in court records only as a La Jolla businessman who acted as a conduit for large campaign donations from the Foreign National.
According to a February 18 grand jury indictment charging Cortes, Singh and his company, ElectionMall Inc., “After directing the Straw Donor to write checks in favor of certain campaigns, the Foreign National would reimburse him.”
That indictment also describes a “war room” created by Singh, Cortes and another coconspirator within the campaign offices of an unidentified mayoral candidate, “for the purpose of making unreporterd inkind contributions financed by the Foreign National.”
The straw donor and candidates are not identified because they have not been charged as members of the conspiracy.
DEFENDANT Case Number: 14cr388MMAJose Susumo Azano Matsura
Age: 48 Coronado, CA SUMMARY OF CHARGESCount 1: Campaign Contribution by a Foreign National – Title 2, U.S.C., Sections 437g (d) (1) (A) (i) and 441e (A) (1).
INVESTIGATING AGENCIES
Maximum Penalties: Up to five years in prison and $250,000 fineFederal Bureau of Investigation
Internal Revenue Service
San Diego Police Department*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Medicine Bow Resident Convicted of Federal Firearms ViolationsRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that Medicine Bow resident Robert James Truby has been convicted in federal court. Truby was charged in a two count indictment with violations of 18 U.S.C. § 922(g)(1), felon in possession of a firearm, and 26 U.S.C. § 5861(d), possession of an unregistered firearm, that being a sawed off shot-gun with a barrel less than 18 inches. A jury found Truby guilty on both counts after a two-day jury trial in the U.S. District Court in Casper. Truby is scheduled to be sentenced by Federal District Court Judge Skavdahl on April 29, 2014.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, assisted by the Wyoming Highway Patrol, Albany County Sheriff’s Office, and the Wyoming Division of Criminal Investigation Crime Lab.
Massachusetts Man Admits Role in Robbery Spree of Southern New England PharmaciesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DALBERT RODRIGUEZ, 30, formerly of Holyoke, Mass., pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to his role in a robbery spree of pharmacies in Connecticut, Massachusetts and Rhode Island.
According to court documents and statements made in court, on November 13, 2013, RODRIGUEZ was arrested on a criminal complaint charging him with the armed robbery of a CVS store located at 972 Silver Lane in East Hartford. At approximately 9:00 p.m. on October 18, 2013. RODRIGUEZ entered the CVS, proceeded to the pharmacy counter, passed through a swinging door and approached the pharmacist who was behind the counter. RODRIGUEZ displayed a handgun to the pharmacist and instructed him to open the safe. RODRIGUEZ then removed numerous pill bottles from the safe, placed them in a plastic bag and exited the store.
In pleading guilty to one count of conspiracy to interfere with commerce through robbery, RODRIGUEZ admitted his role in the robbery of the East Hartford CVS. RODRIGUEZ also admitted to participating in 10 additional pharmacy robberies between June 2013 and November 2013, including robberies of a Rite Aid on Northampton Street in Holyoke, Mass., on June 19; a Rite Aid on Meadow Street in Chicopee, Mass., on June 30; a CVS on Longmeadow Street in Longmeadow, Mass., on July 13; a Rite Aid Pharmacy on Bridge Street in East Windsor, Conn., on August 8; a Walgreens on Deming Street in Manchester, Conn., on August 15; a CVS on Hazard Avenue in Enfield, Conn., on August 25; a Walgreens on the Berlin Turnpike in Newington, Conn., on September 10; a Rite Aid Pharmacy on East Street in Plainville, Conn., on September 27; a Walgreens on West Street in Cromwell, Conn., on October 4, and a Walgreens on North Main Street in Providence, R.I., on November 9.
Controlled substances, including oxycodone, were stolen during each of the robberies, and what appeared to be a firearm was displayed or possessed during several of the robberies.
RODRIGUEZ, who has been detained since his arrest, is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on May 16, 2014, at which time he faces a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration, the Massachusetts State Police, and the police departments in each town where the robberies occurred. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Maker of Erectile Dysfunction Products Admits to Misbranding and Selling Drugs as "All-Natural" Herbal SupplementsRead the Press Release
“Mojo Risen” And Other Pills Contained Pharmaceutical Compounds Smuggled From China
CHARLOTTE, N.C. – An Ashe County man pleaded guilty in federal court today to defrauding consumers of nearly $5 million by misbranding erectile dysfunction drugs and selling them as “all natural” herbal supplements, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
David W. Bourne, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, and Keith Fixel, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), join U.S. Attorney Tompkins in making today’s announcement.
Kamran Rezapour, 52, of Creston, N.C. pleaded guilty before U.S. Magistrate Judge David C. Keesler to one count of wire fraud and two counts of drug misbranding. At today’s plea hearing, Rezapour admitted that from 2009 through April 2013, he defrauded consumers of nearly $5 million, by fraudulently and falsely claiming that his erectile dysfunction products were “100 % safe and natural.” Rezapour admitted that his products, in fact, contained ingredients similar to prescription drugs such as Viagra, which require FDA approval to market and distribute. According to court documents, Rezapour was the owner and operator of Nutrition for Health, Inc. and Mojo Risen, LLC. Through these companies, Rezapour sold dietary supplements, male enhancement drugs and erectile dysfunction drugs, including Mojo Risen, Mojo Sensation and VajiVedic. Court documents indicate that Rezapour advertised Mojo Risen and the other erectile dysfunction pills as non-prescription, “all natural” herbal supplements. As part of his plea, Rezapour admitted that in order to induce consumers to purchase his Mojo Risen, Rezapour made multiple and repeated false claims that the sexual enhancement products were “100% safe and natural” and without “harsh and dangerous side effects.”
Rezapour admitted in court today that these claims were false. Court documents indicate that Mojo Risen, Mojo Sensation and VajiVedic contained pharmaceutical and prescription compounds, including sildenafil (the active ingredient in Viagra) and its chemical analogue noracetildinafil, which Rezapour smuggled into the United States from China. Rezapour did not list sildenafil, noracetildenafil or any another prescription ingredient in the packaging and advertising material for the supplements and did not provide any warnings about the possible adverse side effects of sildenafil and noracetildenafil. Court documents indicate that these products also did not bear the symbol “Rx only” on their labels, as is required for all prescription drugs.
According to court records, Rezapour and his Chinese supplier evaded detection of the pharmaceutical and prescription compounds by U.S. Customs authorities and the FDA by falsely labeling the packages as “paint products,” “care product[s]” and “gift[s].” Rezapour ultimately distributed his products nationwide, including to customers located in Charlotte, and received approximately $4,944,939 in payments for the fraud scheme.
During the course of the investigation, law enforcement agents seized approximately $1.5 million in funds, and gold and silver coins in connection with the fraud. Rezapour has agreed to forfeit all of these assets as part of his plea agreement in this case.
“Rezapour’s customers bought his mislabeled drugs as safe alternatives to prescription medications,” said U.S. Attorney Tompkins. “What’s particularly troubling is that Rezapour knew his products contained certain ingredients that could cause serious health consequences, yet he marketed and sold his supplements without appropriate warning labels. My office and our federal partners will prosecute those who profit from the reckless sale of misbranded drugs to unsuspecting consumers.”
“Protecting the American public from those utilizing the mail for illegal purposes is of primary concern to the Postal Inspection Service,” said Keith Fixel, Inspector in Charge of USPIS’s Charlotte Division. “Working with our law enforcement partners, we will vigorously pursue those who attempt to use the mail for unlawful gain and who prey upon unsuspecting consumers.”
At sentencing, Rezapour faces a maximum prison term of 20 years and a $250,000 fine for the wire fraud charge and a maximum prison term of three years and a $250,000 fine for each count of misbranding drugs. In his plea agreement, Rezapour has agreed to pay full restitution for any losses resulting from his criminal scheme. The final restitution amount will be determined by the Court at Rezapour’s sentencing hearing, which has not been scheduled yet. Rezapour has been detained since April 17, 2013.
The investigation into Rezapour was conducted by FDA-OCI and USPIS, with the assistance of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is handled by Assistant U.S. Attorney Kelli Ferry and Special Assistant U.S. Attorney Erin Comerford of the U.S. Attorney’s Office in Charlotte.
In June 2013, the FDA issued a warning against Mojo Risen, advising consumers not to purchase or to discontinue using this product immediately. The FDA also advised consumers who have experienced any negative side effects as a result of using this product to consult a health care professional as soon as possible. For more information please visit:
https://www.fda.gov/drugs/resourcesforyou/consumers/buyingusingmedicinesafely/medicationhealthfraud/ucm355904.htm.
Los Alamos Man Pleads Guilty to Bank Robbery and Fleeing from an Immigration CheckpointRead the Press Release
ALBUQUERQUE – Anthony P. Chavez, 32, of Los Alamos, N.M., entered a guilty plea to an indictment charging him with bank robbery and high speed flight from an immigration checkpoint. In entering his guilty plea, Chavez admitted robbing Wells Fargo Bank branch located at 5555 Montgomery Blvd. NE in Albuquerque, N.M., on June 29, 2013, and engaging in a high speed flight while trying to evade the Interstate 10 U.S. Border Patrol checkpoint near Deming, N.M., the following day.
Court records reflect the bank was robbed shortly after noon on June 29, 2013, by two men, one of whom approached the bank tellers with a demand note and the other who remained near the door as a lookout. The demand note claimed that there were two others involved in the robbery and that the robbers were armed. After the tellers complied with the robber’s demand for cash, the robber and his lookout fled from the bank.
Shortly before 6:00 a.m. on June 30, 2013, Chavez sought to evade the Interstate 10 U.S. Border Patrol checkpoint near Deming by driving his vehicle at speeds up to 110 miles per hour. Customs and Border Protection (CBP) agents and New Mexico State Police officers pursued and stopped Chavez’s vehicle after a ten minute pursuit and arrested Chavez for the felony offense of high speed flight from an immigration checkpoint. While being placed in a CBP vehicle, Chavez spontaneously stated that he had robbed a bank the day before. After viewing surveillance camera photographs of the bank robber who approached the tellers with the demand note, CBP agents determined that Chavez was one of the two individuals who robbed the Wells Fargo Bank branch in Albuquerque the day before.
Chavez has been in federal custody since his arrest and remains detained pending sentencing. At sentencing, Chavez faces a maximum sentence of 20 years in prison on each of the two charges to which he pleaded guilty.
This case was investigated by the Albuquerque office of the FBI, the Customs and Border Protection, U.S. Border Patrol El Paso Sector, and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney Charles L. Barth.
Local Woman Indicted on Fraud Related ChargesRead the Press Release
St. Louis, MO – JILLIAN NICHOLS, a local paralegal, was indicted on charges involving her attempt to defraud a law firm client by falsely representing that the prosecutor on the client’s criminal case had solicited a bribe. Nichols is also charged with lying to the FBI about her illegal conduct.
According to the indictment, Jillian Nichols worked for a local law firm, assisting one of the firm’s attorneys on his legal cases. She had no formal legal training and was paid hourly. While she was working at the firm, she worked on the defense of a state felony criminal case pending in St. Louis County Circuit Court against a firm client. As part of her duties, she worked closely with the client in investigating and helping prepare his defense, often meeting with him, as well as speaking with him on the telephone and texting, outside the presence of the defense attorney. Nichols left the defense attorney’s firm in September, 2013. After Nichols left the law firm, she continued to meet with the client and discuss his criminal case with him. There was an assistant prosecuting attorney in St. Louis County assigned to the client’s criminal case. The indictment states that between June and December 2013, Nichols engaged in a scheme to defraud the client by falsely telling him that the prosecutor had solicited a payment of $10,000 in order to give favorable consideration in his pending criminal case. She falsely represented that she had favorable evidence “planted” on the client’s cell phone in order to support his defense. She also allegedly falsely represented that she had paid the forensic expert hired by the defense attorney to analyze his cell phone so that the expert would validate and verify the “planted” evidence. On December 10, in response to Nichols’ false statements about the $10,000, the client agreed to give her an initial $5,000 in cash for her to pay the bribe to the prosecutor, and then an additional $5,000 after the prosecutor gave him favorable consideration in his pending criminal case. In order to conceal the scheme, she told the client not to tell his defense attorney of their discussions about purportedly bribing the prosecutor or planting evidence on his cellular phone.Finally, the indictment alleges that Nichols lied repeatedly to the FBI about her involvement in the scheme when interviewed as part of their investigation in December 2013.
Nichols, St. Louis, Missouri, was indicted by a federal grand jury on one felony count of wire fraud and one felony count of making false statements. She is expected to appear in federal court today.
If convicted, wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; making false statements carries 5 years and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation-Public Corruption Task Force, including officers of the St. Louis Metropolitan Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Local Tax Preparer ArrestedRead the Press Release
HOUSTON - Diane Caldwell Larry has been charged in a 21-count indictment alleging 19 counts of preparing false client tax returns and two counts of interfering with the enforcement of tax laws, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation.
“Those who might consider preparing false tax returns this filing season should be aware of the consequences of their actions,” said Cruz. “This indictment emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who attempt to defraud America's tax system. Taxpayers should also be very cautious when selecting someone to prepare their returns because ultimately they are responsible for what gets filed with the IRS.”
The indictment was returned Feb. 12, 2014, and unsealed yesterday upon her arrest. She is expected to make an initial appearance before U.S. Magistrate Judge George C. Hanks Jr. at 10:00 a.m. today.
According to the indictment, Larry operated a tax return preparation business in Houston under the name Paradise South Tax Services. She allegedly prepared dozens of materially false client tax returns during calendar years 2008 through 2011. The indictment also alleges she included in these tax return bogus “side business” losses and false and excessive itemized deductions and credits in order to generate excessive refunds totaling approximately $200,000. The indictment further alleges that when some of these tax returns were audited, Larry made up false documents to create an illusion of legitimacy for some of the false
and excessive itemized deductions.If convicted, Larry faces up to three years in federal prison and a possible $250,000 fine on each count.
The case, investigated by IRS-CI, is being prosecuted by Assistant United States Attorney Jimmy Sledge Jr.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lewiston Man Sentenced for Pharmacy RobberyRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Anthony W. Post, 19, of Lewiston, Maine, was sentenced today in U.S. District Court in Bangor
to two years in prison and three years of supervised release for robbing a pharmacy. He pleaded
guilty to that crime on March 12, 2013. He was also ordered to pay restitution in the amount of
$1,587.51.Court records reveal that on January 22, 2013, the defendant entered a CVS in Augusta
wearing sunglasses with a scarf across his face. He presented a note at the pharmacy counter that
demanded oxycodone, claimed he had a gun, and threatened to shoot if his demand was not met.
Candace Eaton and Stephanie McCormick were in a car waiting for Post. McCormick had
planned the robbery and authored the demand note. McCormick was sentenced in December
2013 by Chief U.S. District Judge John A. Woodcock, Jr. to three years and ten months in
prison, three years of supervised release, a fine of $1,000, and a restitution obligation. Eaton was
the getaway driver and she took a share of the stolen pills. She was sentenced in December 2013
to one and one half years of imprisonment and three years of supervised release for being an
accessory after the fact to the robbery of a pharmacy. She was also fined $5,000 and ordered to
pay restitution.
The investigation was conducted by the Federal Bureau of Investigation and the Augusta
Police Department.Lafayette Woman Pleads Guilty to Stealing More Than $500,000 from EmployerRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Bunnie Morris, 60, of Lafayette, entered a guilty plea Wednesday before U.S. Magistrate Judge C. Michael Hill, to defrauding more than a half million dollars from the Lafayette company where she worked.
According to evidence presented at the guilty plea, Morris was employed as a financial accountant/bookkeeper for Waste Auditors Inc. from 2001 to 2009. During that time, she forged signatures on numerous payroll, bonus, and expense account corporate checks processed through two banks totaling $579,050. Not only did she forge checks and expense account information, she negotiated and received unauthorized payments in the form of pay raises and bonuses. In order to disguise her actions, she voided all fraudulent checks that she had cashed or deposited, when in fact she negotiated and received benefits from those checks. Morris also was not a signatory on any corporate checking account and was required to obtain signatures from supervisors before executing a transaction.
Morris faces up to 30 years in prison, five years of supervised release, and a $1 million fine for one count of bank fraud. Sentencing is set for June 11, 2014.The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Justice Department Files Lawsuit to Stop Tennessee Man from Preparing Tax ReturnsRead the Press Release
The Department of Justice filed a civil lawsuit today in the federal court in Nashville, Tenn., to stop Gilberto Cortes and his business, Mundo Hispano Services, from preparing federal tax returns. According to the complaint, Cortes and his business have prepared more than 7,000 tax returns since 2010.
The complaint filed with the U.S. District Court in the Middle District of Tennessee alleges that Cortes understates his customers’ federal tax liabilities or generates larger than warranted refunds by improperly claiming the additional child tax credit on their income tax returns. According to the complaint, thousands of Cortes’ customers have improperly claimed the additional child tax credit. As a result, his customers have received, on average. over $2,300 in improper benefits per return. In total, the complaint alleges that Cortes’ activities over the last three years have potentially cost the U.S. Treasury $12.8 million or more in lost income tax revenue.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . 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 unscrupulous 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 at this website . 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. Gilberto Cortes, etc.
ComplaintJury Convicts Rochester Woman of Threatening to Kill the President and Lying to the United States Secret ServiceRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today Christine Wright-Darrisaw, 38, of Rochester, N.Y., was convicted of making a direct threat to kill the President of the United States, and for lying to United States Secret Service Agents investigating the case, following a jury trial before U. S. District Court Judge Frank P Geraci. Each charge carries a maximum sentence of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Craig R. Gestring and Grace M. Carducci, who handled the prosecution of the case, stated that the defendant threatened to kill President Barack Obama during a telephone call to the White House on February 24, 2012. The Government called the White House Operator who took the call as a witness in the one-day trial. The operator graphically described the “brutality” and the “violence” of the defendant’s words during her testimony. The Operator stated that she has answered thousands of calls while serving as an operator with the White House Comments Line, but that this call still stands out in her memory, almost two years later.
Secret Service Agents from Washington and Rochester were also called to testify by the Government about their investigation and how they were able to identify the defendant as a suspect. Agents in Rochester linked Wright-Darrisaw to the cellular telephone used to make the threat to kill the President, and conducted an interview with her. During that interview, the defendant made several false statements to the Secret Service which were material to and impacted their investigation.
The guilty verdict is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast.
Sentencing is scheduled for May 14, 2014 before Judge Geraci.