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13 March 2014
Postal Employee Sentenced for Stealing Treasury Checks from the MailRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Nathaniel M. Johnson, aged 57, of Albany, Georgia, was sentenced by U.S. District Judge W. Louis Sands on Thursday, March 13, 2014, in Albany, to serve 15 months in the Bureau of Prisons for theft of mail by a postal employee.Mr. Johnson previously entered a guilty plea to the charge on October 4, 2013. As part of his plea agreement, Mr. Johnson admitted that, while he was a postal employee, he rifled through, opened and stole United States mail, including U.S. Treasury checks, during April 2013. There were 10 identified victims who experienced losses totaling more than $30,000.
“We all count on our postal employees to handle and deliver some of our most important things. From wedding invitations to tax returns and payroll checks, a great deal of trust is placed in postal workers. Most of the good folks at the post office care deeply about the people they serve, making sure that nothing stands in the way of the mail delivery. Unfortunately, Mr. Johnson cared more about enriching himself than serving the public and, in doing so, dishonored the many others whose dedication is legendary,” said U.S. Attorney Michael Moore.
“The United States Secret Service will continue to collaborate with our law enforcement partners to vigorously investigate the theft and negotiation of U.S. Treasury checks. We will work closely with prosecutors to ensure offenders, like Mr. Johnson, who abuse public trust are put behind bars,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
The case was investigated by the United States Postal Inspection Service and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Jim Crane.Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Plainfield, N.J., Woman Sentenced to 87 Months in Prison for Her Roles as Lookout, Getaway Driver in Armed Bank RobberiesRead the Press Release
NEWARK, N.J. - A Plainfield, N.J., woman was sentenced today to 87 months in prison for playing a role in three armed robberies of banks in Somerset and Middlesex counties, U.S. Attorney Paul J. Fishman announced.
Andrea Dorsey, 54, of Plainfield, N.J., previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging her with three counts of bank robbery. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Claude Williams, 62, of Elizabeth, N.J., was charged on Aug. 16, 2013, in a 17-count indictment with one count of conspiracy to commit bank robbery, seven counts of bank robbery, eight counts of using a firearm in furtherance of a crime of violence, and one count of attempted bank robbery. Those charges remain pending against Williams.
Williams would usually send an accomplice into banks shortly before robbing them. Dorsey admitted she went into banks to gather information for Williams about how many employees were working and served as the getaway driver during the armed robberies of the Financial Resources Federal Credit Union located in Somerset, N.J., on Sept. 26, 2011; the Somerset Savings Bank located in Somerville, N.J., on Nov. 21, 2011; and the Fulton Bank located in Metuchen, N.J., on June 20, 2012.
Williams and Dorsey were arrested July 30, 2012, near a Unity Bank in Somerset. Williams was wearing a bandana and law enforcement found a handgun and white gloves in the car.
In addition to the prison term, Judge McNulty sentenced Dorsey to four years of supervised release and ordered her to pay $59,387 in restitution.
The charges and allegations contained in the indictment against Williams are merely accusations and the defendant is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation. He also thanked the Somerset County Prosecutor’s Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Anthony J. Iacullo Esq., Nutley, N.J.Parkersburg Man Convicted of Accessing Child Pornography on Library ComputerRead the Press Release
Matthew John Wiggins was previously convicted of possessing child pornography in 2000
HUNTINGTON, W.Va. –A 41-year-old Wood County resident was convicted of accessing child pornography with intent to view it and attempting to persuade a person to destroy evidence after a two-day bench trial in Huntington, West Virginia, United States Attorney Booth Goodwin announced today. Chief United States District Judge Robert C. Chambers found that Matthew John Wiggins, of Parkersburg, West Virginia, knowingly accessed child pornography with intent to view it while he was logged on to a computer located at the Parkersburg and Wood County Library on January 16 and 17, 2013.
Chief Judge Chambers also found that on the eve of trial, Wiggins sent a letter to a person attempting to persuade that person to destroy a library card that Wiggins knew would be important evidence in his trial.
The investigation began when an Information Security Officer with the West Virginia Office of Information Security and Controls, an agency that monitors state computers for illegal activity, discovered that someone at the Parkersburg and Wood County Library was downloading child pornography images on a library computer on January 16 and 17, 2013. The Office of Information Security and Controls was able to trace the IP Address to a computer that was located on the main floor of the library. The Information Security Officer reported the illegal activity to the West Virginia Internet Crimes Against Children Task Force. On January 17, 2013, a member of the West Virginia Internet Crimes Against Children Task Force and two Parkersburg Police Department detectives went to the library and found Wiggins sitting at the computer on which he had downloaded child pornography on January 16 and 17. A forensic examination performed on that computer revealed that Wiggins accessed, with intent to view, over 50 images of child pornography.
Wiggins was previously convicted in federal court in the Southern District of West Virginia in 2000 for knowingly possessing child pornography and was sentenced to 27 months’ imprisonment. Within 11 days of being released from prison, he was found to be in possession of a computer, in violation of the terms and conditions of his supervised release. At that time, Wiggins admitted to using software designed to delete data on the computer he had at his residence. During Wiggins’ second term of supervised release, he was caught viewing pictures of naked young females on a computer located at the West Virginia University Parkersburg library and was sentenced to imprisonment for 12 months.
Wiggins faces a minimum mandatory 10 years’ and up to 40 years’ imprisonment, as well as a lifetime of supervised release. He is scheduled to be sentenced on July 7, 2014, in Huntington, West Virginia.
The investigation of Wiggins was conducted by the West Virginia Internet Crimes Against Children Task Force, with the assistance of the West Virginia Office of Information Security and Controls, the Parkersburg Police Department, the West Virginia State Police and the Federal Bureau of Investigation. Assistant United States Attorneys Lisa Johnston and Jennifer Rada were in charge of the prosecution.
This case was prosecuted as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims.
Pain Management Physician Charged with Overbilling MedicareRead the Press Release
BOSTON – A physician specializing in pain management was charged today for overbilling the Medicare program.
Fathalla Mashali, 59, of Dover, was indicted on nine counts of heath care fraud.
Mashali was a licensed physician in Massachusetts and Rhode Island who operated New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA. NEPA, a pain management clinic with locations in Massachusetts and Rhode Island, served many patients who were Medicare beneficiaries.
The indictment alleges that Mashali trained NEPA employees, including physician assistants and registered nurses, to overbill the Medicare program. Mashali overbooked patient appointments, sometimes with as many as four patients per slot, and arrived to work up to four hours late, causing significant overcrowding at NEPA’s waiting rooms. The patient appointments often lasted less than 10 minutes and sometimes as few as two to three minutes. Mashali often saw patients without performing physical examinations. The indictment also alleges that with the exception of patients requiring injections, Mashali conducted patient visits in a small office with a desk, resembling a business office, rather than in an examination room containing medical equipment. Nevertheless, Mashali submitted fraudulent claims to the Medicare program seeking reimbursement for patient services far exceeding in scope and duration the actual services he provided to patients.
If convicted, Mashali faces a maximum sentence under the statute on each count of health care fraud of 10 years in prison, three years of supervised release, a fine in the amount of $250,000 or twice the pecuniary gain to Mashali or loss to the Medicare program, and restitution.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Kimberly P. West and Lisa Asiaf-Schlatz of Ortiz’s Health Care Fraud Unit and Katherine Ferguson of Ortiz’s Drug Task Force Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ophthalmologist Agrees to Pay $1.4 Million and to 20 Year Voluntary Exclusion from Federal Programs to Settle Claims That He Performed Medically Unnecessary Laser ProceduresRead the Press Release
Baltimore, Maryland – John Arthur Kiely, M.D., of Lutherville, Maryland, has agreed to pay the United States $1.4 million to settle claims under the Federal False Claims Act that he submitted and caused the submission of false claims by Bon Secours Hospital to Medicare and Medicaid between October 29, 2002 and April 14, 2009. Kiely has also agreed to a 20 year voluntary exclusion from Federal health care programs.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Nicholas DiGiulio, Office of Inspector General of the Department of Health and Human Services, Philadelphia Region which includes Maryland.
“Medical advice must be motivated by the patient’s best interest and not by the doctor’s personal financial interest,” said U.S. Attorney Rod J. Rosenstein. “The government contended in this case that Dr. John Kiely performed glaucoma surgery because it was profitable for him, even when it was not necessary and not appropriate.”
“We are pleased Dr. Kiely agreed to resolve the allegations of falsely billing government health programs for unnecessary and excessive medical procedures,” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the United States Department of Health and Human Services. “We rely on physicians to perform only needed services and to bill appropriately. In addition to payment, Dr. Kiely has agreed to be excluded from participation in all Federal health care programs for at least 20 years.”The settlement arises out of an investigation that resulted in the United States filing a civil complaint on July 12, 2013 in U.S. District Court in Maryland, captioned United States v. John Arthur Kiely, M.D., Civil No. MJG-11-668, in which the United States charges that Kiely, a general ophthalmologist, submitted claims to Medicare and Medicaid for laser eye procedures that fell outside the medical standard of care. The government contends that because the procedures did not meet the medical standard of care, they were not reasonable and necessary as required for reimbursement by Medicare and Medicaid. The claims covered by the settlement agreement include Argon Laser Trabeculoplasties (ALTs) between October 29, 2002 and September 11, 2007; Lysis of Adhesions procedures between October 29, 2002 and April 14, 2009; and Laser Peripheral Iridotomies (LPIs) between November 12, 2002 and September 26, 2006. An ALT is a laser procedure performed to treat open angle glaucoma, while LPI is a laser procedure performed to treat narrow angle glaucoma. Kiely performed between 3 and 14 ALTs per eye on the 120 patients identified in the civil complaint, and also performed repeated Laser Peripheral Iridotomies and Lysis of Adhesions on many of these patients.
Kiely performed these laser procedures primarily at Bon Secours Hospital in Baltimore, Maryland. The settlement covers false or fraudulent claims submitted by him to Medicare and Medicaid directly, as well as hospital fees arising out of these laser procedures that he caused Bon Secours Hospital to submit to Federal health care programs.
Dr. Kiely denies the allegations.
Enacted during the Civil War, the False Claims Act is the government’s primary civil tool to combat fraud and abuse in federal programs and procurement. The Act allows the government to recover triple the amount of its actual damages, plus a civil penalty of $5,500 to $11,000 for each false claim and permits the payment of a portion of any settlement or judgment under the Act to individuals who bring fraud to the attention of authorities.
United States Attorney Rod J. Rosenstein commended Assistant U.S. Attorneys Tarra DeShields and Roann Nichols, who handled the case.
Ohio Hospital Pays $8.5 Million to Settle False Claims Act CaseRead the Press Release
Memorial Hospital (Memorial), an Ohio nonprofit corporation that operates an acute care hospital in Fremont, Ohio, has agreed to pay $8.5 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
“Improper financial relationships between health care providers and their referral sources can undermine physicians' judgment about patients' true health care needs and drive up health care costs for everyone,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. "The Justice Department is firmly committed to recovering the taxpayer dollars lost due to these arrangements and making sure that all health care providers follow the rules.”
The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that hospitals may have with doctors who refer patients to them. The settlement announced today involved allegations that financial relationships that Memorial had with two physicians – a joint venture between Memorial and a pain management physician and an arrangement under which an ophthalmologist purchased intraocular lenses and then resold them to Memorial at inflated prices - violated statutory requirements. These issues were disclosed to the government by Memorial.
"Physician referrals should be made exclusively based on what's best for the patient, not on financial relationships," said U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach. "We hope that this settlement will once again help drive that message home."
The improper referrals at issue in this matter included Medicaid patients. Medicaid is funded jointly by the states and the federal government. The State of Ohio, which paid for some of the Medicaid claims at issue, will receive $600,383 of the settlement amount.
“The price of such arrangements can be very costly to the nation’s health care system, taxpayers and provider organizations,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “So, we are pleased that Memorial stepped forward to disclose these improper financial relationships and is working to avoid future occurrences.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Northern District of Ohio and the Department of Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Obtaining Drugs by Deception Draws Jail TimeRead the Press Release
The United States Attorney's Office announced that CYD MARIE BABB, was sentenced to 6 months in prison followed by 1 year supervised release in connection with her guilty plea to obtaining pain killers through fraud. BABB was sentenced by U.S. District Judge Sam Haddon during a federal court session in Butte, on February 21, 2014.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government stated that on or about May 19, 2013, in Bozeman, the defendant knowingly acquired and obtained possession of Schedule III controlled substance, Hydrocodone, by means of misrepresentation, fraud, deception, and subterfuge, namely by falsely presenting herself as a person authorized to prescribe and receive controlled substances.
Babb used her cellular telephone number to call in fraudulent Schedule III hydrocodone prescriptions to pharmacies throughout Montana by posing as a nurse, calling from a medical office, and requesting a prescription for a nonexistent patient. According to DEA records, Babb used the DEA registration numbers and names of approximately 26 different medical professionals to forge prescriptions in approximately 50 different fraudulent patient names to obtain hydrocodone.
Many of the pharmacies where Babb called in the fraudulent prescriptions have video surveillance and/or photographs of Babb entering the store, picking up, and paying for the fraudulent prescription from the pharmacy.
An analysis revealed that Babb's cellular telephone number was used to make approximately 1000 calls to 58 different pharmacies located in 17 different cities in 14 counties within the State of Montana; two pharmacies located in Coeur d'Alene and Hayden Lake, Idaho; and one pharmacy in Gillette, Wyoming, from August 20, 2011 through June 25, 2013.
More specifically, on May 19, 2013, Babb used her cell phone to call in a fraudulent prescription for180 pills of Lortab (hydrocodone) a Schedule III controlled substance at Price Rite Pharmacy in Bozeman, Montana. Babb told the pharmacy that she was calling from a doctor's and fraudulently used the doctor's DEA number to call in a prescription for a fictitious patient.
Babb then later went to Price Rite Pharmacy and claimed to be there to pick up the Lortab prescription for and on behalf of the fictitious patient. After Babb tendered payment, the pharmacy gave the Lortab prescription to Babb. Babb did not work for the doctor's office and was not authorized to use the doctor's DEA number to call in a prescription.
Drug Enforcement Administration agents later interviewed the pharmacist at Price Rite Pharmacy. The pharmacist told agents that Price Rite had received numerous prescriptions for large amounts of Hydrocodone that were picked up by a stocky, middle-age female. Agents showed the pharmacist and a pharmacy technician a photo line-up containing Babb. Both individuals identified Babb as the female that picked up the prescription for the fictitious patient.
Nine Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
Gang Members Allegedly Committed Murders, Attempted Murders, Stabbings, Extortion and Witness Tampering
Greenbelt, Maryland – A federal grand jury returned a superseding indictment charging the following defendants in connection with a conspiracy to participate in murder in aid of a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:
Jorge Enrique Moreno-Aguilar, aka “Flaco” and “Castigato,” age 20, of District Heights, Maryland; Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 25, of District Heights; Melvin Marquez-Sanchez, aka “Demente,” age 19, formerly of New York; Carlos Beltran-Flores, aka “Joker,” age 22, of Hyattsville, Maryland; Francisco Hernandez, aka “Chicle,” age 20, of Silver Spring, Maryland; Wilmer Argueta, a/a “Chengo” and “Happy,” age 21, of Hyattsville; Eric Antonio Mejia-Ramos, aka “Flaco,” age 20, of Hyattsville; Minor Perez-Chach, aka “Minor Chach-Perez,” “Little Bad” and “Bryant Sacarias, age 23, of Hyattsville; and
Miguel Angel Manjivar, aka “Garra” and “Masflow,” age 21, of Hyattsville.The superseding indictment was returned on March 7, 2014 and unsealed yesterday upon the arrest of defendant Hernandez. All of the defendants are in custody.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.
“Attacking and dismantling violent criminal enterprises like MS-13 is one of HSI’s highest enforcement priorities,” said HSI Baltimore Special Agent in Charge William Winter. “Our investigation revealed that MS-13 is an enterprise that participates in criminal acts, such as murder, attempted murder, violent assaults, witness intimidation and retaliation, and extortion. HSI special agents will continue to work with our local, state and federal law enforcement partners to target MS-13 members and other transnational criminal street gangs that are a rising public safety threat in our communities.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.
The 12 count indictment alleges that from prior to 2009 to February 2014, the defendants were members and associates of MS-13 who planned and committed murders, attempted murders, assaults and robberies in Montgomery and Prince George’s Counties. Gang members also allegedly extorted high school students and brothel operators, committed witness tampering and obstructed justice, among other crimes.
More specifically, the indictment alleges the following murders. On January 10, 2011, defendant Manjivar and several other MS-13 members repeatedly stabbed two individuals believed to be affiliated with the rival 18th Street Gang, killing one and attempting to kill the other. On August 28, 2012, defendant Mejia-Ramos and others murdered a woman believed to be a rival gang member, by shooting her in the head. On February 23, 2013, defendant Perez-Chach and another MS-13 member murdered a person believed to be a former MS-13 member who had testified in federal court against several MS-13 members in a prior federal racketeering prosecution in Maryland, attacking him with a knife and machete.
From January 2011 to December 2012, Manjivar, Hernandez, Beltran-Flores, Mejia-Ramos and other MS-13 members are alleged to have planned and/or participated in the attempted murder of four individuals believed to be affiliated with rival gangs including the 18th Street Gang, Adelphi Crew, Latin Kings and Lewisdale Crew. One of these victims was targeted for murder to prevent him from testifying at trial in the Circuit Court for Prince George’s County against defendant Argueta.
Additionally, the indictment alleges that Hernandez, Beltran-Flores, Argueta and other MS-13 members threatened to kill a fellow gang member unless he paid them a weekly or bi-weekly “rent” or “tax,” which gang members collected from the victim from at least March to November, 2011. Five others are alleged to have been assaulted, including one victim who was stabbed with a butterfly knife.
Moreno-Aguilar, Ortiz-Orellana, Marquez-Sanchez, Beltran-Flores, Mejia-Ramos, Perez-Chach and Manjivar face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise, and Hernandez and Argueta face 20 years in prison. Moreno-Aguilar and Ortiz-Orellana also face a maximum sentence of life in prison for murder in aid of racketeering; murder resulting in the use of a gun; and using a firearm during a crime of violence. Beltran-Flores also faces a maximum sentence of life in prison for using a firearm during a crime of violence and 20 years in prison for conspiring to commit witness tampering and for witness tampering by attempted murder. Defendant Hernandez had his initial appearance in federal court in Greenbelt yesterday. The other defendants are expected to have their initial appearances beginning next week.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County and Montgomery County Police Departments, Prince George’s County State’s Attorney’s Office, the Takoma Park Police Department and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau and Kevin L. Rosenberg, a Trial Attorney with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Newport News Man Pleads Guilty to MurderRead the Press Release
NEWPORT NEWS, Va. – Kevin L. Ashby, 25, of Newport News, Va., pleaded guilty yesterday to participating in a racketeering conspiracy and violence in aid of racketeering including murder.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, FBI Special Agent in Charge Royce E. Curtin, and, Richard Meyers, Chief of Newport News Police, made the announcement after the plea was accepted by United States District Judge Raymond Jackson.
Ashby was indicted by a federal grand jury on July 17, 2013, for his participation in a racketeering conspiracy, two counts of murder in aid of racketeering, as well as numerous firearm and robbery charges. Ashby faces a mandatory life sentence when he is sentenced on June 26, 2014.
According to court documents, Ashby was part of a criminal organization known locally as “Thug Relations,” alternatively known as “the Duct,” “Warwick Lawnz,” “TR,” and “from the Duct to the Lawnz,” a neighborhood gang operating in the Aqueduct Apartments, St. Michael’s Apartments, Mariner’s Landing Apartments, Heritage Trace Apartments, as well as Warwick Lawns, Warwick Town Home, Sharon Drive, and the Savage Drive areas of Newport News, Virginia. Ashby admitted his participation in the racketeering conspiracy as charged in the indictment, that alleged a criminal enterprise engaged in murder, attempted murder, witness intimidation, robbery, and narcotics distribution. The indictment specifically charged the murders of Andre Horton and Andre Julius Johnson on May 17, 2009, the murder and robbery of Lafayette Bailey on December 15, 2009, and the murder and robbery of Lloyd Robinson on January 8, 2010. Ashby admitted his involvement in this criminal activity in a statement of facts filed in open court at the time of his guilty pleas.
This investigation was led by FBI and the Safe Streets Task Force, with assistance from the Newport News Police and the Virginia State Police. Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel, and Special Assistant United States Attorney Jonathan A. Ophardt are prosecuting the case on behalf of the United States.
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.
New York Men Charged with Extorting Connecticut ResidentRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ERNEST SYKU, 43, of the Bronx, N.Y., and ROBERT FRANCELLA, also known as “Bobby Fingers,” 54, of Yonkers, N.Y., were arrested today on a federal criminal complaint charging them with collection of an extension of credit by extortionate means.
According to statements made in court, SYKU and FRANCELLA are alleged to have threatened a Connecticut resident with violence in order to induce this individual to pay an alleged $240,000 debt.
Following their arrests, SYKU and FRANCELLA appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and were detained pending detention hearings that are scheduled for next week.
If convicted of the charge of collection of an extension of credit by extortionate means, both SYKU and FRANCELLA face a maximum term of imprisonment of 20 years and a fine up to $250,000.
U.S. Attorney Daly stressed that a complaint is only a charge and 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 FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation Division, the Bridgeport Police Department, and the Connecticut State Police. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
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(203) 821-3722 [email protected]New Federal Law on Animal FightingRead the Press Release
U.S. Attorney’s Office, The Humane Society of the United States Applaud Animal Fighting Spectator Prohibition Act
Montgomery, Alabama - George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, and the Humane Society of the United States are raising public awareness of the newly enacted federal animal fighting law that makes it a felony to knowingly bring a child under the age of 16 to an animal fight and a misdemeanor to knowingly attend an animal fight.
Since 2008, it has been a federal felony to sponsor, exhibit, buy, sell, deliver, possess, train or transport an animal for participation in an animal fighting venture. This crime is punishable by a term of imprisonment of five years and a fine of $250,000.
The newly enacted Animal Fighting Spectator Prohibition Act, which was included in the final 2014 Farm Bill, makes it a federal felony to knowingly bring a minor under the age of 16 to a dogfight or cockfight, punishable by up to three years in prison and a $250,000 fine, and a federal misdemeanor to knowingly attend a fight as a spectator, punishable by up to one year in prison and a $100,000 fine. The HSUS and the U.S. Attorney’s Office, who worked together in the second-largest dogfighting raid in U.S. history, praise these upgrades, which provide law enforcement with additional tools to put an end to organized dogfighting and cockfighting.
George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, said: “Animal fighting is a cruel activity, it is not a sport. No one should have to watch such brutality, but it is particularly outrageous to expose children to these fights because it desensitizes them to violence and brutality. Criminals also use these animal fights to sell drugs and hide illegal profits. The enactment of this new law gives us additional law enforcement tools to crack down on this barbaric activity and the other crimes that go along with it.”
Wayne Pacelle, president and CEO of The Humane Society of the United States, said: “The recent upgrades to the federal animal fighting law mean that the entire cast of characters involved in these criminal enterprises is subject to arrest and prosecution, and these people face a brighter future if they give up their cruel hobby. We commend the U.S. Attorneys’ Office for taking on the scourge of organized animal fighting, and we look forward to providing whatever assistance federal law enforcement needs to uproot that criminal underworld.”
In August 2013, The Humane Society of the United States and the ASPCA ® (The American Society for the Prevention of Cruelty to Animals), at the request of the United States Attorney's Office and the Federal Bureau of Investigation, assisted in seizing 367 dogs in coordinated raids across Alabama, Mississippi and Georgia. Thirteen people have been arrested as a result of these raids and trial is scheduled for May 2014.
The federal Animal Fighting Spectator Prohibition Act had the bi-partisan support of Congress and was enacted into law as part of the Farm Bill in February. Since 2002, the federal law on animal fighting has been upgraded four times.
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Fax: (334) 223-7617Nevada Man Pleads Guilty to Federal Drug Charges in IdahoRead the Press Release
BOISE – Jose E. Carrillo, 26, of Las Vegas, Nevada, pleaded guilty today in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Carrillo was indicted by a federal grand jury in Boise, Idaho, on May 29, 2013.
According to the plea agreement, Carrillo admitted that on April 13, 2013, he met with and delivered methamphetamine to an undercover officer at a parking lot in Meridian, Idaho.
The charge is punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Carrillo is set for sentencing on May 29, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration (DEA), in conjunction with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Meridian Police Department, and the Ada County Sheriff’s Office. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Navajo Man Sentenced to Twenty Years in Federal Prison for Sexually Abusing a Child in San Ildefonso PuebloRead the Press Release
ALBUQUERQUE – Samuel Billy, 49, an enrolled member of the Navajo Nation who resides in El Rancho, N.M., which is located in San Ildefonso Pueblo, was sentenced this morning to 20 years in federal prison followed by ten years of supervised release for his child sexual abuse conviction. Billy will be required to register as a sex offender after he completes his prison sentenced. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Billy was arrested on Jan. 7, 2013, on a criminal complaint alleging that he sexually abused a child less than 12 years old in early Nov. 2012. According to the complaint, Billy sexually abused the child victim, who was left in his care, in his residence in San Ildefonso Pueblo on at least two occasions. Billy subsequently was charged in a four-count superseding indictment with three counts of aggravated child sexual abuse and one count of abusive sexual contact. The indictment alleged that Billy sexually abused the child victim on four separate occasions between Nov. 1, 2012 and Dec. 31, 2012, in a location within San Ildefonso Pueblo.
On Sept. 12, 103, Billy pleaded guilty to a felony information charging him with sexual abuse. During his plea hearing, Billy admitted touching the child victim’s genitals while the victim was sleeping and incapable of appraising the nature of the conduct.
This case was investigated by the Santa Fe office of the FBI and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito 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/.
Natrona Convenience Store Owner Pleads Guilty to Food Stamp FraudRead the Press Release
PITTSBURGH – A convenience store owner pleaded guilty in federal court to charges of conspiracy, food stamp fraud and money laundering, United States Attorney David J. Hickton announced today.
Waqar A. Malik, 56, of Cheswick, Pa., pleaded guilty to three counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, Malik, the owner of the Natrona Mart in Natrona, Pa., allowed federal Supplemental Nutrition Assistance Program (SNAP) food stamp beneficiaries to purchase non-eligible items such as cigarettes, tobacco products and soap with their EBT benefit card. Because of these transactions, Malik received funds from the United States government to which he was not entitled.
The law provides for a maximum total sentence of not more than 35 years in prison, a fine of $750,000, 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 U.S. Department of Agriculture-Office of Inspector General, the Internal Revenue Service-Criminal Investigations and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) conducted the investigation that led to the prosecution of Waqar A. Malik.
Milton Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
CONCORD, NEW HAMPSHIRE –Wayne Willey, 54, of Milton, was sentenced in United States District Court for the District of New Hampshire to 20 months in prison for possession of methamphetamine with the intent to distribute, announced United States Attorney John P. Kacavas.
Members of the New Hampshire State Police and United States Postal Inspection Service seized a package containing approximately one ounce of methamphetamine which was destined for Willey. The package was shipped to Willey from Daniel Preston, a resident of Monument, Colorado. During an ensuing investigation, law enforcement agents determined that from January 2011 through January 2012, Preston shipped quantities of methamphetamine from Colorado to Willey in New Hampshire. Once the methamphetamine arrived in New Hampshire, Willey would repackage it in gram quantities and distribute it.
Preston pled guilty to conspiracy to distribute methamphetamine and distribution of methamphetamine and is scheduled to be sentenced in May 2014.
The case was investigated by the New Hampshire State Police and the United States Postal Inspection Service, and prosecuted by Assistant United States Attorney Terry L. Ollila.
Milo Robert Cook III Sentenced to 96 Months in Prison for Drug OffensesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 5, 2014, MILO ROBERT COOK III, 34, of Billings, was sentenced to 96 months in prison, followed by 5 years supervised release by Senior U.S. District Judge Donald Molloy. The sentence followed Cook's December 2013 guilty plea to Possession of Methamphetamine with the Intent to Distribute.
In an Offer of Proof filed by Assistant U.S. Attorney Joe Thaggard, the Government stated that In approximately November 2012, law enforcement officers in Billings, Montana, began to investigate allegations that the Defendant was involved in the distribution of methamphetamine.
On November 15, 2012, law enforcement officers in Billings seized approximately 11 grams of suspected methamphetamine from the Defendant's vehicle. A chemical analysis of the substance disclosed it consisted of 11.6 grams of a substance containing a detectable amount of methamphetamine; 11 grams of the substance was actual (pure) methamphetamine.
On or about March 11, 2013, Tomas Alvarado was arrested in Idaho in possession of a large amount of cocaine and methamphetamine which he was transporting to Billings for distribution. The following day, law enforcement officers in Billings interviewed Alvarado. Alvarado stated he met the Defendant in approximately October 2012, in Nevada. Alvarado stated that, over the ensuing months, he provided more than 500 grams of a methamphetamine to the Defendant to distribute in the Billings area.
On March 14, 2013, law enforcement officers executed a search warrant on the residence of Walter White, which is located in Lockwood. They recovered methamphetamine packaged for distribution.
The officers interviewed White. White admitted that he had received methamphetamine from Alvarado between October 2012 and March 2013. White stated that he provided over 500 grams of methamphetamine to the Defendant to distribute during that time period.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
The case was investigated by the Drug Enforcement Administration and Billings area law enforcement.
Michigan Man Pleads Guilty to Highland Bank RobberyRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Ramsey Z. Fakhouri, 22, of Troy, Michigan, pled guilty today to an indictment charging him with bank robbery.
The charge relates to an incident that occurred on February 14, 2014, in Highland, Illinois, when Fakhouri, with the help of another man, robbed the Bradford National Bank in Highland, Illinois.
Documents filed with the court reveal that Fakhouri and the other man traveled from Michigan to Highland, where the other man, armed with an air gun which looked like a real firearm, robbed a bank employee of cash. The employee was about to put the cash into the bank’s ATM machine outside the bank. The total amount stolen was $25,780.
Fakhouri was arrested when he returned to the Highland Police Department, claiming that images he had seen in the media, which looked like Fakhouri, were not of him. However, upon questioning by the police, Fakhouri admitted that he and another were the perpetrators – the other being the person who robbed the employee, and Fakhouri being the driver of the getaway car. The other suspect, who is presumed innocent until proven guilty beyond a reasonable doubt, was later apprehended on February 17, 2014, in Chesterfield, Michigan.
Sentencing for Fakhouri is set for July 11, 2014.
The case was investigated by members of the Highland Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Memorial Hospital in Ohio Pays Government $8.5 Million <br /> to Settle False Claims Act AllegationsRead the Press Release
Memorial Hospital (Memorial), an Ohio nonprofit corporation that operates an acute care hospital in Fremont, Ohio, has agreed to pay $8.5 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
“Improper financial relationships between health care providers and their referral sources can undermine physicians' judgment about patients' true health care needs and drive up health care costs for everyone,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. "The Justice Department is firmly committed to recovering the taxpayer dollars lost due to these arrangements and making sure that all health care providers follow the rules.”
The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that hospitals may have with doctors who refer patients to them. The settlement announced today involved allegations that financial relationships that Memorial had with two physicians – a joint venture between Memorial and a pain management physician and an arrangement under which an ophthalmologist purchased intraocular lenses and then resold them to Memorial at inflated prices - violated statutory requirements. These issues were disclosed to the government by Memorial.
"Physician referrals should be made exclusively based on what's best for the patient, not on financial relationships," said U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach. "We hope that this settlement will once again help drive that message home."
The improper referrals at issue in this matter included Medicaid patients. Medicaid is funded jointly by the states and the federal government. The State of Ohio, which paid for some of the Medicaid claims at issue, will receive $600,383 of the settlement amount.
“The price of such arrangements can be very costly to the nation’s health care system, taxpayers and provider organizations,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “So, we are pleased that Memorial stepped forward to disclose these improper financial relationships and is working to avoid future occurrences.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Northern District of Ohio and the Department of Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Media Advisory - Press Conference March 17Read the Press Release
United States Attorney Brendan V. Johnson will hold a Press Conference on Monday, March 17, 2014, at 11:30 a.m. CST.
Discussed will be the sentencing of Mohammed Alaboudi for Sex Trafficking in Sioux Falls; recent cases of commercial Sex Trafficking and the law enforcement collaboration that led to the prosecutions; and continuing efforts to combat Human Trafficking.
WHO: Brendan Johnson, U.S. Attorney
Marty Jackley, South Dakota Attorney General
Aaron McGowan, Minnehaha County State’s Attorney
Doug Barthel, Chief of Police, Sioux Fall Police Department
Paul Niedringhaus, Captain, Minnehaha County Sheriff’s Office
Joseph Weir, Supervisory Special Agent, Federal Bureau of Investigation
Michael Janak, Resident Agent in Charge, Homeland Security Investigations
Mike Melcher, Federal Bureau of Investigation
WHAT: Press Conference
WHEN: Monday, March 17, 2014, at 11:30 a.m. CST. Members of the media should arrive by 11:00 a.m. due to extra security measures.
WHERE: United States Attorney's Office, 325 S. 1st Ave., Suite 300, Sioux Falls, SD.
NOTE: Media must enter through the third floor reception area. ALL media MUST PRESENT GOVERNMENT-ISSUED PHOTO ID (such as driver’s license) as well as VALID MEDIA CREDENTIALS. Press inquiries regarding logistics should be directed to Community Services Coordinator Ace Crawford at 605.341.1915 or 605.838.6092.
Man Gets 2 Years in Prison After Being Caught Burglarizing A Wolf Point HomeRead the Press Release
The United States Attorney's Office announced that after being caught fleeing with stolen electronics from a stranger's home, BRANDON MICHAEL JACKSON, aka BRANDON BUCKLES, was sentenced on March 11, 2014, to two years in prison, three years supervised release, and ordered by a judge to pay over $7,000 in restitution to the family whose house he burglarized with two others.
U.S. District Court Judge Brian M. Morris sentenced JACKSON, 28, of Wolf Point, Montana, following JACKSON's entry of a guilty plea to a single-count federal indictment for burglary. In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On or about July 6, 2012, JACKSON burglarized a house in Wolf Point, Montana, after allegedly following two other men to a "house party" there. He and two others entered the unoccupied house and began taking things from the home, including electronics and jewelry.
The owners were on vacation. None of the three men had permission to be in the home. The home owner's son and two friends returned to the house and the burglars were still in the home. After hearing people shuffling upstairs, they armed themselves with various makeshift weapons, including a two-by-four. Jackson was caught carrying a television as he ran down the stairs. Jackson threw the television at them and fled, throwing jewelry out of his pockets as he left the residence. The other two burglars also fled the house, dropping items in the yard and neighborhood.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that Jackson will likely serve all of the time imposed by the court. In the federal system, Jackson does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Fort Peck Tribes Department of Law and Justice
Malian National Indicted for Murder of U.S. Diplomat to Be Arraigned Today in Brooklyn Federal CourtRead the Press Release
Alhassane Ould Mohamed, also known as “Cheibani,” a Malian citizen charged with the murder and attempted murder of United States Embassy personnel stationed in Niamey, Niger, in December 2000, will be arraigned today at 2:00 p.m. in the Eastern District of New York. Mohamed was extradited to the United States by the Malian government, and today will be his first appearance on these charges in the United States.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
“The investigation indicates that the defendant and his confederate brazenly shot and killed U.S. diplomat William Bultemeier in Niger, and wounded U.S. Marine Christopher McNeely as he bravely risked his life to attempt to save his colleague. Today’s extradition shows that the sacrifice of Mr. Bultemeier and the courage of Staff Sergeant McNeely in service to this country have not been forgotten. The tireless efforts of the United States in bringing the defendant to face these charges demonstrate our commitment to bringing to justice those charged with harming our diplomats and embassy personnel,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the governments of Mali and Niger for their exceptional assistance and cooperation in this investigation.
“An attack on U.S. Government personnel, whether domestic or abroad, is an attack on the United States. The extradition of the defendant by the Malian Government to the United States to face charges of murdering U.S. diplomat Bultemeier and attempting to murder Staff Sergeant McNeely is a testament to the cooperative efforts of our law enforcement and international partners. The arms of our justice system are long and far-reaching, and this case should send a clear message to all fugitives: the U.S. Government will not rest until they are brought to justice for their crimes,” stated FBI Assistant Director-in-Charge Venizelos.
According to the indictment, in the early morning hours of December 23, 2000, the defendant and a co-conspirator accosted a group of employees of the United States Embassy in Niger as they left a restaurant in Niamey, Niger. Carrying a pistol and an AK-47 assault rifle, the two men approached Department of Defense official William Bultemeier as he was about to enter his car, a white sport-utility vehicle bearing diplomatic license plates clearly indicating that it belonged to the United States Embassy. The defendant demanded that Mr. Bultemeier turn over the keys to the diplomatic vehicle and shot Mr. Bultemeier with the pistol. Staff Sergeant Christopher McNeely, the Marine Detachment Commander for the United States Embassy in Niger at the time, ran to Mr. Bultemeier’s aid. The defendant’s co-conspirator then fired his AK-47 at Mr. Bultemeier and Staff Sergeant McNeely, hitting them both. After rifling through Mr. Bultemeier’s pockets to get the car keys, the defendant and his fellow assailant drove away in the United States Embassy vehicle.
Mr. Bultemeier died of the injuries inflicted by the gunshot wounds. Staff Sergeant McNeely survived the shooting, and later retired from the Marine Corps as a Master Sergeant.
On September 13, 2013, a grand jury in the Eastern District of New York returned a sealed indictment charging the defendant with one count of murdering an internationally protected person, in violation of Title 18, United States Code, Section 1116(a), and one count of attempting to murder an internationally protected person, in violation of Title 18, United States Code, Section 1116(a). At the request of the United States, the Malian government thereafter commenced extradition proceedings against the defendant in December 2013, and he was ordered extradited in January 2014 in accordance with the Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad and Celia Cohen, with assistance from Trial Attorney Jennifer Levy of the Justice Department’s Counterterrorism Section and Trial Attorney Dan E. Stigall of the Justice Department’s Office of International Affairs.
The Defendant:
ALHASSANE OULD MOHAMED
Age: 43
Maine Resident Sentenced for Engaging <br /> in Cyber “Sextortion” of New Hampshire VictimRead the Press Release
John Bryan Villegas, 23, of Kittery, Maine, was sentenced today in federal court in New Hampshire to serve 33 months in prison for engaging in a type of cyber stalking known as “sextortion,” announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney John P. Kacavas of the District of New Hampshire.
On Sept. 18, 2013, Villegas pleaded guilty to an information charging him with one count of engaging in cyber stalking. The information charges that Villegas attempted to extort a New Hampshire female into providing him with sexually explicit photographs and videos of her. He sent her e-mail messages in which he threatened to publish on the internet – and distribute to the victim’s neighbors and work and social acquaintances – other sexually explicit photographs of the victim that were stored on her laptop computer, which had been recently stolen during a burglary of her residence. On Jan. 9, 2014, Villegas pleaded guilty in New Hampshire state court to charges that he committed that burglary.
The case was investigated by the U.S. Secret Service and was prosecuted by Senior Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.
The department would like to thank the Dover, N.H., and Kittery, Maine, police departments and the Naval Criminal Investigative Service for their cooperation.Maine Resident Sentenced for Engaging in Cyber "Sextortion" of New Hampshire VictimRead the Press Release
WASHINGTON – John Bryan Villegas, 23, of Kittery, Maine, was sentenced today in federal court in New Hampshire to serve 33 months in prison for engaging in a type of cyber stalking known as “sextortion,” announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney John P. Kacavas of the District of New Hampshire.
On Sep. 18, 2013, Villegas pleaded guilty to an information charging him with one count of engaging in cyber stalking. The information charges that Villegas attempted to extort a New Hampshire female into providing him with sexually explicit photographs and videos of her. He sent her e-mail messages in which he threatened to publish on the internet – and distribute to the victim’s neighbors and work and social acquaintances – other sexually explicit photographs of the victim that were stored on her laptop computer, which had been recently stolen during a burglary of her residence. On Jan. 9, 2014, Villegas pleaded guilty in New Hampshire State Court to charges that he committed that burglary.
The case was investigated by the U.S. Secret Service and was prosecuted by Senior Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.
The department would like to thank the cooperation of the Dover, New Hampshire, and Kittery, Maine, police departments and the Naval Criminal Investigative Service.
Local Man Sentenced to 30 Years in Marijuana Trafficking ConspiracyRead the Press Release
St. Louis, MO – The leader and the final of a 24-defendant, multi-hundred kilogram marijuana trafficking conspiracy ring was sentenced to 30 years in prison this morning by United States District Judge Carol E. Jackson. According to court documents and testimony presented at trial, David Ingram Henderson was the leader of an organization involved in the transportation of more than a ton of bulk marijuana from Arizona to the St. Louis area beginning in the summer of 2006 and continuing to June 2010.Henderson devised a system in which he would use members of the conspiracy to drive multiple rental vehicles with license plates from various states back from Arizona. One of these vehicles would be loaded with a large amount of marijuana intended for distribution in the St. Louis area and the other vehicles would travel in tandem with the loaded vehicle to serve as decoys designed to direct law enforcement attention away from the loaded vehicle. Additionally, Henderson headed another conspiracy that operated indoor marijuana growing operations at various locations in St. Louis City and County.
DAVID INGRAM HENDERSON, Maryland Heights, Missouri, was convicted in November 2013 of one felony count each of conspiracy to distribute and possess with intent to distribute over 1000 kilograms of marijuana; conspiracy to manufacture over 100 plants of marijuana and the manufacture of 100 marijuana plants.
Twenty-three co-defendants previous pleaded guilty to related charges and have been sentenced.
This case was investigated by the Drug Enforcement Administration, U.S. Border Patrol, Nebraska State Patrol, Arizona Department of Safety, Phoenix Police Department, Hall County Nebraska Sheriff’s Department, O’Fallon Police Department and Maryland Heights Police Department.
Local Man Convicted of Kidnapping and A Firearm OffenseRead the Press Release
Follow @SDILNewsAntwon D. Jenkins was found guilty today of kidnapping or aiding and abetting kidnapping and using or carrying a firearm during or in relation to the kidnapping or aiding and abetting kidnapping, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The verdict was returned early this afternoon, following a three-day trial.
According to Court documents, Antwon D. Jenkins, was indicted in August 2012 on two counts, kidnapping or aiding and abetting kidnapping, and using or carrying a firearm during or in relation to the kidnapping or aiding and abetting kidnapping. Trial commenced on March 10, 2014, in the United States District Court for the Southern District of Illinois in East St. Louis, Illinois.
The evidence at trial showed that on July 17, 2012, Jenkins lured a young man to his house in East St. Louis, Illinois. While there, Jenkins and others brutally attacked the young man and accused him of committing a burglary on Jenkins’ second home in Cahokia. After some time, Jenkins told the young man they were going to “take that ride.” The young man was walked outside and put into Jenkins’ truck where the young man could not get out. Jenkins drove the young man across the Poplar Street Bridge and into Franklin County, Missouri. During the drive, Jenkins pulled off Highway 44 twice and threatened the young man twice at gunpoint. The second time Jenkins pulled over, he told the young man to get out of the truck so Jenkins could shoot him in the back. Fortunately, the victim ran off into the woods and escaped. Jenkins was arrested a few days later.
“This case would not have been successful without the courage and dedication of the investigators, the witnesses, the victim, and his family. It is never easy for crime victims to face their perpetrators in court, and this case was no exception. We are especially appreciative of the cooperative efforts of the Federal Bureau of Investigation, the Illinois State Police, the Columbia, Illinois Police Department, and the East St. Louis, Illinois, Police Department, who comprised the Save Our Streets Task Force active in the summer of 2012, and investigated this case.” noted United States Attorney Wigginton.
Jenkins faces the possibility of spending the rest of his life in prison when he is sentenced. Sentencing has been set for June 27, 2014. The case was tried by Assistant United States Attorneys Monica A. Stump and Scott A. Verseman.
Leader of Stolen Identity Refund Fraud Ring Sentenced to JailRead the Press Release
Christopher Davis, of Montgomery, Ala., was sentenced today to serve 60 months in prison, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Davis was also ordered to forfeit $300,559, which represented the proceeds of his offenses. Davis previously pleaded guilty to charges of conspiracy to defraud the United States, wire fraud and aggravated identity theft.
According to court documents and evidence from the sentencing, Davis was the leader of a multi-state tax fraud conspiracy that operated by filing false tax returns using stolen identities, causing the Internal Revenue Service (IRS) to issue tax refunds. Davis obtained personal identifying information from different sources, including a medical facility in Alabama. He and a co-conspirator, Kenneth Blackmon, who was sentenced to serve 51 months in prison in April 2013, would then file false tax returns using the stolen identities in which they would direct the fraudulently claimed tax refunds to be deposited onto prepaid debit cards.
According to court documents, Davis recruited Blackmon and several other individuals involved in the conspiracy to act as paid runners to help with obtaining the refund money. Davis and Blackmon, who both lived in Alabama, would organize trips to Georgia and South Carolina during which the runners would use the debit cards loaded with fraudulently obtained tax refunds to make cash withdrawals at numerous locations across both states, and then provide the cash to Davis and Blackmon. The runners would also buy new debit cards for use in the ongoing scheme. In his plea agreement, Davis admitted that at one point during the scheme he had over 600 stolen identities and 200 prepaid debit cards with him in Georgia.
The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorney Jason Poole for the Tax Division and Assistant U.S. Attorney Todd Brown prosecuted the case. The Alabama Department of Pardons and Paroles and the Gwinnett County Sheriff’s Department in Georgia provided assistance in the investigation.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Kern County Man Indicted on Drug and Gun Charges After A Lengthy, Multi-Agency InvestigationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today charging Jose Trinidad Salas, 43, of McFarland, with conspiring to distribute and possess with the intent to distribute methamphetamine, cocaine and marijuana, being a felon in possession of a firearm, and being a person in the United States unlawfully in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
The indictment alleges that between January 2010 and February 26, 2014, Salas and others conspired to distribute methamphetamine and other drugs. Court documents allege that pound quantities of methamphetamine were seized in New Mexico and Southern California from associates of Salas that are believed to have been destined for Mississippi. The indictment further alleges that Salas possessed firearms while being a prohibited person. Salas is alleged to have a felony conviction for a drug offense and also to be in the United States unlawfully.
This case is the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kern County Sheriff’s Department, and the Bakersfield Police Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Salas faces a statutory penalty of 10 years to life in prison and a $10 million fine for the drug conspiracy and up to 10 years in prison and a $250,000 fine for the weapons charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Kennewick Man Sentenced for Distribution of MethamphetamineRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Alfredo Ozuna Ahumada, a resident of Kennewick, Washington, was sentenced to 100 months in prison following his plea of guilty to one count of Distribution of Methamphetamine, in violation of 21 U.S.C. section 841(a)(1). Senior U.S. District Judge Edward F. Shea sentenced Ahumada in Richland, Washington.
The indictment alleged that, on May 14 of 2013, the Defendant distributed over 5 grams of pure methamphetamine. According to information disclosed during the court proceedings, the case began with in investigation by the Tri-City Metro Drug Task Force, which conducted a series of controlled purchases of methamphetamine from Ahumada. On May 14, 2013, Ahumada delivered 13.6 grams of pure methamphetamine. He delivered similar quantities of methamphetamine on three other occasions.
Michael C. Ormsby said, "This prosecution was made possible by the hard work of members of the Tri-City Metro Drug Task Force and the Drug Enforcement Administration. The citizens of the Tri-Cities are fortunate not only to have the support of their local law enforcement agencies for the continued operation of the Task Force, but also for those agencies' support of the cross-designation the Task Force detectives to work within the Drug Enforcement Administration. Having state officers that are also commissioned to enforce Federal narcotics laws enhances the prosecution of methamphetamine dealers. It makes the Tri-Cities a safer place."
Administration, and the prosecution was coordinated by Task Force Officer Kevin Barton and Special Agent Mark Minor of the Drug Enforcement Administration. This case was prosecuted by Alexander C. Ekstrom, an Assistant U.S. Attorney for the Eastern District of Washington.
CR-13-6057
KC Man Sentenced to 13 Years for Leading $100 Million Nationwide Tax Fraud ConspiracyRead the Press Release
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 leading a tax fraud conspiracy that attempted to receive nearly $100 million in fraudulent refunds from the IRS. Co-conspirators from eight states were involved in filing fraudulent tax returns in the largest federal false claims case that has ever been prosecuted in Missouri.
Gerald A. Poynter, also known as “Brother Jerry Love,” 48, of Kansas City, Mo., was sentenced by U.S. District Judge Brian C. Wimes to 13 years in federal prison without parole. The court also ordered Poynter to pay $951,930 in restitution to the government.
On Nov. 7, 2013, Poynter pleaded guilty to one count of conspiracy to defraud the United States by filing fraudulent tax returns and one count of filing a fraudulent tax return. Poynter admitted that conspirators prepared and filed 284 fraudulent tax returns from July 1, 2008, to Sept. 21, 2011. Each of the returns contained false claims that the taxpayer listed was due a refund due to over-withholding of taxes, based on fictitious forms 1099-OID. In actuality, Poynter’s clients had not received interest income from the banks and lenders listed on their Forms 1099, nor had any money been over-withheld. Conspirators claimed that a total of $96 million dollars in fraudulent tax refunds were due. The IRS mistakenly paid out $3.5 million on these fraudulent claims.
Some individuals received hundreds of thousands of dollars in refunds. For the returns that successfully were paid out, Poynter received a fee. In an attempt to mask his involvement, Poynter requested that conspirators refer to his fees as “love donations,” frequently directing them to write checks to “Jerry Love Ministries.” Poynter used computer software to file returns electronically from his karate studio in Blue Springs.
Poynter filed returns in his own name, and in the names of his family. Poynter received a refund of $196,348 as a result of filing a fraudulent claim in July 2008. Poynter personally was responsible for recruiting at least 44 filers to the scheme. Poynter submitted at least $25 million in fraudulent claims on 81 returns filed for his clients, which caused a tax loss to the United States of at least $951,930.
Poynter also recruited “branch managers” who in turn recruited additional filers to the scheme.
Poynter is among 11 defendants who have pleaded guilty, including Kristi Jones, 41, of Riverside, Mo.; Shirley Oyer, 72, of Overland Park, Kan.; Jennifer Wilson, 37, of Cumming, Ga.; Mark J. Murray, 52, of Newton, Ala.; John V. Perdido, 58, of Temecula, Calif.; Earl Lee Davis, 55, of Monroe, La.; Robert E. Morris, 68, of Rocklin, Calif.; and Karen A. Olson, 42, of Wood Dale, Ill. Marian Fine-Kennedy, 36, of Eugene, Ore., and Maria Haro Campos, 42, of Vista, Calif., have each pleaded guilty in separate but related cases.
Poynter conducted a training seminar in December 2008 at the Doubletree Hotel in Atlanta, Ga. At the seminar, Poynter gave a presentation outlining his “OID process,” during which he pointed out that the IRS would issue refunds even if the name listed on the OID form was “Spongebob Squarepants” or “Spiderman.” Poynter told attendees they would use a rented office rather than process the OID returns at home to avoid their homes being raided by the FBI. He talked about attracting attention from IRS criminal investigators, and he provided pointers on how to avoid that outcome. He also joked that his going to prison was a possibility.
In addition to this training session, Poynter conducted and participated in numerous other seminars and conference calls around the country to promote his OID process. Poynter also maintained a Web site called “luckytown” that was used to promote the scheme.
1099-OID Tax Fraud Scheme
Conspirators utilized 1099-Original Issue Discount forms as part of their scheme.
These forms are legitimately used by tax filers who must pay taxes on income they receive from the interest on their bond investments. Tax on certain bonds must be paid as income accrues. Bond holders receive annual forms, called 1099-Original Issue Discount (OID), from the debt issuers. Bond holders then file these OID forms with the IRS, along with their income tax forms.
However, the scheme described in the indictments utilized the 1099-OID forms in a nonsensical manner. Clients of the conspirators, working with their branch managers, assembled financial documents such as mortgage and loan statements, car payments, foreclosure records, bank statements, credit card statements, and other records of debt and spending. Poynter and his staff used this debt information – rather than any actual bond income – to prepare and/or finalize false tax returns and improperly calculated Forms 1099-OID.
These tax returns falsely claimed that the filers had received income from bond proceeds and that federal income tax had been withheld. The fraudulent returns claimed the government had over-withheld taxes from the clients’ OID bond income, making the clients appear entitled to more than $96 million in tax refunds.
In reality, Poynter’s clients had not earned – or paid tax on – any bond income. No bond payer had issued any 1099-OID forms. Instead, the bond income that was listed was calculated by what the indictment describes as an “arbitrary and capricious formula.” Conspirators simply added up the taxpayers’ debts and spending and listed those creditors as “payers” of bond interest.
OID Fraud Web Site
A Web site has been established to provide information about the status of this investigation. Updates about this investigation and related cases will be posted at www.justice.gov/usao/mow/divisions/OIDfraud.html
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation.Holland, Ohio, Man Indicted for $500,000 FraudRead the Press Release
A criminal indictment was returned this week charging Mark O. Wittenmyer, age 54, of Holland, Ohio, with one count of conspiracy to commit wire fraud, wire fraud, and five counts of money laundering, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Wittenmyer fraudulently obtained a $500,000 consultant’s fee by representing that he could deliver several interest-only government bonds to a group of investors.
Wittenmyer also falsely alleged that he could recruit institutional buyers for the bonds that would pay the group of investors a substantial premium at the conclusion of the transaction. The investor group was falsely advised by Wittenmyer that he had successfully delivered the bonds, and therefore Wittenmyer was entitled to a $1 million consultant’s fee, according to the indictment.
When a representative of the investor group learned that the bonds had not been delivered, Wittenmyer threatened to file a lien against the bonds to prevent their sale. The investor group then paid $500,000, in a wire transfer on November 8, 2013, to induce Wittenmyer not to file a lien. Wittenmyer directed the funds to an account at PNC Bank that was controlled by an associate, and from that account, Wittenmyer and his associate spent the funds, according to the indictmet.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys James V. Moroney and Gene Crawford.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Hinsdale Man Pleads Guilty to Child ExploitationRead the Press Release
CONCORD, NEW HAMPSHIRE: Benjamin Maes, 32, of Hinsdale, pled guilty in United States District Court for the District of New Hampshire to one count of sexual exploitation of children, announced United States Attorney John P. Kacavas.
The investigation began in November, 2012, when an FBI/Metropolitan D.C. Police Department task force received images of child pornography from an individual from Hinsdale, New Hampshire. Benjamin Maes had been communicating with an undercover agent on-line and had sent the agent sexually explicit images of children. He was arrested in December of 2012, pursuant to a federal arrest warrant issued in the District of Columbia.
Various electronic items belonging to Maes were seized pursuant to a search warrant and forensic examination of his cellular phones revealed numerous images of child pornography, including images of Maes engaged in sexually explicit conduct with a minor.
The defendant faces a minimum mandatory sentence of 15 years in prison when he is sentenced on June 27, 2014.
The charge was the result of an investigation by the Federal Bureau of Investigation, the Washington D.C., Metropolitan Police Department, the Hinsdale Police Department and the New Hampshire Internet Crimes Against Children Task Force is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. 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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.This case is being prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
Hawaii Man Pleads Guilty to Communicating Classified National Defense Information to an Unauthorized PersonRead the Press Release
HONOLULU – Benjamin Pierce Bishop, 60, a Honolulu, Hawaii defense contractor and former Lt. Colonel in the U.S. Army, pleaded guilty today in federal court to willfully communicating classified national defense information to a person not authorized to receive it and willfully retaining classified national defense information. The guilty plea was announced by Florence T. Nakakuni, U.S. Attorney for the District of Hawaii, and John P. Carlin, Acting Assistant Attorney General of the National Security Division of the Department of Justice.
Bishop was arrested on March 15, 2013 on charges that he communicated classified information to a person identified as a 27 year old Chinese woman with whom he had a romantic relationship during the year preceding the charges. According to the criminal complaint, during Bishop’s relationship with the woman, further identified as a graduate student in the United States on a J1 Visa, he communicated classified information concerning U.S. national defense systems and removed classified information from his work space at U.S. Pacific Command which he then kept at his Honolulu area residence. In his plea agreement filed with the Court, Bishop admitted that on or about May 12, 2012, he “willfully communicated, in an email attachment entitled “Comments on Extending Deterrence from the Triad”, to PERSON 1, classified U.S. national defense information related to joint training and planning sessions between the United States and the Republic of Korea, which information related to the national defense and was classified at the SECRET level.” Bishop also admitted to willfully retaining multiple classified documents at his residence related to U.S. national defense, including the U.S. Armed Forces Defense Planning Guide for years 2014-2018; a document entitled: Optimizing U.S. Force Posture in the Asia-Pacific; the U.S. Department of Defense China Strategy; and the 2010 Guidance for Employment of Force (GEF).
When sentenced on June 26, 2014 by United States District Judge Leslie E. Kobayashi, Bishop will face a maximum sentence of 10 years in prison, a fine of up to $250,000, and three years of supervised release for each of the two counts of conviction.
U.S. Attorney Florence T. Nakakuni stated: “This case once again demonstrates our commitment and unwavering resolve to pursue and prosecute individuals who violate their security oaths and endanger our national security by unlawfully communicating sensitive and damaging classified national defense information to persons who are not entitled to receive it.”
This case was investigated by the FBI and the Naval Criminal Investigative Service. This case was prosecuted by Assistant U.S. Attorney Ken Sorenson of the U.S. Attorney’s Office for the District of Hawaii and Senior Trial Attorney Robert E. Wallace Jr., of the Counterespionage Section of the Justice Department’s National Security Division.
Greenville Man Sentenced in Firearms CaseRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that MICHAEL WAYNE ROUSE, JR. 29, of Greenville was sentenced yesterday resulting from his earlier guilty plea to a firearm charge. In September, 2013, the defendant pled guilty to being a felon in possession of a firearm. In January, 2013, the defendant was found in possession of a shotgun that had been stolen from a Pitt County residence the previous day.
Senior U.S. District Judge James C. Fox sentenced ROUSE to 17 years and 8 months in prison. ROUSE will also be supervised for 5 years following release. ROUSE was sentenced under the Armed Career Criminal Act. That statute requires that a defendant convicted of being a felon in possession of a firearm be sentenced to at least 15 years in prison without parole if that defendant has at least three prior drug trafficking or violent felony convictions.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Pitt County Sheriff’s Office. Assistant United States Attorney John Bennett is prosecuting the case.
Garcia Duran, Former Rocky Boy Health Board Supply Technician, Sentenced for TheftRead the Press Release
The United States Attorney's Office announced that GARCIA DURAN, 35, of Box Elder, was sentenced to three years' probation and ordered to pay $7,674.43 in restitution to the Rocky Boy Health Board by U.S. District Judge Brian Morris during a federal court session in Great Falls on March 12, 2014.
In a Sentencing Memorandum filed by Assistant U.S. Attorney Chad C. Spraker, the government described Duran's conduct as the following:
From 1999 to January 2010, Duran was employed at the Rocky Boy Health Board as a supply technician, a job that required him to procure supplies for the clinic. From September 2009 to November 2009, Duran purchased a number of goods and services from Havre Tire Factory and Big R Stores. Before these purchases, Duran submitted requisition forms and purchase orders to the Rocky Boy Health Board. The vendors issued invoices indicating the vendee as Rocky Boy Health Center.
Duran submitted $7,674.43 in invoices to the Health Board under the pretense that the items were for legitimate clinic expenses when, in fact, the invoices were for Duran's personal expenses. As a result of Duran's fraud, the Rocky Boy Health Board paid the vendors for Duran's expenses. On March 5, 2013, Duran was interviewed by an FBI Special Agent at the Rocky Boy Police Department. In the interview, Duran admitted he purchased items for personal use and caused Health Board to pay for the items. Duran confessed that $7,674.43 in expenses from Havre Tire Factory and Big R Stores were in fact personal. Duran admitted he knew it was wrong to use Health Board funds to purchase personal items.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Duran will likely serve all of the time imposed by the court. In the federal system, Duran does have the opportunity to earn a sentence reduction for (good behavior.( However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigations.
Fresno County Men Indicted for Selling Methamphetamine and HeroinRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 13-count indictment today charging Facundo Lopez-Perez, aka Jose Huerta Maldonado, aka Israel Lopez Zasueta, 43, of Del Rey, and Jorge Perez Robles, aka James Gonzalo Jara, 41, of Fresno, with conspiring to distribute and possess with the intent to distribute methamphetamine and heroin, United States Attorney Benjamin B. Wagner announced.
The indictment alleges that between January 2013 and February 25, 2014, Lopez-Perez and Robles sold methamphetamine and heroin to an undercover officer on numerous occasions. Lopez-Perez possessed more than 18 pounds of methamphetamine and more than one kilogram of heroin.
This case is the product of an investigation by a Drug Enforcement Administration Task Force made up of members of Federal, state and local law enforcement agencies including the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Highway Patrol. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, the defendants face a statutory penalty of 10 years to life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Indicted for Federal Prescription Drug FraudRead the Press Release
U. S. Attorney Michael J. Moore announced today that Celeste Smith, aged 38, of Statham, Georgia, as well as Jessica Wise, aged 28, Antwan Byrd, aged 30, and Jerry Cooper, aged 64, of Athens, Georgia, were charged, on March 12, 2014, in United States District Court in Macon, in multiple-count indictments of illegally acquiring thousands of Schedule II, III, and IV, prescription pills, such as Oxycodone, Hydrocodone, and Alphrazolam (Xanax).
If convicted, Ms. Smith, Ms. Wise, Mr. Cooper and Mr. Byrd face a maximum penalty of four (4) years imprisonment and a fine of 250,000.The indictment is only an allegation and the accused are presumed innocent until and unless proven guilty.
These indictments were the result of a joint federal/local investigation involving the United States Drug Enforcement Administration, Department of Health and Human Services Office of Inspector General, Athens-Clarke County Police Department and Monroe Police Department. Assistant U. S. Attorney Danial E. Bennett is prosecuting the case for the government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Former Veterans Affairs PsychiatristSentenced for Medicare FraudRead the Press Release
A licensed psychiatrist formerly employed by the Department of Veterans Affairs (VA) was sentenced today to serve 18 months in prison for falsely claiming to provide at-home services to Medicare beneficiaries.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Dr. Mikhail L. Presman, 56, of Brooklyn, N.Y., was sentenced by Judge I. Leo Glasser in the Eastern District of New York. Presman was sentenced to serve three years of supervised release following his prison term and ordered to forfeit $1.2 million and pay restitution to Medicare.
According to court documents, from Jan. 1, 2006, through May 10, 2013, Presman submitted approximately $4 million in Medicare claims for home treatment of Medicare beneficiaries notwithstanding his full-time salaried position as a psychiatrist at the VA hospital in Brooklyn. Presman did not provide any treatment to a substantial number of the beneficiaries he claimed to have treated. For example, Presman submitted claims to Medicare for home medical visits at locations within New York City even though he was physically located in China at the time of these purported home visits. Presman also submitted claims to Medicare for 55 home medical visits to beneficiaries who were hospitalized on the date of the purported visits.
The case was investigated by the HHS-OIG, with assistance from the VA Office of Inspector General, and brought as part of the Medicare Fraud Strike Force, under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. The case was prosecuted by Trial Attorney Bryan D. Fields of the Fraud Section and Assistant United States Attorney Patricia E. Notopoulos of the Eastern District of New York.
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, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.Former Veterans Affairs Psychiatrist Sentenced to 18 Months’ Imprisonment for Medicare FraudRead the Press Release
BROOKLYN, NY – Dr. Mikhail L. Presman, a licensed psychiatrist employed by the Department of Veterans Affairs (VA), was sentenced today by Judge I. Leo Glasser in U.S. District Court in Brooklyn, New York, to 18 months’ imprisonment, to be followed by 3 years of supervised release for Medicare fraud. As part of the sentence, Judge Glasser ordered Presman to pay restitution to Medicare and forfeit $1.2 million.
The sentence was announced by U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Agent-in-Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG).
According to court documents, from January 1, 2006 through May 10, 2013, Dr. Presman submitted approximately $4 million in Medicare claims for home treatment of Medicare beneficiaries notwithstanding his full-time, salaried position as a psychiatrist at the VA hospital in Brooklyn. Contrary to his representations, Dr. Presman did not provide any treatment to a substantial number of the beneficiaries he claimed to have treated. For example, Dr. Presman submitted claims to Medicare for home medical visits at locations within New York City even though he was physically located in China at the time of these purported home visits. Additionally, Dr. Presman submitted claims to Medicare for 55 home medical visits to beneficiaries who were hospitalized on the date of the purported visits.
The case was investigated by the HHS-OIG, with assistance from the Department of Veterans Affairs Office of Inspector General, and brought as part of the Medicare Fraud Strike Force, under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. The case was prosecuted by Assistant United States Attorney Patricia E. Notopoulos and Department of Justice Trial Attorney Bryan D. Fields.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Former Seattle Investment Advisor Sentenced to 16 Years in Prison for Wire Fraud, Money Laundering and Investment Advisor FraudRead the Press Release
A long-time Seattle investment advisor was sentenced today in U.S. District Court in Seattle to 16 years in prison, three years of supervised release and $19.8 million dollars in restitution for 32 criminal counts including wire fraud, money laundering and investment advisor fraud, announced U.S. Attorney Jenny A. Durkan. MARK F. SPANGLER, 58, formerly of Seattle, promised his clients that he would protect their life’s savings by investing it in safe investments. Instead, SPANGLER diverted their money – without their knowledge or consent – to two risky start-up companies that he controlled and in which he had a significant financial stake. SPANGLER was convicted in November 2013 following a three week trial. U. S. District Judge Ricardo S. Martinez said at sentencing that SPANGLER “touted his ethical foundations . . . But used his clients’ trust against them. It was a complete betrayal in the worst possible way . . . He became someone willing to lie, cheat and swindle those same clients he described as friends and family.”
“Mark Spangler convinced his clients they were family and he would only do right by them. But his wealth was built on lies and by defrauding those who trusted him,” said U.S. Attorney Jenny A. Durkan. “He risked his clients’ retirement funds, money for their children’s education, for charitable giving and for their livelihood, on risky start-up ventures – the very investments they told him they wanted to avoid. He now has a long time to think about all the harm he has done.”
The evidence at trial demonstrated that SPANGLER repeatedly violated his fiduciary duty as an investment advisor by hiding where his clients’ money was invested, and by providing them with false account statements which, among other things, drastically inflated the value of their investments. SPANGLER told his clients that their assets were worth over $73 million. However, after SPANGLER ran out of money and put his business into receivership, only approximately $28 million was recovered for the victims, resulting in a loss of approximately $50 million.
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the shameful criminal behavior of those who prey on investors for their personal financial gain. IRS Criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”
“The fraud perpetrated by Mr. Spangler was egregious,” said Acting Special Agent in Charge W. Jay Abbott of the FBI’s Seattle field office. “As a family investment advisor, he was trusted to invest according to his client’s wishes. Instead of respecting their sacred trust, Mr. Spangler chose to place his own interests above those of his clients. Spangler’s deceit resulted in the diversion of tens of millions of his client’s hard-earned savings. The FBI is committed to holding people like Spangler accountable, and will continue to partner with the U.S. Attorney’s Office, IRS Criminal Investigations, and the Securities Exchange Commission to accomplish this mission.”
Many of the investors who testified in court described how they were told their funds were conservatively invested in publicly traded companies and in bonds. SPANGLER provided them false quarterly account statements fraudulently inflating the value of their accounts and how the money was invested. When some investors sought to liquidate their holdings SPANGLER ran a Ponzi scheme seeking new money from investors to pay out the other investors. Eventually, SPANGLER was unable to raise money to cover all the liquidation requests and was forced to place his investment business into receivership.
The Securities and Exchange Commission (SEC) has ongoing civil litigation underway against SPANGLER in federal court.
The case was investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorneys Mike Lang, and Francis Franze-Nakamura.
Former Puerto Rico Correctional Officer Sentenced for Scheme to Smuggle Heroin into State PrisonRead the Press Release
A former correctional officer in Puerto Rico was sentenced to serve 37 months in prison for attempting to smuggle heroin into state prison by delivering it to an inmate in the parking lot of the Medical Center in San Juan, Puerto Rico.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico made the announcement.
William Joel Medina, 32, of Quebradillas, Puerto Rico, pleaded guilty on Nov. 22, 2013, to conspiracy and attempt to distribute controlled substances. Medina was sentenced by U.S. District Judge Carmen C. Cerezo of the District of Puerto Rico.
From July through August 2009, Medina and a co-conspirator agreed to receive $2,500 to deliver heroin to an inmate at the Medical Center in San Juan. On Aug. 5, 2009, Medina and his co-conspirator met with an undercover agent, who they believed was a drug dealer, and were given what they believed to be a package of heroin. Medina delivered the purported heroin to an inmate in the parking lot of the Medical Center that same day.
In September 2009, Medina and a co-conspirator agreed to receive $4,000 to deliver another package of heroin to the same inmate at the Medical Center in San Juan. On Sept. 9, 2009, Medina and his co-conspirator met with an undercover agent, who they believed was a drug dealer, and were given what they believed to be a package of heroin. Medina’s co-conspirator delivered the purported heroin to the inmate that same day.
Medina also admitted in his plea agreement that he had engaged in a similar scheme on a third occasion.
The case was investigated by the FBI’s San Juan Division. The case was prosecuted by Trial Attorney Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Hector Ramirez-Carbó of the District of Puerto Rico.Former Federal Correctional Officer Indicted for Sexual Relations with InmateRead the Press Release
TALLAHASSEE, FLORIDA – Angel Santiago, 43, of Ambrose, Georgia, has been indicted for engaging in a sexual act with an inmate who was then under his custodial authority as a federal correctional officer. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida and Teresa M. Gulotta-Powers, Special Agent in Charge, United States Department of Justice Office of the Inspector General, Miami Field Office.
The indictment alleges that the offense took place between 2010 and 2012, at the Federal Correctional Institution in Tallahassee. Santiago was arraigned in federal court today and a trial date was scheduled for May 6, 2014.
If convicted, Santiago faces a maximum sentence of 15 years in federal prison.
The case was investigated by the United States Department of Justice Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorney Karen Rhew-Miller
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on March 12, 2014:
Andre Allen Forbes, 31, of South Bend, Indiana, was charged in a seven-count Indictment with one-count of distributing cocaine, four-counts of distributing crack cocaine, one-count of possessing a firearm in furtherance of a drug trafficking crime, and one-count of being a felon in possession of a firearm.Charges were filed as a result of an investigation by the South Bend Police Department – Metro Special Operations Section and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Brian M. Kandefer, 36, of San Diego, California, and K2 Capital Management Inc. located in LaJolla, California were both charged in a fifty-one-count Indictment.Kandefer was charged with twenty-counts of wire fraud, twenty-counts of mail fraud, one-count of conspiracy to commit fraud, and ten-counts of money laundering.K2 Capital Management Inc. was charged with twenty-counts of wire fraud, twenty-counts of mail fraud, and one-count of conspiracy to commit fraud.Charges were filed as a result of an investigation by the U.S. Department of Housing and Urban Development - Office of Inspector General and the Internal Revenue Service - Criminal Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Erskine A. Jones, 22, of South Bend, Indiana, was charged in a one-count Indictment with being a felon in possession of firearms and ammunition.Charges were filed as a result of an investigation by the South Bend Police Department, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Demarcus Moran, 23, of South Bend, Indiana, was charged in a one-count Indictment with being a felon in possession of firearms and ammunition.Charges were filed as a result of an investigation by the South Bend Police Department, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Wanda C. Shorter, 43, of Elkhart, Indiana and Empowerment Non-Emergency Medical Transportation, Inc. located in Elkhart, Indiana, were both charged in a four-count Indictment with one-count of healthcare fraud and three-counts of aggravated identity theft.Charges were filed as a result of an investigation by the Indiana Attorney General’s Medicaid Fraud Control Unit and the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Otis A. Tate, 25, of South Bend, Indiana, was charged in a two-count Indictment with one-count being a felon in possession of firearms and ammunition, and one-count possessing a stolen firearm.Charges were filed as a result of an investigation by the South Bend Police Department, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Aaron Mendoza, 34, of South Bend, Indiana, was charged in a one count Indictment with illegal alien in possession of a firearm.These charges were filed as the result of an investigation by the United States Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Federal Fugitive Killed During Encounter with PPB OfficerRead the Press Release
PORTLAND, Ore. - On March 12, 2014, federal fugitive Kelly Vern Mark Swoboda, 49, was killed during an encounter with a Portland Police Bureau Officer near Wilson High School. Swoboda was a wanted federal fugitive based on a supervised release violation issued in connection with his prior bank robbery conviction. He was convicted of the bank robbery in 2006 in Portland and received a sentence of 70 months in prison. His supervised release commenced last March and a supervised release violation warrant was issued in November of last year. The United States Marshal’s Service Fugitive Task Force had been actively trying to locate Swoboda since the warrant was filed.
Yesterday, a federal indictment was filed against Swoboda alleging that he committed three bank robberies: (1) November 22, 2013, NW Priority Federal Credit Union in Milwaukie, Oregon, (2) December 6, 2013, Cutting Edge Federal Credit Union in Milwaukie, Oregon and (3) December 21, 2013, Unitus Community Credit Union in Portland, Oregon.
Federal Charge Filed in Bank Robbery in Manhattan, Kan.Read the Press Release
TOPEKA, KAN. - Ronald David Brown, Jr., 39, who is in custody at CCA’s Leavenworth Detention Center, is charged with one count of bank robbery. The indictment alleges that on Nov. 27, 2013, he robbed the Kansas State Bank at 1101 Bluemont Avenue in Manhattan, Kan.
If convicted, he faces a maximum penalty 20 years in federal prison and a fine up to $250,000. The Lenexa Police Department, the Riley County Police Department and the Federal Bureau of Investigation investigated. Assistant U.S. Attorney Mike Warner is prosecuting.
OTHER INDICTMENTS
John Wesley Zollicoffer, 42, who is in custody in Shawnee County, is charged with one count of commercial robbery. The indictment alleges that on Jan. 29, 2014, he robbed the Kwik Shop at 1700 S.W. Boulevard in Topeka, Kan.
If convicted he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Juana Guerrero-Lopez, 55, Edwardsville, Kan., is charged with unlawfully re-entering the United States after being deported. She was found Feb. 6 in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
John M. Noel, 58, Wichita, Kan., is charged with two counts of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in March 2014 and November 2013 in Sedgwick County, Kan.If convicted, he faces a maximum penalty of 40 years in federal prison and a fine up to $2 million on each count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Luis Velasquez, 35, Compton, Calif., is charged with one count of possession with intent to distribute methamphetamine and one count of traveling from California to Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred March 10 in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the charge of possession with intent to distribute, and a maximum penalty of 5 years and a fine up to $250,000 on the other charge. The Wichita Police Department, the Sedgwick County Sheriff’s Office and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Farmington Woman Arraigned on Federal Wire Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE –Michelle Smith, 31, of Farmington, N.M., was arraigned this morning in federal court on an 18-count indictment charging her with wire fraud and aggravated identity theft charges. Smith entered a not guilty plea to the indictment and was released on her own recognizance pending trial, which has yet to be scheduled.
The indictment, which was filed on Feb. 26, 2014, includes 14 counts of wire fraud and four counts of aggravated identity theft arising from Smith’s alleged scheme to defraud Allstate Workplace Division and American Heritage Life Insurance (Allstate) of approximately $224,000 in advance commissions by submitting fraudulent policy enrollments. At the time of the offenses charged in the indictment, Smith was employed by Wells Insurance Agencies (Wells), exclusive brokers for Allstate with offices in Farmington, as an insurance agent to sell Allstate insurance policies.
According to the indictment, Allstate pays its brokers a commission for each Allstate insurance policy the broker sells. When Allstate receives a new policy enrollment, Allstate pays the broker an advance commission amounting to a percentage of six months’ work of premiums on the policy. If the enrollee cancels the policy or fails to pay premiums for six months, the broker is required to return the advance commission to Allstate. When Smith was employed by Wells, Wells paid Smith 70% of the advance commissions she allegedly generated by submitting Allstate insurance policy enrollments.
The indictment alleges that from Aug. 1, 2009 through May 3, 2010, Smith devised a scheme to defraud Allstate and Wells by submitting fraudulent policy enrollments and obtaining advance commissions to which she was not entitled. During this ten month period, Smith allegedly submitted enrollments in the names of approximately 150 different enrollees for a total of approximately 505 Allstate insurance policy enrollments. The enrollment forms allegedly transmitted electronically to Allstate by Smith were in the names of individuals who had not purchased insurance from Allstate and had forged signatures. According to the indictment, between Nov. 2009 and April 2010, Smith allegedly received approximately $224,000 in advance commissions based on the fraudulent enrollments she submitted to Allstate.
Smith also is charged with unlawfully using the identification of others, including their names, addresses, telephone numbers, Social Security numbers, dates of birth and driver’s license numbers, to facilitate four of the fraudulent enrollments. The indictment includes forfeiture allegations that seek forfeiture of assets constituting or derived from the proceeds of Smith’s alleged criminal activity.
If convicted, Smith faces a maximum penalty of 20 years in prison on each of the 14 wire fraud counts. Smith also faces a mandatory two year prison sentence on each of the four identity theft counts that must be served consecutive to any prison sentence imposed on the wire fraud charges.
The charges in the indictment are merely accusations, and Smith is presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Farmington office of the FBI and is being prosecuted by Assistant U.S. Attorney Jeremey Peña.- Smith Indictment
Eight New York Residents Charged with Using Stolen Social Security Numbers to File False Tax ReturnsRead the Press Release
Six indictments and a complaint were unsealed today in federal court in Central Islip, New York, charging eight individuals, Rosa Adames, Ramon DeLosAngeles, Robert Diaz, Reyssy Duran, also known as “Tuti,” Nelson Guzman, Alex Rodriguez, Jokasta Taveras and David Turcios, each arising out of schemes to defraud the United States by using stolen Social Security numbers to file false income tax returns seeking refunds.1 Taveras will be arraigned before United States District Judge Leonard D. Wexler; Adames, Diaz, Rodriguez and Turcios will be arraigned this afternoon before United States Magistrate Judge A. Kathleen Tomlinson; DeLosAngeles will be arraigned this afternoon before United States Magistrate Judge Arlene R. Lindsay. Duran and Guzman remain at large. All arraignments will be held at the U.S. Courthouse, 100 Federal Plaza, Central Islip. The cases have been assigned to United States District Judges Leonard D. Wexler, Arthur D. Spatt and Denis R. Hurley.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Shantelle P. Kitchen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS), Farrell Dolan, Resident Agent-in-Charge, United States Secret Service, Long Island Resident Office (USSS), Philip R. Bartlett, Inspector-in-Charge, New York Division, United States Postal Inspection Service (USPIS), Joseph A. D’Amico, Superintendent, New York State Police (NYSP) and Thomas Krumpter, Acting Police Commissioner, Nassau County Police Department (NCPD).
“As alleged, this collection of thieves victimized hundreds of unsuspecting Puerto Rican citizens, using their stolen identities to defraud the IRS and steal taxpayer dollars,” stated United States Attorney Lynch. “This scheme has metastasized throughout the country, which led to the formation of a special task force to combat such crimes. Since the formation of that task force, my Office has worked tirelessly to eradicate such crimes. Today’s arrests demonstrate my Office’s commitment to holding accountable those individuals who take advantage of the federal tax system for personal profit at the expense of the United States and honest taxpayers.”
IRS Acting Special Agent-in-Charge Kitchen stated, “The Internal Revenue Service takes identify theft very seriously. Vigorous criminal investigations and prosecutions are important components of the fight against stolen identity tax refund fraud. Although it has only been in existence for a short time, the “Identify Theft Task Force” has proven to be innovative and effective in these investigations. IRS-Criminal Investigation is proud of its leadership role on this task force and is most appreciative of the spirit of cooperation among its law enforcement partners.”
“Fraudulent schemes such as this have evolved significantly over the last several years,” said Farrell Dolan, Resident Agent-in-Charge of the U.S. Secret Service Long Island Resident Office. “Cooperation between law enforcement has allowed us to focus our resources and respond quickly to uncover criminal activity that exploits tax laws and financial institutions at the expense of US taxpayers.”
USPIS Inspector-in-Charge Bartlett stated, “The arrest of these individuals for participating in a scheme to defraud the IRS and victimize Puerto Rican residents, is an example of the commitment of Postal Inspectors and the law enforcement community to stamp out crime wherever it exists; keeping the mail safe and secure for the public.”
"Identity theft is a rapidly growing crime that causes its victims serious, far-reaching problems," State Police Superintendent Joseph A. D'Amico said. "As alleged, these eight people not only stole Social Security numbers from unsuspecting citizens, but used them to try to defraud the Federal Government. I am pleased that the New York State Police was once again able to partner with the United States Attorney's Office to help bring this important case to a successful conclusion."
According to the indictments, complaint and other court filings by the government, in each scheme, the defendants exploited tax laws that exempt Puerto Rican citizens from filing federal income tax returns, provided they derive their incomes solely from sources within Puerto Rico. The defendants, and coconspirators, illegally obtained identification information for Puerto Rican citizens, including names, dates of birth, and social security numbers, and used that information to file false returns claiming large refunds with the IRS. Once filed, the defendants, and their coconspirators, allegedly bribed Postal Service employees to intercept mailed tax refund checks, which the defendants then negotiated at check-cashing services and banks. The schemes were uncovered in part by a law enforcement officer working in an undercover capacity. If convicted, the defendants face a range of imprisonment between 10 and 35 years.
In mid-2012, the IRS created a task force called the Identity Theft Task Force (ITTF) to address the growing issue of identity theft in New York. The ITTF combines the resources of several agencies to investigate identity theft, including investigating the use of stolen identities to file fraudulent tax returns. The agencies currently participating in the ITTF include the IRS-Criminal Investigation; the Federal Bureau of Investigation; USSS; USPIS; New York City Police Department; Department of Social Security; Federal Deposit Insurance Corporation, Office of Inspector General; Federal Reserve Board, Office of Inspector General; USPIS, Office of Inspector General; Homeland Security Investigations, Immigration and Customs Enforcement; Social Security Administration, Office of Inspector General; Treasury Inspector General for Tax Administration, Department of Treasury, Office of Inspector General; and Department of Labor, Office of Inspector General. Since the creation of the ITTF, the United States Attorney’s Office for the Eastern District of New York has arrested 25 defendants, including today’s cases, which are summarized below, for their roles in such identity theft schemes.
United States v. Rosa Adames, 14-CR-135 (ADS)
Between April 2011 and October 2011, Adames and her coconspirators allegedly cashed more than 100 fraudulently obtained tax refund checks worth approximately $600,000. The checks were cashed at a bank in Amityville.
United States v. Ramon DeLosAngeles, 14-MJ-240
On October 4, 2011, DeLosAngeles was in possession of more than 100 fraudulently obtained tax refund checks worth approximately $900,000.
United States v. Robert Diaz and Alex Rodriguez, 14-CR-133 (ADS)
Between June 2012 and June 2013, Diaz, Rodriguez and their coconspirators allegedly cashed more than 30 fraudulently obtained tax refund checks worth approximately $200,000. The checks were cashed at banks in Elmont, Freeport and Hempstead. Rodriguez and Diaz allegedly bribed a bank teller to cash those checks.
United States v. Reyssy Duran, 14-CR-132 (ADS)
Between June 2012 and June 2013, Duran and his coconspirators allegedly cashed more than 30 fraudulently obtained tax refund checks worth approximately $200,000. The checks were cashed at banks in Elmont, Freeport and Hempstead. Duran allegedly bribed a bank teller to cash those checks.
United States v. Nelson Guzman, 14-CR-134 (JS)
Between August 2011 and November 2013, Guzman and his coconspirators allegedly cashed more than 65 fraudulently obtained tax refund checks worth approximately $430,000. The checks were cashed at a check cashing service in Lindenhurst and Roosevelt. Guzman and his coconspirators allegedly bribed an employee of a check cashing service to cash the refund checks.
United States v. Jokasta Taveras, 14-CR-136 (LDW)
Between December 2011 and March 2012, Taveras and her coconspirators allegedly cashed approximately 14 fraudulently obtained tax refund checks worth approximately $105,000. Taveras worked at a bank in Farmingdale, which is where she allegedly cashed the checks.
United States v. David Turcios, 14-CR-137 (ADS)
Between June 2012 and June 2013, Turcios and his coconspirators allegedly cashed more than 40 fraudulently obtained tax refund checks worth approximately $280,000. The checks were cashed at banks in Elmont, Freeport and Hempstead. Turcios allegedly bribed a bank teller to cash those checks.
The government’s cases are being prosecuted by Assistant United States Attorney Christopher Caffarone.
The Defendants:
ROSA ADAMES
Age: 42
Valley Stream, New York
RAMON DELOSANGELES
Age: 62
Cairo, New York
ROBERT DIAZ
Age: 29
Copiague, New York
REYSSY DURAN
Age: 30
Freeport, New York
NELSON GUZMAN
Age: 44
Copiague, New York
ALEX RODRIGUEZ
Age: 37
Freeport, New York
JOKASTA TAVERAS
Age: 28
Lindenhurst, New York
DAVID TURCIOS
Age: 32
Roosevelt, New York
____________________________________________________________
1 The charges contained in the indictments and complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Distribution of Fentanyl Leads to Lengthy Prison TermRead the Press Release
The United States Attorney's Office announced that DACOTA ROGERS, 21, of Butte, was sentenced on February 21, 2014, in the federal courtroom in Butte, by Senior U.S. District Judge Sam Haddon, to 224 months in prison followed by 3 years supervised release in connection with a guilty plea to Distribution of Fentanyl.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government advised the Court that on December 8, 2013, Butte-Silverbow law enforcement officers were called to 828 West Park Street in relation to a male who was not breathing and unresponsive. Upon arrival at the scene they found Kara Spaabeck attempting to do CPR on Mark Phillip Allen. Allen was then transported to St. James Hospital, but emergency personnel were unable to revive Allen. During the drive from Allen's house to the Hospital, Spaabeck stated that she believed that Allen had been smoking fentanyl. She said she had been told this by Miles Muretta who had been with Allen earlier in the night.
Spaabeck turned over a cellular telephone she stated belonged to Allen. Officers reviewed the phone to determine ownership and next of kin, etc., when they discovered text messages that appeared to be drug related. One of the texts was from Muretta who in his text stated that whatever Allen had taken had caused him to start to drool immediately.
A short while later, the phone given began to ring. The officers answered the phone and the caller identified himself as Muretta. During the conversation, Muretta stated that he had been at Allen's house at 0148 hours and had placed Allen's head on a pillow because he had been snoring.
Officers later searched Allen's house and found fentanyl patches and drug paraphernalia. Fentanyl is a potent, synthetic opioid analgesic with a rapid onset and short duration, creating an intense "high". It is a highly addictive drug considered 100 times more potent than morphine. Fentanyl skin patches are used to control moderate to severe chronic (around-the-clock, long-lasting) pain that cannot be controlled by the use of other pain medications in people who have become tolerant (used to the effects of the medication) to other narcotic pain medications.
Officers interviewed Muretta wherein he stated that he had been with Allen the night he died. He said that Allen had been attempting to buy drugs and was able to make contact with a dealer identified as Dacota Rogers. Rogers had come to Allen's house while Murretta was present and sold Allen a Fentanyl patch for $35.00. Allen paid Rogers $10.00 dollars in cash, and then gave Rogers his debit card to go to an ATM to withdraw the other $25.00 dollars he owed for the patch.
Following the interview, officers contacted Allen's father who gave them bank account information relating to Allen's bank account. With that information, officer's found an ATM video showing Rogers withdrawing money from Allen's account the night of his death.
Investigators then conducted an interview with Rogers. After being advised of his Miranda rights, Rogers told investigators that he had in fact sold Allen the Fentanyl patch and had shown him how to ingest it. Rogers further stated that he had received money from Allen for the patch and had used Allen's ATM card to get the money from Allen's account.
The government would introduce evidence and testimony that Fentanyl is Schedule II controlled substance.
Dr. Gary E. Dale, a State Medical Examiner, performed a postmortem examination of Allen. Dr. Dale's examination revealed that there were toxic levels of fentanyl in Allen's body at the time of death. Dr. Dale concluded that Allen died as a result of fentanyl toxicity.
The investigation was conducted by the Drug Enforcement Administration and Butte-Silver Bow Law Enforcement.
Defendant Sentenced to Prison for Drug ViolationsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 5, 2014, before U.S. District Judge Donald Molloy, MARCO ANTONIO MORALES-ROA, was sentenced to 78 months in prison followed by 4 years supervised release in connection with his December 2013 guilty plea.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the Government states that in August 2013, law enforcement interviewed a confidential informant ("CI #1") in which he/she stated that about in about March 2013 he/she called a source of supply (SS #1) asking for assistance in obtaining some methamphetamine. The source of supply provided CI #1 with a phone number and told him to contact a Hispanic male by the name of "Antonio" (later identified as the defendant). CI #1 contacted Morales and made arrangement to meet Morales at his residence in Fairview, Montana. The next day CI #1 drove to Fairview, met with Morales and received 7 grams of meth from Morales on a front. Three days later CI #1 met with Morales at his residence and provided him with $700.00 for the meth he had received.
Several days later CI #1 again met with Morales and received $6,000.00 from him which CI #1 took to Butte, Montana to meet with a second source of supply from Washington (SS #2). This individual provided CI #1 with 1/2 pound of methamphetamine in exchange for the $6,000.00. CI #1 drove back to Sidney, Montana and provided Morales with 1/4 pound of the meth and provided the rest to others and himself for distribution.
Several days later CI #1 again met with Morales and received $4,500.00 which CI #1 combined with $500.00 which he/she already had. CI #1 then drove to Butte to again meet with the source of supply from Washington (SS #2). SS #2 provided CI #1 with 1/2 pound of meth in exchange for the cash. CI #1 drove back to Sidney and provided Morales with 1/4 pound of the meth and provided 28 grams to two other individuals. CI #1 then kept the remaining amount of meth for him/herself.
Furthermore, near the end of August 2013, law enforcement also conducted an interview with CI #2. CI #2 was a good friend of Morales and said he introduced Morales to SS #1 for the purpose of obtaining meth. When SS #1 was arrested in March 2013, Morales became the main distributor for meth in the Sidney area as a replacement for SS #1. CI #2 further stated that Morales owed an approximately $10,000.00 drug debt. CI #2 stated that he/she had observed Morales with approximately 1 ounce of meth at a time.
On September 20, 2013, Morales was interviewed by law enforcement wherein he stated that he had possessed methamphetamine and had distributed it to others.
The total amount of methamphetamine possessed by Morales was approximately 233 grams.
Defendant Pleads Guilty to Federal Offense of Sex Trafficking of A ChildRead the Press Release
Defendant Faces Imprisonment term of 10 years to Life
BINGHAMTON, NEW YORK - United States Attorney Richard S. Hartunian announced that Alexandria Samson Davall, from Utica, New York, pleaded guilty today in federal court to an offense charging her with Sex Trafficking Of A Child.
In pleading guilty, Davall admitted that in and about February of 2012, in the Broome, Oneida, and Onondaga counties in the Northern District of New York and elsewhere, defendant Alexandria Samson Davall and others, aiding and abetting each other, while in and affecting interstate commerce, did knowingly recruit, entice, harbor, transport, provide, obtain, and maintain by any means a person with the initials M.L., who had not attained the age of 18 years, knowing, or in reckless disregard of the fact that M.L. would be caused to engage in one or more commercial sex acts, and did benefit, financially and by receiving things of value, from participation in the venture which has engaged in the act described above, in violation of Title 18, United States Code, §§ 1591(a) & (b) and 2.
Davall further admitted that she and others, while aiding and abetting each other, knowingly recruited, enticed, harbored, transported, provided, obtained, and maintained a minor with the initials M.L., who was 16 years of age at the time, in order to prostitute M.L. to adult men in exchange for money and controlled substances. Davall and the others photographed and caused M.L. to be photographed in sexually seductive poses wearing only lingerie and posted said photographs of M.L. on Backpage.com, an internet classified advertising website, offering M.L. for sex in exchange for money. Additionally, Davall and the others utilized cellular telephones to send mass cellular texts offering M.L. for sex to customers in exchange for money. Furthermore, Davall and the others transported and caused M.L. to be transported to various locations including hotels where M.L. was instructed and caused to engage in commercial sex acts, in that, M.L. engaged in sexual acts including intercourse and oral sex with customers in exchange for money and controlled substances. Davall and the others benefitted, both financially and by receiving things of value, by prostituting M.L. to customers, in that, Davall and the others shared the money and controlled substances acquired from customers with whom M.L. was caused to engage in sex acts.
The federal charge stems from an investigation conducted by the FBI-Albany Division, New York State Police, Oneida County District Attorney’s Office, Utica Police Department, and the Oneida County Child Advocacy Center. The investigation concerned a prostitution ring involved in selling a minor to engage in sexual conduct in exchange for money and drugs. The prostitution ring utilized the website Backpage.com to advertise the prostitution. The ring also utilized a texting network to advertise their prostitution business. The Oneida County District Attorney has charged several other defendants with state crimes in connection to this overall joint investigation. The investigation is continuing.
Davall continues to be held in the custody of the U.S. Marshal’s Service pending sentencing. Davall is scheduled to be sentenced on July 22, 2014. At sentencing, she faces a statutory mandatory minimum term of 10 years prison and a maximum of life. The maximum possible fine is $250,000.
Custom Furniture Builders Plead Guilty to Tax EvasionRead the Press Release
George Despotopoulos and Steve Tepelidis pleaded guilty to tax evasion today in the District Court for the Eastern District of New York, the Justice Department and the Internal Revenue Service (IRS) announced.
According to court documents, Despotopoulos and Tepelidis jointly owned and operated Furniture Design by Knossos, a custom furniture and cabinetry business. They caused business checks to be cashed and used some of the cash to supplement their reported income. The informations allege that Despotopolous and Tepelidis filed or caused to be filed false individual income tax returns for the 2007 tax year. Both Despotopoulos and Tepelidis have agreed to pay over $300,000 each in restitution.
Tax evasion carries a statutory maximum sentence of five years in prison, three years of supervised release, and a $250,000 fine.
This case was investigated by special agents of IRS-Criminal Investigation and prosecuted by Trial Attorney Jennifer Laraia of the Tax Division.