Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 27 January 2014
Non-Native Man from Albuquerque Sentenced to Prison for Assaulting a Tribal Officer on Taos PuebloRead the Press Release
ALBUQUERQUE – Dallas Chase Barth, 22, of Albuquerque, N.M., was sentenced this afternoon to 27 months in federal prison followed by two years of supervised release for assaulting an Indian with a dangerous weapon on Aug. 28, 2013, in Taos Pueblo.
Barth was arrested on Aug. 29, 2013, based on a criminal complaint charging him with assault with a dangerous weapon. According to court filings, on Aug. 28, 2013, Barth took a van belonging to a U.S. Postal Service contractor that contained U.S. mail from outside a convenience store in Espanola, N.M., and led officers from several law enforcement agencies on a high speed chase to Taos Pueblo. Barth continued speeding through Taos Pueblo lands pursued by two tribal police officers in marked police vehicles.
Barth’s escapade ended when he drove to a dead end, made a U-turn, and began driving at a high rate of speed towards the two tribal officers who were standing by their parked police vehicles. One of the tribal officers had to jump out of the way in order to avoid being hit by Barth’s van and the other tribal officer, a member of the Turtle Mountain Chippewa Tribe, narrowly escaped injury by moving towards the rear of his police vehicle. Shortly thereafter, Barth was arrested after crashing the van.
On Oct. 24, 2013, Barth pled guilty to an assault with a deadly weapon charge. In his plea agreement, Barth admitted leading a high speed chase that began in Espanola and ended in Taos Pueblo while driving recklessly and at high speeds as he attempted to flee from officers from several law enforcement agencies. Barth further admitted driving towards two tribal officers, including one who is a member of a federally recognized Indian tribe, at a high rate of speed with the intention of causing bodily harm to them without any justification or excuse.
This case was investigated by the Santa Fe office of the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services with assistance from the Taos Pueblo Department of Public Safety, the New Mexico State Police, Taos County Sheriff’s Office and Rio Arriba Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Morrisville Man Sentenced to Years for Receiving Child PornographyRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court Senior United States District Judge James C. Fox sentenced BRUCE WILLIAM NOTT , 58, to 180 months imprisonment, followed by a life-term of supervised release and he is required to register as a Sex Offender.
A Federal Grand Jury returned a Criminal Indictment on May 8, 2013. On October 1, 2013, NOTT pled guilty to one count of receiving child pornography.
According to the investigation, on October 7, 2010, an investigation was initiated by local law enforcement regarding the possible sexual assault of a four-year-old. A search warrant was obtained and executed at NOTT’s residence where several computers, thumb drives, cameras, and cell phone were seized. A forensic examination of the electronic equipment revealed 388 images of child pornography.
Investigation of this case was conducted by the Navassa Police Department, the Wilmington Police Department, the State Bureau of Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Morrison Man Sentenced to Federal Prison for Possession of Destructive DevicesRead the Press Release
DENVER – Richard Lawrence Sandberg, age 36, of Morrison, Colorado, was sentenced today by U.S. District Court Judge Philip A. Brimmer to serve 51 months in federal prison for two counts of possession of unregistered firearms, U.S. Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Luke Franey announced. Following his prison sentence, Judge Brimmer ordered Sandberg to serve 3 years on supervised release. The defendant appeared at the hearing in custody, and was remanded at the hearing’s conclusion.
Sandberg was first charged by Criminal Complaint on January 23, 2013. He was then indicted by a federal grand jury in Denver on January 28, 2013. The defendant pled guilty on June 27, 2013. He was sentenced today, January 27, 2014.
According to court documents, the investigation began when a Denver Police detective learned from a confidential informant that an individual possessed destructive devices. The detective contacted ATF regarding this information. ATF, working with the confidential informant, introduced an undercover agent to meet the subject. The subject turned out to be Richard Sandberg. After a number of phone conversations the undercover agent and the confidential informant went to Sandberg’s residence, where they were shown the destructive devices. Sandberg reportedly said he wanted to trade the devices for cocaine.
During the meeting, Sandberg made numerous threatening statements towards law enforcement and specifically the ATF. At the conclusion of the meeting, Sandberg gave the undercover agent three devices, which contained explosive powder, a fuse and shrapnel in the form of stainless steel ball bearings. ATF confirmed that Sandberg was not allowed to possess such devices. A subsequent search of Sandberg’s residence resulted in the seizure of 28 additional destructive devices, several hundred rounds of ammunition, a 5.56 caliber rifle and a 12 gauge shotgun. All of the seized items were found in the garage.
“Possession of unregistered destructive devices are dangerous not only to the person who possesses them, but also to others who live nearby,” said U.S. Attorney John Walsh. “Sandberg possessed these illegal unregistered devices in a residential neighborhood, putting many, including children, at risk. His prison sentence will ensure that neighborhood is a safer place.”
“We are extremely happy with the outcome of this investigation,” said Denver ATF Special Agent in Charge Luke Franey. “Our agents have dedicated their careers to protecting the public and preventing violent crime. This investigation is a great example of both.”
This case was investigated by ATF, the Denver Police Department and the Jefferson County Sheriff’s Office. The Denver Police Department Bomb Squad, the Jefferson County Sheriff Bomb Squad and the Colorado Springs Regional Explosives Unit provided assistance at Sandberg’s residence, where the destructive devices were found.
Sandberg was prosecuted by Assistant U.S. Attorney Jeremy Sibert with assistance from Assistant U.S. Attorney David Tonini.
Mobile County Man Sentenced to 30 Months for Possession of A Firearm with an Obliterated Serial NumberRead the Press Release
The United States Attorney Kenyen Brown announces that Vernon Collier, a 28 year old, Mobile, Alabama resident, was sentenced today to 30 months incarceration for possessing a firearm with an obliterated serial number in front of Judge Callie Granade. Collier was also sentenced to 3 years of supervised release and ordered to pay a special assessment fee of $100.
The Saraland Police Department investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mills County, Iowa, Man Sentenced on Firearm ChargeRead the Press Release
COUNCIL BLUFFS, IA - On January 24, 2014, Jason Shawn Allan, age 41, of Hastings, Iowa, was sentenced in United States District Court in Council Bluffs, Iowa, on a charge of felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Senior United States District Court Judge Robert W. Pratt sentenced Allan to 24 months imprisonment, to be followed by two years of supervised release. Allan was also ordered to forfeit the firearm he possessed, and to pay a $100.00 special assessment to the Crime Victim Fund. Allan remained in the custody of the United States Marshal pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence.
The charge arose from the response by Mills County Sheriff’s deputies to a call of a suspicious person on private property. Upon arrival, deputies found Allan with a disabled vehicle in a private driveway. Alan was observed to have bloodshot eyes, with an odor of marijuana emanating from his person. In the ensuing investigation, deputies found drug paraphernalia and an unloaded .22 caliber revolver in the vehicle, of which Allan was the operator and sole occupant. Along with other criminal history, Allan had previously been convicted of felony charges of theft, serious assault, forgery, and multiple charges of OWI 3rd.
The case was investigated by the Mills County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Michelle Rutledge Pleads Guilty to Two Central Vermont EmbezzlementsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Michelle Rutledge, 47, of Berlin, pleaded guilty today in United States District Court in Brattleboro to a charge of wire fraud. District Judge J. Garvan Murtha released Rutledge on conditions pending her sentencing, which has been set for May 15.
According to the information to which she pled guilty, for more than a dozen years Rutledge served as the office manager and bookkeeper for the Cold Hollow Cider Mill in Waterbury. For about two years, she also served as the treasurer for the Harwood Youth Hockey Association. Between June 2007 and June 2013, Rutledge embezzled substantial sums of money from the cider mill by using company credit cards without authorization and causing electronic transfers of cider mill funds to pay personal bills and expenses. She also stole substantial sums from the Harwood Hockey Association by using credit cards without authorization and by paying personal bills with checks drawn against the Hockey Association checking account.
As part of her plea agreement, Rutledge consented to the entry at sentencing of a forfeiture money judgment in an amount to be determined by the court.
Rutledge faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Vermont State Police and the Federal Bureau of Investigation.
Rutledge is represented by Brooks McArthur. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Mescalero Apache Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Snyder Geronimo III, 23, a member of the Mescalero Apache Nation, pleaded this afternoon to sexual abuse of a minor in federal court in Las Cruces, N.M. Geronimo entered his guilty plea without the benefit of a plea agreement.
Geronimo was arrested in early April 2013, based on a criminal complaint alleging that he knowingly engaged in a sexual act with a child between 12 and 16 years of age. Geronimo subsequently was indicted and charged with sexually abusing of a minor from July 2012 through Oct. 22, 2012, in locations within the Mescalero Apache Reservation.
According to court filings, the BIA’s Office of Justice Services initiated an investigation into Geronimo on Oct. 23, 2012, after a motorist reported seeing an intoxicated 13-year old female (victim) in the company of an adult man. During questioning by officers, the victim admitted having engaged in sexual activity with Geronimo on multiple occasions. On Jan. 30, 2012, Geronimo was arrested on tribal charges arising out of his relationship with the victim. During questioning, Geronimo acknowledged having had a sexual relationship with the victim since July 2012. Geronimo also stated that he had been told that the victim was 13 or 14 years old.
Today Geronimo pled guilty to the indictment and admitted that he knowingly engaged in sexual acts with the victim, who was 13 years of age, from July 2012 through Oct. 2012. Geronimo also admitted that his criminal conduct occurred on the Mescalero Apache Reservation.
Geronimo has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, he faces a maximum penalty of 15 years in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U .S. Attorney’s Las Cruces Branch Office.Medicare Fraud Strike Force Set Record Numbers <br /> for Health Care Fraud ProsecutionsRead the Press Release
The Justice Department’s Medicare Fraud Strike Force has set record numbers for health care prosecutions in Fiscal Year 2013, demonstrating the targeted and coordinated approach remains strong as the strike force enters its eighth year of fighting fraud against the government’s health care programs.
“These record results underscore our determination to hold accountable those who take advantage of vulnerable populations, commit fraud on federal health care programs, and place the safety of others at risk for illicit financial gain,” said Attorney General Eric Holder. “By targeting our enforcement efforts to ‘hot spots’ in nine cities, the Medicare Fraud Strike Force is allowing us to fight back more effectively than ever before.”
“The Medicare Fraud Strike Force is one of this country’s most productive investments,” said Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division. “We are not only putting hundreds of criminals who steal from Medicare in prison, but also stopping their theft in its tracks, recovering millions of dollars for taxpayers, and deterring potential criminals who ultimately decide the crime isn’t worth it.”
“Those perpetrating Medicare fraud cheat both taxpayers and vulnerable patients, and our Strike Forces are successfully fighting back – holding criminals accountable and recovering stolen dollars,” said Inspector General Daniel R. Levinson of the U.S. Department of Health and Human Services. “Our joint commitment to bring the fight against fraud to criminal hotspots around the country is steadfast.”
Under the supervision of the Criminal Division and U.S. Attorney’s Offices, the Medicare Fraud Strike Force is formed by coordinated teams of investigators and prosecutors – including personnel from the Justice Department, the U.S. Department of Health and Human Services and the FBI – who analyze Medicare claims data to target specific geographic areas showing unusually high levels of Medicare billing.
By focusing on the worst offenders engaged in current fraud schemes in the highest intensity regions, the strike force seeks to deter fraud in the target community and prevent it from spreading to other areas. The strike force is currently operating in nine cities: Baton Rouge, La.; Brooklyn, N.Y.; Chicago; Dallas; Detroit; Houston; Los Angeles; Miami and Tampa, Fla. S ince its inception in March 2007, strike force prosecutors have charged more than 1,700 defendants who have collectively billed the Medicare program more than $5.5 billion.
In Fiscal Year 2013, the strike force set records in the number of cases filed (137), individuals charged (345), guilty pleas secured (234) and jury trial convictions (46). In addition, the defendants who were charged and sentenced are facing significant time in prison – an average of 52 months in prison for those sentenced in FY 2013, and an average of 47 months in prison for those sentenced since 2007.
According to a recent report by the Inspector General for the U.S. Department of Health and Human Services, for every dollar the Departments of Justice and Health and Human Services have spent fighting health care fraud, they have returned an average of nearly eight dollars to the U.S. Treasury, the Medicare Trust Fund and others.
The Medicare Fraud Strike Force is part of an unprecedented partnership between the Departments of Justice and Health and Human Services called HEAT (Health care Enforcement and Prevention Action Team). Formed in May 2009, this partnership brings together high-level leaders from both departments to share information, spot trends, coordinate strategy and strengthen our fraud prevention efforts.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Media AdvisoryRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistPARSONS, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II, will hold a press conference along with other law enforcement leaders on Monday, January 27, 2014, at 1:30 P.M. in Parsons. Please contact Chris Zumpetta-Parr at 304-234-7725 with any questions.
WHO: William J. Ihlenfeld, II, United States Attorney
Albert J. Galietti, Supervisory Special Agent, DEA
Clyde Thompson, U.S. Forest Service
Captain Timothy Bledsoe, WVSP-BCI
Eugene Simmons, Pocahontas County Prosecuting Attorney
Ray LaMora, Tucker County Prosecuting Attorney
Brian Wilfong, Tucker County SheriffWHAT: Important announcement by local, state & federal agencies related to the enforcement of drug trafficking laws in the region
WHEN: Monday, January 27, 2014 at 1:30 P.M.
WHERE: Tucker County Courthouse
211 First Street, 4th Floor
Parsons, WV 26287Media AdvisoryRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II, will hold a press conference along with other law enforcement leaders on Monday, January 27, 2014, at 10:30 A.M. in Elkins. Please contact Chris Zumpetta-Parr at 304-234-7725 with any questions.
WHO: William J. Ihlenfeld, II, United States Attorney
Albert J. Galietti, Supervisory Special Agent, DEA
Clyde Thompson, U.S. Forest Service
Captain Timothy Bledsoe, WVSP-BCI
Michael Parker, Randolph County Prosecuting Attorney
Mark Brady, Randolph County SheriffWHAT: Important announcement by local, state & federal agencies related to the enforcement of drug trafficking laws in the region
WHEN: Monday, January 27, 2014 at 10:30 A.M.
WHERE: Jennings Randolph Federal Center
300 Third Street, 2nd Floor
Elkins, WV 26241Manhattan U.S. Attorney Announces Charges Against Bitcoin Exchangers, Including Ceo of Bitcoin Exchange Company, for Scheme to Sell and Launder over $1 Million in Bitcoins Related to Silk Road Drug TraffickingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, the Acting Special-Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the unsealing of criminal charges in Manhattan federal court against ROBERT M. FAIELLA, a/k/a “BTCKing,” an underground Bitcoin exchanger, and CHARLIE SHREM, the Chief Executive Officer and Compliance Officer of a Bitcoin exchange company, for engaging in a scheme to sell over $1 million in Bitcoins to users of “Silk Road,” the underground website that enabled its users to buy and sell illegal drugs anonymously and beyond the reach of law enforcement. Each defendant is charged with conspiring to commit money laundering, and operating an unlicensed money transmitting business. SHREM is also charged with willfully failing to file any suspicious activity report regarding FAIELLA’s illegal transactions through the Company, in violation of the Bank Secrecy Act. SHREM was arrested yesterday at John F. Kennedy International Airport in New York, and is expected to be presented in Manhattan federal court later today before U.S. Magistrate Judge Henry Pitman. FAIELLA was arrested today at his residence in Cape Coral, Florida, and is expected to be presented in federal court in the Middle District of Florida.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Robert Faiella and Charlie Shrem schemed to sell over $1 million in Bitcoins to criminals bent on trafficking narcotics on the dark web drug site, Silk Road. Truly innovative business models don’t need to resort to old-fashioned law-breaking, and when Bitcoins, like any traditional currency, are laundered and used to fuel criminal activity, law enforcement has no choice but to act. We will aggressively pursue those who would coopt new forms of currency for illicit purposes.”
DEA Acting Special-Agent-in-Charge James J. Hunt said: “The charges announced today depict law enforcement's commitment to identifying those who promote the sale of illegal drugs throughout the world. Hiding behind their computers, both defendants are charged with knowingly contributing to and facilitating anonymous drug sales, earning substantial profits along the way. Drug law enforcement’s job is to investigate and identify those who abet the illicit drug trade at all levels of production and distribution including those lining their own pockets by feigning ignorance of any wrong doing and turning a blind eye.”
IRS Special-Agent-in-Charge Toni Weirauch said: “The government has been successful in swiftly identifying those responsible for the design and operation of the ‘Silk Road’ website, as well as those who helped ‘Silk Road’ customers conduct their illegal transactions by facilitating the conversion of their dollars into Bitcoins. This is yet another example of the New York Organized Crime Drug Enforcement Strike Force’s proficiency in applying financial investigative resources to the fight against illegal drugs.”
According to the allegations contained in the Criminal Complaint unsealed today in Manhattan federal court:
From about December 2011 to October 2013, FAIELLA ran an underground Bitcoin exchange on the Silk Road website, a website that served as a sprawling and anonymous black market bazaar where illegal drugs of virtually every variety were bought and sold regularly by the site’s users. Operating under the username “BTCKing,” FAIELLA sold Bitcoins – the only form of payment accepted on Silk Road – to users seeking to buy illegal drugs on the site. Upon receiving orders for Bitcoins from Silk Road users, he filled the orders through a company based in New York, New York (the “Company”). The Company was designed to enable customers to exchange cash for Bitcoins anonymously, that is, without providing any personal identifying information, and it charged a fee for its service. FAIELLA obtained Bitcoins with the Company’s assistance, and then sold the Bitcoins to Silk Road users at a markup.
SHREM is the Chief Executive Officer of the Company, and from about August 2011 until about July 2013, when the Company ceased operating, he was also its Compliance Officer, in charge of ensuring the Company’s compliance with federal and other anti-money laundering (“AML”) laws. SHREM is also the Vice Chairman of a foundation dedicated to promoting the Bitcoin virtual currency system.
SHREM, who personally bought drugs on Silk Road, was fully aware that Silk Road was a drug-trafficking website, and through his communications with FAIELLA, SHREM also knew that FAIELLA was operating a Bitcoin exchange service for Silk Road users. Nevertheless, SHREM knowingly facilitated FAIELLA’s business with the Company in order to maintain FAIELLA’s business as a lucrative source of Company revenue. SHREM knowingly allowed FAIELLA to use the Company’s services to buy Bitcoins for his Silk Road customers; personally processed FAIELLA’s orders; gave FAIELLA discounts on his high-volume transactions; failed to file a single suspicious activity report with the United States Treasury Department about FAIELLA’s illicit activity, as he was otherwise required to do in his role as the Company’s Compliance Officer; and deliberately helped FAIELLA circumvent the Company’s AML restrictions, even though it was SHREM’s job to enforce them and even though the Company had registered with the Treasury Department as a money services business.
Working together, SHREM and FAIELLA exchanged over $1 million in cash for Bitcoins for the benefit of Silk Road users, so that the users could, in turn, make illegal purchases on Silk Road.
In late 2012, when the Company stopped accepting cash payments, FAIELLA ceased doing business with the Company and temporarily shut down his illegal Bitcoin exchange service on Silk Road. FAIELLA resumed operating on Silk Road in April 2013 without the Company’s assistance, and continued to exchange tens of thousands of dollars a week in Bitcoins until the Silk Road website was shut down by law enforcement in October 2013.
FAIELLA, 52, of Cape Coral, Florida, and SHREM, 24, of New York, New York, are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of operating an unlicensed money transmitting business, which carries a maximum sentence of five years in prison. SHREM is also charged with one count of willful failure to file a suspicious activity report, which carries a maximum sentence of five years in prison.
Mr. Bharara praised the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the U. S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement - Homeland Security Investigations, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, Office of Foreign Assets Control and the New York Department of Taxation and Finance. Mr. Bharara also thanked the FBI’s New York Field Office.
Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Serrin Turner is in charge of the prosecution, and Assistant United States Attorney Andrew Adams of the Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Robert M. Faiella & Charlie Shrem Complaint
Manhattan U.S. Attorney and FBI Announce Insider Trading Charges Against Former Financial Adviser and Director of Investment CompanyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal Complaint in Manhattan federal court charging WALDYR PRADO, a former financial adviser at a large U.S. brokerage firm, and IGOR CORNELSEN, a Director of a British Virgin Islands Investment Company that he owns and operates, with using inside information to trade on Burger King securities in advance of Burger King’s September 2010 acquisition by 3G Capital Partners (“3G”), a New York and Brazil based private equity firm. PRADO and CORNELSEN are nationals and residents of Brazil, and they have not yet been arrested on these charges.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, when Waldyr Prado and Igor Cornelsen traded around a ‘sandwich deal,’ the defendants knew they were committing insider trading. They were illegally profiting from material non-public information to which they were not entitled.”
Assistant Director-in-Charge George Venizelos said: “Assistant Director-in-Charge George Venizelos said: “Trading on inside information negatively impacts individual investors, puts companies at risk, and threatens the public's faith in our financial markets. As alleged, Mr. Prado and Mr. Cornelsen put their faith in a “sandwich deal” and bit off more than they could chew. The FBI will continue to investigate this type of illegal conduct and prosecute those who violate our laws.”
According to the Complaint unsealed today in Manhattan federal court:
In about February 2010, 3G initiated discussions with Burger King about a potential acquisition. As part of these discussions, Burger King and 3G executed a confidentiality agreement in April 2010, pursuant to which all aspects of their negotiations and due diligence were non-public.
In about early March 2010, a principal of 3G (“3G Principal-1”) contacted an investor of the firm (“Client-1”) and advised that 3G was in negotiations to acquire Burger King. Client-1, who was also a brokerage client of PRADO’s, signed a confidentiality agreement with 3G relating to the potential Burger King acquisition. This agreement permitted Client-1 to share information concerning the potential acquisition with Client-1’s financial adviser, i.e. PRADO, in order to facilitate Client-1’s decision to invest in the specific 3G fund that would acquire Burger King (the “3G Fund”).
From about March 2010 through the September 2, 2010 announcement that 3G would purchase Burger King for $4 billion in stock and the assumption of debt (the “September 2 Announcement”), Client-1 received periodic updates about the general progress of the deal from 3G’s principals. During this period, Client-1 evaluated whether to liquidate personal holdings for a $50 million commitment to the 3G Fund, or to obtain separate financing. Client-1 discussed this issue with PRADO, and in so doing, confided that the financing was for a commitment to a 3G fund seeking to acquire Burger King. Based on their professional relationship, Client-1 believed that PRADO would maintain the confidentiality of this information. Over the next several months, Client-1 and Client-1’s assistant spoke with PRADO about the progress of the Burger King transaction.
Notwithstanding the duties of trust and confidence owed to his brokerage firm employer and Client-1, PRADO misappropriated information learned from Client-1 for his own benefit and to purchase Burger King stock and options. For example, on May 17, 2010, after PRADO met with Client-1 in Brazil and learned of the potential 3G-Burger King acquisition, PRADO sent an e-mail to an acquaintance in the financial industry (“Witness-1”) stating that PRADO was “in Brazil with information that cannot be sent by email. You can’t miss it. . . .” After sending this e-mail, PRADO and Witness-1 spoke by telephone, and PRADO told Witness-1 that 3G was going to acquire Burger King. From May 17, 2010, through September 1, 2010, PRADO purchased Burger King stock and call options. On September 2, 2010, following the announcement of 3G’s acquisition, PRADO sold his Burger King holdings for a total profit of over approximately $175,000.
On May 17, 2010, and minutes after PRADO sent the e-mail to Witness-1 referenced above, PRADO sent a similar e-mail to CORNELSEN. The e-mail stated that PRADO had “some info that I cannot say over the phone . . .You have to hear this.” Within minutes, and after the market closed, CORNELSEN called PRADO. The next day, CORNELSEN began trading out-of-the-money Burger King call options. From May 18, 2010, through late August 2010, CORNELSEN purchased short-expiration call options and had frequent contact with PRADO. For example, on August 18, 2010, CORNELSEN sent PRADO an e-mail asking if “the sandwich deal going to happen,” to which PRADO replied, “it’s going to happen.” On the same day, CORNELSEN sent PRADO another e-mail asking again whether the “sandwich deal” was going to happen, and PRADO responded that it was a “sure thing.” After the September 2 Announcement, CORNELSEN sold his options for a total profit of approximately $1.68 million, and a net profit (including expired July 2010 options) of approximately $1.4 million.
In July 2012, in connection with an insider trading investigation, the Securities & Exchange Commission (“SEC”) deposed PRADO. In his deposition, PRADO denied any advance knowledge of the Burger King acquisition. Approximately one month after his deposition, PRADO fled to Brazil, from where he told his U.S.-based supervisor that he would not be returning to the United States because he believed that he was going to be charged with perjury and because Brazil did not have “an extradition policy.”
PRADO, 43, of Porto Seguro, Brazil, and CORNELSEN, 65, of São Paolo, Brazil, have been charged in the Complaint with conspiracy to commit securities fraud and fraud in connection with a tender offer (Count One), securities fraud (Count Two), and fraud in connection with a tender offer (Count Three). The securities fraud and fraud in connection with a tender offer charges each carry a maximum term of 20 years in prison, and the conspiracy charge carries a maximum term of five years in prison.
Mr. Bharara praised the investigative work of the FBI and also thanked the Securities and Exchange Commission, which has brought civil actions against the defendants.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys David I. Miller and Jason Cowley are in charge of the prosecution.
US v. Waldyr Prado & Igor Cornelsen Complaint
Man Sentenced for Scheme to Steal Fuel from National GuardRead the Press Release
Huntington, W.Va. - United States Attorney Booth Goodwin announced today’s sentencing of Charles Raymond Franklin, for his role in the theft of hundreds of gallons of diesel fuel from the National Guard’s Naval Special Warfare Ops Stock Program. The Naval Special Warfare Command (the Command) is a component of the United States Navy that commanded, trained, equipped and deployed squadrons to support naval operations around the world. The Command contracted with the West Virginia National Guard to store and maintain equipment, including diesel fuel, for naval use.
Franklin, 60, of Red House, West Virginia pleaded guilty in October of 2013 to receiving stolen government property. From May of 2012 until March of 2013, Franklin purchased hundreds of gallons of stolen diesel fuel, at a fraction of its market price, from Matthew Brock, a West Virginia National Guard contract employee. Franklin received over $14,000 worth of diesel fuel from Brock. Brock previously pleaded guilty and was sentenced to probation for four years for stealing the diesel fuel from his employer. Franklin received a sentence of 24 months of probation for purchasing the stolen fuel.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Blaire Malkin handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
Man Sentenced for Scheme to Steal Fuel from National GuardRead the Press Release
Huntington, W.Va. - United States Attorney Booth Goodwin announced today’s sentencing of Charles Raymond Franklin, for his role in the theft of hundreds of gallons of diesel fuel from the National Guard’s Naval Special Warfare Ops Stock Program. The Naval Special Warfare Command (the Command) is a component of the United States Navy that commanded, trained, equipped and deployed squadrons to support naval operations around the world. The Command contracted with the West Virginia National Guard to store and maintain equipment, including diesel fuel, for naval use.
Franklin, 60, of Red House, West Virginia pleaded guilty in October of 2013 to receiving stolen government property. From May of 2012 until March of 2013, Franklin purchased hundreds of gallons of stolen diesel fuel, at a fraction of its market price, from Matthew Brock, a West Virginia National Guard contract employee. Franklin received over $14,000 worth of diesel fuel from Brock. Brock previously pleaded guilty and was sentenced to probation for four years for stealing the diesel fuel from his employer. Franklin received a sentence of 24 months of probation for purchasing the stolen fuel.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Blaire Malkin handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
Louisiana Man Sentenced for Orange, Texas Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 50-year-old Cameron, LA, man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Allen Keith Miller pleaded guilty on Aug. 28, 2013 to bank robbery and was sentenced to 57 months in federal prison on Jan. 24, 2014 by U.S. District Judge Marcia Crone.According to information presented in court, on June 25, 2013, Miller entered the Capital One Bank branch office located on 16th Street in Orange, Texas, wearing a blonde wig, baseball cap, long-sleeve shirt, tan pants and a black knee brace. Miller approached a bank teller and presented a hand-written note advising that the bank was being robbed. Miller also advised that he was armed although a weapon was not displayed. Media outlets broadcast footage of the bank robbery and Miller was identified by citizens. Miller was stopped by law enforcement officers in Louisiana, at which time items from the robbery, including the wig, baseball cap, clothing, and knee brace, were located in Miller’s vehicle. Miller was indicted by a federal grand jury on July 11, 2013 and charged with bank robbery.
Miller has also been ordered to pay restitution in the amount of $963.
This case was investigated by the Federal Bureau of Investigation and the Orange Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Local Tax Preparer Indicted on Fraud ChargesRead the Press Release
St. Louis, MO - The owner and operator of Discount Tax Service was indicted for allegedly filing false tax returns. The indictment alleges that Christopher Mickles prepared over seven hundred and fifty federal income tax returns on behalf of his clients for tax years 2008 through 2011. Many of those returns contained falsely claimed fraudulent items and credits, such as household help income and earned income tax credits.
CHRISTOPHER MICKLES, St. Louis, MO, was charged with four felony counts of aiding and abetting in the preparation of false tax returns. He is expected to appear in federal court later today.
If convicted, each count carries a maximum penalty of three years in prison and/or fines up to $100,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Lewiston Man Sentenced to More Than 10 Years on Drug ChargesRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Jermaine Johnson, 40, of Lewiston, Maine, was sentenced on Thursday to 130 months in jail and
6 years of supervised release for possession with intent to distribute oxycodone. Johnson pled
guilty plea to the charges on September 25, 2013.According to Court records, Johnson was stopped by law enforcement agents in Sabattus,
Maine and found to be in possession of 121 oxycodone pills. Agents then seized over $16,000
from Johnson’s residence. Johnson was found responsible for distributing nearly 4,000
oxycodone pills in 2013. At sentencing, the Court determined that Johnson was a career
offender, which subjected him to enhanced penalties.This case was investigated by the Maine Drug Enforcement Agency, the Maine State
Police, and the Lewiston Police Department.Las Vegas Woman Sentenced to 57 Months in Prison for Unemployment, Housing and Social Security Fraud SchemesRead the Press Release
LAS VEGAS, Nev. – A woman who pleaded guilty to stealing over $400,000 from the unemployment system, public housing authority, and Social Security Administration, was sentenced today to 57 months in prison, three years of supervised release, and ordered to pay $477,466 in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Teresa Ann Towns, 50, who pleaded guilty in October 2013 to three counts of theft of government money, was sentenced by Senior U.S. District Judge Lloyd D. George. Towns was indicted and arrested in June 2013, and has been in custody since that time.
“Stealing from government benefits programs is a serious crime with serious consequences,” said U.S. Attorney Bogden. “Besides protecting our citizens from terrorist threats, white collar fraud is a top priority of the U.S. Department of Justice, and considerable resources are being utilized to investigate and prosecute this type of crime.”
Between 2005 and 2013, Towns, who also uses the aliases C. or T. Moorehead, C. or S. Grayson, and V. Johnson, established multiple business entities in Nevada and submitted false wage reports for fictitious employees to the Nevada Department of Employment, Training and Rehabilitation, which is the state agency responsible for distributing unemployment benefits that are partially funded by the federal government. Unemployment benefits were then disbursed on debit cards in the names of the fictitious employees and sent to addresses accessible to Towns. Towns used the debit cards to obtain cash from ATM machines and to convert the funds to her own use and the use of others. The loss to the federal and state unemployment system was approximately $322,682.In March 2001, Towns fraudulently obtained a public housing unit from the Southern Nevada Housing Authority using a false identity and other fraudulent information. The Housing Authority is funded through the U.S. Department of Housing and Urban Development. From 2005 to 2013, Towns failed to report her income on annual re-certifications which would have made her ineligible for the housing benefits. In May 2007, Towns also fraudulently obtained Section 8 Housing from the Southern Nevada Housing Authority using false income and household composition information. Towns failed to report in the original application and in annual re-certifications that she already had a public housing unit and was receiving unemployment income, and that she had an unauthorized adult and minor residing in the housing for several years. The loss to the Southern Nevada Housing Authority because of the fraud was approximately $114,000.
In October 2009, Towns applied for and fraudulently received child insurance benefits from the Social Security Administration. Towns falsely represented that the child lived with her in Las Vegas, and that she would use the benefits for the child or would place them into savings for the child. Between 2009 and 2012, Towns fraudulently obtained approximately $40,656 in child insurance benefits from the Social Security Administration.
In 1991, Towns was convicted in California of grand theft for using multiple aliases to obtain welfare benefits and was sentenced to two years in prison.
The case was investigated by the U.S. Department of Labor Office of Inspector General, U.S. Department of Housing and Urban Development Office of Inspector General, and the Social Security Administration Office of Inspector General, and prosecuted by Assistant U.S. Attorney J. Gregory Damm.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
King George Man Sentenced to 10 Years for Enticing Minors to Produce Child Pornography on CellphoneRead the Press Release
RICHMOND, Va. – Dane Scott Mihlon, Jr., 26, of King George, Virginia, was sentenced today to 10 years in prison, followed by 15 years of supervised release for using the internet on his cellphone to entice at least 8 minors to produce child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and FBI SAC Adam S. Lee, made the announcement after sentencing by U.S. District Judge John A. Gibney.
Mihlon pled guilty on October 2, 2014, to coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b). According to court documents, he admitted using a variety of applications on his cellphone to entice 8 juvenile females, ranging from 12 to 16 years old, located across the country to produce sexually explicit pictures via the internet. On one occasion, Mihlon enticed a 15 year old juvenile victim living in Oregon to produce at least five images of her naked, with one image depicting her engaged in a sex act.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14cr98-JAG.Tweet
King George Man Sentenced to 10 Years for Enticing Minors to Produce Child Pornography on CellphoneRead the Press Release
RICHMOND, Va. – Dane Scott Mihlon, Jr., 26, of King George, Virginia, was sentenced today to 10 years in prison, followed by 15 years of supervised release for using the internet on his cellphone to entice at least 8 minors to produce child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and FBI SAC Adam S. Lee, made the announcement after sentencing by U.S. District Judge John A. Gibney.
Mihlon pled guilty on October 2, 2014, to coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b). According to court documents, he admitted using a variety of applications on his cellphone to entice 8 juvenile females, ranging from 12 to 16 years old, located across the country to produce sexually explicit pictures via the internet. On one occasion, Mihlon enticed a 15 year old juvenile victim living in Oregon to produce at least five images of her naked, with one image depicting her engaged in a sex act.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14cr98-JAG.Tweet
Jury Renders Guilty Verdicts in Township 37 Marijuana Grow CaseRead the Press Release
Contact: Joel Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Malcolm
French, 52, of Enfield; Rodney Russell, 50, of South Thomaston; Kendall Chase, 57, of
Bradford; and Haynes Timberland, Inc., a Maine corporation, were found guilty on Friday
evening by a federal jury sitting in Bangor of federal offenses arising out of the September 22,
2009 seizure of 2,943 marijuana plants in Township 37, Washington County. French, Russell
and Chase were found guilty of conspiracy to manufacture over 1000 marijuana plants. French
and Russell were found guilty of manufacturing over 1,000 marijuana plants. French, Russell and
Haynes Timberland, Inc. were found guilty of managing and controlling property used to
manufacture marijuana. French and Russell were found guilty of harboring illegal aliens. The
jury also determined that French’s interest in Haynes Timberland, Inc., Township 37, a
warehouse compound in Township 31, and a hunting camp in LaGrange facilitated the drug
offenses.French and Russell face from 10 years to life in prison and a $10,000,000 fine on the
conspiracy and manufacturing charges; Chase faces up to life in prison and a $10,000,000 fine
on the conspiracy charge; French and Russell face up to 20 years in prison and a $500,000 fine
for managing and controlling property used to manufacture marijuana; and French and Russell
face up to 5 years in prison and a $250,000 fine for harboring illegal aliens. French and Haynes
Timberland, Inc. also face the forfeiture of their property that facilitated the crimes. The
defendants will be sentenced after completion of a pre-sentence investigation report by the U.S.
Probation Office.The case was investigated by the Maine Drug Enforcement Agency, the Internal Revenue
Service-Criminal Investigation and the U.S. Department of Homeland Security, Office of
Homeland Security Investigations, with assistance from the U.S. Drug Enforcement
Administration.Joint Statement by Attorney General Eric Holder and Director of National Intelligence James Clapper on New Reporting Methods for National Security OrdersRead the Press Release
Attorney General Eric Holder and Director of National Intelligence James Clapper released the following joint statement Monday:
“As indicated in the Justice Department’s filing with the Foreign Intelligence Surveillance Court, the administration is acting to allow more detailed disclosures about the number of national security orders and requests issued to communications providers, and the number of customer accounts targeted under those orders and requests including the underlying legal authorities. Through these new reporting methods, communications providers will be permitted to disclose more information than ever before to their customers.
“This action was directed by the President earlier this month in his speech on intelligence reforms. While this aggregate data was properly classified until today, the office of the Director of National Intelligence, in consultation with other departments and agencies, has determined that the public interest in disclosing this information now outweighs the national security concerns that required its classification.
“Permitting disclosure of this aggregate data resolves an important area of concern to communications providers and the public. In the weeks ahead, additional steps must be taken in order to fully implement the reforms directed by the President.
“The declassification reflects the Executive Branch’s continuing commitment to making information about the Government’s intelligence activities publicly available where appropriate and is consistent with ensuring the protection of the national security of the United States.”Related Materials:
DAG Letter
Stipulation of Voluntary Dismissal
Notice of DeclassificationJamestown Nurse Pleads Guilty to Conspiring to Distribute OxycodoneRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Samilyn Olson, 47, of Jamestown, N.Y., pleaded guilty to conspiracy to distribute oxycodone before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that Olson is a former nurse at the Veterans Affairs Community Based Outpatient Clinic, in Jamestown. The clinic provides medical services to VA patients in the area. On eight occasions between May and September 2010, the defendant stole prescription forms from a nurse practitioner at the clinic, forged the nurse practitioner=s name and wrote prescriptions for oxycodone. The prescriptions were then filled by Olson or others at a local pharmacy in Jamestown, New York and then distributed.
The plea is the result of an investigation on the part of the Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey G. Hughes, Northeast Field Office, the Veterans Affairs Police Department, under the direction of Chief Michael Messina, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing is scheduled for May 2, 2014 at 12:30 p.m. before Judge Arcara.Illinois Hospice Executive Charged with Federal Health Care Fraud for Allegedly Falsely Elevating Level of Patients’ CareRead the Press Release
CHICAGO — An owner of an Illinois hospice company was charged with federal health care fraud for allegedly engaging in an extensive scheme to obtain higher Medicare and Medicaid payments by fraudulently elevating the level of hospice care for patients, many of whom resided at nursing homes he also controlled across the state. In many instances, the level of hospice care allegedly exceeded what was medically necessary or actually provided, including for some patients who did not have terminal illnesses or who were enrolled far longer ― sometimes for several years ― than the required life expectancy of six months or less.
The defendant, SETH GILLMAN, 46, of Lincolnwood, was charged with one count each of health care fraud and obstructing a federal audit in a criminal complaint that was filed late Friday in U.S. District Court. He is scheduled to appear at 3 p.m. today before Magistrate Judge Geraldine Soat Brown in Federal Court.
Gillman, an attorney, is the corporate agent, administrator, and one-fourth owner of Passages Hospice, LLC, based in west suburban Lisle, and is also the agent and secretary of Asta Healthcare Company, Inc., which operates Asta Care Center nursing homes in Bloomington, Colfax, Elgin, Ford County, Pontiac, Rockford, and Toluca, in Illinois. Passages did not have its own inpatient facility, but instead deployed nurses to visit hospice patients in nursing homes and private residences. As Passages grew, it divided its operations into geographic regions covering Chicago and the western suburbs, Rockford, Bloomington, and Belleville, with different nurses, nursing directors and medical directors for each region.
The charges allege that between August 2008 and January 2012, Gillman trained and caused to be trained Passages nurses to look for signs that allegedly would qualify a hospice patient for general inpatient care (GIP), resulting in higher payments per day, compared to routine care. Gillman allegedly knew that many of Passages’ patients were improperly being placed on GIP, in part as a result of a 2009 review of patient files, a 2009 report by an outside consultant, and a 2010 internal audit. Gillman also knew that some patients were placed on GIP without a medical director’s approval.
In fiscal year 2012, Medicare’s daily reimbursement for GIP was $671.84, while the daily payment for routine care was $151.23. According to claims data, from January 2006 to late 2011, Passages submitted claims for approximately 4,769 patients to Medicare and/or Medicaid and was paid approximately $95 million from Medicare and approximately $30 million from Medicaid. Between July 2008 and late 2011, Passages was paid approximately $23 million by Medicare for claimed GIP services, in addition to Medicaid payments for claimed GIP services submitted on behalf of more than 200 patients.
According to a 69-page affidavit in support of the charges, federal agents have interviewed patients, family members, and more than 30 former and current employees of Passages, including several who reported allegedly fraudulent billing and marketing practices to Medicare and/or law enforcement before they were contacted by agents. Investigators have also reviewed emails, documents, and patient files that were obtained in response to a 2011 civil investigative demand, a January 2012 search warrant, and subpoenas issued in 2013, as well as claims data from Medicare and Medicaid.
Medicare claims data revealed that approximately 22 percent of Passages’ patients between 2006 and late 2011 had more than six months of hospice care, with 28 patients receiving more than 1,000 days of hospice care in that period. By contrast, according to the National Hospice and Palliative Care Organization, only 11.8 percent of all hospice patients in 2009 were on hospice care for longer than six months.
For example, the complaint affidavit cites Patient JW, who was admitted to an Asta nursing home in 2003 following a major stroke, and Passages billed for more than 2,000 days of hospice services. In another example, Passages submitted bills for 1,443 days of hospice care for Patient LJ, who was admitted to an Asta nursing home in 2001. Patient LJ’s son told investigators that his mother appeared in no danger of dying until the last month of her life.
The charges also cite Medicare claims data showing that Passages’ billing for GIP services grew significantly. In 2010, Passages billed approximately 1,161 GIP patient days to Medicare monthly, and the figure rose to 1,430 GIP patient days a month through the first nine months of 2011. The average GIP payments that Passages received per month was $4,437 in the period from mid-2006 to mid-2008, and the monthly payments increased to $946,743 in 2011.
A hospice physician retained by the government reviewed files for 13 Passages patients, 10 of whose admissions exceed six months and extended to as many as 1,598 days over two admission periods. The government’s expert found that nine of the 13 patients were not eligible for Medicare hospice benefits for part or all of their admission and that all of the 503 days of GIP submitted for those patients were improper and excessive.
A woman, identified as Individual E in the affidavit, who helped Gillman and his father start Passages and served as its clinical director for several years until she was fired, told agents that Gillman said if a patient was under Passages’ care, they were sick enough to warrant GIP care. When Individual E confronted Gillman over the GIP eligibility of Patient DB, Gillman allegedly told her to mind her own business because he needed the money, the affidavit states.
The charges further allege that in the fall of 2008 Gillman began paying bonuses, sometimes well in excess of their salary, to Passages’ directors overseeing nurses and certified nursing assistants based on the amount of GIP under their supervision. Gillman also authorized large bonuses to himself and a co-administrator, Individual A, based on the number of patients per day at certain nursing homes in the Belleville region, including $833,375 to himself between March 2009 and April 2011. The bonuses increased as the number of patients on GIP increased and as the number of facilities counted for the bonuses increased, according to the affidavit.
Passages also allegedly had arrangements with approximately eight nursing homes in 2010 in which it paid the nursing homes $250 for every patient who was on GIP per day.
The obstructing a federal audit count alleges that in August and September 2009, Gillman, Individual A, and others oversaw and conducted an effort to alter patient files that had been requested by TrustSolutions, which contracted with the Centers for Medicare and Medicaid Services to audit providers for fraud and abuse. Several former Passages employees have admitted to agents their involvement in the altering of patient files in the summer of 2009 as well as in another session in 2010, the affidavit states.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois Attorney General’s Office is also participating in the investigation.
The government is being represented by Assistant U.S. Attorney Stephen C. Lee.
Health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, and obstructing a federal audit carries a maximum of five years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The Medicare Fraud Strike Force began operating in Chicago in February 2011, and consists of agents from the FBI and HHS-OIG, working together with prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Scores of defendants have been charged locally in health care fraud cases since the strike force began operating in Chicago.
To report health care fraud to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Complaint
Huntington Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. - U.S. Attorney Booth Goodwin announced today that Alanna Lynn Mattison, 31, from Huntington, West Virginia, pleaded guilty to a federal drug charge for allowing her apartment to be used for storing and selling heroin and oxycodone.
Between February of 2013 and August of 2013, Mattison rented an apartment at 522 14th Street West in Huntington. She allowed Bobby Nelson Gulley to use this apartment to traffic illegal drugs from Detroit, Michigan to Huntington.
In August of 2013, agents searched multiple locations associated with this drug conspiracy and recovered more than 140 grams of heroin, 974 oxycodone pills and $12,000 in cash.
As part of her plea agreement, Mattison admitted her role in the drug conspiracy with Gulley and Helen Louise Adkins, and also admitted that she sold heroin for Gulley. Gulley pleaded guilty on January 21, 2013, for his involvement in the drug conspiracy.
Mattison faces up to 20 years in federal prison, and is scheduled to be sentenced on April 28, 2014.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.Huntington Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. - U.S. Attorney Booth Goodwin announced today that Alanna Lynn Mattison, 31, from Huntington, West Virginia, pleaded guilty to a federal drug charge for allowing her apartment to be used for storing and selling heroin and oxycodone.
Between February of 2013 and August of 2013, Mattison rented an apartment at 522 14th Street West in Huntington. She allowed Bobby Nelson Gulley to use this apartment to traffic illegal drugs from Detroit, Michigan to Huntington.
In August of 2013, agents searched multiple locations associated with this drug conspiracy and recovered more than 140 grams of heroin, 974 oxycodone pills and $12,000 in cash.
As part of her plea agreement, Mattison admitted her role in the drug conspiracy with Gulley and Helen Louise Adkins, and also admitted that she sold heroin for Gulley. Gulley pleaded guilty on January 21, 2013, for his involvement in the drug conspiracy.
Mattison faces up to 20 years in federal prison, and is scheduled to be sentenced on April 28, 2014.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Huntington Heroin Dealer Pleads Guilty in Federal CourtRead the Press Release
HUNTINGTON, W.Va. - U.S. Attorney Booth Goodwin announced today that James Anthony Jones pleaded guilty in federal court in Huntington, West Virginia to possession with the intent to deliver 100 grams or more of heroin.
In November of 2012, Jones and his girlfriend took a Greyhound bus from Detroit, Michigan to Huntington to deliver heroin given to them by Zachary Merritt. Merritt has pleaded guilty to his role in the drug conspiracy and is awaiting sentencing.
Upon arrival in Huntington, Jones gave the heroin to his girlfriend. Before getting into a taxi at the bus station, Jones directed her to hide the heroin inside her body. Instead of following his direction, Jones’ girlfriend placed the heroin under the seat of the taxi. Shortly after leaving the bus station, members of the Huntington Police Department stopped the taxi and seized the heroin.
As part of his plea agreement, Jones admitted that he participated in trafficking 528 grams of heroin to Huntington for resale. Jones, who is scheduled to be sentenced on April 28, 2014, faces up to 40 years imprisonment and a $1 million to $5 million fine.
Assistant United States Attorney Greg McVey handled the prosecution. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state, and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Huntington Heroin Dealer Pleads Guilty in Federal CourtRead the Press Release
HUNTINGTON, W.Va. - U.S. Attorney Booth Goodwin announced today that James Anthony Jones pleaded guilty in federal court in Huntington, West Virginia to possession with the intent to deliver 100 grams or more of heroin.
In November of 2012, Jones and his girlfriend took a Greyhound bus from Detroit, Michigan to Huntington to deliver heroin given to them by Zachary Merritt. Merritt has pleaded guilty to his role in the drug conspiracy and is awaiting sentencing.
Upon arrival in Huntington, Jones gave the heroin to his girlfriend. Before getting into a taxi at the bus station, Jones directed her to hide the heroin inside her body. Instead of following his direction, Jones’ girlfriend placed the heroin under the seat of the taxi. Shortly after leaving the bus station, members of the Huntington Police Department stopped the taxi and seized the heroin.
As part of his plea agreement, Jones admitted that he participated in trafficking 528 grams of heroin to Huntington for resale. Jones, who is scheduled to be sentenced on April 28, 2014, faces up to 40 years imprisonment and a $1 million to $5 million fine.
Assistant United States Attorney Greg McVey handled the prosecution. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state, and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Huntington Bank Robber Sentenced to Nearly Six Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. - William Spencer Farley, who robbed the City National Bank on Route 60 in Huntington in July of 2013, was sentenced today to five years and ten months in federal prison, announced U.S. Attorney Booth Goodwin. On July 26, 2013, Farley pointed a pistol at a bank teller and demanded cash. Farley fled the bank with $3,007. Farley, who was captured on camera at the bank, was arrested shortly thereafter, and confessed to robbing the bank in a statement to law enforcement. Farley pleaded guilty to the bank robbery on October 7, 2013.
The Federal Bureau of Investigation and Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.Huntington Bank Robber Sentenced to Nearly Six Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. - William Spencer Farley, who robbed the City National Bank on Route 60 in Huntington in July of 2013, was sentenced today to five years and ten months in federal prison, announced U.S. Attorney Booth Goodwin. On July 26, 2013, Farley pointed a pistol at a bank teller and demanded cash. Farley fled the bank with $3,007. Farley, who was captured on camera at the bank, was arrested shortly thereafter, and confessed to robbing the bank in a statement to law enforcement. Farley pleaded guilty to the bank robbery on October 7, 2013.
The Federal Bureau of Investigation and Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
Heroin and Pill Dealer Sentenced in Huntington Federal CourtRead the Press Release
Huntington, W.Va. - United States Attorney Booth Goodwin announced today’s sentencing of Brandon Golson for possession with intent to deliver heroin. Chief Judge Robert C. Chambers imposed a sentence of 87 months for Golson’s role in a drug conspiracy that included transporting heroin and oxycodone from Detroit, Michigan for sale in Huntington. Golson pleaded guilty on October 7, 2013 to possession with intent to deliver heroin.
In April of 2013, members of the Huntington Violent Crime and Drug Task Force executed a search warrant at 416 30th Street in Huntington, a place Golson shared with Cory Lynn McCourt. During the search, agents found 10.9 grams of heroin. Golson admitted that the heroin belonged to him and he planned to sell it. Golson told agents that from January of 2010, to April of 2013, he received regular deliveries of heroin and oxycodone pills from Detroit that he sold in Huntington. Golson also reported that he sold crack cocaine during this same period.
Agents also found and seized multiple handguns and rounds of ammunition during the April search. Golson admitted that he used the weapons for his protection during drug deals.
Assistant Greg McVey handled the prosecution. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state, and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.Heroin and Pill Dealer Sentenced in Huntington Federal CourtRead the Press Release
Huntington, W.Va. - United States Attorney Booth Goodwin announced today’s sentencing of Brandon Golson for possession with intent to deliver heroin. Chief Judge Robert C. Chambers imposed a sentence of 87 months for Golson’s role in a drug conspiracy that included transporting heroin and oxycodone from Detroit, Michigan for sale in Huntington. Golson pleaded guilty on October 7, 2013 to possession with intent to deliver heroin.
In April of 2013, members of the Huntington Violent Crime and Drug Task Force executed a search warrant at 416 30th Street in Huntington, a place Golson shared with Cory Lynn McCourt. During the search, agents found 10.9 grams of heroin. Golson admitted that the heroin belonged to him and he planned to sell it. Golson told agents that from January of 2010, to April of 2013, he received regular deliveries of heroin and oxycodone pills from Detroit that he sold in Huntington. Golson also reported that he sold crack cocaine during this same period.
Agents also found and seized multiple handguns and rounds of ammunition during the April search. Golson admitted that he used the weapons for his protection during drug deals.
Assistant Greg McVey handled the prosecution. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state, and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.Gang Member Sentenced to 10 Years in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. - A member of a Dodge City street gang was sentenced Monday to 10 years in federal prison, U.S. Attorney Barry Grissom said.
Russell Worthey, 25, Dodge City, Kan., pleaded guilty to one count of conspiracy to commit racketeering and one count of possessing and discharging a firearm in a crime of violence. In his plea, Worthey admitted he was a member of the Norteno street gang when he was involved in the murder of Israel Peralta on June 8, 2009, in Dodge City. Worthey aided and abetted in the murder as well as an assault with deadly weapons upon the victims.
On the day of the murder, Worthey and co-defendant Anthony Wright were driving around Dodge City in Wright’s car. In a trailer park in the south part of town they ran across a group of Hispanic males at 201 E. McArtor, Lot 24. The males appeared to be members of a rival gang, the Surenos.
Later that day, Worthey, Wright and two other Nortenos went to the trailer park. Worthey was in the front passenger seat and Wright was driving. Two other Nortenos were riding in the back seat. When Wright parked the car, the two Nortenos in the back seat got out and ran toward the Hispanic males at Lot 24, with Worthey and Wright following. The two Nortenos in the lead fired at the men at Lot 24. Israel Peralta was struck several times by the gunfire and died from the injuries. Mariano Sorano also was struck by gunfire. The four Nortenos got back in their car and drove away from the scene.
In his plea, Worthey admitted that as a member of the Nortenos he was part of an ongoing criminal enterprise. The gang used murder, robbery, assault and the threat of violence to protect and expand its operations. He was one of 23 defendants indicted in May 2012 under a federal law called the RICO Act (Racketeering Influenced and Corrupt Organizations Act.
Co-defendant Anthony Wright is set for sentencing Feb. 10.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff's Office, the Kansas Bureau of Investigation, the Ford County Attorney’s Office, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.Fourth Defendant in Ticket-Fixing Conspiracy Pleads GuiltyRead the Press Release
PHILADELPHIA – William Hird, 68, of Philadelphia, PA, pleaded guilty today to taking part in a fraud scheme involving judges at the former Philadelphia Traffic Court. Hird, who was Director of Records at the time, pleaded guilty to 18 counts, including conspiracy, wire fraud, mail fraud and lying to the FBI when questioned about ticket fixing at Traffic Court. Hird is the fourth defendant to plead guilty in the fraud conspiracy that the government alleges involved frequent and pervasive “ticket-fixing” at the Philadelphia Traffic Court. U.S. District Court Judge Robert F. Kelly has not yet set a sentencing date. Hird faces a possible advisory sentencing guideline range of 12 to 18 months in prison, before variances or departures.
Former traffic court judge Fortunato Perri, Sr., who pleaded guilty on March 13, 2013, would receive traffic citation numbers, the names of offenders, or the actual citations to arrange "fixing" the ticket and would convey the information to William Hird. Hird, in turn, allegedly conveyed the request to the assigned judge or the judge’s staff. Hird was extremely loyal to Perri given that Perri helped Hird move up the ladder to a high-level administrator at Traffic Court. Recorded conversations demonstrate that Hird acceded to Perri's requests to "fix" certain tickets. Given Hird's position at Traffic Court and access to the judges, Hird was able to facilitate requests for ticket fixing for Perri.
As part of the scheme, tickets were "fixed" by either being dismissed, finding the ticket holder "not guilty," or finding the ticket holder guilty of a lesser offense. In many cases, the ticket holder did not even appear in Traffic Court, yet their ticket was "fixed." As a result, the ticketholders paid lesser or no fines and costs, and evaded the assessment of "points" on their driving record. This widespread "ticket-fixing" defrauded both the Commonwealth of Pennsylvania and the City of Philadelphia of funds, and allowed potentially unsafe drivers to remain on the roads.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Anthony J. Wzorek.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Treasurer of Mayetta Fire District Pleads Guilty to EmbezzlementRead the Press Release
TOPEKA, KAN. - The former treasurer of the Mayetta Rural Fire District #1 pleaded guilty Monday to embezzling from the district, U.S. Attorney Barry Grissom said. In his plea, the defendant agreed to an order that he pay $427,042 in restitution.
Richard P. Bontrager, 67, Holton, Kan., pleaded guilty to one count of embezzlement. In his plea, he admitted that in 2008 he began embezzling from the fire district by issuing checks with the forged signatures of members of the board of the fire district. The checks were made payable to R & S Services, a fictitious entity Bontrager created so he could deposit the fraudulent checks into his own account at Denison State Bank. From 2008 to 2012 he made approximately $427,042 in unauthorized transfers from the fire district’s accounts.
Sentencing is set for April 14. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Jackson County Sheriff’s Office and the FBI investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.
In addition, without the knowledge of the board of the fire district he falsified loan documents to obligate the fire district to monthly lease payments on a Polaris Ranger UTV and a 1988 Chevrolet 1-ton brush truck. He created false board minutes to make it appear the board had approved the lease payments.Former Postal Worker Sentenced for Mail TheftRead the Press Release
BOSTON – A former mail sorter, who last year pleaded guilty to stealing mail, was sentenced today in U.S. District Court.
Michael Gilman, 27, of Taunton, was sentenced by Senior U.S. District Court Judge Mark L. Wolf to one year of probation and ordered to pay $789 in restitution. In April 2013, Gilman pleaded guilty to theft of mail.
Gilman, a mail sorter for the U.S. Postal Service in Brockton, had opened greeting cards, stealing their contents over a two-month period. The senders of these cards included parents, grandparents and friends, whose intended recipients never received their gifts and greeting cards. Gilman’s theft resulted in monetary loss to 20 victims.
United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.
Former Official of Pop Warner Admits Stealing Hundreds of Thousands of Dollars from the OrganizationRead the Press Release
TRENTON, N.J. – The former regional director of the Eastern Region of Pop Warner Little Scholars Inc. (Pop Warner) today admitted stealing hundreds of thousands of dollars from the organization and using the funds for his personal benefit, U.S. Attorney Paul J. Fishman announced.
David Marshall, of Jackson, N.J., pleaded guilty today before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of wire fraud.
According the documents filed in this case and statements made in court:
Between 2005 and 2011, Marshall performed work for Pop Warner on a voluntary basis and held various positions. From 2006 through 2011, Marshall was the regional director for the Eastern Region of Pop Warner. He was responsible for handling the finances of the Eastern Region and had access to its bank and credit card accounts. Marshall used his authority to steal hundreds of thousands of dollars from Pop Warner. He improperly used funds from Pop Warner bank accounts to pay off personal debts and make cash withdrawals. Marshall also used a Pop Warner credit card to purchase personal items and other things unrelated to Pop Warner.
The wire fraud count to which Marshall pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. As part of the plea, Marshall agreed to pay restitution to the victim of the offense in an amount that will be determined at sentencing, which is scheduled for June 25, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.14-028
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, TrentonMarshall Information
Former Modesto Real Estate Broker Sentenced to 10 Years in Prison for Mortgage Fraud ScamRead the Press Release
FRESNO, Calif. – James Lee Lankford, 74, formerly a Modesto-based real estate broker, was sentenced today by Senior U.S. District Judge Anthony W. Ishii to 10 years in prison for orchestrating an 11-year mortgage fraud scam that looted elderly homeowners and lending institutions of close to $10 million dollars, United States Attorney Benjamin B. Wagner announced.
Lankford’s co-defendant, Jon Vance McDade, 49, formerly of Modesto, was sentenced to one year of home detention to be followed by a five-year term of supervised release, in connection with the same mortgage fraud scam. (McDade and Lankford have married and McDade is now known as Jon Vance Lankford.) The two were ordered to forfeit their interests in various properties and to pay $1,443,826 in restitution to the victims of the fraud scheme.
According to court documents, Lankford, who operated Century 21-Apollo Realty as a real estate agent and broker, fraudulently induced elderly property owners to sell their homes to him and to provide the financing for the purchase. In return, Lankford agreed to make interest-only payments and to pay the principal at a future date. Lankford fraudulently induced the elderly sellers into believing that their financing was secured by the property itself by filing deeds with the county recorder’s office. Unbeknownst to the elderly sellers, Lankford also obtained mortgages from lending institutions to finance the purchase of the same properties. In order to obtain the mortgages, Lankford would not inform the lending institutions that he had obtained seller-backed financing. Lankford and co-defendant McDade also made other material misrepresentations on the loan applications and in some instances, submitted falsified documents regarding monthly income to ensure approval for the loans.
In many instances, Lankford then refinanced the properties with another lending institution after filing fraudulent deeds purportedly showing that the elderly property owners had been paid in full. After eliminating the seller’s lien on the property, Lankford would then obtain refinancing and draw out any equity that had accumulated in the property. Lankford, having refinanced the property, and in some instances having obtained additional financing by reselling the property to co-defendant McDade, would then allow the property to go into foreclosure, or would sell it as a short sale.
“James Lankford preyed on elderly homeowners in the course of his scheme,” U.S. Attorney Wagner said. “The sentence imposed in this case appropriately reflects the cruelty of Lankford’s conduct.”
“James Lee Lankford participated in a fraudulent scheme that preyed on elderly victims and the banking industry causing millions of dollars in losses to those individuals and to Fannie Mae,” said Michael P. Stephens, Acting Inspector General for the Federal Housing Finance Agency’s Office of Inspector General (FHFA-OIG). “We will continue to work with our law enforcement partners to dismantle such schemes and hold all involved accountable, just as Lankford was held accountable.”
“Lankford’s elaborate scheme was damaging not only to individual victims but also to lenders and the local economy,” said Special Agent in Charge Monica M Miller of the Sacramento division of the FBI. “He used vulnerable, elderly citizens as mere pawns in his elaborate scheme, carelessly and irreparably damaging their financial wellbeing while defrauding lenders to elevate his own lifestyle, lining his pockets with ill-gotten gains. This case exemplifies the importance of partnership among federal and local law enforcement agencies for successful investigation and pursuit of justice for victims of financial crime.”
This case was the product of an investigation by the FBI, the FHFA-OIG, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorneys Christopher Baker and Michael Tierney prosecuted the case.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Former Employee of Financial Brokerage Sentenced to over Five Years in Federal Prison for Fraud and Identity TheftRead the Press Release
A former employee of a financial brokerage firm in Mason City, Iowa, who stole $391,725.31 from multiple firm clients was sentenced today to more than five years in federal prison.
Teresa Dorenkamp, 42, from Mason City, Iowa, received the prison term after an August 26, 2013, guilty plea to one count of wire fraud and one count of aggravated identity theft.
In a plea agreement, Dorenkamp admitted that, while employed by the financial brokerage, she fraudulently obtained money from the firm’s clients by falsely depositing money belonging to the clients into Dorenkamp’s or her husband’s bank accounts. Dorenkamp admitted one such false deposit occurred on June 3, 2011, when Dorenkamp had $36,139.60 wire transferred from a client’s investment account into Dorenkamp’s own bank account. Dorenkamp further admitted she forged the signature of that client in order to complete the false deposit. Dorenkamp further admitted she caused $391,725.31 in fraudulent transfers and deposits from May 2007 through August 2011.
Dorenkamp was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Dorenkamp was sentenced to 65 months’ imprisonment. A special assessment of $200 was imposed, and she was ordered to make $391,725.31 in restitution. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Dorenkamp was released on conditions previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation and the Mason City Police Department.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 13-CR-03032.
Former Chief of St. Louis Park Rangers Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO - THOMAS STRITZEL, Former Chief of the St. Louis Park Rangers, was sentenced to 36 months in prison on charges that he and Joseph Vacca, Former Deputy Commissioner of the St. Louis Parks Division, defrauded the City of St. Louis of approximately one-half million dollars by submitting false invoices for materials and services supplied to the Parks Division. He appeared before United States District Judge Carol E. Jackson in St. Louis.
According to court documents at the time of their guilty pleas, from January 1, 2005, to December 31, 2012, Vacca and Stritzel embezzled funds of the City of St. Louis based upon the submission of sham and false invoices, which included false charges of approximately $472,722. They used the funds for their own personal use, including lease payments on personal vehicles, fuel costs, the payment of personal credit card charges and other personal living expenses unrelated to the legitimate operations of the St. Louis Parks Division.
Vacca and Stritzel set up a sham company called Dynamic Management and then funneled city funds received through the submission of false and sham invoices to Dynamic Management's bank account. They then used those fraudulently obtained funds for their own personal use, including leasing personal vehicles, payment of fuel costs and the payment of personal credit card charges.
Stritzel, St. Louis, mo, was also ordered to pay restitution of $472,722.
Joseph Vacca, St. Louis, MO, was sentenced in December to 36 months in prison, and ordered to pay restitution to the City of St. Louis in the amount of $472,722.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
Former Afro Dogs National Vice President Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Ricky Allen, 57, of Buffalo, N.Y., who was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, was sentenced to time served and five years supervised release by U.S. District Judge Richard J. Arcara. As part of his sentenced, the defendant is prohibited from any affiliation with the Afro Dogs Motorcycle Club or any another motorcycle gang.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who prosecuted the case, stated that the defendant was a former National Vice-President of the Afro Dogs Motorcycle Club. From 2009 through March 2011, Allen assisted co-conspirator John Smith in storing quantities of cocaine at his home.
Allen was intercepted on a wiretap of Smith’s telephone receiving directions for the packaging and distribution of the cocaine. The conversations also included discussion of information that Allen obtained in his position with the Buffalo Joint Commission to Examine Police Reorganization.
The defendant was ordered to forfeit a 2010 Harley Davidson motorcycle, a vehicle and approximately $28,200.00 in United States currency.
Allen was arrested in March 2011 along with 11 other defendants. A total of nine defendants, included Allen, were convicted. Eight of the defendants have been sentenced, while a ninth defendant, John Smith, died before his sentencing. Three defendants were acquitted following a jury trial.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Jamie J. Hunt, Acting Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation under the direction of Special Agent in Charge Brian P. Boetig, The New York State Police, under the direction of Major Wayne Olson, the Buffalo Police Department under the direction of Commissioner Daniel Derenda, the Amherst Police Department, under the direction of Chief John Askey, the Tonawanda Police Department under the direction of Chief Anthony Palombo, the Lockport Police Department under the direction of Chief Lawrence Eggert, and the Internal Revenue Service, Criminal Investigations, under the direction Special Agent-in-Charge Toni M. Weirauch, Special Agent in Charge.Five Defendants Sentenced for On-line Trafficking of Prescription DrugsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – Five men have been sentenced to federal prison this week for prescription drug trafficking in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Khuda Balouch Buksh, 47, a Pakistani national living in Duncanville, Texas, pleaded guilty on Jan. 16, 2013 to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 36 months in federal prison on Jan 24, 2014 by U.S. District Judge Marcia Crone. Buksh was ordered to be deported following the completion of his prison sentence.
Sikander Ali Teepu, 29, a Pakistani national living in Wantagh, NY, pleaded guilty on Aug. 26, 2013 to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 18 months in federal prison on Jan. 24, 2014 by Judge Crone.
Haroon Ahmad Tanooli, 31, a Pakistani national living in Sugarland, Texas, pleaded guilty on Aug. 13, 2013, to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 18 months in federal prison on Jan. 24, 2014 by Judge Crone.
Mustajab Ali Raza, 28, a Pakistani national living in Brighton, MN, pleaded guilty on Aug. 21, 2013 to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 12 months and one day in federal prison on Jan. 22, 2014 by Judge Crone. Raza was ordered to be deported following the completion of his prison sentence.
Saaim Aslam, 31, of Irvine, CA, pleaded guilty on Aug. 26, 2013, to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 12 months and one day in federal prison on Jan. 22, 2014 by Judge Crone.
According to information presented in court, beginning in 2009, the defendants conspired to import and distribute controlled substances, specifically Methylphenidate, Amphetamine, Oxycodone, Hydrocodone, alprazolam, and Diazapam, to others by way of a large on-line pharmaceutical operation. A federal indictment was returned by a grand jury on April 12, 2012 charging federal drug trafficking violations.
“The sentencing of these defendants demonstrates DEA’s commitment, along with our Federal partners from IRS, Homeland Security Investigations, the United States Postal Inspection Service, and the U. S. Attorney’s Office, to rid our communities here in North Texas of the sweeping epidemic of on-line prescription drug fraud and abuse,” said Daniel R. Salter, Special Agent In Charge of the Dallas Field Division. “Enforcement entities nationwide are aggressively pursuing prosecutions of any individuals who attempt to import and distribute these adulterated, misbranded, and counterfeit controlled substances. We are proud to be a part of these efforts.”
“IRS Criminal Investigation assisted DEA by utilizing our financial expertise to follow the money and unravel a complex web of international money laundering transactions that spanned multiple countries,” said Damon Rowe, IRS CI Special Agent in Charge in Dallas, Texas. “This analysis resulted in uncovering the sophisticated financial network that supported this drug trafficking organization.”
This case was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorney Stevan Buys.
Federal Jury Finds Albuquerque Man Guilty on Production of Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Late this afternoon a federal jury returned a verdict finding Antonio Gutierrez, 44, of Albuquerque, N.M., guilty on three production of child pornography charges after a five-day trial. The announcement was made by Acting U.S. Attorney Steven C. Yarbrough, Special Agent Carol K.O. Lee of the FBI’s Albuquerque Division and Albuquerque Police Chief Allen Banks.
In announcing the jury’s verdict, Acting U.S. Attorney Steven C. Yarbrough said, “The jury’s verdict clearly demonstrates that this community will not tolerate predatory acts like the ones carried out by Antonio Gutierrez. Rather than provide the trusting, protective environment the child living in his home deserved, Mr. Gutierrez instead sexually exploited her. He must now face the full consequences of the law for his actions.”
Gutierrez was arrested in Aug. 2012, based on a criminal complaint alleging that he induced a minor to engage in sexually explicit conduct for the purpose of producing child pornography. Gutierrez subsequently was charged with three counts of production of child pornography in a superseding indictment alleging that he committed the offenses between Aug. 2011 and Nov. 2011 in Bernalillo County, N.M.
Trial against Gutierrez began on Jan. 21, 2014, where the victim testified that in May 2011, Gutierrez gave her a cellphone on her 16th birthday and told her that he would pay for the first month of service. In June 2011, Gutierrez told the victim that he would pay the cellphone service bill if she repaid him with nude photographs of herself. The victim used her cellphone to take two photographs of her without clothes and sent the images to Gutierrez’s cellphone.
The victim testified that this began a monthly cycle of Gutierrez refusing to pay for her cellphone service unless she provided nude photographs of herself. With each passing month, Gutierrez escalated the nature and extent of the sexual conduct in which the victim was required to engage when photographed. For example, On Aug. 1, 2011, Gutierrez demanded to be in the photographs and took photographs as he posed nude next to and on top of the nude victim. On Aug. 2, 2011, Gutierrez positioned the victim in sexually explicit poses before taking photographs of her. And on Sept. 26, 2011, Gutierrez took photographs after positioning his genitals against the victim’s genitals.
In Nov. 2011, after the victim reported Gutierrez’s unlawful conduct to the Albuquerque Police Department, officers executed a search warrant at Gutierrez’s residence and seized computers, computer-related media and cellphones. A subsequent forensic examination of Gutierrez’s personal computer revealed many sexually explicit photographs, including sexually explicit photographs of the victim taken by Gutierrez.
Gutierrez took the stand in his own defense and denied that he produced any child pornography as alleged in the superseding indictment. Gutierrez also claimed that he did not know how the child pornography ended up on his computer. The jury deliberated approximately three hours before returning a verdict of guilty on each of the three counts of the superseding indictment.
Gutierrez is in custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Gutierrez faces a mandatory 15 and a maximum of 30 years in federal prison followed by a term of supervised release to be determined by the court.
FBI Special Agent in Charge Carol K.O. Lee stated, “Few crimes that the FBI investigates are as heartbreaking as the production of child pornography. We hope this verdict sends a clear signal to anyone who would endanger our children's innocence by committing this crime: we are looking for you, we will find you, and we will make sure you are prosecuted to the fullest extent of the law. I thank the FBI Special Agents and New Mexico Regional Computer Forensics Lab staff who worked so diligently on this case, along with the Albuquerque Police Department.”
This case was investigated by the Albuquerque office of the FBI, the Albuquerque Police Department and the New Mexico Regional Computer Forensic Laboratory. Assistant U.S. Attorneys Jennifer M. Rozzoni and Marisa A. Lizarraga are prosecuting the case 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/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 75 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Federal Court Shuts Down Spyware Product PermanentlyRead the Press Release
ALEXANDRIA, Va. – Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, announced today that U.S. District Judge Leonie M. Brinkema has put a permanent stop to the advertising, marketing, or sale of the spyware application (or “app”) called StealthGenie. The court preliminarily shut down the app in September, when it issued a temporary restraining order. The court has now permanently enjoined use of and access to the app.
Before it was shut down the StealthGenie app could be installed on a variety of smartphones and operated without the user’s knowledge. It allowed the purchaser of StealthGenie software to: monitor the smartphone user’s incoming and outgoing phone calls; intercept calls in real time without the knowledge of the smartphone user; monitor the smartphone user’s email and text messages; and activate the phone without the user’s knowledge so conversations within earshot of the smartphone could be monitored. All of this could be done without the knowledge of the smartphone user.
In September, the United States filed a civil lawsuit against app creator Hammad Akbar, of Lahore, Pakistan, asking the court to order that the app be shut down immediately, temporarily, and then permanently. Mr. Akbar was arrested in Los Angeles, California, on September 27, 2014, for violating a federal law that prohibits the manufacturing, sale, or possession of any device whose primary purpose is the surreptitious interception of wire, oral, or electronic communications. In November 2014, Akbar pled guilty to related charges in the Eastern District of Virginia. The law also allows the United States to ask a court to prohibit the production, use, or possession of the device.
The court’s order is the result of a coordinated effort by Assistant U.S. Attorneys Kevin Mikolashek and Jay Prabhu of the U.S. Attorney’s Office for the Eastern District of Virginia; William Hall of the United States Department of Justice Criminal Division; and the Federal Bureau of Investigation.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14cv1273 and 1:14cr276.Tweet
Cranston Man Sentenced to 50 Months in Federal Prison for Trading Xanax Pills for FirearmsRead the Press Release
PROVIDENCE, R.I. –Donald Robbio, 56, of Cranston, was sentenced today to 50 months in federal prison for trading the pharmaceutical drug Xanax for two firearms, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Robbio was arrested on June 28, 2013, moments after he exchanged a significant number of Xanax pills for a 9 millimeter pistol and .380 caliber handgun with an undercover ATF agent.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Robbio to serve three years supervised release upon completion of his prison term. Robbio pleaded guilty on September 12, 2013, to being a felon in possession of a firearm. According to information presented to the court, Robbio was convicted previously in state court on felony assault, firearm and manslaughter charges.
At the time of his guilty plea, Robbio admitted to the court that on June 21, 2013, he contacted an undercover ATF agent who was posing as an individual interested in purchasing a controlled substance and in selling firearms. Robbio told the agent he had 300 Xanax pills for sale and inquired if the agent had a “toy to play with.” Three days later, Robbio again engaged the ATF agent in a telephone conversation and arranged to meet the agent in person in order to provide a sample of Xanax pills he was offering. The next day, Robbio sold the agent 35 Xanax pills for $100, and agreed, at Robbio’s request, to meet again to exchange an additional $700 worth of Xanax pills for two firearms. On June 28, 2103, at Robbio’s request, the two men met in a parking lot in Cranston where Robbio exchanged a bag containing 140 Xanax pills for the firearms. Robbio was taken into custody immediately by agents from ATF.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Court Permanently Enjoins Georgia Tax Return PreparerRead the Press Release
A federal district judge in the Statesboro Division of the Southern District of Georgia has permanently barred Lakesia Michelle Mills of Adrian, Ga., from preparing federal income tax returns for others, the Justice Department announced today. The injunction also requires Mills to send copies of the injunction to her customers.
According to the complaint filed by the department on Nov. 1, 2013, Mills is a paid tax return preparer who does business as Willis Tax Service. The complaint alleges that, since January 2011, Mills has prepared at least 455 amended federal income tax returns that claimed overstated refunds based upon fabricated First-Time Homebuyer Credit claims for $8,000, which is the maximum amount. Mills also allegedly provided customers with false settlement statements and proof of insurance to support the credit. The complaint also alleges that Mills failed to sign the returns she prepared or to include her tax preparer identification number as required. Altogether, Mills allegedly claimed over $3.6 million in bogus credits on the amended returns. Mills consented to the entry of the injunction without admitting to any findings of fact.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2013. The Internal Revenue Service has tips for choosing a tax preparer www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the department website.
Related Materials:
United States v. Lakesia Michelle Mills
Complaint for Injunctive Relief
Final Judgment of Permanent Injunction Against Lakesia Michelle Mills d/b/a Willis Tax ServiceCouncil Bluffs Man Sentenced on Firearm ChargeRead the Press Release
COUNCIL BLUFFS, IA - On January 24, 2014, Michael Phillip Castor, age 40 of Council Bluffs, Iowa, was sentenced by Senior Judge Robert W. Pratt, in United States District Court in Council Bluffs on a charge of felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Senior United States District Court Judge Robert W. Pratt sentenced Castor to 110 months imprisonment, to be followed by three years of supervised release. Castor was also ordered to forfeit the firearm and ammunition he possessed, and to pay a $100.00 special assessment for the Crime Victim Fund. Castor remained in the custody of the United States Marshal pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence.
In sentencing Castor, Judge Pratt found that Castor was subject to the enhanced sentencing provisions of the Armed Career Criminal Act, which increases the sentence of a convicted felon in possession of a firearm based on prior serious drug felony or felony violent crime convictions. Castor was found to have three prior violent crime convictions in Nebraska, including burglary, robbery, and the use of a firearm to commit a felony.
The charge arose from a Council Bluffs, Iowa, Police Department investigation into a stolen motorcycle. During the search of a residence associated with Castor, officers found a loaded 9mm pistol. Officers had previously found on Castor’s person four rounds of ammunition which matched the make and caliber of the ammunition in the loaded pistol.
The case was investigation by the Council Bluffs, Iowa, Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Colbert County Sheriff's Capt. Timothy Vanderford Receives Federal Law Enforcement AwardRead the Press Release
TUSCUMBIA -- Colbert County Sheriff's Capt. Timothy Bryan Vanderford today received a national law enforcement award recognizing his integral role in the multi-agency investigation and federal prosecution of Ricky Walter Denton for armed bank robbery, identity theft and filing false federal tax returns.U.S. Attorney Joyce White Vance, Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, FBI Special Agent in Charge Richard D. Schwein Jr., and Colbert County Sheriff Ronnie May announced the presentation of Vanderford's award.
James Nolan, president of the Birmingham-based chapter of the Federal Law Enforcement Officers Association, presented Vanderford with the FLEOA's 2012 State, County, Local or Special Police Investigative Award in a ceremony at the Colbert County Sheriff's Office in Tuscumbia. IRS Criminal Investigation Special Agent Matt Austin nominated Vanderford for the award. FLEOA presents national awards annually and last year announced Vanderford as its only 2012 recipient in the State, County, Local or Special Police category.
Vanderford, now Colbert County's chief investigator, was a sergeant in the department's Investigations Section when Denton, of Tuscumbia, robbed First Southern Bank in Colbert County in December 2009. The FBI and the Colbert County Sheriff's Office began investigating the bank robbery, and Vanderford was instrumental in conducting interviews, executing search warrants and testifying in hearings and at the trial that led to Denton's armed bank robbery conviction, Austin said in his nomination letter. During the course of the robbery investigation, Vanderford discovered that Denton also was running a federal tax fraud scheme by using stolen identities of Alabama State Prison inmates to create false tax returns. At the time of Denton's prosecution in 2011, the prison identity-theft scheme was the largest known to the IRS in Alabama, according to Austin. Denton and a co-conspirator, Joann Choat, stole $148,000 from the IRS while Denton was in the state prison system.
"Capt. Tim Vanderford is an intelligent, hardworking, very capable investigator who is extremely diligent in reviewing all aspects of a case for the victim," Sheriff May said. "I am proud for him; he truly deserves this award."
"It is always a privilege to work with local law enforcement in an effort to protect and serve the public. We are extremely pleased that Capt. Vanderford, during the investigation, recognized the identity theft scheme and collaborated with us and other law enforcement to bring it to an end," said IRS SAC Hyman-Pillot. "Capt. Vanderford's years of training, hard work and perseverance have served him well, and we look forward to working with him again in the future."
"Capt. Vanderford's tenacity and attention to detail led to uncovering additional crimes, for which Denton and Choat are now being held accountable. This was simply outstanding work on his part and exemplifies what can be accomplished when law enforcement comes together in a spirit of cooperation with a common goal," said FBI SAC Schwein.
Vanderford began his law enforcement career with the Colbert County Sheriff's Office in 1996. He has received many awards for his work during that time, including Officer of the Year from both the Sheffield Elks Lodge and the Colbert County Exchange Club, 1999; Roper Marksmanship Award for Colbert County, 2000; and Alabama Governor's Office Law Enforcement Medal of Distinction, 2008. Vanderford also is a recent graduate of the FBI National Academy.Clovis Man Sentenced for Aiming Laser at Sheriff HelicopterRead the Press Release
FRESNO, Calif. — Charles Conrad Mahaffey, 23, of Clovis, was sentenced today to 21 months in prison for aiming a laser pointer at a Fresno County Sheriff’s Office helicopter, U.S. Attorney Benjamin B. Wagner announced.
Mahaffey’s sentence follows his guilty plea last November. According to court documents, Mahaffey deliberately tracked and struck Eagle 1, a Fresno County Sheriff’s Office helicopter, with a powerful red laser while the aircraft was assisting ground units on a call for a domestic disturbance. As a result, the pilot was distracted by the intense light and forced to break away from the call. The pilot reported the laser strikes to Air Traffic Control at the Fresno Yosemite International Airport and, with the help of the Clovis Police Department, was able to locate the source of the laser and identify Mahaffey as the suspect. In pleading guilty, Mahaffey admitted he knew it was a crime to point the laser at an aircraft but stated he, “just can’t help himself from doing stupid things.”
“Shining a hand-held laser at an aircraft in flight is a serious, illegal act that puts both air crew and the public on the ground at serious risk,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the FBI. “Hand-held lasers are well labeled to inform owners of their potential risk to health and safety, cautioning owners against improper use. Ignorance is no excuse for such reckless action and we are committed to working with our law enforcement partners to locate and identify individuals who have total disregard for life and safety.”
“The Fresno County Sheriff’s Office Air Support Unit provides critical support to the public and to all law enforcement agencies in the region,” stated Fresno County Sheriff Margaret Mims. “The illegal use of a laser creates a severe danger to our deputies in the helicopter and in turn, the public at large. This crime could have had disastrous results.”
Laser beams pose a serious safety hazard to flight operations. The focused beams of a laser remain powerful at extended viewing distances and can expose pilots and their crew members and passengers to radiation levels above those considered to be flight safe. Brief exposure to even a relatively low-powered laser beam can cause discomfort and temporary visual impairments such as glare, flash blindness and after images. Prolonged exposure to high-powered laser beams can and has resulted in permanent eye injury. In 2013, there were 3,960 laser illumination incidents reported to the Federal Aviation Administration, an average of 10.85 strikes per day. Airports in the 34 counties of the Eastern District of California reported 94 laser strikes in 2013, or more than seven laser illumination incidents per month. The Fresno Yosemite International Airport and Meadows Field Airport reported the highest number of laser illuminations followed by the Sacramento International Airport.
This case was the product of an investigation by the Federal Bureau of Investigation, Clovis Police Department, and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Ceredo Woman Pleads Guilty to Federal Heroin ChargeRead the Press Release
Huntington, W.Va. - U.S. Attorney Booth Goodwin announced that Helen Louise Adkins, of Ceredo, pleaded guilty today in federal court to distributing heroin to an undercover Drug Enforcement Administration (DEA) Agent.
In January of 2013, Adkins sold two grams of heroin to an undercover DEA agent in the parking lot of a Huntington grocery store. When confronted, Adkins admitted that she was involved in a drug conspiracy with Bobby Nelson Gulley and Alanna Lynn Mattison to transport heroin and oxycodone from Detroit, Michigan for distribution in Huntington. Between January and August of 2013, Adkins allowed Gulley to sell the drugs from her apartment at 522 14th Street West in Huntington.
In August of 2013, agents searched multiple locations associated with the drug conspiracy. During the search, agents recovered over 140 grams of heroin, 974 oxycodone tablets and $12,000 in cash. Gulley pleaded guilty on January 21, for his involvement in the conspiracy.
Adkins faced up to 20 years in federal prison. Sentencing is scheduled for April 28, 2014. DEA and the Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state, and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.