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19 March 2014
Bergen County, N.J., Man Pleads Guilty to Making False Report of Kidnapping to U.S. EmbassyRead the Press Release
NEWARK, N.J. — A Bergen County, N.J., man today admitted using the Internet and social media to fabricate a fictitious high school girl, using that fake personality to engage in an online relationship with a teenage male, and then making a false report to a U.S. Embassy that the girl was kidnapped, U.S. Attorney Paul J. Fishman announced.
Andriy Mykhaylivskyy, a/k/a “Andriy Haddad,” 19, of Rutherford, N.J., pleaded guilty today before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with making false statements in a matter within the jurisdiction of the executive branch of the U.S. government.
According to documents filed in this case and statements made in court: Mykhaylivskyy admitted he used Facebook, Twitter, Skype, text messages, and other electronic means to create a fake online identity for a teenage girl he called “Kate Fulton.” He pretended to be Kate Fulton while he initiated and maintained an electronic relationship with “Individual One,” a then18-year-old New Jersey resident.
On July 2, 2013, Mykhaylivskyy called the U.S. Embassy in Chisinau, Moldova, and reported the false kidnapping of Kate Fulton. Mykhaylivskyy also admitted that he both personally, and as Kate Fulton, informed Individual One that Kate Fulton had been kidnapped. On July 8, 2013, Individual One called the U.S. Embassy in Sofia, Bulgaria, seeking assistance regarding the kidnapping of Kate Fulton, who was allegedly kidnapped while vacationing in Burgas, Bulgaria.
Mykhaylivskyy also admitted to sending tweets from Kate Fulton on June 29, 2013, after she was allegedly kidnapped, including one that read “Someone help me.” During his plea hearing, Mykhaylivskyy acknowledged that he knew at all times that Kate Fulton was not a real person and had not been kidnapped.
Mykhaylivskyy admitted one instance of obstruction of justice. During his August 27, 2013, initial appearance in Newark federal court, he was told not to have contact with witnesses. However, upon arriving at jail later that day, he called and spoke to Individual One and told him Kate Fulton had been arrested in California. During the call, Mykhaylivskyy arranged to meet Individual One in person and asked him to delete both Mykhaylivskyy’s and Kate Fulton’s personal Facebook and Twitter accounts.
The charge to which Mykhaylivskyy pleaded guilty is punishable by a maximum of five years in prison and a statutory maximum fine of $250,000. Sentencing is scheduled for June 25, 2014.
U.S. Attorney Fishman credited the U.S. Department of State’s Diplomatic Security Service (DSS) Office of Protective Intelligence Investigations and DS agents assigned to the DSS New York Field Office for their assistance in the investigation leading to today’s guilty plea. He also thanked members of the FBI Newark Joint Terrorism Task Force for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-095Defense counsel: Candace Hom, Assistant Federal Public Defender, Newark
Mykhaylivskyy Information
Beckley Woman Sentenced for Obtaining Oxycodone by FraudRead the Press Release
BECKLEY, W.Va. – Crystal Gail Graham, 38, was sentenced today in Beckley, West Virginia, by United States District Court Judge Irene C. Berger to three years of probation and ordered to perform 100 hours of community service. Graham previously pleaded guilty in November of 2013 to obtaining oxycodone by misrepresentation, fraud, forgery, deception and subterfuge. Graham was employed as a licensed practical nurse at Beckley’s Jackie Withrow Hospital. She used her position at the hospital to illegally obtain oxycodone that she later sold to a confidential informant working with the Raleigh County Sheriff’s Department. Graham’s employment at the hospital was terminated as a result of the incident.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Beaver Woman Sentenced for Selling Oxycodone and AlprazolamRead the Press Release
BEAVER, W.Va. – Leah Kirk, age 21, was sentenced today in Beckley, West Virginia, by United States District Court Judge Irene C. Berger to three years of probation and ordered to perform 100 hours of community service. Kirk previously pleaded guilty in November 2013 to distributing oxycodone, a powerful prescription pain killer. Kirk admitted that between May 15, 2013 and June 12, 2013, she sold several oxycodone pills and alprazolam pills to a confidential informant who was working with the Beckley Police Department and the Raleigh County Sheriff’s Department. The drug sale occurred on Eisenhower Drive in Beckley.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
$1.5M Settlement with West Penn Allegheny Health System Resolves False Claims Act AllegationsRead the Press Release
PITTSBURGH - West Penn Allegheny Health System, Inc. (“WPAHS”) has agreed to pay the United States $1,529,281.50 to settle False Claims Act allegations, United States Attorney David Hickton announced today.
The settlement results from a self-disclosure by WPAHS to the United States Attorney’s Office. Based on information provided by WPAHS, the United States alleged that WPAHS leased space to physicians at below-market rates to induce referrals of patients to WPAHS, in violation of the Anti-Kickback Statute and Stark Law. The United States further alleged that these referrals resulted in improper claims being submitted to federal health care programs.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Stark Law forbids a hospital from billing federally funded programs for certain services referred by physicians who have a financial relationship with the hospital, unless certain limited exceptions apply.
This matter was investigated by the Office of Inspector General of the Department of Health and Human Services and the United States Attorney’s Office for the Western District of Pennsylvania. Assistant United States Attorney David Lew handled this matter on behalf of the United States.
18 March 2014
York Man Sentenced to Prison for Filing Dozens of False Tax ReturnsRead the Press Release
JOHNSTOWN, Pa. - A resident of York, Pa., has been sentenced in federal court to 33 months in prison, three years supervised release, and ordered to pay restitution to the Internal Revenue Service in the amount of $128,105 on his conviction of conspiracy to defraud the government and filing false claims with Internal Revenue Service, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Wendell Parker, 41.
According to information presented to the court, from April 2008 to Oct. 2010 Parker conspired to file 72 false and fictitious income tax returns claiming tax refunds totaling $210,581, and from Dec. 15, 2008, to May 26, 2010, he prepared and filed federal income tax returns claiming refunds knowing the claimant's address, wage information and withholding information was false and fictitious.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Parker.
Worcester Tax Preparer Charged with Tax FraudRead the Press Release
BOSTON – The owner and operator of a Worcester tax preparation business was arrested yesterday and charged with tax fraud.
Yaw Aboagye- Marfo was indicted on 23 counts of tax fraud. Between 2009 and 2012, Marfo, the owner and operator of a tax preparation business, variously called “People’s Choice Tax Service” and “National Taxpert,” with locations in Worcester and outside of Boston, filed false tax returns seeking refunds for individuals who were not entitled to tax refunds. Marfo also prepared false tax returns for clients and falsely reported that those clients owned sole proprietorship businesses.
If convicted, Marfo faces a maximum sentence of five years in prison and a $250,000 fine on each count of filing false claims.
Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division, United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revue Service’s Criminal Investigation in Boston, made the announcement. The case is being prosecuted by Assistant Chief Karen Kelly and Trial Attorney Sean Delaney of the Department’s Tax Division.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wheeling Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV – A Wheeling man was sentenced by Judge Frederick P. Stamp, Jr. for failure to register as a sex offender and two others entered pleas of guilty.
United States Attorney William J. Ihlenfeld, II announced that: JONAH L. BEGAY, age 38, a sex offender from Utah who moved to Wheeling last year, was sentenced to 30 months in prison and five years of supervised release for "Failure to Register and Update Registration as a Sex Offender." BEGAY was previously convicted in Utah District Court of “Attempted Sexual Abuse of a Child” and as a result is required to register as a sex offender under both state and federal law. His conviction in Utah involved a 10-year old victim. On November 11, 2013, police officers were advised that an individual later identified as Mr. BEGAY was being aggressive and appeared to be intoxicated in an area near Bridge Street Middle School. Officers responded and arrested BEGAY and then learned that he had moved to Wheeling in June, and in October began working at the McDonald’s restaurant in the Elm Grove section of Wheeling. At no point did BEGAY update his registration with the State of Utah nor did he register in the State of West Virginia. BEGAY was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and investigated by the United States Marshals Service and the West Virginia State Police.
JAVON L. SCOTT, age 28, of Wellsburg, West Virginia, entered a plea of guilty “Felon in Possession of a Firearm.” SCOTT, who is in custody pending sentencing, faces up to 10 years in prison. This case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
KRISTEN NIEMAN, age 22, of Benwood, West Virginia, entered a plea of guilty to “Aiding and Abetting the Distribution of Oxycodone within 1,000 Feet of the Moundsville Middle School.” NIEMAN, who is in custody pending sentencing, faces up to 40 years in prison. This case was prosecuted by Assistant U.S. Attorney Robert H. McWilliams, Jr. and was 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.
The following appeared before Magistrate Judge James E. Seibert:
MARK TUCKER, age 44, of Wheeling, entered a plea of guilty to “Obtaining a Controlled Substance by Forgery.” As part of his plea, TUCKER will make restitution to Wheeling Hospital in the amount of $2,923. This case was prosecuted by Assistant U.S. Attorney Michael D. Stein and investigated by the Marshall County Sheriff’s Department.
West Virginia Woman Facing Fraud Charges for Nigerian "Mystery Shopper" ScamRead the Press Release
PITTSBURGH - A West Virginia woman has been indicted by a federal grand jury in Pittsburgh on charges of fraud conspiracy and wire fraud, United States Attorney David J. Hickton announced today.
The two-count indictment named Linda Walker, 60, as a defendant.
According to the indictment, Walker was involved in a Nigerian “Mystery Shopper” scam whereby she knowingly prepared and addressed fraudulent mail containing counterfeit instruments to victims, who believed they were acting as mystery shoppers. The victims unwittingly received the counterfeit commercial and Postal money orders and checks and cashed them to make small purchases for purposes of evaluating the commercial services provided. They then wire transferred excess funds back to Walker and others. After these transactions, the money orders and checks were returned as counterfeit by the victims’ banks and they were left to repay the bank from their own funds.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Who Conspired in Identity Theft Scheme Sentenced to Nearly Four Years in Federal PrisonRead the Press Release
LOUISVILLE, Ky. – Two Louisville residents were sentenced today by Senior U.S. District Judge Thomas B. Russell to 42 months in prison, for their roles in a conspiracy to commit wire fraud and aggravated identity theft announced David J. Hale, United States Attorney for the Western District of Kentucky.
Darnell Brown, age 28 , and Tierra Beans, age 30, received 18 months for wire fraud, to be served consecutively to 24 months for aggravated identity theft for a total of 42 months in prison followed by a term of supervised release for 3 years and ordered to pay $16,554.58 in restitution.
Brown and Beans admitted in court to using the personal identifier of a real person, to open fraudulent lines of credit at Best Buy and J.C. Penney and thereby defrauded HSBC Bank and GE Capital Bank. The lines of credit were opened in Louisville, Kentucky, to purchase merchandise causing an interstate wire communications. The total loss amount was $17,248.25.
The defendants agreed to forfeit two Apple Ipads, one Best Buy Gift Card ($200), two Olive Garden Gift Cards ($25), on J.C. Penny Gift Card ($350), three J.C. Penny Gift Cards ($500) and various fraudulent identification cards.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the United States Secret Service.
Three Individuals Convicted on Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA – Four individuals entered pleas of guilty before Magistrate Judge John S. Kaull on drug-related charges.
United States Attorney William J. Ihlenfeld, II, announced that:
JASON DWIGHT MACKENZIE, age 33, of Elkins, entered a plea of guilty to “Distribution of Buprenorphine.” MACKENZIE, who is free on bond pending sentencing, faces up to 10 years in prison. This case was prosecuted by U.S. Attorney Ihlenfeld.
KEITH ALLEN POTEETE, age 48, of Elkins, entered a plea of guilty to “Distribution of Buprenorphine within 1,000 feet of the Davis Street Park Playground.” POTEETE, who is free on bond pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant U.S. Attorney Stephen D. Warner.
These two cases were the result of the work of the Mountain Region Drug and Violent Crime Task Force, consisting of officers from the West Virginia State Police-Bureau of Criminal Investigations, U.S. Forest Service, Randolph County Sheriff’s Department, Tucker County Sheriff’s Department and the DEA, assisted by the DEA Tactical Diversion Squad.
DENNIS LYNN SMITH, age 56, of Upper Tract, West Virginia, entered a plea of guilty to “Maintaining Drug-Involved Premise” for the purpose of storing, manufacturing and using methamphetamine. SMITH, who is free on bond pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant U.S. Attorney Andrew R. Cogar and investigated by the West Virginia State Police.Tax Preparer Pleads Guilty to Income Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that KENNETH ZITO, 51, of Wethersfield, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of tax evasion.
According to court documents and statements made in court, ZITO worked at Daniel Zito Financial Services, a South Windsor commercial financial services firm owned by ZITO’s father, where ZITO prepared tax returns for individuals and businesses. Although ZITO and his father worked together, they submitted client tax returns separately. Between 2007 and 2009, ZITO cashed checks he received from clients as payment for his services, but did not deposit the checks or declare them on his federal income tax return. In pleading guilty, ZITO admitted that he failed to report $219,759.32 in income during that three-year period, and that he owes the Internal Revenue Service $59,621 in back taxes, as well as interest and penalties.
ZITO’s sentencing is scheduled for June 10, 2014 before Senior U.S. District Judge Alfred V. Covello in Hartford, at which time ZITO faces a maximum term of imprisonment of five years and a fine of up to $100,000.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
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(203) 821-3722 [email protected]Tampa Man Took $3.9M from More Than Three Dozen InvestorsRead the Press Release
PITTSBURGH - A resident of Tampa, Fla., pleaded guilty in federal court to a charge of wire fraud, United States Attorney David J. Hickton announced today.
Fotios Geivelis, Jr., a/k/a Frank Geivelis, a/k/a Frank Anastasio, 34, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Geivelis, through operation of his Florida company, Worldwide Funding III, Ltd. (WWF), obtained approximately $3.9 million in increments of $60,000 or $90,000 from more than three dozen investors, to each of whom he promised to obtain a $10 million “non-recourse” overseas loan for a “humanitarian” or “job- creating” project. The funds were wired into the escrow accounts of a Florida attorney Geivelis designated as the “Paymaster,” and thereafter paid out to that attorney, brokers who had referred the investors to WWF and to Geivelis, who spent his share on personal expenses such as hotels, casinos, restaurants, strip clubs, automobiles, clothing and jewelry. No loans were ever obtained for the investors, who Geivelis attempted to lull by repeated assurances that their deals would close within a short period of time. .
Judge Fischer scheduled sentencing for July 31, 2014 at 9:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Geivelis.
Suspect Charged in Clinton, Iowa Bank RobberyRead the Press Release
DAVENPORT, IA – On January 22, 2014, a federal grand jury returned an indictment charging Shane Roger Hoiland, age 21, with the February 25, 2013, bank robbery of the Clinton National Bank, announced United States Attorney Nicholas A. Klinefeldt. Hoiland made his initial appearance in the United States District Court for the Southern District of Iowa in Des Moines, Iowa, on March 13, 2014. He is being held in custody pending resolution of the case. Hoiland faces a maximum term of imprisonment of twenty years and a maximum fine of $250,000.
As in all criminal cases, the indictment is merely an allegation. The defendant is presumed to be innocent until proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Clinton, Iowa, Police Department, and is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Any media inquiries should be directed to Kevin VanderSchel, First Assistant United States Attorney, at the contact number provided above.
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Straw Owner of Clinic Sentenced in Medicare Fraud SchemeRead the Press Release
A Florida man who had been the straw owner of a physical therapy rehabilitation facility has been sentenced to serve 30 months in prison for his role in a $28.3 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida A. Lee Bentley III, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Acting Special Agent in Charge Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Roberto Fernandez Gonzalez, 63, formerly of southwest Florida, was sentenced by U.S. District Judge Susan C. Bucklew in the Middle District of Florida and was ordered to forfeit $446,738 and pay the same amount in restitution. Fernandez pleaded guilty on June 24, 2013, to conspiracy to commit health care fraud.
According to court documents, Fernandez and his co-conspirators used various physical therapy clinics and other business entities throughout Florida – including Rehab Dynamics Inc. in Venice, Fla. – to submit approximately $28.3 million in fraudulent reimbursement claims to Medicare from 2005 through 2009. Medicare paid approximately $14.4 million on those claims.
Fernandez’s co-conspirators obtained and controlled Rehab Dynamics. They engaged in a sham sale of Rehab Dynamics to Fernandez, a Cuban immigrant with no background in the health care industry. Fernandez did not have the money to buy Rehab Dynamics. Instead, the co-conspirators paid Fernandez approximately $20,000 to serve as the straw owner of Rehab Dynamics from January 2008 through March 2008. During that time, Rehab Dynamics submitted approximately $1.6 million in fraudulent claims to Medicare seeking reimbursement for rehabilitation therapy services that were not provided. Medicare paid approximately $446,738 on those false claims.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorneys Christopher J. Hunter and Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant United States Attorney Simon A. Gaugush of the U.S. Attorney’s Office for the Middle District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .Straw Owner of Clinic Sentenced in Medicare Fraud SchemeRead the Press Release
WASHINGTON – A Florida man who had been the straw owner of a physical therapy rehabilitation facility has been sentenced to serve 30 months in prison for his role in a $28.3 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida A. Lee Bentley III, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Acting Special Agent in Charge Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Roberto Fernandez Gonzalez, 63, formerly of southwest Florida, was sentenced by U.S. District Judge Susan C. Bucklew in the Middle District of Florida and was ordered to forfeit $446,738 and pay the same amount in restitution. Fernandez pleaded guilty on June 24, 2013, to conspiracy to commit health care fraud.
According to court documents, Fernandez and his co-conspirators used various physical therapy clinics and other business entities throughout Florida – including Rehab Dynamics Inc. in Venice, Fla. – to submit approximately $28.3 million in fraudulent reimbursement claims to Medicare from 2005 through 2009. Medicare paid approximately $14.4 million on those claims.
Fernandez’s co-conspirators obtained and controlled Rehab Dynamics. They engaged in a sham sale of Rehab Dynamics to Fernandez, a Cuban immigrant with no background in the health care industry. Fernandez did not have the money to buy Rehab Dynamics. Instead, the co-conspirators paid Fernandez approximately $20,000 to serve as the straw owner of Rehab Dynamics from January 2008 through March 2008. During that time, Rehab Dynamics submitted approximately $1.6 million in fraudulent claims to Medicare seeking reimbursement for rehabilitation therapy services that were not provided. Medicare paid approximately $446,738 on those false claims.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorneys Christopher J. Hunter and Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant United States Attorney Simon A. Gaugush of the U.S. Attorney’s Office for the Middle District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
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Stamford Man Sentenced to Four Years in Federal Prison for Distributing CrackRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TERRELL WILLS, 40, of Stamford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 48 months of imprisonment, followed by four years of supervised release, for his role in a southwestern Connecticut narcotics trafficking ring.
This matter stems from a six-month investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, 20 individuals have been charged in federal court with various offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford.
During the investigation, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, the investigation revealed that Marvin Wooten, also known as “Smash,” of Norwalk, was operating a significant crack cocaine distribution ring in Fairfield County. Between September 2012 and January 2013, Wooten regularly purchased multi-hundred gram quantities of cocaine from various sources of supply, including individuals who were selling cocaine out of a Bridgeport barbershop. He then converted the cocaine to crack cocaine and distributed it to other dealers and customers. WILLS regularly purchased crack cocaine from Wooten’s associate, Gary England, and then sold the drug to his own customers.
On September 12, 2013, WILLS pleaded guilty to one count of possession with the intent to distribute cocaine base (“crack cocaine”).
Wooten and England also pleaded guilty. On May 22, 2013, Wooten was sentenced to 120 months of imprisonment. England awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – including the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The U.S. Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.
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(203) 821-3722 [email protected]Southern Oregon Sex Offender Sentenced to 37 Years in Federal Prison for Producing Child PornographyRead the Press Release
MEDFORD, Ore.—On Monday, March 17, 2014, Senior U.S. District Judge Owen M. Panner sentenced Christopher Keith Hammer, 43, of Central Point, Oregon, to 37 years in federal prison for production of child pornography.
In February 2013, a nationwide FBI child pornography investigation revealed that sexually explicit photos of a four year old child were being distributed from an e-mail account linked to Hammer’s residence. The Southern Oregon High Tech Crimes Task Force (SOHTCTF) executed a search warrant at Hammer’s residence, identified the child, and matched the clothing and furniture depicted in the sexually explicit photos. Hammer was arrested immediately. Hammer’s e-mail account contained several thousand images of child pornography, along with dozens of photos of the four year old child in sexually explicit poses, which Hammer took over the course of a year. Hammer e-mailed the photos to several other child molesters he met online, and described his ongoing sexual abuse of the child, and his plans to take photos and videos of the sexual abuse. Hammer also indicated a desire to sexually abuse other children, and encouraged other child molesters to sexually abuse their own children and send photos of the abuse to Hammer.
Hammer has two previous felony convictions in California for Lewd and Lascivious Acts Upon a Child Under 14 in 1994, in which he sexually abused his six year old and eight year old relatives. Under federal law, any person who produces child pornography after two previous felony convictions for child sex abuse faces a mandatory minimum of 35 years in prison.
“These pictures represent the worst type of child sex offender—one who not only sexually exploits children, but also documents and shares his experiences with others, and encourages others to do the same, “” said U. S. Attorney Amanda Marshall. “The severe penalties imposed by federal law are well deserved and necessary to protect our most vulnerable victims--children.”
This case was investigated by the SOHTCTF, a multi-jurisdictional computer crimes task force comprised of the FBI, Department of Homeland Security, Central Point PD, Medford PD, Ashland PD, Jackson County Sheriff's Office, and the Jackson County District Attorney's Office, and was prosecuted by Assistant U. S. Attorney Douglas W. Fong.
Singapore Executive Is Second to Plead Guilty in International Navy Corruption Scandal; Admists Bilking U.S. Navy of More Than $20 MillionRead the Press Release
SAN DIEGO - Alex Wisidagama, a former executive with Glenn Defense Marine Asia (GDMA), pleaded guilty today to participating in a scheme to defraud the United States, admitting that he and others duped the U.S. Navy into overpaying by at least $20 million for supplies and services to American ships in Asian ports.
Wisidagama’s plea is the second in an extensive international fraud and bribery scandal that has ensnared GDMA employees and several U.S. Navy officials. The government has alleged that Wisidagama’s cousin and owner of GDMA, Leonard Glenn Francis, bribed Navy officials with luxury travel and prostitutes in exchange for confidential information and other assistance in winning and retaining hundreds of millions of dollars in Navy contracts.
In his plea agreement, Wisidagama, 40, of Singapore, admitted that he and others used numerous methods to trick the Navy into overpaying for things like fuel and port fees. According to his plea agreement, Wisidagama and others submitted fraudulent or inflated invoices to the Navy; offered up phony competitive bids from non-existent companies so GDMA could win every time; and created fictitious port authorities with significantly inflated port tariff rates.
For example, the plea agreement describes details of the USS Mustin’s visit to Laem Chabang, Thailand, in the fall of 2011. GDMA billed the Navy $2.3 million for fuel that really cost $900,000 and $133,232 for “port dues” that really cost $6,849. The overcharges totaled $1.5 million.
“Wisidagama and others were creative, deceitful and audacious in their efforts to manipulate the Navy and steal millions of dollars from U.S. taxpayers,” said U.S. Attorney Laura Duffy. “This plea is an important development in our ongoing case, and we will continue to pursue all avenues.”
“Today's guilty plea of former Glenn Defense Marine Asia Vice President Alex Wisidagama is part of a far reaching corruption investigation by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and the Defense Contract Audit Agency,” said James B. Burch, Deputy Inspector General for Investigations, Office of the Inspector General, Department of Defense. “Corrupt contracting practices damage the public trust and ultimately undermine the efforts of the Department of Defense to support our men and women in uniform. Along with our law enforcement partners, we make the investigation of such offenses a top priority. Cases such as these are not motivated by need or other difficult personal circumstances; they are the product of simple greed.”
NCIS Director Andrew L. Traver said: “Special Agents from the Naval Criminal Investigative Service and the Defense Criminal Investigative Service have worked diligently with support from the Defense Criminal Audit Agency, our foreign law enforcement partners, and the Department of Justice to uncover the fraud committed by Alex Wisidagama and his co-conspirators. Today’s guilty plea highlights the strength of the evidence, and our investigative team continues to aggressively pursue all leads related to GDMA.”
The plea was accepted by U.S. Magistrate Judge Jan M. Adler and is subject to acceptance by U.S. District Judge Janis L. Sammartino. Sentencing was set for June 13, 2014 at 9 a.m. before Judge Sammartino.
Wisidagama, who was arrested in San Diego, California, on September 16, 2013, served as the general manager of Global Government Contracts for GDMA. GDMA was a multi-national corporation with headquarters in Singapore and operating locations in other countries, including Japan, Singapore, Thailand, Malaysia, Korea, India, Hong Kong, Indonesia, Australia, Philippines, Sri Lanka and the United States. GDMA provided hundreds of millions of dollars in husbanding services to the U.S. Navy, such as the coordinating, scheduling and procurement of items and services required by ships and submarines when they arrive at port. These services included providing tugboats; paying port authority and customs fees; furnishing security and transportation; supplying provisions, fuel and water; removing trash and collecting liquid waste.
Wisidagama is the second defendant to plead guilty as part of this investigation. On December 17, 2013, former NCIS Supervisory Special Agent John Bertrand Beliveau Jr. pleaded guilty to conspiracy to commit bribery and bribery charges after admitting to providing Francis with sensitive law enforcement information in exchange for things of value such as cash, luxury travel accommodations, lavish dinners and prostitutes. In addition to Beliveau and Wisidagama, Francis and U.S. Navy Commanders Michael Vannak Khem Misiewicz and Jose Luis Sanchez have been charged as part of the bribery scheme.
The ongoing investigation is being conducted by the Naval Criminal Investigative Service, the Defense Criminal Investigative Service and the Defense Contract Audit Agency. The case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California and Director of Procurement Fraud Catherine Votaw and Trial Attorneys Brian Young and Wade Weems of the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case No. 13cr4043-JLS Alex Wisidagama Age: 40 Singapore CHARGESConspiracy to Defraud the United States in violation of 18 USC 286
INVESTIGATING AGENCY
Maximum of 10 years in prison; a maximum $250,000 fine, or twice the gross gain or loss from the offense, whichever is greaterDefense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
San Jose CPA Sentenced to Forty-One Months in Prison for Tax FraudRead the Press Release
SAN JOSE – Steven Frank Boitano was sentenced yesterday to forty-one months in prison, and ordered to pay $181,910 in restitution, for filing false tax returns for several years, and failing to file tax returns for several other years, announced United States Attorney Melinda Haag and Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division.
Boitano, 58, of San Jose, was indicted on August 25, 2011. On August 9, 2013, Boitano pleaded guilty to counts four, five, and six of the indictment, charging him with failing to file federal income tax returns for 2005, 2006, and 2007. On August 19, 2013, a jury convicted Boitano of the three remaining counts in the indictment, charging him with filing false tax returns for 2001, 2002, and 2003.
According to evidence presented at trial, Boitano was a certified public accountant and partner with the accounting firm of Boitano, Sargent & Lily. In this role, Boitano provided tax return preparation and other accounting related services to his clients, and was also responsible for preparing the tax returns for his accounting firm. Boitano’s gross annual income from 2001 through 2007 was at least $275,000. Between 1991 and 2007, Boitano failed to timely file his individual federal income tax returns. Instead, he submitted requests for extensions of time, frequently along with partial payments. Thereafter, as the extended due dates for each year passed, Boitano failed to file his tax returns. Boitano was audited by the IRS at least twice between 1991 and 2007. Nevertheless, Boitano continued to fail to file income tax returns.
In June, 2009, the case was assigned to an IRS revenue agent. During a meeting with the revenue agent on September 4, 2009, Boitano filed federal income tax returns for 2001, 2002, and 2003. On each of these tax returns, Boitano fraudulently reported making estimated tax payments of $26,000, $38,000, and $57,000, respectively, which he never actually made. As a result of these fabricated estimated tax payments, each return claimed a refund to which Boitano was not entitled.
The sentence was handed down by the Honorable Edward J. Davila, United States District Court Judge. Judge Davila also sentenced the defendant to a one-year period of supervised release and a $10,000 fine. The defendant will begin serving the sentence on May 29, 2014.
Assistant United States Attorney Michael G. Pitman and Trial Attorney Charles O’Reilly of the Justice Department Tax Division are prosecuting the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
(Boitano unsealed indictment )
Romanians Used Skimmers at Postal Centers to Steal Customers' Bank InfoRead the Press Release
PITTSBURGH - Two Romanians residing in Pittsburgh pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Florin Popescu, 31, and Ion Carligeriu, 29, pleaded guilty to one count before United States District Judge Mark Hornak.
In connection with the guilty plea, the defendants conspired to produce ATM skimming equipment which they installed on APC kiosks at Postal Centers on McKnight Road and in Squirrel Hill, which were designed to steal customers’ bank account information.
Judge Hornak scheduled Florin Popescu’s sentencing for July 17, 2014, at 11 a.m., and Ion Carligeriu’s sentencing for July 17, 2014, at 9 a.m. The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, the United States Secret Service and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation that led to the prosecution of these defendants.
Postal Worker Charged with Taking $20 from Greeting CardRead the Press Release
PITTSBURGH - A U.S. Postal Service employee has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal law, United States Attorney David J. Hickton announced today.
The one-count indictment named Pamela D. Vogt, 44, of Parker, Pa., as the sole defendant.
According to the indictment presented to the court, on or about Feb. 6, 2014, Vogt, while working as a U.S. Postal Service employee, removed a $20 bill from a greeting card contained in an envelope which was addressed and intended for delivery by the U.S. Postal Service.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Bond of $5,000 unsecured has been requested.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service-Office of Inspector General (USPIS) conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Bankrupt Young Oil Company Guilty of Securities Fraud, Mail Fraud,Failure to File Income Tax Returns, and Illegal Possession of A FirearmRead the Press Release
LOUISVILLE, Ky. – The owner of bankrupt Young Oil Company pleaded guilty today, in United States District Court, to charges in three separate indictments including failure to file an income tax return with the Internal Revenue Service, mail fraud in connection with the solicitation of investor funds for oil drilling partnerships, securities fraud, submitting false statements for the purchase of a firearm, and for the illegal possession of a firearm by a person addicted to controlled substances announced David J. Hale, United States Attorney for the Western District of Kentucky.
Anthony L. Young, 54, of Metcalfe County, Kentucky admitted in court that from November 2007 through December 2008, he fraudulently solicited investments through his company, Young Oil Corporation. According to the plea agreement, Young falsely represented the cost to investors in three separate oil drilling partnerships. Investors believed the $750,000 solicited for each oil well represented the total drilling costs. However, Young admitted to using the majority of the money for other purposes including personal. Also, during this same period, Young, by use of the United States mail, did defraud others, make untrue statements of material fact, and engage in acts, that operated as a fraud and deceit upon investors under programs under Young Oil Corporation with the purchase and sale of a security. Young did this by misrepresenting the total costs for each of the three Prospects and by misrepresenting his actual use of investor money.
Young also admitted that he failed to file federal income tax returns as required by law for calendar years 2005 and 2006. During this time Young received taxable income of $496,000 in 2005, and his tax due was $133,943. In calendar year 2006, Young received taxable income of $1,167,000, and, was therefore legally required to file a federal income tax return. His tax due was $359,485 for 2006.
Young also pleaded guilty today in court to two charges in a third indictment. Young admitted that on June 7, 2010, in Metcalf County, Kentucky, he caused another person to knowingly make a false statement and representation on an ATF Form 4473 in purchasing a .45 caliber pistol from a licensed firearms dealer and that he possessed the Hi-Point, Model JHP, .45 caliber pistol while being a person addicted to controlled substances, including cocaine and oxycodone.
At sentencing, Young faces a combined maximum term of 57 years in prison, a combined maximum fine of $1,200,000 and a three year term of supervised release. Sentencing is scheduled before Senior U.S. District Judge Thomas B. Russell on July 17, 2014, Louisville, Kentucky.
Young was found guilty in 2009, in Franklin County, Kentucky Circuit Court of violating the Kentucky Securities Act and committing fraud.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Kentucky Department of Financial Institutions, Division of Securities, the Internal Revenue Service Criminal Investigation Division, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Osteopathic Physician Arrested on Health Care Fraud ChargesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID LESTER JOHNSTON, 45, of Ridgefield, was arrested today on federal health care fraud charges. On March 12, 2014, a federal grand jury sitting in Hartford returned an indictment charging JOHNSTON with 14 counts of health care fraud and 14 counts of making false statements relating to health care matters.
JOHNSTON, an osteopathic physician, owns and operates Osteopathic Wellness Center, LLC, located at 158 Danbury Road in Ridgefield. The indictment alleges that JOHNSTON engaged in a scheme to defraud Medicare and several private health insurance companies by billing for osteopathic and physical therapy services that he did not perform, and by misrepresenting the nature of the services that were performed.
JOHNSTON appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty. He was released on a $100,000 bond.
If convicted, JOHNSTON faces a maximum term of imprisonment of 10 years and a fine of up to $250,000 on each of the health care fraud counts, and a maximum term of imprisonment of five years and a fine of $250,000 on the false statements counts.
The case has been assigned to U.S. District Judge Robert N. Chatigny in Hartford.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Michael W. Ahearn and Auditor Kevin A. Saunders.
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(203) 821-3722 [email protected]Newark Man Sentenced to 57 Months in Prison for Scheme to Steal Checks from MailRead the Press Release
Deposited Hundreds of Thousands of Dollars into Personal Accounts
NEWARK, N.J. - A Newark man was sentenced today to 57 months in prison for his role in a scheme to steal personal checks from the U.S. Mail and fraudulently endorse and deposit them into personal checking accounts, U.S. Attorney Paul J. Fishman announced.Karron Hinton-Lovelace, 28, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Hinton-Lovelace and his conspirators stole blank checks that were sent via U.S. Mail to 122 unsuspecting victims. The defendants fraudulently endorsed the blank checks for a certain sum and deposited those checks into legitimate bank accounts that they opened at the victim banks, which included TD Bank, Bank of America, Capital One Bank, Garden State Community Bank, Hudson City Savings Bank, PNC Bank and Valley National Bank. Before the victims discovered the checks were stolen or the banks discovered the checks were fraudulent, Hinton-Lovelace and his co-conspirators had withdrawn the funds, either via ATMs or by entering the banks and filling out withdrawal slips. U.S. Postal Inspection Service and FBI agents obtained bank video surveillance, which captured many of the fraudulent deposits and withdrawals.
Hinton-Lovelace and his conspirators deposited $1,478,695 in fraudulent checks into y 258 different bank accounts. Their conduct resulted in a $648,194 loss.
In addition to the prison term, Judge McNulty sentenced Hinton-Lovelace to five years of supervised release. As part of his plea agreement, Hinton-Lovelace agreed to pay $648,194 in restitution to the victims.
Several of Hinton-Lovelace’s conspirators have pleaded guilty to conspiracy to commit bank fraud and been sentenced to prison terms for their roles in the scheme. Four defendants were sentenced in April 2013. Constance Bowles, 23, of Newark, was sentenced to 6 months in prison and six months in a halfway house. Garnet Hinton, 24, Union, and Keonnah McLean, 24, Newark, were each sentenced to 23 months in prison. Martell Arline, 23, of Newark, was sentenced to 36 months in prison.
Kurtis Steele, 27, of Irvington, was sentenced to 46 months in prison on May 29, 2013, and Guy Hicks, 51, of Newark, was sentenced to 36 months in prison on Oct. 9, 2013.
U.S. Attorney Fishman credited special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; and special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the Organized Crime/Gangs Unit in Newark.
14-092
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, NewarkMember of FARC Terrorist Organization Pleads Guiltyto Hostage-Taking Charges in 2003 Capture of U.S. CitizensRead the Press Release
Alexander Beltran Herrera, 37, a commander of the FARC terrorist organization, pleaded guilty today in the U.S. District Court for the District of Columbia to hostage-taking charges stemming from the 2003 kidnappings of three U.S. citizens in Colombia.
The guilty plea was announced by John P. Carlin, Acting Assistant Attorney General for the Justice Department’s National Security Division; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; and George L. Piro, Special Agent in Charge of the FBI’s Miami Division.
Beltran Herrera pleaded guilty to three counts of hostage-taking. He is to be sentenced July 25, 2014, by the Honorable Royce C. Lamberth. The offense of hostage taking carries a maximum sentence of life in prison, although as part of the extradition process from Colombia, the United States agreed not to seek a sentence exceeding 60 years.
According to a statement of facts submitted as part of the plea hearing, t he FARC is an armed, violent organization in Colombia, which since its inception in 1964, has engaged in an armed conflict to overthrow the Republic of Colombia, South America’s longest-standing democracy. The FARC has consistently used hostage taking as a primary technique in extorting demands from the Republic of Colombia, and hostage taking has been endorsed and commanded by FARC senior leadership. The FARC has characterized American citizens as “military targets” and has engaged in violent acts against Americans in Colombia, including murders and hostage taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
Beltran Herrera, a commander in the FARC, was involved in the hostage taking of three United States citizens: Marc D. Gonsalves, Thomas R. Howes, and Keith Stansell. These three, along with Thomas Janis, a United States citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC, after their single-engine aircraft made a crash landing in the Colombian jungle.
Members of the FARC murdered Mr. Janis and Sgt. Cruz at the crash site. Mr. Gonsalves, Mr. Howes, and Mr. Stansell were held by the FARC at gunpoint and were advised by FARC leadership that they would be used as hostages to increase pressure on the government of Colombia to agree to the FARC’s demands. At various times, the FARC marched the hostages from one site to another, placing them in the actual custody of various FARC fronts.
At the conclusion of one 40-day long march, in or about November 2004, the hostages were delivered to members of the FARC’s 27th Front, who imprisoned the hostages for nearly two years. During part of this period, Beltran Herrera was responsible for moving the hostages and keeping them imprisoned. Throughout the captivity of these three hostages, FARC jailors and guards used choke harnesses, chains, padlocks and wires to restrain the hostages, and used force and threats to continue their detention and prevent their escape. In July 2008, the Colombian military conducted a daring operation which resulted in the rescue of the hostages.
All told, members of the FARC held the Americans hostage for 1,967 days.
“This case underscores our resolve to hold accountable those who target our citizens with violence anywhere in the world,” said Acting Assistant Attorney General Carlin. “With this guilty plea, Alexander Beltran Herrera has admitted his participation in the hostage taking and captivity of three Americans by the FARC, a Colombian terrorist organization. I want to thank all of the prosecutors, agents, and analysts who made this result possible.”
“Alexander Beltran Herrera was a terrorist and commander in the FARC organization who held three Americans hostage in the Colombian jungle,” said U.S. Attorney Machen. “With today's guilty plea, he admitted to his role in terrorizing these Americans, who were held in captivity for more than five years. His extradition and prosecution reflect our determination to bring to justice anyone who sets out to harm our fellow citizens overseas.”
“Alexander Beltran Herrera was a commander within FARC, a foreign terrorist organization based in Colombia that considered U.S. citizens to be targets for murder and hostage taking,” said Special Agent in Charge Piro. “First captured, then extradited to the United States, Herrera has now admitted to his role in moving and keeping hostage three American citizens, Marc D. Gonsalves, Thomas R. Howes and Keith Stansell. Once again, the excellent, longstanding cooperation between the Colombian National Police and U.S. law enforcement has ended another terrorist’s career of violence and thuggery.”
This case was investigated by the FBI’s Miami Division. The prosecution is being handled by Assistant U.S. Attorneys Anthony Asuncion and Fernando Campoamor-Sanchez from the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney David Cora, from the Counterterrorism Section of the Justice Department’s National Security Division. The case was indicted by Assistant U.S. Attorney Kenneth Kohl, of the National Security Section of the U.S. Attorney’s Office.
The FBI’s Miami Division partnered in the investigation with the Justice Department’s Office of International Affairs, the Department’s Judicial Attachés in Colombia, and the FBI’s Office of the Legal Attaché in Bogota, Colombia. The Directorate of Intelligence (DIPOL) and the Anti-Kidnapping Unit (GAULA) of the Colombian National Police also provided valuable support during the investigation.Member of FARC Terrorist Organization Pleads Guilty to Hostage-Taking Charges in 2003 Capture of U.S. CitizensHostages Were Held in Colombia for More Than Five YearsRead the Press Release
WASHINGTON – Alexander Beltran Herrera, 37, a commander of the FARC terrorist organization, pled guilty today in the U.S. District Court for the District of Columbia to hostage-taking charges stemming from the 2003 kidnappings of three U.S. citizens in Colombia.
The guilty plea was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John P. Carlin, Acting Assistant Attorney General for National Security; and George L. Piro, Special Agent in Charge of the FBI’s Miami Division.
Beltran Herrera pled guilty to three counts of hostage-taking. He is to be sentenced July 25, 2014, by the Honorable Royce C. Lamberth. The offense of hostage taking carries a maximum sentence of life in prison, although as part of the extradition process from Colombia, the United States agreed not to seek a sentence exceeding 60 years.
According to a statement of facts submitted as part of the plea hearing, the FARC is an armed, violent organization in Colombia, which since its inception in 1964, has engaged in an armed conflict to overthrow the Republic of Colombia, South America’s longest-standing democracy. The FARC has consistently used hostage taking as a primary technique in extorting demands from the Republic of Colombia, and hostage taking has been endorsed and commanded by FARC senior leadership. The FARC has characterized American citizens as “military targets” and has engaged in violent acts against Americans in Colombia, including murders and hostage taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
Beltran Herrera, a commander in the FARC, was involved in the hostage taking of three United States citizens: Marc D. Gonsalves, Thomas R. Howes, and Keith Stansell. These three, along with Thomas Janis, a United States citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC, after their single-engine aircraft made a crash landing in the Colombian jungle.
Members of the FARC murdered Mr. Janis and Sgt. Cruz at the crash site. Mr. Gonsalves, Mr. Howes, and Mr. Stansell were held by the FARC at gunpoint and were advised by FARC leadership that they would be used as hostages to increase pressure on the government of Colombia to agree to the FARC’s demands. At various times, the FARC marched the hostages from one site to another, placing them in the actual custody of various FARC fronts.
At the conclusion of one 40-day long march, in or about November 2004, the hostages were delivered to members of the FARC’s 27th Front, who imprisoned the hostages for nearly two years. During part of this period, Beltran Herrera was responsible for moving the hostages and keeping them imprisoned. Throughout the captivity of these three hostages, FARC jailors and guards used choke harnesses, chains, padlocks and wires to restrain the hostages, and used force and threats to continue their detention and prevent their escape. In July 2008, the Colombian military conducted a daring operation which resulted in the rescue of the hostages.
All told, members of the FARC held the Americans hostage for 1,967 days.
“Alexander Beltran Herrera was a terrorist and commander in the FARC organization who held three Americans hostage in the Colombian jungle,” said U.S. Attorney Machen. “With today's guilty plea, he admitted to his role in terrorizing these Americans, who were held in captivity for more than five years. His extradition and prosecution reflect our determination to bring to justice anyone who sets out to harm our fellow citizens overseas.”
“This case underscores our resolve to hold accountable those who target our citizens with violence anywhere in the world,” said Acting Assistant Attorney General Carlin. “With this guilty plea, Alexander Beltran Herrera has admitted his participation in the hostage taking and captivity of three Americans by the FARC, a Colombian terrorist organization. I want to thank all of the prosecutors, agents, and analysts who made this result possible.”
“Alexander Beltran Herrera was a commander within FARC, a foreign terrorist organization based in Colombia that considered U.S. citizens to be targets for murder and hostage taking,” said Special Agent in Charge Piro. “First captured, then extradited to the United States, Herrera has now admitted to his role in moving and keeping hostage three American citizens, Marc D. Gonsalves, Thomas R. Howes and Keith Stansell. Once again, the excellent, longstanding cooperation between the Colombian National Police and U.S. law enforcement has ended another terrorist’s career of violence and thuggery.”
This case was investigated by the FBI’s Miami Division. The prosecution is being handled by Assistant U.S. Attorneys Anthony Asuncion and Fernando Campoamor-Sanchez from the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney David Cora, from the Counterterrorism Section of the Justice Department’s National Security Division. The case was indicted by Assistant U.S. Attorney Kenneth Kohl, of the National Security Section of the U.S. Attorney’s Office.
The FBI’s Miami Division partnered in the investigation with the Justice Department’s Office of International Affairs, the Department’s Judicial Attachés in Colombia, and the FBI’s Office of the Legal Attaché in Bogota, Colombia. The Directorate of Intelligence (DIPOL) and the Anti-Kidnapping Unit (GAULA) of the Colombian National Police also provided valuable support during the investigation.
14-067Mathis Man Convicted in Large-Scale Drug-Trafficking and Money Laundering Conspiracies O Convicted in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
CORPUS CHRISTI, Texas - A federal jury in Corpus Christi has convicted Ricardo Guerrero, 55, of Mathis, of conspiracy to commit drug trafficking, conspiracy to launder money and being a felon in possession of a firearm, announced United States Attorney Kenneth Magidson. The jury returned its verdict late this afternoon following an eight-day trial and approximately two hours of deliberation. The jury also separately voted to forfeit three of Guerrero’s residential properties to the U.S.
During trial, the government provided evidence that Guerrero was the leader of the conspiracies, which existed from 2009 through his arrest on Sept. 26, 2013. Guerrero was proven to be a major dealer in methamphetamine, heroin and cocaine.
Over the course of the two-year investigation, law enforcement agents seized more than six kilograms of methamphetamine, five kilograms of heroin and six kilograms of cocaine. In addition to these amounts, trial testimony also proved that Guerrero’s criminal organization was moving kilogram amounts of methamphetamine, heroin and cocaine at least once or twice a month. He obtained the illegal narcotics from Mexico and had them crossed into the United States at Brownsville, McAllen or Laredo and stored the narcotics on numerous properties he owned in Mathis and in neighboring counties. Guerrero sold the methamphetamine, heroin and cocaine to sources throughout South Texas, as far north as Houston, and even as far west as San Antonio.
The money laundering conspiracy involved concealing money Guerrero made from his drug trafficking, primarily through cattle and vehicle auctions.
The government presented testimony from 52 witnesses, which included information about the arrests of 21 other conspirators that had been working for Guerrero in the drug trafficking and money laundering conspiracies. Those defendants all entered guilty pleas to their respective roles prior to trial.
Jesus Borja-Borja, 25, of Edinburg, pleaded guilty to the conspiracy, specifically, to being Guerrero’s main source of supply in obtaining the illegal narcotics. Elena Barrera, 36, of Mathis, and Frank Coronado, 30, of Brownsville, were convicted of conspiracy to commit money laundering. Wayne Dedow, 49, of Mathis, Miguel Montemayor, 36, of Beeville, and Douglas Massey, 34, Ricky Bazaldua, 36, and Ramon Alonzo Gonzales, 44, all from Corpus Christi, pleaded guilty for transporting or selling specific loads of narcotics for Guerrero. Six others - Krystan Rios, 23, Eddie Hernandez, 32, Victor Arocha, 54, Sulema Vasquez, 50, Jada Gregg Warren, 30, and Daniel Sosa, 43, all of San Antonio - entered guilty pleas to their roles in transporting or selling specific loads of narcotics for Guerrero.
The remaining conspirators pleaded guilty to their roles in transporting or selling narcotics for Guerrero. These included Carlos Molina, 71, and Roberto Contreras, 57, both of Robstown, Richard Pacheco, 41, of Karnes City, Lee Roy Tanguma, 38, of Beeville, Benjamin Hernandez, 38, of Sandia, and Emmanuel Pabon Lugo, 37, and Amalia Dimas, 36, both of Corpus Christi.
Molina, Hernandez and Contreras have already been sentenced to 44, 151 and 188 months imprisonment, respectively, as have Pacheco and Lugo, who each received 63-month-terms. The remaining co-defendants will be sentenced April 17, 2014.
Senior U.S. District Judge Hayden Head presided over the trial and has set Guerrero’s sentencing for June 5, 2014. At that time, he faces life in federal prison and a possible fine of up to $10 million.
Those charged in relation to this case were identified through a long-term investigation conducted jointly by Homeland Security Investigations and Texas Department of Public Safety. The case is being prosecuted by Assistant United States Attorney Chad W. Cowan.
Manhattan U.S. Attorney Sues Town of Ramapo, New York over Violations of Federal Clean Water ActRead the Press Release
Agrees to Redress Violations and Pay $125,000 Penalty
Preet Bharara, the United States Attorney for the Southern District of New York, and Colonel Paul E. Owen, Commander of the New York District of the United States Army Corps of Engineers (“Corps of Engineers”), announced today that the United States has filed and simultaneously entered into a consent decree settling a civil lawsuit against the TOWN OF RAMAPO, NEW YORK (“RAMAPO”), for violations of the Clean Water Act (“CWA”).
U.S. Attorney Preet Bharara stated: “The Town of Ramapo repeatedly violated the laws protecting our Nation’s wetlands. Municipalities will be held accountable if they violate our environmental laws. Today’s consent decree will require Ramapo to pay a penalty for its repeated violations and create new wetlands to offset the damage it caused.”
Corps of Engineers Commander Colonel Paul Owen stated: “As one of the key regulatory agencies with regard to the Clean Water Act, the U.S. Army Corps of Engineers is committed to protecting the environment and the communities it benefits. This will continue to be of the utmost importance.”
According to the Complaint filed in White Plains federal court, in 2010 RAMAPO illegally discharged fill material into wetlands that are waters of the United States, as part of its construction of a minor league baseball stadium. Only after filling these wetlands did RAMAPO apply for and receive a permit from the Corps of Engineers relating to these wetlands. The permit required RAMAPO to mitigate the effects of its prior illegal discharge by creating additional wetlands and securing a conservation easement to preserve those wetlands indefinitely. To the present, RAMAPO has failed to comply with these permit requirements. In fact, after applying for the permit, RAMAPO illegally discharged even more unpermitted fill material in violation of the CWA.
In the consent decree filed today, RAMAPO admits and accepts responsibility for the violations, including the following:
- “[T]he Town’s unpermitted discharge of fill material” in 2010 led to a “loss of wetlands that are waters of the United States.”
- “The Town has failed to comply with” the permit issued to it by the Corps of Engineers after its initial violation.
- After applying for the permit, RAMAPO again “illegally discharged fill material” into “wetlands that are waters of the United States.”
- “As a result, the Town is, and since at least June 14, 2011, has been, in violation of the Permit and the CWA.”
Pursuant to the consent decree filed today in the United States District Court in White Plains, RAMAPO will pay a civil penalty of $125,000 and will establish approximately 2.2 acres of new wetlands to compensate for the wetlands that were improperly filled during the construction of the stadium. In addition, RAMAPO will ensure that a conservation easement is placed on the property to preserve the newly-established wetlands in perpetuity as a purely natural area. RAMAPO will be subject to substantial additional penalties if it fails to adhere to any of the deadlines in the consent decree.
The consent decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval, to provide public notice and to afford members of the public the opportunity to comment on the consent decree.
This case is being handled by the Office’s Environmental Protection Unit. Assistant United States Attorney Andrew E. Krause is in charge of the case.
U.S. v. Town of Ramapo, NY Complaint
U.S. v. Town of Ramapo, NY Notice of Lodging of Consent DecreeLouisville Man Sentenced to 27 Years in Prison for Sexual Abuse of A Minor Under the Age of Seven in the Production of Child PornographyRead the Press Release
LOUISVILLE, Ky – A Louisville man was sentenced by Senior U.S. District Judge Thomas B. Russell, to 27 years in prison and a lifetime of supervised release for sexually abusing a minor under the age of seven during the production of child pornography, today announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the plea agreement, Thomas Evan Middleton, age 50, admitted to sexually abusing a minor female during the creation of pornography, while babysitting the minor at his home on five separate occasions between August 2009 and May 2011.
This case was initially investigated by the Louisiana Attorney General's Office (LAGO) who contacted law enforcement in Louisville, Kentucky regarding a peer-to-peer investigation into Louisiana resident Robert Swan. The LAGO had previously executed a search warrant on Swan’s residence on January 30, 2013. During the review process of Swan’s electronic storage devices the LAGO discovered images of Swan and a then unknown individual engaged in the sexual exploitation of a minor. The unknown man had a cross tattoo on his right middle finger, and was later identified as Thomas Middleton through identifying information located on Swan’s computer. During the course of their investigation, thousands of digital images of child pornography were recovered, including images with Swan and Middleton sexually abusing a 4 to 5 year old female.
On July 24, 2013, a federal search warrant was executed on Middleton’s residence in Kentucky. Several items in the residence appeared to be the same as items observed in some of the sexual abuse images found on Swan’s computer. During the execution of the search warrant, Middleton identified the child victim depicted in the pictures with him.
This case was prosecuted by Assistant United States Attorney A. Spencer McKiness and was investigated by the Federal Bureau of Investigation with assistance from the Louisiana Attorney General’s Office.
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."
Laveen Man Sentenced to 46 Months in Prison for Assaulting Police OfficerRead the Press Release
PHOENIX – On March 17, 2014, Hanson Amos Jose, 31, of Laveen, Ariz, a member of the Gila River Indian Community, was sentenced by U.S. District Judge Linda Readeto 46 months in prison. Jose pleaded guilty on Oct. 25, 2013, to assault resulting in serious bodily injury.
On July 8, 2013, Gila River police officers were investigating a vehicle when they were approached by Jose. The police officers determined that Jose had an active tribal warrant for his arrest and attempted to arrest him. Jose forcefully resisted arrest by punching, kicking, and pushing the officers. During the assault, Jose tripped one of the police officers, fell on top of the officer, and broke the police officer’s ankle.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-1172-PHX-NVW
RELEASE NUMBER: 2014-016_JoseFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Laguna Pueblo Man Sentenced to Seventy-Two Months in Federal Prison for Assaulting Acoma Pueblo WomanRead the Press Release
ALBUQUERQUE – Edwin Cheromiah, 28, was sentenced this afternoon to 72 months in federal prison to be followed by three years of supervised release for assaulting his intimate partner. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Acting Police Chief Donald Siow of the Acoma Tribal Police Department.
Cheromiah, a member and resident of Laguna Pueblo, was arrested on Sept. 12, 2013, on an indictment charging him with assault resulting in serious bodily injury; assault with a dangerous weapon; and possessing and brandishing a firearm during a crime of violence.
On Nov. 18, 2013, Cheromiah pleaded guilty to a two-count felony information charging him with assault with a dangerous weapon and assault of an intimate partner by strangling and suffocation. In entering his guilty plea, Cheromiah admitted that on Dec. 27, 2010, he assaulted his intimate partner, an Acoma Pueblo woman, by placing a rifle into the mouth of the victim and threatening to kill her. He further admitted assaulting the victim by strangling her and attempting to suffocate her.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
KC Woman Indicted for False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was indicted by a federal grand jury today for filing fraudulent tax returns for her clients.
Dinette Kay Cadenhead, also known as Kay Taylor, 46, of Kansas City, was charged in a 35-count indictment returned by a federal grand jury in Kansas City, Mo.
According to today’s indictment, Cadenhead owned and operated a car detailing business (Awesome Accessories, LLC, in Raytown, Mo.) and prepared tax returns for clients.
Cadenhead was charged with 29 counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns. Cadenhead allegedly prepared federal income tax returns for clients that contained false and fraudulent claims. Cadenhead assisted at least 12 individuals to file at least 29 false and fraudulent income tax returns for the tax years 2008 through 2011, the indictment says. The tax loss associated with those false returns is $109,627, the indictment says, while the aggregate tax loss (including relevant conduct) is $134,237.
Cadenhead allegedly utilized false deductions (for charitable deductions, medical expenses, accounting expenses, attorney expenses, unreimbursed employee expenses and other expenses) and false IRA deductions to increase her clients’ refunds, without the clients’ knowledge. Cadenhead also included other fraudulent entries, the indictment says, including eight false Schedule C reporting net businesses losses, 10 false energy credits and seven fraudulent dependents, all without her clients’ knowledge.
Cadenhead was also charged with one count of theft of public money. According to the indictment, Cadenhead charged her clients a fee between $65 and $600 per return. However, Cadenhead allegedly diverted a portion of the fraudulent refund into her bank account, without the knowledge of her clients, which increased the amount she received for each return. Cadenhead fraudulently received up to $2,600 for preparing a return, the indictment says, and directed over $14,000 into her bank accounts from her clients’ refunds without their knowledge or permission. Cadenhead allegedly stole money that belonged to the United States by taking portions of inflated tax refunds without the knowledge or authorization of the tax payer.
Cadenhead was charged with five counts of aggravated identity theft. Cadenhead allegedly used the name and Social Security numbers of individuals in relation to the theft of public money. According to the indictment, Cadenhead used the name and Social Security numbers of individuals on federal income tax returns in order to fraudulently claim them as dependents of her clients. Cadenhead unlawfully diverted a portion of the inflated refunds to herself, according to the indictment.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.KC Man Sentenced to 15 Years for Stealing FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for stealing an AK-47 from a pawn shop.
Henry Lee Williams, 55, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 15 years in federal prison without parole. Williams was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 6, 2013, Williams pleaded guilty to being a felon in possession of a firearm and to stealing a firearm from a federal firearms licensee.
Raytown police officers responded to a call from Game Stop on Dec. 19, 2012, regarding a man who had just stolen an iPad. An officer, with his emergency lights and siren on, followed Williams’s vehicle for several blocks before Williams finally pulled over. The officer ordered Williams out of the car, but he refused. Williams claimed his driver’s side door would not open. As another officer walked up to the passenger side widow, he could see Williams still had the car in drive. The officer ordered Williams to place the car in park, which he did. After several more commands, Williams finally exited the car through the passenger side door. He locked the doors as he exited.
An officer looked through the car window and saw an iPad, with a Game Stop price tag and wrapped in bubble wrap, wedged between the center console and the front passenger seat. The officer placed the iPad on the trunk lid of the vehicle. Officers attempted to arrest Williams, but initially he refused their commands. When the officer pushed him over on top of the car trunk, Williams grabbed the iPad with his left hand. He then tucked the hand under his body. Williams would not untuck his hand despite warnings, and officers had to apply force in order to handcuff him.
Once Williams was handcuffed and placed under arrest, officers called for a tow truck. During the inventory search of Williams’s car, officers discovered a duffle bag that contained an AK-47 7.62 x 39 rifle with 20 rounds loaded in the attached high-capacity magazine.
A check revealed the firearm had been stolen from Smart Pawn in Kansas City, Mo. Video surveillance tape and witness accounts of the Dec. 11, 2012, incident at Smart Pawn established that Williams entered Smart Pawn and was hiding out near the firearms counter when he reached over the counter, took the AK-47, and walked out.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has prior felony convictions for theft, burglary and second degree murder.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the Raytown, Mo., Police Department, the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Justice Department Reaches Agreement in Principle with the New York City Fire Department over Discriminatory Hiring Practices Resulting in $98 Million in ReliefRead the Press Release
The Justice Department announced today that it has reached an agreement in principle with the city of New York and intervening plaintiffs to settle an employment discrimination lawsuit involving the New York City Fire Department (FDNY). Under the agreement in principle, the city of New York will pay a total of approximately $98 million to resolve allegations that the FDNY engaged in a pattern or practice of employment discrimination against African-American and Hispanic applicants for the entry-level firefighter position by using two discriminatory written tests in 1999 and 2002. The parties’ agreement in principle will be incorporated into a consent decree that is subject to a fairness hearing and must be approved by the district court.
“This resolution will help ensure that those who seek to serve as firefighters in New York City have an equal opportunity to do so, regardless of their race,” said Associate Attorney General Tony West. “The agreement we are announcing today – which is the result of the collective efforts of the Justice Department, the private plaintiffs, and the city of New York – not only will compensate victims of discriminatory hiring practices, it will also put in place an entry-level hiring process that should more accurately identify firefighter candidates who are best qualified to do the job.”
“This agreement in principle to settle will provide significant and long-awaited relief to African-American and Hispanic applicants for employment with the FDNY who were harmed by the FDNY’s discriminatory hiring practices,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We applaud the city of New York and Mayor de Blasio for their efforts to bring this important matter to a resolution. The Department of Justice stands committed to ensuring justice and compensation to those who are victims of unfair employment practices.”
The lawsuit originated in 2007 when the department filed its complaint alleging that the FDNY’s use of two written tests violated Title VII of the Civil Rights Act of 1964 by disproportionately screening out African-American and Hispanic applicants for the entry-level firefighter position. The FDNY was unable to show that these screening devices identified the candidates who were best qualified to perform the job of firefighter, as required in order to keep the tests in place.
“We commend the city for its commitment to rectifying past discrimination against qualified African-American and Hispanic firefighter applicants,” stated U.S. Attorney Loretta Lynch for the Eastern District of New York. “We look forward to a new era in which African-American and Hispanic firefighters are full and equal participants in the FDNY’s proud tradition of protecting and serving the people of the city of New York.”
Under the terms of the agreement in principle, the FDNY will pay $98 million to those African-American and Hispanic victims of discrimination who filed claim forms and who have already been found eligible for relief by the court. The method of distribution has not yet been determined and must be approved by the court before any money is distributed. With today’s agreement in principle, the parties have committed to streamline the claims process and to expedite the distribution of monetary relief to eligible claimants.
In addition to today’s agreement in principle, the court has already ordered several changes to take place within the FDNY to remedy the city’s discriminatory hiring practices. In September 2012, the court approved the use of an entry-level firefighter exam which was jointly developed by the United States, the intervening plaintiffs and the city. As a result, for the first time in at least 15 years, the FDNY is using an entry-level firefighter exam that accurately predicts which candidates will perform better on the job and complies with Title VII. In May 2013, the Second Circuit Court of Appeals upheld on appeal most of an order outlining changes that must be made to the FDNY’s recruiting, post-examination hiring and Equal Employment Opportunities Office processes, and appointing a court monitor to oversee this reform. In addition, the court has ordered the city to appoint up to 293 eligible claimants as priority hires to the FDNY, provided that they take and pass all of the same tests and other steps in the hiring process as the other candidates for appointment with the FDNY. The first groups of priority hires joined the FDNY in July 2013 and January 2014, and additional priority hires are expected to join in July 2014.
The parties expect to release further details about the terms of the proposed settlement agreement in the next few weeks. For more information about this litigation, please see the Department of Justice website. Eligible claimants in this lawsuit may obtain more information about how the settlement affects their claims for relief at this page, which will have updated information about the settlement in the coming days and weeks.
Jicarilla Apache Man Sentenced to Twenty-Seven Months for Domestic Assault by a Habitual Offender ConvictionRead the Press Release
ALBUQUERQUE – Quentin Scott Veneno, 27, was sentenced to 27 months in federal prison followed by three years of supervised release for his conviction on a domestic assault by a habitual offender charge. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and Police Chief Kendall P. Vicenti of the Jicarilla Apache Tribal Police Department.
Veneno, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., was arrested on Sept. 19, 2013, based on an indictment alleging that he assaulted his domestic partner, also a member of the Jicarilla Apache Nation, in Nov. 2012. Veneno was charged federally as a habitual domestic violence offender because he has two prior domestic violence convictions in the Jicarilla Apache Nation Court.
On Dec. 2, 2013, Veneno pleaded guilty to the indictment and admitted assaulting his intimate partner and the mother of his child by striking her in the face multiple times with a closed fist and biting her on the neck. Veneno further admitted that he committed this crime on Nov. 8, 2012, in a location within the Jicarilla Apache Reservation. Veneno also admitted that he previously was convicted on domestic violence charges on two occasions in 2009 before the Jicarilla Apache Nation Court.
This case was investigated by the Jicarilla Apache Tribal Police Department, and is being prosecuted by Special Assistant U.S. Attorney David Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Hudson Man Sentenced to More Than 15 Years on Drug, Money Laundering and Firearms ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ryan
Orton, 29, of Hudson, Maine, was sentenced yesterday in U.S. District Court to 15 years in prison and six years supervised release for conspiracy to import bath salts, conspiracy to launder money, and being a felon in possession of firearms. The court also ordered the forfeiture of seven firearms, more than $10,000, and other property connected to the commission of the offenses.According to court records, between mid-2011 and April 4, 2012, Orton illegally obtained methylone and methylenedioxypyrovalerone (MDPV), two of the most commonly abused “bath salts.” Orton ordered the substances over the internet from China and had them delivered to associates working with him. He paid for the shipments through wire transfers made by associates. On April 4, 2012, he was arrested and his residence, a storage unit and his vehicle were searched. Investigators seized, among other things, drugs, firearms, a ballistic vest, night vision goggles, stun guns, and other weapons. Orton was prohibited from possessing firearms because of prior felony drug convictions. The investigation revealed that Orton imported and distributed throughout Penobscot County, six kilograms of methylone, over two kilograms of
MDPV, and other drugs.The investigation was conducted by the Maine Drug Enforcement Agency and U.S.
Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations.Group Indicted for Possession of Prescription and Illegal DrugsRead the Press Release
Memphis, TN – Eighteen individuals were named today in an indictment on a variety of charges involving illegal possession of prescription drugs and possession of illegal drugs, announced U.S. Attorney Edward L. Stanton.
Members of law enforcement from the ATF and the Multi-Agency Gang Unit executed a series of take-downs across Shelby County to apprehend the suspects.The following individuals are alleged to have conspired to distribute prescription drugs:
Marlon Deshone Quarles, a/k/a “Marlon Patterson,” 41, address unknown; Saul Williams, a/k/a “Jabo,” 37, address unknown; Victor Quarles, a/k/a “Vic,” 29, Cordova, TN; Brandon Powell, 26, address unknown; Zack Patterson, 63, Memphis, TN; Walter Echols, 31, address unknown; Maurice Woodard, 26, Memphis, TN; Christopher Munn, 28, address unknown; Troy Stephenson, 29, Bartlett, TN; Antonio Humphries, 32, address unknown; Bobby Griffin, a/k/a/ “Unc,” 45, address unknown; Michelle Carlson, 31, Horn Lake, MS; Jasmine King, 21, address unknown; Kiara Wright, 22, Memphis, TN; Latisha Bobo, 26, address unknown; and
Manika Shelby, 22, address unknown.The group is specifically charged with conspiring to do the following: • Possession with intent to distribute oxycodone (Oxycontin), which carries a penalty of up to 20 years in prison and a fine of up to $1,000,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 30 years and a fine of up to $2,000,000; • Possession with intent to distribute morphine, which carries a penalty of up to 20 years in prison and a fine of up to $1,000,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 30 years and a fine of up to $2,000,000; • Possession with intent to distribute Meperidine which carries a penalty of up to 20 years in prison and a fine of up to $1,000,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 30 years and a fine of up to $2,000,000; • Possession with intent to distribute hydrocodone (a/k/a “Lortab”, “Lorcet,” “Tussionex.” “Hydromet,” and “Vicodin”), which carries a penalty of up to 10 years in prison and a fine of up to $500,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 20 years and a fine of up to $1,000,000; • Possession with intent to distribute alprazolam (a/k/a “Xanax,” “Xanax bars,” and “bars”), which carries a penalty of up to 5 years in prison and a fine of up to $250,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 10 years and a fine of up to $500,000; • Possession with intent to distribute lorazepam (a/k/a “Ativan”), which carries a penalty of up to 5 years in prison and a fine of up to $250,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 10 years and a fine of up to $500,000; and
The following individuals are alleged to have conspired to distribute illegal drugs:
• Possession with the intent to distribute Carisoprodol (a/k/a Soma), which carries a penalty of up to 5 years in prison and a fine of up to $250,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 10 years and a fine of up to $500,0000.
Marlon Deshone Quarles, a/k/a “Marlon Patterson,” 41, address unknown; Saul Williams, a/k/a “Jabo,” 37, address unknown; Victor Quarles, a/k/a “Vic,” 29, Cordova, TN; Tyrone Williams, a/k/a “Ty,” age unknown, address unknown; Brandon Powell, 26, address unknown; Maurice Woodard, 26, Memphis, TN; Christopher Munn, 28, address unknown; and
Jacqueline Chambers, a/k/a “Jackie,” age unknown, address unknown.The group is specifically charged with conspiring to do the following: • Possession with intent to distribute up to 500 grams of cocaine, which carries a penalty of at least 5 years in prison up to a maximum of 40 years in prison and a fine of up to $5,000,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be at least 10 years in prison up to life and a fine of up to $8,000,000 and; • Possession with intent to distribute up to 100 kilograms of marijuana, which carries a penalty of at least 5 years in prison up to a maximum of 40 years in prison and a fine of up to $5,000,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be at least 10 years in prison up to life and a fine of up to $8,000,000.
Victor Quarles is also charged with three counts of possession of marijuana with intent to sell, and Christopher Munn is also charged with two counts of possession of marijuana with intent to sell. Each charge carries a penalty of up to 5 years in prison and a fine of up to $250,000, unless the defendant has a prior felony drug conviction, in which case the penalty would be up to 10 years and a fine of up to $500,000.
This case was investigated by the Multi-Agency Gang Unit, which is comprised of members of federal, state, and local law enforcement including the United States Attorney’s Office; the Shelby County District Attorney’s Office; the Shelby County Sheriff’s Office; the Memphis Police Department; the Federal Bureau of Investigation; and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kevin Whitmore is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Grants Man Sentenced to Eighty-Four Months in Federal Prison for Unlawful Possession of FirearmsRead the Press Release
ALBUQUERQUE – Aaron Jimenez, 31, of Grants, N.M., was sentenced this morning to 84 months in federal prison followed by three years of supervised release for violating the federal firearms laws. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Chief Steve Sena of the Grants Police Department.
Jimenez was charged in March 2013 in a two-count indictment with unlawful possession of an unregistered sawed-off shotgun and being a felon unlawfully in possession of a firearm and ammunition. According to the indictment, Jimenez committed these offenses on Oct. 10, 2012, in Cibola County, N.M. At the time, Jimenez was prohibited from possessing firearms or ammunition because he previously had been convicted of burglary, aggravated battery and criminal damage to property.
In April 2013, Jimenez was transferred to federal custody from state custody, where he was being held on related state charges. The state charges subsequently were dismissed in lieu of federal prosecution. In Sept. 2013, Jimenez pled guilty to both counts of the indictment.
Jimenez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Grants Police Department with assistance from the 13th Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.Georgia Woman Charged in Nigerian "Mystery Shopper" ScamRead the Press Release
PITTSBURGH - A resident of Georgia has been indicted by a federal grand jury in Pittsburgh on charges of fraud conspiracy and wire fraud, United States Attorney David J. Hickton announced today.
The two-count indictment named Monica Mason, 48, as a defendant.
According to the indictment, Mason was involved in a Nigerian “Mystery Shopper” scam whereby her coconspirator Shawn Foote knowingly prepared and addressed fraudulent mail containing counterfeit instruments to victims, who believed they were acting as mystery shoppers. The victims unwittingly received the counterfeit commercial and Postal money orders and checks and cashed them to make small purchases for purposes of evaluating the commercial services provided. They then wire transferred excess funds back to Mason, Foote, and others. After these transactions, the money orders and checks were returned as counterfeit by the victims’ banks and they were left to repay the bank from their own funds.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the U.S. Customs and Immigration Enforcement’s Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Gallup Man Pleads Guilty to Federal Child Sex Abuse ChargeRead the Press Release
ALBUQUERQUE – Darryle R. Dennison, 25, an enrolled member of the Navajo Nation who resides in Gallup, N.M., pleaded guilty this morning to an aggravated sexual abuse charge. Under the terms of his plea agreement, Dennison will be sentenced to a prison term of 12 to 14 years followed by a term of supervised release to be determined by the court. Dennison will be required to register as a sex offender after he completes his prison sentenced.
Dennison’s guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
Dennison was arrested on June 7, 2013, on a criminal complaint alleging that he sexually abused a child less than 12 years old on June 4, 2013, in a location within the Navajo Indian Reservation. During today’s hearing, Dennison pled guilty to a felony information charging him with aggravated sexual abuse and Dennison admitted engaging in a sexual act with a child under the age of 12 years.
Dennison has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI with assistance from the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Presiliano A. Torrez as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
Fresno Police Department Detective and Fresno Marijuana Trafficker Charged in Bribery SchemeRead the Press Release
FRESNO, Calif. — A complaint has been filed in the Fresno branch of the United States District Court against Derik Carson Kumagai, 40, a Fresno Police Department detective assigned to the Vice Unit and Saykham Somphoune, 40, of Clovis, charging them with conspiracy, bribery, and extortion, United States Attorney Benjamin B. Wagner announced.
“Prosecuting those who misuse their badge for personal gain is an important mission for the U.S. Department of Justice,” said US Attorney Wagner. “I am grateful for the assistance of Chief Dyer and the leadership of his Department in this investigation.”
According to court documents, detective Kumagai accepted a $20,000 bribe from an individual who was under investigation for marijuana trafficking (identified as Person Y). In return for the bribe payment, Kumagai and co-conspirator Somphoune promised Person Y that he would be signed up as a confidential informant for the Fresno PD. Somphoune is not a law enforcement officer.
In October and November 2013, Kumagai and Somphoune met with Person Y on several occasions and discussed the proposed bribe payment. On November 6, 2013, Person Y paid Kumagai approximately $20,000 cash. A few hours later, Person Y completed documents regarding work as a confidential informant for the Fresno Police Department.
This case is the product of an investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney are prosecuting the case.
If convicted of conspiracy, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of bribery, they face a maximum statutory penalty of 10 years in prison and a $250,000 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Complaint
Former San Diego Police Detective Pleads Guilty to Campaign Finance ConspiracyRead the Press Release
San Diego, CA – Former San Diego police detective Ernesto Encinas pled guilty today to charges that he conspired to commit campaign finance crimes in connection with a series of elections at the local and federal level. At the same hearing, Encinas also pled guilty to charges that he made false statements to the Internal Revenue Service when filing tax returns on behalf of his private security business, Coastline Protection and Investigations, Inc.
As part of his plea agreement, Encinas admitted to a range of allegations first brought to light on January 21, 2014, when prosecutors unsealed a complaint against him. Speaking under oath before U.S. Magistrate Judge William V. Gallo, Encinas admitted that he and his coconspirators agreed to make illegal contributions on behalf of Jose Susumo Azano Matsura, a foreign national who was arrested by FBI agents on related campaign finance charges in February. Foreign nationals cannot lawfully contribute to any campaign at the federal, state or local level. Also as part of the plea, Encinas confirmed that he and others, including Azano, Ravneet Singh and Marco Polo Cortes, agreed to make conduit contributions in connection with a federal election, as well as falsify records with the intent to impede a federal investigation—both of which are felonies regardless of whether the source is a citizen or foreign national. (Azano, Singh and Cortes, who were charged earlier this year, have pleaded not guilty to the charges filed against them.)
Encinas’s plea agreement detailed other aspects of the scheme not previously disclosed in public filings. For example, Encinas admitted to FBI agents that Azano induced a series of individuals to donate directly to “Candidate 1,” described as a candidate for the office of mayor of San Diego during the 2012 primary election cycle. Encinas stated that Azano provided cash, which the straw donors each used to make the maximum possible donation to Candidate 1.
In addition, as part of his plea agreement, Encinas admitted that during tax years 2011 and 2012, Azano paid Encinas approximately $10,000 in cash “off the books.” Encinas failed to report approximately $147,300 of such cash payments in tax year 2011, and approximately $74,900 in cash payments in tax year 2012, for a total of approximately $222,200 in unreported cash income. This resulted in a tax loss of $69,394.36 over two years, which Encinas agreed to pay back as restitution.
First Assistant United States Attorney Cindy M. Cipriani said: “To secretly inject foreign money into our elections is an affront to the transparency and integrity of our electoral system. In obtaining this guilty plea, we demonstrate our continuing efforts to investigate and prosecute campaign finance crimes in San Diego and beyond.”
FBI Special Agent in Charge, Daphne Hearn said, “Illegal campaign contributions from foreign sources undermines our electoral process and ultimately our democracy. The FBI is committed to working with our law enforcement partners to identify and root out public corruption wherever it may be happening.”
Special Agent in Charge of Internal Revenue Service Criminal Investigation (IRS CI), Erick Martinez, commented: “Retired San Diego Police Detective Ernesto Encinas intentionally failed to report over $222,000 in cash received by keeping this money ‘off the books.’ Today’s guilty plea should serve as a reminder- all of us have an obligation to file an accurate and truthful tax return. Failure to do so could result in criminal prosecution.”
Encinas’s sentencing hearing has been set for June 9, 2014 at 9 a.m. before United States District Judge Michael M. Anello.
DEFENDANT Case No. 14CR0344-MMAErnesto Encinas
Age: 57
San Diego, CA CHARGESCount 1: Conspiracy to Commit Offenses against the United States – 18 U.S.C. § 371. Maximum penalties: 5 years in prison, 3 years of supervised release, $250,000 fine and a $100 special assessment
Count 2: False Tax Return – 26 U.S.C. § 7206(1): 3 years in prison, 1 year of supervised release, $250,000 fine and a $100 special assessment
INVESTIGATING AGENCYFederal Bureau of Investigation
Internal Revenue Service, Criminal Investigation
San Diego Police Department*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Former President of Guatemala, Alfonso Portillo, Pleads Guilty in Manhattan Federal Court to Laundering Millions of Dollars Through United States BanksRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALFONSO PORTILLO, the former President of Guatemala, pled guilty today in Manhattan federal court to laundering millions of dollars through bank accounts located in the United States. PORTILLO, who served as the President of Guatemala from January 14, 2000 to January 14, 2004, arrived in the Southern District of New York on May 24, 2013 after being extradited to the United States by the Government of Guatemala. Portillo pled guilty to the sole charge in the Indictment before United States District Judge Robert P. Patterson.
Manhattan U.S. Attorney Preet Bharara said: “Former President Alfonso Portillo may have thought his position of power prevented him from having to answer for accepting multi-million dollar bribes to shape his country’s foreign policy, for embezzling money intended to benefit the Guatemalan people, and for using U.S. banks to launder the ill-gotten funds. But he was wrong. With his guilty plea today, Portillo now stands convicted in an American court for his criminal conduct. This Office will aggressively pursue and prosecute individuals, irrespective of their position or title, if they engage in violations of U.S. laws.”
According to the Indictment and PORTILLO’s guilty plea allocution today:
From December 1999 through August 2002, while serving as President of Guatemala, PORTILLO received $2.5 million in bribery payments from the Government of Taiwan. In his plea allocution, PORTILLO stated, “I understood that, in exchange for these payments, I would use my influence to have Guatemala continue to recognize Taiwan diplomatically.” Knowing that the $2.5 million was the proceeds of illegal payments from Taiwan, PORTILLO conspired with others to launder the $2.5 million through bank accounts located in the United States. PORTILLO also stated that he and others had the illegally obtained funds “carried from Guatemala to the United States” and then deposited them into the U.S. accounts.
The $2.5 million in payments consisted of five checks provided by the Government of Taiwan’s Embassy in Guatemala. Three of the checks, totaling $1.5 million, were issued in 2000, and were endorsed personally by PORTILLO. PORTILLO then caused the checks to be deposited in a bank account in Miami, Florida. Two additional checks totaling $1 million were issued in 2002 and were made payable to a company known as Oxxy Financial Corp. (“Oxxy Financial”). These two checks were deposited at the International Bank of Miami, in an account held by Oxxy Financial. According to PORTILLO, these and other transactions were “designed, in part, to conceal and disguise the source and ownership of the money.” More than $1.5 million of the Taiwanese payments received by PORTILLO were ultimately deposited into bank accounts in the name of PORTILLO’s former wife and daughter at Banco Bilbao Vizcaya Argentaria (“BBVA”) in Paris, France. Money transferred into the BBVA accounts was further laundered through financial institutions in Luxembourg and Switzerland, among other places.
PORTILLO, 62, pled guilty to one count of conspiracy to commit money laundering. He faces a maximum term of 20 years in prison and a maximum fine of the greater of $500,000, or twice the value of the monetary instruments or funds involved in the money laundering transactions. PORTILLO will be sentenced by Judge Patterson on June 23, 2014, at 4:00 p.m. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the New York Field Office of the Internal Revenue Service, Criminal Investigation, the Drug Enforcement Administration’s (“DEA”) New York Organized Crime Drug Enforcement Strike Force – which is comprised of agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service and the U.S. Marshals Service – the DEA’s Guatemala Country Office, the Department of State, and the U.S. Department of Justice’s Office of International Affairs for their work in this investigation. Mr. Bharara also recognized and thanked the United Nations Commission Against Impunity in Guatemala (“CICIG”), the Guatemalan Special Prosecutor’s Office for the CICIG, and the Ministerio Público in Guatemala for their assistance in this investigation.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Adam Fee and Shane T. Stansbury are in charge of the prosecution.
U.S. v. Alfonso Portillo Indictment
Former Paintsville Doctor Admits Role in Pill Mill That Illegally Dispensed 25,000 Prescription PillsRead the Press Release
Lexington, KY - A former doctor in Paintsville, KY., has admitted to his role in a conspiracy that was responsible for illegally distributing more than 25,000 prescription pills in Eastern Kentucky.
Om Monday, Rano Bofill, 72, pleaded guilty in federal court in Lexington, before U.S. District Judge Amul Thapar, to conspiracy to unlawfully dispense Oxycodone.
According to court documents, from January 2009 until December 2012, Bofill conspired with Tammy Cantrell and Shelby Lackey, owners of Care More Pain Management, LLC, located in Johnson County, to distribute thousands of Oxycodone pills to patients without a legitimate medical purpose.
Bofill acknowledged that he wrote prescriptions for numerous patients after performing little to no examination and, in some instances, he even signed off on prescriptions without actually ever seeing the patients. Patients who visited the clinic paid $200 for the initial visit and $185 for subsequent visits; all fees were paid in cash. Bofill admitted he saw approximately 25 patients per day and was paid between $5,000 and $6,000 per week
Lackey and Cantrell pled guilty last year to their roles in the conspiracy. At the time of their guilty pleas, Cantrell and Lackey were the first pain clinic owners in the Eastern District of Kentucky to have federal convictions for illegally distributing prescription drugs. Another doctor at the clinic, Richard Albert, pled guilty in July 2012 to a conspiracy charge and was sentenced to 75 months in prison. Albert, Cantrell and Lackey have collectively agreed to forfeit approximately $1.3 million, which represents proceeds from the conspiracy.
The investigation into this case started when detectives with the Kentucky Attorney General’s Office received complaints from local law enforcement that Care More was seeing a remarkably high volume of patients. Court records state that patient lines at Care More stretched into the parking lot.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Robert L. Corso, Special Agent in Charge, DEA, and Jack Conway, Kentucky Attorney General, jointly announced the plea.
The investigation was conducted by the Kentucky Attorney General’s Office, the DEA and the Paintsville Police Department. Assistant U.S. Attorney Roger West prosecuted this case on behalf of the federal government.
Bofill will appear for sentencing on July 14, 2014. . He faces a maximum of 20 years in prison. However, the Court will consider the U.S. Sentencing Guidelines and the federal statues before imposing a sentence.
Former Owner of Pain Clinics in Georgetown and Dry Ridge Sentenced to 20 YearsRead the Press Release
Defendant sentenced to maximum penalty allowed under the statute
LEXINGTON, KY - The former owner of pain clinics in Georgetown, KY., and Dry Ridge, KY., that illegally dispensed prescription drugs to thousands of patients, was sentenced today to 20 years in prison.
U.S. District Judge Karen Caldwell sentenced Ernest William Singleton for drug trafficking, money laundering, opening and maintaining a drug involved premise and conspiracy offenses. Singleton will have to serve at least 85 percent of his prison sentence.
Singleton and his corporations, Double D Holdings, LLC and S and R Medical Enterprises, LLC, which owned Central Kentucky Bariatric and Pain Management, Central Kentucky Family Pharmacy of Georgetown, and the Grant County Wellness Center in Dry Ridge, were convicted by a federal jury in June 2013.
According to evidence presented at trial, from October 2010 until February 2013 and under Singleton’s direction, doctors at the clinics prescribed large quantities of Oxycodone and Diazepam outside the scope of professional practice and without a legitimate medical purpose.
Specifically, the evidence established that Singleton oversaw the daily operations of the clinics, influenced doctors to overprescribe drugs to patients, and pressured them to see as many patients as possible. Witnesses testified that, at Singleton’s direction, one of the doctors saw more than 90 patients in a day and another doctor visited with some patients for as little as three minutes before prescribing medication. Witnesses also testified that when some doctors complained to Singleton about the volume of patients, he instructed them not to reduce their patient load.
Other evidence established that the pain clinics operated on a cash only basis and did not accept insurance. Patients paid approximately $250 on the first visit and $300 on subsequent visits. Investigators estimate that approximately 5,000 patients visited the clinics during the course of the conspiracy.
Some of the doctors who testified at trial confirmed that they could not provide adequate medical care under Singleton’s guidelines. Two of the doctors employed by Singleton, Lea Marlow and Gregory White, pled guilty to criminal charges last year and are currently serving prison terms.
The jury also found that Singleton engaged in money laundering, by using the drug proceeds to purchase real estate, a boat, and farm equipment, among other items. He also used the proceeds to build a home. Singleton has forfeited items numerous that either facilitated the crimes or were purchased with proceeds from his criminal offenses, including bank accounts consisting of more than $427,000, more than 20 firearms, more than 40 pieces of farm equipment, vehicles, and livestock.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; James W. Allen, Acting Special Agent in Charge, Drug Enforcement Administration; Christopher A. Henry, Special Agent in Charge of IRS, Criminal Investigation Division; Jack Conway, Kentucky Attorney General; and Rodney Brewer, Commissioner of Kentucky State Police, jointly made the announcement.
The investigation was conducted by the DEA, IRS Criminal Investigation Division, the Kentucky Attorney General’s Office and Kentucky State Police. Assistant U.S. Attorney Ron Walker, former Assistant U.S. Attorney Patrick H. Molloy, and Special Assistant U.S. Attorney Shawna Kincer, the Executive Director of Special Prosecutions with the Kentucky Attorney General’s Office, prosecuted the case.
Former Employee of Navy Contractor Pleads Guilty in International Navy Bribery ScandalRead the Press Release
Alex Wisidagama, a citizen of Singapore formerly employed by Glenn Defense Marine Asia (GDMA), pleaded guilty today to one count of conspiracy to defraud the United States for his role in a scheme to overbill the U.S. Navy for ship husbanding services. Wisidagama’s plea is the second in an expanding investigation into acts of alleged fraud and bribery committed by GDMA and several United States Navy officers and personnel.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Deputy Inspector General for Investigations James B. Burch of the U.S. Department of Defense Office of the Inspector General made the announcement after the plea was accepted by U.S. Magistrate Judge Jan M. Adler of the Southern District of California. The plea is subject to acceptance by U.S. District Judge Janis Sammartino. Sentencing is set for June 13, 2014, before Judge Sammartino.
Wisidagama, who was arrested in San Diego, Calif., on Sept. 16, 2013, served as the general manager of global government contracts for GDMA, which was owned and operated by his cousin, Leonard Glenn Francis . GDMA was a multi-national corporation with headquarters in Singapore and operating locations in other countries, including Japan, Thailand, Malaysia, Korea, India, Hong Kong, Indonesia, Australia, Philippines, Sri Lanka and the United States. GDMA provided the U.S. Navy with hundreds of millions of dollars in husbanding services, which involve the coordinating, scheduling and procurement of items and services required by ships and submarines when they arrive at port. These services included providing tugboats; paying port authority and customs fees; furnishing security and transportation; supplying provisions, fuel and water; and removing trash and collecting liquid waste.
In his plea agreement, Wisidagama admitted to conspiring to defraud the U.S. Navy in different ways. Wisidagama and other GDMA employees generated bills charging the U.S. Navy for port tariffs that were far greater than the tariffs that GDMA actually paid. In some cases, Wisidagama and others created fictitious port authorities for ports visited by U.S. Navy ships, and in other cases, Wisidagama and GDMA created fake invoices from legitimate port authorities purporting to bill the U.S. Navy at inflated tariff rates. Wisidagama and GDMA also overbilled the U.S. Navy for fuel by creating fraudulent invoices which represented that GDMA acquired fuel at the same cost that it charged the U.S. Navy when in fact GDMA sold the fuel to the U.S. Navy for far more than it actually paid. Wisidagama and GDMA also defrauded the U.S. Navy on the provision of incidental items by creating fake price quotes purportedly from other vendors to make it appear that the other vendors’ offering prices were greater than GDMA’s prices.
Wisidagama is the second defendant to plead guilty as part of this investigation. On Dec. 17, 2013, former NCIS Supervisory Special Agent John Bertrand Beliveau Jr. pleaded guilty to conspiracy to commit bribery after admitting to providing Francis with sensitive law enforcement information in exchange for things of value such as cash, travel accommodations, lavish dinners, and prostitutes. In addition to Beliveau and Wisidagama, Francis and U.S. Navy Commanders Michael Vannak Khem Misiewicz and Jose Luis Sanchez have been charged as part of a bribery and fraud scheme designed to defraud the U.S. Navy. The charges against Misiewicz, Sanchez and Francis are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service and the Defense Contract Audit Agency. Significant assistance was provided by the Criminal Division’s Office of International Affairs, as well as the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Royal Thai Police and the Corrupt Practices Investigation Bureau in Singapore.
The case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California, Director of Procurement Fraud Catherine Votaw and Trial Attorney Brian Young of the Criminal Division’s Fraud Section, and Trial Attorney Wade Weems, on detail to the Fraud Section from the Special Inspector General for Afghan Reconstruction.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline , or call (800) 424-9098.Former Arlington County Employee Convicted of Taking BribesRead the Press Release
ALEXANDRIA, Va. – Francisco Samayoa Hernandez (“Samayoa”), 33, of Silver Spring, Md., pleaded guilty today to receiving bribes in connection with his work as a tax assessor supervisor at the Arlington County, Va., Department of Motor Vehicles Select office.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
Samayoa faces a maximum penalty of ten years in prison when he is sentenced on June 9, 2014.
In a statement of facts filed with his plea agreement, Samayoa admitted to receiving approximately $11,480 in bribes from a vehicle exporter in exchange for providing vehicle titles and falsifying Department of Motor Vehicle paperwork that allowed the exporter to avoid paying state motor vehicle sales and use tax in connection with the registration and titling of various luxury automobiles. In exchange for the bribes, Samayoa enabled the exporter to avoid paying approximately $24,923 due to the Commonwealth of Virginia for the registration and titling of a Lamborghini and multiple Ferraris, Porsches and Mercedes.
Samayoa was an Arlington County employee, and the Arlington County Commissioner of Revenue contracts with the DMV to provide vehicle-related services at its local office.
Samayoa also admitted to serving as a straw buyer for the exporter and purchasing three BMWs in his name. In connection with these transactions, Samayoa falsely certified to a dealership that he was not purchasing the vehicle for export, and the dealership relied on that certification in making the sale.This case was investigated jointly by the FBI’s Washington Field Office and the Virginia DMV Law Enforcement Division Office of Enforcement and Compliance. Assistant U.S. Attorney Paul J. Nathanson is prosecuting the case.
Any person who believes they may have information regarding public corruption in the Northern Virginia area is encouraged to call the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225 or send an email to [email protected].
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Federal Jury Convicts Red Lake Man for Assaulting an InfantRead the Press Release
MINNEAPOLIS—Last week in federal court in Fergus Falls, a jury found a 40-year-old Red Lake man guilty of assaulting an infant while on the Red Lake Indian Reservation. On March 13, 2014, following a four-day trial, the jury convicted James White, Jr., on one count of assault resulting in serious bodily injury. White was indicted on October 22, 2013.
According to the indictment and evidence presented at trial, on August 30, 2013, White assaulted the infant. For his crime, White faces a potential maximum penalty of life in prison. United States District Judge John R. Tunheim will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.Federal Jury Convicts Man for Tax EvasionRead the Press Release
MINNEAPOLIS—Last week, a federal jury found a former executive of a Minnesota-based multi-level marketing company guilty of conspiracy to defraud the United States, tax evasion and failing to file federal tax returns. On March 14, 2014, following a seven-day trial, the jury convicted Michael Andrew Schlegel on one count of conspiracy to defraud the U.S., three counts of tax evasion and three counts of failure to file tax returns. Schlegel was indicted on April 9, 2013.
According to the indictment and evidence presented at trial, from 2002 through 2010, Schlegel, and his co-defendant Bradley Mark Collin, conspired with each other and others to defraud the U.S. by obstructing the Internal Revenue Service (“IRS”) in its lawful collection and assessment of individual income taxes. To that end, Schlegel failed to make any payments toward the back taxes, interest and penalties levied against him in 2000, which totaled more than $600,000. Both defendants also failed to file federal individual tax returns for tax years 2002-2009, pursuing “tax protestor” ideologies. On December 23, 2013, Collin pleaded guilty to one count of conspiracy to defraud the U.S.
From 2002 to 2009, Schlegel controlled NatureRich, Inc., a multi-level marketing company that sold natural and health-related products. Like similar companies, NatureRich paid commissions to salespeople based on direct sales and on the sales of downstream salespeople. At various times between 2002 and 2009, Schlegel and Collin received wages and commission payments from NatureRich that totaled more than $400,000. Schlegel also caused NatureRich to pay his commissions to a nominee trust called the “Andrew James Living Trust,” from which he then paid his family’s expenses. During that time, Schlegel also operated a painting business, receiving more than $400,000 in income from painting contracts.
In 2004, the defendants, through the use of nominee entities, began engaging the “warehouse” banking services of Olympic Business Systems and Century Business Concepts. “Warehouse” banking refers to the use of one or more bank accounts in which the funds of multiple clients are deposited, thereby concealing the true source of the funds.
The defendants also filed misleading federal corporate tax returns in the name of NatureRich in an effort to conceal the true extent of their personal interest in and the income derived from NatureRich. In all, the defendants attempted to conceal at least $3 million in gross income from the IRS, thereby avoiding income taxes on that income and also avoiding having those funds seized for payment of their previous tax debts.
For his crimes, Schlegel faces a potential maximum penalty of five years in prison on the conspiracy count, five years on each tax evasion count, and one year on each count of failure to file a tax return. Collin faces a potential maximum penalty of five years. U.S. District Judge Patrick J. Schiltz will determine their sentences at a future hearing, yet to be scheduled.
This case is the result of an investigation by the IRS-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and John E. Kokkinen.
Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.Federal Authorities Seize $5.7 Million in Cocaine, Detain Two SmugglersRead the Press Release
SAN JUAN, Puerto Rico –U.S. Magistrate Marcos E. López authorized a complaint charging Raddif Tapia-Rivera and Estevan DeCarlos with conspiracy to import 242 kilograms of cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Coast Guard, U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) seized a 469 pound cocaine shipment, a go-fast vessel, and apprehended two men following an at-sea interdiction 22 nautical miles southeast of Vieques, Puerto Rico Sunday morning. Federal law enforcement authorities involved in the interdiction were working in support of the Caribbean Border Interagency Group's (CBIG) Operation Caribbean Guard and the Caribbean Corridor Strike Force. The seized cocaine shipment was estimated to have a street value of approximately $5.7 million dollars, while the men detained claimed to be U.S. citizens from Puerto Rico.
“The US Attorney’s Office and our law enforcement counterparts remain committed to using every law enforcement tool available to attack these criminal organizations and ensure that drug traffickers and their associates are brought to justice for the damage they inflict on our communities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“Our effective interagency coordination efforts and aggressive patrolling of international and jurisdictional waters around Puerto Rico and the U.S. Virgin Islands allow us to successfully interdict these shipments at sea and bring those responsible to justice,” said Capt. Drew W. Pearson, Commander, Coast Guard Sector San Juan. “Our resolve and commitment are unwavering as we stand watch twenty-four seven to protect the safety and security of the citizens of Puerto Rico and the U.S. Virgin Islands from the threats delivered by the sea.”
While on a routine patrol in the Caribbean Sea late Saturday night, the crew of a U.S. Coast Guard HC-144 Ocean Sentry Maritime Patrol Aircraft (MPA) from Air Station Miami detected a 25-foot go-fast vessel, with two outboard engines and two subjects onboard, traveling northwest without any navigation lights, approximately 115 nautical miles southeast of Vieques. Coast Guard Sector San Juan Watchstanders, notified of the developing situation, diverted the Coast Guard Cutter Reef Shark to interdict the suspect vessel. A CBP Office of Air and Marine operations marine unit, with an Immigration and Customs Enforcement special agent onboard also responded, while Puerto Rico Police Joint Force for Rapid Actions, along the east coast of Puerto Rico, were alerted and ready to respond in the case the go-fast vessel entered Puerto Rico jurisdictional waters.
The Coast Guard MPA maintained constant surveillance as the Coast Guard Cutter Reef Shark arrived on scene and intercepted the go-fast vessel, approximately 22 nautical miles southeast of Vieques. The crew of the Reef Shark located the suspected illegal drug shipment in plain sight, a total of seven bales, and detained Tapia-Rivera y DeCarlos. A further inspection and testing of the suspected drug shipment revealed the contraband to be cocaine.
Custody of the two defendants, the narcotics, and the go-fast vessel were transferred by the Reef Shark to Special Agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) for further investigation and prosecution.
The Reef Shark is an 87-foot coastal patrol boat homeported in San Juan, Puerto Rico.If convicted, the defendants could face from 10 years up to life in prison. A criminal complaint contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.