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Friday 24 January 2014
Nevada Man Sentenced for Voluntary ManslaughterRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Jan. 24, 2014,Waylon S. Hicks, 22, Schurz, Nev., was sentenced by U.S. District Judge Daniel L. Hovland after having been convicted of a charge of voluntary manslaughter by a federal jury on Sept. 20, 2013.
Judge Hovland sentenced Hicks to nine years in federal prison, to be followed by three years of supervised release. Hicks was ordered to pay restitution of $7043 and a special assessment of $100 to the Crime Victim’s Fund.
On July 20, 2012, Hicks stabbed Jeremiah Sage in the chest while the two were in a motor vehicle parked at the New Town Marina on the Fort Berthold Indian Reservation. According to trial testimony, Hicks exited the vehicle after the initial stabbing, and while the vehicle was in motion, Hicks jumped onto the running board of the vehicle and slashed Sage in the throat twice. Hicks fled on foot and called authorities. The vehicle subsequently caught on fire. Sage’s body was located inside the vehicle after the fire was extinguished. According to testimony from the North Dakota State Medical Examiner, Sage died from the stab wound to the chest.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Fort Berthold Agency, the Three Affiliated Tribes Police Department, the Mountrail County Sheriff’s Office, and the North Dakota State Fire Marshal.Assistant U.S. Attorney Rick Volk prosecuted the case.
Mother of 7th Street Gang Member Pleads Guilty to RICO ConspiracyRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Carmen Geter, 41, of Buffalo, N.Y., pleaded guilty to Racketeering Influenced Corrupt Organizations (RICO) conspiracy 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.
“This case demonstrates both the reach of federal racketeering laws as well as our continuing commitment to root out all violent gang members and those who illegally support them,” said U.S. Attorney Hochul.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant is the mother of 7th Street Gang member and co-defendant Kasiem Williams. As a member of the conspiracy, Geter facilitated the criminal activities of the enterprise by providing rides in her vehicle to members and associates of the gang at the request of co-defendant Efrain Hidalgo. Those activities including the selling of heroin, cocaine and marijuana in the territory controlled by the 7th Street Gang and Cheko’s Crew. The defendant knew that those she provided rides for were involved in the distribution of illegal narcotics, firearms possession, and violent crimes.
Charges are pending against Efrain Hildalgo and Kasiem Williams. 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.
The pleas are 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 New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Office.
Sentencing is scheduled for May 1, 2014 before Judge Arcara.Michigan Man Sentenced for Making False StatementsRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Michael T. Henson, 51 of Fowerville, Michigan, who was convicted of making false statements, was sentenced to 18 months in prison by District Court Judge Richard J. Arcara. The judge also ordered the defendant pay restitution in the amount of $127,091.08 to the victims in this case.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that defendant was contracted to transport an interstate shipment of 20 tons of copper and brass via tractor trailer from Buffalo, N.Y. to Lonoke, Arkansas, and Midland, Texas. The shipment was valued at approximately $130,000. On June 22, 2010, Henson picked up the shipment in Buffalo but it was never delivered to its intended recipients. On July 13, 2010, the defendant had a telephone conversation with a Special Agent of the Federal Bureau of Investigation from Buffalo regarding the missing shipment. Henson stated that he dumped the load of copper he was hauling along a rural road near West Memphis, Arkansas when in fact he had not. Cellular telephone records for the defendant revealed that during the relevant time period, Henson did not travel to the State of Arkansas.
The conviction 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.Miami-Dade Resident Sentenced in Tax Preparation Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Rigoberto Cabrera, 37, of Miami-Dade County, was sentenced today for his participation in a tax preparation fraud scheme. Cabrera was sentenced to 292 months in prison, to be followed by three years of supervised release. Cabrera was also ordered to pay restitution in the amount of $1,526,622.
A federal jury previously convicted Cabrera on 29 counts, including one count of conspiracy to defraud the government with respect to claims, one count of conspiracy to commit wire fraud, 18 counts of making false claims to the IRS, four counts of wire fraud, one count of conspiracy to commit money laundering, and four counts of money laundering.
According to the indictment and evidence presented during the trial, defendant Cabrera and co-conspirator Carlos Perez, 34, also of Miami-Dade County, recruited individuals and offered to prepare their individual income tax returns with the promise that the defendants could obtain substantial tax refunds for the taxpayers. The recruited taxpayers agreed to pay Cabrera and Perez a percentage of the refunds they received. The defendants then prepared fraudulent 2008 and 2009 federal income tax returns on behalf of the recruited taxpayers, claiming tax credits or deductions to which the taxpayers were not entitled. After the taxpayers received the fraudulent refunds from the IRS, Cabrera and Perez collected a percentage of the funds from the taxpayers through checks payable to companies that the defendants controlled and shell companies.
Through this scheme, the defendants claimed approximately $10,242,667 in tax refunds from the IRS.
Carlos Perez was sentenced on December 5, 2013 to 33 months in prison, to be followed by three years of supervised release. Perez pled guilty on September 19, 2013 to Counts 1 and 21 of the superseding indictment, which charges the defendant with conspiracy to defraud the government with respect to claims, and to conspiracy to commit wire fraud.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Daniel Bernstein and Alejandro O. Soto.
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.
Man Charged with Defrauding Fema After Massachusetts Tornado in 2011Read the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Bridgeport returned an indictment yesterday charging ROBBIE ROSSI, 41, formerly of Massachusetts, with two counts of mail fraud arising from a scheme to fraudulently obtain disaster relief funds from the Federal Emergency Management Agency (FEMA).
As alleged in the indictment and other court documents, a severe storm and tornado outbreak struck central Massachusetts on June 1, 2011. After a Presidential Declaration authorized FEMA to provide disaster relief funds to local residents, ROSSI obtained more than $12,000 in disaster relief benefits by falsely representing that he lived at a residence on New Bridge Street in West Springfield, Mass., that had been damaged by the storm. As part of the scheme, ROSSI provided FEMA with false documentation of rent payments he claimed to have paid in the months following the storm. Between August 2011 and April 2013, ROSSI is alleged to have received payments at various addresses that he supplied to FEMA, including a residence in Enfield, Conn.
ROSSI was arrested on January 14 in Las Vegas pursuant to a federal arrest warrant that was based on the conduct charged in the indictment. He is detained pending his transport to Connecticut to face the charges.
If convicted, ROSSI faces a maximum term of imprisonment of 30 years on each count.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Office of the Inspector General of the U.S. Department of Homeland Security and is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
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[email protected]Lyons Man Sentenced for Felon in Possession of a Firearm ConvictionRead the Press Release
Adam Beck, age 50 of Lyons, Nebraska, was sentenced for his conviction for being a felon in possession of a firearm. United States District Court Judge Joseph F. Bataillon sentenced Beck to 110 months imprisonment and three years of supervised release.
In August of 2012, Beck’s residence was searched by the Thurston County Sheriff’s Department in connection with an investigation of another individual. During the search, various firearms were located including a Ruger rifle which had been reported stolen in Burt County, a Winchester rifle and a Savage Arms rifle. DNA testing indicated that Beck was the major contributor of DNA found on two of the weapons and that he was a minor contributor of DNA found on the third rifle. At the time of the search, Beck was on supervised release from a 2007 federal conviction for being a felon in possession of a firearm.
This case was investigated by the Federal Bureau of Investigation.
Leader of “Pump and Dump” Stock Fraud Scheme Sentenced in Manhattan Federal Court to Nine Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DAVID LEVY was sentenced today to nine years in prison after having been found guilty by a federal jury for orchestrating “pump and dump” stock fraud schemes that employed the Internet and social networking sites, among other tools, to manipulate the price of penny stocks as well as participating in an international money laundering scheme. DAVID LEVY was sentenced in Manhattan federal court by U.S. District Judge Paul A. Crotty who also presided over the three-week jury trial. David Levy’s wife and co-defendant, Donna Levy, who also was found guilty by the federal jury for her role in this and other schemes, is scheduled to be sentenced by Judge Crotty on February 5, 2014.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentence David Levy will now pay a heavy price for the massive ‘pump and dump’ schemes that he and his wife orchestrated, which defrauded multiple victims of millions of dollars – the loss of his liberty.”
According to the evidence introduced at trial, court filings, and statements made in court:
The Start-Up Company Stock Fraud Scheme
The scheme worked as follows: DAVID LEVY and Donna Levy offered to help start-up companies obtain financing, take the start-up companies public, and coordinate marketing and investor relations for the companies, in exchange for company shares. Once they had helped the companies go public, Donna Levy put out press releases on behalf of the target companies, and she worked with her husband to secretly fund and distribute misleading third-party "buy" recommendations concerning the targeted companies. This misleading promotional campaign, along with other manipulative conduct, generated demand for stock in the targeted companies, and caused the price of the stocks to rise. DAVID LEVY, Donna Levy, and their co-conspirators took advantage of the "pumped-up" stock trading volume and price to "dump" their shares into the market until the misleading promotional campaign had run out of steam. They would repeat the scheme multiple times until the target companies' shares were essentially valueless, thereby harming company founders and executives, as well as innocent investors who bought in reliance on the misleading promotional campaigns orchestrated by DAVID LEVY and Donna Levy. DAVID LEVY was convicted of engaging in this pump and dump scheme with three companies that he helped take public: Cardiac Network, Inc., which has traded under symbol ACNWI,@ Banneker, Inc., which has traded under symbol “BANI,” and Greenway Design Group, Inc., which has traded under symbol “GDGI.”
The International Money Laundering Scheme
DAVID LEVY also was convicted of a money laundering conspiracy in connection with his efforts to conceal more than $2.3 million in proceeds of the fraudulent schemes in Panamanian shell company bank accounts maintained by a co-conspirator at a bank in Panama. In connection with the scheme, DAVID LEVY wire transferred $150,000 in fraud proceeds to a Panamanian shell company bank account through a bank account in New York. DAVID LEVY carried more than $2 million in cashier’s checks, representing proceeds from stock fraud, to Panama and caused them to be deposited into the shell company bank accounts.
Nine additional defendants already have pled guilty to charges arising out of the conduct described in the Indictment, and five of the nine have been sentenced. The relevant plea dates and, where applicable, the sentences imposed are set forth in the attached chart.
In addition to the prison sentence, Judge Crotty sentenced DAVID LEVY, 61, of Fort Lauderdale, Florida, to three years of supervised release and ordered him to pay a $500 special assessment fee. In addition, DAVID LEVY was also preliminarily ordered to forfeit $12 million, his home in Florida, certain luxury vehicles, and certain bank accounts.
This case originated and the schemes were uncovered as part of the Government’s long-term investigation into criminal conduct at the Port of New York-New Jersey. Mr. Bharara thanked the Internal Revenue Service-Criminal Investigations’ New Jersey office, as well as the other participants in the High Intensity Drug Trafficking Area Task Force, which includes the Drug Enforcement Administration and Homeland Security Investigations’ New Jersey Offices, for their assistance with the investigation. Mr. Bharara also thanked the Securities and Exchange Commission and the Financial Industry Regulatory Authority for supporting the investigation, which is ongoing.
The prosecutions are being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Howard S. Master and Carrie H. Cohen are in charge of the prosecutions.
Lacey Act Case IndictedRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, announces that after an approximate eighteen month undercover investigation by the National Oceanic and Atmospheric Administration, Florida Fish and Wildlife Conservation Commission and the Alabama Department of Natural Resources, eight commercial fishermen and a seafood dealer were charged in two separate indictments by a federal grand jury, and arraigned in Mobile, Alabama today. The individuals were charged in an ongoing scheme allegedly conspiring to illegally harvest and transport reef fish, including red snapper and grouper, across state lines and falsifying documents in order to circumvent the Gulf of Mexico Individual Fishing Quota management plan. Hunter Evans, owner of Bay City Meat Co., Josh Jones, James Martin, Natalie McArdle, Matthias Kumm, David Braley, Tiffany Cooner Wilson, all from Baldwin County, and JohnWhitworth of Pensacola, Florida were charged with buying and selling illegal reef fish to undercover state and federal investigators. The investigation was furthered by business records and other documents obtained from search warrants executed in Alabama and Florida.
Most of the violations involve 16 USC ' 3372, the Lacey Act, which prohibits interstate shipment of fish or wildlife taken in violation of state law. Each Lacey Act violation carries a possible five-year prison term. This is a continuing investigation.
As in all criminal cases, the Indictment returned by the Grand Jury is only a charge and the Defendants are presumed innocent.
Kidnapper ConvictedRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has returned a guilty verdict against Miguel Angel Navarro, 36, of Hidalgo, on two counts of conspiracy to commit and committing hostage taking, announced United States Attorney Kenneth Magidson. The verdict was returned following a four-day trial and less than four hours of deliberation.
The victim testified at trial and told the jury about the events that unfolded Sept. 25-26, 2012, during which she was forcibly taken from a University of Texas-Pan American parking lot and put in a vehicle occupied by Navarro as well as Milton Leonel Trevino and Onan Herrera-Sanchez. She was then taken to another location where she was transferred to a different vehicle and ultimately to the residence of Trevino, where she was held against her will.
Trevino, 21, of Pharr, and Herrera-Sanchez, 29, of Honduras, both pleaded guilty in the case prior to the commencement of this trial. Trevino testified for the government and admitted he and the others knowingly and intentionally conspired with each other to detain and make threats in order to compel another person to pay a sum of money as an explicit or implicit condition of the victim’s release. Trevino admitted he assisted in the actual abduction of the victim and he guarded her while they waited for the ransom money.
The victim’s father also testified and described to the jury about receiving the ransom calls, during which a demand for money was made in exchange for his daughter’s release. He further testified that during the calls, he was told that if the money was not paid, he would never see his daughter again.
Navarro's former wife testified that at his request she assisted in transporting the victim from one location to another. She further claimed she was unaware of the kidnapping at that time, but suspected the female was the victim of the university kidnapping once she was made aware of media news reports. She further admitted she spoke to Navarro during the early morning hours of Sept. 26, given her concerns of his involvement in the kidnapping. At that time, he told her, among other things, not to worry and that they were just trying to get money.
The victim was eventually released physically unharmed by Trevino.
At the inception of the case, the defense claimed Navarro was not involved in the offense. After the testimony of numerous government witnesses, the defense attempted to discredit the witnesses and claimed Trevino and Navarros's former wife lied during their testimony in exchange for favorable consideration in connection with their pending charges.
Ultimately, the jury did not believe him and found Navarro guilty as charged.
Navarro and the others have been and will remain in custody pending sentencing, which is set for April 10, 2014, at 09:00 a.m. before United States District Judge Randy Crane. All face up to life imprisonment and a $250,000 fine.
The investigation was the result of a joint investigation by the FBI and the University of Texas-Pan American Police Department with assistance from the Edinburg Police Department and Texas Rangers. This case is being prosecuted by Assistant United States Attorney Linda Requénez and Grady J. Leupold.
Jury Convicts 20-Year-Old of Smuggling $1 Million in MethRead the Press Release
BROWNSVILLE, Texas - A federal jury has convicted Jaime Homero Guerrero of conspiracy to possess and possession with intent to distribute more than 50 grams of methamphetamine, announced United States Attorney Kenneth Magidson. The jury returned its verdicts today following more than two days of testimony and approximately five hours of deliberation.
Guerrero, 20, was a passenger in a 2010 Nissan on April 5, 2013, when it was stopped for a traffic violation on Highway 77 near Raymondville in Willacy County. At that time, officers found 36 packages containing a total of 26.16 kilograms of methamphetamine.
Guerrero initially stated he was headed from Matamoros, Mexico, to a Quincenera in Houston. He later claimed he was going to deliver the vehicle to Houston.
Also charged was Oraldo Arvey Castro-Rocha, who was driving the Nissan and later pleaded guilty.
At trial, agents testified the methamphetamine Guerrero and Castro smuggled was valued at nearly $1 million in the Houston area.
U.S. District Judge Andrew S. Hanen, who presided over the trial, has set sentencing for April 28, 2014, at which time Guerrero faces a mandatory minimum term of 10 years and up to life in federal prison on each count of conviction as well as a possible $10 million fine. He has been in custody since his arrest where he will remain pending sentencing.
The case was investigated by Drug Enforcement Administration and the Texas Department of Public Safety. Assistant United States Attorneys Carrie Wirsing and David A. Lindenmuth prosecuted the case.
Judge Sentences Heroin Trafficker to 5 Years in PrisonRead the Press Release
PITTSBURGH- A Pittsburgh man has been sentenced in federal court to 60 months in prison after pleading guilty to violating federal drug laws, United States Attorney David J. Hickton announced today. This term of imprisonment is to be followed by three years of federal supervised release. United States District Judge Cathy Bissoon imposed the sentence on Dorianne Harris, 20.
According to information presented to the court, from in and around May 2012, and continuing thereafter to in and around March 2013, in the Western District of Pennsylvania and elsewhere, Harris conspired with others to distribute and possess with the intent to distribute 100 gram or more of heroin, a Schedule I controlled substance. The Court learned that Harris received multi-brick quantities of heroin from co-defendant Troy Anderson on a regular and continual basis, and that Harris then sold this heroin to others. Each brick of heroin contains 50 stamp bags of heroin, which retail for between $6 and $10 each. Troy Anderson has pled not guilty to the charges against him.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department for the investigation leading to the successful prosecution and sentencing of Dorianne Harris.
International Law Enforcement Efforts Result in Charges Around the World Against Operators and Customers of Email Hacking WebsitesRead the Press Release
LOS ANGELES – As part of an international law enforcement operation involving Romania, India and China, federal prosecutors have charged two operators of a United States-based email hacking website, as well as three customers of other hacking websites based in other nations, with computer fraud offenses.
In a series of cases filed in Los Angeles earlier this week, prosecutors charged all five domestic defendants with obtaining unauthorized access to email accounts. All five defendants are expected to plead guilty in the coming weeks.
The domestic cases were announced today after authorities in Romania, India and the People's Republic of China arrested six defendants on various computer hacking charges.
The five domestic defendants were charged in four cases filed earlier this week in Los Angeles. One Los Angeles-based defendant is scheduled to make his first appearance in United States District Court this afternoon.
In the first case, Mark Anthony Townsend, 45, of Cedarville, Arkansas; and Joshua Alan Tabor, 29, of Prairie Grove, Arkansas, who operated the email hacking website needapassword.com, each were charged with a felony violation that carries a potential prison sentence of five years. According to court documents, customers of the website operated by Townsend and Tabor provided names of email accounts, and Townsend and Tabor would obtain the passwords to those accounts. The customers made payments into PayPal accounts and nearly 6,000 email accounts were affected by the scheme.
The other three defendants charged this week each face misdemeanor offenses for hiring computer hackers. These customers, who face up to one year in federal prison, are:
John Ross Jesensky, 30, of Northridge, California, who paid $21,675 to a Chinese website to get email account passwords and who is expected to be in federal court in Los Angeles this afternoon;
Laith Nona, 31, of Troy, Michigan, who paid approximately $1,081 to get email account passwords; and
Arthur Drake, 55, of Bronx, New York, who paid approximately $1,011 to get email account passwords.
These charges are the product of an international investigation coordinated by the Federal Bureau of Investigation, which received the assistance of the United States Air Force/Office of Special Investigations and the Naval Criminal Investigative Service. During the investigation, the FBI coordinated with the Directorate for Investigating Organized Crime and Terrorism (DIIOCT) and Directorate for Combating Organized Crime (DCCO) of Romania, the Central Bureau of Investigation (CBI) of the Republic of India, and the Ministry of Public Security (MPS) in the People's Republic of China.
In Romania, the DCCO, under the authority of DIICOT, has conducted searches of three residences associated with individuals operating the websites zhackgroup.com, spyhackgroup.com, rajahackers.com, clickhack.com, ghostgroup.org and email-hackers.com. Four individuals have been charged and detained in connection with the operation of those websites.
Approximately 1,600 email accounts were affected by the scheme operated by the subjects in Romania between February of 2011 and October of 2012.The Central Bureau of Investigation in India has arrested Amit Tiwari for operating the websites www.hirehacker.net and www.anonymiti.com and conducted searches of the residences of Tiwari and his associates. Operators of the two websites are responsible for obtaining unauthorized access to approximately 935 email accounts (of which 171 belonged to victims in India) between February of 2011 and February of 2013.
The MPS in China has arrested Ying Liu (劉颖), also known as “Brent Liu,” for operating website hiretohack.net. Liu is responsible for obtaining unauthorized access to approximately 300 email accounts between January of 2012 and March of 2013.
Release No. 14-010
Home Health Agency Owner Sentenced for Rolein $11 Million Detroit Medicare Fraud SchemeRead the Press Release
A home health agency owner who participated in a Medicare fraud scheme that totaled almost $11 million was sentenced in Detroit today to serve 120 months in prison.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Chiradeep Gupta, 39, was sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan. In addition to his prison term, Gupta was sentenced to serve three years of supervised release and was ordered to pay more than $10 million in restitution, jointly and severally with his co-defendants.
On Oct. 26, 2012, Gupta, a physical therapist and part-owner of All American, a home health care company located in Oak Park, Mich., was found guilty at trial of one count of conspiracy to commit health care fraud, one count of conspiracy to commit money laundering and three substantive counts of money laundering.
According to evidence presented at trial, Gupta and his co-conspirators caused the submission of false and fraudulent claims to Medicare through All American and Patient Choice, another Oak Park-based home health care company, which purported to provide skilled nursing and physical therapy services to Medicare beneficiaries in the greater Detroit area.
The evidence showed that Gupta and his co-conspirators used patient recruiters, who paid Medicare beneficiaries to sign blank documents for physical therapy services that were never provided and/or medically unnecessary. The owners of Patient Choice and All American paid physicians to sign referrals and other therapy documents necessary to bill Medicare. Physical therapists and physical therapist assistants provided through contractors, including two owned by Gupta, would then create fake medical records using the blank, pre-signed forms obtained by the patient recruiters to make it appear as if physical therapy services had actually been rendered, when, in fact, the services had not been rendered.
According to evidence presented at trial, Gupta provided to Patient Choice and All American physical therapists and physical therapist assistants who created fake patient files using blank, pre-signed forms obtained by patient recruiters to make it appear as if the physical therapy services billed to Medicare had actually been provided. Gupta also doctored and directed the doctoring of fake patient files. The evidence at trial showed that Gupta laundered the proceeds of the fraud through multiple shell companies.
This case was investigated by the FBI, HHS-OIG and the Internal Revenue Service and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case was prosecuted by Deputy Chief Gejaa Gobena, Assistant Chief Catherine Dick and Trial Attorney Niall O’Donnell of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Fremont, Nebraska Resident Sentenced to 64 Months in Prison for Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On January 24, 2014, Dawn R. Hightree, a 43 year-old resident of Fremont, Nebraska, was sentenced by United States District Court Senior Judge Robert Pratt to 64 months in prison followed by six years of supervised release for possession with intent to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. On May 22, 2013, Hightree pled guilty to the charge which was the result of an investigation conducted into methamphetamine distribution at Harrah’s Casino in Council Bluffs, Iowa. Hightree was found to have methamphetamine and drug trafficking paraphernalia in the hotel room at Harrah’s Casino where she was staying.
The investigation was conducted by the Iowa Division of Criminal Investigation, Special Enforcement Operations Bureau, the Council Bluffs, Iowa, Police Department and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Fremont, Nebraska Resident Sentenced to 64 Months in Prison for Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA- On January 24, 2014, Michael E. Hannum, a 53 year-old resident of Omaha, Nebraska was sentenced by United States District Court Senior Judge Robert Pratt to 30 months in prison followed by three years of supervised release for escape, announced United States Attorney Nicholas A. Klinefeldt. On November 1, 2013, the defendant pled guilty to escaping on August 2, 2013, from CH Inc. the residential re-entry center in Council Bluffs, Iowa. On August 4, 2013, the defendant was arrested by officers with the Council Bluffs Police.
The investigation was conducted by the Council Bluffs, Iowa, Police Department and the United States Marshal Service, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Four Alleged Members of Android Mobile Device App <br /> Piracy Groups ChargedRead the Press Release
Four individuals have been charged in the Northern District of Georgia for their alleged roles in piracy groups engaged in the illegal distribution of copies of copyrighted Android mobile device applications, or “apps.”
Acting Assistant Attorney General Mythili Raman of the Department of Justice’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia and Acting Special Agent in Charge Ricky Maxwell of the FBI’s Atlanta Field Office made the announcement.
“These crimes involve the large-scale violation of intellectual property rights in a relatively new and rapidly growing market,” said Acting Assistant Attorney General Raman. “While this represents the first counterfeit apps case by the Department of Justice, it exemplifies our longstanding commitment to prosecute those who steal the creative works of others.”
“Copyright laws are designed to protect creative thinkers and encourage them to use their talents in ways that benefit society,” said U.S. Attorney Yates. “These defendants are charged with violating the law by stealing copyrighted apps, thereby depriving the creators of the apps the fruits of their labor. We are committed to protecting copyright owners, and we will continue to vigorously prosecute those who steal all forms of copyrighted work.”
“The protection of intellectual property is the cornerstone of a free market that rewards innovation and forward thinking,” said FBI SAC Maxwell. “The federal charges presented in this case illustrates the problems facing technology based companies in particular but also highlights the FBI and U.S. government response to those engaged in such wholesale criminal activity involving the piracy of copyrighted products.”
An information filed on Jan. 23, 2014, charges Kody Jon Peterson, 22, of Clermont, Fla., with one count of conspiracy to commit criminal copyright infringement. A separate information filed today charges Thomas Allen Dye, 21, of Jacksonville, Fla.; Nicholas Anthony Narbone, 26, of Orlando, Fla.; and Thomas Pace, 38, of Oregon City, Ore., with one count of conspiracy to commit criminal copyright infringement. Peterson was arraigned on Jan. 23, 2014, and Dye, Narbone and Pace were arraigned today.
According to the information filed yesterday, Peterson and his fellow conspirators identified themselves as the SnappzMarket Group. From May 2011 until August 2012, Peterson conspired with other members of the SnappzMarket Group to reproduce and distribute over one million copies of copyrighted Android mobile device apps through the SnappzMarket alternative online market, without permission from the software developers and other copyright owners of the apps, who would otherwise sell copies of the apps on legitimate online markets for a fee.
According to the information filed today, Dye, Narbone, Pace and their fellow conspirators identified themselves as the Appbucket Group. From August 2010 to August 2012, defendants conspired with other members of the Appbucket Group to reproduce and distribute over one million copies of copyrighted Android mobile device apps through the Appbucket alternative online market without permission from the copyright owners of the apps.
The informations charge the SnappzMarket Group and the Appbucket Group with renting computer servers to host websites such as www.snappzmarket.com and www.appbucket.net , respectively, to provide digital storage for the pirated copies of copyrighted Android apps that each group distributed to their members or subscribers. On Aug. 21, 2012, seizure orders were executed against these two website domain names for the illegal distribution of copies of copyrighted Android mobile device apps – the first time website domains involving mobile device app marketplaces have been seized.
The maximum prison sentence for the charge of conspiracy to commit criminal copyright infringement is five years in prison.
Charges contained in a criminal information are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation of the case was conducted by the FBI. Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher Bly of the Northern District of Georgia are prosecuting the case on behalf of the United States, with the assistance of Assistant U.S. Attorney Brian M. Pearce of the Northern District of Georgia. The Office of International Affairs provided assistance in the matter. Significant assistance in the case has also been provided by the CCIPS Cybercrime Lab.Forty Individuals Facing Drug Trafficking and Firearms Charges as the Result of a Multi-Agency Investigation in Southeastern New MexicoRead the Press Release
ALBUQUERQUE – Thirty-nine individuals residing in Eddy, Chaves and Lincoln Counties, N.M., and one from west Texas are facing drug trafficking and firearms charges as the result of a multi-agency investigation targeting drug traffickers in southeastern New Mexico. The investigation culminated this morning when 27 of the defendants were arrested during an early morning law enforcement operation led by the DEA and the HIDTA Region VI Pecos Valley Drug Task Force. Another 13 of the defendants were arrested during the course of the investigation.
The results of the investigation were announced by Acting U.S. Attorney Steven C. Yarbrough, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Division, Eddy County Sheriff Scott M. London, Carlsbad Police Chief Kent Waller, and Commander James McCormick of the HIDTA Region VI Pecos Valley Drug Task Force.
The charges against the 40 defendants are the result of a year-long investigation that initially targeted a methamphetamine trafficking organization allegedly led by Israel Mireles-Rivera that distributed quantities of methamphetamine throughout southeastern New Mexico and then expanded to include other drug trafficking activity in the area. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
In announcing the results of the investigation, Acting U.S. Attorney Steven C. Yarbrough said, “This investigation was a coordinated effort to crackdown on drug trafficking in southeastern New Mexico. It is part of our statewide fight against illegal drugs and the cycle of violence that goes hand in hand with drug trafficking. Those who choose to engage in drug trafficking should be on notice that federal, state, and local law enforcement are committed to working together to put you out of business and into a prison cell.”
Fifth Judicial District Attorney Janetta B. Hicks added, “This investigation has significantly impacted the distribution network for methamphetamine and other controlled and dangerous drugs in Southeastern New Mexico. The cooperation between and commitment of the federal, state and local agencies has been extraordinary. The collaboration between the United States Attorney’s Office and the 5th Judicial District Attorney’s Office has been extremely close, focusing upon the jurisdiction, whether state or federal, where those charged can best be tried.
These cooperative efforts will continue beyond this investigation. The goal is to work toward the eradication of any viable network of distribution of methamphetamine and other drugs within Eddy County and the entire 5th Judicial District. Methamphetamine destroys lives and leads to serious violent offenses. We will continue to work together toward the final goal. I have nothing but the highest praise for all of the agencies and individuals participating in today’s operation. These men and women have gone above and beyond the call of duty in order to ensure Eddy County is a safe place to live, work and raise families. My deepest appreciation goes out to them.”
During the course of the investigation and today’s law enforcement operation, officers seized more than five pounds of methamphetamine, approximately $53,400 and 24 firearms, including evidence seized during the arrests of Mireles-Rivera and Rodrigo Ivan Cazares in Oct. 2013.
Mireles-Rivera, 32, a Mexican national illegally in the United States, was arrested in Carlsbad, N.M., on Oct. 17, 2013, based on a criminal complaint alleging methamphetamine trafficking and firearms charges. At the time of his arrest, Mireles-Rivera allegedly was in possession of two firearms, and officers seized approximately 230 grams of methamphetamine, more than $8,000.00 and five additional firearms when they executed a search warrant at his residence.
Rodrigo Ivan Cazares, 32, a resident alien from Mexico, was arrested in Artesia on Oct. 15, 2013, based on a criminal complaint after he allegedly attempted to sell 2.8 kilograms of methamphetamine to an officer who was acting in an undercover capacity.
“Methamphetamine destroys the lives of its abusers and has far-reaching negative effects in the areas where it takes hold,” said Special Agent in Charge Joseph M. Arabit of DEA’s El Paso Division. “By targeting local distribution networks in southeastern New Mexico, DEA and our state and local law enforcement partners are working to reduce overall crime and improve the quality of life for area residents. The numerous arrests and seizures in this investigation are the result of our close cooperation and part of our ongoing efforts to ensure that drug traffickers are held responsible for the harm they cause.”
“This operation is the culmination of an extraordinary cooperative effort involving federal, state and local law enforcement entities,” said Eddy County Sheriff Scott M. London. “I am proud that the Eddy County Sheriff's Office was able to play a major role in this operation and I applaud all the men and women from every other agency involved. We are and will continue to be committed to the safety and security of Eddy County.”
Carlsbad Police Chief Kent Waller said, “This investigation not only addresses illegal drug activity in Carlsbad, New Mexico but how drug organization affect our way of life throughout the United States. This multi-jurisdictional operation demonstrates how our law enforcement agencies work hand-in-hand to protect our families against illegal drugs. The efforts of our officers and agents today will affect our quality of life in Carlsbad, New Mexico for some time. Thankfully, they all went home safe tonight, and will be back on the streets tomorrow working to keep us safe.”
These cases are the result of an investigation by the DEA OCDETF Strike Force in Las Cruces and the HIDTA Region VI Pecos Valley Drug Task Force. Assistant U.S. Attorneys Renee L. Camacho and Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the federal cases, and Chief Deputy District Attorney Davis R. Ruark and his Assistant District Attorneys are prosecuting the state cases. The following agencies participated in today’s law enforcement operation: the El Paso Division of the DEA, FBI, U.S. Border Patrol, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, BIA’s Office of Justice Services, New Mexico State Police, Artesia Police Department, Carlsbad Police Department, Chaves County Metro Narcotics Task Force, Chaves County Sheriff’s Office, Eddy County Sheriff’s Office, Eddy County Detention Center, Lea County Drug Task Force, Lincoln County Sheriff’s Office, Loving Police Department and Roswell Police Department.
The HIDTA Region VI Task Force is comprised of officers and investigators from the Artesia Police Department, Carlsbad Police Department, Eddy County Sheriff’s Office, FBI, HSI, the Probation and Parole Division of the New Mexico Corrections Department and the 5th Judicial District Attorney’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Defendants Charged in Federal Cases
Juan Antonio Alvarez-Ramirez, 35, a resident alien from Mexico residing in Artesia, N.M., was indicted on marijuana trafficking and firearms charges. If convicted, he faces a maximum penalty of five years in prison on the marijuana charges and a mandatory minimum of five years in prison on one of the firearms charges. Alvarez-Ramirez was arrested on Jan. 23, 2014.
Rodrigo Ivan Cazares, 32, a resident alien from Mexico residing in Artesia, N.M., was indicted on methamphetamine trafficking charges. If convicted, he faces a mandatory minimum of ten years to a maximum of life in prison. Cazares was arrested on Oct. 17, 2013 on a criminal complaint and is detained pending trial.
Mickah Chavez, 19, of Artesia, N.M., was indicted on methamphetamine trafficking charges. If convicted, he faces a maximum of 20 years in prison. Chavez was arrested on Jan. 23, 2014.
Gabriel Gonzales, 25, of Roswell, N.M., was indicted on methamphetamine trafficking and firearms charges. If convicted, he faces a maximum penalty of 20 years in prison on the methamphetamine charge and a mandatory minimum of five years in prison on one of the firearms charges. Gonzales is in state custody on unrelated charges and will be transferred to federal custody.
Ediberto Guzman, 60 of Carlsbad, N.M., was indicted on a methamphetamine trafficking charge. If convicted, he faces a mandatory minimum of ten years to life in prison. Guzman was arrested today.
Ronnie Joe Lopez, 29, of Odessa, Tex., is charged with marijuana trafficking and firearms charges. If convicted, he faces a maximum penalty of five years in prison on the marijuana charges and a mandatory minimum of five years in prison on one of the firearms charges. Lopez was arrested today.
Israel Mireles-Rivera, 32, a Mexican national illegally in the United States and residing in Hagerman, N.M., was indicted on methamphetamine trafficking and firearms charges. If convicted, he faces a mandatory minimum of ten years to life in prison on the methamphetamine trafficking charges and a maximum of ten years in prison on the firearms charge. Mireles-Rivera was arrested on Oct. 17, 2013 on a criminal complaint and is detained pending trial.
Michael Ortiz, 44, of Carlsbad, N.M., was indicted on a methamphetamine trafficking charge. If convicted, he faces a mandatory minimum of ten years to a maximum of life in prison. Rodriguez was arrested on Jan. 23, 2014.
Sandra Rodriguez, 36, of Roswell, N.M., was indicted on a methamphetamine trafficking charge. If convicted, she faces a mandatory minimum of ten years to a maximum of life in prison. Rodriguez was arrested today.
Felipe Salamanca, 42, of Artesia, N.M., is charged with unlawful possession of firearms in a criminal complaint. If convicted, he faces a maximum penalty of ten years in prison. Salamanca was arrested today.
Dominic Sedillo, 22, of Roswell, N.M., was indicted on methamphetamine charges. If convicted, he faces a mandatory minimum of five years to a maximum of 40 years in prison. Sedillo was arrested today.
Defendants Charged in State Cases
The following defendants, who have been arrested, are charged in criminal complaints filed in the 5th Judicial District Court for the State of New Mexico:
Patrick Acevedo, 20, of Carlsbad, N.M.
Albert Armijo, 21, of Carlsbad, N.M.
Karen Bucy, 54, of Carlsbad, N.M.
Odilon Campana-Campos, 46, of Ruidoso, N.M.
Cliff Davis, 27, of Carlsbad, N.M.
Dusty Davis, 25, of Artesia, N.M.
Marlene Davis, 45, of Loving, N.M.
Brian Devine, 19, of Carlsbad, N.M.
Marcos Franco, 45, of Carlsbad, N.M.
Joselyn Garcia, 28, of Carlsbad, N.M.
Jose Grado, 31, of Artesia, N.M.
Debra K. Harris, 48, of Carlsbad, N.M.
Kyle Henry, 20, of Artesia, N.M.
Lorinda Hernandez, 49, of Carlsbad, N.M.
Christina Martinez, 26, of Carlsbad, N.M.
Reynaldo Martinez, 26, of Carlsbad, N.M.
Dillon McLaughlin, 30, of Artesia, N.M.
Adan R. Molinar, 36, of Carlsbad, N.M.
Chris Montes, 35, of Artesia, N.M.
Jared Moore, 32, of Carlsbad, N.M.
Jeremy A. Morgan, 24, of Carlsbad, N.M.
George Munoz, 18, of Carlsbad, N.M.
Gonzalo Rodriguez, 20, of Artesia, N.M.
Jesus Sanchez, 26, of Carlsbad, N.M.
Rhonda Snowden, 49, of Artesia, N.M.
Anna Sola, 42, of Carlsbad, N.M.
Josephine Tatum, 37, of Carlsbad, N.M.
Joe Tiller, 51, of Carlsbad, N.M.
Dendall Whiteman, 25, of Artesia, N.M.Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Former President of Wyoming Area Education Association Sentenced to Prison for Embezzlement of Union FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lisa Barrett, age 48, of Shavertown, Luzerne County, was sentenced today in Scranton by Senior United States District Court Judge James M. Munley to serve 12 months in prison for embezzlement of funds from a labor organization.
Barrett, the past president of the Wyoming Area Education Association (WAEA), was charged with, previously, and admitted to, converting labor union funds to her own use from 2006 to 2012. Barrett resigned as president of WAEA in March 2013. Barrett has made restitution to the WAEA in the amount of $59,273.
In addition to the prison term, Senior Judge Munley also ordered that Barrett be supervised by a probation officer for two years following her prison sentence.
The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Former Philadelphia Police Officer Convicted in Cover UpRead the Press Release
PHILADELPHIA - Robertito Fontan, 42, a former narcotics officer with the Philadelphia Police Department, was found guilty today of two counts of making false statements to federal investigators concerning his romantic relationship with one of the police department’s confidential informants.
In 2003, Fontan recruited Person #1 to become a confidential informant and recommended her as a confidential informant to other law enforcement officers. Several months later, Fontan became intimately involved with Person #1. During their relationship, Fontan gave gifts and money to Person #1. In 2007, the Drug Enforcement Administration (ADEA@) began investigating Person #1=s former paramour, a suspected drug dealer, and Fontan was assisting with the investigation.
In 2008, the FBI began investigating a suspected leak of information in the DEA investigation. As part of the leak investigation, the FBI interviewed Fontan about his intimate relationship with Person #1. The jury found that Fontan lied to agents about his relationship with Person #1 and about giving gifts and money to Person #1.
Fontan faces a maximum possible sentence of 10 years in prison. A sentencing hearing is scheduled for April 28, 2014.
The case was investigated by the FBI and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Neuman Leverett.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Internet Vendor Convicted of Scheme to Defraud Customers of $5 MillionRead the Press Release
Daniel Greenberg, the president and owner of Classic Closeouts, LLC, a now-defunct Internet seller of discounted clothing and personal items, was convicted today by a federal jury in Central Islip on all thirteen counts for defrauding thousands of customers through unauthorized use of the credit and debit card numbers they had provided in connection with a purchase at an earlier time. The jury’s verdict followed a two-week trial in United States District Court before the Honorable Arthur D. Spatt. Greenberg was convicted of eight counts of wire fraud, one count of access device fraud, one count of aggravated identity theft, and three counts of money laundering.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Postal Inspector-in-Charge, United States Postal Inspection Service, New York Division.
“Daniel Greenberg’s Classic Closeouts was a classic scam. When his business ran into trouble, Greenberg helped himself to his customers’ credit card numbers and then had the audacity to fight them when they tried to have the charges removed,” stated United States Attorney Lynch. “We will tirelessly pursue justice for consumers who trust online merchants only to have that trust betrayed.” Ms. Lynch extended her grateful appreciation to the Postal Inspection Service and the Federal Trade Commission for their assistance in the investigation. The FTC brought this matter to the attention of the U.S. Attorney’s Office after having filed a parallel civil action.
The evidence at trial established that from approximately June 2008 through at least April 2009, Greenberg charged victims’ credit cards or debited their bank accounts on over 60,000 occasions, without the victims’ authorization and without the victims purchasing merchandise. Greenberg used credit and debit card information retained by Classic Closeouts from earlier purchases and then fraudulently charged their credit or debit cards, often charging the same card multiple times over the course of several weeks and months. When victims disputed the unauthorized charges with their credit card companies and banks, Greenberg falsely asserted that the charges were valid because the customers had enrolled in an alleged “frequent shopper club” that he claimed required a one-time charge. As a result of Greenberg’s false representations, some of the victims’ credit card companies and banks declined to issue credits despite the victims’ protests, and certain victims were pressured into paying the fraudulent charges plus late fees and interest.
When sentenced Greenberg faces up to 20 years’ imprisonment for each of the eight counts of wire fraud, 15 years’ imprisonment on the access device fraud charge, up to 10 years’ imprisonment for the money laundering charges, and two years’ mandatory imprisonment on the aggravated identity theft charge to run consecutively to sentences imposed on the other charges.
The government’s case was prosecuted by Assistant United States Attorneys Walter Norkin and Charles Rose.
This prosecution was the result of efforts 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 is 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. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
DANIEL GREENBERG
Age: 40
Lawrence, New York
Former Glendale Police Officer and Associate Indicted for Crimes Related to Cocaine Trafficking, Including Lying to the FBI and Illegally Accessing Crime DatabasesRead the Press Release
DENVER – Scott T. Black, age 39, of Firestone, Colorado, and Oscar S. Garcia, age 35, of Aurora, Colorado, were indicted by a federal grand jury on charges related to drug trafficking, making false statements, and unauthorized access of law enforcement databases, U.S. Attorney John Walsh, FBI Denver Special Agent in Charge Thomas Ravenelle and DEA Denver Division Special Agent in Charge Barbra Roach announced. Garcia was arrested early Thursday morning without incident. Black, a Glendale Police Officer at the time of the alleged crimes, turned himself in to FBI Special Agents at the Lakewood Police Department mid-day Thursday. Garcia appeared in U.S. District Court in Denver yesterday afternoon, where he was advised of his rights and the charges pending against him. Black is scheduled to appear in U.S. District Court in Denver at 2:00 p.m. this afternoon before U.S. Magistrate Judge Kristen L. Mix to be advised of his rights and the charges pending against him. The U.S. Attorney’s Office is seeking detention.
According to the indictment, which was returned by a federal grand jury on January 6, 2014, but restricted from public view prior to the arrest of the defendants, Garcia is charged with trafficking cocaine to people known and unknown to the grand jury. Black allegedly assisted Garcia with the cocaine trafficking by using his official law enforcement position to request Glendale Police Department dispatchers to “run” license plates through the Colorado Crime Information Center (CCIC) and the National Crime Information Center (NCIC). This was done in order to facilitate the defendants’ alleged drug trafficking. Black is also accused on two separate instances of lying to an FBI agent. The trafficking conspiracy alleged in the indictment allegedly started in March of 2011 and continued through December 2013. To the best of our knowledge no other Glendale Police Officers were involved in this incident.
Garcia faces three counts of possession with intent to distribute and knowingly distribute cocaine, which carries a penalty of not more than 20 years in federal prison, and up to a $1,000,000 fine, per count. He faces one count of use of a communications facility to facilitate drug trafficking, which carries a penalty of not more than 4 years imprisonment, and up to a $250,000 fine. He faces one count of intentionally gaining unauthorized access to a computer, which carries a penalty of not more than 5 years imprisonment, and up to a $250,000 fine. Garcia faces one count of conspiracy to possess with intent to distribute cocaine, which carries a penalty of not less than 5 years and not more than 40 years in federal prison, and up to a $5,000,000 fine. Lastly, defendant Oscar Garcia faces one count of conspiracy to gain unauthorized access to a computer data base. That crime carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine.
Black faces one count of use of a communications facility to facilitate drug trafficking, which carries a penalty of not more than 4 years imprisonment, and up to a $250,000 fine. He faces two counts of intentionally gaining unauthorized access to a computer, which carries a penalty of not more than 5 years imprisonment, and up to a $250,000 fine per count. Black faces two counts of knowing and willfully making a materially false representation (to an FBI agent), which carries a penalty of not more than 5 years imprisonment, and up to a $250,000 fine. Lastly, the defendant faces one count of conspiracy to gain unauthorized access to a computer data base. That crime carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine.
This case was investigated by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Colorado Bureau of Investigation (CBI), and the Aurora Police Department. The Glendale Police Department cooperated during all aspects of the investigation.
The defendants are being prosecuted by Assistant U.S. Attorneys David Conner and Guy Till.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Former Employee Heads to Federal Prison for Defrauding Exxon Mobil of More Than $5 MillionRead the Press Release
HOUSTON – Garry W. Arnold, of Dayton, has been ordered to prison for more than five years following his conviction of defrauding Exxon Mobil, his former employer, and causing a loss of more than $5 million, announced United States Attorney Kenneth Magidson. Arnold pleaded guilty Friday, Sept. 20, 2013.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Arnold a 63-month sentence to be immediately followed by a three-year-term of supervised release. In handing down the sentence, Judge Hittner noted, "this has gone on long enough." He was further ordered to pay $5,548,015.80 in restitution.
Arnold, 62, was employed by the Exxon Mobil Chemical Company from 2004 through 2010 at the company’s Baytown Olefins Plant. His job responsibilities included overseeing the maintenance and repair of numerous large furnaces located at the plant, including ordering replacement parts and coordinating the purchase, delivery and installation of these parts.
Arnold also controlled and was part owner of Metal Blinds Unlimited Inc. During the relevant time period, Metal Blinds had minimal legitimate business operations, had no employees other than Arnold himself and it operated out of his residence.
Beginning in or around January 2004 and continuing through April 2010, Arnold carried out a fraudulent invoicing scheme which caused Exxon to pay more than $5.5 million for furnace parts and fabrication services that were never provided, were provided with materials already owned by Exxon or for which it paid an excessive amount. Arnold and another person shared the proceeds of the scheme by having Exxon send the payment checks to One Source Industrial, a company the other person owned. The other person then caused that company to make payments to Metal Blinds Unlimited, a sham corporation owned by Arnold. The other individual also made payments to Arnold for legitimate work done by One Source Industrial for Exxon and other clients, again by making regular payments by check to Metal Blinds.
In total, the scheme resulted in Exxon creating approximately 78 purchase orders and paying more than $5.5 million to One Source Industrial for work purportedly done by Metal Blinds. Arnold received more than $3.2 million in payments from One Source Industrial in association with these invoices. One Source Industrial also paid approximately $310,253.20 to Arnold as part of the concealed profit-sharing agreement.Previously released on bond, Arnold was taken into custody following the hearing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney John Pearson.
Former Contract Employee for U.S. Citizenship and Immigration Services Convicted in New Jersey for Theft, Sale of FormsRead the Press Release
NEWARK, N.J. — A federal jury returned guilty verdicts late Thursday, Jan. 23, 2014, against a former contract employee for U.S. Citizenship and Immigration Services (USCIS) for stealing hundreds of immigration forms from the warehouse where he worked and selling them for ultimate use as part of a criminal enterprise, U.S. Attorney Paul J. Fishman announced.
Martin Trejo, 47, of Rialto, Calif., was convicted of one count of conspiracy to steal government property and transport it in interstate commerce and one count of transportation of stolen goods in interstate commerce. The jury returned the verdict after less than two hours of deliberation following a one-week trial before U.S. District Judge Faith S. Hochberg in Newark federal court.
According to documents filed in this case and the evidence at trial:
While working as a contract employee for USCIS, Trejo stole hundreds of immigration forms from the warehouse where he worked and sold them to a conspirator. The conspirator then sold the forms to a criminal enterprise that used them to obtain hundreds of driver’s licenses for individuals in the country illegally and living in New Jersey and other states.
The investigation into the wider scheme has resulted in 13 convictions, with prosecutions ongoing.
The conspiracy count carries a maximum potential penalty of five years in prison; the transportation count carries a maximum potential penalty of 10 years in prison. Each count also carries a maximum $250,000 fine. Trejo is scheduled to be sentenced on April 29, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and agents of the Department of Homeland Security, Office of Inspector General, under the direction of Acting Special Agent in Charge Edward Nasiatka of the New York field office, with the investigation.
The government is represented by Assistant U.S. Attorneys Anthony Moscato and David M. Eskew of the U.S. Attorney’s Office Criminal Division in Newark.14-026
Defense counsel: John P McGovern Esq., Newark
Former Bookkeeper at Taupa Lithuanian Credit Union Charged with EmbezzlementRead the Press Release
A former external bookkeeper of Taupa Lithuanian Credit Union was charged today for engaging in a conspiracy that defrauded the credit union out of nearly $1 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Vytas Apanavicius, 44, of Mentor, was charged in a criminal information with one count of conspiracy to commit theft or embezzlement from a credit union.
Apanavicius owned VPA Accounting Inc., through which he provided bookkeeping and accounting services from 1995 through 2013. These services included recording month-end journal entries for general ledger accounts, paying and recording monthly expenses and compiling monthly balance sheets and income statements, according to the information.
From at least 2001, Apanavicius controlled six accounts at Taupa. In his role as external bookkeeper, Apanavicius became aware that Taupa CEO Alex Spirikaitis routinely deposited and transferred Taupa funds into member accounts to cover multiple overdrafts, according to the information.
Apanavicius then withdrew funds from his accounts and did not maintain sufficient balances to cover withdrawals. Spirikaitis deposited and transferred Taupa funds into Apanavicius’ accounts to cover his overdrafts and withdrawals, according to the information.
Spirikaitis caused Taupa to make approximately 72 false and fraudulent deposits and transfers into Apanavicius’ accounts. He also provided Apanavicius with approximately $25,000 in fraudulent proceeds from Taupa for the purchase of a new Jeep Cherokee, according to the information.
As a result of that conspiracy, Taupa and the NCUA suffered a loss of approximately $962,689, according to the information.
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last July and placed it into receivership due to its insolvency. Taupa had about 1,150 members and assets of approximately $24 million, according to court records.
Spirikaitis, 51, of Solon, Michael Ruksenas, 33, of Naples, Florida, and John Struna, 51, of Concord Township, have previously been charged for their roles in the conspiracy.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information 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.
Final Defendant Pleads Guilty in Identity Theft Tax Refund Fraud Scheme Involving Thousands of Patients’ Personal Identity InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Michael Ali Bryant, Sr., 41, of Lauderdale Lakes, pled guilty today for his participation in a stolen identity tax refund scheme. Sentencing is scheduled for April 11, 2014.
Specifically, Bryant pled guilty today to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Co-defendants Tiffany Shenae Cooper, 33, of Deerfield Beach, and Marquis Onigirin Moye, 24, of Pompano Beach, previously pled guilty to the same two charges. Cooper is scheduled to be sentenced on February 28, 2014, and Moye is scheduled to be sentenced on March 28, 2014. At sentencing, each of the defendants face a maximum of ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Michael Bryant's wife and co-defendant Latina Rashawn Bryant, 43 Lauderdale Lakes, previously pled guilty to one count of using an unauthorized access device, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for March 28, 2014.
Co-defendant Angela Dione Rosier, 41, of Coral Springs, previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2). Sentencing is scheduled for February 28, 2014.
According to documents filed in conjunction with today’s plea hearing, a confidential source (CS) initially approached Michael Bryant and inquired about purchasing narcotics. Bryant told the CS that he did not have any narcotics but that he did have personal identity information (PII) that he was willing to sell to the CS. The CS made a controlled purchase of ten pages (each page containing approximately 20 to 25 names) of PII. Bryant instructed the CS on how to commit tax fraud using the PII, and provided the CS with specific instructions on what information to enter into the web pages of the internet-based tax services to obtain a tax refund. An examination of the PII revealed that it was from a medical services provider.
Co-defendant Rosier was an employee of the medical services provider. Co-defendant Cooper spoke to Rosier to obtain user names and passwords for current employees of the medical services provider. Cooper admitted to illegally logging on to the medical services provider’s computer network and downloading PII for the purpose of committing various types of fraud. She was assisted in her activities by Rosier and co-defendant Moye.
Subsequent investigation by the IRS identified 226 false claims linked to Michael Bryant. These false claims were for refunds totaling $775,879. Seventy eight of the false claims were paid resulting in a loss to the IRS of $221,576.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Felon Who Possessed Multiple Firearms Sentenced to 37 MonthsRead the Press Release
Anchorage, Alaska-United States Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court to 37 months in prison for being a felon in possession of firearms.
Patrick Leu Tauanuu, 38, of Anchorage, Alaska, was sentenced to the prison term by Chief United States District Court Judge Ralph R. Beistline for possessing two short barrel shotguns after having been convicted of a felony offense. Upon being released from prison, Tauanuu will be on supervised release for three years.
In sentencing Tauanuu, Judge Beistline commented on the seriousness of Tauanuu’s crime, noting that Tauanuu’s actions and those like it endanger the whole community.
According to Assistant United States Attorney Stephanie C. Courter, who prosecuted the case, Tauanuu previously pled guilty to illegally possessing two short barrel firearms. Specifically, Tauanuu admitted possessing a 12 gauge shotgun and a .410 gauge shotgun, both of which had barrels of less than 18 inches. Tauanuu also admitted that he had positioned one of the shotguns for protection. Tauanuu’s possession of the firearms was prohibited due to his prior felony conviction for assault in the third degree.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for their investigation of this case.
Federal Court Sentences Man on Illegal Re-entry ChargeRead the Press Release
DAVENPORT, IA- On January 24, 2014, Manuel Partida Garcia, age 32, a citizen of Mexico, was sentenced by United States District Court Judge John A. Jarvey to 36 months imprisonment, after pleading guilty to illegal re-entry into the United States, announced United States Attorney Nicholas A. Klinefeldt. Partida Garcia was also ordered to serve three years of supervised release and pay $100 towards the Crime Victims Fund. Partida Garcia was found in the United States after being convicted in Marshall County, Iowa for possession of methamphetamine with the intent to deliver, eluding and carrying weapons. Partida was also found to be an aggravated felon based on a prior assault conviction out of the state of Washington.
This case was investigated by the United States Department of Homeland Security-Immigration and Customs Enforcement, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Euclid Woman Sentenced to Prison for Tax ConspiracyRead the Press Release
A Euclid woman was sentenced to 19 months in prison and ordered to pay $74,904 in restitution for her role in a scheme to file false and inflated income tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Kenyada Spates, of Euclid, Ohio, was previously found guilty of one count of conspiracy to make false claims and nine counts of making false claims.Spates admitted to helping prepared 35 false income tax returns. Spates recruited friends and relatives to use as income tax refund claimants. Part of the refund money was deposited into accounts controlled by Spates, according to court documents
The case is being presented by Assistant United States Attorney Gregory C. Sassé after an investigation by agents of the Office of Inspector General for Tax Administration of the Department of the Treasury and by the agents of the Criminal Investigation Division of the Internal Revenue Service of the Department of the Treasury.
Eldon Man Sentenced to 20 Years in Prison for Meth Conspiracy, Attempted Jail EscapeRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Eldon, Mo., man has been sentenced in federal court for his role in a large-scale conspiracy to distribute methamphetamine in the Cole and Callaway County area, as well as his attempted jail escape.
Mitchell Lynn Atterberry, 36, of Eldon, was sentenced by U.S. District Judge Beth Phillips on Thursday, Jan. 23, 2013, to 20 years in federal prison without parole.
On Aug. 15, 2013, Atterberry pleaded guilty to conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, conspiracy to escape from custody, and attempted escape from custody.
Conspiracy to Distribute Methamphetamine
Law enforcement officers executed two search warrants at Atterberry’s residence on Nov. 15, 2010, seizing a total of 8.19 grams of meth and $6,050.
Atterberry, riding his motorcycle, led Jefferson City, Mo., police officers on a high-speed chase on June 2, 2011, which reached speeds up to 100 miles per hour. Atterberry crashed his motorcycle and, after a brief pursuit on foot, was arrested. Officers saw Atterberry discard 2.04 grams of meth during the foot chase. Officers also found $8,190 in six separate envelopes, including what appeared to be a drug ledger, in Atterberry’s motorcycle.
Atterberry, driving a Pontiac, was pulled over by a Holts Summit, Mo., police officer for a routine traffic stop on Feb. 11, 2012. During the stop, while the officer returned to his patrol vehicle, Atterberry fled. Atterberry led officers on a high-speed pursuit through Holts Summit, New Bloomfield and Fulton at speeds up to 163 miles per hour. Atterberry fled from his vehicle and was apprehended after a brief chase on foot. Officers searched the vehicle and found .29 of a gram of methamphetamine and $2,986.
Atterberry was pulled over by Jefferson City, Mo., police officers on May 22, 2012. Officers searched the vehicle and its occupants and found 13.02 grams of methamphetamine, a loaded .40-caliber Hi Point pistol, $2,234 and $900 in counterfeit currency.
Co-defendant Tami Jo Zeugin, 38, of Fulton, Mo., pleaded guilty on Jan. 9, 2014, to her role in the conspiracy to distribute methamphetamine and awaits sentencing.
The total methamphetamine seized from Atterberry and Zeugin during the course of the investigation is 54.14 grams. Officers also seized a total of $20,939.
Conspiracy to Escape from Custody
Sheriff’s deputies at the Morgan County jail, where Atterberry was detained, received a tip on Nov. 14, 2012 and searched Atterberry’s cell. Atterberry’s cellmate was Steven Pyykola of Springfield, Mo. Pyykola was convicted of three state murder charges and is serving three consecutive life sentences without parole.
Deputies discovered that the cell window had been damaged. The metal support beam had been cut most of the way through. They also found a 10-inch saw blade in the mat on the top bunk of the cell and a smaller two-inch saw blade that appeared to have broken off the larger blade.
Authorities reviewed telephone calls that Atterberry and Pyykola made to co-defendant Amanda Leigh Lesh, 35, of Jefferson City. They asked Lesh to purchase saw blades and deliver them to the jail underneath their second story window. Atterberry and Pyykola would then slide a string out of a hole that had been made in the window to the ground where Lesh would tie on the items and they would pull them up and in through the window. Lesh also made references to picking up the two after the escape and buying them clothes to wear.
On Nov. 13, 2012, Atterberry told Lesh in a recorded telephone conversation that they “worked on it late last night, couldn’t get it done” and in a later call that day said they hoped to get it done “by tonight.” The next day, authorities received the tip about the escape plans.
Lesh pleaded guilty to her role in Atterberry’s unsuccessful escape attempt and was sentenced on Sept. 26, 2013, to time served.
This case is being prosecuted by Assistant U.S. Attorney Lauren Kummerer. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Holts Summit, Mo., Police Department, the Fulton, Mo., Police Department, the Mid-Missouri Drug Task Force, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Missouri State Highway Patrol, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department and the U.S. Marshal’s Service.
El Paso Attorney Marco Delgado Sentenced to Maximum 20 Years in Federal Prison for Multi-Million Dollar Money Laundering SchemeRead the Press Release
In El Paso this morning, 47-year-old El Paso attorney Marco Antonio Delgado, a.k.a. Marco Delgado Licon, was sentenced to the maximum 20 years in federal prison after a jury convicted him of conspiracy to launder up to $600 million in illegal drug proceeds announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis Ulrich.
In addition to the prison term, U.S. District Senior District Judge David Briones ordered that Delgado pay a $25,000 fine and be placed under supervised release for a period of three years after completing his prison term.
In October 2013, a jury convicted Delgado of conspiracy to commit money laundering. Based on evidence presented during trial, the jury found that from a period of time between 2007 and 2008, Delgado conspired with other individuals to launder $600 million in illegal drug proceeds for members of the Milenio Drug Trafficking Organization. Two episodes of money laundering demonstrated to the jury included a Department of Homeland Security and Carroll County (GA) Sheriff’s Department seizure in September 2007 of $1,000,000 in U.S. Currency traveling from Atlanta, GA, to Mexico via El Paso; and, an HSI seizure of $50,000 in drug proceeds, in July 2008, in Chicago, IL, which was transported to El Paso and deposited in Delgado’s Attorney Interest on Lawyers’ Trust Account (IOLTA) bank account.
Delgado has remained in federal custody since his arrest in November 2012.
Delgado is currently set to go to trial again on March 31, 2014, based on a separate superseding indictment, returned on Wednesday, which charges him with three wire fraud counts and 16 money laundering counts—seven of which allege intent to conceal proceeds of illegal activity and nine of which allege spending of proceeds derived from illegal activity. According to the superseding indictment, in January 2010, Delgado, as a legal representative of FGG Enterprises, Inc. (FGG) signed a $121 million contract between FGG and the Comision Federal de Electricidad (CFE), a Mexican-state-owned utility company, for the acquisition and maintenance of equipment at the Agua Prieta II power plant located in Agua Prieta, Sonora, Mexico. Pursuant to the agreement, payments from CFE to FGG were to be deposited into a FGG bank account located in El Paso.
The superseding indictment alleges that Delgado, for the purpose of personal enrichment and without the consent of the sole owner of FGG, submitted a fraudulent written request to CFE in Mexico which caused two wire transfers—one on March 8, 2010, in the amount of $20 million and one on July 6, 2010, in the amount of $12 million—to be deposited into a bank account he controlled located in the Turks and Caicos Islands. The superseding indictment further alleges that Delgado subsequently wire transferred approximately $1.9 million from the Turks and Caicos Island bank account to bank accounts in El Paso; Taos, NM; and, Pittsburgh, PA, in order to either conceal the nature, location, source or ownership of the proceeds, or spend the proceeds, derived from his scheme.
Each wire fraud count and money laundering (intent to conceal) count call for up 20 years in federal prison upon conviction. Each of the money laundering (spending) counts call for up to ten years in federal prison upon conviction.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This prosecution resulted from an investigation by the Homeland Security Investigations (HSI). Assistant United States Attorneys Debra Kanof and Anna Arreola are prosecuting these cases on behalf of the Government.East St. Louis Trucking Company Owner Sentenced for Making False StatementsRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that William Patrick “Pat” Clark, 40, of Worden, IL, the owner, operator, and president of Clark Trucking and Excavation, LLC, which was located at 912 Market Street in East St. Louis, Illinois, was sentenced to 33 months in prison, to be followed by 3 years of supervised release, a $1,000 special assessment, and ordered to make restitution to his truck drivers in the total amount of $273,118.43. In a September 2013 trial, a jury found Clark guilty on ten felony counts charging him with making false statements.
Clark unlawfully profited from a scheme in which he submitted to the Missouri Department of Transportation false payroll certifications claiming to have paid Davis-Bacon Act required prevailing wages to his employees on the federally funded I-64 Highway project. Clark cheated his employees by paying only about $15 per hour, rather than the required $35.45 per hour (without approved fringe benefits) for truck drivers on the project. Nine of his drivers testified at trial. Clark also signed a sworn affidavit falsely claiming satisfaction of labor laws pertaining to the payment of wages to workers in connection with the I-64 project. Clark Trucking had collected about $1.6 million for its hauling work.
The charges in this case followed an investigation by the U.S. Department of Labor, Office of Inspector General-Office of Labor Racketeering and Fraud Investigations. The case was handled by Assistant United States Attorneys Michael J. Quinley and Stuart Zander.
Drug Trafficking Fugitive Sentenced to 42 Months in Federal PrisonRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Rodolfo Naranjo, age 53, a former resident alien from Mexico who resided Wenatchee, Washington, was sentenced for Conspiracy to Distribute Cocaine and Failure to Appear in a case that reaches back to 1994. Senior United States District Court Judge Fred Van Sickle sentenced Naranjo to a 42 month term of imprisonment, to be followed by a 36 month term of court supervision after he is released from Federal prison.
Based on information disclosed during the court proceedings, this case arose from a joint federal and state investigation of cocaine smuggling through north central Washington into Canada. In the fall of 1994, law enforcement officers obtained historical evidence of Naranjo's involvement in past shipments of cocaine and information about his expected future deliveries using sources of supply in California and Mexico. Thereafter, on December 2, 1994, Naranjo delivered two kilograms of cocaine to an individual who was cooperating with law enforcement officers. Naranjo was subsequently arrested and charged by Federal indictment on February 7, 1995. Following his court appearance on the indictment, Naranjo was released on bond and fled to Mexico. He was thereafter charged by Federal indictment for Failure to Appear.
Naranjo remained a fugitive until April 26, 2013 when he was arrested at an airport in Dallas, Texas, as he attempted to enter the United States from Mexico. The United States Marshal Service returned Naranjo to the Eastern District of Washington and he entered guilty pleas to the two charges on October 17, 2013.
Michael C. Ormsby stated, "Drug trafficking is a serious Federal offense, particularly when it involves smuggling activities across international borders. Individuals charged with a Federal offense will be brought to justice even if, as in this case, it over 18 years. Those who chose to flee from justice should know that they will be located, arrested, and prosecuted for their criminal conduct."
This investigation was conducted by the Federal Bureau of Investigation, the United States Customs Service, the United States Border Patrol, and the North Central Washington Narcotics Task Force. The case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney for the Eastern District of Washington.
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96-CR-00008-FVSDominican Man Sentenced for Social Security and Passport FraudRead the Press Release
BOSTON - A Dominican man was sentenced today for his theft of an American citizen’s identity to obtain a U.S. passport and more than $60,000 in Social Security benefits.
Antonio Pulinario Brea, 55, was sentenced by U.S. District Court Judge Denise J. Casper to 10 months in prison and ordered to pay $60,455 in restitution. In November 2013, Pulinario Brea pleaded guilty to theft of public money and two counts of making a false statement in a passport application.
Beginning in 2001, Pulinario Brea, who was born in the Dominican Republic and later came to the United States, stole the identity of an American citizen and used it to obtain a driver’s license, Social Security card, and passport in the citizen’s name. Pulinario Brea also used the citizen’s identity to obtain more than $60,000 in Social Security disability benefits that he would not have been entitled to receive under his true identity.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and David Hall, Special Agent in Charge of the U.S. Department of State’s Bureau of Diplomatic Security’s Boston Field Office, made the announcement today. The case was prosecuted by Special Assistant United States Attorney Timothy Landry of Ortiz’s Major Crimes Unit.District Man Pleads Guilty to Sexual Abuse, Admits Accosting 10-Year-Old and 12-Year-Old GirlsSeparate Incidents Took Place in 2012Read the Press Release
WASHINGTON – David Gantt, 29, of Washington, D.C., pled guilty today to charges stemming from his sexual abuse of two girls in separate incidents during the summer of 2012, U.S. Attorney Ronald C. Machen Jr. announced.
Gantt pled guilty in the Superior Court of the District of Columbia to one count of attempted second-degree child sexual abuse and one count of misdemeanor sexual abuse. He is scheduled to be sentenced by the Honorable Robert E. Morin on April 18, 2014. He faces up to five-and-a-half years in prison. He will also be required to register as a sex offender for life.
According to the government’s factual proffer at today’s plea hearing, in July 2012, Gantt molested a 12-year-old girl in the laundry room of an apartment building in Southeast Washington. Approximately one month later, Gantt inappropriately touched a 10-year-old girl who was visiting a friend who lived in Gantt’s apartment.
In announcing the plea, U.S. Attorney Machen praised the work of the Metropolitan Police Department’s Youth Division, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Jason Manuel and Victim/Witness Advocate Veronica Vaughan. Finally, he commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted the case.
14-022Disbarred Attorney Pleads Guilty for Role in $28.3 Million Medicare Fraud SchemeRead the Press Release
A North Carolina woman has pleaded guilty for her involvement in a $28.3 million Medicare fraud scheme involving physical and occupational therapy services.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge Christopher Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Margarita M. Grishkoff, 59, of Charlotte, N.C., and formerly of southwest Florida, pleaded guilty today in the U.S. District Court for the Middle District of Florida to conspiracy to commit health care fraud. Her sentencing date will be set by the court. She faces a maximum penalty of 10 years in prison.
According to documents filed in the case, Grishkoff and her co-conspirators used various physical therapy clinics and other business entities throughout Florida and elsewhere to submit approximately $28.3 million in fraudulent reimbursement claims to Medicare from 2005 through 2009. Medicare paid approximately $14.4 million on those claims.
Grishkoff, a former attorney who was disbarred in 1997, was vice president, director and registered agent in Florida for a Delaware holding company known as Ulysses Acquisitions Inc. Grishkoff and co-conspirators used Ulysses Acquisitions to purchase comprehensive outpatient rehabilitation facilities and outpatient physical therapy providers, including West Coast Rehab Inc. in Fort Myers, Fla.; Rehab Dynamics Inc. in Venice, Fla.; Polk Rehabilitation Inc. in Lake Wales, Fla.; and Renew Therapy Center of Port St. Lucie LLC in Port St. Lucie, Fla., to gain control of these clinics’ Medicare provider numbers.
Working with co-conspirators in Miami and elsewhere, Grishkoff and her co-conspirators obtained identifying information of Medicare beneficiaries through paying kickbacks. They also obtained unique identifying information of physicians. Grishkoff and her co-conspirators then used this information to create and submit false claims to Medicare through the clinics Ulysses Acquisitions purchased. These claims sought reimbursement for therapy services that were not legitimately prescribed and not actually provided.
Grishkoff and co-conspirators also paid kickbacks to co-conspirators who owned other therapy clinics that were used to further the fraud scheme. For example, Grishkoff and co-conspirators used the clinics they controlled to submit false reimbursement claims to Medicare on behalf of Miami-based therapy clinics such as Hallandale Rehabilitation Inc., Tropical Physical Therapy Corporation, American Wellness Centers Inc., and West Regional Center Inc. Grishkoff and co-conspirators would retain approximately 20 percent of the money Medicare paid on these claims and pay the other 80 percent of the fraud proceeds to the co-conspirator clinic owners.
When Grishkoff and her co-conspirators were done using the clinics they acquired through Ulysses Acquisitions, they engaged in sham sales of the clinics to nominee or straw owners, all of whom were recent immigrants to the United States with no background or experience in the health care industry. Grishkoff and others did this in an effort to try to disassociate themselves from the fraudulent operations of their clinics.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorneys Christopher J. Hunter and Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant United States Attorney Simon A. Gaugush of the U.S. Attorney’s Office for the Middle District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .Couple Sentenced for Sex Trafficking A 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Stephanie Olean Chapman, 28, of Fairfax, Va., and Ronnie Pierre Holmes, 30, with no fixed address, were sentenced today to 132 and 168 months in prison, respectively, followed by five years of supervised release, for charges stemming from the prostitution of a 15-year-old girl throughout northern Virginia, Maryland and Washington, D.C.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge Liam O’Grady.
Holmes pleaded guilty on June 25, 2013 to a criminal information charging him with conspiracy to commit sex trafficking of a child. Chapman was convicted by a federal jury on Oct. 17, 2013 of conspiracy to commit sex trafficking of a child, sex trafficking of a child, and interstate transportation of a minor for the purposes of prostitution.
According to court documents and evidence adduced at Chapman’s trial, between Feb. 27, 2013 and March 12, 2013, Chapman and her boyfriend, Holmes, met a 15-year-old girl and recruited her to be a prostitute for them. During that time, Chapman and Holmes took sexually suggestive photographs of the girl, sent the photographs to potential customers, posted the photographs on Backpage.com, drove the girl to meet with customers at locations in Virginia, Maryland and the District of Columbia, and took half of the money paid to the girl after she engaged in sex with customers for money.
This case was investigated by the Federal Bureau of Investigation and the Fairfax County Police Department. Special Assistant United States Attorney Stacey Luck and Assistant United States Attorney Michael J. Frank 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.Convicted Felon Sentenced to 10 Years in Federal Prison on Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Troy L Antley, 44, of Providence, was sentenced today to the maximum sentence of 10 years in federal prison for being a convicted felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
Antley was arrested by Providence Police on June 2, 2013, following a brief but violent struggle with officers, after Rhode Island State Police Colonel Steven G. O’Donnell spotted Antley walking in the Smith Hill area with a loaded firearm stuck in his waistband.
At sentencing, U.S. District Court William E. Smith also ordered Antley to serve 3 years supervised upon completion of his prison term. Antley pleaded guilty on October 8, 2013, to one count of being a felon in possession of a firearm.
According to information presented to the court, after spotting Antley with the firearm, Rhode Island State Police Colonel Steven O’Donnell, unarmed at the time, alerted Providence Police and continued to follow Antley. Colonel O’Donnell continued to follow Antley after he entered a vehicle and began to drive away from the area. Responding officers quickly located and blocked Antley’s vehicle. As they did, Antley exited the vehicle and fled on foot. Several officers chased and quickly apprehended Antley, who fought with two of the officers while being detained.
A fully loaded .45 caliber handgun was recovered from the vehicle driven by Antley. The hammer on the gun was cocked back.
According to information presented to the court, Antley was previously convicted in R.I. state court on felony assault, robbery and drug trafficking charges.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
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Contact: 401-709-5357
[email protected]Connecticut Man Convicted of Tax Evasion and Conspiracy ChargesRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced that John Cote, formerly of Danielson, Conn., was convicted today of four counts of tax evasion along with conspiracy to defraud the IRS following a jury trial in the U.S. District Court for the District of Connecticut.
According to court documents and evidence produced at trial, Cote had not filed a timely or valid tax return for the years 1995 through 2009, despite earning income from his work as a consultant in the high technology welding industry. The evidence showed that Cote and his wife responded to IRS efforts to assess and collect taxes by concealing income and assets from the government and by submitting obstructive letters and other documents, including false criminal complaints against IRS employees. From 1998 to 2009, Cote caused the companies for which he worked to pay his compensation to nominee entities, including through accounts in Costa Rica and Sweden. Cote also used a nominee entity in his wife’s name to conceal income and assets from the IRS and in 2003, Cote's wife conveyed their personal residence to this entity.
Following the jury verdict, U.S. District Judge Vanessa Bryant scheduled Cote’s sentencing for April 16, 2014, and Cote remains detained pending sentencing. For each of the five counts of conviction, Cote faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000.
The case was investigated by special agents of IRS – Criminal Investigation. Trial Attorneys Jennifer Laraia, Melissa Siskind and Jeffrey McLellan of the Tax Division prosecuted the case.
Cleveland Attorney Charged with Tax ViolationsRead the Press Release
Attorney Ronald L. Rosenfield was charged in an information with failing to report and pay approximately $196,832 of employment taxes announced United States Attorney Steven M. Dettelbach. The case is assigned to United States District Judge John R. Adams in Akron.
The unpaid taxes consisted of income taxes and FICA taxes withheld from the wages paid by his law firm, Ronald Rosenfield Co., L.P.A., including his own wages, for the eighteen consecutive calendar quarters from December 2006 through March 2011, according to the information. The information also alleges that Rosenfield failed to report and pay an unspecified amount of additional employment taxes for all of the prior quarters dating back to June 2001.At all relevant times, Rosenfield retained a national payroll firm, which prepared the law firm’s required employment tax returns for him to file with the Internal Revenue Service. Rosenfield, however, did not file any of those returns and made no payments of the taxes reported on those returns, according to the information. Moreover, the information alleges that Rosenfield claimed credits on his personal income tax returns for his unpaid income tax withholdings.
Rosenfield, age 70, resides in South Euclid, Ohio, according to court documents.
The case is being prosecuted by Assistant United States Attorneys John M. Siegel and Justin J. Roberts, following an investigation by the Internal Revenue Service – Criminal Investigation, Independence, Ohio.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information 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.
Charleston Man Who Illegally Purchased Prescription Drugs Sentenced to Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Charleston pill dealer who illegally purchased powerful prescription painkillers in April 2012 was sentenced yesterday to six months in federal prison, announced U.S. Attorney Booth Goodwin. William Lewis Thornhill, II, 31, previously pleaded guilty in October to possession with intent to distribute oxymorphone, also known as “Opana.” Thornhill’s sentence was handed down by U.S. District Judge John T. Copenhaver, Jr. in Charleston. On April 4, 2012, Thornhill purchased approximately 50 40-milligram Opana tablets. Thornhill told police that he intended to sell the prescription pain tablets. The illegal transaction occurred in and around Kanawha City.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. 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.Chairman of Richardson, Texas, Oil and Gas Well Promotions Company Sentenced to 30 Years in Federal Prison on Conspiracy and Securities FraudRead the Press Release
DALLAS — David Kevin Lewis, the chairman and director of field operations of Always Consulting, Inc. (ACI), an oil and gas well promotions company with offices in Richardson, Texas, was sentenced this morning, by Chief U.S. District Judge Sidney A. Fitzwater, to 30 years in federal prison and ordered to pay approximately $2.5 million in restitution, following his conviction at trial in September 2013 on one count of conspiracy to commit securities fraud and 23 counts of securities fraud. Judge Fitzwater remanded Lewis, aka “David Shane Lewis” and “DW,” 52, of Albany, Kentucky, into custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lewis’s co-defendants in the case, Bruce Kyle Griffith, 59, of Dallas, and Thomas Alden Markham, Jr., 63, of Plano, Texas, each pleaded guilty to their roles and were sentenced in December 2013 to 100 months and 21 months, respectively. Griffith, who was the president and CEO of ACI, pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. Markham, ACI’s chief geologist, pleaded guilty to one count of misprision of a felony. Griffith, who is in custody, was also ordered to pay approximately $2.5 million in restitution and Markham, who must surrender to the Bureau of Prisons next month, was ordered to pay approximately $1.5 million in restitution.
Lewis, Griffith and Markham conspired together to scheme to obtain money and property by making untrue statements and omitting material facts to defraud investors, located throughout the United States, who purchased interests in well program units, representing fractional, undivided interests in oil, gas or other mineral rights and investment contracts.
They sent investment documents and monthly investment newsletters from ACI to induce investors to invest money and purchase interests in the Rattlesnake Springs Drilling Program or other oil and gas drilling programs. Rattlesnake, was one of several investment programs offered and sold by ACI to investors, was to be located in Osage County, Oklahoma.
They also used ACI sales employee “fronters” to contact prospective investors and referred interested and financially-able investors to ACI employee “closers,” including Lewis and Griffith, who contacted the interested investors to convince them to invest. The “fronters” were equipped with scripts, pitches and talking points all touting the investment and designed to make prospective investors believe that ACI’s programs were potentially profitable investments.
They also provided the ACI sales employees with a “do not call” list, entitled “Undercover Regulators,” which listed contact information of individuals the defendants suspected of being state or federal regulators posing as potential investors.
The defendants misapplied and converted the Rattlesnake Springs Drilling Program investor funds to their own use and benefit, and the use and benefit of others, including the purchase of real and personal property and to pay for expenses of other ACI programs.
The defendants falsely stated that: ACI would perform all necessary services to complete the Rattlesnake Springs Drilling Program; ACI would use investor funds to begin site preparation, drilling, testing and completion of the Rattlesnake Springs Drilling Program wells; ACI would pay all costs necessary to get the wells into production for approximately $3.5 million; ACI had influence inside the Osage Nation in Oklahoma and could acquire oil and gas leases on terms unavailable to others; pipelines had been laid; and Griffith begin in the oil and gas business in 1985 as a private pilot flying oil executives and equipment to foreign countries.
The defendants concealed from investors that: Rattlesnake investor funds were being comingled with funds from other ACI projects and were being used to pay operating expenses of other ACI projects; most of Rattlesnake’s investor funds had been misapplied and diverted an no longer available to drill the promised 20 wells; funds invested in Rattlesnake had been diverted, for the use and benefit of the defendants; ACI relied on investor funds to operate and upon production revenue from oil and gas wells.
ACI’s offering memorandum identified “DW” and “Griffith” as registered operators in Texas and Oklahoma, but omitted that “DW” was Lewis and that Lewis and Griffith weren’t registered to sell securities in Texas. ACI represented that “DW” (Lewis) had 25 years’ experience in finance, investing, management and the oil and gas industry, but omitted facts including: Lewis was a convicted felon, having been convicted in 2000 of securities fraud and conspiracy to commit mail fraud, in connection with oil and gas offerings; Lewis was under federal court orders to pay approximately $2.2 million in restitution to previously defrauded oil and gas investors; and Lewis was under an injunction barring him from violating federal securities laws in connection with oil and gas offerings.
ACI’s offering memorandum also noted that Griffith had 20 years’ experience in the oil and gas industry, having started out as a private pilot with a twin engine rating and instrument rating. Griffith, however, was never a pilot, had little experience in the industry, and in fact, was a convicted felon, having been specifically convicted in federal court of bank robbery in 1994 and conspiracy to possess and utter counterfeit federal reserve notes in 1989.
ACI’s offering stated that Markham had more than 30 years in the oil and gas industry as a geologist, supervisor and manager, but failed to disclose he was a convicted felon, having been convicted of mail fraud in 2000 in connection with an oil and gas offering, and that as part of his sentence, he was under court order to pay nearly $400,000 in restitution to defrauded investors.
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.
The case was investigated by the Texas State Securities Board (TSSB) and the FBI. Assistant U.S. Attorney Joseph Revesz and TSSB Enforcement Attorney Suzanne Steinmetz prosecuted.
Carjacker Exiled to over 9 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced James F. Honesty, age 25, Washington, D.C., today to 114 months in prison, followed by three years of supervised release, for carjacking and for being a felon in possession of a gun.
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; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks
According to Green=s plea agreement, in the early morning hours of June 6, 2012, the victim was in the 600 block of Audrey Lane in Oxon Hill, Maryland. The victim had retrieved some items from her car and was walking home when Honesty pointed a shotgun at her face and demanded her car keys. The victim gave Honesty the keys and he drove away in the victim’s car. Honesty was apprehended after police chased the stolen vehicle from Washington, D.C. to Cheverly, Maryland. Honesty and the other occupants of the car ran away after the vehicle crashed and Honesty was arrested nearby. Police recovered a 16 gauge shotgun with a sawed off barrel and a .380 caliber semi-automatic handgun in the vehicle. Both firearms were loaded and had one round in the chamber. Honesty was prohibited from possessing a firearm due to a previous felony conviction.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department and Prince George’s County State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau, who prosecuted the case.
Car Dealership Owner Pleads Guilty to Money Laundering of Drug Trafficking and Tax Fraud ProceedsRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces that Samih Abdel Rahman (51, Tampa) today pleaded guilty for his involvement in a money laundering conspiracy. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
Rahman was charged in a superseding indictment on March 14, 2013.
According to the plea agreement, Rahman is the owner/operator of Sam & Sons Auto Sales, Inc. (“Sam & Sons”), a used car dealership, located in Tampa. For a period of years, until about March 2013, Rahman, assisted by others, sold vehicles to customers who paid with cash from narcotics trafficking and/or fraudulently-obtained income tax refund fraud (“SIRF”) checks. Knowing that those payments were the results of illegal activity, Rahman laundered the money by conducting the car sales in a manner that concealed the illicit sources of the money. For instance, he titled the sold vehicles in the names of "straw purchasers" – persons other than the actual buyers and intended users of the vehicles. Rahman also disguised the identities of the true buyers by creating and processing false paperwork for the car sales, including fake Bills of Sale and payment receipts. Upon receiving cash payments of more than $10,000, Rahman further laundered the money by structuring the bank deposits in a way that avoided triggering bank reporting requirements. He also failed to report those transactions, as required under federal law, by a car dealership receiving specific amounts of cash during the sales of vehicles.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Matthew Jackson.
Camp Hill Marijuana Trafficker Sentenced to Federal PrisonRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that Andrew Angle, age 26, Camp Hill, was sentenced on January 23, 2014 to 27 months in prison for conspiracy to distribute marijuana.
According to United States Attorney Peter J. Smith, yesterday in Harrisburg, Chief U.S. District Court Judge Christopher C. Conner held a sentencing hearing in which he heard testimony by a DEA agent regarding Angle’s marijuana trafficking activities between December 2011 and March 2012. Following the testimony, Chief Judge Conner found Angle responsible for distributing between 5 kilograms and 10 kilograms of marijuana. The court also imposed fines of $500, two years of supervised release, and forfeiture of an additional $6,600 in funds.
Angle previously entered a guilty plea to conspiracy to distribute marijuana. Pursuant to the plea agreement, Angle forfeited over $50,000 in cash and drug proceeds seized from a bank account, safe deposit box, and locations affiliated with Angle.
The case was investigated by the DEA, Dauphin County Drug Task Force, and the Cumberland County Drug Task Force and prosecuted by Assistant United States Attorney Michael A. Consiglio.
Business Owner Admits to Failing to Pay Taxes to IRSRead the Press Release
LAREDO, Texas - Jorge Montemayor has entered a plea of guilty to failing to pay over employment taxes to the Internal Revenue Service (IRS), announced United States Attorney Kenneth Magidson.
According to the written plea agreement filed in the record of the case, Montemayor was the Chief Financial Officer (CFO) and one of the initial owners of a home health care business that provided basic skilled care. He acknowledged that in his role as CFO, he had authority to conduct financial transactions on behalf of GDM Home Health Inc. and exercised signatory authority on the company's bank accounts.
The indictment had alleged Montemayor was required to pay over employment taxes to the United States which include federal income tax, Social Security and Medicare taxes. As part of the plea, Montemayor admitted he knowingly and willfully failed to pay over to the IRS approximately $368,025.84 of federal income and FICA and Medicare taxes withheld from the taxable wages of employees of GDM Home Health Inc. for 2008. Montemayor admitted that had different business expense and personal choices been made, funds would have been available to pay these taxes.
He faces a statutory maximum penalty of five years in prison and a $250,000 fine at a sentencing date yet to be determined. He was permitted to remain on bond pending that hearing.
The investigation resulting in the charges against Montemayor was conducted by IRS - Criminal Investigation and FBI. Assistant United States Attorneys Elizabeth R. Rabe and Charles Escher are prosecuting the case.
Brothers Sentenced to Prison for Conspiracy to Illegally Export Firearm Parts to ThailandRead the Press Release
Two brothers who were arrested in June 2013 in connection with a conspiracy to illegally ship firearms parts to Thailand, were sentenced today in U.S. District Court in Seattle to prison terms for conspiracy, announced U.S. Attorney Jenny A. Durkan. NARES LEKHAKUL, 36, a lawful permanent resident of Bellevue, Washington, was sentenced to two years in prison and three years of supervised release. His brother, NARIS LEKHAKUL, 42, a Thai citizen arrested in June 2013 at SeaTac Airport was sentenced to three years in prison. He likely will be deported following his prison term. At sentencing U.S. District Judge Richard A. Jones told NARIS LEKHAKUL, “It was very clear to you … that you were not to engage in this activity… what is very troubling is that you continued to recruit others after being told this conduct was illegal.”
“These defendants used patsies and ruses to hide and protect their scheme to smuggle firearms parts to Thailand,” said U.S. Attorney Jenny A. Durkan. “They knew they were violating Thai and U.S. laws that seek to prevent smuggling. Stopping the illegal flow of weapons and weapons parts is a key priority for law enforcement.”
In their plea agreements the brothers admit that NARIS LEKHAKUL, while living in Thailand, identified the firearms parts he wanted ordered and shipped overseas. Initially the gun parts were sent to his brother NARES’ home in Bellevue, Washington, where NARES LEKHAKUL attempted to disguise the shipments which were sent on to Thailand. After one shipment was seized in 2011, NARIS LEKHAKUL recruited four other people to receive the shipments of firearms parts, disguise them, and send them on to Thailand. The co-conspirators did not obtain appropriate licenses to make the shipments. The co-conspirators would use fake names and fake invoices to try to avoid detection, and they packed various firearms parts in specific ways to try to avoid detection by x-ray scanners. Members of the group shipped various firearms parts with false labels. For example, in one instance they shipped magazines for .45 caliber handguns, while labeling them “Vented steel case for electronic components” or “replacement springs and metal caps for bottling machine.” Other shipments were labeled as “hobby parts,” or “glow in the dark marker sets.” In all, the group is believed to be responsible for more than 250 shipments of restricted firearms components, worth more than $750,000. The defendants did not ship any assembled firearms or entire firearms disassembled.
“These defendants purposely circumvented U.S. arms controls put in place to keep dangerous weapons out of the hands of transnational criminal organizations and foreign enemies,” said Brad Bench, special agent in charge of HSI Seattle. “Enforcing these export laws is a priority mission for our HSI special agents.”
In addition to the LEKHAKUL brothers, four additional defendants have also pleaded guilty. Witt Sittikornwanish, 24, a U.S. citizen residing in the Los Angeles area was sentenced to 10 months in prison, Sangsit Manowanna, 35, a U.S. citizen residing in the Los Angeles area, was sentenced to ten months in prison and Supanee Saenguthai, 35, a Thai citizen residing in Berkeley, California was sentenced to probation. Wimol Brumme, 41, a Thai citizen residing in Las Vegas will be sentenced on February 28, 2014.
The Department of State promulgates the United States Munitions List, which consists of categories of defense articles and services that cannot be exported without a license issued by the Department of State. The U.S. Munitions List includes the firearms’ parts and components shipped in this case. As a result, the export of firearms components requires an export license.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the U.S. Postal Inspection Service.
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Thomas Woods with assistance from the U.S. Department of Justice National Security Division, Counterespionage Section.
Belleville Man Sentenced to Federal Prison for Armed RobberyRead the Press Release
Case is One of Many Brought as a Result of United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that London M. Brown, 21, of Belleville, Illinois, was sentenced in federal district court in East St. Louis for two counts of Armed Robbery and one count of Possession of a Firearm in Furtherance of a Crime of Violence. The robbery counts are federal “Hobbs Act Robbery.” The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery, and is used by United States Attorney Wigginton’s office as a way to combat armed robbery in the Southern District of Illinois.
“I continue to be fully committed to using every tool at my disposal to ensure the peace and safety of Southern Illinois’ residents.” noted United States Attorney Wigginton. “As I said when I announced the Metro-East Armed Robbery Initiative, these robberies carry very severe federal penalties. Do this and you will find yourself in federal prison far from your family and friends.”
Brown was sentenced to 135 months in prison, to be followed by 5 years of supervised release, a $300 special assessment, and a fine of $600. There is no parole in the federal system. The charges relate to two armed robberies that Brown committed at the Circle K gas station at 2709 West Main, Belleville. Brown committed the first robbery on July 22, 2013, armed with a .22 caliber rifle. He committed the second robbery on August 15, 2013, armed with the same gun. During the first incident, Brown robbed the store clerk of $100. During the second, he robbed a different clerk of $358.
Police spotted Brown soon after the second incident; they chased Brown through several Belleville neighborhoods and finally found him hiding in some bushes, where they arrested him. Brown made statements to the police admitting to both armed robberies. Police found $362 in cash on his person, which has been transferred back to Circle K. Brown has been ordered to pay as restitution the balance he stole from Circle K.
The case was investigated by members of the Federal Bureau of Investigation and the Belleville Police Department. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Batesland Man Sentenced for Two Charges of Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Batesland, South Dakota, man convicted of two charges of Abusive Sexual Contact was sentenced on January 23, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
George American Horse, age 62, was sentenced to 72 months in custody for one charge and 48 months for the other charge, for a total of 120 months (10 years), 5 years of supervised release on each count to run concurrently, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
American Horse pled guilty to the charges on September 26, 2013. The charges relate to incidents that happened between 2009 and 2012 near Batesland, when American Horse engaged in sexual contact with a child who had not attained the age of 12.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
American Horse was immediately turned over to the custody of the U.S. Marshals Service.
Batesland Man Sentenced for Two Charges of Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Batesland, South Dakota, man convicted of two charges of Abusive Sexual Contact was sentenced on January 23, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
George American Horse, age 62, was sentenced to 72 months in custody for one charge and 48 months for the other charge, for a total of 120 months (10 years), 5 years of supervised release on each count to run concurrently, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
American Horse pled guilty to the charges on September 26, 2013. The charges relate to incidents that happened between 2009 and 2012 near Batesland, when American Horse engaged in sexual contact with a child who had not attained the age of 12.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
American Horse was immediately turned over to the custody of the U.S. Marshals Service.
Baltimore Conspirator Sentenced to 4 Years in Prison for Two Separate Bank Fraud SchemesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Nelly Dadson, age 23, of Baltimore, today to four years in prison, followed by five years of supervised release, for conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes. Judge Grimm also ordered Dadson to forfeit and pay restitution of at least $251,745.52.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.
According to her plea, from June 14, 2010 to March 11, 2013, Dadson, Paul Essel and others opened bank accounts in their own names and in the names of shell corporations that they controlled. Dadson, Essel and others used counterfeit checks that resembled convenience checks that had been stolen from mailboxes in Montgomery and Prince George’s Counties. The counterfeit checks contained names, addresses and account information that appeared on the convenience checks. Dadson deposited these counterfeit checks into accounts controlled by the conspirators and then withdrew funds from the accounts. Essel and other co-conspirators paid Dadson between $1,000 and $5,000 per check to deposit these checks and withdraw funds.
In addition, between June 14, 2010 and November 13, 2012, Dadson, Essel and others conspired to defraud The Home Depot, Inc. On multiple occasions, a conspirator placed an order by phone with a Home Depot store for flooring in amounts ranging from $2,500 to $8,000, using a stolen credit card number. Within a few days, a conspirator called to cancel the order and supplied the debit card number of a conspirator, including Dadson and Essel, requesting that the refund for the order be placed on the conspirator’s debit card. Dadson received 38 credits to her bank accounts totaling approximately $141,159.07, which she then withdrew and provided to Essel. Dadson was paid $600-$800 per transaction.
On April 29, 2013, law enforcement executed a search warrant at Dadson’s home and upon entry, saw Dadson attempting to flush several stolen credit cards down a toilet. Dadson admits that she used a victim’s name to make fraudulent transactions on approximately 10 credit cards and numerous gift cards in the victim’s name, purchasing electronics and other expensive items.
The total loss caused by Dadson’s conduct is between $200,000 and $400,000, involving between 10 and 50 victims.
Paul Essel, age 26, of Laurel, Maryland, pleaded guilty today to conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes. Essel faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. Essel has agreed to pay forfeiture and restitution of at least $418,435.48. U.S. District Judge Paul W. Grimm scheduled his sentencing for May 13, 2014.
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 U.S. Postal Inspection Service, U.S. Department of Treasury – Office of Inspector General and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Christen A. Sproule and Bryan E. Foreman and, who prosecuted the case.