Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 30 January 2014
St. Francis Man Charged with False Statements and FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud.
Titus James Iron Shield, age 48, was indicted on January 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 23, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident that took place on April 30, 2013, when Iron Shield presented a forged prescription to a pharmacy to obtain Hydrocodone pills knowing the prescription was falsified.
The charges are merely an accusation and Iron Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of the Inspector General – Department of Health and Human Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Iron Shield was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
St. Charles Doctor Pleads Guilty to Medicare FraudRead the Press Release
St. Louis, MO - DR. KHALED HASSAN, St. Charles County, pled guilty to billing Medicare for "face to face" office visits performed on dates when he was actually traveling outside of the United States.
According to his plea agreement, Dr. Hassan dispensed prescription drugs to a large percentage of his patients, including the drugs Percocet®, Xanax®, Ativan®, Oxycontin® and Oxycodone®. Since some states and many health care programs limit controlled substance prescriptions to thirty-day supply amounts, his patients often had regular appointments with him roughly every thirty days to renew their prescriptions for these drugs. However, on some occasions, Dr. Hassan’s patient appointments conflicted with his travel schedule. On three occasions in March 2009, September 2009 and December 2011, Dr. Hassan traveled internationally, leaving his nurse to conduct a number of patient visits in his absence and provide his patients with assorted pre-signed prescriptions for controlled substances. During these same time frames, Dr. Hassan directed his office staff to bill Medicare for face-to-face office visits. Ultimately, the Drug Enforcement Administration received a number of complaints about Dr. Hassan’s prescribing practices, including a report from the Hazelwood Fire Department in February 2012, that a patient had overdosed and become unconscious in the parking lot of Dr. Hassan’s medical office in Florissant, Missouri. During a subsequent search of Dr. Hassan’s office, agents recovered a number of pre-signed prescriptions for several patients, as well as medical records for individual patients with unusual controlled substance prescribing patterns.
Dr. Hassan pled guilty to three felony counts of making false statements to the Medicare program before United States District Judge Catherine D. Perry. Sentencing has been set for April 23, 2014.
He now faces a maximum penalty of five years in prison and/or fines up to $250,000 per count. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration and the Office of Inspector General for the U.S. Department of Health and Human Services.
Sioux Falls Man Sentenced in Firearms CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Possession of a Stolen Firearm was sentenced on January 27, 2014, by U.S. District Judge Karen E. Schreier.
Andrei Kevin Russell, age 29, was sentenced to 92 months in prison, to be followed by 3 years of supervised release.Russell was indicted for being a felon in possession of a firearm and for possessing a stolen firearm by a federal grand jury on March 6, 2013. He pled guilty to the stolen firearm offense on November 1, 2013. The other charge was dismissed.
Russell came into contact with law enforcement at his residence in Hartford, South Dakota, on July 19, 2012. He gave officers permission to search his residence, where they discovered a Benelli 12-gauge semi-automatic shotgun in the garage. The shotgun had been stolen from a Sioux Falls residence.This case was investigated by the Sioux Falls Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Connie Larson prosecuted the case.
Russell was immediately turned over to the custody of the U.S. Marshals Service.
Serial Bank Robber Sentenced to 20 Years in PrisonRead the Press Release
ALEXANDRIA, Va. –Thomas B. Peeler, 47, of Washington, D.C., was sentenced today to 240 months in prison, followed by three years of supervised release, for the armed robberies of a BB&T bank in Alexandria and a GameStop store in Clementon, New Jersey. He was also ordered to pay $63,045.88 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Peeler pleaded guilty on November 7, 2014. According to court documents, within nine months of being released from a 10 year federal prison sentence for a prior bank robbery, Peeler committed two armed robberies in Alexandria and one armed robbery in Clementon, New Jersey. At sentencing, the court also noted that the defendant committed three additional robberies in New Jersey during this period of time.
As part of his plea agreement, the defendant admitted that he brandished a firearm and threatened to harm or kill employees during his robbery of BB&T bank on April 22, 2010. The defendant also admitted that he displayed a firearm during his robbery of GameStop on May 7, 2010. Peeler was ultimately connected to both robberies after two citizens observed Peeler walking to a getaway car outside the BB&T bank after the robbery and noted the vehicle’s license plate.
This case was investigated by the FBI’s Washington Field Office’s Violent Crimes Task Force with assistance from WFO's Evidence Response Team, the FBI Laboratory’s Forensic Audio Video Image Analysis Unit, and the FBI Laboratory’s Chemistry Unit. Special Assistant U.S. Attorney Robert J. Heberle and Assistant U.S. Attorney Rebeca H. Bellows prosecuted the case on behalf of the United States.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-288.
Sentencing for January 27 - 30, 2014Read the Press Release
David Michael Faust, 42, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on January 30, 2014, for attempted online solicitation of a minor. He received 120 months imprisonment, to be followed by ten years supervised release, and was ordered to pay a $1,100.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Paul D. Cardwell, 47, of Tipton, Indiana, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 27, 2014, for conspiracy to commit mail and wire fraud. Cardwell was arrested in Hua Hin, Thailand. He received 121 months imprisonment, to be followed by three years supervised release, and was ordered to pay restitution in the amount of $1,698,644.77 and a $100.00 special assessment. This case was investigated by the U.S. Internal Revenue Service Criminal Investigation Division and the U.S. Postal Inspection Service.
Christopher Shawn Seymour, 43, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 27, 2014, for one count of attempted online enticement of a minor and one count of carrying a firearm during and in relation to a crime or violence. Seymour was arrested in Cheyenne, Wyoming. He received 180 months imprisonment, to be followed by 15 years of supervised release, and was ordered to pay a $300.00 fine and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Amy Conway, 30, of Laramie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 27, 2014, for conspiracy to possess with intent to distribute, and to distributing 56 grams of methamphetamine. Conway was arrested in Laramie, Wyoming. She received 24 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Albany County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Santeria Follower Convicted of Federal Drug ChargesRead the Press Release
BROWNSVILLE, Texas - Francisco Javier Maya, 35, has been convicted of one count of conspiracy to possess and possession with intent to distribute approximately 1,000 pounds of marijuana, announced United States Attorney Kenneth Magidson. The verdict was returned less than an hour ago after two days of trial testimony and approximately six hours of deliberations.
The jury heard evidence that placed Maya in a conspiracy involving several marijuana loads each totaling between 300 and 1,000 pounds between the summer of 2012 and January 2013. His role in the drug trafficking organization was to provide tractor trailer drivers to drive marijuana loads to locations including Houston and Taylor, Texas. Maya would share in the profits of each load, making between $4000-$5000 per load.
On one occasion, he provided his wife’s bank account number in order for another conspirator to deposit the drug proceeds. Evidence was presented that $6,500 was deposited Maya’s wife’s account on Nov. 28, 2012, right after a successful 300 pound marijuana delivery to Taylor by the organization.
Two cooperating defendants testified at trial that Maya was a follower of the Santeria religion. The jury saw photos of Maya’s residence in Mission, Texas, which depicted numerous images of what was considered to be altars showing glasses of alcohol, knives, a machete, kettles, feathers and substances that appeared to be blood. Testimony also included descriptions of two rituals involving the sacrifice of animals.
In December 2012, Maya had a Santeria priest perform rituals with the organization to “bless” a 1,000 pound marijuana load that was destined for Houston. Tthe “priest’s” decision was for the marijuana load to remain in the Rio Grande Valley. The next day, a second ritual was performed and the 1,000 pounds of marijuana was to be transported to Houston. However, the marijuana was stolen by unknown individuals from the group that evening. After the theft, law enforcement was able to determine the events and conspirators surrounding the drug trafficking organization.
Other members of the organization, Jesus Maruicio Juarez aka Flaco or JJ, Ruben Gonzalez Cavazos aka Mume, Adolfo Loazano Luna aka Chofero, and Alberto Martinez aka Diablo, have already pleaded guilty and are set for sentencing Feb. 5, 2014.
U.S. District Judge Hilda G. Tagle, who presided over the trial, has set Maya’s sentencing for May 7, 2014, at which time he faces a mandatory minimum of five and up to 40 years in prison on each count of convictions. He will remain in custody pending that hearing.
The case was investigated by the Drug Enforcement Administration, FBI, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and Brownsville Police Department. Assistant United States Attorneys Angel Castro and Jody Young prosecuted the case.
San Juan Island Man who Falsely Tried to Collect Disability Benefits Found Guilty of Conspiracy, Mail Fraud & False StatementsRead the Press Release
The former owner of a San Juan Island coffee shop named “Criminal Coffee,” was found guilty today in U.S. District Court in Seattle of conspiracy, mail fraud and making false statements, announced U.S. Attorney Jenny A. Durkan. CORY MICHAEL EGLASH, 52, was found guilty following a four-day jury trial. The jury deliberated about two hours before convicting EGLASH of conspiracy to defraud the United States, four counts of mail fraud and making false statements to the government. EGLASH’s long-time girlfriend Ramona Hayes, 41, was also charged in the case. She pleaded guilty prior to trial. Sentencing for EGLASH is scheduled before U.S. District Judge Ricardo S. Martinez on April 28, 2014.
According to filings in the case and testimony at trial, both EGLASH and Hayes filed claims with the Social Security Administration stating they were disabled and unable to work. In addition to his own application, EGLASH made statements as verification for Hayes’s disability claim. Hayes’s application, filed in early 2011, claimed she was unable to deal with the public and could not venture outside. EGLASH’s application, filed in November 2011, stated that he was so disabled that he was “almost home-bound,” and could not work or play sports. The investigation by the Social Security Administration Office of Inspector General revealed that both EGLASH and Hayes worked at the coffee shop they owned, and that EGLASH also earned $17 an hour working at a public aquarium on San Juan Island. In fact, in the same week that he submitted his application saying he could not be physically active, he participated in two full-court pick-up basketball games at the community center. At trial, prosecutors showed videos of EGLASH and Hayes working at the ‘Criminal Coffee’ shop.
EGLASH’s application was never approved. Hayes wrongfully collected more than $42,000 before the fraud was detected.
Conspiracy to Defraud the United States is punishable by up to ten years in prison, mail fraud is punishable by up to 20 years in prison and making false statements to the government is punishable by up to five years in prison.
The case was investigated by the Social Security Office of Inspector General (SSA-OIG) and was prosecuted by Special Assistant United States Attorney Seth Wilkinson and Assistant United States Attorney Thomas Woods. Mr. Wilkinson prosecutes Social Security fraud cases in federal court as part of a partnership between the United States Attorney’s Office and the Social Security Administration Office of the General Counsel.Sales Broker Sentenced in Manhattan Federal Court to 18 Months in Prison for Fraudulent Mark-Up SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced that MAREK LESZCZYNSKI, a former sales broker, was sentenced in Manhattan federal court to 18 months in prison on charges of conspiracy to commit securities fraud and wire fraud. LESZCZYNSKI – along with Benjamin Chouchane and Henry Condron – defrauded clients out of millions of dollars by misrepresenting the prices at which securities were bought and sold. In doing so, the brokerage firm for which they worked earned illegitimate and illegal trading profits, and LESZCZYNSKI, Chouchane, and Condron were awarded lucrative bonuses. LESZCZYNSKI pled guilty to charges of conspiracy to commit securities fraud and wire fraud in August 2013, and was sentenced today by U.S. District Judge John F. Keenan.
Manhattan U.S. Attorney Preet Bharara said: “Marek Leszczynski blatantly defrauded his firm’s clients by providing them with distorted prices for trade executions in order to inflate firm profits and help procure himself and his cohorts hefty bonuses. With today’s sentence, he has learned that prison time is one’s reward for engaging in such illicit conduct.”
According to the Complaint, Indictment, statements made during LESZCZYNSKI’s guilty plea, and other court documents:
From 2005 through November 2010, LESZCZYNSKI, Chouchane, and Condron worked at a broker-dealer that was headquartered in London, England, with offices in major cities in Europe, Asia, and the United States (“Broker-Dealer 1”). Among other services offered, Broker-Dealer 1 bought and sold securities on behalf of institutional clients, such as commercial banks and investment firms located throughout the United States and in various European cities.
LESZCZYNSKI and Chouchane worked as sales brokers for Broker-Dealer 1’s Cash Equity Desk in New York, New York. In that capacity, they were responsible for receiving orders to buy or sell securities from Broker-Dealer 1’s clients, relaying those orders to traders who executed the trades, communicating with clients as their orders were being filled, and sending trading confirmations to the clients that showed the prices at which securities were bought or sold – including any commissions that Broker-Dealer 1 charged. Condron worked as an execution trader and a middle office manager. In that capacity, Condron was responsible for executing buy and sell orders at the instructions of sales brokers, such as LESZCZYNSKI and Chouchane, and inputting trading data into Broker-Dealer 1’s bookkeeping system.
From 2005 until December 2008, LESZCZYNSKI, Chouchane, and Condron misrepresented the execution prices at which securities were bought and sold. For example, when Broker-Dealer 1 received a buy order from a client, the defendants and their co-conspirators caused the purchase price of the security that would be reported back to the client to be “marked up” from its actual purchase price. Conversely, when Broker-Dealer 1 received a sell order from a client, the defendants and their co-conspirators caused the sale price of the security that would be reported back to the client to be “marked down” from its actual sale price. The difference between the actual execution prices and the false prices reported to clients was hidden from Broker-Dealer 1’s clients, enabling Broker-Dealer 1 to earn millions in trading profits to which it was not entitled. As a result of the fraudulent scheme, LESZCZYNSKI, Chouchane, and Condron were paid inflated bonuses.
In addition to the prison term, Judge Keenan sentenced LESZCZYNSKI, 44, of Miami, Florida, to two years of supervised release. LESZCZYNSKI was also ordered to forfeit $1.5 million, to make restitution in the amount of $1.5 million, and to pay a $100 special assessment fee.
Chouchane, 39, of Miami, Florida, who previously pled guilty to one count of conspiracy to commit securities fraud and wire fraud, was sentenced on November 15, 2013, by Judge Keenan to two years in prison and two years of supervised release, and was ordered to forfeit $5 million and to make restitution in the amount of $5 million. Condron, 34, of New York, New York, who previously pled guilty to one count of securities fraud and two counts of conspiracy to commit securities fraud, is scheduled to be sentenced on February 5, 2014, by U.S. District Judge Naomi Reice Buchwald.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Benjamin Naftalis is in charge of the prosecution.
Repeat Offender Sentenced to 8 Year Prison Term for Illegally Possessing Assault WeaponsRead the Press Release
A Mason County resident with multiple prior felony convictions was sentenced today in the U.S. District Court in Seattle to eight years in prison and three years of supervised release for being a felon in possession of a firearm, announced U.S. Attorney Jenny A. Durkan. JOHN CHRISTIAN PARKS, 38, of Belfair, Washington was arrested on March 30, 2013 while target shooting in the Mt. Baker-Snoqualmie National Forest. U.S. Forest Service officers heard multiple shots and were directed to the group by a witness who said he had encountered the armed men. Law enforcement recovered eight firearms, including four assault rifles. Evidence introduced at trial revealed PARKS had illegally purchased and possessed two of the assault rifles. PARKS was convicted October 31, 2013. At sentencing, U.S. District Judge Thomas S. Zilly said this case “illustrates how easy it is for anyone to buy firearms online or on the street.”
According to records and testimony at trial, PARKS used a false identity to purchase one of the assault rifles over the internet from a seller in Virginia. Two more high powered guns were purchased locally with witnesses identifying PARKS as the purchaser. PARKS is prohibited from possessing firearms as a result of eight prior felony convictions, including convictions for: drug possession in Grant County in 2001, Jefferson County in 2001, and King County in 2001 and 2004; drug manufacturing and distribution in Clallam County in 1998 and Pierce County in 2005; and escape in King County in 2004.
In asking for the maximum ten year sentence, prosecutors wrote “The combination of his drug dealing convictions (whether or not accompanied by drug use), his clear and deliberate attempts to conceal his identity as the purchaser of the charged weapons, and the nature of the firearms themselves (assault rifles capable of accepting extended magazines) demonstrate that Parks has no intention of complying with the law and will likely continue to obtain firearms upon release from incarceration.”
The case was investigated by the U.S. Forest Service and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case was prosecuted by Special Assistant United States Attorneys Stephen Hobbs and Seth Wilkinson. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.
Rapid City Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on January 27, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Murphy was immediately turned over to the custody of the U.S. Marshals Service.
Eric Murphy, age 28, was sentenced to 10 years of imprisonment, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Murphy will also be required to register as a sex offender.
On August 3, 2013, as part of a sex-trafficking undercover operation during the Sturgis Bike Rally, Murphy was arrested for attempting to obtain sex with a 12-year old girl. Murphy responded to a law enforcement-generated Internet advertisement which advertised sex with a fictitious 12 or 13 year-old girl and negotiated the terms of the sexual encounter. Murphy then met with an undercover agent posing as the pimp who could provide the young girl, and he was subsequently arrested.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce, the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, the Pennington County Sheriff’s Office, and the Meade County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Rapid City Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on January 27, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Murphy was immediately turned over to the custody of the U.S. Marshals Service.
Eric Murphy, age 28, was sentenced to 10 years of imprisonment, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Murphy will also be required to register as a sex offender.
On August 3, 2013, as part of a sex-trafficking undercover operation during the Sturgis Bike Rally, Murphy was arrested for attempting to obtain sex with a 12-year old girl. Murphy responded to a law enforcement-generated Internet advertisement which advertised sex with a fictitious 12 or 13 year-old girl and negotiated the terms of the sexual encounter. Murphy then met with an undercover agent posing as the pimp who could provide the young girl, and he was subsequently arrested.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce, the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, the Pennington County Sheriff’s Office, and the Meade County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Plummer Man Sentenced for Theft of Tribal PropertyRead the Press Release
COEUR D’ALENE — Larry James Wolfe, 34, of Plummer, Idaho, was sentenced today for theft from a tribal organization, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge ordered Wolfe to serve three years of probation, pay $1,387 in restitution, and perform 80 hours of community service.
According to court documents, on October 20, 2012, Wolfe drove into the Coeur d’Alene Tribal Facilities storage area and stole four tires and four rims valued at approximately $1,300. Wolfe did not have permission to take the property, which belonged to an Indian Tribal Organization.
The case was investigated by Coeur d’Alene Tribal Police and the Federal Bureau of Investigation.
Plummer Man Admits to Aggravated AssaultRead the Press Release
COEUR D’ALENE — Joseph L. James, 30, of Plummer, Idaho, pleaded guilty today in federal court to assault resulting in serious bodily injury, U.S. Attorney Wendy J. Olson announced. James was indicted by a federal grand jury in Coeur d’Alene on November 20, 2013.
According to the plea agreement, James admitted that on April 12, 2013, he hit his then-girlfriend in the face and broke her nose. The case was prosecuted federally because James and the victim are both enrolled members of a federally recognized Indian tribe, and the offense occurred on the Coeur d’Alene reservation.
The charge of assault resulting in serious bodily injury is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
James is scheduled to be sentenced on April 29, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
This case was jointly investigated by Coeur D’Alene Tribal Police and the Federal Bureau of Investigation.
Plant City Woman Sentenced to Prison for Tax FraudRead the Press Release
Tampa, Florida - U.S. District Judge Susan C. Bucklew today sentenced Jennifer Meier Hunt to 2 years and 6 months in federal prison for committing stolen identity refund fraud. As part of her sentence, the court also entered a forfeiture money judgment in the amount of $97,238.00, representing the proceeds of the tax fraud.
Hunt pleaded guilty to one count of theft of government property and one count of aggravated identity theft on June 25, 2013.
According to court documents, in April 2011, a confidential informant told agents from the Federal Bureau of Investigation (FBI) that certain employees of a Tampa based professional staffing company were filing fraudulent income tax returns using TurboTax.com. Three individuals involved in the conspiracy were then identified by agents, supervisors of the staffing company, and Turbo Tax. On May 19, 2011, federal search warrants were executed at the residences of these three individuals. The investigation subsequently revealed that between February 2, 2011, and May 2, 2011, Hunt used stolen identities to electronically file 75 fraudulent federal income tax returns in order to obtain refunds to which she was not entitled. The value of the refunds that would have resulted from the filed returns totaled approximately $187,687. Although some of the returns were rejected by the Internal Revenue Service, 47 of the fraudulent returns were accepted, resulting in the issuance of $97,238 in tax refunds to debit cards under the control of Hunt. None of the victims of the fraudulently-filed tax returns, which included a number of deceased individuals, had authorized Hunt to open or use a debit card in their name. Neither had anyone authorized the conspirators to file a tax return on his or her behalf.
This case was investigated by the FBI and the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney and Senior Litigation Counsel Donald L. Hansen.
Physician Practicing in Grass Valley and Yuba City Indicted for Illegal Prescription PracticeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Nicholas J. Capos Jr., 63, of Granite Bay, charging him with one count of conspiracy to distribute, dispense, and possess with intent to distribute oxycodone, and five counts of illegal distribution and dispensation of oxycodone, United States Attorney Benjamin B. Wagner announced.
According to court documents, Capos participated in a conspiracy to distribute the drug oxycodone. He is also charged with the distribution and dispensation of oxycodone outside the usual course of professional medical practice and without legitimate medical purposes. The indictment alleges that he illegally dispensed 1,590 30-milligram oxycodone pills in the summer of 2012.
U.S. Attorney Wagner said: “The misuse of oxycodone and other prescription painkillers is responsible for thousands of deaths every year. In this case, the government alleges that a licensed physician dispensed these powerful and deadly painkillers without a legitimate medical purpose. The law provides a consequence for persons who prescribe narcotics outside the scope of legitimate medicine.”
Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick stated: “Physicians who prescribe powerful prescription drugs without a legitimate medical purpose and outside the usual course of professional practice are not acting as doctors nor are they acting in the best interest of the public. DEA will aggressively pursue those who put the health and safety of the public at risk and contribute to the epidemic of prescription drug abuse.”
This case is the product of an investigation by the DEA, the California Medical Board, and the California Attorney General’s Bureau of Medi-Cal Fraud and Elder Abuse. Assistant United States Attorney Paul Hemesath is prosecuting the case.
If convicted, Capos faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Parmelee Man Charged with Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Failure to Appear.
Adam Poor Bear, age 24, was indicted on December 10, 2013. He appeared before U.S. Magistrate Mark A. Moreno on January 21, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 2 years in custody and/or a $250,000 fine, 1 year of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On December 2, 2013, Poor Bear, having been charged with Assault with a Dangerous Weapon and Supervised Release Revocation, failed to appear for his sentencing hearing as ordered by the court.
The charge is merely an accusation and Poor Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Poor Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
North Dakota Woman Charged with TheftRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mandan, North Dakota, woman has been indicted by a federal grand jury for Theft Concerning Programs Receiving Federal Funds.
Dawn Muir, age 52, was indicted on January 15, 2014. She appeared before U.S. Magistrate Judge William D. Gerdes on January 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 2, 2011, and December 31, 2013, Muir, being an agent of the Pretty Bird Woman House, knowingly and intentionally embezzled, stole, obtained by fraud, as well as intentionally misapplied property worth at least $5,000 which was owned by the Pretty Bird Woman House.
The charge is merely an accusation and Muir is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Muir was released on bond pending trial. A trial date has not been set.
New York Man Arrested on Charges He Conspired with Others Involving Sales of Illegally Diverted Prescription DrugsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Federal agents arrested Albert Nassar, 58, of New York City on January 28 based on a federal indictment from Cincinnati charging him with conspiracy to commit mail and wire fraud in connection with the illegal sale of prescription drugs bearing false pedigrees that misrepresented the sources and origins of the drugs.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Antoinette Henry, Special Agent in Charge, U.S. Food and Drug Administration Office of Criminal Investigations, and Dugan Wong, Inspector in Charge, U.S. Postal Inspection Service announced the indictment returned on January 22.
The indictment alleges that Nassar, the owner of Worldwide Management Consultants, Inc., participated with others in a scheme between 2007 and 2009 to obtain prescription drugs from various illicit or unknown sources – known as diverted drugs – and then resell the drugs to unwitting wholesale drug companies using false pedigrees. The false pedigrees showed legitimate authorized distributors as the source of the drugs, when, the indictment alleges, the drugs were obtained outside lawful channels.
Other conspirators included Michael Schoenwald, 60, a Hollywood, Florida-based urologist, and Gregory Pfizenmayer, 45, the owner of G & D Enterprises in Foley, Alabama. As part of the conspiracy, Schoenwald obtained Lupron, an injectable drug used to treat prostate cancer, from the manufacturer at discount rates due to his status as a health care provider. Federal law prohibits the resale of such drugs by health care providers. Nassar allegedly directed Schoenwald to ship the Lupron to Pfizenmayer, who in turn sold the drugs to wholesale drug companies, providing false pedigrees that concealed the illicit source of the drugs.
Other prescription drugs allegedly involved in the conspiracy included Procrit, used to treat anemia in patients with kidney failure, and Neulasta, used to prevent infections in patients undergoing chemotherapy. The drugs were shipped with the false pedigrees by mail to drug wholesalers in New Jersey, Mississippi and Ohio, and each conspirator received payments including by wire transfer.
An initial appearance for Nassar was held in the Southern District of New York on the day he was arrested. Nassar was released on bond and ordered to appear before U.S. District Judge Karen L. Litkovitz in Cincinnati at 1:30 p.m. on February 6, 2014
Pfizenmayer pleaded guilty on February 2, 2011 and Schoenwald pleaded guilty on February 16, 2012. Both pleaded guilty to one count of conspiracy and are awaiting sentencing.
The indictment also seeks forfeiture of $2,703,840.93 from Nassar, which represents the proceeds of the fraud.
U.S. Attorney Stewart commended the investigation of this case by the FDA and Postal Inspectors, and Senior Litigation Counsel Anne Porter, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
New Jersey Man, Stanley Zdon, Iii, Charged with Conspiracy to Produce Child PornographyRead the Press Release
STANLEY ZDON, III, age 28, a resident of Tuckerton, New Jersey, was charged today in a Superseding Bill of Information with conspiracy to produce child pornography, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to court documents, inn November 2013, ZDON was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that ZDON was responsible for receiving, distributing, and producing videos and images depicting the sexual exploitation of children via the Internet. ZDON has been in custody since his arrest.
Conspiracy to produce child pornography carries a mandatory minimum sentence of 15 years and a maximum sentence of 30 years. If convicted, ZDON will have to register has a sex offender.
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that the Superseding Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and the United States Postal Inspection Service. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
New Charges V. NYPD Cop Indicted for Extorting A Queens Business Owner and Stalking His GirlfriendRead the Press Release
Dervishaj Indictment
More Than Two Dozen Arrested in Crackdown on Evansville-area Criminal OrganizationRead the Press Release
Joint investigation leads to early-morning arrests across city and the filing of federal charges
EVANSVILLE – United States Attorney Joseph H. Hogsett, joined by Vanderburgh County Prosecutor Nicholas Hermann, Sheriff Eric Williams, and Evansville Police Chief Billy Bolin, announced this afternoon the early-morning arrest of 22 Evansville-area residents in a city-wide crackdown on drug trafficking and other gang-related activities. This joint federal-local investigation is part of the U.S. Attorney’s ongoing Violent Crime Initiative.
“The allegations in this case describe a dangerous gang that for years peddled violence and drugs across the city of Evansville,” Hogsett said. “These charges also serve as a reminder that if you are involved in organized crime in this city, if you assist these groups in any way, you too will wake up one morning soon to the sound of law enforcement at your door.”
Today’s arrests center around a local criminal street gang that operated under the name “300 Wag Block,” which is a reference to the 300 block of Waggoner Avenue in Evansville. According to the federal indictment, the gang has been responsible for numerous acts of violence and the local distribution of drugs, including cocaine. The indictment describes a complex series of code words that were used by gang members to describe their criminal activities.
The federal indictment alleges a pattern of criminal behavior that stretched over four years. All told, eight defendants have been charged with offenses that include conspiring to distribute crack cocaine, multiple counts of possessing and distributing drugs, as well as numerous federal firearm offenses related to illegally possessing firearms in the course of these drug trafficking activities.
The indictment also alleges specific instances of gang-related violence in Vanderburgh County. This includes the June 2012 assault of an individual in a local parking lot, the firing of weapons at individuals on Florida Street in October 2013, and a series of recorded gang meetings that took place late last year. The indictment describes the collective criminal histories of the defendants, which include multiple local convictions related to violent acts and drug trafficking.
Those eight defendants charged federally include:
• Maleek Davis, a/k/a “Skinny” or “Pluto Dollas,” age 21
• Mykale Davis, a/k/a “Kales,” age 22
• Tiackquien Douglas, a/k/a “TT,” age 21
• Gerald Butler, a/k/a “Boogie,” age 23
• Luther Lawton, a/k/a “Lut Lut” or “LL,” age 21
• Duwan McKinney, a/k/a “Mula” or “Shorty,” age 27
• Lusta Johnson, age 21
• D’Mariea Fox, age 23Defendant Fox remains a fugitive at this time. In addition, 11 defendants arrested this morning face state charges for their alleged roles in the group, while three state defendants remain fugitives at this time.
This case was the result of a collaborative investigation involving the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation’s Safe Streets Task Force, the United States Marshals Service, as well as the Vanderburgh County Sheriff’s Office, and the Evansville Police Department.
According to Assistant U.S. Attorney Matthew P. Brookman, who is prosecuting the federal case for the government, all of the defendants could be sentenced to decades in federal prison. Due to extensive criminal histories, some of the defendants could face life imprisonment without the possibility of parole. Under federal law, the defendants would be required to serve at least 85% of their sentence within a correctional facility if they are found guilty.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Moorhead Man Pleads Guilty During TrialRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Jan. 30, 2014, David Ramiro Cerna, Jr., 37, of Moorhead Minn., pleaded guilty during the third day of trial to aiding and abetting the conspiracy to distribute methamphetamines and marijuana. U.S. District Judge Ralph R. Erickson is presiding over the case.
The conspiracy involved the transportation of kilogram quantities of methamphetamine from Texas that was distributed in the Fargo-Moorhead area. Co-conspirators also obtained large quantities of marijuana from the Minneapolis area and distributed it throughout the local area.
Cerna Jr. faces 10 years to life in prison. There have also been 13 defendants now convicted in association with this organization.
The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, North Dakota Bureau of Criminal Investigations, Fargo and Moorhead Police Departments, and Cass County Drug Task Force.
Sentencing is set for April 14, 2014, at 10:00 a.m. U.S. District Court.
First Assistant U.S. Attorney Chris Myers and Assistant U.S. Attorney Brett Shasky are prosecuting the case.
Miami Men Sentenced in Social Security and Tax Refund Fraud Scheme Involving Stolen IdentitiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Daniel Jean Charles, 31, of Miami, was sentenced yesterday to 57 months in prison, followed by three years of supervised release.
Charles pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Co-conspirator Wesley Compere, 31, of Miami, previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, in a separate case. Compere was sentenced to 70 months in prison, followed by three years of supervised release.
According to court documents, Charles and Compere used stolen identities to file fraudulent Social Security Retirement Income Benefit (RIB) and fraudulent income tax refund claims. The scheme involved the payment of $111,002.10 in fraudulent RIB claims and $128,431.80 in fraudulent tax refund claims.
Mr. Ferrer commended the investigative efforts of SSA-OIG, FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mesquite, TX Man Sentenced to 180 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JASON DEWAYNE ESTEP, age 42, of Mesquite, Texas, was sentenced to 180 months imprisonment, followed by 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The charges are a result from an investigation by the Oklahoma Bureau of Narcotics, the McIntosh County Sheriff’s Office, District 25 District Attorney’s Drug Task Force, Eufaula Police Department, the Mesquite Police Department in Texas and the United States Marshal Service. The defendant was indicted in March, 2013 along with CLINTON McKENZIE BEVENUE, age 36, of Eufaula, Oklahoma.
The Indictment alleged that beginning in or around December 19, 2012, within the Eastern District of Oklahoma, the defendant did willfully and knowingly combine, conspire, confederate and agree with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846, to wit: to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Marine Police Commander Sentenced to Prison in Miramar Bribery SchemeRead the Press Release
This morning in federal court in San Diego, former Marine watch commander Luis Gilbert Menchaca was sentenced to prison for his role in a fraud and bribery scheme at Marine Corp Air Station (MCAS) Miramar. As part of the scheme, Menchaca – while serving as a watch commander for the military police at Miramar – paid thousands of dollars in bribes to another Marine in order to obtain tens of thousands of dollars in fraudulent lodging reimbursements. U.S. District Judge Dana M. Sabraw sentenced Menchaca to two years in prison followed by three years of supervised release, and ordered him to pay restitution to the Marine Corps in the amount of $37,632.
On July 16, 2013, Menchaca was found guilty by a federal jury of one count of conspiracy to commit bribery and three counts of making false claims. The trial evidence demonstrated that Menchaca first joined the Marine Corps in 1998, and after an initial four-year term in which he attained the rank of Sergeant, was discharged and entered the Marine Corps Reserve. From time to time thereafter, Menchaca received orders placing him on active duty. In connection with his mobilization orders, Menchaca became eligible to receive certain travel payments, including lodging reimbursement and a per diem allowance, for the entire duration of his active duty service. These travel payments were in addition to the compensation and basic housing allowance (“BAH”) that he, like other Marines, received.
In May 2007, after being placed on active duty at Miramar, Menchaca entered into a conspiracy with another Miramar Marine, Manuel Ramos-Padilla. Ramos worked in an administrative office at Miramar that processed travel claims for reservists like Menchaca. In connection with the scheme, Menchaca and Ramos agreed to submit falsely completed forms – called “travel vouchers” – that claimed reimbursement for thousands of dollars in lodging expenses that Menchaca had not incurred or paid. In addition to submitting these false travel vouchers, the conspirators submitted a fake rental receipt, for a nonexistent address on Mission Village Drive in San Diego.
Menchaca and Ramos repeated the scheme month after month, for a period of ten months. In total, Menchaca submitted approximately $38,000 in false lodging claims. The proceeds of the scheme were deposited directly into Menchaca’s bank account every month. In exchange for his role processing the false travel vouchers, Menchaca paid Ramos up to $1,000 per month in cash. On occasion, Menchaca also paid bribes to Ramos in the form of personal checks.
While on active duty with the Marine Corps, Menchaca spent over four years in the military police. During the time period of the fraud, Menchaca served as a watch commander within the military police. In that role, he supervised patrol supervisors, who in turn supervised lower-ranking military police officers. Menchaca had responsibilities for overseeing the enforcement of federal laws, including the Uniform Code of Military Justice; as well as for enforcing the California Vehicle Code and Miramar regulations.
United States Attorney Duffy stated, “Investigating and prosecuting bribery is one of our top priorities. With our nation’s military budget already strained, public corruption draining needed U. S. Marine Corps resources will not be tolerated.”
Menchaca’s co-defendant, Manuel Ramos-Padilla, previously pled guilty to conspiring to commit bribery and make false claims. On November 8, 2013, Ramos was sentenced by Judge Sabraw to 24 months in prison.
"The Special Agent in Charge of the NCIS Field Office at Camp Pendleton, Charles Warmuth, says "Misusing trust for personal gain is not a "victimless" crime; it siphons money that could otherwise be used to maintain the readiness of the nation's war fighters and NCIS is committed to bringing to justice those who commit such fraud."
DEFENDANT Case Number: 12cr5099-DMSLuis Gilbert Menchaca
CO-DEFENDANT Manuel Ramos-Padilla SUMMARY OF CHARGESConspiracy to commit bribery and false claims, in violation of Title 18, United States Code, Section 371 - Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.
Three counts of false claims, in violation of Title 18, United States Code, Section 287 - Maximum penalties (per count): Five years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
INVESTIGATING AGENCYNaval Criminal Investigative Service
Manufacturer and Distributor of Child Pornography Sentenced to 35 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – David Crisostomi, 38, of East Providence, R.I., was sentenced on Wednesday to 35 years in federal prison for using a prepubescent minor to manufacture child pornography and for possessing and distributing child pornography, announced United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Crisostomi to serve lifetime supervised release upon completion of his prison term. Crisostomo pleaded guilty on March 12, 2013, to three counts of production of child pornography and one count each of possession and distribution of child pornography. At the time of his guilty plea, Crisostomi admitted to the court that on at least three occasions he participated in the recording of child pornography with a prepubescent minor, and that he downloaded and shared child pornography with others.
United States Attorney Peter F. Neronha commented, "A child's innocence, once taken, can never be fully recovered. The defendant preyed on the most vulnerable and the most deserving of our protection. Every day of his very long sentence is warranted. I want to thank all those who helped bring this defendant to justice, in particular the men and women from various law enforcement agencies who make up the Rhode Island State Police ICAC and the FBI, who consistently demonstrate extraordinary leadership in this critical area."
According to information presented to the court, on January 6, 2012, an undercover agent from the FBI’s Innocent Images Operations Unit observed that a user later identified as David Crisostomi was online and was sharing two folders containing child pornography. Three days later, an undercover agent observed that Crisostomi was online and was now sharing four folders containing child pornography.
On February 16, 2012, agents from the FBI and the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force executed a federal search warrant at Crisostomi’s residence and seized numerous images and videos depicting child pornography, computers and other electronic devices.
Crisostomi has been detained in federal custody since his arrest on February 16, 2012.
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police commented, “The underlying facts uncovered in this investigation resulted in this sentence. For more than the next three decades, this defendant will not be a threat to any children, which is comforting. I commend the investigators from the State Police ICAC Task Force, the FBI Agents and the prosecutors for bringing a predator to justice.”
“Mr. Crisostomi will sit for 35 years where he belongs,” said Vincent Lisi, the FBI Special Agent in Charge who is responsible for the FBI in Rhode Island. “The public should know we have many deeply committed special agents actively searching for individuals of Mr. Crisostomi’s kind. For others like him, his sentence should be a clear warning that there is nothing more important to the Rhode Island State Police, United States Attorney’s Office and FBI than ensuring the safety and protection of our children from those who harm them. We spare no effort when innocent children are manipulated or harmed by adults.”
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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.”
###
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]Local Biotech Firm and Employees Admit Concealing Toxic Nature of Product from the FDARead the Press Release
UPDATE
On March 20, 2014, the charges against Alan Donald were dismissed without prejudice on the motion of the government.
San Diego biomedical device manufacturer Valor Medical, Inc, (“Valor”) and four of its employees admitted today that they failed to provide the Food and Drug Administration (“FDA”) with required information that would have cast doubt on the safety of Neucrylate, a product intended to treat aneurysms.
According to court documents, in 2007, Valor commissioned two preclinical tests on Neucrylate, a mouse lymphoma assay (MLA) and a chromosomal assay (CAA), both of which contained unfavorable results. Although Valor acknowledged receiving the reports, the company failed to include the results of the MLA and CAA testing when it submitted an application to the FDA for an investigational device exemption in September 2010. This failure represents a violation of the federal criminal statutes as all defendants admitted that the report was required to have been included with Valor’s application under the Food, Drug and Cosmetic ACT (“FDCA”).
According to court records, Valor created two separate products, one intended for use in blood vessels in the brain (Neucrylate AN) and one intended for use in blood vessels near the heart (Neucrylate AVM). 2 Because both products are considered to be Class III medical devices under the FDCA, premarket approval from the FDA is required before they can be sold in the United States. In order to perform clinical trials on humans to obtain the data needed to support an application for premarket approval, Valor needed to first obtain an investigational device exemption (“IDE”) from the FDA. The regulations relating to such exemptions require applicants to submit “reports of all prior clinical, animal and laboratory testing of the device.”
As the Valor devices are intended to be permanently implanted in the body, biocompatibility is very important. The FDA evaluates the biocompatibility of medical devices pursuant to ISO-10993, an international standard, which requires a series of at least three tests. Two of the three tests typically performed to satisfy these requirements are the MLA and CAA tests.
According to sentencing documents, after Valor sent the samples of Neucrylate to be tested, the lab reported to Alan Donald, a consultant hired by Valor, that all the chromosomes in the CAA test had been destroyed by initial contact with the Neucrylate. The lab asked if Valor wanted the lab to follow the standard protocol, which called for diluting the samples of Neucrylate and retesting. Rather than follow the standard protocol, Donald told the lab that no further testing should be performed. The lab’s final report indicated that “no chromosomes were present to be scored” – indicating that the Neucrylate was cytotoxic (i.e., toxic to cells). The official conclusion to the report indicated that the testing had not been completed pursuant to the testing protocol.1
At about the same time, the laboratory sent an email to Valor’s Chief Scientist, Peter Friedman, attaching the preliminary results of the MLA test, which advised Valor that “all testing has been completed and the test article is considered to be mutagenic” (i.e., an agent that changes the genetic material of a cell, usually DNA, thereby increasing the frequency of mutations). Friedman forwarded the email later that same day, with the attached preliminary results, to Valor’s then-CEO Charles Kerber, Board Member H. Clark Adams, and Alan Donald. Adams replied to all, saying, “Let’s huddle and determine how we overcome this obstacle. I have confidence that we can find an answer.”
Following this huddle, the company provided neither the CAA test results nor the MLA test results to the FDA, even though they filed two separate IDE applications and responded to several additional requests for information (virtually all of which specifically requested that the CAA and/or MLA tests be performed).
At the time that defendant Cathy Bacquet, Clinical Affairs Manager, compiled and submitted the IDE application to the FDA, the CAA test report was filed as Test Report #27 in the Valor Medical Technical Report Log. According to a Valor employee, Adams, Kerber, and Bacquet made the decision not to provide the CAA test to the FDA.
The MLA report was not in the Technical Report Log at the time Valor’s IDE was submitted in 2010 because Adams specifically prohibited its inclusion. However, a copy of the MLA test report was found on both Friedman’s and Bacquet’s computers during the execution of a search warrant. The file, created in 2007 on Friedman’s computer and in 2009 on Bacquet’s computer, was identified as “mouse lymphoma-failed.” In an email two months after the submission of the IDE, Bacquet wrote, “We have already done Mouse Lymphoma and do not want to repeat it.” Fortunately, the FDA rejected all of Valor’s IDEs for Neucrylate despite not having the failed test results.
After a December 2010 inspection of Valor uncovered the CAA test, the FDA sent a Warning Letter to Adams at Valor. The letter referenced Valor’s failure to disclose as a violation of the regulations requiring an applicant to submit all preclinical testing to the FDA. Bacquet, responding on behalf of Valor, claimed that Valor “inadvertently” left out the CAA and MLA tests in the application for the IDE. Valor blamed this “unintentional violation” on Alan Donald, who had separated from the company nearly a year before that IDE was filed. Bacquet falsely wrote in the letter, “Prior to February 10, 2011, the existence of this report [the MLA] was not known to VM management or Quality/Regulatory staff,” which is clearly contradicted by the series of emails between Friedman, Kerber, Adams, and Donald when the MLA results were received by Valor in 2007, and the presence of copies of the MLA report on the computers of Friedman and Bacquet.
The American people depend on the FDA to determine that there is sufficient scientific basis to believe that a proffered medical device is safe and effective before permitting clinical trials on human beings. The FDA, in turn, depends on the full and truthful disclosure of all pre-clinical testing by device manufacturers to make an educated determination. When information is withheld from the FDA, the decision-making process is corrupted. Here, the FDA did not approve the proffered medical device for clinical trials on humans, so no Americans were endangered by the defendants’ failure to provide the testing data to the FDA.
“Our nation’s system of evaluating medical device safety and effectiveness depends upon the submission of truthful data to the FDA,” said U.S. Attorney Laura Duffy. “When manufacturers like these defendants place their profits above their duty to honestly report the results of product testing, they place the American public’s health and safety in jeopardy. This office will continue to vigorously enforce laws designed to protect the health and safety of our citizens through cases like this.”
The company pled guilty to Failure to Provide Required Information in violation of Title 21, United States Code, Section 331(q)(1)(B) and 333(a)(1) (a felony). Former Valor CEO and current member of the Board of Directors H. Clark Adams, and Valor Regulatory and Clinical Affairs Manager Cathy Bacquet also pled guilty to the same crime but as misdemeanor. Valor founder Dr. Charles Kerber and Chief Scientist Peter Friedman entered into Deferred Prosecution Agreements in which they admitted that they knew the required information was omitted in the FDA Application. Finally, former Valor consultant, Alan Donald, pled guilty in a related criminal case for his role in failing to submit the CAA and MLA test results to the FDA with the 2008 IDE application. At the time, Donald was a member of the Board of Directors of Valor Medical, and was paid as a regulatory consultant.
"The FDA's regulatory decisions must be based on sound and truthful scientific evidence," said Lisa Malinowski, Special Agent in Charge, Office of Criminal Investigations, Los Angeles Field Office. "We will continue to protect the Agency's public health mission against this type of deliberate deception and aggressively pursue the prosecution of those who may endanger the public’s health. We commend the U.S. Attorney’s Office for their diligence in pursuing this investigation.”
United States Magistrate Judge David H. Bartick sentenced former Valor CEO H. Clark Adams to one year of probation, and a $5,000 fine, and sentenced Regulatory and Clinical Manager Cathy Bacquet to one year of probation and a $2500 fine. The sentencing for Valor Medical, Inc. is scheduled for February 19, 2014, at 9:30 a.m. before U.S. District Judge Dana Sabraw. A status hearing has been set for February 3, 2015, at 1:30 p.m. with respect to defendants Kerber and Friedman.
_________________________
1The lab’s internal Quality Event Details Form noted that the samples for the CAA test were “cytotoxic,” and the results were valid, but the sponsor was “choosing to cancel the study rather than perform dilutions” so a “full conclusion as to the genotoxicity of the sample will not be made.”
DEFENDANT Criminal Case No. 14cr0196-DMSValor Medical, Inc. San Diego, California
H. Clark Adams
San Diego, CaliforniaCathy Bacquet
San Diego, CaliforniaCharles Kerber
San Diego, CaliforniaPeter Friedman
San Diego, CaliforniaDate of Incorporation: 2007
Age: 77
Age: 49
SUMMARY OF CHARGESCount 1 (Defendant Valor Medical)
Failure to Provide Required Information, a felony, in violation of Title 21, United States Code, Section 331(q)(1)(B) and 333(a)(2)
Maximum Penalty for a corporation: 5 years probation, a $500,000 fine, $400 special assessmentCount 2 (remaining defendants)
Failure to Provide Required Information, a misdemeanor, in violation of Title 21, United States Code, Section 331(q)(1)(B) and 333(a)(1)
AGENCY
Maximum Penalty: 1 year in custody and/or $100,000 fine, $25 special assessment.U.S Food and Drug Administration, Office of Criminal Investigations
Lawyer Charged with Stealing Client FundsRead the Press Release
PHILADELPHIA - Gomer Thomas Williams, 54, of Philadelphia, PA, was charged today by information with one count of wire fraud in connection with a scheme to defraud clients of the legal firm where he worked. Williams was an attorney and associate with the Philadelphia law firm, Spector Gadon & Rosen (“Spector”). According to the information, between 2007 and 2012, Williams defrauded four of his trust and estate clients of approximately $503,361 by diverting funds from his clients’ accounts to his personal accounts, and by overbilling his clients for legal work that was not performed.
For the trusts, Williams was the trustee, and, for the estates, Williams was the administrator and/or executor. Williams exercised complete control over the victim-clients’ funds, including controlling their checking accounts. The information alleges that he abused his fiduciary position in transferring funds from their accounts to pay his own personal expenses, including his mortgage.
If convicted, Williams faces a potential advisory sentencing guideline range of 33 to 41 months in prison, a $100 special assessment, a possible fine, and up to three years of supervised release.The case was investigated by the FBI and is being prosecuted by First Assistant United States Attorney Louis D. Lappen.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Lakeland Man Sentenced to 20 Years in Prison for Trafficking in MethamphetamineRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore yesterday sentenced Ricky Muoio (45) to 20 years in federal prison for distribution of methamphetamine and possession with intent to distribute methamphetamine. Muoio was found guilty by a jury on November 6, 2013.
According to court documents, and testimony and evidence presented at trial, on April 11, 2013, a confidential source (CS) working with the Drug Enforcement Administration (DEA) purchased two ounces of methamphetamine for $3,000 from Muoio, at his residence in Lakeland. On April 24, 2013, DEA agents executed a federal search warrant at the residence. In one of the bedrooms, they found and seized a total of approximately 1.5 ounces of methamphetamine, $3,500 in cash and a digital scale.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Kathy J.M. Peluso.
Lake County Man Convicted of Federal Firearms OffenseRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Lucien Frank Sobolewski (44, Eustis) guilty of possession of a firearm and ammunition by an unlawful user of a controlled substance (marijuana). Sobolewski faces a maximum penalty of 10 years in federal prison. His sentencing hearing has not yet been scheduled. Sobolewski was indicted on March 20, 2013.
According to testimony and evidence presented at trial, U.S. Forestry officers stopped Sobolewski in the Ocala National Forest on February 6, 2013, for failure to wear a seatbelt. Sobolewski admitted to the officers that he had a .50 caliber handgun and marijuana inside of his truck. Even though Sobolewski was not a law enforcement officer, a search revealed a replica Drug Enforcement Administration (DEA) badge mounted inside his wallet. Further investigation revealed that Sobolewski had engaged in a pattern of marijuana use since he was 19 years old. Though Sobolewski had a Florida concealed weapons permit for the firearm, his pattern of marijuana use prohibited him from possessing either firearms or ammunition under federal law.
This case was investigated by the U.S. Forestry Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This case is involves ATF’s Frontline model - a three-pronged approach to violent crime reduction through community involvement, criminal enforcement, and sustainable prevention.
Justice Department Settles Disability Claims with Transportation Companies That Discriminated Against Riders with Service AnimalsRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached a settlement with LogistiCare Solutions and Michigan Green Cabs to resolve allegations that they violated the Americans with Disabilities Act ("ADA") by denying rides to passengers with service animals, U.S. Attorney Barbara L. McQuade announced today. Service animals provide assistance and perform a wide range of daily tasks for individuals with disabilities, including physical, sensory, psychiatric, intellectual, and other mental disabilities.
LogistiCare is a transportation management company that operates in 42 states and specializes in non-emergency medical transportation. Michigan Green Cabs is a taxi company that operates in the Royal Oak, Michigan, area.
These settlements resolve two investigations prompted by complaints that both companies failed to provide reasonable modifications to their policies prohibiting pets in vehicles. The investigation revealed that transportation providers under LogistiCare’s management in Michigan and Missouri unlawfully denied rides to individuals with disabilities who required service animals, such as those used to guide a person who is blind, to alert a person who is hard of hearing, to remind a person to take medication, or to perform a wide range of other daily tasks.
The U.S. Attorney’s Office determined that one of LogistiCare’s transportation providers in Michigan refused to transport an individual with a service animal because a LogistiCare customer service representative prepared a memo indicating that no animals were permitted in the cab. The investigation also revealed that a second complainant in Missouri was told by a LogistiCare employee that LogistiCare’s transportation providers would accommodate service animals for the blind, but not other service animals.
In its investigation of Michigan Green Cabs, the United States Attorney’s Office found that one of the cab company’s drivers failed to make a reasonable modification for a customer with a service animal seeking transportation from a hospital.
“The promise of the Americans with Disabilities Act is that individuals with disabilities should have full access to public life," McQuade said. "These protections are especially important when it comes to public services necessary to receive medical care, such as transportation. We hope that cases like this one will improve awareness of the duties businesses have under the law."
Under the settlement, both LogistiCare and Michigan Green Cabs have agreed to update their policies and training materials to ensure compliance under the ADA. In addition, LogistiCare must pay each complainant $750 and Michigan Green Cabs must pay the complainant $500.
For more information on the ADA and service animals, visit http://www.ada.gov/qasrvc.htm. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected] or [email protected] or by calling
313-226-9151.Justice Department Reaches Settlement to Resolve Claim of Citizenship Status Hiring Discrimination in Waterloo, IowaRead the Press Release
The Justice Department announced today that it has reached an agreement with the city of Waterloo, Iowa, resolving allegations that the city violated the anti-discrimination provision of the Immigration and Nationality Act (INA).
The department initiated its investigation after a charge was filed by a work-authorized, lawful permanent resident alleging that the city refused to consider him for a fire fighter position because he was not a U.S. citizen. The department’s investigation confirmed that the city of Waterloo improperly restricted fire fighter positions to U.S. citizens despite the fact that no law, regulation, executive order or government contract authorized the city to legally restrict employment in such a manner under the INA. The investigation further revealed that the city of Waterloo had refused to consider the charging party’s application on the basis of his citizenship status.
Under the settlement agreement, the city of Waterloo must provide the charging party with another opportunity to apply for the position and must hire or otherwise compensate the charging party if the charging party’s performance on the city’s hiring tests confirm that he would have been hired in the absence of discrimination. In addition, the city of Waterloo will pay $13,000 in civil penalties to the United States, and has agreed to make changes to its policies and practices to ensure unlawful citizenship requirements are not imposed, to provide training to city officials, and to be subject to monitoring by the department for one year.
“Employers must make sure that they are not erecting unlawful, discriminatory barriers in hiring,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department is committed to knocking down these barriers through its enforcement of the INA and making sure that work-authorized applicants have equal employment opportunities.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc
Jury Finds Moundsville Man Guilty of Drug TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistDefendant faces up to Forty Years in Prison
WHEELING, WEST VIRGINIA - A 59-year old Moundsville, West Virginia, resident was convicted today by a federal jury for the illegal distribution of prescription painkillers.
United States Attorney William J. Ihlenfeld, II, announced that ROCCI WADE was convicted of “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone” and “Distribution of Oxycodone.” WADE was part of a five person conspiracy that distributed painkillers in the Moundsville area between 2010 and 2013.
WADE, who is in custody pending sentencing, faces up to 40 years in prison when he is sentenced by Chief Judge John Preston Bailey later this year. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The case was prosecuted by Assistant United States Attorneys Randolph J. Bernard and Robert H. McWilliams, Jr. and investigated by the Marshall County Drug Task Force which includes officers and agents from the Moundsville Police Department, the Marshall County Sheriff’s Department, and the Drug Enforcement Administration.
Jury Convicts Two Men for Filing False Claims Against Internal Revenue ServiceRead the Press Release
Jason McGuire of Detroit, Mich., and Delvin Davis of Saint Clair Shores, Mich., were found guilty by a jury sitting in Detroit in the Eastern District of Michigan of conspiracy and filing $3.4 million in false claims in the form of false individual income tax returns and false trust tax returns, the Justice Department and Internal Revenue Service (IRS) announced today. The defendants were also found guilty of filing or aiding and abetting in the filing of false, fictitious and fraudulent claims; Davis was found guilty of five such counts and McGuire of 18 counts. Witness testimony revealed that the defendants attended the same high school in Detroit and began the scheme in 2008. Prior to that time, McGuire had worked as a mechanic and Davis had worked as a mortgage broker and operated a “credit repair” business.
According to court documents and evidence introduced at trial, McGuire, 37, and Davis, 36, recruited individuals from the Detroit area with whom they had existing, long-standing business and personal relationships to sign fraudulent trust and income tax returns. McGuire had the taxpayers sign blank trust return forms, and the taxpayers never saw the filled-out forms before they were filed. McGuire attached bogus forms to the income tax returns. McGuire included fictitious withholdings in both types of return forms, resulting in the taxpayers receiving large refunds. The defendants recruited at least nine different taxpayers to participate in the fraudulent scheme. The IRS received returns requesting more than $3.4 million in false refunds and paid over $1.5 million in false refunds as a result of the fraudulent scheme. Several taxpayers testified at trial that they were required to pay fines and interest to the IRS as a result of the false tax returns that the defendants submitted to the IRS.
“Those who prepare and file fraudulent returns cheat all honest taxpayers,” said Assistant Attorney General Kathryn Keneally for the Tax Division. “The Department is committed to investigating, stopping, and prosecuting these crimes.”
"When criminals cheat the IRS, they rob all of us as taxpayers,” said U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan. “We hope that prosecutions like this one will deter others from stealing taxpayer funds."
Sentencing is scheduled for May 2, 2014, before U.S. District Judge Stephen J. Murphy. McGuire and Davis each face a statutory maximum potential sentence of 10 years in prison and a $250,000 fine for the conspiracy count and five years in prison and a $250,000 fine for each count of filing a false claim.
This case was investigated by IRS-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Elizabeth Stafford and Trial Attorney Mark McDonald of the Tax Division.
Jennings Man Pleads Guilty to Importing and Distributing Anabolic SteroidsRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that Christopher Paul Benoit, 33, of Jennings, La., pleaded guilty before U.S. District Judge Patricia Minaldi to conspiring to unlawfully import and possess with intent to distribute anabolic steroids.
According to evidence presented at the guilty plea, from January 2007 to June 2012, Benoit conspired with others to import steroids using the U.S. mail. Benoit ordered anabolic steroids online and paid for the drugs using money wires or debit cards to foreign accounts. The indictment lists five such orders delivered from China to Jennings from January 2011 to February 2012. Benoit and his co-conspirators would then take the powdered steroids from the packages, liquefy them, and place them into vials for sale. One of the co-conspirators, Regan Chase Benoit, 26, also of Jennings, and Christopher Benoit’s first cousin, approached Christopher Benoit in 2010 to purchase steroids. Regan Benoit admitted he later assisted his cousin in liquefying the powder steroids for distribution. Regan Benoit pleaded guilty to steroid importation, possession, and distribution charges on September 5, 2013, and sentencing is set for March 27, 2014.
Christopher Benoit faces up to 10 years in prison, a $500,000 fine, and a lifetime of supervised release for one count of conspiracy to import and possess with intent to distribute anabolic steroids. Sentencing has been set for May 8, 2014.
Homeland Security Investigations, U.S. Customs and Border Protection, the U.S. Postal Inspection Service, and the Jennings Police Department conducted the investigation. Assistant U.S. Attorney Brett L. Grayson is prosecuting the case.
Indictment Returned for Murder in National Park in MarylandRead the Press Release
Virginia Man Faces Manslaughter Charge for Death of Climber in Carderock
Greenbelt, Maryland - A federal grand jury has indicted David DiPaolo, age 31, of Bristow, Virginia, on charges of voluntary manslaughter in connection with the death of a person in Carderock, an area within the Chesapeake and Ohio Canal National Historical Park. The indictment was returned on January 29, 2014. DiPaolo is scheduled to have an initial appearance today before U.S. Magistrate Judge Charles B. Day, in Courtroom 2A, U.S. District Court in Greenbelt, Maryland, at 3:30 p.m.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Chief of Police Robert MacLean of the U.S. Park Police.
According to the indictment and other court documents, on December 28, 2013, the victim was found on a trail in Carderock with massive head injuries. The indictment alleges that after arguing with the victim, DiPaolo killed the victim by repeatedly striking the victim in the head with a blunt object. DiPaolo was arrested by New York State Police on January 8, 2014, and had an initial appearance in U.S. District Court in Albany, New York. DiPaolo was transported to Maryland by U.S. Marshals.
DiPaolo faces a maximum sentence of 15 years in prison for voluntary manslaughter.
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 praised the U.S. Park Police for its work in the investigation and thanked the New York State Police, U.S. Attorney’s Office for the Northern District of New York, and the U.S. Marshals Service for their assistance. Mr. Rosenstein thanked Assistant United States Attorney Mara Zusman Greenberg, who is prosecuting the case.
Idaho Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Post Falls, Idaho, man convicted of three counts of Failure to Pay Legal Child Support was sentenced on January 23, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
David E. Cox, age 47, was sentenced to 5 years of unsupervised probation on each count to run concurrently, ordered to pay a $300 special assessment to the Federal Crime Victims Fund, and child support restitution in the amount of $62,277.67. He was found guilty by a federal jury on January 16, 2014.
Cox was indicted for failing to pay over $61,000 in child support on July 9, 2013. The obligations went unpaid for more than two years and were in amounts greater than $10,000. At that time, Cox was residing in Idaho while his minor children resided in South Dakota. From that date and continuing to the present, Cox willfully and unlawfully failed to pay these past due child support obligations.
This case was investigated by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Heroin Dealer SentencedRead the Press Release
The head of a heroin distribution conspiracy was sentenced January 30, 2014, to more than 27 years in federal prison.
Dwayne Appling, 37, from Chicago, Illinois, received the prison term after an August 26, 2013, guilty plea to one count of conspiracy to distribute heroin and one count of distributing heroin near a school.
According to information disclosed at the sentencing hearing, between 2007 and March of 2010, Appling headed an organization responsible for distributing thousands of grams of heroin throughout the Waterloo area. Appling recruited at least eight other individuals to sell heroin on his behalf. Appling’s organization was extensive, involving over thirty other individuals who have been prosecuted by the United States Attorney’s Office.
Appling was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Appling was sentenced to 327 months’ imprisonment on each count to run concurrently. The Court also imposed a special assessment of $200. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Appling is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was being prosecuted by Special Assistant United States Attorney Lisa C. Williams and was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Drug Enforcement Administration (DEA) Task Force and the Tri-County Drug Task Force. The Cedar Rapids DEA Task
Force consists of the DEA; Linn County Sheriff's Office; Cedar Rapids Police Department; Marion Police Department; Iowa City Police Department; Clinton
Police Department; Iowa Division of Narcotics Enforcement; Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Sixth Judicial District Department of Correctional Services. The Tri-County Drug Task Force consists of the Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department; and Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR-11-2025.Guatemalan National Sentenced for ID Theft; more than 100 Illegal Aliens used False ID in Scheme to Obtain LicensesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Guatemalan national was sentenced in federal court today for aggravated identity theft in connection to a conspiracy to provide false identity documents so that more than 100 illegal immigrants could fraudulently obtain driver’s and non-driver’s licenses from the license office in St. Joseph, which is operated by a contractor for the Missouri Department of Revenue.
Pedro Pablo-Solis, 29, a citizen of Guatemala residing in Liberal, Kan., was sentenced by U.S. District Judge Brian C. Wimes to two years in federal prison without parole.
On Sept. 23, 2013, Pablo-Solis pleaded guilty to aggravated identity theft. He is the fifth and final defendant to plead guilty and be sentenced in this case.
Illegal aliens traveled across the United States to obtain licenses at the St. Joseph license office by using unlawfully obtained birth certificates and Social Security cards. It is estimated that well over 100 Missouri licenses were unlawfully issued to illegal aliens as part of this conspiracy from July 1, 2010, to Jan. 10, 2012.
Pablo-Solis’s role in the conspiracy was to obtain genuine Social Security cards and birth certificates that were later used by illegal aliens to fraudulently obtain Missouri identification documents. Pablo-Solis, who is illegally present in the United States, provided co-defendant Domingo Ajanel-Castro, 33, a citizen of Guatemala residing in St. Joseph, with identification documents for a specific age range for either a male or a female that corresponded with the illegal alien who was purchasing the document set.
Thomas Richard McNamara III, 27, formerly an employee at the St. Joseph license office, Hector Juarez Mendoza, Sr., 55, a citizen of Mexico who is a lawful permanent resident of the United States, and his wife, Isabel Ramirez Mendoza, 62, and Ajanel-Castro, all of St. Joseph, pleaded guilty to their roles in a conspiracy to unlawfully produce identification documents, unlawfully transfer the means of identification of another person and commit Social Security fraud and to aggravated identity theft. Ajanel-Castro also pleaded guilty to possessing false or fraudulently obtained identification documents.
The Mendozas and others (including family members, such as their minor son) escorted illegal aliens into the St. Joseph license office under the guise of serving as translators. They charged a fee, typically $100, for assisting the illegal aliens to obtain a Missouri driver’s or non-driver’s license that was in the name of another person who was listed on unlawfully obtained birth certificates and Social Security cards.
The Mendozas also referred illegal aliens to co-conspirators who could assist them in obtaining identification documents that could be used to fraudulently obtain Missouri non-driver’s licenses. The illegal aliens were usually charged between $500 and $950 for the document sets and the Missouri driver’s and non-driver’s licenses.
The Mendozas assisted illegal aliens in preparing for potential questions from the license office employees, such as learning the names on the birth certificates, the names of the parents on the birth certificates, the dates of birth, and the Social Security numbers.
Sometime between June 22, 2009, and Nov. 2, 2011, Isabel Mendoza approached McNamara and asked him to accept identification documents he was not supposed to accept and issue Missouri driver’s or non-driver’s licenses to individuals who were escorted by her and others. In exchange, she offered to pay McNamara a fee of approximately $50 to $100 for each time he issued a license he was not supposed to issue due to the inadequate documentation of their true identity.
McNamara admitted that he accepted improper documents approximately two to three times a week, but he didn’t do this every week. Mendoza often called Isabel McNamara before bringing aliens to the license office to make sure he would be working and to let him know they were bringing in clients. McNamara then met with Isabel Mendoza on numerous occasions during non-work hours at locations other than the licensing office to receive payment.
According to McNamara, it was common knowledge among the employees at the license office that co-conspirators were assisting illegal aliens to obtain licenses.
This case was prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, and the U.S. Postal Inspection Service.Gillette Man Convicted for Attempted Online Enticement of A MinorRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that Gillette, Wyoming resident JONATHAN EARL OLAVESON has been convicted in federal court. A jury found Olaveson guilty of attempted online enticement of a minor for sexual purposes after a two-day jury trial in the U.S. District Court in Casper. Olaveson is scheduled to be sentenced by Federal District Court Judge Skavdahl on April 10, 2014.
The investigation in this case was conducted by the Federal Bureau of Investigation, assisted by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and Homeland Security Investigations.
Fugitive ‘Nurse’ ArrestedRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced the arrest of Susan Elaine Boyce, 59, formerly of Pleasant Plains, Arkansas. Boyce was arrested last night in Howell County, Missouri by Social Security Administration - Office of the Inspector General agents and by deputies from the Howell County Sheriff’s Office.
Law enforcement succeeded in locating Boyce by acting upon a lead generated by the Office of the Inspector General for the U.S. Department of Health and Human Services. Boyce is scheduled to make her initial appearance in federal court at 4 p.m. this afternoon before United States Magistrate Judge Jerome T. Kearney.
“I want to commend the agents from the Social Security and the Department of Health and Human Services Administration – Offices of the Inspector General for continuing to develop and pursue leads in this investigation resulting in the apprehension of Ms. Boyce,” stated Thyer. “We could not rest knowing she might try to pose as a nurse in some other town to get another healthcare-related position in a school or other facility. The health and safety of anyone who would have trusted she was a qualified healthcare provider was at risk. Thankfully, people no longer have to worry now that she is in custody.”
Boyce was indicted by a federal grand jury on September 5, 2012. The seven-count indictment charged her with wire fraud, aggravated identity theft and misuse of a social security number. Boyce used an Arkansas State Board of Nursing license number and a Social Security Number belonging to another person to obtain employment as a school nurse in Searcy, Arkansas, from the 2007-2008 school year through the 2011-2012 school year.
The investigation is being conducted by agents from the Social Security Administration-Office of the Inspector General and the Office of the Inspector General for the U.S. Department of Health and Human Services. The case is being prosecuted by Assistant United States Attorney Alexander Morgan.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Four Indicted in New Jersey for Allegedly Trafficking A Minor, Forcing Her to Work as A ProstituteRead the Press Release
TRENTON, N.J. – A federal grand jury in Trenton returned a superseding indictment today charging four men from New York and Pennsylvania with various offenses related to the trafficking of a minor and forcing her into prostitution for their own profit, New Jersey U.S. Attorney Paul J. Fishman announced.
The indictment charges Varian Charles, 29, aka “Bob,” of Philadelphia; Wilbur Senat, 24, aka “Wilby,” of Haverstraw, N.Y.; Samuel Verrier, 35, aka “Dre,” of Philadelphia; and Karl Venord, 31, aka “Imme,” of Philadelphia. All four were previously charged by complaint with related offenses in July 2013 and have been detained since that time. Charles was subsequently indicted. Today’s superseding indictment adds additional charges. All four defendants will be arraigned on a date to be determined.
According to the documents filed in this case:
The minor victim met Senat in the summer of 2011 in upstate New York. Shortly after they met, Senat took her to a motel in Nyack, N.Y., where he forced her to engage in commercial sex acts with various individuals for which they paid Senat. Senat threatened the victim’s family if she did not leave New York with him, so she agreed, and Senat purchased tickets for himself and the minor victim to take public transportation from New York to Philadelphia.
Charles met Senat and the victim in Philadelphia, where the men told the girl she would be staying at Charles’ house to engage in prostitution. While there, the victim was forced to have sex with various individuals who paid Senat and Charles. Senat and Charles also physically abused her.
Verrier met the victim while she was at Charles’ house, and took her. He then brought her to various clubs in Philadelphia, where he instructed her to solicit club patrons for sex acts in exchange for money.
In late August 2011, Verrier introduced the victim to Venord and the pair took her to New Jersey. During the drive, the men told her they intended to blackmail an individual in New Jersey, instructing her to have sex with this individual and take photographs of him. After locating the individual outside a bank in Bordentown, N.J., they were unsuccessful in their attempt.
The charges and maximum penalties are as follows:
Count
Defendant(s) Charged
Maximum Potential Penalty
Charles
SenatLife in prison; $250,000 fine
2 – sex trafficking of children
Senat
Life in prison (10 year minimum/15 year minimum if by force); $250,000 fine
3 – conspiracy to transport minors to engage in prostitution
Charles
SenatLife in prison (minimum 10 years); $250,000 fine
4 – transportation of a minor to engage in prostitution
Senat
Life in prison (minimum 10 years); $250,000 fine
5 – conspiracy to transport a minor to engage in criminal sexual activity
Verrier
VenordLife in prison (minimum 10 years); $250,000 fine
6 – transportation of a minor to engage in criminal sexual activity
Verrier
VenordLife in prison (minimum 10 years); $250,000 fine
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. The New Jersey Division of Criminal Justice also provided assistance.
The government is represented by Assistant U.S. Attorneys Sarah Wolfe in Trenton and Courtney M. Oliva in Newark.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
Charles, Varian Superseding Indictment
Four Additional Individuals Sentenced in Oxycodone ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Jan. 24, 2014, three additional individuals involved in an oxycodone distribution conspiracy were sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge. Ashley Nicole Gray Patterson, 29, of Morristown, Tenn., was sentenced to serve 70 months in federal prison. Upon her release from prison, she will be subject to six years of supervised release, under the supervision of the U.S. Probation Office. Kerry Glenn Nelson, 44, of Morristown, Tenn., was sentenced to serve 48 months in federal prison. Upon his release from prison, he will also be subject to supervised release for three years. Kimberly Ann Vanover, 39, of Tazewell, Tenn., was sentenced to serve 15 months in federal prison. Upon her release from prison, she will be subject to supervised release for four years. On Jan. 27, 2014, Tamara Michelle Moles, 45, of Morristown, Tenn. was sentenced to serve 51 months in federal prison. Upon her release from prison, she will be subject to supervised release for three years. There is no parole in the federal system.
In October 2012 Patterson, Nelson, Vanover, Moles, and eight others were named in an 18-count federal indictment. Charges in the indictment involved drug trafficking of oxycodone, oxymorphone, and methamphetamine, firearms violations, and money laundering. Patterson, Nelson, Vanover, and Moles were each charged with conspiring to distribute oxycodone. Patterson was also charged with conspiring to distribute methamphetamine. Vanover was also charged with distributing oxycodone. The charges initiated from a lengthy investigation of the 12 individuals who traveled by commercial airlines and automobiles to Florida, Tennessee, and Georgia, to obtain oxycodone and other drugs to distribute throughout eastern Tennessee. The total conspiracy involved over 778,000 milligrams of oxycodone, which is the equivalent of nearly 26,000 dose units of 30 milligram oxycodone. All 12 charged in the indictment have been convicted. Two remain to be sentenced in 2014.
U.S. Attorney Bill Killian commended the law enforcement agencies who were involved in this investigation. “Prescription drugs, including oxycodone, continue to be a major problem in east Tennessee. Powerful narcotics are highly addictive and can lead to criminal activity, as evidenced by the extensive efforts of this drug trafficking organization. Our office will continue to work closely with all law enforcement agencies to cut off the illegal supply lines of oxycodone and other prescription narcotics,” stated Killian.
Agencies involved in this investigation included the Tennessee Bureau of Investigation, Morristown Police Department, and Hawkins County Sheriff’s Department. Assistant U.S. Attorney Suzanne Kerney-Quillen represented the United States.
Fort Thompson Man Indicted on Assault Charges and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, Domestic Abuse by an Habitual Offender, and Child Abuse.
Anthony Comes Flying, a/k/a Anthony Miller, age 29, was indicted on January 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $600 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about January 4, 2014, Comes Flying assaulted his dating partner and their two children, when Comes Flying had a final conviction on at least two separate occasions for prior offenses against a spouse or dating partner.
The charges are merely accusations and Comes Flying is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Comes Flying was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Hall Man Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
POCATELLO – U.S. Attorney Wendy J. Olson announced today that Dulton E. Johnson, 23, of Fort Hall, Idaho, pleaded not guilty today to the indictment charging him with assault resulting in serious bodily injury. Johnson was indicted by a federal grand jury in Pocatello on September 10, 2013. Johnson appeared before U.S. Magistrate Judge Ronald E. Bush at the federal courthouse in Pocatello. Trial is set for March 10, 2014, before U.S. District Judge B. Lynn Winmill.
The indictment alleges that Johnson intentionally assaulted another person, which resulted in serious bodily injury, including multiple broken bones.
The charge of assault resulting in serious bodily injury is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Westin San Diego Executive Pleads Guilty to Elaborate EmbezzlementRead the Press Release
United States Attorney Laura E. Duffy announced that Kevin Kelso pled guilty today in federal court before Magistrate Judge William V. Gallo to charges of wire fraud stemming from his employment as a senior finance executive at the Westin San Diego, from which he stole more than a half a million dollars.
According to court records, Kelso was an employee of Interstate Hotels & Resorts and worked as Westin San Diego’s Director of Finance between December 2010 and September 2012. Kelso utilized this position to embezzle funds from the Westin to pay for his own personal expenses. He admitted stealing the money using a variety of means, including abusing the hotel’s change order process (the process by which a hotel exchanges large denomination bills for smaller bills to keep in the hotel safe), obtaining an unauthorized corporate American Express card (which he paid using Westin San Diego’s bank account), and writing checks from Westin San Diego’s bank account to pay himself and third parties for personal expenses. In his plea, Kelso also admitted to concealing the fact that he was taking cash from the hotel’s safe and not making a corresponding deposit during the change order process and making false entries in Westin San Diego’s general ledger.
Kelso further admitted to defrauding his prior employer, the Ann Arbor Marriot Ypsilanti in Michigan, using similar machinations. The total amount of embezzled funds from the two hotels was over $800,000.
The defendant has been released on bond pending sentencing. The guilty plea is not final until it has been accepted by the district court. Kelso is scheduled to be sentenced April 18, 2014 at 9 a.m. before U.S. District Judge Dana Sabraw.
DEFENDANT Case Number: 13CR3017-DMSKevin Kelso
SUMMARY OF CHARGESCounts 1-6: Title 18, United States Code, Section 1343 – Wire Fraud
Forfeiture: Title 18, United States Code, Sections 981(a)(1)(C) and Title 28, United States Code, Section 246
INVESTIGATING AGENCIESUnited States Secret Service
Former School Business Official, and Treasurer of the Carterville School District, Pleads Guilty to Embezzling Funds from the Carterville School DistrictRead the Press Release
Todd Ryan Frazier, 31, of Grand Rapids, Michigan, entered a plea of guilty in federal district court to an Indictment charging Embezzlement and Theft from the Carterville School District - a unit of local government that received federal funds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offense carries a total statutory maximum sentence of up to 10 years in prison, a fine of up to $250,000 and mandatory restitution. Sentencing has been scheduled for May 8, 2014.
“Theft from the taxpayers, whether by force and violence, or with a pen, will not be tolerated.” said United States Attorney Wigginton. “In this and all such cases, my office will seek full restitution, and will aggressively pursue its collection.”
According to information revealed in Court, Frazier, from August 2008, and continuing through February 2012, engaged in a scheme to defraud the Carterville School District, Unit 5, in Williamson County, Illinois, while he was the School Business Official. This job included the duties and responsibilities to act as the treasurer and payroll officer for the district. In Court, the United States indicated that the loss was approximately $114,000.00, and that restitution should include the costs of audits conducted in ascertaining the loss amount. Although Frazier pled guilty to one count of a multiple count indictment, his conduct in the remaining counts is considered as relevant conduct by the Court in determining the appropriate sentence to impose.
The successful prosecution is the result of an investigation conducted by the Federal Bureau of Investigation. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
Former Financial Advisor, Jabari Ragas, Guilty of Embezzling $1.4 Million from ClientsRead the Press Release
JABARI RAGAS, age 40, a resident of New Orleans, Louisiana, pled guilty to money laundering and filing a false tax return in federal court today before United States District Court Judge Lance M. Africk, announced United States Attorney Kenneth Allen Polite, Jr.
According to court documents, RAGAS was employed by Ameriprise Financial Services, Inc. (“Ameriprise”) as a registered broker and investment adviser from 2005 - 2009. RAGAS admitted in court to embezzling nearly $1,400,000 from clients, and failing to pay nearly $260,000 in tax due and owing to the Internal Revenue Service. RAGAS has agreed to pay full restitution.
In early 2006, a client of RAGAS indicated to him that he wished to open a Simplified Employee Pension (“SEP”) account to allow him to contribute towards retirement. The client made contributions from 2006 – 2009. Without authorization, RAGAS began moving money from the Ameriprise SEP account, into an account controlled by RAGAS. The client later checked the account balance and inquired as to why the account balance was lower than it should have been and was told by RAGAS that the funds had been transferred to a different financial institution located in Texas. RAGAS was asked by the client to supply him with written account statements showing the balance, account number, and institution name. RAGAS then supplied the client with a fraudulent account statement for an account that did not exist, along with a fraudulent balance. After using the interstate wire to embezzle funds from the client’s Ameriprise account, RAGAS committed money laundering by further transferring $20,000 into a different account that he controlled.
Additionally, on October 12, 2008, RAGAS signed and filed a 2007 U.S. Individual Income Tax Return (Form 1040) with the Internal Revenue Service. The tax return allegedly did not report approximately $288,000 in income.
RAGAS faces a maximum term of imprisonment of 10 years, on the money laundering count, and a maximum term of imprisonment of 3 years, on the tax count. RAGAS also faces a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person as to the money laundering count. As to the tax count, RAGAS faces a fine of $100,000 together with the costs of prosecution. RAGAS faces a 3 year term of supervised release as to the money laundering count and a 1 year term of supervised release on the tax count, following any term of imprisonment.
The case was investigated by the Special Agents of the Internal Revenue Service and the United States Secret Service, and the prosecution is being handled by Assistant United States Attorney Jon Maestri.
(Download Factual Basis )
Former City of Miami Police Officer Sentenced on Corruption ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department, announce that Vital Frederick, 27, a former City of Miami Police Officer, was sentenced to 81 months in prison, three years of supervised release, fined $16,806.33 and ordered to pay forfeiture in the amount of $1,200.
Vital was previously convicted after a five day trial before U.S. District Judge K. Michael Moore. The jury returned a guilty verdict on all seven counts in the indictment, including four counts of interference with commerce by extortion, one count of access device fraud, and two counts of aggravated identity theft. The defendant provided protection and security for an illegal check cashing scheme and exploited the Police databases to steal identities and sell the identifiers believing they were to be used to commit tax fraud.
U.S. Attorney Wifredo A. Ferrer stated, “There is no compromise when it comes to corruption. It has to be sought out and defeated. As a sworn police officer, Vital Frederick, pledged to protect the public. Instead, he abused that trust to victimize those he swore to protect. The Federal Bureau of Investigation Public Corruption Task Force and this office are committed to rooting out public corruption at all levels. This case is a reminder that no one is above the law.”
“Law enforcement officers have a great responsibility to the public and therefore must be held to a higher standard of integrity,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “The FBI’s Miami Area Corruption Task Force was assembled and designed to ensure that these high standards are met and maintained.”
FBI Public Corruption Task Force and the City of Miami Internal Affairs Section initiated an investigation on former Officer Frederick after receiving a report of Frederick’s suspicious activity while on duty. On four separate occasions, between August 2012 and September 2012, Frederick provided protection for a courier who he believed was cashing fraudulent government checks at the check cashing store. He did so, while in full uniform and while driving his marked City of Miami Police Department vehicle. Frederick, in an effort to further facilitate the criminal activity, escorted the courier away from the check cashing store to give the courier safe passage. In exchange for providing security of the courier, who was purportedly cashing fraudulent government checks at the check cashing store, Frederick took receipt of approximately $800 cash.
In October 2012, Frederick sold the personal identifiers of 52 individuals to a second cooperating source after accessing City of Miami Police Department databases. During the investigation, City of Miami Police Department Internal Affairs Unit covertly monitored Frederick’s Police issued laptop and found that he conducted searches of the victims whose identities he was selling.
Mr. Ferrer commended the investigative efforts of the FBI and the City of Miami Police Department. This case is being prosecuted by Assistant U.S. Attorneys Robin Waugh and Michael Davis.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Business Owner Sentenced for $500,000 Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former business owner was sentenced in federal court today for tax evasion after failing to pay more than $530,000 in taxes owed.
William Fielding Jones, 56, of Clearwater Beach, Fla. (formerly of Kansas City, Mo.), was sentenced by U.S. Chief District Judge Greg Kays to two years in federal prison without parole. The IRS is responsible for collecting $530,059 in restitution.
Jones, who pleaded guilty on Sept. 4, 2013, previously owned two companies – SAM Packaging and Mustang Innovation. Jones admitted that he attempted to evade paying income taxes for tax years 2006-2008, during which time he accumulated a tax debt of $530,059.
Jones evaded paying taxes by concealing bank accounts, changing the name of his business, making payments in cash to avoid using bank accounts, and concealing his true financial condition from the government.
According to court documents, Jones didn’t withhold taxes or make estimated payments from at least 2005 to 2011. During this time, his average annual income was nearly $170,000. After moving to Florida in 2010, Jones lived in a furnished luxury beach condominium in Clearwater with a rent of $2,900 per month. He drove a Lincoln Navigator and Cadillac CTS.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.