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Friday 10 January 2014
Former Connecticut Resident Arrested After Attempting to Ship Sensitive Military Documents to IranRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MOZAFFAR KHAZAEE, also known as “Arash Khazaie,” 59, formerly of Manchester, Conn., has been arrested on a federal criminal complaint after he attempted to ship to Iran proprietary material relating to the U.S. Air Force’s F35 Joint Strike Fighter program and military jet engines that he had stolen from defense contractors where he had been employed. KHAZAEE was arrested yesterday at Newark Liberty International Airport in New Jersey, and the complaint was ordered unsealed this morning by a U.S. magistrate judge in Bridgeport, Conn.
As alleged in the criminal complaint, federal law enforcement agents began investigating KHAZAEE in November 2013 when officers with U.S. Customs and Border Protection Service (“CBP”), assisted by Homeland Security Investigations (“HSI”) special agents, inspected a shipment that KHAZAEE sent by truck from Connecticut to a freight forwarder located in Long Beach, Calif., which was intended for shipment from the U.S. to Iran. The documentation for KHAZAEE’s shipment indicated that it contained household goods. Upon inspecting the shipment, however, CBP officers and HSI personnel discovered that the content of the shipment primarily contained numerous boxes of documents consisting of sensitive technical manuals, specification sheets, and other proprietary material relating to the U.S. Air Force’s F35 Joint Strike Fighter program and military jet engines. Upon further investigation, law enforcement learned that KHAZAEE holds Iranian and U.S. citizenship and, as recently as August 2013, worked as an engineer for defense contractors, including firms that are the actual owners of the technical and proprietary documents and materials in KHAZAEE’s shipment.
KHAZAEE, who became a naturalized U.S. citizen in 1991 and holds a valid U.S. passport, recently moved from Connecticut to Indianapolis. He was arrested after flying from Indianapolis to Newark, before he was able to board a connecting flight to Frankfurt, Germany. KHAZAEE’s ticketed destination was Tehran, Iran.
KHAZAEE appeared today before U.S. Magistrate Judge James B. Clark III in Newark and is detained pending his transport to Connecticut for further proceedings.
The complaint charges KHAZAEE with transporting, transmitting and transferring in interstate or foreign commerce goods obtained by theft, conversion, or fraud. The charge carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.
This matter is being investigated by Homeland Security Investigations in New Haven and Los Angeles, U.S. Customs and Border Protection Service in Los Angeles, the U.S. Air Force’s Office of Special Investigations in Los Angeles and Boston, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation, with the critical assistance of the U.S. Attorney’s Offices for the Central District of California, Southern District of Indiana and the District of New Jersey, as well as HSI, CBP, and FBI in New Jersey, and HSI, FBI and DCIS in Indianapolis.
This case is being prosecuted by Assistant U.S. Attorney Stephen Reynolds of the District of Connecticut, Trial Attorney Brian Fleming of the Justice Department’s Counterespionage Section (CES), and Assistant U.S. Attorney Christopher Grigg of the U.S. Attorney’s Office for the Central District of California.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Columbia Resident Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
A former Columbia, Illinois, resident pled guilty on January 10, 2014, to a two-count Indictment charging him, in Count 1, with Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in violation of Title 18, United States Code, Section 2252(a)(2); and, in Count 2, with Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in violation of Title 18, United States Code, Section 2252(a)(4)(B), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Neil E. Purdy, 29, formerly of Columbia, IL, faces a term of imprisonment of not less than five (5) but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life on Count 1; and a term of imprisonment of not more than ten (10) years, a fine up to $250,000, and a term of supervised release of five (5) years to life on Count 2. In addition, upon his release from prison, Purdy must register as a sex offender. Sentencing is scheduled for May 16, 2014, in East St. Louis, Illinois. Purdy has been held without bond since his initial appearance on April 26, 2013.
The investigation began on February 7, 2012, when an individual contacted the Columbia Police Department to report that the defendant molested his/her fourteen year old child. He/she also told the Columbia police that he/she saw the defendant “google” the phrase, “where can I find really young porn.” He/she said that, when he/she asked the defendant “how long have you had this little problem,” Purdy responded “about three years.”
On February 16, 2012, Purdy, a member of the Navy Reserve with Top Secret clearance, admitted to Columbia Police Officers that he molested the fourteen year old. When questioned about searching for or possessing child pornography, Purdy admitted that he possessed videos and images of minors engaged in sexually explicit conduct on his laptop computer. Purdy subsequently led the officers to his apartment and allowed them to seize the laptop computer. A forensic review of Purdy’s laptop computer revealed twenty (20) videos and seven (7) images of minors engaged in sexually explicit behavior.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Columbia, Illinois, Police Department and the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force (SCETF). The case is assigned to Assistant United States Attorney Angela Scott.
Former Candidate for DeKalb County Superior Court SentencedRead the Press Release
ATLANTA - Michael Rothenberg has been sentenced on a charge of wire fraud for defrauding investors and using their money to fund his political campaign for a seat on the DeKalb County Superior Court.
“This defendant committed fraud at the very time that he was asking the voters of DeKalb County to trust him,” said United States Attorney Sally Quillian Yates. “Now he will spend time in federal prison.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Mr. Rothenberg will not only hold him accountable for his criminal conduct but will provide him with time to contemplate those actions and the harm that he caused others and, ultimately, to himself as well.”
According to United States Attorney Yates, the charges and other information presented in court: Michael Rothenberg, of DeKalb County, Ga., deceitfully persuaded the owners of WinterHawk Energy and Development Corporation (WinterHawk) into investing a total of $1.35 million. Rothenberg represented that the invested money would be placed in a trust account, controlled by him, which would be used to fund the trading of notes by large financial institutions. These notes, according to Rothenberg, would be split into “tranches,” and a ten percent profit would be earned each time a note or “tranch” was traded. Rothenberg told the investors that the investment involved no risk.
In fact, no investment existed and Rothenberg used the money paid by WinterHawk to fund his political campaign for a seat on the DeKalb County Superior Court as well as to pay personal expenses. He ultimately was unsuccessful in his bid for a judgeship. During the scheme, Rothenberg placated the investors’ concerns and lulled them into believing that the investment opportunity was real by emailing them fabricated bank statements, which made it appear as if the money they had invested remained in his trust account and that Rothenberg himself was wealthy. From time to time Rothenberg returned some of the money to the investors in response to their demands, and claimed falsely that he was making up for the shortfall by personally investing his own money. But Rothenberg did not invest his own money, and in fact spent the remaining proceeds – approximately $800,000 – without the investors’ knowledge or consent.
Rothenberg, 36, was sentenced today by United States District Judge Steve C. Jones to three years, five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $800,000. Rothenberg was convicted on these charges on September 11, 2013, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Steven D. Grimberg prosecuted the case. The DeKalb County District Attorney’s Office provided valuable assistance.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Bank Executive Admits Receiving Kickbacks from Oxford Collection AgencyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL GESIMONDO, 57, of Farmingdale, N.Y., waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to receiving kickbacks while he was an executive at Washington Mutual Bank.
According to court documents and statements made in court, Oxford Collection Agency was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania and Florida. Between 2007 and 2011, Oxford Collection Agency executives engaged in a multi-year scheme to defraud its lender, investors and clients. The investigation also revealed that Oxford Collection Agency was actively involved in bribing bank officials.
GESIMONDO was employed as Collection Manager of Business Banking at Washington Mutual Bank, and was in charge of outsourcing collection accounts to collection agencies. Washington Mutual Bank contracted with the Oxford Collection Agency to collect debts owed to it by consumers. Between May 2008 and May 2009, GESIMONDO received kickbacks from Oxford Collection Agency as a reward for providing Oxford Collection Agency with the bank’s debt collection business, often providing GESIMONDO with a percentage of the collected debt amount.
GESIMONDO pleaded guilty to one count of conspiracy to accept money as a reward in connection with a business transaction of a bank. Judge Underhill scheduled sentencing for April 4, 2014, at which time GESIMONDO faces a maximum term of imprisonment of five years.
Seven other individuals have been convicted as a result of this investigation and prosecution of criminal activity arising from Oxford Collection Agency and the debt collection industry.
This ongoing investigation is being conducted by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities, and Investor Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan and Special U.S. Attorney John McReynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Ashburn Jeweler Sentenced for Running $20 Million Mortgage Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Robert Mikail, 41, formerly of Ashburn, Va., was sentenced today to 52 months in prison, followed by three years of supervised release, for his role in fraudulent mortgage loan transactions involving approximately 36 properties in northern Virginia and nearly $20 million in fraudulently obtained loans. Mikail also was ordered to pay approximately $6 million in restitution to lenders and to forfeit to the government $882,387 in proceeds of his crimes.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
According to court records, Mikail conspired with others, including loan officers Bing-Sing “Cindy” Wang and Ging-Hwang “Felicia” Tsoa, to defraud mortgage lenders as part of a scheme to profit from fraudulently obtained mortgage loans and the purchase of residential real estate in northern Virginia. As part of the scheme, Mikail recruited five individuals, known as “straw buyers,” to serve as nominal purchasers in these transactions, and he worked with loan officers to falsify critical information on the straw buyers’ loan applications in order to get the loans approved and the transactions closed. In particular, virtually all of the fraudulent loan applications falsely identified Mikail’s Ashburn, Va., jewelry store, Opus Jewelry, as the borrower’s employer, which Mikail would then falsely verify to the lenders as part of the loan approval process.
In total, Mikail engineered the purchase of approximately 36 homes in and around Ashburn, Va., from 2005 through 2007, and obtained approximately $20 million in loan proceeds on the basis of fraudulent loan applications. While Mikail personally profited by approximately $882,387 from these transactions, all of the loans ultimately defaulted, resulting in approximately $6 million in losses to the lenders.
Co-conspirator Tsoa, formerly a loan officer at First Empire Mortgage in Fairfax, Va., and Lifetime Financial Services in Herndon, Va., was convicted of conspiracy and bank fraud charges on November 15, 2013, following a jury trial, and will be sentenced on February 7, 2014. Co-conspirator Wang, the owner of Lifetime Financial Services, pleaded guilty to related charges on November 20, 2012, and was sentenced to 24 months in prison on February 26, 2013.This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Paul J. Nathanson and Jasmine H. Yoon 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.Florida Residents Sentenced for Defrauding and Threatening Spanish-Speaking ConsumersRead the Press Release
Two individuals charged with running a telemarketing operation that defrauded Spanish-speaking consumers were sentenced yesterday in Miami federal district court, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced. Daniel Carrasco, 54, was sentenced to serve 121 months in federal prison, and Federico Martin Gioja, 45, was sentenced to serve 108 months in federal prison, for their operation of telemarketing companies in Argentina whose representatives consistently lied to consumers about products they would receive and threatened consumers with consequences of failure to pay for their shipments. In addition to their sentences of imprisonment, Carrasco and Gioja were ordered to forfeit a variety of assets, including approximately 20 pieces of real property, an automobile, motorcycles, a boat, a jet ski and firearms.
“Fraud is unacceptable,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “Fraud by threat and intimidation is particularly troublesome because it targets the perceived, but oftentimes real, vulnerabilities of those preyed upon. In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation or fines when the consumers refused delivery for products they had not ordered. Such tactics are intolerable. My office is committed and stands united with the department’s Civil Division, Consumer Protection Branch to stem such fraud.”
“The Department of Justice is committed to protecting all consumers from fraud, regardless of the language they speak,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will be particularly vigilant towards schemes that target specific populations, and we will track down fraudulent actors whether they commit their offenses from the United States or abroad, and whether they commit them in English or another language.”
Carrasco’s and Gioja’s telemarketers promoted products such as vitamins, lotions and English-language training products. They also promised buyers would receive valuable gifts such as expensive watches and perfumes, gift cards and medical assistance and insurance. However, the companies frequently did not deliver products ordered by consumers. Since the companies did not have many of the products they promised to send to consumers, they sent other products instead. Then, after consumers refused delivery of the companies’ shipments, the Argentinian phone room telemarketers called and falsely threatened consumers with arrest, deportation or fines on their gas and electric bills.
As part of their guilty pleas, Carrasco and Gioja admitted they routinely changed the names of the companies under which they did business to evade consumer complaints, regulators and law enforcement. A variety of state agencies contacted the businesses regarding their illicit practices. Those working with Carrasco and Gioja referred to these companies tainted by complaints as “burnt.” Rather than changing the “burnt” companies’ practices, Carrasco and Gioja incorporated new companies and started the same illegal practices again.
Also in pleading guilty, Carrasco and Gioja admitted their telemarketers falsely represented to consumers that they were affiliated with Spanish-language television networks. This fraud first came to light when the Spanish language network Univision informed the USPIS they believed a company was involved in a fraud scheme in which it misrepresented its affiliation with the network. Subsequently, USPIS investigated the case, submitted the affidavit in support of the criminal complaint and arrested the defendants.
“Sadly, these types of crimes create a distrust in people and leave victims feeling ashamed for falling for a scam,” said Inspector In Charge Ronald Verrochio for the U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service remains committed to pursuing crimes that are furthered via the U.S. mail and building trust with consumers. Postal Inspectors will investigate and bring the criminals to justice.”
Carrasco and Gioja were originally charged by criminal complaint and arrested on June 26, 2013. Both defendants were later indicted on July 25, 2013, and pleaded guilty on September 24, 2013. Carrasco and Gioja, and a third individual, Romino Tasso, also were named in a civil suit filed by the Justice Department. In the civil case, the Justice Department requested and obtained from the court a preliminary injunction barring further lies to consumers and freezing the assets of Carrasco, Gioja, Tasso and companies under their control.
Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the civil case. The criminal case was prosecuted by Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch and Assistant U.S. Attorney Timothy Abraham of the Southern District of Florida.
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.
Fifth Former Georgia Prison Officer Pleads Guilty in Connection with the Assault of an Inmate and the Cover-Up That FollowedRead the Press Release
Today, the Department of Justice and the U.S. Attorney for the Middle District of Georgia announced that Kerry Bolden, a former employee of the Correctional Emergency Response Team (CERT) at Macon State Prison (MSP) in Oglethorpe, Ga., pleaded guilty to civil rights and conspiracy charges. Bolden is the fifth former MSP officer to enter a guilty plea in connection with the ongoing federal investigation into a series of staff assaults of MSP inmates.
According to court documents filed in connection with his guilty plea, Bolden admitted that he and other CERT members escorted inmates to the gym, where CERT members would beat the inmates in retaliation for the inmates’ prior assault of a MSP officer. Bolden recognized that the inmates had been injured by CERT’s unjustified use of force, and he also knew, based on past experience, that CERT members would submit false reports to cover up their abuse of inmates. Bolden admitted that he personally submitted a false report, which omitted any reference to the unjustified force used on, or injuries inflicted upon, an inmate, who ultimately had to be transported by ambulance to a nearby hospital. MSP supervisors told Bolden to stick to his false report when interviewed by investigators regarding the assault of the inmate.
“ The majority of corrections officers serve their communities with honor and integrity,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “When officers abuse those entrusted to their care and then use their official position to cover it up, we will continue to investigate, prosecute, and hold them accountable.”
Bolden, who is 47, and from Vienna, Ga., faces a statutory maximum sentence of 15 years in prison.
“Today’s guilty plea is another example of the zero tolerance the Department of Justice has for correctional officers who use their position to try to cover up official misconduct,” said U.S. Attorney Michael J. Moore for the Middle District of Georgia.
This case is being investigated by the FBI, and is being prosecuted by Trial Attorneys Forrest Christian and Tona Boyd of the Civil Rights Division’s Criminal Section, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia and the support of the Georgia Bureau of Investigation.
Federal and State Authorities Arrest 28 Individuals Yesterday in Connection with Permian Basin Cocaine and Heroin Distribution OperationsRead the Press Release
Authorities arrested 28 individuals yesterday on federal and state drug charges announced United States Attorney Robert Pitman, Midland County District Attorney Teresa J. Clingman, Drug Enforcement Administration Special Agent in Charge Joseph A. Arabit, El Paso Division, and Midland Police Chief Price Robinson.
15 of those arrested yesterday, including 46–year-old Jesus Enrique Gabaldon-Villa, 64-year-old Jesus Manuel Anchondo of Odessa, 50-year-old Samuel Ortiz of Midland, and 30–year-old Jesse “Chuy” Martinez of Midland, are charged in four federal grand jury indictments returned last month and unsealed today in Midland.
Three of the federal indictments (Gabaldon-Villa, et al.; Anchondo, et al.; and, Ortiz, et al.) focus on a heroin trafficking conspiracy operating in the Permian Basin area. The indictments charge ringleader Jesus Gabaldon-Villa, Jesus Anchondo, Samuel Ortiz and 11 others with conspiracy to possess with intent to distribute heroin. Authorities allege that from May to December of last year, the defendants were responsible for transporting multiple ounce quantities of “high quality” heroin from the Sierra Blanca area then selling it in Midland and Odessa. One defendant, 59-year-old Rogelio Villa, Sr., remains a fugitive. Upon conviction, the defendants charged in these three indictments face sentences of up to 20 years in federal prison or between five and 40 years in federal prison depending on the amount of heroin involved.
The other indictment (Martinez, et al.) focuses on cocaine trafficking in the Midland area. In this indictment, ringleader Jesse “Chuy” Martinez, along with 30–year-old Julio Rodriguez, and 34-year-old Alexander “Hondo” Castillo, all of Midland, are charged with one count of conspiracy to distribute cocaine. Authorities allege that from April to December of last year, Martinez, Rodriguez and Castillo were responsible for the distribution of user quantities of cocaine totaling approximately five kilograms throughout the Midland area. Upon conviction, each faces between five and 40 years in federal prison.
Thirteen (13) who were arrested yesterday face state drug charges. Those charges are being pursued by the Midland County District Attorney’s Office.
“Through our partnerships with federal, state, and local law enforcement agencies, we are targeting local trafficking networks responsible for the illegal distribution of heroin, cocaine, methamphetamine and other dangerous drugs. This investigation serves as a compelling example of our joint success and demonstrates the value of multi-agency collaboration. The resulting indictments, arrests and seizures will have a positive impact in the community, where the distribution and abuse of illegal drugs can have devastating health and societal effects. We will continue to work together to pursue drug trafficking organizations at every level in an effort to make our cities and neighborhoods safer,” stated DEA Special Agent in Charge Joseph A. Arabit.
These charges and arrests resulted from investigations conducted by the Drug Enforcement Administration and the Midland Police Department together with the Federal Bureau of Investigation, Homeland Security Investigations, U.S. Marshals Service and the Ector County Sheriff’s Office. The Texas Department of Public Safety, Odessa Police Department, Midland County Sheriff’s Office and the U.S. Probation Office assisted in making yesterday’s arrests.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Eastern District of New York U.S. Attorney’s Office Joins in Collections of over $2.2 Billion in Civil and Criminal Actions and Asset Forfeiture in Fiscal Year 2013Read the Press Release
U.S. Attorney Loretta E. Lynch announced today that the Eastern District of New York, working collaboratively with other offices as well as on its own, collected over $904 million in criminal and civil actions in Fiscal Year 2013. Of this total amount, $725,564,627.70 resulted from cases handled in conjunction with other U.S. Attorney’s Offices and components of the Department of Justice. Collections from criminal and civil actions handled solely by the Eastern District of New York totaled $178,848,788.63.
In addition, working with partner agencies and divisions, the Eastern District forfeited another $1,319,038,046 in assets tainted by crime. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and the Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. The combined joint collections and asset forfeiture recoveries for the Eastern District total of over $2.2 billion exceeds the appropriated $1.86 billion operating budget for all U.S. Attorneys’ Offices nationwide.
Attorney General Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help not only to ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Working with our colleagues across the nation as well as on our own, the Eastern District of New York stands firm in its resolve to protect the public and recover funds for the federal treasury and for victims of crime,” stated U.S. Attorney Lynch. “Collections and asset forfeiture are important tools in our arsenal as we seek to ensure that crime does not pay. We are honored to be part of this web of protection for the American people.”
FY 2013 EDNY COLLECTION HIGHLIGHTS
Health Care Fraud
This past year, working with colleagues in the District of Massachusetts and the Western District of Washington, the Eastern District of New York collected $748 million in a settlement with Amgen Inc. (Amgen). The Amgen settlement resolved criminal and civil liability arising from Amgen’s sale and promotion of Aranesp, a drug that treats anemia, as well as other drugs manufactured by Amgen. The settlement represents the single largest criminal and civil fraud settlement involving a biotechnology company in U.S. history. In its guilty plea, Amgen admitted that it illegally sold the drug with the intention that it be used at “off-label” doses that the FDA had specifically considered and rejected, and for an “off-label” treatment that the FDA had never approved and was later deemed to be extremely harmful to patients, all to increase profits. Amgen pled guilty to misdemeanor misbranding charges, paid a fine of $136 million, and forfeited $14 million. The civil settlement agreement encompassed allegations that Amgen: (1) promoted Aranesp and two other drugs that it manufactured, Enbrel and Neulasta, for “off-label” uses and doses that were not approved by the FDA and not properly reimbursable by federal insurance programs; (2) offered illegal kickbacks to a wide range of entities in an effort to influence health care providers to select its products for use, regardless of whether they were reimbursable by federal health care programs or were medically necessary; and (3) engaged in false price reporting practices involving several of its drugs. As part of the global settlement, Amgen also entered into a Corporate Integrity Agreement with HHS-OIG that will govern its conduct and ensure careful oversight of its branding and marketing practices.
Prescription Drug Initiative
In addition, as part of its Prescription Drug Initiative, the Eastern District worked with colleagues in the Southern District of Florida, the District of Colorado, and the Eastern District of Michigan in resolving an action for civil penalties in the amount of $80 million against Walgreen Pharmacies for its repeated violations of the Controlled Substances Act. The Eastern District action focused on Walgreens stores on Long Island that repeatedly filled bogus prescriptions for highly addictive painkillers that they knew or should have known had no legitimate medical purpose. The Eastern District’s Prescription Drug Initiative seeks to stem the tide of prescription drug and painkiller abuse through both civil and criminal enforcement as well as community education. In another Prescription Drug Initiative matter, medical residents at New York Methodist Hospital in Brooklyn were found to have issued close to 200 prescriptions for the stimulant Adderall without a legitimate medical purpose. Indeed, the Adderall was alternately consumed by the residents or sold in hand to hand transactions or on Craigslist. The hospital entered into a Consent Judgment that not only provided for a civil penalty for violating the CSA but also established a formal program to ensure future compliance.
False Claims Act
Working with the Department’s Civil Frauds Branch, the Eastern District recovered $5.25 million from RxAmerica pursuant to the settlement of one of the first federal False Claims Act cases to involve a Medicare Part D plan, which resolved claims that RxAmerica made false submissions to the Centers for Medicare and Medicaid Services in order to receive higher reimbursements for certain medications. In addition, the Eastern District recovered $8 million from CA, an Islandia, New York-based software and information technology company for knowingly double-billing federal agencies in connection with software maintenance contracts administered by the General Services Administration and Department of Defense.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
In the Eastern District as well as nationwide, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
District Man Sentenced to 10 Years in Prison for 2013 Stabbing in Southeast Washington-Victim, A Transgender Woman, Had More Than 40 Stab Wounds-Read the Press Release
WASHINGTON – Michael McBride, 23, of Washington, D.C., was sentenced today to 10 years in prison for stabbing a transgender woman last year in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
McBride pled guilty in October 2013, in the Superior Court of the District of Columbia, to a charge of aggravated assault while armed. He was sentenced by the Honorable Patricia A. Broderick. Judge Broderick also ordered McBride to serve five years of supervised release after completion of his prison term, and to receive mental health services.
According to the government’s evidence, McBride and the victim had been exchanging text messages and phone calls prior to the attack. On June 21, 2013, at about 1 a.m., they agreed to meet outside an abandoned home in the 3000 block of Stanton Road SE. McBride went to the location with the intention of having sex with the victim. He and the victim went inside the abandoned home and then got into a verbal dispute about sex. A struggle ensued, and, without warning, McBride produced a knife and stabbed the victim multiple times. The knife blade broke as McBride was stabbing the victim in the collarbone.
The victim collapsed on a couch in the living room area. McBride fled. The victim suffered more than 40 stab wounds to the body, and was transported to a hospital. She suffered significant blood loss and would have died but for the timely provision of medical care. McBride, who was on supervised release in another case, was arrested a short time after the attack and he has remained in custody ever since.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department (MPD). He also praised the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Lynette Briggs, Victim/Witness Advocate James Brennan, and Witness Security Specialist M. Laverne Forrest. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Kendra Briggs and Tejpal S. Chawla, who prosecuted the case.
14-007District Man Pleads Guilty to Murder Charge in 2011 Slaying of Taxicab Driver in Northeast Washington-Shooting Took Place During A Robbery, Following Argument over 75 Cents-Read the Press Release
WASHINGTON – Rashad Slye, 23, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed for the 2011 killing of a taxicab driver during a robbery in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Slye entered the plea in the Superior Court of the District of Columbia. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence of 17 years in prison. The Honorable Jennifer Anderson scheduled sentencing for April 4, 2014.
According to the government’s evidence, on Saturday, Oct. 22, 2011, at about 2:50 a.m., Slye and a friend called for a taxicab at the Morgan Boulevard Metro station in Landover, Md. Within a few minutes, the victim, Domingo Ezirike, 40, arrived in his taxicab and picked up Slye and his friend. Slye asked to be taken to Ponds Street NE in the District of Columbia. Mr. Ezirike asked Slye and his friend for $20, and the friend gave Mr. Ezirike $20. Within minutes, Slye began arguing with Mr. Ezirike about the fare and about the lack of heat or music in the cab.
Mr. Ezirike drove the cab to the 4300 block of Ponds Street NE and he asked for an additional $7.75 in fare. Slye’s friend gave him $5 and Slye gave him $2. However, Mr. Ezirike insisted on the additional 75 cents, and he and Slye argued over the money.
After Slye’s friend got out of the cab and left the immediate area, Slye continued to argue over the fare. He pulled out a 9mm handgun and demanded the $20 back. He also ordered Mr. Ezirike out of the cab and onto the ground. At that point, he stood over Mr. Ezirike and began to rifle through his pockets, asking where the money could be found.
Slye struck Mr. Ezirike in the head with the gun and continued searching him, insisting he was hiding the money. Mr. Ezirike offered to remove his pants and while still on the ground, did so. Slye then entered the vehicle, still holding Mr. Ezirike on the ground at gunpoint, as he searched the front passenger compartment. He then ordered Mr. Ezirike back into the taxicab and insisted that he search for money. Then, as Mr. Ezirike sat in the driver's seat, Slye fired a single shot that struck him in the arm, causing him to immediately fall back into the seat and remain still. Slye immediately fled the scene towards the 1500 block of Anacostia Avenue NE.
Mr. Ezirike placed the vehicle in reverse and drove it backwards and onto grass on Anacostia Avenue. He died on the scene, as the bullet traveled from his arm and into his chest cavity.
In announcing the plea, U.S. Attorney Machen praised the work of the detectives, officers and crime scene technicians who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Meridith McGarrity, Mia Beamon, Phaylyn Hunt, Paralegal Supervisor Sharon Newman, Victim Advocate Tamara Ince, Information Technology Specialist Leif Hickling, and Assistant U.S. Attorneys David J. Gorman and Kacie M. Weston.
14-009Dighton Tax Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
BOSTON – A Dighton man was sentenced for falsifying his own personal income tax returns.
David J. Woods, 65, was sentenced by U.S. District Court Judge Patti B. Saris to six months in prison, six months home confinement and a $3,000 fine. In June 2013, Woods pleaded guilty to filing false individual tax returns which resulted in the underreporting of over $500,000 in income from his tax preparation service.
United States Attorney Carmen M. Ortiz and John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Lori J. Holik of Ortiz’s Economic Crimes Unit.
Defendants Plead Guilty to Hurricane Ike FraudRead the Press Release
ATLANTA – John A. Wheeler and Melody Lockett Carter pleaded guilty in federal court to fraudulently obtaining FEMA assistance funds intended for the victims of Hurricane Ike.
“These defendants stole over $50,000 in disaster relief funds that were intended to benefit those who truly suffered from the devastation of Hurricane Ike in 2008,” said United States Attorney Sally Quillian Yates. “Since the creation of the Disaster Fraud Task Force in 2005, we have remained committed to prosecuting those criminals who would take advantage of natural disasters to enrich themselves.”
James E. Ward, Special Agent in Charge for the U. S. Department of Homeland Security, Office of the Inspector General, said, “The Department of Homeland Security, Office of Inspector General is dedicated to investigating fraud related to DHS programs, specifically FEMA Emergency Disaster Relief Funds. The charges against these defendants serves as an example of our commitment to investigating FEMA fraud allegations and pursuing federal prosecution to the fullest extent of the law. DHS-OIG will continue to place a high priority on investigating these types of crimes which negatively impact FEMA’s Disaster Relief Funds that are intended for law abiding citizens.”
According to United States Attorney Yates, the charges and other information presented in court: Wheeler, 57, and Carter, 49, both of Wilmerding, Pa., and Angela Pratt Avery, 44, of Lawrenceville, Ga., worked together to file three fraudulent FEMA claims for Hurricane Ike disaster relief funds. The defendants filed the claims in September 2008 and January 2009, falsely claiming that Carter and Avery lived at a West Ventura Drive address in Galveston, Texas, at the time of Hurricane Ike and that their
personal property had been damaged by the storm. In fact, all three defendants lived in Norcross, Ga., at the time of Hurricane Ike and were not victims of the storm. The defendants received over $50,000 in disaster assistance from FEMA based on their fraud.On September 13, 2008, Hurricane Ike made landfall near Galveston, causing widespread damage along the Texas, Louisiana, Mississippi, and Florida coastlines and the surrounding areas. After Hurricane Ike struck the Texas coastline, FEMA provided financial disaster assistance to displaced individuals who resided in various counties in Texas. Those individuals could make an application for disaster assistance funds by filing a claim with FEMA that included the Texas address where they were living at the time of the hurricane.
Wheeler and Carter each pleaded guilty to one count of theft of government money. Sentencing for Wheeler and Carter will be scheduled at a later date.
This case is being investigated by Special Agents of the U.S. Department of Homeland Security, Office of Inspector General.
Assistant United States Attorney Stephen H. McClain is prosecuting the case.
In September 2005, the Attorney General established the Disaster Fraud Task Force to deter, detect, and prosecute disaster-related federal crimes such as charity fraud, identity theft, procurement fraud, and insurance fraud related to the Hurricane Katrina disaster. As multiple disasters occurred in subsequent years, the Task Force expanded its mandate to all types of disaster fraud. The Task Force, chaired by Acting Assistant Attorney General Mythili Raman of the Criminal Division, includes the FBI, the Postal Inspection Service, the U.S. Secret Service, the Federal Trade Commission, the Securities and Exchange Commission, federal Inspectors General, and various representatives of state and local law enforcement.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
David Rohm Sentenced to 87 Months for Receipt of Child PornographyRead the Press Release
Memphis, TN – David Arthur Rohm, 65, of Jackson, TN, was sentenced yesterday to 87 months in federal prison following his guilty plea to one count of receipt of child pornography, announced U.S. Attorney Edward L. Stanton III.
According to facts alleged in the indictment and revealed during the sentencing hearing, Rohm knowingly received DVDs which contained visual depictions of minor boys engaged in sexually explicit conduct.
In addition to the prison sentence, United States District Judge S. Thomas Anderson ordered Rohm to serve 10 years of supervised release and to forfeit all computers and media containing alleged child pornography. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Debra Ireland represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Dallas County Woman Sentenced to A Five Year Probationary Term and Ordered to Repay the Social Security Administration $19,356.00Read the Press Release
The United States Attorney Kenyen Brown announces that Mildred Calhoun, a Selma, Alabama resident, was sentenced today to five (5) years’ probation after a guilty plea to theft of government funds.
Calhoun signed an application with the Social Security Administration for Title II Disability Insurance benefits. As part of the application, Calhoun signed, agreeing that she would notify the SSA if “I got to work whether as an employee or a self‑employed person". Calhoun was approved for disability benefits effective 04/1993.
On August 15, 2012, Social Security Administration/Office of Inspector General special agents confirmed that Mildred Calhoun worked as a care taker. Among other responsibilities, Calhoun was responsible for feeding, bathing, turning over and changing her charge. Calhoun started working as a caregiver in December of 2009, and continued to do so until March 17, 2012. Calhoun was paid $432.00 a week and failed to report this income to the Social Security Administration.
During the week of April 1, 2013, SSA/OIG special agents received an overpayment worksheet from the SSA Office of Central Operations. The total amount overpaid to Calhoun due to her work activity is $19,356.00. Calhoun was charged with theft of government funds and acquiesced to the crime by pleading guilty on September 24, 2013.
The Social Security Administration’s Office of Inspector General investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Convicted Felon Sentenced to Maximum Term of Imprisonment on Firearms ChargesRead the Press Release
In San Antonio this morning, convicted felon Eloy Olivares Garza was sentenced to 15 years in federal prison followed by five years of supervised release for conspiring to smuggle approximately 220 assault-type firearms into Mexico announced U.S. Attorney Robert Pitman, HSI Special Agent in Charge Janice Ayala and ATF Special Agent in Charge Robert Elder.
On September 12, 2013, Garza pleaded guilty to one count of conspiracy to smuggle goods from the U.S. and one count of being a convicted felon in possession of a firearm. According to court records, from August 2006 to February 2007, Garza conspired with others to illegally purchase the firearms from licensed dealers in and around San Antonio and Austin, then smuggle them into Mexico without receiving the appropriate licenses from the United States Department of State. Garza’s criminal history includes a 1990 conviction for conspiracy to possess with intent to deliver marijuana.
This case resulted from an investigation by Homeland Security Investigations together with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Mark Roomberg prosecuted this case on behalf of the Government.
Collin County Felon Sentenced for Federal Firearms ViolationRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 42-year-old Farmersville, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Craig Marcus Cooper pleaded guilty on Sep. 11, 2013, to being a felon in possession of a firearm and was sentenced to 18 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Jan. 13, 2012, Cooper and a co-defendant, Colten David Barrow, traveled together to the Dukes Truck Stop on Highway 64 in Van Zandt County, Texas to meet an individual interested in purchasing a fully-automatic machinegun and silencer for $10,000. The prospective buyer was an undercover federal agent and Cooper and Barrow were arrested at the scene. Further investigation revealed Cooper was a convicted felon having been previously been found guilty of criminal mischief in Collin County, Texas in 2011. The investigation also revealed the machinegun had been reported stolen about 10 years ago. Cooper was indicted on Mar. 27, 2013 and charged with federal firearms violations.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.City of North Miami Resident Convicted in Stolen Tax Refund SchemeRead 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, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Tom Weschler, Chief, City of Naples Police Department, announce that Marie Jean Baptiste, 22, of North Miami, was convicted by a federal jury of three counts of stealing tax refunds, in violation of Title 18, United States Code, Sections 641 and 2. The trial was held before U.S. District Court Judge Robin S. Rosenbaum. Sentencing is scheduled for March 21, 2014 at 9:30 a.m. Baptiste faces a maximum sentence of ten years in prison for each count.
According to the indictment and evidence presented at trial, Baptiste received four tax refunds that she knew were stolen, and converted them for her own use and gain. Baptiste participated in a scheme in which fraudulent tax returns were filed directing the tax refunds to be directly deposited into her bank account. After the tax refunds were deposited into her bank account, Baptiste would withdraw the tax proceeds from the bank and various ATMs for her own use and gain.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the City of Naples Police Department. This case was prosecuted by Assistant U.S. Attorney Gera R. Peoples.
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.
Centreville Woman Sentenced for Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Valerie W. Johnson, 56, of Centreville, Illinois, was sentenced in United States District Court in East St. Louis, Illinois on one count of Health Care Fraud.
Johnson was sentenced to five (5) years’ probation, a special assessment of $100, and ordered to pay restitution in the amount of $7,842.46. Johnson previously pled guilty to submitting false and fraudulent bills in relation to her receipt of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Canadian Woman Sentenced for Traveling to Virginia for the Purpose of Sexually Abusing Two ChildrenRead the Press Release
ALEXANDRIA, Va. – Theresa Louisa Goddard, 45, of Vancouver, British Columbia, was sentenced today to 10 years in prison, followed by 20 years of supervised release, for attempting to coerce and entice two children into engaging in illegal sexual activity.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
Theresa Goddard pleaded guilty on October 16, 2013. According to court documents, Goddard posted a message on a website where individuals can exchange messages, pictures, and videos related to taboo subjects. In her message, she stated that she was interested in starting an “incest family.” In June 2013, a special agent with HSI, acting in an undercover capacity, responded to the message, and he began communicating with Goddard using email and live video chats on Skype.
As part of his undercover identity, the HSI agent told Goddard that he had two minor children, a girl and a boy. The children were fictitious. During the conversations, Goddard made plans to travel from Vancouver to Virginia in order to sexually abuse and rape both children. She further stated that she wanted to quit her job in Vancouver and move in with the undercover agent in order to continue sexually abusing his children on a regular basis.
On June 26, 2013, Goddard traveled from Vancouver, British Columbia, to Dulles International Airport in Virginia for the purpose of meeting the special agent and sexually abusing his children. She was arrested shortly after landing in Virginia.
This case was investigated by ICE Homeland Security Investigations, with assistance from the Northern Virginia/Washington, DC Internet Crimes Against Children Task Force. Assistant United States Attorney Matt J. Gardner prosecuted the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline at 1-800-843-5678.
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.
California Man, Aung Gaw, Indicted for Crimes Involving the Sexual Victimization of ChildrenRead the Press Release
AUNG GAW, a/k/a Michael Gaw, age 25, of Fremont, California, was charged today in a two count indictment with Conspiracy to Produce Child Pornography and Receipt of Materials Involving the Sexual Exploitation of Minors, announced U. S. Attorney Kenneth Allen Polite, Jr.
Conspiracy to Produce Child Pornography carries a mandatory minimum of fifteen (15) years and a maximum sentence of thirty (30) years imprisonment and Receipt of Child Pornography carries a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years. In addition, GAW is subject to a term of supervised release after imprisonment for a minimum of five (5) years up to life. If convicted, GAW will have to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. GAW is being held in federal custody pending trial which is scheduled for March 10, 2014, before Chief United States District Court Judge Sarah S. Vance.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Fraud Section Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
Baltimore Felon Exiled to 10 Years in Prison for Illegal Possession of an Unregistered GunRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Thomas Scott, age 24, of Baltimore, Maryland, today to 10 years in prison, followed by three years of supervised release, for unlawful possession of an unregistered firearm.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Scott=s plea agreement, on February 12, 2013, employees of the Baltimore Police Department Citywatch unit were monitoring “blue light” surveillance cameras in the Central District of Baltimore, when they noticed a Ford Expedition making multiple turns and slowly driving up and down the same streets of downtown for at least 30 minutes. Due to a number of recent robberies following the closing of restaurants and nightclubs, uniformed officers in the area were advised to monitor the vehicle for a possible robbery attempt. Officers found the vehicle cruising slowly in the area and attempted to stop it. The vehicle pulled to the curb and as the officers approached the Expedition, the driver quickly pulled away from the curb. The officers pursued the Expedition, which crashed into a tree several blocks away.
As officers approached the vehicle, they saw the Scott getting out of the passenger side of the car in bare feet. Upon seeing the officers, Scott began running down the street. The driver also got out of the car and ran away. Both Scott and the driver were arrested approximately two blocks away. From the vehicle, officers recovered: a machete and the driver’s license of the driver, on the front driver’s side floor; a loaded 12-gauge shotgun with a sawed off barrel, sitting next to a pair of shoes in the front passenger floor area; one air rifle in the back storage area of the vehicle; and a black and white bandana on the floor of the front seat passenger side of the vehicle.Officers recovered two shotgun shells when they searched Scott that matched the shell found in the shotgun. The sawed-off shotgun was not registered to Scott in the National Firearms Registration and Transfer Record.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Another Former Alorton Official Sentenced to Federal PrisonRead the Press Release
A former police officer in Alorton and Fairmont City who also served as a trustee of the Commonfields of Cahokia Public Water District and as the Alorton Director of Public Safety, was sentenced in US District Court on January 9, 2014, to two years in federal prison for wire fraud and tax evasion, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Harry A. Halter, Jr., also known as “Dink,” 53, of Cahokia Ill., pled guilty on September 25, 2013.
Halter was convicted for financial crimes related to a towing business Halter owns. Documents filed in US District Court established that Halter owned and operated Town & Country Towing, located in Alorton, Illinois. In 2009, Halter received a grant of $24,990 in tax increment financing (TIF) towards the construction of a new fence to surround the perimeter of his tow yard. However, Halter’s wire fraud conviction came after he misapplied $19,057.62 of those funds to pay personal expenses – such as credit cards and expenses at Kinkaid Village Marina for personal recreational boating expenses. Prosecutors presented evidence that Halter paid a kickback to former Mayor Randy McCallum after he received that TIF grant.
Halter was convicted of tax evasion for using his business to pay personal expenses, conducting personal and business transactions through the extensive use of cash, paying employees in cash and not reporting their wages to the IRS, by not keeping accurate records of business transactions, and other acts of concealing his true income from the IRS for the purpose of limiting his tax liability. This conduct resulted in Halter avoiding paying at least $128,719 in federal income taxes that he otherwise would have been required to pay. Halter agreed to make full restitution to the IRS and the village of Alorton as a condition of his guilty plea.
The St. Clair County States Attorney and the United States Attorney both investigated and prosecuted Halter for separate crimes. Halter was convicted of official misconduct in state court on April 4, 2013, after compelling a female motorist to perform oral sex to avoid arrest in 2008. Halter made that traffic stop in the early morning hours outside of his jurisdiction after he had been drinking.
Halter’s sentence is the latest in a string of federal prosecutions of Alorton officials. In February, 2011, Police Chief Robert Cummings resigned after pleading guilty to federal tax crimes occurring during his tenure with the Alorton Police Department. Former Mayor Randy McCallum, pled guilty to a four-count Information on February 24, 2012, for Attempted Possession with the Intent to Deliver a Controlled Substance (crack cocaine), Theft or Conversion of Government Property, Attempting to Smuggle Contraband into a Correctional Facility that Houses Inmates Pursuant to an Agreement with the Attorney General, and Making False Statements to Federal Law Enforcement Officers. McCallum received a 43 month prison sentence. On April 27, 2012, former Alorton Chief of Police Michael Baxton was sentenced to prison for one year for stealing evidence while he was the Alorton chief and making subsequent false statements to federal investigators. The Alorton Streets Superintendent, Ronnie Cummings, was sentenced to 41 months imprisonment on July 16, 2012, for being a felon in possession of a firearm, which included carrying a weapon in a city-owned vehicle.
US Attorney Stephen R. Wigginton said, “The Public Corruption Task Force will continue to work to drain the swamp and rid Alorton of any public officials who misuse public office for their own purposes.”
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service / Criminal Investigations and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Steven D. Weinhoeft.
Anderson County Man Guilty of Sexually Exploiting ChildRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 46-year-old Grapeland, Texas man has pleaded guilty to child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Robbie Newby pleaded guilty to sexual exploitation of a child on Jan. 9, 2014, before U.S. Magistrate Judge John D. Love.According to information presented in court, on March 14, 2012, Newby coerced or persuaded a child under the age of 16 to engage in sexually explicit conduct for the purpose of creating child pornography. A federal grand jury returned an indictment on April 17, 2013, charging Newby with child exploitation violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Newby faces a minimum of 15 years and up to 30 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations and the Texas Department of Public Safety – Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.Anderson County Man Guilty of Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 49-year-old Palestine, Texas man has pleaded guilty to child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Alvin Westley pleaded guilty to possession of child pornography on Jan. 9, 2014, before U.S. Magistrate Judge John D. Love.According to information presented in court, on Jan. 26, 2011, Westley was found in possession of child pornography. During the investigation, it was revealed that Westley is a registered sex offender having been previously convicted of three counts of indecency with a child. A federal grand jury returned an indictment on Oct. 23, 2013, charging Westley was child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Westley faces a minimum of 10 years and up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations and the Texas Department of Public Safety – Criminal Investigations division and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.Alton Woman Sentenced for Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Roslyn James, 46, of Alton, Illinois, was sentenced in District Court in East St. Louis, IL on one count of Health Care Fraud.
Roslyn James was sentenced to four (4) month’s confinement in the Bureau of Prisons, four (4) month’s home confinement, three (3) years’ supervised release following her confinement, a special assessment of $100, and ordered to pay restitution in the amount of $50,568.12. Johnson previously pled guilty to submitting false and fraudulent bills in regard to the providing of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. James admitted that she falsely billed the program for services that were supposed to have been provided to her son; however, the person who she claimed as having provided the services lived in the State of California.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case was prosecuted by Assistant United States Attorney Ranley R. Killian.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Allan D. Cooper Sentenced to 27 Months for Wire FraudRead the Press Release
Memphis, TN – Allan D. Cooper, 66, of Memphis, TN, was sentenced today to 27 months imprisonment by United States District Judge John T. Fowlkes, Jr., announced U.S. Attorney Edward L. Stanton III. Cooper entered a guilty plea in September to a criminal information charging him with one count of wire fraud.
According to the one-count criminal information and statements made in court, between approximately October 2011 and May 2013, Cooper defrauded six individuals of $395,300. According to the information, Cooper made various false and fraudulent statements, representations and promises to induce the victims to give him monies as either a “loan” or an “investment.”
Cooper told some of his victims about an investment opportunity with an old friend of his named “Charlie” and that if the victims would give Cooper funds to invest with Charlie they would receive a substantial return. In these instances Cooper frequently gave the victims a post-dated check payable in an amount that represented the principal and the return on the investment. When the victim discovered that the check was worthless, Cooper made other false representations and promises to repay.
Cooper told other victims that he was the owner of Cooper Chemical Company and that if they would loan him funds he would pay them back with substantial interest. In fact, “Cooper Chemical Company” was inactive and not conducting any business. Cooper also falsely represented that if a victim would loan him funds, they would be repaid with interest through disbursements from a trust in which defendant Cooper was a named beneficiary.
Cooper was also ordered to pay restitution to the victims in the amount of $395,300. There is no parole in the federal prison system. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III represented the government.14 Charged with Violating Federal Gun and Drug LawsRead the Press Release
PITTSBURGH – Fourteen people from Pennsylvania, Ohio and New York have been indicted by a federal grand jury in Pittsburgh for violating federal narcotics trafficking and firearm laws, United States Attorney David J. Hickton announced today.
The eight-count superseding indictment, returned on Jan. 8, charges Neil Thomas, 29, Marcus Battles, 27, Luis Colon, 30, Gabriel Garcia, 25, Christopher Greene, 30, Stephanie Goehring, 27, Ryan Hutchinson, 28, William Krszal, 23, Phillip Lacher, 26, Colin Mitchell, 28, Dustin Petry, 26, Kailen Young, 28, David Wallace, 32, and Marc Perkins, 33, as the defendants.
According to the superseding indictment, between January 2013 and October 2013, the defendants (except for Krszal, Lacher, Wallace, and Perkins) conspired to distribute and possess with intent to distribute 100 grams or more of heroin; Garcia, Petry, and Thomas possessed firearms in furtherance of a drug trafficking crime and distributed heroin or possessed heroin with intent to distribute it; and Thomas, Greene, Krszal, Lacher, Wallace, and Perkins conspired to distribute and possess with intent to distribute 500 grams or more of 3,4-methylenedioxymethamphetamine (also known as MDMA or “molly”) and methamphetamine. The indictment seeks forfeiture of the proceeds of the crimes as well as property acquired with the proceeds and property used to commit the crimes.
The law provides for maximum total sentences ranging from up to 20 years to up to life in prison as well as mandatory minimum sentences starting at five years in prison. Fines ranging from $1,000,000 to up to $10,000,000 may also be imposed. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Bureau of Police, the Allegheny County Sheriff’s Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
12th Former Officer at Roxbury Correctional Institution Pleads Guilty and Admits Assault of an InmateRead the Press Release
Michael Morgan, formerly an officer at Roxbury Correctional Institution (RCI) in Hagerstown, Md., pleaded guilty today to assaulting an inmate on March 9, 2008, announced the Justice Department and the U.S. Attorney’s Office for the District of Maryland. Morgan is the 12th former RCI officer to enter a plea in connection with the federal investigation into a series of assaults that the inmate, identified by the initials K.D., suffered at RCI on March 8-9, 2008. According to court documents filed in connection with his guilty plea, Morgan admitted that he assaulted K.D. by kicking the inmate in the area of his groin. Morgan acknowledged that he kicked K.D. in order to punish him for his prior misconduct. Morgan also admitted that he lied under oath in 2008, when he falsely denied both assaulting K.D. and having any knowledge of an assault of the inmate.
“Mr. Morgan has admitted that, as a correctional officer, he – and others – violated a person’s constitutional rights and then lied to cover up their on-duty misconduct,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who use their official position to commit and to cover up violations of federal criminal law.”
Morgan faces a statutory maximum penalty of 10 years in prison. Sentencing is set for April 23, 2014, before U.S. District Judge James K. Bredar.
In related cases before Judge Bredar, former RCI Correctional Officers Ryan Lohr, Dustin Norris, Philip Mayo, Jeremy McCusker, Walter Steele, Lanny Harris, Keith Morris, Tyson Hinckle and Reginald Martin, and former RCI Lieutenants Robert Harvey and Edwin Stigile each has entered a guilty plea. Two former RCI officers previously entered guilty pleas in state court.
Three current or former RCI officers still face federal charges in connection with this incident. These officers are innocent until proven guilty in a court of law.
The investigation by the Frederick Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorneys Sanjay Patel and Christine Siscaretti of the Civil Rights Division of the Department of Justice, with the assistance of Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
Thursday 9 January 2014
“El Canonazo” Owner Guilty of Illegally Smuggling Firearm Magazines to MexicoRead the Press Release
LAREDO, Texas – Arturo Gonzalez, 42, businessman and owner of two J.C. Twiss “El Canonazo” sporting apparel and firearm accessories stores in Laredo, has been convicted of attempting to export more than 600 firearm magazines to Mexico, announced United States Attorney Kenneth Magidson today. The verdict was announced late today after a three-day trial and approximately nine hours of deliberation.
According to testimony from Leticia Moncada Infante, Gonzalez personally delivered boxes containing AK-47 assault rifle magazines to her at the north Laredo store on Shiloh Drive on Nov. 28, 2012, after the store’s closing hours. She told jurors she had received a telephone call in advance from a Mexican contact to proceed to the store, receive the boxes and was to deliver them to a Mexican semi-tractor driver whom she would meet at a prearranged time and location who would smuggle the boxes to Mexico. Additional testimony from other witnesses and court records confirmed infante waited in her car as Gonzalez loaded several boxes from his store into the trunk of her car. Those boxes were delivered moments later to a truck driver who was arrested trying to drive into Mexico with them. Infante has already pleaded guilty and is awaiting sentencing.A Homeland Security Investigations (HSI) special agent posed as another courier sent by a Mexican buyer. Gonzalez directed the agent to receive boxes containing another 288 AK-47 assault rifle magazines in an alley behind the north Laredo Store on Nov. 30, 2012. After noting the number of people watching, Gonzalez directed the agent to proceed to the back alley of his store. The agent testified he never received any paperwork nor was asked for identification from Gonzalez. A short time later, the agent delivered the boxes to another Mexican truck driver who was arrested attempting to smuggle the boxes into Mexico.
Jorge Sosa, a former employee of Gonzalez who has also pleaded guilty, testified that Gonzalez introduced him to at least two persons from whom he had received money and directed him to accept cash from them on his behalf. He also testified Gonzalez directed him to deliver the last load of 360 AK-47 assault rifles to another courier at the employee’s personal storage unit. The employee and the third courier testified that both met at the employee’s storage unit on Dec. 7, 2012, where the courier picked up five boxes containing a total of 360 magazines. The courier was apprehended shortly after the event.
Additional evidence was also presented that Gonzalez had told Guzman he feared law enforcement was closing in on him and that it would be better if Guzman did not pick up the last set of magazines from Gonzalez or at the store. Gonzalez apparently wanted to get the magazines out of his store and have them moved to a storage unit owned by Sosa.
Gonzalez testified and admitted that he had in fact delivered the boxes to Infante and the undercover agent on Nov. 28 and 30, but that he was not doing anything illegal. During his testimony, Gonzalez admitted he did not check for identification prior to delivering the assault rifle magazines. In his defense, Gonzalez stated that he had received an unusually large order from a Laredo hunter for 1,500 rifle magazines. Although never having met the gentleman before, Gonzalez quoted a price of $30,000 for the order, which the man immediately paid for in cash that he happened to be carrying with him. Gonzalez could not remember the man’s name, did not record the man’s phone number or contact information, did not photograph his identification information and did not provide any receipt or document to the buyer.
Gonzalez claimed he had no intention of providing any AK-47 rifle magazines to Guzman. He further claimed Sosa moved the magazines to the storage unit and delivered them to Guzman without Gonzalez’s knowledge or consent.
The jury disagreed and convicted him on all three counts as charged.
Gonzalez was permitted to remain on bond pending sentencing, which is set for April 14, 2014.
All AK-47 assault rifle magazines referenced in this case were intercepted and recovered in the United States. No magazines traveled to Mexico.
The investigation was conducted by HSI with the assistance of Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department. Assistant United States Attorney Jose Homero Ramirez is prosecuting the case.
Wyoming U.S. Attorney’s Office Collects $3,712,887 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Cheyenne, WY – U.S. Attorney Christopher A. “Kip” Crofts announced today that the District of Wyoming collected $3,712,887 in criminal and civil actions in Fiscal Year 2013. Of this amount, $657,774 was collected in criminal actions and $3,055,113 was collected in civil actions.
Additionally, the District of Wyoming worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,337,572 in cases pursued jointly with these offices. Of this amount $1,987 was collected in criminal actions and $2,335,585 was collected in civil actions.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
Wyoming U.S. Attorney Crofts noted, “The U.S. Attorney’s Office in the District of Wyoming collected more than its budgeted expenditures in FY13, so I think the taxpayers are getting their money’s worth from our office and from our dedicated employees.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education
Western Washington U.S. Attorney’s Office Work Leads to Collection of More than $800 Million for Victims and TaxpayersRead the Press Release
U.S. Attorney Jenny A. Durkan announced today that the U.S. Attorney’s Office collected more than $22 million in criminal and civil actions it handled by itself, including $12.3 million from the sale of forfeited assets. An additional $817 million was collected in cases the U.S. Attorney’s Office handled with other Department of Justice divisions and other U.S. Attorney’s Offices.
“We will hold wrongdoers accountable. We use every tool available to strip criminals of the proceeds of their crimes, collect significant fines from wrongdoers, protect taxpayers, and support victims,” said U.S. Attorney Jenny A. Durkan. “Civil litigation and criminal prosecutions help keep communities safe. Fulfilling our mission of protecting the public includes returning money to taxpayers and victims, and we are able to do that in a way that is fiscally responsible and adds value to the federal treasury.”
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
In the past fiscal year, the U.S. Attorney’s Office in the Western District of Washington, in partnership with other DOJ components, recovered significant settlements in civil litigation, including more than $184 million in a fair housing case with Wells Fargo Bank, and more than $623 million as its share of a False Claims Act case with Amgen for the marketing and promotion of a misbranded drug.
On the criminal side, the U.S. Attorney’s Office collected $326,630 in connection with U.S. v. Craig James, a case in which James conspired to steal and damage thirty-one old growth western cedar trees on the Olympic National Forest. Some of the trees were nearly 600 years old. The office also seized movie deal proceeds of $216,558 for victims of Colton Harris-Moore, the serial aircraft thief who went on an interstate crime spree before being captured in the Bahamas. The office collected $564,533 in connection with U.S. v. Michelle Bielaski, a case where Bielaski failed to pay the IRS employment taxes that her company withheld from employee paychecks over a ten year period.
In asset forfeiture, the U.S. Attorney’s Office in the Western District of Washington collected $12.3 million in proceeds from the sale of forfeited assets in FY 2013. Forfeited assets are deposited into the DOJ Assets Forfeiture Fund or the Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. Of those forfeited assets, more than $1 million went to compensate crime victims. The largest single forfeiture in the Western District of Washington in FY 2013 was $1.2 million from the sale of the former Sugar’s club in Shoreline as part of U.S. v. Colacurcio.
The U.S. Attorneys’ Offices, along with DOJ’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to DOJ’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
United States Attorney's Office for the Western District of Texas Collects More Than $15.7 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
The United States Attorney’s Office for the Western District of Texas (WDTX) collected $15,712,319.55 in criminal and civil actions in Fiscal Year 2013 announced U.S. Attorney Robert Pitman. Of this amount, $10,642,574.35 was collected in criminal actions and $5,069,745.20 was collected in civil actions.
Additionally, the Western District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $203,456,628.90 in civil actions pursued jointly. The WDTX, working with partner agencies and divisions, also collected over $8.6 million in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
“In addition to securing punishment for those who break the law, it's an important part of our mission to separate them from the profits of their misdeeds and return the money to its rightful owners, whether crime victims or taxpayers,” stated United States Attorney Robert Pitman.Notable FY 2013 WDTX collections include:
SAN ANTONIO - In April, the WDTX recovered $3,875,459.65 as part of a Health Care Fraud civil settlement with Caremark, Inc. This amount represents the federal share of a settlement between Caremark, the Federal government and the state of Texas. The payment was made to settle allegations that Caremark violated the False Claims Act by intentionally failing to properly process Medicaid claims for reimbursement under the Medicaid Third Party Liability statute;
EL PASO - In August, the WDTX recovered $2,855,791.04 in fines and restitution from Oswaldo Kuchle-Lopez for his role in a conspiracy to commit wire fraud by scheming to defraud the Export-Import Bank of the United States for loans purportedly involving construction vehicles and agricultural equipment destined for Mexico;
AUSTIN - In June, the WDTX collected $342,862.65 from Harris Eugene “Gene” Yarbrough, III, as part of his Court-ordered restitution of $2,150,688.26 based on his 2002 bank fraud conviction;
WACO - In August, the WDTX collected $187,556.69 in fines and restitution from High Performance Ropes of America, Inc., for their role in making false statements to the Department of Labor concerning violations of the Fair Labor Standards Act by failing to pay its workers overtime wages; and,
MIDLAND - In May, the WDTX collected $89,896.69 in restitution from Gary Gardenhire stemming from the sale of his racetrack. The collection was applied towards his Court-ordered restitution of $2,444,165.10 based on his 2010 mail fraud conviction for scheming to steal hydraulic hoses from a Permian basin business and sell them for profit.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. That figure represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
United States Attorney's Office Collects over $2.4 Million for Taxpayers in 2013Read the Press Release
HONOLULU – U.S. Attorney Florence T. Nakakuni announced today that her office collected $2,475,370 in criminal and civil actions in Fiscal Year (FY) 2013. Of this amount, $1,543,259 was collected in criminal actions and $932,110 was collected in civil actions. Additionally, the District of Hawaii worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $193,281,585 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
This past August, for example, the District of Hawaii recovered $451,428 from Wahiawa General Hospital ("WGH") to settle two lawsuits alleging that WGH improperly billed the Medicare program, the State of Hawaii Medicaid program, and TRICARE, the federal health benefits program for military dependents. The settlement grew out of civil "whistleblower" lawsuits brought under the federal and State of Hawaii False Claims Acts in federal and state court. WGH agreed to the settlement but did not admit liability.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office in Hawaii, working with partner agencies and divisions, collected over $7.95 million in asset forfeiture actions in FY 2013, including over $4.79 million deposited into the Department of Justice Asset Forfeiture Fund. Deposits into the Department’s Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
United States Attorney for Western District of Oklahoma Involved in Collecting over $701 Million in Fiscal Year 2013Read the Press Release
Oklahoma City, Oklahoma – Sanford C. Coats, United States Attorney for the Western District of Oklahoma, announced today that his office was involved in collecting a total of $701,879,812 in civil and criminal cases and through asset forfeiture in Fiscal Year 2013.
The Western District of Oklahoma collected $177,335,420.48 in criminal and civil actions FY 2013. Of this amount, $163,574,529.60 was collected in criminal actions and $13,760,890.88 was collected in civil actions.
The Western District of Oklahoma also worked jointly with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $446,231,873.45 in other civil cases pursued jointly with these offices.
Finally, the Western District worked with partner agencies and divisions to collect an additional $78,336,320.00 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
"The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people," said Attorney General Holder. "It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment."
"These significant recoveries highlight the remarkable work done by the talented women and men in the U.S. Attorney’s Office, particularly in our Asset Recovery Unit," said U.S. Attorney Coats. "These collections are more important than ever and we are committed to recovering the financial losses suffered by victims of crime and money obtained by fraud on the government. The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime. We will continue to hold accountable those who seek to profit from their illegal activities."
Significant Cases in the Western District of Oklahoma
In July of this year, the Western District of Oklahoma, in collaboration with the Civil Division of the Department of Justice, announced the resolution of parallel criminal and civil cases against Wyeth Pharmaceuticals, Inc., for the unlawful "off-label" marketing of the prescription drug Rapamune for uses not approved as safe and effective by the FDA. The case concluded with a joint resolution of criminal liability and two civil qui tam cases where Wyeth pled guilty to a criminal misbranding violation under the Federal Food, Drug and Cosmetic Act and paid $490.9 million to resolve its criminal and civil liability arising from the qui tam and criminal cases. The settlement included civil settlements totaling $257.4 million, a criminal fine of $157.58 million, and forfeiture of $76 million.
In April, the Western District of Oklahoma recovered $11,000,000 from CVS Pharmacy, Inc., and Oklahoma CVS Pharmacy, L.L.C., for alleged record-keeping violations under the Controlled Substances Act. The government alleged that CVS (1) used invalid “dummy” DEA registration numbers of prescribing practitioners on dispensing records, (2) filled prescriptions for certain prescribers whose DEA registration numbers were not current or valid, and (3) maintained dispensing records using the DEA registration numbers of non-prescribing practitioners substituted for the actual prescribing practitioners. Accurate prescription records provided to state prescription drug monitoring programs play a vital in ensuring the appropriate handling, accounting, and distribution of controlled substances.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
United States Attorney Announces Financial Recoveries of over $81 Million in Eastern Wisconsin and over $8 Billion Nationwide on Behalf of United States TaxpayersRead the Press Release
United States Attorney James L. Santelle announced today that, in Fiscal Year 2013 (October 1, 2012 – September 30, 2013), the Eastern District of Wisconsin Office collected $9,664,591.85 in civil and criminal cases. Of this amount, $4,989,276.78 was recovered in criminal actions, and $4,675,315.07 was recovered in civil actions—all on behalf of the citizen-taxpayers nationwide.
Of the total recovered in civil and criminal matters, $350,357.94 was collected through the Treasury Offset Program—a centralized, nationwide program that identifies and offsets amounts from the federal and state income tax refunds of taxpayers who also owe monies to the United States. Other government-allocated benefits are also subject to collections offsets of this type.
In addition, the Office of the United States Attorney worked in partnership with various litigating divisions of the United States Department of Justice in Washington, D.C. and other Offices of United States Attorneys to collect another $71,380,274.14 in cases initiated and pursued jointly.
Working with partnered law enforcement agencies, offices, and units, the Office of the United States Attorney also recovered $2,989,821.00 in asset forfeiture actions in Fiscal Year 2013. These forfeited assets are deposited into the United States Department of Justice’s Asset Forfeiture Fund and are used to restore losses suffered by the victims of crime and to support various related types of law enforcement activities and functions.
In Washington, D.C., Attorney General Eric H. Holder, Jr. announced today that the United States Department of Justice collected approximately $8.1 billion in criminal and civil actions during the fiscal year ending on September 30, 2013. The more than $8 billion in collections in Fiscal Year 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 United States Attorneys’ offices and the main litigating divisions in that same period.
This national total includes all monies collected as a result of Justice Department-led actions and negotiated civil settlements, including payments made directly to the Justice Department and indirect payments made to other federal agencies, states, and other designated recipients. It necessarily includes some cases that were resolved in prior years but the proceeds of which were collected in Fiscal Year 2013.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
Joining the Attorney General in these announcements, Santelle commented: “I am exceptionally proud of the professional, dedicated, and productive work of my staff—including all of our criminal and civil attorneys and our equally stellar professional support personnel—who are collectively responsible for bringing into the coffers of the United States Treasury these dramatically significant sums. In our daily efforts to enforce the many civil and the criminal judgments entered in favor of the United States of America, we are aggressive yet even-handed, purposeful yet fair, and creative yet balanced in meeting one of our principal missions—that is, collecting monies due and owing to the federal government on behalf of the citizen constituents that we serve.”Santelle continued: “The people of the Eastern District of Wisconsin should know that, in Fiscal Year 2013, just recently concluded, the total operational budget for our office was approximately $8 millionToday’s announcement confirms that, during that same time period, we recovered approximately 10 times that amount in local and shared matters—confirming that our partnered, governmental operation is strikingly efficient, demonstrably potent, and genuinely cost-effective. I recognize especially the outstanding efforts of our Financial Litigation Unit, our Asset Forfeiture Unit, and our industrious colleagues in the many federal agencies, both civil and criminal, that we represent here in Eastern Wisconsin for this exceptional accomplishment.”
The Offices of the United States Attorneys, along with the litigating divisions of the United States Department of Justice, are responsible for enforcing and collecting civil and criminal debts of many kinds that are owed to the United States of America and that are due to the victims of various types of federal crimes. The federal law contemplates that defendants convicted of those crimes pay restitution to those victims who have suffered physical injuries or financial losses. While restitution is paid to the victims, criminal fines and related assessments are paid to the United States Department of Justice’s Crime Victims Fund, which distributes monies to state victim compensation and victim assistance programs.
As one example of a significant recovery in a criminal matter, Santelle described a case in which the defendant, Craig Kelly, had embezzled well over $1 million from his employer. “Through that prosecution,” Santelle explained, “our office collected $1,039,881.00, which was used to satisfy a substantial percentage of the restitution due and owing to the defendant’s former employer. Working in close and effective partnership with the United States Secret Service, the legal staff of our Asset Forfeiture Unit recovered those monies by tracing proceeds of the embezzlement scheme to valuable assets—including the defendant’s residence, retirement accounts, life-insurance policies, boat, wine collection, and timeshare interests. The United States then forfeited those assets and turned over the resulting proceeds to the victim-former employer.”
Nationwide and locally, the largest civil collections amounts result from the litigation of affirmative enforcement actions, through which the Offices of the United States Attorneys and the United States Department of Justice recover federal dollars lost to fraud or other types of misconduct; these sums also include fines imposed on individuals and corporations for their proven violations of federal health, safety, civil rights, environmental, and other program-type laws. These civil monetary obligations are enforced by the United States Attorneys and their staffs on behalf of many federal agencies—including but not limited to the United States Department of Health and Human Services, the United States Department of Housing and Urban Development, the United States Department of Education, the United States Department of Agriculture, the United States Department of the Treasury (including the Internal Revenue Service), and the United States Small Business Administration.
As one of the notable examples of significant recoveries in the affirmative enforcement mission of his office, Santelle described the successful action against national hardware distributor W.W. Grainger, Inc. (“Grainger”) that paid $70 million following an investigation of false claims made in connection with contracts with the General Services Administration (“GSA”) and the United States Postal Service (“USPS”). “The settlement in that matter focused on a contract entered into by the Lake Forest, Illinois-based company to sell hardware products to government customers through the GSA’s Multiple Award Schedule (“MAS”) program,” Santelle reported. “The resolution of the claims disposed of issues identified during a GSA post-award audit of Grainger’s MAS contract. Like many of our affirmative enforcement cases, this settlement was the product of highly coordinated, effectively pursued efforts among the Commercial Litigation Branch (Civil Division of the United States Department of Justice), the Office of the Inspector General of the GSA, the Offices of the Inspector General and of the General Counsel of the USPS, and the Civil Division in our office here in Eastern Wisconsin.”
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For further information about the information and commentary in this release, please contact Public Information Officer Dean Puschnig, Office of the United States Attorney for the Eastern District of Wisconsin, at (414) 297-1700 or at dean.puschnig@ usdoj.gov.U.s. Attorney's Office for the Eastern District of Louisiana Collects over $366 Million in Civil and Criminal Actions for U.s. Taxpayers in Fiscal Year 2013Read the Press Release
U.S. Attorney Kenneth A. Polite, Jr. announced today that the Eastern District of Louisiana U.S. Attorney’s Office collected $366,530,698.00 in criminal and civil actions in Fiscal Year 2013. Additionally, the Eastern District of Louisiana worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $588,643,036.25 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced on Wednesday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorneys’ Offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
U.S. Attorney Polite also commented on the FY 2013 figures:
“The collection of criminal and civil debts owed to the United States replenishes the public treasury, makes crime victims financially whole, and ensures that federal debtors timely and fully address the consequences of their conduct. As such, aggressive collection of civil judgments and criminal fines and restitution has been, and will continue to be, a hallmark of this office’s work on behalf of the residents of the Eastern District of Louisiana.”
As just one example, in the summer of 2012, the Eastern District of Louisiana recovered $400,000.00 in victim restitution from defendant Reginald Harper, who was convicted along with co-defendant Troy Fouquet of conspiracy to commit bank fraud. Harper and Fouquet were ordered to pay restitution in the amount of $570,955.71 to First Community Bank.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
U.S. Attorney’s Office in Kansas Collects $12.1 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
KANSAS CITY, KAN. - U.S. Attorney Barry Grissom announced today that the District of Kansas collected $12.1 million in criminal and civil actions in Fiscal Year 2013. Of this amount, $6.1 million was collected in criminal actions and $6 million was collected in civil actions
Additionally, the District of Kansas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional 2.8 million in cases pursued jointly with these offices in civil actions.
Attorney General Eric Holder announced on Thursday that the Justice Department collected more than $8 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“In Kansas, we are fighting to recover funds for victims of federal crimes and the federal treasury,” said U.S. Attorney Barry Grissom. “We are holding accountable offenders who try to make a profit from violating the law.”
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
For example: In Fiscal Year 2013, the District of Kansas collected more than $853,000 in U.S. v. Hutchinson Regional Medical Center, Inc., as a result of a settlement reached for allegations that the hospital submitted false claims to the Medicare Program. In addition, more than $1.7 million was collected in U.S. v. Coffeyville Resources Refining & Marketing and more than $1.6 million in U.S. v. Ash Grove Cement, both amounts representing civil penalties in violation of the Environmental Protection Act.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in District of Kansas working with partner agencies and divisions, collectedmore than $5.2 millionin asset forfeiture actions in FY 2013.Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office for the Eastern District of Michigan Collects $219,630,095.00 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Detroit – United States Attorney Barbara L. McQuade announced today that the Eastern District of Michigan collected $219,630,095.00 in criminal and civil actions in Fiscal Year 2013. Of this amount, $204, 334,075.94 was collected in criminal actions and $15,296,019.06 was collected in civil actions
Additionally, the Eastern District of Michigan worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $84,508,264.20 in cases pursued jointly with these offices. Of this amount, $35,054.89 was collected in criminal actions and $84,473,209.40 was collected in civil actions.
Attorney General Eric Holder announced on Thursday that the Justice Department collected $8 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8.1 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
United States Attorney Barbara L. McQuade stated, “Thanks to the hard work of attorneys and support professionals in the U.S. Attorney’s Office, we were able to collect money that will be returned to victims of crime and taxpayers. These numbers are particularly impressive in light of the government shutdown, budget cuts and the hiring freeze that has reduced our personnel. The fact that our office collects far more than it spends demonstrates the illogic of across-the-board budget cuts that reduce our ability to collect funds for taxpayers.”
This past July, the Eastern District of Michigan obtained $4 million in the settlement of a lawsuit brought under the False Claims Act against a cardiology practice and a hospital in Jackson, Michigan. The complaint alleged that cardiologists employed by Jackson Cardiology Associates performed medically inappropriate cardiac procedures, including invasive catheterizations at Allegiance Health in addition to performing a variety of other office-based medically unnecessary test. A portion of the settlement with Allegiance Health also covered medically unnecessary peripheral stents performed on an outpatient basis.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Eastern District of Michiganworking with partner agencies and divisions, collected a total of $7,967,328.00 in both Department of Justice and Department of Treasury asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office for the Eastern District of California Collects $63.8 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Total Recoveries Including Shared Cases and Forfeitures Exceeds $81.9 Million
SACRAMENTO, Calif. — U.S. Attorney Benjamin Wagner announced today that the U.S. Attorney’s Office for the Eastern District of California collected $63,833,023 in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,317,646 was collected in criminal actions and $61,515,377 was collected in civil actions.
Additionally, the Eastern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,917,100 in cases pursued jointly with these offices. Of this amount, $108,208 was collected in criminal actions and $11,808,892 was collected in civil actions.
Total collections in civil and criminal cases involving the office, therefore, were in excess of $75.6 million. These figures represent actual dollars received, not judgment amounts.
Additionally, the U.S. Attorney’s Office in the Eastern District of California, working with partner agencies and divisions, collected $6,183,607 in asset forfeiture actions in FY2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. When forfeitures are added to collections in civil and criminal cases, total recoveries in FY 2013 involving the Eastern District exceeded $81.9 million.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Financial recoveries are a critical part of the Department’s mission to hold those who violate the law accountable for the injury they cause to victims and the general public,” said U.S. Attorney Wagner. “Each year we collect far more for victims and taxpayers than the total cost of operating our office. During this time of continued fiscal constraint, these collections are more important than ever. We will continue to aggressively pursue compensation from those who commit crimes in our district and civil wrongs, to ensure that the wrongdoers — not the public — bear the costs of unlawful conduct here in the Eastern District of California.”
Major recoveries in the Eastern District of California in FY 2013 included $45 million from PG&E and its contractor Provco for damages caused by the Power Fire, which burned approximately 13,000 acres of the El Dorado National Forest in October 2004, and an additional $5.5 million from PG&E and its contractors ACRT, Inc. & Davey Tree for damages caused by the James Fire on the Mendocino National Forest in June 2008. The district also recovered $14.2 million on a settlement of allegations that Adventist Health improperly compensated physicians who referred patients to Adventist’s White Memorial facility, in violation of the Anti-Kickback Act and Stark Statute.
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The figures announced today do not include money recovered on the recent $13 billion settlement of fraud claims against JPMorgan Chase & Co. in connection with residential mortgage backed securities. Although several billion dollars has already been paid on that settlement, the payments were received in Fiscal Year 2014 (which began in October) and so will be included in a future announcement on recoveries during that fiscal year.
U.S. Attorney’s Office Collects over $45 Million in Civil and Criminal Actions for U.S. Taxpayers in FY 2013Read the Press Release
Alexandria, Virginia – Acting U.S. Attorney Dana J. Boente announced today that the Eastern District of Virginia (EDVA) collected $45,088,361.82 in criminal and civil actions in Fiscal Year 2013. Of this amount, $24,291,184.24 was collected in criminal actions and $20,797,177.58 was collected in civil actions
Additionally, EDVA worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $473,911,812.38 in cases pursued jointly with these offices. Of this amount, $2,384,207.68 was collected in criminal actions and $471,527,604.70 was collected in civil actions.
Attorney General Eric Holder announced on Wednesday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“The collections announced today reflect the tremendous work being done to recover the ill-gotten gains of criminal activity, protect American taxpayers from fraud and other misconduct, and enforce civil rights,” said Acting U.S. Attorney Boente. “We are committed to working with the Justice Department and our law enforcement partners to hold accountable those who harm members of the community and the public fisc.”
In March 2013, the U.S. Attorney’s Office recovered $3 million as part of a settlement with three CIA contractors—American Systems Corporation, Anixter International Inc., and Corning Cable Systems LLC—regarding allegations that the companies violated the False Claims Act and the Anti-Kickback Act in bidding on a contract with the CIA. The United States alleged that the contractors provided gratuities, including meals, entertainment, gifts, and tickets to sporting and other events, to CIA employees and outside consultants in order to influence contract specifications that would favor the three companies in the award of the contract. The settlement also resolved allegations that the three companies improperly received source selection information from a CIA employee to whom they had provided gratuities, and that they had concealed the gratuities prior to award.
During fiscal year 2013, the U.S. Attorney’s Office for the Eastern District of Virginia also worked with the Justice Department’s Civil Rights Division and other U.S. Attorney’s Offices to collect and disburse funds paid from a major settlement to resolve claims of discrimination in mortgage lending programs operated by Wells Fargo Bank. As part of that settlement, Wells Fargo agreed to pay over $184 million to borrower assistance programs and related efforts targeted at helping African-American and Hispanic homeowners in affected communities.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office, working with partner agencies and divisions, collected $17,921,285 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.U.S. Attorney’s Office Collects $6.8 Million in Criminal and Civil Actions in FY 2013Read the Press Release
SHREVEPORT/LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that the U.S. Attorney’s Office for the Western District of Louisiana collected $6,876,596.69in criminal and civil actions in Fiscal Year 2013. Of this amount, $6,577,567.18 was collected in criminal actions and $299,029.51 was collected in civil actionsThe U.S. Attorney’s Office also worked with other offices and components of the Department of Justice to collect $508,781.75.
Additionally, the U.S. Attorney’s Office in the Western District of Louisiana collected$1,162,569 in asset forfeiture actions in FY 2013.Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
Included in the FY 2013 criminal collections, the Western District of Louisiana recovered $2,000,000 in court-ordered restitution from Pelican Refining owed to the National Fish and Wildlife Foundation, to the Louisiana State Police, and to the Louisiana Environmental Trust Fund for violations of the Clean Air Act. A judgment was imposed against Pelican Refining on December 15, 2011, and the defendant agreed to an immediate payment of $2,000,000, and $2,000,000 per year for the next five years. Collected so far is $4,001,200 with a balance due of $8,010,970.19.
The U.S. Attorneys’ offices are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department of Justice Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime,” stated U.S. Attorney Stephanie A. Finley. “Victims depend on our office to collect restitution. We will continue to make every effort to collect restitution on behalf of victims and hold accountable those who seek to profit from illegal activities.”.
For further information, the U.S. Attorneys’ annual statistical reports can be found at http://www.justice.gov/usao/resources/reports/U.S. Attorney’s Office Collects $3,240,685.55 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
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(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II, announced today that the Northern District of West Virginia collected $3,240,685.55 in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,355,043.62 was collected in criminal actions and $885,641.93 was collected in civil actions.
Additionally, the Northern District worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,028,221.11 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents over three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“My office works hard every day to protect the public and to recover funds for the federal treasury and for victims of crime,” said Ihlenfeld. “And for those who seek to profit from their illegal activities, we will continue to do everything within our power to take away assets that are acquired through criminal conduct.”
The largest criminal collection in the Northern District of West Virginia was the payment of $963,367.17 in restitution from Bernie Metz through the liquidation of the Roadworthy Tavern and Resort in West Liberty, WV, and several vehicles seized through the criminal asset forfeiture process. Metz was the former Chief Executive Officer at Center Valley Credit Union in Wheeling, WV where she embezzled $8,989,484 from customers, leading to the credit union’s bankruptcy. Metz still owes almost $3.9 million in restitution.
Other large criminal collections from the last fiscal year include:
- $600,000.00 paid by Chesapeake Appalachia, LLC as a result of its conviction on three counts of unauthorized discharge into a waterway of the United States, in violation of the Clean Water Act, relative to the dumping of approximately 60 tons of crushed stone and gravel on three different occasions into Blake Fork in Wetzel County, West Virginia, while developing access roads to a natural gas drilling site.
- $502,278.63 paid by Joseph Yurigan, D.C. of New Alexandria, PA as a result of his conviction for submitting fraudulent claims to Medicare and Medicaid. Although Yurigan still owes $322,692.03 to the Internal Revenue Service, nearly all of the restitution was paid at sentencing. The victims include Ohio Bureau of Workers’ Compensation, the West Virginia Insurance Commissioner, and BrickStreet Insurance.
Large civil collections from 2013 include:
- $11,000,000.00 paid by Vertullus Specialties, Inc. as a result of the entry of a Consent Judgment wherein it agreed to the payment of a civil penalty for violations of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, (CERCLA) regarding clean-up costs at the Sharon Steel/Fairmont Coke Works property along Hoult Road in Fairmont, WV.
- $660,000.00 paid by the Ohio Valley Health Education & Services Corporation (OVHS&E), Ohio Valley Medical Center (OVMC), and East Ohio Regional Hospital (EORH) in FY 2013 on a case that was settled in FY 2012. These entities still owe nearly $1.84 million dollars to the federal government for violations of the Stark Act and improper compensation arrangements with physicians.
- $116,188.03 paid by Meadows Stone & Paving, Inc., Gassaway, West Virginia for penalties, interest and administrative fees regarding citations issued to it by the Mine Safety and Health Administration as a result of safety violations at its quarry operated at or near Valley Head, Randolph County, West Virginia.Large criminal asset forfeitures for FY 2013 include:
- $2,078,595.96 in assets and currency from Jeffrey Paglia as a result of his convictions for “Conspiracy to Distribute Controlled Substances” and “Structuring Monetary Transactions to Avoid Reporting Requirements.” Of this amount, $1,099,968.83 is the appraised value on real and personal properties and $978,627.14 is in United States currency. Paglia previously operated a store in Clakrsburg known as “Hot Stuff, Cool Things” from which he sold a synthetic drug sometimes referred to as Bath Salts.
- $130,200.00 forfeited by John Amorusco, Jr. as a result of his conviction for “Conspiracy to Distribute Marijuana.”
- $76,625.00 in assets and currency from Kimberly Mull as a result of her conviction for “Conspiracy to Distribute Controlled Substances.” Of this amount, $76,625.00 is the appraised value on forfeited vehicles and $50,000.00 is in United States currency.
The U.S. Attorneys’ Offices, along with the Departments litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance program.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, Ihlenfeld’s office, while working with partner agencies and divisions, collected $2,527,824.36 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Collects $15 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
SAN DIEGO - U.S. Attorney Laura E. Duffy announced today that the Southern District of California collected $15,576,798.02 in criminal and civil actions in Fiscal Year 2013. Of this amount, $11,799,803.27 was collected in criminal actions and $3,776,994.75 was collected in civil actions.
Additionally, the Southern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $12,727,907.87 in cases pursued jointly with these offices. This amount was collected in joint civil actions.
Attorney General Eric Holder also announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the 2 resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
U.S. Attorney Laura Duffy said, “Restitution to victims is justice in its simplest form. The Southern District of California strives to keep up with the rapidly increasing restitution debt and works hard to increase the amount collected each year.”
This past June, the Southern District of California recovered approximately $1.2 million in restitution and $500,000 in fines as part of the criminal case in U.S. v. Joel Bernstein, M.D., Inc., 13CR0119-CAB. In a related civil case, U.S. v. Joel Bernstein, M.D., Inc., 13CV0153-BEN, the United States recovered $2.2 million in a settlement agreement that was offset by the criminal restitution. Dr. Bernstein, a La Jolla, CA oncologist, defrauded Medicare by purchasing unapproved foreign cancer drugs and billing it to Medicare. In the related civil False Claims Act lawsuit filed by the United States, Dr. Bernstein was permitted to pay $2.2 million to settle the lawsuit and have that amount applied to criminal restitution owed to Medicare.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Southern District of California, working with partner agencies and divisions, collected $11,968,370.00 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Collects $13 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
U.S. Attorney Tristram J. Coffin announced today that the District of Vermont collected $8,078,858 in criminal and civil actions in Fiscal Year 2013. Of this amount, $1,481,573was collected in criminal actions and $6,597,285 was collected in civil actions Additionally, the office collected $4,970,388 in criminal and civil forfeitures, for a total recovery of $13,049,246. The largest part of that amount was $4.3 million recovered last May as part of the settlement relating to tax and health care fraud violations of three former officers of Bennington School, Inc.
Attorney General Eric Holder announced on Thursday that the Justice Department collectedapproximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney’s Office Collects $11.6 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
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United States Attorney Deirdre M. Daly today announced that the U.S. Attorney’s Office collected $11.6 million in criminal and civil actions in Fiscal Year 2013. Of this amount, $4.3 million was collected in criminal actions, $3.8 million was collected in civil actions and an additional $3.5 million was collected through asset forfeiture.
The District of Connecticut also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect approximately $26 million in cases pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Every day, our attorneys and staff work tirelessly to protect the public and seek justice for victims of crime,” said U.S. Attorney Daly. “Often, justice comes in the form of financial restitution, and the funds collected are provided directly to victims of crime. Funds are also used to provide needed services to victims and to fund ongoing federal, state and local law enforcement efforts. I want to specifically acknowledge the dedicated efforts of the Office’s Civil Division and Financial Litigation Unit, which, every year, recover millions of dollars of taxpayer funds. ”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
During FY2013, more than $4.3 million was collected for special assessments, fines and restitution from federal criminal offenders who were prosecuted by Connecticut’s U.S. Attorney’s Office.
The largest civil collections were from affirmative civil enforcement cases, in which the U.S. recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The Office’s Financial Litigation Unit (FLU) litigates debt collection issues and enforces collection of criminal and civil debts owed to the United States or to victims of federal crime. The FLU enforces collection of civil debts on behalf of federal agencies in litigation that most often involves federal loan programs, civil penalties assessed by federal agencies and civil fraud actions litigated by the U.S. Attorney’s Office. In FY2013, the office collected approximately $3.8 million from Connecticut debtors in satisfaction of their federal civil debts, including False Claims Act recoveries, such as procurement and health care fraud, and civil penalty and debt collection matters such as bankruptcy, student loans and foreclosures.
Additionally, the U.S. Attorney’s Office, working with partner agencies and divisions, collected $3.5 million in asset forfeiture actions in FY 2013. Those who are convicted of federal crimes are often subject to criminal asset forfeiture proceedings, whereby the government seizes property that was involved in or represents the proceeds of criminal behavior. Property can also be forfeited through civil forfeiture actions. The proceeds of forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and Department of Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. Forfeited assets are also provided to state and local law enforcement through the Equitable Sharing Program.
The U.S. Attorney’s Office for the District of Connecticut is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District. The Office employs approximately 64 Assistant U.S. Attorneys, 45 staff members and 13 contractors at offices in New Haven, Hartford and Bridgeport.
For further information, the United States Attorneys’ Annual Statistical Reports can be found on the Internet at www.justice.gov/usao/reading_room/foiamanuals.html. More information about the Crime Victims Fund can be found at www.ovc.gov/about/victimsfund.html.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]U.S. Attorney's Office Recovers More Than $366 Million on Behalf of U.S. Taxpayers in FY 2013Read the Press Release
Tampa, FL – Acting U.S. Attorney A. Lee Bentley, III announced today that the Middle District of Florida (MDFL) collected over $366 million in Fiscal Year (FY) 2013 in criminal, civil, and forfeiture actions. Almost $30 million was recovered in criminal actions, most of which will be distributed to crime victims. Approximately $290 million was collected in civil actions, including in excess of $96 million as a result of approximately nine major civil fraud settlements arising from cases filed in the MDFL. The amounts recovered in civil lawsuits over and above $96 million resulted from recoveries in cases involving other judicial districts, most notably a major nationwide discriminatory lending case brought by the Department of Justice Civil Rights Division.
Additionally, the office collected $46.2 million in criminal and civil forfeitures Forfeited assets are deposited into the Departments of Justice and Treasury Assets Forfeiture Funds and are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, approximately $3.1 million in forfeited funds was used to compensate crime victims and more than $20 million is in the process of being returned to victims this year. In addition, approximately $3.5 million in forfeited funds was shared with state and local law enforcement agencies, and property valued at more than $55,000 was retained by federal law enforcement agencies for official use.
“Recovering monies from convicted criminals and others defrauding the government is critical to our mission,” said Acting U.S. Attorney A. Lee Bentley, III. “Working alongside our law enforcement partners and other federal, state, and local agencies, our efforts ensure not only that criminals and others committing fraud are held fully accountable for their offenses, but also that we help victims recover from their losses to the extent possible. In addition, a huge portion of the recovered funds is used to replenish public resources.”
Attorney General Eric Holder announced on Thursday that the Justice Department collected $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.” The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The Middle District of Florida has historically had one of the busiest whistleblower case dockets in the country, and in FY2013 placed third among the 94 judicial districts in qui tam cases filed under the False Claims Act. The significant FY 2013 recoveries in the Civil Division's affirmative enforcement program were driven in large measure by a national discriminatory lending case and settlements in cases filed by private whistleblowers involving fraud against federal healthcare programs (see case highlights for details).
For further information, view the United States Attorneys' Annual Statistical Reports on the internet at http://www.justice.gov/usao/resources/annual-statistical-reports. See highlighted cases below from the U.S. Attorney's Office for the Middle District of Florida.
Middle District of Florida Affirmative Case Highlights
Wells Fargo lending settlement
In the past fiscal year, the MDFL partnered with the Department of Justice Civil Rights Division in a major national discriminatory lending case against a large institutional lender, Wells Fargo Bank. The investigation, spearheaded by the Civil Rights Division, found that Wells Fargo discriminated against African American and Hispanic borrowers by charging higher fees and interest rates than non-Hispanic white borrowers, in the wholesale and retail markets. These practices were without regard to the credit applicants’ creditworthiness or objective criteria related to risk. Wells Fargo was found to have discriminated against 30,000 borrowers from 2004 and 2009, eventually settling the claims against it, in return for $175 million.
United States ex rel Freedman v. SuarezHoyos, et al.
The MDFL intervened in this civil qui tam case, in which a physician whistleblower alleged that a local pathology lab and a dermatologist violated the federal anti-kickback statutes through an arrangement in which the pathologist agreed to provide the dermatologist with an opportunity to bill Medicare and other federal health programs for work that the dermatologist did not perform. This arrangement was designed to induce referrals of Medicare business from the dermatologist to the pathology lab. In investigating this claim, the MDFL uncovered other significant schemes by the dermatologist, including upcoded claims for dermatology services and billing Medicare for expensive surgical services that he did not perform. In an earlier settlement, the pathologist defendant agreed to settle the civil kickback claims against him, in return for $1 million. In FY2013, the MDFL settled all of its claims against the dermatologist for an additional $26.2 million. It is believed to be the largest settlement with an individual physician in the history of the False Claims Act.
United States ex rel. Myers v. Shands Healthcare, et al.
The MDFL intervened, in part, in this civil qui tam case filed by an officer of a health care consulting firm against the Shands hospital chain in North Florida. The whistleblower alleged that from 2003 through 2008, six of the system’s hospitals submitted claims for reimbursement of inpatient hospital services, when those claims should have been for outpatient services. In August, 2013, we announced a settlement that paid $26 million to resolve these civil claims. Of this amount, $25,170,440 was paid to Medicare and other federal payors, while $829,600 went to the Florida Medicaid program. At the time that it was announced, the Shands settlement was the largest on record to address allegations of this kind.
United States ex rel. Ferrare v. Morton Plant Mease Healthcare, et al.
The qui tam case was filed by a former director of case management for Morton Plant Hospital. She alleged that the Morton Plant chain of hospitals used a written billing protocol to require its hospitals to bill certain interventional cardiology procedures on an inpatient basis, regardless of whether the patients’ condition justified those claims. In November 2012, the MDFL settled the civil claims in the case against the chain of hospitals for $10.1 million.
United States ex rel. Ferner v. Stallings, et al.
This was a procurement fraud case filed by a whistleblower who alleged that a government contractor, SAIC, used fraud to deceive the General Services Administration to steer federal consulting services contracts to it. The whistleblower – a former military officer – alleged that a private individual had misrepresented himself to be a senior government executive with the Department of Defense, in order to bypass competitive bidding and win government contracts for SAIC. The MDFL intervened in the case and settled all claims for $5.75 million.
United States ex rel. Numbers et al. v. Hernando Pasco Hospice Inc., et al.
This qui tam case was filed by two former employees of a non-profit hospice company based in Hernando County. They alleged that the hospice provider had submitted false claims to Medicare and Medicaid for reimbursement of hospice services to patients who did not qualify for the services. After a lengthy investigation, the MDFL intervened and settled the claims based upon the provider’s ability to pay, for $1,000,000, payable in installments over time plus interest.
Mortgage Investors Corp. consent decree
The MDFL assisted the Federal Trade Commission in its effort to confront violations by a St. Petersburg based residential lending firm of federal Do Not Call statutes. The FTC found that the firm had targeted veterans with a campaign of home mortgage telemarketing calls, contacting 5.4 million homes in violation of federal law. The FTC imposed a record civil penalty of $7.5 million under the Do Not Call statute.
Middle District of Florida Asset Forfeiture Case Highlights
United States v. $20,000,000 (Jacksonville Division)
As part of the Non-Prosecution Agreement (NPA) entered into between the United States and Lender Processing Services (LPS), the United States completed a civil forfeiture of $20 million, which it alleged was derived from the mail fraud and wire fraud scheme perpetrated through DocX involving the preparation and filing of an estimated one million mortgage documents with false and misleading signatures and notarizations. DocX was at relevant times, a wholly-owned subsidiary of LPS. LPS, without admitting or denying the allegations regarding DocX’s proceeds, consented to the civil forfeiture of the $20 million.
United States v. Louis Fernandez, III, et al. (Tampa Division)
Defendants Louis Fernandez, III, Louis Fernandez, Jr., Marco Beltran, Kimberly Curtis, and Christopher Switlyk pleaded guilty to conspiracy to illegally distribute and dispense controlled substances. The defendants, operated pain clinics and pharmacies, for the purpose of unlawfully distributing and dispensing controlled substances, primarily Oxycodone, a prescription painkiller sold generically or under a variety of brand names, including Roxicodone, Roxicet, Oxycontin, Percocet, and Endocet. Defendants Beltran and Switlyk also pleaded guilty to engaging in unlawful monetary transactions. As part of their plea agreements, the defendants consented to the forfeiture of more than $2.5 million in drug proceeds seized from them as well as a Rolex watch, car, and real property that had been purchased with drug proceeds. Additionally, in fiscal year 2011, the government forfeited more than $3.6 million in drug proceeds that had been seized from the defendants during execution of search warrants.
United States v. Dennis Devlin (Orlando Division)
In July 2011, Dennis Brian Devlin, of Daytona Beach, was sentenced to 15 years in federal prison for sexually exploiting a minor. As part of Devlin’s sentence, the court ordered Devlin to forfeit his interest in the Desert Inn because it was used to facilitate the crimes for which he was convicted. The titled owner of the Desert Inn, Deslin Hotels, Inc., filed a claim to contest the forfeiture of the hotel because it alleged that Devlin did not have an interest in the hotel. In September 2013, after months of litigation, a settlement was reached wherein Deslin Hotels, Inc. agreed to the forfeiture of $1,552,588.62, representing Devlin’s interest in the proceeds obtained from the recent sale of the Desert Inn.
United States v. $1,820,008.93 (Ft. Myers Division)
The United States civilly forfeited approximately $1.8 million in proceeds of online gambling, which is illegal in the state of Florida, for violations of wire fraud. The funds were seized as they were being wire transferred through Deutsche Bank Trust Company Americas. Deutsche Bank’s policy was not to accept wire transfers that were related to online gambling of any sort whether legal or illegal. Indeed, the bank had created a filter for key words in wire transfers in order to identify and prevent the receipt and/or transmission of wires related to online gambling. As alleged in the amended complaint, Chargestream, a company wiring gambling winnings to gamblers in the United States, created a series of letter and number identifiers in their wires in order to disguise the nature of the wires and to evade bank filters.
U.S. Attorney's Office Collects over $26.5 Million in Civil, Criminal Actions in 2013Read the Press Release
KANSAS CITY, Mo. – United States Attorney Tammy Dickinson announced today that the Western District of Missouri collected more than $26.5 million in criminal and civil actions in Fiscal Year 2013. Of this amount, more than $14.8 million was collected in criminal actions, more than $6.2 million was collected in civil actions and nearly $5.5 million was collected through the seizure of assets that were forfeited to the government.
The Western District of Missouri also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $10.6 million in cases pursued jointly with these offices, primarily in civil actions.
Attorney General Eric Holder announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“The pursuit of justice involves not only prosecuting criminals, but being diligent to collect the fines levied by the court and restitution payments on behalf of the victims of crime,” Dickinson said. “I am determined that criminals will not profit from their crimes, but will lose their ill-gained assets through forfeiture. And I am equally determined that those involved in civil actions must pay the government what they owe.
“Our office had a budget of $10.5 million in FY 2013 and collected more than $26.5 million that was owed to the court, to victims of crime and to the government,” Dickinson added. “By generating revenue of more than double our annual budget, taxpayers can be assured that we are efficiently allocating our budget resources to safeguard their interests.”
Nearly $15 million in civil and criminal debts was collected in the Western District of Missouri in 2012 and nearly $24 million was collected in 2011.
US v. Sheffler, et al. : $3.8 million
As an example of FY 2013 collections, an Independence, Mo., business owner and a Wichita, Kan., attorney were among 18 defendants indicted in a more than $17 million, multi-state conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they allegedly were sold primarily on Indian reservations. In addition to the federal indictment, an undercover operation by the Bureau of Alcohol, Tobacco, Firearms and Explosives resulted in a $3.5 million civil forfeiture and a non-prosecution agreement that requires a Winnebago, Neb. company to pay a $300,000 penalty.
Following the seizures that occurred as a result of the investigation, the U.S. Attorney’s Office started a civil forfeiture case naming the assets taken up to that point. On Oct. 23, 2012, the court entered a default order of forfeiture for more than $2 million seized from bank accounts and by agents, more than 300 cases of seized cigarettes, a 2009 Cessna T206H Stationair aircraft, two 2012 Peterbilt 389 trucks and two 2012 Peterbilt 386 trucks. The seized cigarettes have been sold at auction for $532,500. The 2009 Cessna Aircraft has been sold for $450,000. The four trucks have been sold for the following amounts: $115,000; $115,000; $113,000; and $113,000. The civil case has been stayed pending the resolution of the criminal case.
Illegal Online Gambling: $921,416
As a result of a nationwide federal investigation into illegal online gambling, $921,416 was seized from the bank accounts of Integration, Inc., of Enfield, Conn.; The Club Services of Las Vegas, Nev.; Triple Beam Media of Williamsville, N.Y.; and Ontario Limited/Aramor Payments of Toronto, Ontario, Canada.
Integration operates as a third party processor involved in, among other things, the distribution of commercial rebate checks. Investigation determined that Integration also facilitated the distribution of winnings obtained through on-line Internet gambling Web sites such as Bodog Poker. Bank records for Integration indicated the company made disbursements, on behalf of Triple Beam Media, a shell corporation, to 8,753 residents of the United States, including 252 Missouri residents and 105 individuals who resided in the Western District of Missouri.
Under federal statutes, processing wires and mailing checks that represent the funds derived from illegal gambling constitutes money laundering. The transmission of gambling information constitutes a “specified unlawful activity” under the money laundering statutes. Any property involved in a money laundering transaction is subject to forfeiture to the government. Processing wires and mailing checks that represent the funds derived from illegal gambling also violates federal law regarding unlicensed money transmitting businesses.
Mario Escutia: $492,865
Law enforcement officers seized $492,865 that was found hidden in a Freightliner tractor and trailer driven by Mario Nambo Escutia, an owner-operator from California, during a routine inspection and compliance check at the commercial vehicle scales on Interstate 44 in Joplin, Mo. A drug-sniffing dog gave a positive indication for the presence of the odor of controlled substances from the money as well as inside the truck, but no controlled substances were found. Escutia was not prosecuted criminally, but the government filed a complaint for civil forfeiture against the money that was seized.
The money was furnished or intended to be furnished in exchange for a controlled substance, or it was proceeds traceable to such an exchange, or it was used or intended to be used to facilitate a drug-trafficking violation. As a result, the money is liable to condemnation and to forfeiture to the government.
US v. Arnold: $207,817
Jesse Arnold of Sarcoxie, Mo., forfeited $207,817 that was seized from his business bank account. He was sentenced to one year and one day in federal prison without parole for structuring financial transactions in order to evade federal reporting requirements as part of a scheme to sell stolen cooking oil that was intended for recycling. Arnold operated 4 States Grease Company, a collection facility for spent cooking oil. He admitted that he had reason to believe he was buying spent cooking oil that had been stolen by various drivers. In order to avoid federal reporting requirements that could bring unwanted scrutiny to 4 States, Arnold deliberately and knowingly structured withdrawals from his business checking account. Arnold withdrew some or most of the money in order to purchase the stolen spent cooking oil. Arnold made numerous withdrawals on consecutive days that were individually less than $10,000, but which totaled more than $10,000 when added together. Under federal law, banks must file a currency transaction report for any financial transaction over $10,000. The crime of structuring occurs when a person, in order to knowingly avoid the financial institution from filing a currency transaction report, breaks up the transaction into smaller components that are less than $10,000.
US v. David W. Scott: $182,617
David W. Scott pleaded guilty to his role in a conspiracy to distribute K2 (synthetic marijuana) and forfeited to the government $182,617 that was received in exchange for the distribution of K2. Scott owned and operated Country Express in Mountain Grove, Mo., which distributed K2. The money was seized by law enforcement officers who discovered it during a search of Scott’s Lincoln Navigator. Officers also seized hundreds of packages of K2 from Scott’s store, vehicle and residence, and thousands of packages of K2 from a storage unit.
Collection Amounts
The Western District of Missouri collected $26,575,724 in criminal and civil actions in Fiscal Year 2013. Of this amount, $14,823,396 was collected in criminal actions (such as fines and victim restitution), $6,283,214 was collected in civil actions, and $5,469,114 was collected in asset forfeiture actions.
(NOTE: Collection amounts released nationally by the Department of Justice today report $4,819,346 in forfeited assets deposited into the Department of Justice Assets Forfeiture Fund, which are used to restore funds to crime victims and for a variety of law enforcement purposes. An additional $649,768 in asset forfeitures was collected for the Department of Treasury, for total asset forfeiture collections in the Western District of Missouri of $5,469,114.)
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.U.S. Attorney's Office Collects over $6 Million on Behalf of U.S. Taxpayers in Fiscal Year 2013Read the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that it collected approximately $6.4 million in criminal and civil matters in Fiscal Year 2013 (October 1, 2013 to September 30, 2013).
Of the total amount, $2.9 million was collected in criminal cases; $3.5 million was collected in civil actions
Additionally, the staff of the U.S. Attorney’s Office Middle District offices in Scranton, Harrisburg and Williamsport worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect jointly an additional $1.2 million.
The U.S. Attorney’s Office’s Victim Rights and Asset Forfeiture Unit obtained approximately $5.8 million in forfeitures in criminal and civil cases, plus an additional $1.9 million in money judgments not yet collected.
Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for law enforcement purposes.
The office shared approximately $7.3 million in forfeited assets with 26 state and local law enforcement agencies in Fiscal Year 2013. Shared funds, which include forfeited assets deposited in previous years, are used by the state and local agencies to pay for services and needed equipment and supplies.
U.S. Attorney Peter Smith stated that, as an example of the success of the sharing program, in October 2013, nine local and state law enforcement agencies received a total of $2.3 million as their shares of funds forfeited in connection with the investigation and prosecution of an untaxed tobacco case by those agencies, the IRS and the U.S. Attorney’s Office for the Middle District of Pennsylvania during 2012-13.
The agencies included the Scranton, Wilkes-Barre, Hazelton, Dunmore, and Pocono Mountain Police Departments, the Lackawanna County District Attorney’s Office and the Pennsylvania State Police.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of other federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney's Office Announces Collections of $19,891,159 for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
St. Louis, MO - United States Attorney Richard Callahan announced today that for the fiscal year 2013, his office collected $11,448,830 in criminal and civil actions during the year. Of this amount, $10,113,957 was collected in criminal actions and $1,334,873 was collected in civil actions
In addition to the above eleven million dollars, the Office also assisted partner law enforcement agencies in the Eastern District of Missouri in collecting an additional $8,442,329 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Aside from these collection efforts in the Eastern District of Missouri, the office also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect additional monies, but those monies are not included in the numbers being announced.
Earlier today, Attorney General Eric Holder announced that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period."The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people," said Attorney General Holder. "It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment."
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.