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Wednesday 19 February 2014
Washington-Based Medical Device Manufacturer to Pay up to $5.25 Million <br /> to Settle Allegations of Causing False Billing of Federal Health Care <br /> ProgramsRead the Press Release
Medical device manufacturer EndoGastric Solutions Inc. has agreed to pay the government up to $5.25 million to resolve allegations that it violated the False Claims Act by misleading health care providers about how to bill federal health care programs for a procedure using a device manufactured by the company and by paying kickbacks, the Justice Department announced today. EndoGastric Solutions is located in Redmond, Wash.
“Health care providers that cause the government to pay more than it should for medical devices not only cost us money as taxpayers, they raise the cost of health care for everyone,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Medical device manufacturers must deal fairly and honestly with federal health care programs if they want to participate in them.”
EndoGastric Solutions manufactures and sells a device called EsophyX that is intended to treat gastroesophageal reflux disease. The device was developed as an alternative to a more invasive procedure that requires incisions in the abdomen. The government alleged that EndoGastric Solutions knowingly caused health care providers to bill for the less invasive EsophyX procedure using codes applicable to the more invasive procedure, which provided for a higher level of reimbursement. As a result, federal health care programs allegedly paid more than they should have for the procedures using EsophyX.
The government also alleged that EndoGastric Solutions knowingly paid illegal remuneration to certain physicians for participating in patient seminars and co-marketing agreements to induce them to use EsophyX, in violation of the Federal Anti-Kickback Statute. The Anti-Kickback Statute prohibits offering or paying remuneration to induce referrals of items or services covered by federally funded health care programs. The statute is intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and are based solely on the best interests of patients.
“A medical device manufacturer violates the law when it advises physicians and hospitals to report the wrong codes to federal health insurance programs in order to increase reimbursement rates,” said U.S. Attorney for the District of Montana Michael W. Cotter. “Health care providers are required to bill federal health care programs truthfully for the work they perform.”
As part of the settlement, EndoGastric Solutions has agreed to enter into a Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General. The agreement provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
“Those seeking to maximize profits by encouraging others to bill government health care programs improperly should expect to pay a heavy price,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Law enforcement agencies will continue using all available tools to bring violators to justice.”
The civil settlement resolves a lawsuit filed in the U.S. District Court of Montana by Glenn Schmasow, a former employee of EndoGastric Solutions, under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the government for false claims and to obtain a portion of the government’s recovery. Schmasow will receive up to $945,000.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement with EndoGastric Solutions was the result of a coordinated effort among the U.S. Attorney’s Office for the District of Montana, the Department of Justice’s Civil Division, the U.S. Department of Health and Human Services Office of Inspector General, the Office of Personnel Management Office of Inspector General and the Office of Program Integrity of the Department of Defense’s Defense Health Agency.
The civil lawsuit is captioned United States ex rel. Glenn Schmasow v. EndoGastric Solutions Inc., Case No. 1:12-cv-00078 (D. Mont.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Union County, N.J., Man Admits Distributing Images of Chlld Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A Union County, N.J., man today admitted distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
John Ellenbacher, 48, of Linden, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of distributing images of child pornography over the Internet.
According to documents filed in this case and statements made in court:
Ellenbacher admitted that between August 15, 2012, and August 21, 2012, he distributed 90 images and 6 videos depicting child sexual abuse to others via email. As part of his guilty plea, Ellenbacher agreed to forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.
The distribution of child pornography count to which Ellenbacher pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a mandatory minimum prison sentence of five years, and a fine of $250,000. Sentencing is scheduled for July 8, 2014.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
14-053
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Ellenbacher Information
U.S. Attorney Goodwin, Corrections Commissioner Rubenstein Celebrate Donations for Foster ChildrenRead the Press Release
Correctional Industries Crafts Hundreds of Bags Uniquely Designed for West Virginia Foster Children
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin and West Virginia Division of Corrections Commissioner Jim Rubenstein today visited St. Mary’s Correctional Center, in St. Mary’s, West Virginia, to again celebrate the donation of hundreds of blankets, scarves and bags crafted by St. Mary’s and Lakin inmates to give to foster children. The bags, specifically designed to meet the needs of kids transitioning into the foster care system, allow for versatility and storage of a large volume of belongings. The donated items were presented to representatives from Mission West Virginia, a community service organization, in conjunction with the Carry On Campaign, which collects luggage, essential personal care items, and items of comfort for children who are in transition to the state’s foster care system. West Virginia currently has more than 4,000 children in the foster care system.
U.S. Attorney Booth Goodwin said, "No child should have to use a trash bag to transport their belongings. I am proud to partner with Mission West Virginia and the Division of Corrections to help give kids who are moving into foster care the essentials they need for that difficult transition.”
The Carry On Campaign began in October 2010 as a collaborative, multi-agency partnership that includes the U.S. Attorney’s Office for the Southern District of West Virginia, the West Virginia Department of Health and Human Resources, Mission West Virginia, Inc., the West Virginia Prosecuting Attorney’s Institute and the West Virginia Drug Endangered Children Task Force. Donated luggage bags and other essential items are provided to child protective service workers, law enforcement and advocates across the state to be given to children in transition to foster care. These children often have few or no personal belongings or comfort items, and no luggage. The program addresses the immediate needs of abused and neglected children and helps to minimize trauma during this difficult experience.
St. Mary’s Correctional Center, located on North Pleasants Highway in St. Mary’s, is a medium security correctional facility designed to house minimum to medium security level offenders and inmates deemed as geriatric or chronically ill. SMCC has a current capacity of 610 inmates.
Mission West Virginia sponsors programs that find families for children waiting in the foster care system. In addition to the Carry On Campaign, the agency also sponsors Sunday’s Child, a regular column featured weekly or monthly in newspapers throughout the state. This column spotlights children who are legally eligible to be adopted and are waiting for a loving, permanent family. The column provides a brief description of the child along with a photograph.
Click here to see photographs from the campaign.
Two More Conspirators Plead Guilty in Fraudulent Tax Refund SchemeRead the Press Release
Claimed False Income and Credits on Fraudulent Tax Returns for Persons Who Had Little or No Income
Baltimore, Maryland – Jasmine L. Thomas, age 26, of Baltimore, and Kiara A. Skipwith, age 24, of Parkville, Maryland, pleaded guilty today to a conspiracy to defraud the government arising from the filing of fraudulent tax refunds.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington D.C. Regional Office.“Criminal conspiracies involving fraudulent refund schemes are loathsome crimes that victimize our nation’s honest taxpayers,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s pleas are a reminder that IRS-CI will remain vigilant in our investigation of these schemes and will continue to work with prosecutors to combat this type of criminal conduct.”
According to their plea agreements, from February 2010 through April 2013, Skipwith, Thomas and their mother, Tonia Lawson, recruited individuals who did not owe taxes because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. The defendants paid a referral fee to those who brought recruits to them.
The defendants provided the recruits’ personal information to another conspirator who would prepare the fraudulent return. The recruits did not provide any income information. False wages, educational expenses and dependents were used to falsely claim tax credits. Once the tax refund was received, the defendants took a portion of the refund and paid the recruit a smaller amount.
Over the course of the scheme, Thomas conspired to file at least 15 fraudulent tax returns with a resulting loss to the government of $90,579; and Skipwith conspired to file at least 37 fraudulent tax returns with a resulting loss of $199,722.
Thomas and Skipwith face a maximum sentence of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense, whichever is greater. U.S. District Judge Richard D. Bennett scheduled sentencing for Thomas and Skipwith on May 20, 2014 and May 28, 2014, respectively.
Tonia Patrice Lawson, age 43, of Middle River, Maryland, previously pleaded guilty to conspiring to file 84 fraudulent tax refunds with a loss to the government of $546,785. Lawson is scheduled to be sentenced on March 27, 2014 at 4:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I. Sharfstein, who are prosecuting the case.
Two Charged with Sex Trafficking of MinorsRead the Press Release
BOSTON – In an indictment unsealed today, two Boston men have been charged in the U.S. District Court with the sex trafficking of minors.
Miriam Kizzie, also known as “Keys” and “Keyshawn,” 21, was charged with sex trafficking of minors and transportation of minors with intent to engage in criminal sexual activity.
Anthony Pledger, also known as “Polo,” “Polo B.” and “Jaden,” 26, was charged in the same indictment with sex trafficking of minors and transportation of minors with intent to engage in criminal sexual activity.
According to the indictment, in October 2013, Kizzie and Pledger conspired with each other to sex traffic two minors and to transport them between Massachusetts and Rhode Island with intent that they engage in prostitution. Kizzie and Pledger are also charged with aiding and abetting each other in sex trafficking the two minors and in actually transporting them between Massachusetts and Rhode Island with intent that they engage in prostitution.
Further, according to the indictment, in July 2013, Kizzie trafficked two other minors.
Pledger had been previously charged, first in state court and then by complaint in U.S. District Court, based on the incidents that occurred in October 2013. Pledger and Kizzie will be arraigned together on the indictment on Feb. 27, 2014.
If convicted, Kizzie and Pledger face minimum mandatory sentences of 15 years on the sex trafficking charges and 10 years on the transportation charges. They face maximum sentences of a lifetime in prison.
U.S. Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Custom’s Enforcement, Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans made the announcement today. The U.S. Attorney’s Office would like to thank the Suffolk County District Attorney’s Office, Plymouth County District Attorney’s Office, Middlesex District Attorney’s Office, Rhode Island Attorney General’s Office, Rhode Island State Police, Brookline Police Department, Brockton Police Department and Providence Police Department for providing assistance in this case.
The case is being prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and Timothy E. Moran of Ortiz’s Civil Rights Enforcement Team.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The details contained in the charges are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The aggressive enforcement of federal civil rights laws is a top priority of the U.S. Attorney’s Office for the District of Massachusetts. Since U.S. Attorney Ortiz created the Civil Rights Enforcement Team (CRET) in 2010, the Office has substantially increased its focus on civil and criminal civil rights enforcement. In the last two years, the office has charged multiple defendants with sex trafficking and other criminal civil rights violations.
Two Brooklyn Men Indicted in Lottery FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Corey Anthony Buddle, 22, of Brooklyn, New York, and his father, Horace Anthony Buddle, 44, of Brooklyn, New York, and Montego Bay, Jamaica, with conspiracy to commit mail fraud and wire fraud. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Assistant U.S. Attorney Paul J. Campana, who is handling the case, stated that according to the indictment, the defendants defrauded elderly individuals residing in the United States by leading the victims to believe they won cash prizes of more than $1,000,000 and, in at least one case, a Mercedes Benz automobile. The victims were told they must pay “taxes” and other administrative expenses in order to collect their “prizes.”
One victim, a man from the Rochester, N.Y. area, was told numerous times, in phone calls originating in Jamaica, to send packages of money to an address in Brooklyn. As a result, between May 20 and July 18, 2011, the victim sent a total of $130,000 in 16 packages via UPS and the U.S. Mail to the defendants’ residence at 536 Thatford Avenue in Brooklyn.
Another victim, a resident of Missouri, was directed to deposit money into Corey Buddle’s accounts at Bank of America. As a result, she made 26 deposits adding up to approximately $140,000 into Corey Buddle’s accounts from July 11, 2012, through April 4, 2013. The Indictment further alleges that, after April 4, 2013, the victim from Missouri was directed to send cash to 536 Thatford, which she did by sending more than $50,000 in 10 different packages sent via UPS and Federal Express. According to the indictment, some of the money deposited into Corey Buddle’s Bank of America accounts was withdrawn in Jamaica.
A third victim, who lives in Florida, lost $37,000 by wiring it into Corey Buddle’s bank accounts in nine separate transfers between August 2, 2012, and April 4, 2013. According to the indictment, the victim received a letter in April 2012 purporting to be from the FBI and the Department of Homeland Security, telling him he was $25,000 in arrears on his taxes.
None of the victims received anything as a result of their “winnings.”
The Indictment is the result of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector in Charge Kevin Niland of the Boston Division, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Trust Administrator Pleads Guilty to Embezzlement of over $1 MillionRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that Brian Lee of San Diego County pleaded guilty today to participating in a scheme he created to obtain over $1 million from accounts he had opened on behalf of any elderly couple. Lee entered his guilty plea to one count of wire fraud before Magistrate Judge Jan M. Adler, and is scheduled to appear before U.S. District Court Judge Barry Ted Moskowitz on May 16, 2014 for sentencing.
In approximately June 2004, a San Diego couple hired Lee to create trusts and corporations on their behalf, and to control bank accounts he opened in the name of the various entities. As Lee admitted in today’s hearing and in court documents, between 2004 and 2012, he made unauthorized transfers of the couple’s funds, through interstate transactions, into other bank accounts over which he had exclusive control. He systematically withdrew funds for his personal use from various accounts, including one opened as a trust for the couple’s grandchildren. In total, Lee siphoned over $1 million from the couple.
United States Attorney Duffy added, “In order to have confidence in the financial service professionals, all consumers – and especially our senior citizens – must be able to trust that their hardearned money is safe from those they hire to help administer their estates. With the continued diligence of our partners in the FBI, we will continue to investigate allegations of embezzlement in order to deter such unscrupulous practices.”
DEFENDANT Case Number: 14cr0385BTMBrian P. Lee
Age: 44 SUMMARY OF CHARGECount 1: Title 18, United States Code, Section 1343 (Wire Fraud) Maximum penalty: 20 years of custody; $250,000 Fine
AGENCYFederal Bureau of Investigation
Three Individuals Convicted of Sabotage at the Y-12 National Security Complex SentencedRead the Press Release
KNOXVILLE, Tenn.- On Feb.18, 2014, Michael Walli, Megan Rice, and Greg Boertje-Obed, were sentenced in U.S. District Court by the Honorable Thapar, U.S. District Judge. Sister Megan Rice was sentenced to serve 35 months in prison. Walli and Boertje-Obed were each sentenced to serve 62 months in prison. All three will serve three years supervised release upon their release from prison. Additionally, these individuals were ordered to pay $52,953 in restitution to the Department of Energy.
These individuals were convicted in May, 2013, of one count of injuring national defense premises, that is, the Y-12 National Security Complex, with the intent to interfere with the national defense of the United States, and another count of depredation against property of the United States.
On Jul. 28, 2012, in the middle of the night, the Walli, Rice and Boertje-Obed unlawfully intruded upon the Y-12 National Security Complex in Oak Ridge, Tenn. They used bolt cutters and cut through three highly-sensitive security fences and made their way to the Highly Enriched Uranium Materials Facility (HEUMF), which houses weapons-grade uranium. They splashed human blood and painted slogans on the exterior wall of the HEUMF.
Agencies participating in the investigation of these charges, which resulted in today’s sentences, included the U.S. Department of Energy - Office of Inspector General, and Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey E. Theodore represented the United States.
U.S. Attorney William C. Killian commended the sentences and said he hoped it would send a strong message. “The Y-12 National Security Complex plays a critical role in our country’s national defense. People cannot take the law into their own hands and unlawfully intrude upon sensitive government facilities. Those who violate the law and compromise the security of the Y-12 National Security Complex will be vigorously prosecuted.”
Task Force Investigating Homicides Announces Tip LineRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Federal and local law enforcement agencies have established a tip line as a way to encourage people to call with information on 15 homicides that have occurred in central Ohio between 1998 and 2013.
The tip line number is 614 849-1766.
“Information developed through an ongoing, year-long task force investigation suggests that the shootings may have some common threads,” U.S. Attorney Stewart said in announcing the tip line. “Callers can leave the information anonymously, but it would be most helpful if they leave their contact information so a member of the task force can reach out to them.”
U.S. Attorney Stewart commended the FBI, DEA, Columbus Police, Franklin County Sheriff Zach Scott and Franklin County Prosecutor Ron O’Brien for their cooperation, commitment of resources, diligence and determination.
“Our goal here is not just to solve these crimes. Our goal is to bring justice and relief for the victims’ families,” U.S. Attorney Stewart said.
St. Thomas Man Arrested and Charged for Failing to Register as Sex OffenderRead the Press Release
St. Thomas, USVI – Jevon O. Stridiron, 25, of St. Thomas was arrested yesterday by the United States Marshals Service after being indicted by a federal grand jury for failing to register as a sex offender announced United States Attorney Ronald W. Sharpe. Stridiron appeared in District Court in St. Thomas today before U.S. Magistrate Judge Ruth Miller for arraignment and was released on a $5,000 unsecured bond, and other conditions, after a not guilty plea. A trial date has been scheduled for April 7, 2014.
According to court documents, Stridiron was convicted in 2007 of a sex offense in Orange County, Florida. Under the Sex Offender Registration and Notification Act of 2006, a person convicted of a sex offense who travels in interstate commerce, is required to register with local authorities as a sex offender. The failure to do so is a crime under federal law. The indictment charging Stridiron alleges that he failed to register as a sex offender as required by the law when he traveled from Florida, changing his residence to the Virgin Islands.
If convicted of this offense, Stridiron faces up to 10 years in prison and fines of up to $250,000. The public is reminded that an indictment is only a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
St. Louis County Woman Pleads Guilty to Embezzlement ChargesRead the Press Release
St. Louis, MO – STACEY BROTHERTON, of St. Louis County, pled guilty to embezzling funds from two area schools between 2010 and 2013 today. She appeared before U.S. District Judge John A. Ross.
According to the plea agreement, while in the human resources department of Villa Duchesne and Oak Hill School, Brotherton manipulated payroll records to send extra paychecks and paychecks purportedly owed to former employees to bank accounts she controlled. After leaving that employment, Brotherton worked as a payroll consultant to another St. Louis area school and quickly tried to implement a similar scheme, again directing a phony paycheck to a substitute teacher to her own bank account. Shortly thereafter, her misconduct was discovered. In all, Brotherton embezzled approximately $30,000.
Brotherton faces up to 20 years imprisonment and/or a fine up to $250,000 on each count of mail fraud. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Sentencing has been set for May 22, 2014.
The case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
St. Croix Man Arrested for Failing to Register as Sex OffenderRead the Press Release
St. Thomas, USVI – Christopher Mitchell, 45, of St. Croix was arrested today by the United States Marshals Service after being indicted by a federal grand jury for failing to register as a sex offender announced United States Attorney Ronald W. Sharpe. Mitchell appeared today in United States District Court in St. Croix before U.S. Magistrate Judge George W. Cannon and was released on conditions.
According to court documents, Mitchell was convicted in 1998 of a sex offense under the Uniform Code of Military Justice. Under the Sex Offender Registration and Notification Act of 2006, a person convicted of a sex offense is required to register with local authorities as a sex offender. The failure to do so is a crime under federal law. The indictment charging Mitchell alleges that he failed to register as a sex offender as required by the law.
If convicted of this offense, Mitchell faces up to 10 years in prison and fines of up to $250,000. The public is reminded that an indictment is only a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
Richmond Woman Sentenced for Defrauding the U.S. Department of Veteran AffairsRead the Press Release
NORFOLK, Va. – Kimberly Gregory, 54, of Richmond, Va., was sentenced today to twenty months in prison, followed by three years of supervised release, for defrauding the U.S. Department of Veterans Affairs.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by Chief United States District Judge Rebecca Beach Smith.
Gregory pleaded guilty to the charge of making a false statement on November 19, 2013. According to court documents, Gregory defrauded the Veteran Affairs (VA) out of educational benefits. Gregory ran a beauty school in Richmond called Become New Beauty (BNB) and was certified by the VA to receive educational funds for veterans enrolled in its programs. Rose Simmons, who ran a beauty school called Advanced Cosmetology Institute (ACI) located in Chesapeake, was not certified by the VA to receive VA educational funds for veterans enrolled in that school. In order to tap into the veteran funds, Simmons and Gregory agreed to falsely submit claims to the VA for ACI students by falsely stating that they were attending BNB. In addition, they raised the tuition of BNB from approximately $5,000 to nearly $17,000. Gregory and Simmons caused a loss to the government in excess of $85,000. Simmons also pled guilty on November 14, 2013 and will be sentenced in April.
This case was investigated by the U.S. Department of Veteran Affairs, Office of Inspector General. Assistant United States Attorney Joseph Kosky prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Rehoboth Man Sentenced to Ten Years in Federal Prison for Methamphetamine Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – MacDavis Bahe, 31, an enrolled member of the Navajo Nation who resides in Rehoboth, N.M., was sentenced this morning to ten years in federal prison followed by three years of supervised release for his conviction on methamphetamine trafficking and firearms charges.
Bahe was indicted in June 2012, and charged with distributing methamphetamine and marijuana in McKinley County, N.M., between Feb. 2012 and May 2012. He also was charged with being a felon in possession of a firearm and possession of an unregistered firearm.
On Sept. 6, 2013, Bahe admitted that he distributed methamphetamine on Feb. 17, 2012, to an individual who, unbeknownst to him, was an undercover officer. Bahe also admitted that he unlawfully possessed a shotgun on May 1, 2012. Bahe acknowledged that he was prohibited from possessing firearms and ammunition because he previously had been convicted of the following f elony offenses in the 11th Judicial District Court for the State of New Mexico in McKinley County: burglary, aggravated fleeing from a law enforcement officer, and being a felon in possession of a firearm or destructive device.
The case was investigated by the Albuquerque office of the FBI, the Middle Rio Grande Valley Narcotics Task Force, the Gallup Police Department and the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
The Middle Rio Grande Valley Task Force is comprised of agents and officers from the Albuquerque Police Department, the Albuquerque office of the DEA, Pojoaque Tribal Police Department, Rio Rancho Police Department, Sandoval County Sheriff’s Office, and Valencia County Sheriff’s Office. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program that was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Registered Sex Offender Sentenced to over 37 Years on Child Exploitation ChargesRead the Press Release
A registered sex offender who attempted to entice a minor to engage in sexual activity was sentenced today to more than 37 years in federal prison.
Wayne Carlisle, age 38, of Oelwein, Iowa, received the sentence after a November 12, 2013, guilty plea to one count of attempted enticement of a minor and one count of committing a felony offense involving a minor by a person required to register as a sex offender. At the guilty plea, Carlisle admitted that, in 2012, he attempted to entice an undercover officer who was posing as a minor to meet for the purpose of unlawful sex with a minor. Carlisle was required to register as a sex offender based on his convictions for two counts of lascivious acts with a child in Linn County in 1996.
Carlisle was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Carlisle was sentenced to 447 months’ imprisonment. A special assessment of $200 was imposed, and Carlisle must also serve a life term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Hiawatha Police Department, the Iowa State Patrol, and the Oelwein Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-75.
Porter Man Sentenced to 210 Months in Prison for Marijuana ConspiracyRead the Press Release
TULSA, Okla. — A Porter man was sentenced for marijuana conspiracy on Tuesday, February 18, 2014, in U.S. District Court, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
Orlando Keane Jordan, a/k/a Rodeo, a/k/a Cowboy, 36, was sentenced to 210 months, 5 years supervised release, and a $100 special assessment by U.S. District Court Judge Claire V. Eagan for a marijuana conspiracy involving 1,000 kilograms or more. On October 18, 2013, Jordan pleaded guilty to a marijuana conspiracy which began in or about 2007 and continued through November 6, 2012.
The case was investigated by the Drug Enforcement Administration, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa Police Department, and the Wagoner Police Department. Assistant United States Attorney Janet S. Reincke prosecuted the case on behalf of the United States.
Pocatello Man Sentenced on Meth Distribution ChargeRead the Press Release
POCATELLO – Scottie Lee Hill, 35, of Pocatello, Idaho, was sentenced today in United States District Court for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. The defendant appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello. Judge Lodge sentenced Hill to 48 months in prison followed by four years of supervised release, and ordered him to complete 100 hours of community service. Hill pleaded guilty to the charge on September 30, 2013.
According to the plea agreement, on September 24, 2012, Hill went to a location in south Pocatello, in Bannock County, Idaho. Hill admitted that he went to this location in possession of methamphetamine, which he intended to distribute. Additionally, Hill possessed a firearm during this time period.
The case was investigated by the Idaho State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Pittsburgh Man Gets 5 Years in Prison for Dealing Heroin While on Supervised ReleaseRead the Press Release
PITTSBURGH – Ricco Sears of Pittsburgh, Pa., was sentenced for heroin trafficking while he was on federal supervised release following a prior conviction and sentence for heroin trafficking, United States Attorney David J. Hickton announced today.
Sears, 28, was sentenced by United States District Judge Nora Barry Fischer to serve 60 months in federal prison, consecutive to the 18-month prison sentence Sears recently received for violating his supervised release for his prior federal heroin trafficking conviction. Judge Fischer also ordered Sears to serve six years of supervised release following his release from prison and to forfeit the $20,910 in United States currency that was seized from Sears in August 2012.
In October 2013, Sears pled guilty to possessing heroin with intent to distribute it in August 2012 and to distributing heroin in April 2012. Sears was on federal supervised release during that time period.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York City Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the convictions and sentence in this case.
Overland Park Man Sentenced to 11 Years for $5 Million Fraud SchemeRead the Press Release
KANSAS CITY, KAN. An Overland Park man was sentenced Wednesday to 11 years in federal prison for swindling banks and investors out of more than $5 million, U.S. Attorney Barry Grissom said today. In addition, he was ordered to pay more than $5.7 million in restitution.
Ronald D. Catrell, Overland Park, Kan., pleaded guilty to one count of bank fraud, one count of aggravated identity theft, one count of money laundering and one count of wire fraud.In his plea, Catrell admitted devising a scheme in which he defrauded Kansas City area financial institutions including Valley View Bank, Bank of the West and Marshall & Ilsley Bank by providing them with false financial information in order to obtain lines of credit and loans.
He obtained a $1.3 million line of credit from Valley View Bank in Overland Park, Kan., by providing false information that he had more than $279,000 in an account at Metcalf Bank when in fact his balance there was less than $2,200. He also provided false tax returns and financial statements to the bank. He arranged for a person calling himself “Bill Campbell” to call a loan officer at Valley View Bank to claim that Catrell had more than $2.7 million invested with him. During the conversation, the caller said he was in an office overlooking New York City at 244 Fifth Avenue on the 18th floor, Suite 1882. In fact, Catrell had only a rented mail box at that address and the building was only four stories.
Catrell borrowed $750,000 from Bank of the West in Lee’s Summit, Mo., by giving the bank much of the same fraudulent information he gave Valley View Bank.
He obtained a $1 million line of credit from M&I Bank for his company, Software4Biz Consulting using fraudulent documents.
Catrell also co-founded a company called BlueValley Capital Management, LLP. Partners in the venture invested $50,000 to start the fund. When soliciting investors, Catrell made false statements overstating the annual return of the partners’ investments. When one of the co-founders requested an audit, Catrell provided a report with false information. He also falsely claimed to have the ability to purchase pre-initial public offering stock in Facebook. At the time, Facebook was not a publicly traded company.
Grissom commended the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.Nineteen People Indicted for Conspiracy Involving Heroin, Pills and Crack Cocaine in MarionRead the Press Release
Nineteen people were indicted in federal court for their roles in a conspiracy to traffic large amounts of heroin, crack cocaine and prescription pills in Marion, Ohio.
The unsealing of the 72-count indictment was announced today by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio; Ohio Attorney General Mike DeWine; Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, Marion Police Major William Collins, Marion County Sheriff Tim Bailey and Marion County Prosecutor Brent Yager.
The indictment details a two-year conspiracy in which heroin, crack cocaine, Percocet, Ritalin, Xanax and Vicodin were brought from Detroit and Fort Wayne, Indiana, to Marion, where the drugs were sold to dozens of people, including juveniles.
Indicted are: Allen Graves, 46, of Detroit; Martez Montgomery, 22, of Detroit; Terrance Lombard, 39, of Eastpoint, Mich.; Edward Hearn, 40, of Detroit; Darryl McFadden, 53, of Detroit; Jeronne White, 33, of Marion; Christopher Prince, 20, of Detroit; Danni Childers, 21, of Marion; DeCarlos Bates21, of Hamtramck, Mich.; DeVonta Adams21, of Detroit; Jason Graves, 22, of Detroit; Marniece Love, 22, of Hazel Park, Mich.; Brittany Payne, 19, of Marion; Marcus Benson, 34, of Harper Woods, Mich.; Greg Burkett, 56, of Marion; Darrell Jacobs, 38, of Caledonia, Ohio; Danielle Sullivan, 23, of Marion; Steven Lester, 48, of Marion, and Abbee Heine, 20, of Marion.
“Our state has been flooded with heroin and diverted prescription pills, which have been accompanied by a wave of death and addiction,” Dettelbach said. “These arrests represent a joint law-enforcement effort to choke off the supply of drugs to our region.”
Anthony said: “This interstate drug trafficking organization brought danger and violence to the community through multiple shootings, overdoses and continued addiction for citizens in Marion. The FBI along with the numerous agencies that brought this group to justice will continue collaborative efforts to disrupt, dismantle and prosecute drug traffickers.”
“MARMET’s battles with traffickers from Detroit have been well documented,” said Marion Police Major William Collins. “We want this to be an example for other trafficking organizations that if they choose Marion as the place to peddle their poison, they will do real prison time.”
“Drug abuse devastates lives and tears apart families, and the individuals who are now facing charges have played a direct role in fueling addiction,” said Attorney General DeWine. “We are proud to have assisted with this case through the work of our BCI crime lab, and we will continue to work together in the future to prevent drug abuse and trafficking in this state.”
Marion County Sheriff Tim Bailey said: “Drugs come into our community through many means and it takes and will continue to take resources from all agencies to continue the fight against the drug problem and other crimes in our community to help keep our residents and future residents of our community safe.”
Montgomery and Graves obtained heroin, crack cocaine and prescription drugs from Lombard, Hearn, Benson, McFadden and other suppliers in Detroit and Fort Wayne. They also recruited friends and family members in Detroit to travel to Marion to distribute the drugs, according to the indictment.Montgomery and Graves, with the assistance of Heine, rented homes in Heine’s name at 438 1/2 North Prospect Street and 323 Mound Street, in Marion, for the purpose of distributing heroin, crack cocaine and prescription drugs. Childers also rented the house at 238 Park Boulevard in Marion for the purpose of distributing the drugs, according to the indictment.
Lester, as part of the conspiracy, allowed Graves and Montgomery to register vehicles in his name to avoid suspicion of law enforcement. Lester also routinely drove Graves from Marion to Detroit and back to transport drugs and drug proceeds, according to the indictment.
Prince, White, Bates, Adams, Love, Jason Graves, a juvenile and others also shared a “community telephone” which they all used to communicate with drug customers and suppliers, according to the indictment.
Prince, White, Bates, Adams, Love, Jason Graves, Lester, a juvenile and others shared and used residences rented by Allen Graves, Montgomery, Heine and Childers for the purpose of storing and distributing heroin, crack cocaine and prescription drugs, according to the indictment.
The indictment goes on to detail scores of transactions, phone calls and other actions related to their sale and distribution of drugs.
This case is the result of an investigation by the Federal Bureau of Investigation – Cleveland, Detroit and Indianapolis Field Offices, the MARMET Drug Task Force (comprised of members of the Marion Police Department, and Marion County Sheriff’s Office), the METRICH Drug Task Force, the Ohio Attorney General’s Office, the Marion County Prosecutor’s Office, the Drug Enforcement Administration and the Ohio State Highway Patrol. It is being prosecuted by Assistant United States Attorneys Joseph M. Pinjuh and Alissa Sterling.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New Haven Man Pleads Guilty to Illegally Possessing Firearm and AmmunitionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEROME R. THOMAS, 21, of New Haven, pleaded guilty today before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport to possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on January 1, 2014, members of the Yale University Police Department executed an arrest warrant for THOMAS at his girlfriend’s residence. THOMAS was apprehended after he attempted to flee the premises through a window. A search of the residence revealed a .45 caliber semi-automatic pistol, two magazines loaded with .45 caliber ammunition, and a bag containing more than 80 additional rounds of .45 caliber ammunition.
THOMAS was previously convicted in state court of criminal possession of a firearm, possession of narcotics with intent to sell, and carrying a pistol without a permit. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
THOMAS is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on May 14, 2014, at which time he faces a maximum term of imprisonment of 10 years. He has been detained since his arrest.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Yale University Police Department. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
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[email protected]Monmouth County, N.J., Doctor Admits Stealing $1.1 MillionRead the Press Release
NEWARK, N.J. – A pain management doctor with a practice based in Red Bank, N.J., admitted today that he embezzled more than $1.1 million from a medical practice, U.S. Attorney Paul J. Fishman announced.
Robert Muscio, 40, a resident of Colts Neck, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of committing mail fraud to embezzle those monies.
According to documents filed in this case and statements made in court:
Between 2007 and 2008, Muscio misused his position as medical director of a practice – with which he is no longer associated – to write checks on the practice’s bank account to pay his personal expenses. To conceal this misconduct from his partners, Muscio falsely described the payments as business expenses of the practice.The mail fraud count to which Muscio pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 21, 2014.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell, and the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $520 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense counsel: Joseph J. Benedict Esq., New Brunswick, N.J.Muscio Information
Mexican National Sentenced for Trafficking Methamphetamine in East TexasRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 45-year-old Mexican national illegally residing in Marshall, Texas, was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Melicio Nunez-Duque, also known as La Burra, of Coyuca de Catalan, Guerrero, Mexico, pleaded guilty on Jan. 30, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 108 months in federal prison on Feb. 18, 2014, by U.S. District Judge Rodney Gilstrap. Nunez-Duque was also ordered to pay a money judgment in the amount of $20,000 to the United States as part of his sentence.
According to information presented in court, from July 2011 to October 2012, Nunez-Duque conspired with others to distribute methamphetamine in and around Marshall, Texas. Nunez-Duque admitted to distributing 15 grams of methamphetamine on July 27, 2011 and another 14 grams on Oct. 27, 2011 in Marshall, Texas. He also admitted to directing others to distribute methamphetamine on Aug. 4, 2011 and Aug. 24, 2011. He admitted the value of the methamphetamine distributed was at least $20,000. A federal grand jury returned an indictment on Oct. 3, 2012, charging Nunez-Duque and co-defendants, Julia Flores Saucedo and Oscar Diaz-Mendoz, with federal drug trafficking violations.
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This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department and the Harrison County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.Man Who Attempted to Buy Child for Sex Sentenced to Ten Years in PrisonRead the Press Release
ATLANTA – Carl Skow, who attempted to purchase a fourteen year old girl from an undercover federal agent, has been sentenced to ten years in federal prison for enticing a child to engage in illegal sexual activity.
“It is shocking that this defendant would endeavor to buy a young girl, imported from another country, as his personal sex slave,” said United States Attorney Yates. “Sex trafficking is a horrendous trade. Those who insist on preying on innocent people this way should expect jail in their future. We commend Homeland Security Investigations for its proactive work in identifying child predators and removing them from our community.”
“The defendant’s attempt to purchase an underage girl from Guatemala makes plain the fact that human trafficking is indeed a form of modern day slavery,” said Special Agent in Charge Brock D. Nicholson, who oversees Homeland Security Investigations operations in Georgia and the Carolinas. “Protecting children from these malicious predators is a top priority for my agency, and we will continue to work closely with the U.S. Attorney’s Office to identify them and bring them to justice.”
According to United States Attorney Yates, the criminal indictment, and information presented in court: In June 2011, an undercover federal agent responded to an ad posted by Skow on an online classifieds website in which Skow offered a younger girl money for sex. Between early June 2011 and July 6, 2011, Skow and the agent communicated several times through electronic mail, by telephone, and in person, regarding Skow’s interest in purchasing a minor female from Guatemala for sexual services. Skow agreed to pay the agent $2,500 for a year of her services and made a down payment of $1,250 for the minor. The agent and Skow agreed to meet at Hartsfield-Jackson International Airport on July 6, 2011, where Skow planned to pick up the minor female, and make the final $1,250 payment to the undercover agent. On that date at the agreed meeting location, Skow was arrested in possession of the final payment. Also on July 6, 2011, agents executed a search warrant on Skow’s home and found, among other items, a large collection of child pornography on his home computer. They additionally found posted on a wall a list of rules for the minor female to follow, including the rule that she have sex with Skow whenever he chose.
Skow, 37, of Norcross, Ga., was sentenced today by United States District Judge Charles A. Pannell, Jr. to ten years in prison to be followed by lifetime supervised release. He was also ordered to pay a $100 special assessment. The defendant will be required to register as a sex offender when he is released from prison.
This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement.
Assistant United States Attorney Jill E. Steinberg is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that United States District Judge John M. Gerrard sentenced Ramon Garcia, also known as, Jose Alionso Meza Lopez and also known as Victor Hugo Lopez, to 292 months in federal prison followed by 5 years of supervised release.
Mr. Garcia pled guilty to conspiracy to distribute methamphetamine on November 12, 2013. Garcia had been involved in the distribution of methamphetamine in the Lincoln and eastern Nebraska areas since 2009. He coordinated the transportation of large quantities of methamphetamine to Lincoln from Phoenix, Arizona. He then distributed the methamphetamine to other dealers in Nebraska. Garcia was responsible for 45 pounds of methamphetamine that were brought to and distributed in the Lincoln and eastern Nebraska areas between February and October 22, 2013. The Court found that Garcia was the supervisor and manager of the two couriers who drove Garcia’s vehicles between Phoenix and Lincoln, carrying methamphetamine and cash. They made approximately 19 round trips during 2013. His sentence was enhanced because he rented a residence and garage at 3718 J Street in Lincoln, which Garcia used exclusively to load, unload and hide cars used to transport drugs and cash. Garcia was arrested on October 22, 2013, as he was about to exchange a car containing $10,000.00 in cash for one which had just been driven from Phoenix which contained about 4 pounds of methamphetamine.
This case was investigated by the FBI and the Lincoln/Lancaster County Narcotics Task Force.
Louisville, Kentucky, Man Sentenced to 22 ½ Years for Producing Child PornographyRead the Press Release
– Sentencing resolved separate pending state court child sexual abuse case
LOUISVILLE, Ky. - A Louisville, Kentucky, man was sentenced to 22 ½ years today, by Senior United States District Judge Thomas B. Russell, for violating federal child pornography laws, namely, the production of child pornography, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jamar Garrett a/k/a Darnell Hamilton, age 35, admitted in court that during June through July, 2012, he represented himself as Darnell Hamilton and lived in Jefferson County, Kentucky. During that time period, he rented a room in a home (where a nine-year-old female child also lived). On July 1, 2012, Garrett engaged in sexually explicit conduct with the nine-year-old female child. He used his cellular telephone to record the sexual activity in the form of a video. Approximately one week later, an adult living in the home viewed the contents of the cellular telephone, confronted the child, and called the police to report the matter.
According to court records, Garrett fled the jurisdiction. However, Louisville Metro Police obtained a federal arrest warrant for Garrett, which was recorded in the Federal Bureau of Investigation’s National Crime Information Center (NCIC). Law enforcement officials arrested Garrett on the outstanding warrant when he was stopped for a traffic violation in Toledo, Ohio.
Under the terms of the Plea Agreement, which called for a 22½ year term of imprisonment followed by a life term of Supervised Release, Garrett also pleaded guilty in Jefferson Circuit Court to sexually abusing a six-year-old child. The Jefferson Circuit Court case involved a different victim than the federal case. The state court sentence will run concurrently with the federal sentence.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department’s Crimes Against Children Unit, in conjunction with the Federal Bureau of Investigation, conducted the investigation as part of Kentucky’s Internet Crimes Against Children Task Force.
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."
Lookout in Hobbs Act Robbery and Murder of Woonsocket Gas Station Manager Sentenced to 15 ½ Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Kelley M. Lajoie, 35, formerly of Springfield, Mass., was sentenced today in U.S. District Court in Providence to 188 months in federal prison for her role as lookout in the September 2010 armed robbery and murder of Woonsocket gas station manager David D. Main.
United States Attorney Peter F. Neronha, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office, Col. Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Chief Thomas S. Carey of the Woonsocket Police Department made the announcement.
According to court documents, on September 20, 2010, Main, 49, was chased, shot to death at close range and robbed by Jason Wayne Pleau, 36, of Providence, as he approached the doorstep of a Woonsocket bank where he was preparing to deposit more than $12,500 dollars in cash belonging to the gas station. Lajoie admitted to the court that she acted as a lookout and alerted Jason Pleau when Mr. Main left the gas station to travel to the bank.
According to information presented to the court, earlier on the morning of September 20, 2010, Pleau, Lajoie and a third co-defendant, Jose Santiago, the getaway driver, visited the gas station to identify Mr. Main and to identify his car. After making a dry run with Pleau, Lajoie drove Pleau to an area near the back of the bank and dropped him off. Meanwhile, Santiago waited in a nearby cul-de-sac in a white box truck to be used by Pleau and Santiago to flee after the robbery.
Lajoie admitted to the court that she waited in her car across the street from the Shell gas station for David Main to leave. When he did, Lajoie placed a call to Jason Pleau and followed Mr. Main to the bank. Lajoie later reunited with Pleau and Santiago at an apartment in Providence. Lajoie admitted to the court that she and Santiago shared in about half of the more than $12,500 dollars in cash taken from Mr. Main by Jason Pleau.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Lajoie to serve 5 years supervised release upon completion of her prison term. Lajoie pleaded guilty on December 9, 2011, to one count each of Hobbs Act conspiracy; aiding and abetting a Hobbs Act robbery; and use of a firearm during and in relation to a federal crime of violence.
Pleau, who pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using and discharging a firearm during and in relation to a federal crime of violence resulting in death was sentenced in October 2013 to serve life in federal prison.
Santiago, who pleaded guilty on Sept. 5, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death was sentenced on February 13, 2014, to 40 years in federal prison.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police and the FBI, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland of the District of Rhode Island and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division’s Capital Case Section.###
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]Leader of International Sex-Trafficking Ring Sentenced to Life in PrisonRead the Press Release
Operation Dark Night, the Largest Sex-Trafficking Organization Ever Prosecuted in the
Southern District of Georgia, Results in 23 Convictions and the Rescue of 12 VictimsSAVANNAH, GA – Joaquin Mendez-Hernandez, also known as “El Flaco,” 35, formerly of Mexico, was sentenced today by Senior U. S. District Court Judge B. Avant Edenfield to life in prison for his role in a sex-trafficking conspiracy that exploited dozens of women. The investigation into this conspiracy, dubbed Operation Dark Night, has resulted in the conviction of 23 defendants and the rescue of 12 victims.
United States Attorney Edward J. Tarver stated, “It is reprehensible that an international sex-trafficking organization set up shop within our very own communities. This organization destroyed the lives of many victims through fear, violence, and intimidation, all for the love of money. Those responsible will now pay the price in a federal prison.”
“While it is extremely satisfying to see these defendants held accountable for their atrocious crimes, the clear victory in this case was the rescue of their victims,” said Special Agent in Charge Brock D. Nicholson, who oversees Homeland Security Investigations in Georgia and the Carolinas. “From the testimony they provided in court, these women have begun to rebuild their lives and I applaud their bravery and courage in confronting their abusers and rejecting the roles they were forced into.”
According to evidence presented during numerous guilty plea and sentencing hearings, local and federal law enforcement agencies identified and dismantled an international sex trafficking enterprise that spread from Mexico to Savannah, Georgia. Members of the organization enticed women from Mexico, Nicaragua, and elsewhere to travel to the United States with false promises of the American Dream. Once inside the United States, the women were threatened and forced to commit acts of prostitution at numerous locations in Savannah and throughout the southeast. Women were forced to engage in sexual activity with as many as 50 people a day. To make sure the women complied, members of the organization threatened the women, used violence against them, and held children hostage in Mexico. Members of the organization would also trade their victims to other members who operated in other states, such as Florida and North and South Carolina.
Each of the 23 defendants arrested in Operation Dark Night have pled guilty and been sentenced. Two additional defendants, Eugenio Prieto-Hernandez and Daniel Ribon-Gonzalez, remain fugitives. A listing of the defendants and their sentences or fugitive status is attached.
Operation Dark Night represents the largest sex-trafficking investigation ever prosecuted in the Southern District of Georgia. The operation was conducted by U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from FBI, ATF, U. S. Customs and Border Protection (CBP), CBP Air and Marine Operations, IRS-Criminal Investigations, Coast Guard Investigative Services, Savannah-Chatham Metropolitan Police Department, Chatham County Sheriff’s Office, Garden City Police Department and Chatham County Counter Narcotics Team.
Twelve victims were rescued as a part of Operation Dark Night. HSI provides relief to victims of human trafficking by allowing for their continued presence in the United States during criminal proceedings. Victims may also qualify for a T visa, which is issued to victims of human trafficking who have complied with reasonable requests for assistance in investigations and prosecutions. Anyone who suspects instances of human trafficking is encouraged to call the HSI tip line at 1-866-DHS-2-ICE (866-347-2423) or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
Assistant United States Attorneys Tania Groover and Greg Gilluly prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547 or [email protected].13-14
OPERATION DARK NIGHT
DEFENDANTS
Eugenio Prieto-Hernandez – Fugitive
Joaquin Mendez-Hernandez (a/k/a “El Flaco”) – life in prison
Juan Carlos Pena – 240 months in prison
Luisa Capilla-Lancho – 60 months in prison
Jorge Lira-Xochicale – 66 months in prison
Mayer Sanchez-Calderon – 180 months in prison
Claudio Sanchez-Calderon – 180 months in prison
Omar Peralta-Rodriquez – 37 months in prison
Neurby Celenia Diaz – 72 months in prison
Antonio Ubaldo Mendez-Lopez – 46 months in prison
Cesar Aguilar-Rebollar – 21 months in prison
Sylvia Barrera – 27 months in prison
David Reyes – 18 months in prison
Antonio Ramirez-Catalan – 48 months in prison
Jose Ricardo Vazquez-Garcia – 36 months in prison
Daniel Ribon-Gonzalez – Fugitive
Marisol Ferreriras – 13 months in prison
Paresh Patel – 7 months in prison
Sergio Valazquez Martinez – 12 months in prison
Fernando Pelayo Silverio – 18 months in prison
Arturo Salquil-Gomez – 12 months in prison
Jose Hernandez Trujillo – 25 months in prison
Silvstre Aguilar Sayago – 27 months in prison
Rodolfo Hernandez Guiterrez – 23 months in prison
Alex Martinez Moncon – 22 months in prisonJersey Man Gets Probation for Using Fake AmEx to Buy Goods at Pittsburgh-area StoresRead the Press Release
PITTSBURGH - A resident of Oaklyn, New Jersey, has been sentenced in federal court to 18 months of probation on his conviction of access device fraud, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Raymond Hasaan Matthews, 37.
According to the information presented to the court, Matthews used a counterfeit American Express credit card in November 2011 at Casa D'Oro Jewelers to purchase two watches totaling approximately $15,605.00, as well as at other stores including Dicks Sporting Goods and Home Depot where he purchased additional merchandise.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Raymond Hasaan Matthews.
Investigation Results in Finding that Shooter Acted in Self-defenseRead the Press Release
BISMARCK- U.S. Attorney Timothy Purdon announced today that the U.S. Attorney’s Office, the Federal Bureau of Investigation and the Bureau of Indian Affairs have concluded the investigation into the shooting death of Joel Sherman in Belcourt, N.D., on Nov. 27, 2013. The investigation determined that homicide charges are not appropriate in this matter because the individual who shot Mr. Sherman acted in self-defense.
U.S. Attorney Purdon stated, “Federal law enforcement has concluded its investigation into the shooting death of Joel Sherman. Many, many hours and law enforcement resources were dedicated to this investigation in order to determine exactly what occurred and to ensure that no additional threat to the community existed. At the U.S. Attorney’s Office, we are committed, when appropriate, to communicating the results of investigations into serious incidents like this one to the communities we serve, whether criminal charges are filed or not, so that those communities can be assured that these incidents have been taken seriously and fully investigated by federal law enforcement and the U.S. Attorney’s Office.”
The investigation revealed that, throughout the day of Nov. 26, 2013, Joel Sherman had made several statements and threats to the effect that he had a gun and was going to kill a specific individual. The individual Mr. Sherman identified as being the person he was going to kill was made aware of Mr. Sherman’s statements and threats. In the early morning hours of Nov. 27, 2013, Mr. Sherman arrived armed with a pistol at a residence in Eagle View Housing on the Turtle Mountain Reservation, where the individual he had been threatening to shoot was located and confronted. The two men argued in the residence and then exited the residence and continued the argument. The evidence uncovered in the investigation, including bullet casing locations, bullet holes, and sworn statements from several witnesses present at the scene, establishes that Mr. Sherman first fired several rounds from his pistol at the other individual and that the individual then returned fire. The return fire hit Mr. Sherman, resulting in his death.Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on February 19, 2014:
Montrell Jolly, 24, of Gary, Indiana, was charged with being a felon in possession of a firearm.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Piljo Piljagic, 30, of Chicago, Illinois, was charged with being an illegal alien and aiding
non-citizens of the United States to fraudulently marry United States citizens for the purpose of evading provisions of the immigration laws which prohibit procuring naturalization of non-citizens through fraud. These charges were filed as the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Randall Stewart.
Michael Nash, 39, of Lake Station, Indiana, was charged in a superseding indictment with one count of conspiracy to defraud the government by submitting false claims for income tax refunds, four counts of submitting false claims for income tax refunds and three counts of aggravated identity theft.These charges were filed as the result of an investigation by the Internal Revenue Service Criminal Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Joshua Kolar.
Michael Radovick, 29, of Gary, Indiana, was charged in a superseding indictment with being a felon in possession of a firearm, being an unlawful user of a controlled substance in possession of a firearm, two counts of distribution of cocaine and committing these crimes while on pretrial release.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Illegal Alien Sentenced for Drug Trafficking Violations in Harrison CountyRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 42-year-old Mexican national illegally residing in Marshall, Texas, was sentenced to over 18 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Apolinar Carbajal Abelardo, of Guerrero, Mexico, pleaded guilty on Feb. 18, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 225 months in federal prison on Feb. 18, 2014, by U.S. District Judge Rodney Gilstrap. Abelardo also agreed to forfeit a truck, several firearms, $13,650 in U.S. currency and a money judgment in the amount of $20,000 to the United States as part of his sentence.
According to information presented in court, from November 2009 to October 2012, Abelardo conspired with others to manufacture and distribute methamphetamine and cocaine in East Texas. Abelardo admitted to distributing over 50 grams of methamphetamine and possessing a firearm during the conspiracy. A federal grand jury returned an indictment on Nov. 7, 2012, charging Abelardo with federal drug trafficking violations.
This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department and the Harrison County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.Hudson County, N.J., Man Sentenced to 10 Years in Prison for Coercing A Minor to Engage in Sexual ActivityRead the Press Release
NEWARK, N.J. – A Hudson County, N.J. man was sentenced today to 120 months in prison for using video chat programs to persuade a minor girl to engage in sexual conduct, U.S. Attorney Paul J. Fishman announced.
Paul R. Kleinman, 34, of Jersey City, N.J. and Verona, N.J., previously pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to an information charging him with coercing and enticing a minor to engage in sexual activity. U.S. District Judge Faith S. Hochberg imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Kleinman admitted that from September 2012 through October 2012, he communicated with a female minor through Skype and FaceTime applications on his tablet and computer. During these online communications, Kleinman instructed the minor to perform sexual acts on herself while he watched.
In addition to the prison term, Judge Hochberg sentenced Kleinman to seven years of supervised release.
U.S. Attorney Fishman credited special agents of the United States Department of Homeland Security, under the direction of Special Agent in Charge Andrew M. McLees, the Union County Prosecutor’s Office under the direction of Acting Prosecutor Grace Park, the Roselle Park Police Department under the direction of Chief Paul Morrison and the Royal Canadian Mounted Police under the direction of Commissioner Bob Paulson with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-051
Defense counsel: Anthony Macula Esq., Nutley, N.J.
Houston Lawyer Charged with Bankruptcy FraudRead the Press Release
HOUSTON – Calvin C. Braun, a local Houston attorney who handles bankruptcy cases, has been arrested on charges of bankruptcy fraud and filing false declarations in bankruptcy court, announced United States Attorney Kenneth Magidson.
Braun was charged in four-count indictment returned Feb. 12, 2014. He was taken into custody yesterday and made an initial appearance before U.S. Magistrate Judge George C. Hanks. He was permitted release upon posting bond and was further ordered to not to take on any new bankruptcy cases.
The indictment alleges Braun, 47, filed a bankruptcy case under Chapter 7 on behalf of a woman on May 31, 2010, who agreed to pay Braun $2,500 to represent her. She had allegedly been referred to Braun by her ex-husband who had previously utilized the Orlando & Braun law firm to represent him on matters related to various companies he owned. On Dec. 23, 2010, the man had retained Braun to file a Chapter 11 bankruptcy case in his behalf, according to allegations. The indictment further alleges the woman had been listed as a creditor in the documents filed in her ex-husband’s case.
Braun allegedly falsely filed a Disclosure of Compensation of Attorney on behalf of the woman in bankruptcy court in which he certified he had received his full fee of $2,500 prior to filing the disclosure statement on July 2, 2010. However, the indictment alleges he knew she had not paid the full amount owed when he filed the statement and he continued to collect money from her in the case.
Later, Braun also allegedly filed an Application to Employ with an attached affidavit seeking the bankruptcy court’s approval to represent the man in his Chapter 11 case. In that affidavit,Braun allegedly stated he had no conflict of interest in representing him nor represented any of his creditors. The woman filed an objection to that application. Braun later admitted in an amended affidavit that he did represent the woman in her Chapter 7 case, but again reiterated he did not represent any creditors of the male, according to the allegations. However, in truth and in fact according to the indictment, he was counsel of record for her and that she was listed as a creditor in the man’s Chapter 11 bankruptcy case.
Furthermore, on Nov. 30, 2010,Braun allegedly charged the woman an additional fee of $300 and promised to file a motion to re-open her bankruptcy case which had been closed due to Braun’s failure to file a critical document. Later, on Dec. 28, 2010, the woman paid an additional $1,258.91 for the balance owed Braun to re-open the case. He took the money in both instances, but never filed the motion to re-open the case, even though he was still her counsel of record, according to the allegations.
If convicted of the charges, Braun faces up to five years in federal prison and a possible $250,000 fine.
FBI investigated with the assistance of the United States Trustee’s Office. Assistant United States Attorney Quincy L. Ollison is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Henderson, Nev. Man Charged with Aiming Laser Pointer at Police HelicopterRead the Press Release
LAS VEGAS, Nev. - A Henderson, Nev. man has been indicted by the federal grand jury for aiming a laser pointer at a Las Vegas Metropolitan Police Department (LVMPD) helicopter on six occasions during January and February 2014, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
James David Zipf, 30, is charged with six counts of aiming a laser pointer at an aircraft on Jan. 30, Jan. 31, Feb. 3, Feb. 7, Feb. 8, and Feb. 12, 2014, and is scheduled to appear before United States Magistrate Judge Nancy J. Koppe, at 3:00 p.m. today for an initial appearance and arraignment and plea. If convicted, Zipf faces up to five years in prison and a fine of up to $250,000 on each count.
“Congress enacted a new federal statute in 2012 dealing with laser strikes, which makes it a felony to knowingly target an aircraft with a laser,” said U.S. Attorney Bogden. “We have partnered with our local, state and federal law enforcement agencies to catch individuals who are engaging in this dangerous behavior, which can disorient and temporarily blind a pilot. If you have information about a lasing incident or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.
Since the FBI and the Federal Aviation Administration (FAA) began tracking laser strikes in 2005, statistics reflect a more than 1,100 percent increase in the deliberate targeting of aircraft by people with handheld lasers. In 2013, there were a total of 3,960 laser strikes reported—an average of almost 11 incidents per day.
This case is being investigated by the FBI and LVMPD, and prosecuted by Assistant U.S. Attorney Roger Yang.The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Gulfport Woman Sentenced for Deepwater Horizon Oil Spill FraudRead the Press Release
Gulfport, Miss. – Kimberly Marie Isabell, 33, of Gulfport, was sentenced today by U. S. District Judge Sul Ozerden to three years on probation and six months home confinement with electronic monitoring for mail fraud in connection with the Deepwater Horizon Oil Spill, U.S. Attorney Gregory K. Davis announced. Isabell was also ordered to pay restitution in the amount of $17.000.00.
Isabell pled guilty on October 22, 2013 to knowingly devising and carrying out a scheme to defraud the Gulf Coast Claims Facility (the “GCCF”) which was established by BP Exploration and Production, Inc., to administer, process, and settle certain claims of individuals and businesses that had been impacted by the Deepwater Horizon Oil Spill. Isabell made false representations in her claim for damages by alleging that she lost earnings, profits and work hours from her job at Isabell Janitorial Services in Gulfport due to the Deepwater Horizon Oil Spill. As a result of her scheme, Isabell received a check from the Claims Facility totaling $12,000.
The case was investigated by the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Andrea Jones.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.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:
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Grand Jury Returns Indictment Charging Pair with Possession of Methamphetamine with Intent to DistributeRead the Press Release
More Than 16 Pounds Of Meth, 2.42 Pounds Of Heroin Found In CarSALT LAKE CITY - A federal grand jury returned an indictment Wednesday afternoon charging two individuals from the Los Angeles area with possession of methamphetamine with intent to distribute. Charged in the indictment are Miriam Machado, age 36, and Benito Urbina, age 33.
Machado and Urbina were arrested Feb. 9, 2014, following a traffic stop by the Utah Highway Patrol in Salt Lake County. A Unified Police Department K-9 officer responded to the traffic stop which resulted in a positive indication of illegal narcotics in the vehicle. Upon further investigation, officers discovered a hidden compartment filled with numerous bags of an unknown substance that field tested positive for methamphetamine and heroin. According to a complaint filed in the case, the total weight of the meth was 16.1 pounds and the approximate weight of the heroin was 2.42 pounds.
According to the complaint, during subsequent interviews, Machado and Urbina admitted transporting illegal contraband in the vehicle and being compensated for transporting the contraband from the Los Angeles area to Salt Lake City
Machado’s 5-year-old daughter, who was in the car when the traffic stop was executed, was turned over to Child Protective Services.
The potential maximum penalty for possession of methamphetamine with intent to distribute 500 grams or more is up to life in prison with a minimum mandatory sentence of 10 years. Machado and Urbina, who are in federal custody pending resolution of the case, are scheduled for an initial appearance on the indictment Thursday at 10:30 a.m. in U.S. Magistrate Judge Dustin Pead’s courtroom.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations special agents, the Utah Highway Patrol, and the Unified Police Department.
Government Intervenes in Lawsuit Against Tenet Healthcare Corp. and Georgia Hospital <br /> Owned by Health Management Associates Inc. Alleging Payment of KickbacksRead the Press Release
The government has intervened in a False Claims Act lawsuit against Tenet Healthcare Corp. (Tenet) and four of its hospitals in Georgia and South Carolina, as well as a hospital in Monroe, Ga., owned by Health Management Associates Inc. (HMA), alleging that the hospitals paid kickbacks to obstetric clinics serving primarily undocumented Hispanic women in return for referral of those patients for labor and delivery at the hospitals. The hospitals then billed the Medicaid programs in Georgia and South Carolina for the services provided to the referred patients and, in some instances, also obtained additional Medicare reimbursement based on the influx of low-income patients. Tenet and HMA are two of the largest owner/operators of hospitals in the United States. HMA was acquired by Community Health Systems last month. The government also is intervening against the clinics and related entities known as Hispanic Medical Management d/b/a Clinica de la Mama.
“The Department of Justice is committed to ensuring that health care providers who pay kickbacks in return for patient referrals are held accountable,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Schemes such as this one corrupt the health care system and take advantage of vulnerable patients.”
“My office has made the investigation of health care fraud a priority,” said U.S. Attorney for the Middle District of Georgia Michael J. Moore. “In a time when too many people were struggling to get health care for themselves and their children, Tenet and these hospitals plundered a system set up for those truly in need. This kind of scheme drives up costs for everyone, not just the vulnerable patients and groups like those targeted in this case.”
The lawsuit alleges that four Tenet hospitals, Atlanta Medical Center, North Fulton Regional Hospital, Spalding Regional Hospital and Hilton Head Hospital in South Carolina, and one HMA facility, Walton Regional Medical Center (since renamed Clearview Regional Medical Center), paid kickbacks to Hispanic Medical Management d/b/a Clinica de la Mama (Clinica) and related entities in return for Clinica’s agreement to send pregnant women to their facilities for deliveries paid for by Medicaid, in violation of the federal Medicare and Medicaid Anti-Kickback Statute. The kickbacks were disguised as payments for a variety of services allegedly provided by Clinica.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“Investigations such as these are a high priority for the FBI, and we are determined to hold accountable providers that enrich themselves at the expense of government programs and damage the public trust,” said FBI Assistant Director Ronald T. Hosko. “The FBI is dedicated to preventing and combating all forms of health care fraud; working with federal, state and local partners to effectively resolve allegations and engaging with the public to identify potential schemes.”
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The lawsuit is pending in the Middle District of Georgia .
The government’s intervention in this matter illustrates its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
These matters were investigated by the Commercial Litigation Branch of the Justice Department’s Civil Division, the Fraud Section of the department’s Criminal Division, the U.S. Attorney’s Offices for the Middle and Northern Districts of Georgia, the Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation and the Office of the Attorney General for the State of Georgia.
The case is captioned United States ex rel. Williams v. Health Mgmt. Assocs. Inc., Tenet Healthcare, et al., No. 3:09-CV-130 (M.D. Ga.).
The claims asserted against Tenet, the HMA facility and Clinica are allegations only, and there has been no determination of liability.
Georgia Court of Appeals Chief Judge Phipps Addresses United States Attorney's OfficesRead the Press Release
As part of their commemoration of Black History Month, the staff of the United States Attorney’s offices in Macon, Albany and Columbus enjoyed a presentation by Georgia Court of Appeals Chief Judge Herbert Phipps.Judge Phipps opened his presentation with a quote from Helen Keller, “The world is moved not only by the mighty shoves of the heroes, but also by the aggregate of the tiny pushes of each honest worker.” He then proceeded to relate stories about the unknown honest workers who toiled and sacrificed during the civil rights struggle in the South.
Judge Phipps spoke of watching trials during his teenage years in the state and federal courthouses. He related incidents where court security officers tried to keep him from entering the courthouse and the racial slurs and other abuses he witnessed of black defendants and witnesses.
While in college, Judge Phipps was active with the Student Nonviolent Coordinating Committee and the Southern Christian Leadership Conference during the civil rights movement. He told of an incident where he was working on voter registration in Albany, Georgia and was jailed for several days in a cell next to Dr. Martin Luther King. Judge Phipps’ only crime was being in a phone booth at night. He was never charged and was ultimately released. Dr. King shared the meals, brought to him by church ladies, with Judge Phipps.
Judge Phipps spoke of C.B. King, his former law partner. Today, the Federal Courthouse in Albany, Georgia is named for him although Mr. King was not allowed to go to law school in Georgia because he was black.
His final illustration of tiny shoves by honest workers was of an uneducated sharecropper and civil rights pioneer from Mississippi named Fannie Lou Hamer. She took the risk of many acts of civil disobedience during the 60’s and, when asked about the risk said, “If I fall, I will fall 5 feet 4 ½ inches forward in the journey for equal justice.”
“Black History Month is a time for us not only to reflect on the past; it is a time to remember and honor the many unsung heroes who literally risked everything in the pursuit of equal rights. As I listened to Judge Phipps, I was inspired by his courage and reminded that each of us, in our own way, is responsible for continuing the commitment to equal justice for everyone,” said United States Attorney Michael Moore.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Four Men Indicted for Armed Robbery of Armored Truck EmployeesRead the Press Release
Allegedly Stole Over $79,000 and Attempted to Murder a Witness Who Called 911
Greenbelt, Maryland - A federal grand jury indicted four defendants today on charges arising from the armed robbery of employees who were transporting money in an armored truck:
Antonio Lamar Cooper, age 27, of Washington, D.C.;
Juwan Armarni Watkins, age 21, of Washington, D.C.;
Maurice Lorenzo Foreman, age 22, of Oxon Hill, Maryland; and
Eugene Robert Watkins, age 22, of Washington, D.C.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the three count indictment and court documents, on January 15, 2014 the defendants stole a vehicle and drove it to a restaurant on Allentown Road in Morningside, Maryland. Outside the restaurant, two armored truck employees were transporting money from the restaurant. One of the defendants pointed a gun at an employee’s face, pushed her to the ground, placed his gun on the back of her head and took her gun. Another defendant pointed his gun at the second employee’s head and took his gun as well.
The indictment and court documents allege that the defendants robbed the employees of $74,106 in cash, $4,028 in checks, a scanner and a printer. During their escape into Washington D.C., the defendants allegedly shot at a witness to the robbery who called a 911 dispatcher and followed the defendants in a high speed chase to obtain the license number of their getaway vehicle. The defendants shot the driver’s side window of the witness’s car several times.
According to court documents, Prince George’s County Police officers pursued the defendants’ stolen vehicle into Washington, D.C. where the defendants got out of their vehicle and attempted to flee. With the assistance of a canine search initiated by Metropolitan Police officers, the defendants were subsequently arrested.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for interfering with interstate commerce by robbery; and life in prison for using a firearm during the robbery. All of the defendants but Foreman have had their initial appearances in U.S. District Court in Greenbelt and are detained. Foreman is in state custody.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.
Four in U.S. Attorney’s Office for Eastern District of California to Receive California Lawyer Magazine’s Attorney of the Year AwardsRead the Press Release
SACRAMENTO, Calif. — California Lawyer magazine has named four attorneys in the United States Attorney’s Office for the Eastern District of California to receive its California Lawyer Attorneys of the Year Awards, United States Attorney Benjamin B. Wagner announced. The attorneys being honored are: Assistant U.S. Attorney Colleen Kennedy; Kelli L. Taylor, who is Chief of the office’s Affirmative Civil Enforcement Unit; and David T. Shelledy, who is Chief of the office’s Civil Division; as well as the U.S. Attorney himself. The awards are presented each year to members of the California bar whose work has had significant impacts in the previous year.
California Lawyer identified as the basis for the awards the work of the U.S. Attorney’s office in investigating JPMorgan Chase over toxic mortgage debt, and in spearheading talks that led to a $13 billion fraud settlement last November with the bank. It was the largest settlement by the U.S. Department of Justice with a single entity in American history, and resolved federal and state civil claims arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities by JPMorgan, Bear Stearns and Washington Mutual prior to January 1, 2009. It required JPMorgan to pay $2 billion to the U.S. Department of Justice in connection with the allegations asserted by the U.S. Attorney’s Office, plus $7 billion total to five states and three federal agencies, and an additional $4 billion worth of relief to homeowners and to neighborhoods impacted by the financial crisis that began in 2008.
The U.S. Attorney’s Office investigation was conducted with assistance from special agents with the Federal Housing Finance Administration’s Office of Inspector General, and in conjunction with the Residential Mortgage-Backed Securities Working Group, a component of the Financial Fraud Enforcement Task Force. The Task Force was established by President Obama in 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. For more information on the task force, please visit www.StopFraud.gov.
Fort Kent Man Pleads Guilty to Stealing DrugsRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373
Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Roland
Roy, Jr., 51, of Fort Kent, Maine pled guilty today in United States District Court to stealing
Hydrocodone.According to court records, Roy was a pharmacy technician at Northern Maine Medical
Center (NMMC) when NMMC realized that a large quantity of Hydrocodone pills were missing
from its pharmacy. The investigation revealed that Roy ordered large quantities of Hydrocodone
pills and then stole more than $1,000 worth of them. Roy admitted to NMMC’s human
resources director that he had taken a majority of the missing pills.Roy faces up to 10 years in prison and a $250,000 fine, or both. He will be sentenced
after completion of a presentence investigation report by the United States Probation Office.The investigation was conducted by the Office of Inspector General of the U.S.
Department of Health and Human Services.Former Teacher Sentenced on Child Pornography ConvictionRead the Press Release
LAREDO, Texas – Jorge Valadez, 53, a former high school teacher in Laredo, has been handed a 52-month prison term for possessing child pornography on his computer, announced United States Attorney Kenneth Magidson. He pleaded guilty Nov. 13, 2013, to possessing four videos of child pornography between June 1, 2013, and Sept. 13, 2013.
Senior U.S. District Judge George Kazen handed down the sentence which will be followed by 10 years of supervised release. He will also be required to register as a sex offender.
Valadez was sharing his computer’s files on a peer-to-peer network. An investigator was able to download two complete and two partial videos tracked to Valadez for examination.
Federal authorities executed search and seizure warrants for Valdez his home, automobile, computers and electronic storage devices on Sept. 13, 2013. At that time, Valadez agreed to speak with the agents and admitted he had downloaded child pornography videos and images over the prior five years out of curiosity, adding that he was unsure of how many videos he had actually downloaded.
Agents located four videos containing child pornography on his computer. Valadez further admitted he had his computer “cleaned” shortly before the encounter with federal authorities.
Valadez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Webb County Sheriff’s Department and Homeland Security Investigations. Assistant United States Attorneys Jose Homero Ramirez and Sonah Lee prosecuted the case.
Former Shelby County Residents Guilty in Health Care Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A Center, Texas couple now living in Elgin, Texas, has pleaded guilty to federal violations in a health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
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Cathy Harvill, 57, and William Harvill, also known as Bill Harvill, 60, pleaded guilty to conspiracy to commit health care fraud on Feb. 18, 2014, before U.S. Magistrate Judge Keith Giblin..
According to information presented in court, the Harvills owned and operated North East Texas EMS. From January 2007 through March 2012, the defendants carried out a scheme to defraud Medicare and Medicaid by submitting false and fraudulent claims for nonemergency, scheduled, repetitive ambulance services which did not meet Medicare program coverage criteria.
The defendants each face up to 10 years in federal prison at sentencing. Sentencing dates have not been set.
This case is being investigated by the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the U.S. Department of Labor – employee Benefits Security Administration (DOL-EBSA). This case is being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Tom Gibson and Special Assistant U.S. Attorney Kenneth C. McGurk.Former Plymouth Police Officer Convicted of Using Excessive Force and LyingRead the Press Release
BOSTON - A former Plymouth police sergeant was convicted today of using excessive force on an arrestee and covering up his actions by falsifying police reports related to the incident.
After three hours of deliberation, a jury convicted Shawn Coughlin, 47, of deprivation of constitutional rights under color of law and falsifying a record to impede a federal investigation.
On Nov. 19, 2011, at the Plymouth police station, Coughlin assaulted an arrestee who was in a holding cell and handcuffed behind his back. Coughlin struck the arrestee in the head and kneed him in the body, resulting in bodily injury. Evidence at trial also established that Coughlin falsified the official police incident reports regarding the incident.
“A critical component of effective law enforcement is trust,” said US Attorney Carmen M. Ortiz. “Quality policing cannot exist if citizens can’t trust that the police who are sworn to protect them use excessive force and lie about their actions. It is very important to our entire system of justice that individuals who violate that trust are held accountable.”
“This investigation shows that the FBI, Plymouth Police and the United States Attorney’s Office places a high-priority on investigating civil rights violations including violations by those sworn to protect and serve. The FBI was proud to work with the Plymouth Police Department and the United States Attorney’s Office on this investigation to ensure that justice was served. Nothing justifies or excuses Mr. Couglin’s actions because it is never acceptable to break the law in order to enforce it,” said Vince Lisi, Special Agent in Charge of the FBI.
Sentencing is scheduled for May 20, 2014. Coughlin faces up to 10 years in prison to be followed by three years of supervised release and a $250,000 fine on the civil rights conviction. Coughlin faces up to 20 years in prison to be followed by three years of supervised release and a $250,000 fine on the obstruction conviction.
United States Attorney Ortiz and FBI Special Agent in Charge Lisa made the announcement today. The case is being prosecuted by S. Theodore Merritt and Kristina E. Barclay of Ortiz’s Civil Rights Enforcement Team.
Former Marlborough Resident Pleads Guilty to Robbing Five Connecticut PharmaciesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID HANEY, 52, of Marlborough, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to robbing five Connecticut pharmacies last year.
On November 22, 2013, HANEY was arrested on a criminal complaint charging him with the armed robbery of a CVS store located at 525 Buckland Road in South Windsor. At approximately 7:45 p.m. on September 25, 2013, HANEY entered the store and proceeded to the pharmacy counter. He then asked for the pharmacist by name, showed the pharmacist a firearm that was in his waistband and demanded oxycodone pills. The pharmacist gave HANEY more than 2000 oxycodone pills of different strengths and HANEY exited the store.
HANEY pleaded guilty today to one count of interference with commerce by robbery related to the South Windsor CVS robbery. In pleading guilty, HANEY also admitted that he committed similar robberies at a Walgreens on Deming Street in Manchester on September 15, 2013, a Walgreens on Main Street in Meriden on October 3, 2013, a CVS on Main Street in East Hartford on October 11, 2013, and a Walgreens on Talcottville Road in Vernon on November 9, 2013.
Judge Underhill has scheduled sentencing for May 14, 2014, at which time HANEY faces a maximum term of imprisonment of 20 years.
HANEY has been detained since his arrest.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration and the South Windsor, East Hartford, Meriden, Vernon, and Manchester Police Departments, with the assistance of other state and local law enforcement agencies. This 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]Former Exec Sentenced to 10 Years in Prison for Brokering $30M in Fraudulent Mortgage LoansRead the Press Release
PITTSBURGH - A resident of Finleyville, Pa., has been sentenced in federal court to ten years of imprisonment on his conviction of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on David McCloskey, 49.
According to information presented to the court, McCloskey operated a mortgage broker company called First Atlantic Financial that brokered more than $30 million worth of fraudulent loans. The loans were fraudulent because the loan applications contained false representations related to the borrowers’ income and assets, which were supported by bogus documents prepared by McCloskey and his co-conspirators. Fraudulent appraisals were also part of McCloskey's conspiracy. Most of the fraudulent appraisals were prepared by co-conspirator Kenneth Cowden, who was not licensed to prepared appraisals. His appraisals also drastically overstated the values of the properties serving as collateral for the loans.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of McCloskey.
The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Former Detroit Liquor Store Owner Sentenced for Tax Fraud and for Selling Cutting Agents to Drug DealersRead the Press Release
Bashar Saroki, a resident of Southfield, Mich., was sentenced today in the U.S. District Court for the Eastern District of Michigan to serve 30 months in prison to be followed by one year of supervised release, the Justice Department and the Internal Revenue Service (IRS) announced. Previously, Saroki pleaded guilty to filing a false 2009 tax return and offering drug paraphernalia for sale.
According to court documents, Saroki controlled and operated Golden Star Party Store, a liquor store that was located in Detroit. From 2007 through 2011, Saroki sold more than $1 million worth of a variety of cutting agents to local narcotics dealers out of Golden Star Party Store and from his residence. Narcotics dealers used these cutting agents to dilute the potency and increase the quantity of the narcotics they sold to customers. Saroki also filed a false tax return for 2009 that reported very little income despite the significant proceeds from the sale of cutting agents.
Assistant Attorney General Kathryn Keneally for the department's Tax Division commended the efforts of special agents of IRS-Criminal Investigation, who investigated this case, and Tax Division Trial Attorneys Kenneth C. Vert and Yael T. Epstein, who prosecuted the case.
Former Cook County Commissioner Moreno Sentenced to 11 Years in Prison for Series of Public Corruption SchemesRead the Press Release
CHICAGO — Former Cook County Commissioner JOSEPH MARIO MORENO was sentenced today to 11 years in federal prison for engaging in a series of public and personal corruption schemes over a span of three years. Moreno pleaded guilty on July 1, 2013, to conspiracy to commit extortion after he was initially charged in late June 2012, about 18 months after he left public office.
Moreno, 61, of Chicago, a lawyer who served more than 16 years as an elected county commissioner until December 2010, was sentenced to 132 months in prison, and he was ordered to forfeit $100,000 and pay a total of more than $138,000 in restitution by U.S. District Judge Gary Feinerman. Moreno was ordered to begin serving his sentence on April 21.
“Mr. Moreno was not a reluctant participant in these schemes; he was an eager participant,” Judge Feinerman said, adding that Moreno “embraced them with gusto and pursued them with vigor.”
Moreno “repeatedly pursued his own interests at the expense of those he was supposed to serve. . . . [H]e extorted a reputable business and corrupted the highest levels of Cook County government, the Town of Cicero, and a private hospital. He also evaded taxes and suborned perjury so he could reduce his child support obligations. And when he was confronted about his crimes, he obstructed justice by providing the government with false invoices in an effort to conceal his criminal conduct,” Assistant U.S. Attorneys Christopher J. Stetler and Megan C. Church wrote in a government sentencing memo.
Notably, they argued, Moreno conceived a motto of governing that captured his corrupt approach to public office: “I don’t want to be a hog. I just want to be a pig. Hogs get slaughtered. Pigs get fat.”
Moreno pleaded guilty to conspiracy to extort an un-named company that was awarded a contract to help improve Cook County Hospital’s revenue cycle into using his friend and codefendant, Ron Garcia, and his business, Chicago Medical Equipment & Supply, Inc., as a minority subcontractor in return for a $100,000 bribe. Garcia forgave a $100,000 mortgage loan to Moreno in exchange for Moreno’s efforts to steer the lucrative sub-contract to Garcia’s company, and Moreno tried to disguise the bribe by claiming that he had repaid the purported loan.
In pleading guilty, Moreno also agreed that he sought to obtain orders of Dermafill bandages from Cook County in return for kickbacks while he and his staffer, co-defendant and former Chicago Ald. Ambrosio Medrano, were Cook County officials; sought to obtain approval for a waste-transfer station in return for kickbacks while a Town of Cicero official; and evaded his federal income taxes between 2007 and 2010 by misreporting the income from his law office.
According to sentencing documents, between 2008 and 2010, Moreno engaged in those schemes, as well as five other schemes to:
- enrich himself through kickbacks in return for passing a “green” resolution while a Cook County Commissioner;
- obtain medical-transcription business from Cook County in return for kickbacks concealed as legal fees;
- obtain orders of Dermafill bandages from a private hospital by bribing a hospital official;
- enrich himself through kickbacks while a Town of Cicero official;
- reduce his child-support obligations by suborning perjury during a court hearing.
Medrano, 60, of Chicago, the former alderman who later worked on Moreno’s county staff, was sentenced last month to a total of 13 years in federal prison after pleading guilty in one case involving Moreno and being convicted at trial last year in a separate corruption case that stemmed from the same FBI undercover investigation.
Garcia, 54, of Homer Glen, and two other co-defendants, Gerald W. Lombardi, 61, of Darien, and his son, Jerry A. Lombardi, 34, of Downers Grove, who were agents of Chasing Lions, LLC, a disabled-veterans-owned business in Lisle that sold the Dermafill bandages, pleaded guilty to their roles in the scheme and are awaiting sentencing. A sixth co-defendant, Stanley Wozniak, 51, of Chicago, is awaiting the disposition of charges.
The Moreno sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division.
Former Attorney Pleads Guilty to Securities and Bank FraudRead the Press Release
ANNISTON -- A former Birmingham attorney pleaded guilty today in federal court to charges connected with a securities fraud scheme involving the fraudulent taking of more than $2.8 million dollars in investment funds, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Alabama Securities Commission Director Joseph Borg.CHRISTOPHER SHAWN LINTON, 34, of Alabaster, entered his plea before U.S. District Judge Virginia Emerson Hopkins to one count each of wire fraud, mail fraud, securities fraud and money laundering as part of the investment fraud scheme. He also pleaded guilty to one count of bank fraud arising out of the submission of a fraudulent commercial loan application to Iberia Bank for a loan of $908,650.
As part of his plea agreement, Linton is required to pay $2.5 million in restitution to the investors he defrauded, and to pay restitution to Iberia Bank in an amount that will be determined at sentencing. Sentencing is scheduled May 29.
"This Commission is proud to be able to combine our efforts and resources with those of the U.S. Attorney's Office, Northern District of Alabama, and the FBI, to achieve a just and strong conviction against Linton," Borg said. "Hopefully, this verdict will provide some relief to victims involved in this case who were defrauded out of their hard-earned dollars."
According to Linton's plea agreement, he conducted the securities fraud scheme as follows:
In 2007, Linton became an officer, partner and part owner of a business known as Integrity Capital Inc., by purchasing stock in the company. Integrity Capital Inc. was a factoring business located in the greater Birmingham area. Its business was to make advance payments to lawyers who had submitted payment vouchers for work performed for the State of Alabama. Integrity Capital would then receive the voucher payments from the state and keep a percentage as a fee.
In 2009, Linton formed Integrity Capital LLC. Beginning about August 2009, Linton recruited investment advisors to solicit investments in Integrity Capital LLC, in order to purchase the assets and capital stock of Integrity Capital Inc. Between September 2009 and December 2011, 12 individuals invested more than $2.8 million in Integrity Capital LLC. The investors mailed, wired or delivered money to Linton, who deposited the money into one of several bank accounts held by the law firm where he was a partner.
After receiving the investor funds, Linton fraudulently converted them for personal use by writing personal checks to himself and by using the funds for non-investment purposes. The non-investment purposes included, but were not limited to, the purchase of his personal residence, construction projects at the residence, private jet flights, vacations, recreational vehicles, furniture, luxury items, Auburn football tickets and a donation to the Heisman Trophy Trust.
Linton committed bank fraud in January 2012 when he submitted fraudulent personal financial statements to Iberia Bank and received two commercial loans totaling $908,650, according to his plea agreement. His financial statements inflated the value of his personal residence and falsely stated that he owned the residence and other real property.
The maximum penalty for wire fraud and for mail fraud is 20 years in prison and a $250,000 fine; the maximum penalty for money laundering is 10 years in prison and a $250,000 fine; and the maximum penalty for securities fraud is five years in prison and a $250,000 fine. The maximum penalty for bank fraud is 30 years in prison and a $1 million fine.
The FBI and Alabama Securities Commission investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting along with Assistant Attorney General Greg Biggs with the Alabama Securities Commission.