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Monday 27 January 2014
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.
Carbon County Man Pleads Guilty to Federal Cocaine Trafficking ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Lansford, Carbon County, resident pleaded guilty today in U.S. District Court in Scranton, before Senior United States District Judge Edwin M. Kosik, to the charge of distributing cocaine.
According to United States Attorney Peter J. Smith, Joseph Revell, age 21, admitted to distributing cocaine in the Carbon County area between January 2011 and September 2012.
Revell is the fifth defendant to enter a guilty plea in connection with the joint federal-local investigation. Previously, Bonnie Vosburgh, age 22, of Nesquehoning, Victoria Argott, age 34, of Lansford, Ceres Lozada, age 27, of Nesquehoning, and Alexander “Butch” Sommers, age 47, of Summit Hill, entered guilty pleas and admitted to participating in the same cocaine trafficking conspiracy.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments.
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
In this particular case, the maximum penalty under the federal statute is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Canadian Citizen Pleads Guilty to Shipping Cocaine to Canada; Sham Marriage Revealed During Court ProceedingsRead the Press Release
FRESNO, Calif. — Manjot Nanner , 32, a resident of Fresno and Canadian citizen, pleaded guilty today to conspiring to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Nanner helped set up a Fresno trucking company intending that cocaine would be concealed in legitimate cargo to be shipped to Canada. As part of the conspiracy, on September 21, 2012, another person was sent to Los Angeles and obtained eight kilograms of cocaine. Law enforcement seized that cocaine and arrested Nanner and others. A follow-up search warrant on September 21, 2012, at the Los Angeles residence resulted in the seizure of an additional 40 kilograms of cocaine.
Nanner has been in custody without bail since his arrest on September 21, 2012. He was originally ordered to be released on bond. However, the Court reversed its order when the government established that the Nanner’s purported ties to Fresno included a sham marriage.
This case is the product of an investigation by the Organized Crime Drug Enforcement Task Force with assistance from the Drug Enforcement Administration, and the Fresno Police Department, with assistance from the Fontana and Vernon Police Departments. Assistant United States Attorney Kevin Rooney is prosecuting the case.
Nanner is scheduled to be sentenced by Judge Anthony W. Ishii on April 7, 2014. Nanner faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Plea Agreement
Burlington, Iowa, Men Sentenced on Federal Cocaine ConspiracyRead the Press Release
DAVENPORT, IA – On January 24, 2014, Akeem Levelle Eison, age 28, and Zachary Robert Shullaw, age 36, both of Burlington, Iowa, were sentenced by United States District Judge John A. Jarvey for conspiracy to distribute cocaine, announced United States Attorney Nicholas A. Klinefeldt. Eison was sentenced to 100 months imprisonment. Shullaw was sentenced to 37 months imprisonment. Both were also ordered to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
Beginning in approximately March 2012 and continuing until about April 24, 2013, Eison and Shullaw conspired with other persons to distribute cocaine in the Burlington, Iowa area. Specifically, Shullaw personally sold undercover law enforcement personnel cocaine in ounce quantities. Eison distributed cocaine during the course of the conspiracy including providing co-defendant Shane Francis Culbertson with a multi-ounce quantity of drugs which Culbertson then arranged to sell to undercover law enforcement personnel.
On January 21, 2014, Judge Jarvey sentenced Culbertson to 30 months imprisonment and three years of supervised release following imprisonment for conspiracy to distribute cocaine. The remaining co-defendant, Corey Damon Keys, has pled guilty to conspiracy to distribute cocaine and is awaiting sentencing.
This case was investigated by the Iowa Department of Narcotics Enforcement, the United States Drug Enforcement Administration, the Burlington, Iowa, Police Department, and the Southeast Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Bradford County Husband and Wife Plead Guilty to Tax Fraud SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Tandy and Sandy Talada of Sayre, Pennsylvania pleaded guilty to a felony criminal information charging tax fraud on January 22, 2014 in Williamsport.
According to United States Attorney Peter J. Smith, Randy Talada and his wife Sandy Talada appeared before U.S. District Court Judge Matthew W. Brann. Randy Talada pleaded guilty to one count of conspiracy to commit mail fraud and tax evasion and Sandy Talada pleaded guilty to one count of tax evasion. The criminal information and plea agreements were filed on January 2, 2014.
Randy Talada faces a total potential sentence of 5 years’ incarceration and a fine of $250,000. Sandy Talada is facing a total potential sentence of 5 years’ incarceration and a fine of $100,000. Judge Brann ordered a pre-sentence report to be prepared by the Probation Department.
The criminal charges stem from an investigation conducted by the IRS, FBI, and the Athens Borough Police Department. Randy Talada was employed by the Athens, Pennsylvania American Legion Post 246, being paid under-the-table while at the same time collecting workers’ compensation and SSI, being allegedly totally disabled and physically unable to work. Talada was employed as the Bar Club manager, and during the time that he was so employed his wife, Sandy Talada “won” more than $100,000 in small games of chance at the American Legion over a four year period.
None of the income from Randy Talada’s cash salary nor Sandy Talada’s lottery/small game of chance “winnings” were reported on the couple’s joint federal tax returns. Randy Talada collected workers’ compensation while fraudulently claiming to be physically unable to work.
This case was investigated by the IRS, FBI and Athens Borough Police Department, and is being prosecuted by Assistant United States Attorney Todd K. Hinkley.
Bernice Rivera Sentenced for Bank MisapplicationRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant BERNICE RIVERA was sentenced on January 21, 2014, by Chief Judge Frances Tydingco-Gatewood in the District Court of Guam, to time served and two years of supervised release for the offense of Bank Misapplication.
The defendant, BERNICE RIVERA, was a bank employee at Coast 360 Federal Credit Union, and misapplied funds from a customer account in the amount of $11,891. The defendant had paid full restitution in advance of her sentencing.
This case was investigated by the Federal Bureau of Investigations and was prosecuted by Assistant
U.S. Attorney Frederick A. Black.Beatrice Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
On January 27, 2014, Angie Ray Shera, 39, formerly of Beatrice, Nebraska, was sentenced to six years in prison for conspiracy to distribute methamphetamine. Following the prison term, Shera will serve five years on supervised release.
Information provided to law enforcement indicated that between January of 2011 and February of 2013, Shera was involved with other persons in the distribution of 500 grams or more, (approximately 18 ounces), of methamphetamine in the Lincoln and Beatrice areas. On February 23, 2011, Shera was stopped by Lincoln Police officers after she left the Lincoln apartment of her source. Shera was found in possession of 10 grams of methamphetamine, and she admitted she had been selling methamphetamine. The source’s apartment was then searched and additional methamphetamine was found.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Bakersfield Marijuana Dispensary Owner Arrested, Charged with Conspiring with Others to Distribute Methamphetamine and MarijuanaRead the Press Release
FRESNO, Calif. — Adam Christopher Vega, 30, of Bakersfield, was arrested late Friday in Bakersfield after being charged in a seven-count federal indictment alleging that he and four co-conspirators trafficked in methamphetamine and marijuana, United States Attorney Benjamin B. Wagner announced.
The superseding indictment, returned by a federal grand jury in Fresno on January 16, 2014, charges Vega and co-defendants Baltazar Castaneda Garcia, 23; Jesus Manuel Peraza Ruiz, 54; and Robert Anthony Canchola, 26, all of Bakersfield, with conspiring to distribute methamphetamine. Those four persons and Eduardo Ortega Chavez, 32, of Oakland, are also charged with conspiring to manufacture and distribute marijuana.
According to court documents, Vega was the owner of the California’s Best Cooperative Inc., a medical marijuana dispensary in Bakersfield during the time he was allegedly trafficking in methamphetamine and marijuana. Court documents indicate that the defendants trafficked in marijuana and other controlled substances between Kern County and Oakland where defendant Chavez maintained a marijuana grow operation. In October 2013, Ruiz was stopped in Bakersfield with approximately six pounds of methamphetamine concealed in his vehicle as he was returning from Southern California. Garcia and Canchola are also charged with possession of methamphetamine and manufacturing marijuana in connection with substances that were seized during searches at three residences in Bakersfield on January 8, 2014, including two that contained indoor marijuana grow operations.
This case is the product of an investigation by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bakersfield Police Department, Kern County Sheriff’s Office, and Kern County Probation Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
Vega will make his initial appearancebefore a U.S. Magistrate Judge in Bakersfield today. Defendant Ruiz was previously ordered detained in this case. Defendants Garcia and Canchola are temporarily detained pending a detention hearing today at 1:30 p.m. in Fresno. An arrest warrant has been issued for defendant Chavez.
If convicted, Vega, Garcia, Ruiz and Canchola face a maximum statutory penalty of 10 years to life in prison and a $10 million fine. If convicted, Chavez faces a maximum statutory penalty of five to 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bakersfield Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
FRESNO, Calif. — Bradley James Ghilarducci, 66, of Bakersfield, pleaded guilty today to receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Ghilarducci admitted that between February and August 2012, he received images of minors engaged in sexual activity through the Internet.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Ghilarducci is scheduled to be sentenced by Judge Lawrence J. O'Neill on April 14, 2014. Ghilarducci faces a statutory penalty of five years to 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Plea Agreement
Austin Area Doctor Indicted on Federal Drug ChargesRead the Press Release
In Austin this morning, 47-year-old Richard Edward Sofinowski surrendered to federal authorities to face federal drug trafficking charges announced United States Attorney Robert Pitman and Drug Enforcement Administration Acting Special Agent In Charge Steven S. Whipple, Houston Division.
A three–count federal grand jury indictment returned on last Tuesday charges Sofinowski, an Austin psychiatrist, and his co-defendant, 42-year-old Arza Demi of Austin, with one count of conspiracy to distribute methamphetamines and other controlled substances outside the scope of professional practice as well as two substantive drug distribution counts. Authorities allege that Sofinowski, with assistance from Arza, was responsible for doling out more than 400 prescriptions involving a variety of potent narcotic pain medications in exchange for methamphetamine and U.S. Currency.
The indictment also includes a request for a monetary judgment in the amount of $1 million representing the proceeds derived from the alleged criminal activity.
“Prescription drug abuse has become increasingly prevalent in the community, and it is especially serious when a licensed medical professional violates his professional duties as well as federal law in illegally dispensing controlled substances. If Dr. Sofinowski is found guilty of writing prescriptions for narcotics in violation of the law as charged by the grand jury, he will face serious consequences for enabling others’ dependence on drugs,” stated United States Attorney Robert Pitman.
Sofinowski was released on a personal recognizance bond during his initial appearance today. Demi remains in federal custody after her detention hearing, originally scheduled for this afternoon before U.S. Magistrate Judge Andrew Austin, was continued.Upon conviction, each defendant faces up to 20 years in federal prison.
This investigation was conducted by the Drug Enforcement Administration’s Diversion group in Austin. Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are innocent until proven guilty in a court of law.
Auburn Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Kenneth Sales, 23, of Auburn, pled guilty today in U.S. District Court to possessing a firearm
after being convicted of a misdemeanor crime of domestic violence.According to court records, on May 6, 2013, Auburn police officers investigating a report
of a possible stabbing went to a residence where they found the alleged victim sitting in a car
with Sales. As Sales got out of the car, officers saw a Hi-Point .45 caliber ACP pistol on the
driver’s seat where he had been sitting. Sales later admitted possessing the gun. Sales was
prohibited from possessing firearms at the time because he had been convicted of a misdemeanor
crime of domestic violence in a Vermont state court.Sales faces up to 10 years imprisonment, a fine of up to $250,000, or both. He will be
sentenced after completion of a pre-sentence report by the United States Probation Office.The investigation was conducted by the Auburn Police Department and the Bureau of
Alcohol, Tobacco, Firearms and Explosives.Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. –Dirk Alton Johnston, 33, of Mt. Vernon, Alabama, was sentenced today in federal court on drug and gun charges to a term totaling 160 months imprisonment. Judge Charles R. Butler, Jr., imposed the sentences on the two counts, conspiracy to manufacture methamphetamine, and using and carrying a firearm in furtherance of a drug trafficking felony. The judge ordered that Johnston serve 100 months on the drug count, and 60 months on the gun count, and required that the sentences run consecutively to each other. Johnston was also ordered to undergo drug testing and treatment when he is released from imprisonment, for a term of five years supervision. No fine was imposed but Johnston was ordered to pay $200 in special mandatory assessments.
The case was investigated by the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Almighty Imperial Gangster Member Convicted <br /> of Murder and Violent Crime OffensesRead the Press Release
Richard Reyes, a member of the Almighty Imperial Gangsters, has been convicted at trial for his role in violent acts as a member of a criminal street gang that operated in Northwest Indiana and is accused of engaging in drug trafficking and acts of violence, including murder, attempted murder and robbery.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana made the announcement.
Reyes, 41, of Hammond, Ind., was convicted by a federal jury on Jan. 24, 2014, for his role in the murder of rival Latin King gang member Rene Alonzo on Sept. 16, 2007. According to evidence at trial, Reyes fatally shot Alonzo outside of the U.S. Bar in East Chicago. Reyes was convicted of conspiracy to participate in racketeering activity, conspiracy to distribute cocaine and marijuana, and murder in aid of racketeering activity, which each carry a maximum penalty of life in prison; and murder resulting from the use and carrying of a firearm during a crime of violence, which carries a minimum mandatory penalty of 10 years in prison consecutive to any other sentence and a maximum of life in prison.
Reyes was among 24 individuals charged in this investigation, and 22 have pleaded guilty, including six men who pleaded guilty in January 2014. Those charged are accused of having participated collectively in 14 murders and eight attempted murders from 2002 to 2012 as part of their criminal enterprise. Defendants are presumed innocent unless and until proven guilty at trial.
On Jan. 13, 2014, Salvador Chavez, 34, pleaded guilty before U.S. District Chief Judge Philip P. Simon in the Northern District of Indiana to conspiracy to participate in racketeering activity.
On Jan. 10, 2014, Jason Medina, aka Burns, 30; Edward Raye Serna, 34; and Armando Jose Velasquez, aka Money, age 26, all of East Chicago, Ind., pleaded guilty before Chief Judge Simon. Medina pleaded guilty to conspiracy to participate in racketeering activity; murder resulting from the use and carrying of a firearm during a crime of violence; and attempted murder in aid of racketeering activity, which carries a maximum penalty of 10 years in prison. Medina admitted that he used a firearm to murder Guadalupe Trevino on July 24, 2005, and attempted to murder a victim on June 6, 2011. Sentencing for Medina is scheduled for June 19, 2014. Edward Serna pleaded guilty to conspiracy to participate in racketeering activity and attempted murder in aid of racketeering activity and admitted to his participation in the same attempted murder on June 6, 2011. Sentencing for Edward Serna is also set for June 19, 2014. Velasquez pleaded guilty to conspiracy to participate in racketeering activity, murder resulting from the use and carrying of a firearm during a crime of violence, and attempted murder in aid of racketeering activity. Velasquez admitted he used a firearm on Dec. 3, 2011, when he attempted to murder a victim in aid of racketeering activity. Sentencing for Velasquez is scheduled for June 6, 2014.
On Jan. 3, 2014, Julian Guillermo Serna, aka Big Ju, 24, and Vincent Garza, aka Chente, 22, pleaded guilty before Chief Judge Simon. Julian Serna pleaded guilty to conspiracy to participate in racketeering activity and to murder resulting from the use and carrying of a firearm during a crime of violence. Julian Serna admitted that he used a firearm to murder Mario Soriano on March 25, 2008. Sentencing for Julian Serna is scheduled for July 25, 2014. Garza pleaded guilty to conspiracy to participate in racketeering activity and two counts of homicide in aid of racketeering activity, which each carry a maximum penalty of life in prison. Garza admitted that he participated in the murder of Michael Sessum and Miguel Mejias on June 3, 2008. Sentencing for Garza is scheduled for July 24, 2104.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County High Intensity Drug Trafficking Area. The case is being prosecuted by Assistant United States Attorney David J. Nozick of the United States Attorney’s Office for the Northern District of Indiana and Trial Attorney Bruce Hegyi of the Criminal Division’s Capital Case Section.Alabama Man Indicted in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Deundra Milhouse was indicted for his role in a stolen identity refund fraud crime, Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today after the indictment was unsealed following Milhouse’s arrest.
Milhouse was charged with one count of access device fraud, three counts of wire fraud, four counts of aggravated identity theft and two counts of theft of public funds. According to the indictment, Milhouse filed and caused to be filed false federal income tax returns using the identities of other individuals. He then directed the refunds claimed on those returns to be deposited into accounts linked to prepaid debit cards and into an account at a credit union, from which Milhouse would then withdraw the fraudulently obtained refunds in cash.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Milhouse faces a statutory maximum potential sentence of 20 years in prison for the wire fraud count, a statutory maximum potential sentence of 10 years in prison for each theft of public money count and a mandatory two-year sentence for the aggravated identity theft counts. Milhouse is also subject to possible fines, forfeiture and mandatory restitution if convicted.
This case was investigated by special agents of the Internal Revenue Service - Criminal Investigation and the Elmore County Sheriff’s Office. Trial Attorneys Jason Poole and Michael Boteler of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown and the U.S. Attorney’s Office for the Middle District of Alabama.
Alabama Jury Convicts Current and Former Corrections Officers of Identity Theft and Tax FraudRead the Press Release
Following a week-long trial, a jury in the Middle District of Alabama convicted Bryant Thompson and Quincy Walton of conspiracy to defraud the United States on Jan. 24, 2014, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Thompson, an Alabama corrections officer, was also convicted of seven counts of wire fraud and seven counts of aggravated identity theft, and Walton, a former Alabama corrections officer, was also convicted of one count of aggravated identity theft.
According to evidence introduced at trial, Thompson was assigned to the shift clerk position at an Alabama state prison, which gave him access to the personal identifying information of every inmate in the custody of the Alabama Department of Corrections, past and present. Thompson and Walton, his former co-worker, used information stolen from the databases to file false federal income tax returns in the names and Social Security numbers of inmates. All of the inmates testified that they did not consent to the filing of the tax returns in their names, and many testified that they did not know tax returns were filed in their names until being called as witnesses in this trial.
According to the evidence introduced at trial, the investigation revealed that several internet protocol (IP) addresses were used to file the fraudulent tax returns, including one IP address directly assigned to Thompson’s residence at the time certain tax returns were filed. Circumstantial evidence tied both Thompson and Walton to the other IP addresses.
Also according to evidence introduced at trial, Thompson and Walton directed stolen tax refunds onto prepaid debit cards and requested other refunds in the form of U.S. Treasury Checks. Evidence showed that the cards and checks were mailed to several addresses associated with Thompson and Walton in Montgomery and Prattville, Ala., and that several of the checks were cashed at a local retail store by Walton’s uncle and at a local check casher. During this time, Thompson purchased a new paint job and new rims for his SUV and later purchased a BMW.
At sentencing, Thompson and Walton face a statutory maximum sentence of five years in federal prison for the conspiracy count and a statutory minimum of two years in prison for each aggravated identity theft conviction. Thompson also faces a statutory maximum of 20 years in prison for each wire fraud count. In addition to prison time, Thompson and Walton also face the possibility of fines and restitution to the IRS and other victims. Their sentences will be determined by a federal judge after consideration of the sentencing guidelines and statutory factors.
The case was investigated by IRS-Criminal Investigation and was prosecuted by Trial Attorneys Justin Gelfand, Jason Poole and Alexander Effendi of the Tax Division, with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama.
15th Century Manuscript Repatriated to the Italian GovernmentRead the Press Release
TAMPA, Fla. – The Missal of Ludovico da Romagnano, a 15th century manuscript known as the San Lorenzo, was repatriated to the Italian government Monday by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was stolen nearly 25 years ago from the Capitular Archive of the Archdiocese in Turin, Italy.
A. Lee Bentley III, U.S. Attorney for the Middle District of Florida, Susan McCormick, special agent in charge of HSI Tampa, , and Adolfo Barattolo, the consul general for the Italian Consulate in Miami, participated in the repatriation ceremony.
In 1990, the Archdiocese in Turin hired a team of professors to inventory the church’s ancient archives in preparation for an upcoming exhibit. After that inventory concluded, the Archdiocese determined 263 parchment pages had been cut from a missal, a breviary and an antiphonary. They were all from the same collection. Additionally, a number of rare books were missing from the archives.
Italian authorities conducted an investigation that resulted in the arrest of two individuals – Pier Luigi Cimma and Franca Gatto. These individuals, husband and wife, were two of the professors who participated in the 1990 inventory, which provided them access to the church’s ancient archives. Cimma and Gatto confessed to the authorities that they had stolen several items, most of which they sold to a bookseller in Turin, Italy. The Monza Nucleo dei Carabinieri Tutela Patrimonio Culturale in Italy, a specialized police unit for cultural property, recovered some of the stolen items from Sotheby’s in London.
In April 2011, an officer from the Carabinieri unit discovered a newspaper article from January 2006 online. That article detailed information on an upcoming exhibition at the Florida International Museum called “Ink and Blood.” The exhibit detailed the development of the Bible. The article touched on an illuminated manuscript promised to the Special Collections Department at the University of South Florida Library. The manuscript was from a 15th century Italian missal, which was not only a religious document, but also a common form of art in the Middle Ages.
The Carabinieri called Professor Constanza Montel Segre as an expert witness in June 2011 to confirm the manuscript featured in this newspaper article was the one stolen from the archives. She confirmed with certainty that the 15th century manuscript was the San Lorenzo, page 212 from the Missal of Ludovico da Romagnano.
In March 2012, HSI Tampa received a mutual legal assistance treaty request from the Italian government for assistance in, among other things, recovering the manuscript. With assistance of the University of South Florida, HSI special agents located the manuscript at a residence in St. Petersburg. The individuals in possession of the manuscript were unaware it had been stolen and exported from Italy in violation of Italian law. They had purchased the manuscript in 1997 from an art dealer in Islamorada, and they provided a receipt for the purchase.
With information taken from the sale receipt, HSI special agents located and interviewed the owners of the Islamorada antique book and map store where the St. Petersburg couple purchased the manuscript. The store owners often traveled to England to attend book auctions and other similar events to obtain items for their store. The item was likely purchased in England – where the Italian government had previously located several other stolen Italian artifacts – and transported back to the United States. The store owners did not know the manuscript was stolen.
Through his attorney, the individual in possession of the manuscript voluntarily surrendered the stolen manuscript to the U.S. government in June 2012.
“International cooperation with our law enforcement partners was essential to the success of our investigation,” said Susan McCormick, special agent in charge of HSI Tampa. “Through our partnership with Italian authorities, we were able to track down and authenticate that the manuscript we located in St. Petersburg was indeed the 15th century San Lorenzo, an important piece of Italy’s cultural heritage.”
“The Washington Office of Homeland Security Investigations informed me that a manuscript stolen from the ancient curial archives in Turin, Italy, was recovered through the University of South Florida, who posted its photo on their website, ultimately leading the Homeland Security investigators to its recovery,” said Adolfo Barattolo, consul general for the Italian Consulate in Miami. “The significance of criminal theft of national treasures goes well beyond its monetary and artistic values, as it is a crime against culture itself, which is of great importance to Italy. Italy has more items on the Unesco World Heritage List than any other country, including historic cities, monuments, works of art, sculptures and landscapes. In this context, I am grateful to Tampa Homeland Security Investigations for recovering the artifact and for their prompt and constant contact and courtesy provided to this consulate general in Miami.”
“Today, the United States returns to Italy a stolen manuscript that, 700 years ago, was beautifully hand painted by an unknown Lombardian monk,” said A. Lee Bentley III, acting U.S. attorney. “In doing so, we have faithfully discharged our duties under our Treaty with the Republic of Italy, knowing that we have protected the interests of our friend and ally and protected a small piece of a historical legacy that belongs to all of us.”
HSI plays a leading role in criminal investigations that involve the illegal importation and distribution of cultural property, including the illicit trafficking of cultural property, especially objects that have been reported lost or stolen. The HSI Office of International Affairs, through its 67 attaché offices in 48 countries, works closely with foreign governments to conduct joint investigations, when possible.
HSI specially trained investigators, assigned to both domestic and international offices, partner with governments, agencies and experts to protect cultural antiquities. They also provide cultural property investigative training to law enforcement partners for crimes involving stolen property and art, and how to best enforce the law to recover these items when they emerge in the marketplace.
Since 2007, more than 7,150 artifacts have been returned to 26 countries, including paintings from France, Germany, Poland and Austria, 15th to 18th century manuscripts from Italy and Peru, as well as cultural artifacts from China, Cambodia and Iraq.
Members of the public who have information about suspected stolen cultural property are urged to call the toll-free HSI tip line at 1-866-DHS-2-ICE or complete its online tip form.
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Sunday 26 January 2014
Poplar Man Sentenced in Double StabbingRead the Press Release
The United States Attorney(s Office announced that on Thursday, January 23, 2014, JAMES MICHAEL YOUPEE, 35, of Poplar, was sentenced to 42 months in prison, to be followed by three years of supervised release, by U.S. District Judge Brian Morris for stabbing two people in a Poplar hotel room.
According to an offer of proof filed by Assistant United States Attorney Laura Weiss, in April of 2013, Youpee was staying in a Poplar, Montana, hotel room when he got into an argument with a woman. When she went to another hotel room to use the phone, Youpee followed and forced his way into the room where he stabbed and cut the woman and the man who was living in the room. The male victim suffered life-endangering injuries and was flown to Billings for medical treatment. He has since suffered migraine headaches and pain from his injuries, one of which was a stab wound at the base of his neck.
Youpee was charged with assault with a dangerous weapon and assault resulting in serious bodily injury. Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Youpee will likely serve all of the time imposed by the court. In the federal system, Youpee does have the opportunity to shorten the term of custody by earning credit for (good behavior(, however this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Michael David Bailey Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 22, 2014, before Senior U.S. District Judge Donald W. Molloy, MICHAEL DAVID BAILEY, a 34-year-old resident of Missoula, Montana, was sentenced to a term of:
Prison: 180 months
Special Assessment: $ 100
Restitution: N/A
Supervised Release: 5 years
Bailey was sentenced in connection with his guilty plea to Felon in Possession of a Firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Brendan McCarthy, the government stated it would have proved at trial the following:
On July 14, 2013, the Montana Violent Crime Task Force apprehended the defendant in Billings. When he was apprehended, the defendant was in possession of a Hi-Point Firearms Model C9 9mm Luger handgun, Serial Number P1621713. The defendant had been convicted in October of 2011 for a felony punishable by a term of imprisonment exceeding one year, and he was prohibited from possessing a handgun at the time of this incident.
Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office today announced that during a federal court session in Billings, Montana, on January 23, 2014, before U.S. Magistrate Judge Ostby, the following individual appeared:
- TRAVIS JOHN BELL, a 22-year-old resident of Billings made an initial appearance on a complaint alleging possession with intent to distribute and burglary involving controlled substances. He is currently detained. If formally charged with this offense by indictment, BELL, faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.. Assistant U.S. Attorney Paulette L. Stewart is the prosecutor for the United States. The investigation is being conducted by the Drug Enforcement Administration. PACER Case Reference: 14-08
A complaint is merely a written statement of the essential facts constituting the offense(s) charged. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner.
Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Strong in Great Falls on January 21, 2014 and entering pleas of Not Guilty were:
- TONY BRONSON, a 53-year-old resident of Gary, Indiana appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. If convicted of the most serious offense charged in the indictment, BRONSON faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 13-30
Appearing before U.S. Magistrate Judge Ostby in Billings on January 21, 2014 and entering pleas of Not Guilty were:
- FELIS LUSIANO ROMO, a 32-year-old resident of Sidney appeared on charges of conspiracy to possess methamphetamine with intent to distribute, possession with intent to distribute methamphetamine, and felon in possession of a firearm. If convicted of the most serious offenses charged in the indictment, ROMO faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The investigation was a cooperative effort between the Bureau of Alcohol, Tobacco and Firearms, Drug Enforcement Administration and the Montana Division of Criminal Investigation. PACER Case Reference: 13-113
Appearing before U.S. Magistrate Judge Strong in Great Falls on January 23, 2014 and entering pleas of Not Guilty were:
- DAVID V. CHASER, 39-year-old resident of Wolf Point appeared on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious offense charged in the indictment, CHASER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-05
- AMANDA MAY RICHTER, 28, appeared on charges of acquiring controlled substance by fraud and deception or subterfuge. If convicted of the most serious offense charged in the indictment, RICHTER faces 4 years in prison, $250,000 in fines and 1 year supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 13-18
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Former CIA Officer Convicted of Leaking Classified Information and Obstruction of JusticeRead the Press Release
Printer Friendly Disclosed classified information about a clandestine operational program designed to undermine Iran’s nuclear weapons programALEXANDRIA, Va. – Jeffrey A. Sterling, 47, of O’Fallon, Missouri, was convicted today by a federal jury on charges of disclosing national defense information and obstructing justice.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Attorney General Eric Holder; and FBI Director James Comey made the announcement after the verdict was accepted by U.S. District Judge Leonie M. Brinkema.
“This is a just and appropriate outcome,” said Attorney General Holder. “The defendant’s unauthorized disclosures of classified information compromised operations undertaken in defense of America’s national security. The disclosures placed lives at risk. And they constituted an egregious breach of the public trust by someone who had sworn to uphold it. As this verdict proves, it is possible to fully prosecute unauthorized disclosures that inflict harm upon our national security without interfering with journalists' ability to do their jobs. And I want to thank the investigators, prosecutors, and support staff who made this outcome possible for their relentless efforts in advancing a complex case that spanned multiple years.”
"He violated his sworn duty to protect our nation's secrets and he betrayed our country,” said FBI Director Comey. “The FBI will continue to pursue these cases vigorously."
“Over 10 years ago a disgruntled former CIA employee disclosed extremely sensitive classified information to a reporter who used the information in a book,” said U.S. Attorney Boente. “That classified information was critical to our national defense, and releasing it was illegal and went against Mr. Sterling’s professional commitments to the CIA. Mr. Sterling’s vindictive and careless choices ultimately led us here today and to this unanimous verdict. I would like to thank the trial team and our partners at the FBI’s Washington Field Office and the Central Intelligence Agency for their hard work and commitment to this case.”
Sterling was indicted on Dec. 22, 2010, arrested on Jan 6, 2011, and will be sentenced on April 24, 2015.
According to court records and evidence at trial, Sterling was employed by the CIA from May 1993 to January 2002. From November 1998 through May 2000, he was assigned to a classified clandestine operational program designed to undermine the Iranian nuclear weapons program. He was also the operations officer assigned to handle a human asset associated with that program, a person identified at trial as Merlin. Sterling was reassigned in May 2000, at which time he was no longer authorized to receive or possess classified documents concerning the program or the individual.
In connection with his employment, Sterling, who is a lawyer, signed various security, secrecy and non-disclosure agreements in which he agreed never to disclose classified information to unauthorized persons, acknowledged that classified information was the property of the CIA, and also acknowledged that the unauthorized disclosure of classified information could constitute a criminal offense. These agreements also set forth the proper procedures to follow if Sterling had concerns that the CIA had engaged in any “unlawful or improper” conduct that implicated classified information. These procedures permit such concerns to be addressed while still protecting the classified nature of the information. The media was not an authorized party to receive such classified information.
In August 2000, Sterling pursued administrative and civil actions against the CIA. Evidence at trial showed that Sterling, in retaliation for the CIA’s refusal to settle those actions on terms favorable to him, disclosed information concerning the classified operational program and the human asset to a New York Times reporter working on an unpublished article in early 2003 and a book the reporter published in January 2006. Sterling’s civil and administrative claims were ultimately dismissed by the court.
Evidence demonstrated that in February and March 2003, Sterling made various telephone calls to the reporter’s residence and e-mailed a newspaper article about the weapons capabilities of a certain country that was within Sterling’s previous clandestine operational assignment. While the possible newspaper article containing the classified information Sterling provided was ultimately not published in 2003, evidence showed that Sterling and the reporter remained in touch from December 2003 through November 2005 via telephone and e-mail. In January 2006, the reporter published a book that contained classified information about the program and the human asset.
Evidence at trial showed that Sterling was aware of a grand jury investigation into the matter by June 2006 when he was served a grand jury subpoena for documents relating to the reporter’s book. Nevertheless, between April and July 2006, Sterling deleted the e-mail containing the classified information he had sent from his account in an effort to obstruct the investigation.
This case was investigated by the FBI’s Washington Field Office with assistance in the arrest of the FBI’s St. Louis Field Office. Assistant U.S. Attorneys James L. Trump and Dennis Fitzpatrick, along with Trial Attorney Eric G. Olshan of the Criminal Division’s Public Integrity Section prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:10-cr-485.Tweet
Saturday 25 January 2014
Rockford Physician Arrested on Charge of Healthcare FraudRead the Press Release
ROCKFORD-A local physician whose license was suspended this month was an ested last night on a federal complaint alleging healthcare fraud. Charles S. DeHaan, 59, of Belvidere, IlL, was charged with engaging in a scheme to defraud Medicare. The complaint alleges that as a pali of the scheme, DeHaan operated Housecall Physicians Group of Rockford, S.C., located in Rockford. The charge alleges that DeHaan submitted false claims to Medicare in December 2013.
In supp01t of the charge, the complaint alleges that between 2010 and 2013, DeHaan billed Medicare for medical services that he did not provide to at least five patients. Instead, DeHaan engaged in sexual misconduct with fom of these patients, all women, and offered or provided prescriptions for controlled medications, according to the complaint affidavit.
DeHaan appeared today before United States Magistrate Judge lain D. Johnston who ordered that he be held in custody lmtil a detention hearing is conducted at 2:30p.m. on Tuesday.
The charge of healthcare fraud canies a maximum potential penalty of up to 10 years in prison, a fine of up to $250,000, and full restitution.
The charges were announced by Zacha1y T. Fardon, United States Attomey for the Northem District of Illinois; Robe1t l Holley, Special Agent-in-Charge of the Chicago Office of Federal Bmeau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Depa1tment of Health and Human Services Office of Inspector General ("HHS-OIG")
The federal case was investigated by the FBI and HHS-OIG, with the assistance of the Illinois State Police Medicaid Fraud Control Unit. The government was represented in federal comt by Assistant U.S. Attomey John G. McKenzie.
The public is reminded that a complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to indictment by a federal grand jury and, if indicted, to a fair trial at which the government has the burden of proving his guilt beyond a reasonable doubt.
Complaint
Friday 24 January 2014
Worcester Tax Preparer Pleads Gulity to Preparing False ReturnsRead the Press Release
BOSTON – A Worcester woman pleaded guilty today in U.S. District Court in Worcester to falsifying tax returns.
Jenniffer Cox Elicier, 34, of Worcester pleaded guilty before U.S. District Court Judge Timothy S. Hillman to two counts of aiding and assisting in the preparation of false tax returns. The statutory maximum penalty for the crime is three years in prison, one year of supervised release and a $250,000 fine. Sentencing is scheduled for May 2, 2014.
Elicier operated Cox Elicier Tax in Worcester where she prepared individual federal income tax returns for clients. Elicier inserted false information into her clients= Form 1040 returns, including false Schedule A deductions such as gifts to charity and unreimbursed employee expenses, and thereby generated illegal refunds.
United States Attorney Carmen M. Ortiz and John G. Collins, Special Agent in Charge of Internal Revenue Service=s Criminal Investigation in Boston made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Lori J. Holik of Ortiz=s Economic Crimes Unit.
Winslow Man Charged with Falsifying Mine Safety and Health Administration Training RecordsRead the Press Release
EVANSVILLE -- Joseph H. Hogsett, the United States Attorney, announced today that Oril C. Dent, age 66, of Winslow, has been charged with preparing false safety training certifications required to be maintained by the Federal Mine Safety and Health Act. This follows an investigation by the Department of Labor, Mine Safety and Health Administration.
The information alleges that between October 2011 and April 2012, Dent operated a training business as an underground and surface coal mining safety instructor. Dent allegedly sold Mine Safety and Health Administration annual hazard certificates of training to coal hauling truck drivers who were required to receive annual hazard training, without actually providing any training to the drivers. It is alleged that Dent signed certificates of training for the drivers affirming that safety training was provided when no actual training was provided.
Joseph A. Main, Assistant Secretary of Labor for Mine Safety and Health, stated: "Miner training is a bedrock principle of safe mining practices, and those who falsify training records will be held to account pursuant to the law."
According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Dent faces a maximum of 5 years in prison and a $250,000 fine. Dent had his initial hearing today and was released; no future court dates have been set.
An Information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
West Seneca Man Charged with Receipt of Child PornographyRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Joseph S. Heleniak, 68, of West Seneca, N.Y., was charged by criminal complaint with receipt of child pornography. The charge carries a mandatory minimum sentence of 15 years in prison, a maximum penalty of 40 years, and a fine of $250,000 or both.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was arrested today, January 24, 2014, following the execution of a search warrant at his residence. According to the criminal complaint, on August 30, 2013, Heleniak sent an e-mail containing three image files of child pornography. The images depicted female children under the age of 16 engaging in sexual activities with adult males.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Hugh B. Scott and is being held pending a detention hearing for Tuesday, January 28th at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The arrest is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Brian P. Boetig, Special Agent in Charge.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Week in Review – South BendRead the Press Release
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS (all before Magistrate Judge Christopher A. Nuechterlein):
Kenny Lee, 29, of South Bend, Indiana, pled guilty to the felony offense of unlawful transport of firearms. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration.Sentencing has been set for 4/24/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Dan Warren, 44, of Leesburg, Indiana, pled guilty to the felony offense of theft of government property. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration.Sentencing has been set for 4/25/2014.This case is being prosecuted by Assistant United States Attorney Barbara Brook.
Adam J. Shetler, 33, of Goshen, Indiana pled guilty to the felony offense of theft of government property. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Labor.Sentencing has been set for 4/24/2014.This case is being prosecuted by Assistant United States Attorney Barbara Brook.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Rebecca Turner, 26, of Mishawaka, Indiana was sentenced by District Judge Jon E. DeGuilio to 37 months imprisonment with 3 years supervised release, after pleading guilty to the felony offense of knowingly distributing a mixture or substance containing methamphetamine.According to documents filed in this case, on March 27, 2013, Turner sold a package that she believed contained a controlled substance. The sale was in Elkhart County, Indiana and was conducted with an individual working with law enforcement.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Scott Weaver, 29, of Mishawaka, Indiana, Indiana was sentenced by District Judge Jon E. DeGuilio to 97 months imprisonment with 3 years supervised release, after pleading guilty to the felony offense of knowingly distributing a mixture or substance containing methamphetamine.According to documents filed in this case, on March 27, 2013, Weaver sold a package that he believed contained a controlled substance. Weaver’s wife Rebecca Turner delivered the package for her husband.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Natisha Hillard, 25, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offenses of sale of a child by a parent for production of child pornography and sexual exploitation and permitting a child by a parent to participate in the production of child pornography.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation, the Indiana State Police, the Gary Police Department and the Michigan City Police Department.This case is being prosecuted by Assistant United States Attorney Jill Koster.
Keyosha Toney, 26, of East Chicago, Indiana, pled guilty before Magistrate Judge John E. Martin to the felony offense of making false statements in connection with the purchase of a firearm.Magistrate Martin is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Octavio Casas-Garcia, 45, of Hammond, Indiana, pled guilty before Magistrate Judge John Martin to the felony offense of illegal reentry after having been convicted of a felony.This charge was filed as a result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case is being prosecuted by Assistant United States Attorney Philip Benson.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Ronald Parks, 61, address unknown/homeless, was sentenced by Senior District Judge Rudy Lozano to 262 months imprisonment after pleading guilty to kidnapping. According to documents filed in this case, in March 2012 the victim stopped for change for a $20 bill at a Marathon gas station located in Hammond, Indiana. She was getting back into her car when Parks forced her into her car through the driver’s door.Parks eventually stopped the car, took her cell phone and fled on foot.In a separate matter, Parks was sentenced to 240 months imprisonment, to run concurrently with the kidnapping sentence, after pleading guilty to bank robbery.According to documents filed in this case, in April, 2012 Parks robbed the Citizen’s Bank in Hammond, Indiana using a note that indicated he had a gun.The teller indicated that Parks had flashed a black gun that was in his waistband.This teller later identified Parks in a photo lineup. These cases were the result of an investigation by the Federal Bureau of Investigation and the Hammond Police Department.These cases were prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION:
Kameron Kutzli, 23, of Dunkirk, Indiana was sentenced by District Judge Theresa L. Springmann to 57 months imprisonment with 2 years supervised release, after pleading guilty to the felony offense of retaliating against a witness, victim, or an informant.According to documents filed in this case, Kutzli along with several others, including Tyson Allen (a co-defendant in United States v. Sallee, et al.), assaulted a fellow inmate in Wells County jail.The motive for the attack was retaliation against an inmate who was perceived as a “snitch” and a cooperator with law enforcement. Kutzli, along with several others, threatened the assaulted inmate with further attacks should that perceived cooperation continue.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Walkersville Man Sentenced to 9 Years in Prison in $9.2 Million Investment SchemeRead the Press Release
Caused Approximately $4 Million in Losses to Investors
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Larry Michael Parrish, a/k/a Michael Parrish, age 49, of Walkersville, Maryland today to nine years in prison, followed by three years of supervised release, for wire fraud arising from an investment scheme in which investors lost approximately $4 million by relying on Parrish’s false representations concerning his company IV Capital, Ltd. Judge Motz also ordered Parrish to pay restitution of $4 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, Parrish operated IV Capital, Ltd., which from November 2005 to October 2009, he described to potential investors as an investment and trading company. Parrish made a number of false representations to encourage potential investors to make investments with IV Capital. For example, Parrish falsely represented that IV Capital: traded stocks, bonds, currencies precious metals and other instruments on international exchanges; had $20 million or more under management; had established a minimum gross profit margin each month of 5%, which would be equally divided between the company and its individual investors; and employed a number of other traders and staff. In fact, the company had no employees aside from Parrish and one other trader hired as an independent contractor.
Parrish also falsely represented that: he and several partners had invested substantial funds of their own with the company; that all invested funds would be deposited in an escrow account and used solely to secure a line of credit from a financial institution, which would provide the actual working capital for IV Capital’s trading activities; and that IV Capital’s management of its accounts would be evaluated by top licensed professional third parties. In fact, Parrish had no partners and had not invested any of his own funds with IV Capital. The investors’ funds were directed to an offshore bank in Bermuda where they were not kept in an escrow account, but were instead used to generate funds for risky and highly unsuccessful trading activity, to make the “profit” payments of roughly 2.5% monthly back to the investors, and to supply funds for the personal use of Parrish and his family.
Out of the approximately $9.2 million in investor funds that were placed with Parrish and IV Capital between February 2006 and October 2009, Parrish allocated approximately $2.938 million to trading activity conducted by himself and the other trader, almost all of which was lost in making risky and unsuccessful investments in options and futures contracts. Another $5.2 million was used to make “profit” payments to IV Capital investors, and more than $1 million was used by Parrish for personal expenses, including purchases of clothing, furniture, electronics and other items, paying bills for rent, food and utilities, as well as paying for entertainment and vacation expenses, including a golf outing for himself and a number of friends in May 2008, and the purchase of a 2009 Harley Davidson FXDF motorcycle in September 2008.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI for its work in the investigation and praised Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case. The United States Securities & Exchange Commission (SEC) also conducted a civil securities fraud investigation of Parrish, and obtained a default judgment against him in a civil action filed in federal court in Denver, Colorado in September 2012.Violent Armed Bank Robber Exiled to 20 Years in PrisonRead the Press Release
Previously Shot a Person to Death and Committed Multiple Robberies;
Associated With the Black Guerilla FamilyBaltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Maurice Colbert, age 60, of Baltimore, Maryland, today to 20 years in prison followed by five years of supervised release for armed robbery, forced accompaniment and using a gun during the robbery. Judge Blake also ordered Colbert to pay restitution of $13,940.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore County State’s Attorney Scott Shellenberger; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at his four day trial, on November 7, 2011, Colbert and another man stormed into the 1st Mariner Bank located at 176 Carroll Island Road in Middle River, Maryland, both armed with handguns. Colbert’s accomplice jumped on the counter next to the teller station. One of the bank employees, an assistant manager, collapsed on the floor in fear. Colbert ordered a bank employee to open a vault and ATM vaults. The employee told him she could not open the vaults because she only had the keys, not the code.
Colbert then opened three teller drawers and removed all of the money, including three dye packs as well as bait money. At times, Colbert pressed the gun into the employee’s back, and held her arm as he walked her around the bank with the gun in his other hand.
Meanwhile, the accomplice forced three tellers, the assistant manager and two customers, one of whom was elderly, into a small room used by customers to review in privacy the contents of safety deposit boxes. While packing them tightly into the room, the accomplice grabbed a teller by the neck, and grabbed another teller’s hair while placing his gun to the back of her head. He then tied most of them up tightly with zip ties. Just prior to closing the door, one of the robbers threw a liquid on the wall, the smell of which burned their noses and eyes. They fled with $31,153, although $17,213 was later recovered from the bank’s parking lot.
Shortly thereafter, the police were called and responded. An employee from a restaurant next door told a police officer that he had seen two men inside a vehicle with a sedan service company written on its side, parked in the lot by the bank. An FBI agent went to the location of the sedan service company in Baltimore and learned from the business owners that Colbert had used the vehicle that day. After patrolling the immediate area for a short while, the agent returned to the business and saw the vehicle parked outside the business location. Law enforcement saw red stains on the carpet of the vehicle, consistent with the red dye used in bank dye packs.
Colbert was found inside the sedan service company’s building and was taken to police headquarters. The sedan service owner showed police the money bills Colbert had given her, which were also stained red. Dye stains used by banks were also found on Colbert’s clothing and money in his pocket.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, ATF and Baltimore County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Judson T. Mihok and Gregory R. Bockin, who prosecuted the case.
United States Attorney for the Southern District of Florida Announces Guilty Plea of Colombian Narcotics KingpinRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the guilty plea of Diego Perez Henao, a/k/a “Diego Rastrojo,” 42. Perez Henao, a Colombian national and a U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC)-designated Specially Designated Narcotics Trafficker (SDNT), pled guilty today to the one-count indictment charging him with participating in a decades-long conspiracy to manufacture and distribute five or more kilograms of cocaine knowing that the cocaine would be unlawfully imported into the United States. Perez Henao was extradited from Colombia in August 2013 and has been in custody since being captured in Venezuela on June 3, 2012.
At the plea hearing held before U.S. District Judge Patricia A. Seitz, Perez Henao acknowledged that from 1994 until the January 2008 killing of his primary patron, North Valley Cartel head Wilber Varela, Perez Henao participated in the production and/or shipment of at least 81,100 kilograms of cocaine, and then continued the shipment of additional thousands of kilograms of cocaine after Varela’s killing. He also acknowledged that his co-conspirators used a variety of modes of transportation, including airplanes, trucks and semi-submersibles, to transport the cocaine to Mexican cartels who ultimately imported the cocaine into the United States. Perez Henao also agreed that he had controlled dozens of heavily-armed workers in his organization and oversaw the large-scale manufacture and distribution of cocaine. Perez Henao, who faces a mandatory minimum sentence of ten years and a maximum sentence of any term of years, is scheduled to be sentenced on June 5, 2014.
U.S. Attorney Wifredo A. Ferrer stated, “Diego Perez Henao was the kingpin of a prolific drug cartel responsible for the production and shipment of over 80,000 kilograms of cocaine into the United States. The conviction of Perez Henao concludes one of the most significant chapters in the history of the Colombian drug trade. With the continued collaboration and assistance of our law enforcement partners, here and abroad, we will continue our efforts to bring the most powerful and prolific drug lords to justice.”
“Diego Perez-Henao, a/k/a Diego Rastrojo, was one of the largest Kingpins to be extradited from Colombia,” said DEA Special Agent in Charge Mark R. Trouville. “He was so well known in Colombia, that emerging Bandas Criminales groups adopted the name “Rastrojos” to identify themselves as significant drug trafficking gangs in various regions within Colombia. With the assistance of our Colombian counterparts, the DEA will continue to seek out, arrest, and extradite leaders of the remaining Rastrojo organizations to face justice.”
“The FBI continues to work with our law enforcement partners to bring to justice international narco-traffickers who infiltrate our borders and poison our society with dangerous drugs,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami.
The indictment of Perez Henao is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) led by DEA and FBI. 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.
Mr. Ferrer commends the outstanding investigative efforts of DEA, FBI and their Colombian law enforcement partners. The case is being prosecuted by Assistant U.S. Attorney Adam Fels.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Court of Appeals Affirms Conviction and Sentence of Khalid AldawsariRead the Press Release
Saudi Student Was Sentenced to Life in Prison for
Attempted Use of Weapon of Mass DestructionDALLAS — The U.S. Court of Appeals for the Fifth Circuit in New Orleans, Louisiana, issued a nine-page published opinion yesterday affirming the conviction and sentence of Khalid Ali-M Aldawsari, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Aldawsari was convicted on June 27, 2012, on an indictment charging one count of attempted use of a weapon of mass destruction in connection with his purchase of chemicals and equipment necessary to make an improvised explosive device (IED) and his research of potential U.S. targets, including persons and infrastructure. He was lawfully in the U.S. on a student visa and enrolled at South Plains College, near Lubbock, Texas.
In its opinion, the Court rejected each of Aldawsari’s arguments, holding that (1) the district court properly denied his motion to suppress evidence gathered pursuant to the Foreign Intelligence Surveillance Act; (2) the district court correctly instructed the jury on the crime of attempt; and (3) Aldawsari’s sentence is reasonable. The opinion was released less than two months after the three-judge panel heard oral argument in the case.
“The successful resolution of this case would not have been possible without the tireless efforts of many dedicated public servants,” said U.S. Attorney Saldaña. “I commend their efforts.”
Assistant U.S. Attorney Matthew J. Kacsmaryk was the lead appellate counsel, and he was assisted by Senior Department of Justice Appellate Counsel John F. De Pue. The district court case was investigated by the FBI’s Joint Terrorism Task Force, which includes many federal, state and local partners, with assistance from the Lubbock Police Department and the Texas Tech Police Department. The trial prosecution was handled by Assistant U.S. Attorneys Jeffrey R. Haag, Denise Williams, and Matthew J. Kacsmaryk and Trial Attorney David Cora from the Counterterrorism Section of the Justice Department’s National Security Division.
Two Sentenced for Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – Erica Porter and Obadiah Herring, both of Jackson, were sentenced on January 23, 2014 by U.S. District Judge Dan Jordan in connection with a tax refund identity theft conspiracy, announced U.S. Attorney Gregory K. Davis and Gabriel Grchan, Special Agent in Charge, Internal Revenus Service Criminal Investigation.
Erica Porter was sentenced to 10 months in federal prison for conspiracy to defraud the United States, and 24 months for aggravated ID theft, for a total of 34 months in federal prison followed by three years of supervised release. She was also ordered to pay restitution in the amount of $49,127 and forfeit a total of $49,127.
Obadiah Herring was sentenced to 18 months in prison followed by three years of supervised release for conspiracy to defraud the United States. He was ordered to pay restitution in the amount of $49,127, and forfeit a total of $49,127.
“Identity theft is a serious crime which exploits some of the most vulnerable members of our community. When combined with tax refund fraud, it threatens the financial security of our citizens,” said Gregory Davis, U.S. Attorney for the Southern District of Mississippi. “This office will continue to work with the Internal Revenue Service, U.S. Secret Service, and U.S. Postal Inspection Service to prosecute those who cause harm to the U.S. taxpayers and those persons whose identities are is stolen.”
“As we approach tax filing season, those who might consider preparing false tax returns using stolen identities should be aware of the extremely negative consequences as evidenced today,” said Gabriel L. Grchan, Special Agent in Charge of the New Orleans Field Office. “Today’s sentencing of Erica Porter and Obadiah Herring again emphasizes that IRS-CI, and our law enforcement partners, will continue to aggressively pursue and hold identity thieves accountable for their attempts to defraud America’s tax system."
Stolen identity refund fraud occurs when a person, without permission, uses a legitimate
taxpayer’s identity to fraudulently file a tax return and claim a refund. This tax fraud tops the
Internal Revenue Service’s list Dirty Dozen Tax Scams for 2013.*
If you believe that you or someone you know may have had a tax return filed under your
name as the result of identity theft, please visit www.IRS.gov, call 1-800-829-1040 or visit your
local IRS office for further information.
This case was investigated by IRS Criminal Investigation and the U.S. Secret Service and
prosecuted by Assistant U.S. Attorney Scott Gilbert.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
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Two Adult Day Care Center Operators Sentenced in Manhattan Federal Court for Conspiring to Bribe New York State Assemblyman Eric StevensonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that IGOR TSIMERMAN and ROSTISLAV BELYANSKY (“SLAVA”) were sentenced today in Manhattan federal court to 24 and 18 months in prison, respectively, for conspiring to pay approximately $20,000 in bribes to New York State Assemblyman Eric Stevenson in exchange for Stevenson’s official acts, including drafting, proposing, and agreeing to enact legislation that favored the bribers’ business interests. TSIMERMAN was also sentenced for conspiring to bribe former New York State Assembly member Nelson Castro. TSIMERMAN and SLAVA pleaded guilty in September 2013 before U.S. District Judge William H. Pauley III, and were both sentenced today by Judge Pauley.
Manhattan U.S. Attorney Preet Bharara said: “Igor Tsimerman and Rostislav Belyansky thought they could buy legislation to suit their business needs, but as these sentences show, the bribes they paid to Eric Stevenson only bought them a trip to federal prison.”
According to the Complaint and the Indictment filed in Manhattan federal court, and statements made in public proceedings:
Stevenson has served as a member of the New York State Assembly since 2011 representing District 79, which includes various Bronx neighborhoods. The four businessmen –TSIMERMAN, SLAVA, Belyansky, and Binman – are individuals who, during 2012 and 2013, were seeking to open and manage adult day care centers in the Bronx, New York, including a center on Westchester Avenue (the “Westchester Avenue Center”), within Stevenson’s Assembly District, and a second center on Jerome Avenue (the “Jerome Avenue Center”), within then-Assemblyman Castro’s Assembly District. During that time period, they paid multiple bribes to Stevenson in connection with efforts to open and operate both centers.
For example, at a meeting on July 23, 2012, Stevenson, Belyansky, and TSIMERMAN discussed the opening of the Westchester Avenue Center. During this meeting, Stevenson said that on July 26, 2012, he was “having a night [event]” for “my reelection” and that he needed “support and help like everyone else.” Subsequently, on July 25, 2012, SLAVA provided a cooperating witness (the “CW”) with a check for $2,000 made out to Stevenson’s political action committee, which the CW provided to Stevenson. Stevenson did not disclose this check as a campaign contribution as required by New York State law.
At a September 7, 2012, meeting at a Bronx steakhouse, SLAVA and Belyansky offered to pay Stevenson $10,000 in exchange for calling Con Edison to expedite the installation of a gas line and assisting with obtaining a Certificate of Occupancy from the New York City Buildings Department at the Jerome Avenue Center, and for assistance recruiting senior citizens to attend the Westchester Avenue Center. Stevenson agreed, but when Belyansky attempted to hand him the $10,000 in an envelope, Stevenson indicated that he was concerned that there might be surveillance cameras in the restaurant, so he waited until he was outside of the restaurant to take the cash bribe. On September 18, 2012, Stevenson gave the CW a $1,500 cut of the $10,000 bribe in exchange for the CW’s assistance, and promised to pay the CW an additional $500.
On December 27, 2012, the CW met with Stevenson and showed Stevenson a copy of an email dated December 26, 2012, sent from the contractor for the Jerome Avenue Center to SLAVA and TSIMERMAN. In the email, the contractor stated that “[i]t is urgent . . . that we call the State Senator Eric Stevenson so that he can call the building department at once and ask them to have this application reviewed” in connection with getting “a permit to install the gas lines into the building.” After reviewing this email, Stevenson stated, “he’s not a smart guy . . . he’s not too bright, this guy” because “he put this in writing . . . why he got to put my name in it? . . . He shouldn’t have said that.” Stevenson said they needed to avoid creating a “paper trail.”
During that meeting, the CW and Stevenson also discussed the possibility of Stevenson introducing legislation that would establish a temporary moratorium on the construction and/or opening of new adult day care centers (the “Moratorium Legislation”), which would have the effect of eliminating competition with the Jerome Avenue Center and the Westchester Avenue Center, thereby substantially increasing the profits earned by those two centers. Stevenson told the CW: “All you gotta do is tell me what you want in the bill, and the bill drafter will put it together…I just need you to tell me what they [the co-defendants] want; we prepare the bill . . . . You can write down the language, basically what you want.” Stevenson then asked: “Are Igor [Belyansky] and them putting together a nice little package [of money] for me, huh?” He said: “I got my inauguration I gotta take care of, I got a lot of sh*t man.” Stevenson then said to the CW, in reference to the legislation, “I’m telling you, it’s done. It’s no problem.” Subsequently, the CW met with TSIMERMAN and Belyansky. TSIMERMAN said that as a result of the Moratorium Legislation, the value of their adult day care centers was “gonna skyrocket. . . . As long as [there’s a] moratorium, I can guarantee you at least a triple [in profits].”
On January 1, 2013, the CW and Stevenson spoke on the telephone and Stevenson referred to “Igor” [Belyansky] as “Santa,” in reference to the money he expected to receive. In a subsequent meeting on the same day in the CW’s car, Stevenson sought assurances that “Igor” [Belyansky] was going to “bless everything,” meaning pay Stevenson. He added that: “I got the inauguration, I want a blessing [payment] in place, man.” Two days later, the CW gave Belyansky and SLAVA a copy of a document titled “Proposed Adult Day Care Center Bill,” which contained a proposal for the Moratorium Legislation. On January 7, 2013, the CW provided the same proposal to Stevenson. Later that day, TSIMERMAN provided Stevenson with another copy of the proposal containing TSIMERMAN’s notes. On January 9, 2013, the CW told Belyansky that Stevenson wanted $10,000 for the Moratorium Legislation, with $5,000 paid up front. Two days later, on January 11, 2013, at the Westchester Avenue Center, SLAVA, TSIMERMAN, Belyansky, and Binman gave the CW $5,000 cash. The CW then left the Westchester Avenue Center with the envelope of money and got in his car where Stevenson joined him, at which time the CW gave the envelope of money to Stevenson, after taking out his $500 cut.
On January 27, 2013, Stevenson met with the CW and told the CW that he was concerned that TSIMERMAN might be cooperating with law enforcement officials and recording their conversations. Stevenson expressed a concern that if “they bring me down… somebody’s going to the cemetery.”
Stevenson had a draft of the Moratorium Legislation prepared by January 31, 2013, which he showed the CW at a meeting in his office and which was consistent with the bullet points prepared by the CW and SLAVA, TSIMERMAN, Belyansky, and Binman. On February 11, 2013, Stevenson told the CW: “We got the bill [the Moratorium Legislation] back today . . . [t]he bill is done now, it’s going out to the members . . . to the committee and . . . we’re gonna . . . try to push it to get it to the floor.” On February 16, in a hotel room in Albany, SLAVA gave $5,000 in cash to the CW, which the CW gave to Stevenson after taking a $500 cut. While the CW took out his $500 cut, Stevenson walked into the bathroom of the CW’s room and left the door open so that he could receive the $4,500 cash in the bathroom.
Stevenson introduced and sponsored Bill Number A05139, which places a temporary moratorium on the construction and/or opening of new adult day care centers within New York City on February 20, 2013, and it is currently pending before the New York State Assembly’s Committee on Aging.
Two days later, in a meeting between the CW and TSIMERMAN, Belyansky, and Binman, Belyansky said that the legislation would double the value of his share in the Jerome Avenue and Westchester Avenue Centers from approximately $350,000 to $700,000.
In addition to prison, TSIMERMAN, 47, of Staten Island, New York, was sentenced to three years of supervised release, and ordered to pay a $10,000 fine and a 200 special assessment fee. SLAVA, 42, of Bronx, New York, was also sentenced to three years of supervised release, and ordered to pay a $2,000 fine and a $100 special assessment fee.
Stevenson was convicted on January 13, 2014, of conspiring to commit honest services wire fraud, conspiring to commit federal programs bribery and to violate the Travel Act, committing federal programs bribery, and extortion under color of official right following a six-day jury trial before U.S. District Judge Loretta A. Preska. Stevenson is scheduled to be sentenced by Judge Preska on May 20, 2014.
Belyansky and Binman pled guilty in September 2013 to conspiring to commit honest services wire fraud in connection with their payment of bribes to Stevenson before Judge Pauley. They are scheduled to be sentenced by Judge Pauley on February 6, 2014.
Mr. Bharara praised the work of the investigators from the United States Attorney’s Office for the Southern District of New York and the District Attorney’s Office for Bronx County.
This prosecution is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Paul M. Krieger and Brian A. Jacobs and Special Assistant U.S. Attorney Pishoy Yacoub of the Bronx County District Attorney’s Office are in charge of the prosecution.
Tohono O’odham Man Sentenced to over 2 Years Prison for Stabbing of A Sells ManRead the Press Release
TUCSON, Ariz. –On Jan. 24, 2014, Darrell Scott Ortega, 26, of Tucson, Ariz., a member of the Tohono O’odham Nation, was sentenced by U.S. District Court Judge Cindy K. Jorgenson to 28 months in federal prison followed by three years of supervised release. Ortega pled guilty on July 23, 2013, to assault resulting in serious bodily injury.
This case involved the Nov. 5, 2011, stabbing of a Sells man, also a member of the Tohono O’odham Nation. The victim was at a social gathering at a residence in the Village of Kaka, when Ortega stabbed the victim in the abdomen.The investigation in this case was conducted by the Federal Bureau of Investigation and the Tohono O’odham Nation Police Department. The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-12-1486-TUC-CKJ
RELEASE NUMBER: 2014-005_OrtegaThree Men Arrested for Trafficking Heroin and Methamphetamine to Rocky Ford, ColoradoRead the Press Release
DENVER – Three men were arrested yesterday following a controlled delivery of heroin and methamphetamine to a house in Rocky Ford, Colorado, the U.S. Attorney’s Office and Southern Colorado law enforcement announced. The three men who were arrested appeared this afternoon in U.S. District Court in Denver, where they were advised of their rights and the charges pending against them. All three were remanded pending a detention and preliminary hearing, which is scheduled for Wednesday, January 29, 2014 at 10:00 a.m. before U.S. Magistrate Judge Boyd N. Boland.
Arrested by DEA agents and task force officers were Raymond Abeyta, age 34, Frank Gonzales, age 41, and Eric Garcia, Jr., age 29, all of Rocky Ford, Colorado. The arrest was based on a Criminal Complaint signed by a U.S. Magistrate Judge and obtained today.
According to the affidavit in support of the Criminal Complaint, on Wednesday, January 22, 2014, Arizona Department of Public Safety stopped a 2009 Nissan Maxima as it was traveling east on I-40 in Flagstaff, Arizona. A search of the vehicle was initiated. Two packages of heroin, weighing approximately 4.75 pounds were found in the padding of the rear seat back rests. Officers also recovered 3 pounds of methamphetamine which was concealed behind the glove compartment. Authorities learned that the drugs were destined for an address in Rocky Ford, Colorado. The driver had made one previous delivery of drugs three weeks prior.
The driver of the Nissan cooperated with authorities. The DEA Flagstaff Post of Duty worked with the DEA Colorado Springs Resident Office to establish a controlled delivery of the heroin and methamphetamine. On Thursday, January 23rd, 2014, the driver delivered the drugs to the Rocky Ford address. Immediately after the delivery was made, a federal search warrant was executed and three defendants were arrested. Seized from the residence was the heroin and methamphetamine, as well as approximately $100,000 in U.S. currency and a money counter.
All three defendants face one count of conspiracy to possess heroin, a Schedule I Controlled Substance, with intent to distribute over 1 kilogram. If convicted on that count, each defendant faces not less than 10 years, and not more than life in federal prison, as well as up to a $10,000,000 fine. The three defendants also face one count of conspiracy to possess methamphetamine, a Schedule II Controlled Substance, with the intent to distribute 500 grams or more. If convicted, all three face not less than 10 years, and not more than life in federal prison, as well as up to a $10,000,000 fine.
This investigation is being conducted by the DEA Colorado Springs Resident Office, the DEA Flagstaff Post of Duty, the Arizona Department of Public Safety, the Rocky Ford Police Department, and the Otero County Sheriff’s Office. The Southern Colorado Drug Task Force, which participated in this investigation, includes: DEA, FBI, and HSI/ICE, Colorado Springs Police Department, Pueblo Police Department, El Paso County Sheriff’s Office, Pueblo County Sheriff’s Office, Colorado State Patrol, and HIDTA.
The defendants are being prosecuted by Assistant U.S. Attorney Bradley Giles.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury.
The charges in the Complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
Tennessee and Virginia Orthopedic Clinics to Pay $1.85 Million to Settle <br /> Allegations of Billing Medicare for Reimported ProductsRead the Press Release
Two orthopedic clinics will pay a combined $1.85 million to resolve state and federal False Claims Act allegations that they knowingly billed state and federal health care programs for reimported osteoarthritis medications, known as viscosupplements, the Department of Justice announced today. Tennessee Orthopaedic Clinics P.C., headquartered in Knoxville, Tenn., will pay $1.3 million, and Appalachian Orthopaedic Clinics P.C., headquartered in Kingsport, Tenn., will pay $550,000.“The Department of Justice will not tolerate the conduct of companies that impermissibly shift risks onto patients in order to increase their own profits,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The department is committed to maintaining the integrity of the health care system, ensuring that patients receive drugs and devices that are safe and effective and taking action against companies that take chances with the health of consumers so as to improve their own bottom lines.”
Viscosupplements, such as Synvisc and Orthovisc, are injections approved by the Food and Drug Administration for the treatment of osteoarthritis pain in the knee. Viscosupplements are reimbursed by Medicare, Medicaid and other federal health care programs at a set rate based on the average sales price of the domestic product. The government contended that the clinics knowingly purchased deeply discounted viscosupplements that were reimported from foreign countries and billed them to state and federal health care programs in order to profit from the reimbursement system, when such reimported viscosupplements were not reimbursable by those programs. Allegedly, the reimported product included labeling in foreign languages and in English for additional uses not approved in the United States, which demonstrated that the product was reimported. Moreover, because the product was reimported, the government alleged there was no manufacturer assurance that it had not been tampered with or that it was stored appropriately.
“This scheme is yet another example of illegal actions by health care providers to profit from drugs imported into the United States,” said U.S. Attorney for the Eastern District of Tennessee William C. Killian. “Medicare and FDA requirements are designed to prevent potential harm to patients. Noncompliance with the law to increase profit at the risk of patients will be pursued by the Department of Justice.”
“Attempts to increase profits by circumventing the law will not be tolerated,” said Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta Derrick L. Jackson. “Health care providers buying cut-rate, cheap drugs from foreign sources will end up paying a steep price.”
The allegations resolved by the settlement were first raised in a lawsuit filed against the clinics under the qui tam, or whistleblower, provisions of the False Claims Act by Douglas Estey, a physician’s assistant who was occasionally paid by Genzyme Corp. to speak to medical providers about the use of Synvisc. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. Estey will receive $323,750.
The government’s investigation was a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Eastern District of Tennessee, the Department of Health and Human Services Office of Inspector General and Office of General Counsel, the Food and Drug Administration Office of Criminal Investigations and Office of Chief Counsel, the Federal Bureau of Investigation and the Tennessee Bureau of Investigation.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17.1 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case is captioned United States ex rel. Estey v. Tennessee Orthopaedic Clinics P.C., Appalachian Orthopaedic Associates P.C. and Appalachian Orthopaedic Partners LLC, Docket No. 3:12-cv-85 Varlan/Guyton. The claims settled by these agreements are allegations only; there have been no determinations of liability.
Tennessee and Appalachian Orthopedic Clinics to Pay Combined $1.85 Million to Settle False Claims Act Allegations That They Billed Medicare for Reimported ProductsRead the Press Release
KNOXVILLE, Tenn. – Two orthopedic clinics have agreed to pay a combined $1.85 million to resolve state and federal False Claims Act allegations that they knowingly billed state and federal health care programs for reimported osteoarthritis medications, known as viscosupplements. Tennessee Orthopaedic Clinics, P.C., headquartered in Knoxville, Tennessee, will pay $1.3 million and Appalachian Orthopaedic Clinics, P.C., headquartered in Kingsport, Tennessee, will pay $550,000.
Viscosupplements, such as Synvisc® and Orthovisc®, are injections approved by the Food and Drug Administration for the treatment of osteoarthritis pain in the knee. Viscosupplements are reimbursed by Medicare, Medicaid, and other federal health care programs at a set rate based on the average sales price of the domestic product. The government contended that the clinics knowingly purchased deeply discounted viscosupplements that were reimported from foreign countries and billed them to state and federal health care programs in order to profit from the reimbursement system, when such reimported viscosupplements were not reimbursable by those programs. Allegedly, the reimported product included labeling in foreign languages and in English for additional uses not approved in the United States, which demonstrated that the product was reimported. Moreover, because the product was reimported, the government alleged there was no manufacturer assurance that it had not been tampered with or that it was stored appropriately.
As U.S. Attorney Bill Killian explained, “This scheme is yet another example of illegal actions by healthcare providers to profit from drugs imported into the United States. Medicare and FDA requirements are designed to prevent potential harm to patients. Noncompliance with the law to increase profit at the risk of patients will be pursued by the Department of Justice.”
“Attempts to increase profits by circumventing the law will not be tolerated,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Health care providers buying cut-rate, cheap drugs from foreign sources will end up paying a steep price.”
The allegations resolved by the settlement were first raised in a lawsuit filed against the clinics under the qui tam, or whistleblower, provisions of the False Claims Act by Douglas Estey who was a speaker for Genzyme Corporation, which manufactured Synvisc and sold it in the United States. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. Mr. Estey will receive $323,750.
Mr. Killian further noted that this settlement resulted from a comprehensive investigation which began as a result of a qui tam or whistleblower complaint filed in 2012. The investigative team whose efforts resulted in this settlement was comprised of representatives from the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Office of General Counsel (OGC), the Food and Drug Administration (FDA) Office of Criminal Investigations (OCI) and Office of Chief Counsel (OCC), the Federal Bureau of Investigation (FBI), and the Tennessee Bureau of Investigation (TBI), coordinated by the U.S. Department of Justice (DOJ) Civil Division Fraud Section and the Civil Division of the U.S. Attorney’s Office for the Eastern District of Tennessee. U.S. Attorney Killian commended the cooperative efforts of the agencies which participated in this complex investigation, in particular, lead HHS-OIG Special Agent Tony Maffei, FBI Special Agent Joelle Olszewski, TBI Special Agent Denise Woodby, FBI Forensic Accountant LeAnn Lanz, FDA OCI Special Agents Alex Alvarado and Ron Houston, FDA OCC attorney Kelsey Schaefer, HHS-OIG attorney Maame Gyamfi, HHS OGC attorneys Eden Heard and Jessica Bowman, Assistant Tennessee Attorney General Eli Swiney, Assistant Virginia Attorney General Adele Nieburg, DOJ Trial Counsel Doug Rosenthal, and Assistant U.S. Attorney Suzanne Bauknight.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services, in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $12.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases in 2013 alone exceeded $3.8 billion. False Claims Act recoveries by the United States Attorney’s Office for the Eastern District of Tennessee alone during the period since January 2009 exceed $100 million.
Solon Couple Indicted for $750,000 Health Care FraudRead the Press Release
A Solon couple was indicted on nine counts of health care fraud for defrauding Medicaid out of approximately $750,000 by providing ambulette rides to patients who did not use or need wheelchairs, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.
Antwain Hamilton and Temeca Hamilton, both 37, were arrested this morning. They were indicted, along with the company they owned, Star Medical Transportation, located at 16004 Broadway Ave., Maple Heights, Ohio. Temeca Hamilton faces an additional count of witness tampering.
“These defendants are charged with stealing from a program designed to help those who cannot get themselves to doctors’ appointments,” Dettelbach said. “We will continue to prosecute those who abuse government programs for their own personal gain.”
"These individuals billed Medicaid for hundreds of thousands of dollars’ worth of services that they never provided and got paid for it in taxpayer dollars,” said Attorney General DeWine. “This type of fraud does not go unnoticed, and we will get that funding back so that it can go towards people who need healthcare services in Ohio.”
Ambulette services contract with the Ohio Medicaid programs to transport patients in vehicles known as ambulettes. An ambulette is a specially equipped van designed for wheelchair passengers. Medicaid pays ambulette operators for driving Medicaid patients to and from Medicaid-covered appointments, so long as the patient rides in a wheelchair, a medical doctor certifies the need for the wheelchair and ambulette and the ambulette itself otherwise meets safety specifications.
The defendants are charged with defrauding Medicaid out of approximately $750,000 between 2010 and 2013 by charging Medicaid for rides of patients who did not use or need wheelchairs, billing Medicaid for ambulette attendants when no such attendants were used and billing Medicaid for transports that never occurred.
The last count of the indictment alleges Temeca Hamilton tampered with a witness, a Medicaid recipient, by asking the witness to tell law enforcement that she had been receiving transportation services from Star Transport for the last five years, which is false.
This indictment is the result of an investigation by the Ohio Attorney General’s Medicaid Fraud Control Unit and the Office of the Inspector General, United States Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer and Special Assistant U.S. Attorney Constance Nearhood, an Assistant Attorney General for the State of Ohio.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sewickley Woman Sentenced to 10 Years in Federal Prison for Mortgage Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Sewickley, Pa., has been sentenced in federal court to 10 years imprisonment on her conviction of wire fraud and money laundering conspiracy in connection with a mortgage fraud scheme, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Denise Bonfilio, 56.
According to information presented to the court, Bonfilio participated in a mortgage fraud scheme that included presenting to lending institutions fraudulent loan applications that overstated the borrowers’ financial condition in connection with loans collateralized by properties located in the Sewickley and Fox Chapel sections of Allegheny County, Pa.
Prior to imposing sentence, Judge Conti stated that it was a serious offense. She said that Bonfilio harmed friends for greed and yet she showed no remorse for what she had done. The sentence was imposed to promote respect for the law.
Assistant United States Attorney James Y. Garrett prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Bonfilio. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Fraud Task Force include the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, the United States Department of Housing and Urban Development, Office of Inspector General, the United States Postal Inspection Service and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff’s Office, the Pennsylvania Attorney General’s Office, the Bureau of Consumer Protection, the Pennsylvania Department of Banking, the Pennsylvania Department of State, Bureau of Enforcement and Investigations and the United States Trustee’s Office.
Sentences Issued in Des Moines Methamphetamine InvestigationRead the Press Release
DES MOINES, IA B United States Attorney Nicholas A. Klinefeldt announced that nine individuals from the Des Moines, Iowa metro area have been sentenced on federal drug trafficking charges. Following the execution of multiple search and arrest warrants in December 2012, ten individuals were charged in the Southern District of Iowa with conspiracy to distribute 500 grams or more of methamphetamine and other substantive drug offenses, including: Juan Carlos Hernandez Gonzalez, Miguel Bazan Cardenas, Bertoldo Zuniga, Azael Bernal Balderas, Ubaldo Carrasco Alcantar, Josue Castaneira Cruz, Andres “Andy” Gomez, III, Gabriel Carrasco, Beverly Ann Hickcox and Danny Lee Iseminger. All ten of these individuals pled guilty to conspiracy to distribute methamphetamine.
The following nine individuals were sentenced by United States District Judge John A. Jarvey on January 22 and 23, 2014:
• Juan Carlos Hernandez Gonzalez, age 33 of Des Moines, was sentenced to 300 months imprisonment and ordered to serve a term of 5 years supervised release following imprisonment.
• Miguel Bazan Cardenas, age 36 of Des Moines, was sentenced to 90 months imprisonment followed by 5 years supervised release.
• Bertoldo Zuniga, age 60 of Des Moines, was sentenced to 48 months imprisonment followed by 3 years supervised release.
• Azael Bernal Balderas, age 31 of Des Moines, was sentenced to 60 months imprisonment followed by 5 years supervised release.
• Ubaldo Carrasco Alcantar, age 46 of Des Moines, was sentenced to 30 months imprisonment followed by 3 years supervised release.
• Josue Castaneira Cruz, age 34 of Des Moines, was sentenced to 27 months imprisonment followed by 3 years supervised release.
• Gabriel Carrasco, age 32 of Des Moines, was sentenced to time served and was also ordered to serve 3 years supervised release with special conditions of 4 months in a residential facility followed by 4 months house arrest.
• Beverly Ann Hickcox, age 61 of Des Moines, was sentenced to 18 months imprisonment followed by 3 years supervised release.
• Danny Lee Iseminger, age 54 of Newton, was sentenced to 104 months imprisonment followed by 5 years supervised release.
Each of the above defendants also was ordered to pay a $100 special assessment to the crime victim’s fund.
The remaining defendant, Andres “Andy” Gomez, III, age 25 of Bondurant, Iowa, is scheduled to be sentenced April 30, 2014, at the United States Courthouse in Des Moines.
This investigation focused on the distribution of multiple-ounce quantities of extremely pure methamphetamine in the Des Moines area. The organization received shipments of 30 pounds of methamphetamine at a time that originated from Mexico. Bulk cash shipments of drug proceeds were sent to Mexico by the organization, which was headed in the Des Moines area by Juan Carlos Hernandez Gonzalez. During the searches conducted in December 2012, agents seized 1.9 kilograms of 100% pure methamphetamine, $117,749 in drug proceeds and 17 firearms. Other properties, including a vehicle and residence, were also seized and forfeited as a result of the investigation.
The case was the result of the multiple-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). 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.
Agencies involved in this case included the: Iowa Division of Narcotics Enforcement; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Des Moines Police Department; Homeland Security Investigations; Internal Revenue Service Criminal Investigations; Iowa Division of Criminal Investigations; Iowa Division of Intelligence; Iowa National Guard Counter-Drug Unit; Iowa State Fire Marshals; Iowa State Patrol; Mid-Iowa Narcotics Enforcement Task Force and Urbandale Police Department.
This case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
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Second Nurses Aide Sentenced for Conspiracy to Defraud the GovernmentRead the Press Release
NORFOLK, Va. – Festus Ighalo, 37, of Virginia Beach, Virginia, was sentenced today to 57 months in prison for conspiracy to defraud the government.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI); and Trevor Nelson, Assistant Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), made the announcement after sentencing by United States District Judge Arenda Wright Allen.
Ighalo pleaded guilty on October 8, 2013. According to court documents, Ighalo and his codefendant Emmanuel Effiong, both originally from Nigeria and now naturalized U.S. citizens, were formerly nurses aides at Sentara’s Virginia General Hospital in Virginia Beach. They used their positions there to obtain Personally Identifiable Information (PII), such as dates of birth and social security numbers, from thousands of patients mostly located in the Tidewater area. Then, with the help of others located elsewhere in the U.S. and Nigeria, that information was used to submit fraudulent federal tax returns with the Internal Revenue Service and receive tax refunds in the patients’ names. Effiong was sentenced to 81 months for conspiracy and aggravated identity theft on January 10, 2014.
This case was investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Elizabeth M. Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Rockford Man Sentenced to 57 Months in Federal Prison on Drug ChargesRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced today in federal court before U.S. District Judge Frederick J. Kapala as the last of seven defendants to be sentenced on related drug trafficking charges. ANGELO TURNER, 30, was sentenced to 57 months in prison without parole, to be followed by 3 years of supervised release, for conspiracy to possess with intent to distribute and distribution of cocaine. Turner pleaded guilty to the charge on Oct. 25, 2013, admitting that as early as May 2012 through Dec. 20, 2012, he conspired with others to distribute cocaine in the Rockford area.
Also charged were Angelo Turner’s brother, JOHN TURNER, 32, and MARQUICE FIELDS, 28, both of Rockford. John Turner pleaded guilty to the conspiracy and was sentenced on Oct. 24, 2013, to 51 months’ imprisonment, to be followed by 3 years’ supervised release. Fields pleaded guilty to using a mobile telephone to facilitate the drug conspiracy and was sentenced on Jan. 13, 2014, to 3 years’ probation.
In a related case, NICHOLAS CLARK, 32, RICHARD CLARK, 40, STEVEN KEENAN, 26, and RICHARD RILL, 48, all of Rockford, were charged and pleaded guilty to conspiracy to possess with intent to distribute and distribution of cocaine from early 2012 through December 2012. Nicholas Clark was sentenced on Aug. 14, 2013, to 120 months’ imprisonment, to be followed by 8 years’ supervised release. Richard Clark was sentenced on Nov. 14, 2013, to 60 months’ imprisonment, to be followed by 4 years’ supervised release. Keenan was sentenced on Sept. 10, 2013, to 60 months’ imprisonment, to be followed by 4 years’ supervised release. Rill was sentenced on Aug. 14, 2013, to 60 months’ imprisonment, to be followed by 5 years’ supervised release. None of the defendants will be eligible for parole.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; Carl J. Vasilko, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Richard Meyers, Winnebago County Sheriff; and Chet Epperson, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Rochester Man Pleads Guilty to Six Bank Robberies Across New York StateRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Robert Stevenson, 59, of Rochester, N.Y., who pleaded guilty to bank robbery before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine or both.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, on June 11, 2012, the defendant entered the First Niagara Bank at 2853 Delaware Avenue, in Kenmore, N.Y., approached a teller station and handed the teller a note which stated, “100.00 and 50.00.” Stevenson then tapped on his waistband and made a noise and gesture suggesting that he had a weapon under his shirt.
In addition to the First Niagara Bank robbery, the defendant also committed the following robberies:
• April 25, 2012, Citizens Bank, 2250 Hudson Avenue, Irondequoit, N.Y.
• May 11, 2012, HSBC Bank, 333 West Washington, Syracuse, N.Y.
• August 20, 2012, Adirondack Bank, 185 Genesee Street, Utica, N.Y.
• October 3, 2012, Bank of America, 50 Genesee Street, New Hartford, N.Y.
• November 5, 2012, Northwest Savings Bank, 210 W. Main Street, Falconer, N.Y.The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the Irondequoit Police Department, under the direction of Chief Richard Tantalo, the Syracuse Police Department, under the direction of Chief Frank Fowler, the Utica Police Department, under the direction of Chief Mark Williams, the New Hartford Police Department, under the direction of Chief Michael Inserra, the Kenmore Police Department, under the direction of Chief Peter Breitnauer, the Town of Ellicott Police Department, under the direction of Chief William Ohnmeiss, Jr., and the Albany Office of the Federal bureau of Investigation, under the direction of Special Agent in Charge Andrew Vale.
Sentencing is scheduled for May 7, 2014 at 1:00 p.m. before Judge Arcara.Rhode Island Businessman Pleads Guilty to Trafficking Contraband CigarettesRead the Press Release
PROVIDENCE, R.I. –Abdullah Alnahas, 36, of Cranston, owner and operator of a Cranston convenience store and a Providence laundromat, faces up to 10 years in federal prison for his participation in a contraband cigarette conspiracy that allegedly brought more than six million contraband cigarettes valued at more than $1.2 million dollars into Rhode Island from Virginia, and which allegedly cheated Rhode Island out of more than $500,000 in tax stamp payments.
Alnahas appeared before U.S. District Court Chief Judge William E. Smith on Thursday and pleaded guilty to one count each of conspiracy to engage in contraband cigarette trafficking and contraband cigarette trafficking. Alnahas is scheduled to be sentenced by Chief Judge William E. Smith on May 9, 2014.
Abdullah Alnahas’s guilty plea was announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations for New England; Scott E. Antolik, Special Agent in Charge of the Boston field office of the Social Security Administration, Office of the Inspector General/Office of Investigations; and William G. Squires, Special Agent in Charge of the northeast region of the U.S. Department of Agriculture Office of Inspector General.
Abdullah Alnahas is one of eight defendants named in federal grand jury indictments returned in May and September 2013, that allege that beginning in July 2011, the defendants participated in a scheme to traffic contraband cigarettes into Rhode Island. It is alleged that several “shell” corporations were created in Virginia and that several vacant retail storefronts in Virginia were rented for the stated purpose of purchasing and reselling cigarettes in Virginia. The cigarette packages purchased included Virginia tax stamps, reflecting a Virginia tax of thirty-five cents per package.
However, according to the indictments, it is alleged that more than 30-thousand cartons (6 million) of cigarettes valued at more than $1.2 million dollars that were purchased in Virginia were shipped to Rhode Island for resale in a truck bearing Rhode Island War Veteran Plates. It is alleged that on numerous occasions the truck was driven by a Rhode Island man, while wearing his United States Army uniform, in an effort to gain favor and avoid law enforcement detection.
To date, co-defendants Valeria Mendez (Khalil) and Richard Larrain have filed notice with the court of their intention to plead guilty for their roles in the conspiracy and other alleged illegal activities. A trial date of April 8, 2014, has been scheduled for the remaining defendants, Bassam Kiriaki, Wissam Khalil, Bassam Khalil, and Najd Khalil. An arrest warrant has been issued for an eighth defendant, Nazir Khalil.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.
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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]Portland Woman Indicted for Tax Refund FraudRead the Press Release
Allegedly Sought $400,000 in Fraudulent RefundsPortland, Ore. – Latisha L. Simmons, 34, of Portland, Oregon, has been indicted on sixteen counts of wire fraud, sixteen counts of filing false claims for tax refunds, and one count of aggravated identity theft, the Justice Department announced. Simmons made her initial appearance in court today before U.S. Magistrate Steven P. Logan in Phoenix, Arizona. The defendant was released on pre-trial conditions pending an initial appearance in U.S. District Court in Oregon on February 20, 2014.
According to the 33-count indictment, Simmons electronically filed at least 52 false tax returns, requesting at least $400,000 in fraudulent refunds. Simmons is alleged to have obtained the names and Social Security numbers of other individuals, including those of a deceased person, in order to file false tax returns in their names. According to the indictment, Simmons had the fraudulent refunds deposited onto stored-value debit cards and mailed to her own address, addresses she could access or control, or deposited into bank accounts that she could access or control.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Simmons faces a maximum sentence of five years in prison for each false claims count, up to 20 years in prison for each wire fraud count, and a mandatory two-year sentence on the aggravated identity theft count. If convicted, she could be subject to fines, mandatory restitution, and a money judgment.
This case was investigated by the IRS Criminal Investigation Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Todd P. Kostyshak of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Pharmacist Admits Multiple Sales of Oxycodone Without A Prescription, Agrees to Forfeit $1.5 MillionRead the Press Release
NEWARK, N.J. – The former pharmarcist-in-charge of West Orange Pharmacy today admitted to illegally distributing hundreds of tablets of oxycontin in exchange for thousands of dollars in cash, U.S. Attorney Paul J. Fishman announced.
Leonard “Lenny” Stefanelli, 49, of East Hanover, N.J., pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to an information charging him with illegally dispensing oxycodone. Stefanelli also admitted to conspiring with brothers Robert Carlucci and William Carlucci, both 70, both of Florham Park, N.J., to submit fraudulent bills to health care benefit providers, including Medicare and Medicaid.
Stefanelli agreed forfeit $1.5 million, consisting of illegal profits obtained from his illegal sales of oxycodone and his submission of fraudulent bills to health care benefit providers.
According to documents filed in this and other cases, and statements made in court:
Oxycodone, the active ingredient in brand name pills such as Oxycontin, is a Schedule II controlled substance B meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence. A pharmacist can only dispense a Schedule II controlled substance when presented with a written prescription from a doctor.
From February 1, 2012, to August 6, 2012, on at least six separate occasions, Stefanelli sold hundreds of tablets of Oxycontin to an individual, without a prescription, in exchange for cash. Each sale took place inside West Orange Pharmacy. For example, on Feb. 8, 2012, Stefanelli sold one bottle of 100-count Oxycontin 30-mg tablets and one bottle of 100-count Oxycontin 15-mg tablets for $1,800.
Between 1992 and October 2012, Stefanelli conspired with Robert Carlucci and William Carlucci to submit fraudulent bills to health care benefit providers, including Medicaid and Medicare, reaping at least $921,634 from his scheme. Robert Carlucci and William Carlucci previously pleaded guilty to committing health care fraud by participating in a variety of schemes designed to cheat customers and bilk insurance companies out of millions of dollars. They are both scheduled to be sentenced on Feb. 27, 2014.
The narcotics distribution charge to which Stefanelli pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of up to $1,000,000. Sentencing is scheduled for April 30, 2014, before U.S. District Judge Faith S. Hochberg.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski; and special agents of the Food & Drug Administration’s Office of Criminal Investigations, under the direction of Mark Dragonetti, with the investigation leading to today’s guilty plea. He also thanked the Elizabeth, Clinton, Toms River, West Orange, and Marlboro police departments, along with the Essex County Sheriff’s Department, for their work on this case.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Carlos Ortiz Esq., Morristown, N.J.
Stefanelli Information
Owner of Harrisburg Labor Supply Businesses Charged with Withholding Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that a federal grand jury in Harrisburg returned a 17-count indictment against Howard Ginting, age 29, of Harrisburg, PA, on January 22, 2014. The Indictment charges Ginting with tax evasion and with failing to pay withholding taxes totaling $216,846.70 on income of approximately $1 million. Howard Ginting was the sole owner of Ginting Enterprises, Inc., a Pennsylvania corporation located in Harrisburg, Pennsylvania
According to U.S. Attorney Peter Smith, Ginting Enterprises allegedly supplied day laborers to businesses in central and northeastern Pennsylvania on an as-needed basis. As the owner and operator of the corporation, Ginting was required to withhold from the wages of the GEI employees the Federal Insurance Contributions Act (FICA) taxes on a quarterly basis. From October, 2006 through on or about February, 2008, Ginting Enterprises allegedly paid wages totaling approximately $851,553. Ginting falsely reported to the IRS that he had only paid wages in the amount of approximately $68,549, underpaying the Social Security tax and Medicare taxes owed by GEI by approximately $119,799.
On or about February, 2008, Ginting shut down Ginting Enterprises and operated his same labor supply business under the name Trojan Services, Inc. Between February, 2008 and May, 2011, while being operated by Ginting, Trojan paid wages of approximately $638,477, but Ginting allegedly failed to report to the Internal Revenue Service (IRS) all wages paid to his employees, underpaying Social Security tax and Medicare taxes owed by Trojan by approximately $97,047. This resulted in underreporting the employee and employer share of the Social Security and Medicare taxes in the total amount of approximately $216,846.
The case was investigated by the Harrisburg office of the Internal Revenue Service. Assistant U.S. Attorney Gordon Zubrod coordinated the grand jury investigation and has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 75 years’ imprisonment, a term of supervised release following imprisonment, and a fine of over $300,000 as well as significant tax penalties. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Owner of Forty Fort GM Foodmart Store Pleads Guilty to Money Laundering ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 47-year-old Forty Fort businessman pleaded guilty yesterday in Scranton before Senior U.S. District Court Judge Edwin M. Kosik to participating in a conspiracy to launder drug proceeds related to the distribution of synthetic marijuana.
According to United States Attorney Peter Smith, the defendant, Mastan Mathan, of Forty Fort, admitted to conducting financial transactions with drug proceeds that were designed to conceal the nature of the proceeds and carry on the illegal distribution of synthetic marijuana. The money laundering activity occurred between October 2011 and July 2012, and involved approximately $310,000.
Mathan was charged in a criminal Information filed by the United States Attorney last week. Mathan and his co-conspirators obtained synthetic marijuana from out-of-state suppliers, sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort, and deposited the proceeds of drug sales into at least two bank accounts to conceal the illegal nature of the proceeds and to promote the carrying on of the illegal drug business.
The prosecution of Mathan resulted from an investigation by the IRS-Criminal Investigations, the Drug Enforcement Administration, and the Pennsylvania State Police.
Mathan faces up to 20 years in prison and a $500,000 fine. Mathan forfeited approximately $174,000 to the United States that was seized by agents during the investigation.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Northern Kentucky IRS Financial Technician Sentenced to 28 Months for Stealing Identities and Committing Mail FraudRead the Press Release
COVINGTON, KY -A financial technician, employed in an office of the Internal Revenue Service (IRS) located in Boone County, KY., was sentenced to 28 months in federal prison for unlawfully accessing an IRS computer to obtain personal information about taxpayers.
U.S. District Judge Amul Thapar sentenced 33-year-old Joy Fox of Independence, KY., on Thursday for aiding and abetting mail fraud and one count of aiding and abetting aggravated identity theft. Under federal law, Fox will have to serve at least 85 percent of her prison sentence.
Fox pleaded guilty in September 2013 and acknowledged that as part of her official duties she had access to the Integrated Data Retrieval System (IDRS). IDRS is a computer system that maintains taxpayer information including names, social security numbers and dates of birth of taxpayers. Fox’s authorized access to the computer system was limited to official business use only.
Fox admitted she used IDRS without authorization to steal the identities of taxpayers. She provided the information to her co-defendant, Patrick Sharpe, 23, who lived in Tallahassee, FL. Sharpe specifically requested that Fox obtain the personal information of individuals 65 or older who were eligible for Social Security benefits. The defendants had planned for Sharpe to apply online for debit cards using the stolen identities and fund the cards with those individuals’ Social Security benefits.
Sharpe has admitted that he used false addresses in the application process so the cards would be delivered to locations where they could be picked up and used without the knowledge of the individuals whose identities had been stolen. Investigators discovered the scheme before the defendants could use the victims’ debit cards.
Sharpe pleaded guilty in October 2013 to aiding and abetting mail fraud and aiding and abetting aggravated identity theft. Sharpe will be sentenced on February 20, 2014.
Kerry B. Harvey, United U.S. Attorney for the Eastern District of Kentucky; James D. Robnett, Special Agent in Charge, IRS-Criminal Investigations Division, Tampa, FL., and Michael Wallenhorst, Special Agent in Charge, Treasury Inspector General Tax Administration, Chicago Field Division, jointly announced the sentence.
The investigation was conducted by agents of the IRS-Criminal Investigation Division, Tallahassee, Fla.; the Leon County Sheriff’s Office, Tallahassee, and agents of Treasury Inspector General Tax Administration, Covington, KY. Assistant U.S. Attorney Laura Voorhees prosecuted this case for the U.S. Attorney’s Office on behalf of the federal government.