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Thursday 9 January 2014
U. S. Attorney’s Office Collects $4,613,846 Through Civil and Criminal Actions in FY 2013Read the Press Release
SALT LAKE CITY - U.S. Attorney David B. Barlow announced Thursday that the District of Utah collected $4,613,846 in Fiscal Year (FY) 2013 related to criminal and civil actions. Of this amount, $2,321,772 was collected in criminal actions and $2,292,074 was collected in civil actions. The U.S. Attorney’s Office is responsible for enforcing and collecting civil and criminal debts owed to the United States and restitution owed to federal crime victims.
The District of Utah also worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $212,138,108 in civil cases pursued jointly with these offices.
The U.S. Attorney’s Office, working with partner agencies, deposited an additional $3,277,685 in asset forfeiture funds into the Department of Justice’s Asset Forfeiture Fund, which is used to restore funds to crime victims and for a variety of law enforcement purposes. The office also paid $253,498 in forfeited funds to crime victims for restitution and shared $645,447 with local law enforcement agencies who participated in the prosecution of federal cases. Asset forfeiture is an effective deterrent to crime and is used to disrupt and dismantle criminal organizations that attempt to profit from their unlawful activity and to restore property to crime victims.
“We take our responsibility to recover funds for the federal treasury and for victims of federal crime very seriously. We will also continue to hold accountable those who seek to profit from their illegal activities,” U.S. Attorney Barlow said today.
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 its main litigating divisions.
“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.
U.S. Attorneys’ Offices, along with Department of Justice litigating divisions, 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 a 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 programs.
The largest civil collections come from affirmative civil enforcements cases, in which the United States recovered government money lost to fraud, fire recovery, or other misconduct or collected fines imposed on individuals or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts are collected on behalf of 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 $14.5 Million in Civil Actions, Criminal Actions & Forfeitures in FY 2013Read the Press Release
BIRMINGHAM – The U.S. Attorney's Office for the Northern District of Alabama collected $2.3 million in Fiscal Year 2013 from criminal and civil actions, and an additional $12.2 million in criminal and civil forfeitures, announced U.S. Attorney Joyce White Vance.
In addition to the $2.3 million the office collected on its own through civil and criminal actions, it worked with other U.S. Attorney's Offices or Justice Department components to collect an additional $184 million in cases pursued jointly. The Northern District of Alabama participated in 2013 collections resulting from the Justice Department's $184 million fair lending settlement with Wells Fargo Bank.
U.S. Attorney General Eric Holder announced today that the Justice Department collected about $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30. The more than $8 billion in collections represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions for the 2013 fiscal year.
"The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” Holder said. “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.”
"I am proud of the hard work by employees in my office that allowed us to return more money to the taxpayer than we were allotted in our budget for the year," Vance said. "The $14.5 million we collected and recovered through forfeitures in local matters, along with the $184 million we worked with other offices and the Justice Department to collect, should leave no doubt that the U.S. Attorney's Office in North Alabama renders a great service to our community," she said.
Of the $2.3 million collected through civil and criminal actions in the Northern District of Alabama alone, $2.1 million was collected as part of criminal prosecutions and $216,562 was recovered through civil lawsuits and debt collections.
Among the cases that led to the office's $12.2 million in asset forfeitures was the conspiracy, fraud and money laundering conviction of Maurice William Campbell Jr. in a scheme to use his position as director of the Alabama Small Business Development Consortium to obtain $7.3 million from the state. A federal judge last year sentenced Campbell to 15 years in prison and ordered him to pay $5.9 million in restitution to the State of Alabama and to forfeit $7.6 million to the federal government as proceeds of illegal activity. The office seized $1.2 million in assets in the 2013 fiscal year towards the forfeiture judgment. Three other people who worked with Campbell were convicted in the fraud scheme.
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 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 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.
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.
For further information, the United States Attorneys’ Annual Statistical Reports can be found on the internet at http://www.justice.gov/usao/reading_room/foiamanuals.html
Two More Former Officers and Another Former Lieutenant at Roxbury Correctional Institution Plead Guilty for Conduct Related to the Assault of an InmateRead the Press Release
Edwin Stigile, formerly a Lieutenant at Roxbury Correctional Institution (RCI) in Hagerstown, Md., and two former RCI Correctional Officers, Tyson Hinckle and Reginald Martin, each pleaded guilty to an offense arising out of the assault of an inmate on Mar. 9, 2008. Hinckle pleaded guilty to conspiring to assault an inmate, identified by the initials K.D. Martin pleaded guilty to failing to intervene to stop the assault of K.D. Stigile admitted that he was guilty of destroying evidence related to that assault. Hinckle, Martin and Stigile are the ninth, 10th and 11th former RCI officers to enter a plea in connection with the federal investigation into a series of assaults that K.D. suffered at RCI on Mar. 8-9, 2008.
According to court documents filed in connection with his guilty plea, Hinckle admitted that, during the 7 a.m.-3 p.m. shift on Mar. 9, 2008, that he, Dustin Norris and three other RCI officers assaulted K.D. in order to punish him for striking an officer during a prior shift. Hinckle also admitted that this assault in 2008 was consistent with prior incidents at RCI, where officers from three consecutive shifts would beat an inmate who had previously assaulted an officer. Finally, Hinckle admitted that he and other officers tried to cover up their involvement in, or knowledge of, the assault of K.D.
Martin admitted that, during the 7 a.m.-3 p.m. shift on Mar. 9, 2008, he watched RCI officers assault K.D. Instead of stopping the assault, however, Martin walked out of K.D.’s cell and waited. After some time, Martin heard a supervisor say, “He’s had enough.” The officers then filed out of K.D.’s cell. Later, when investigators began to ask to about K.D.’s injuries, Martin met with officers who had been involved in the beating and agreed to falsely deny any knowledge of an assault of K.D.
Stigile, a former lieutenant, admitted that he used a magnetic device to alter and destroy surveillance videotapes related to RCI officers’ assaults of inmates, including the beating of K.D. Stigile also admitted that, when questioned about K.D. in 2012, he provided false and misleading statements to federal investigators and to a federal grand jury.
“Mr. Hinckle and Mr. Martin have admitted their involvement in an unlawful assault of an inmate, and Mr. Stigile has acknowledged that, as a supervisor, he destroyed evidence related to that assault,” 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.”
Stigile faces a statutory maximum penalty of 20 years in prison. Hinckle and Martin each could receive a statutory maximum sentence of 10 years of incarceration. All will be sentenced before U.S. District Judge James K. Bredar, and their sentencing dates are as follows: Stigile will be sentenced Jun. 17, 2014, Hinckle will be sentenced Apr. 7, 2014 and Martin will be sentenced May 15, 2014.
In related cases before Judge Bredar, former RCI Correctional Officers Ryan Lohr, Dustin Norris, Philip Mayo, Jeremy McCusker, Walter Steele, Lanny Harris, Keith Morris and former RCI Lieutenant Robert Harvey each has entered a guilty plea. Four current or former RCI officers still face federal charges in connection with the alleged assault of K.D. Two former RCI officers previously entered guilty pleas in state court.
The investigation by the Frederick Resident Agency of the Federal Bureau of Investigation is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the assistance of Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
Two Former Officers Plead Guilty in Connection with Fraudulent U.S. Army Contracts SchemeRead the Press Release
Investigation focused on Government contracts for radiology equipment and personnel worth millions
In San Antonio this morning, New Braunfels, TX, resident Lawrence Peter Fenti and Manhattan, KS, resident Heidi Lynn Webster pleaded guilty to defrauding the United States in connection with U.S. Army contracts worth millions of dollars for medical equipment and personnel announced United States Attorney Robert Pitman. Fenti is a 43-year-old former non-commissioned officer in charge of Base Realignment and Closure issues for Brooks Army Medical Center (BAMC) radiology. Webster is a 50-year-old former U.S. Army officer physician and civilian contractor who specialized in radiology.
Appearing before Chief U.S. District Judge Fred Biery, Fenti and Webster pleaded guilty to one count of conspiracy and one count of bribery. The conspiracy included intent to: defraud the United States; violate the Government conflict of interest law; commit bribery; commit wire fraud; make false claims against the United States; make false statements to federal authorities; and, commit money laundering.
By pleading guilty, the defendants admitted to conspiring together since 2007 to fraudulently secure multiple Army contracts and sub-contracts for radiology equipment and services by using Fenti’s position of influence, taking advantage of a prime contractor’s non-competitive bidding status, making false statements and fraudulent claims, as well as bribing Army personnel and Army contractors. Those contracts included a $2 million BAMC magnetic resonance imaging (MRI) contract in June 2008, a $4.9 million BAMC MRI contract in July 2008, a $633,406.69 BAMC staffing contract in September 2008, and a $336,600 MRI contract in September 2009 for Womack Army Medical Center at Fort Bragg, NC. Webster also admitted to paying Fenti thousands of dollars for his role in the overall scheme.
“The defendants in this case treated the American taxpayers like their own personal ATMs, rigging bids for government contracts and inflating invoices for radiology equipment and services. This prosecution should send a message to would-be thieves that we are keeping a close watch on government contracting and when we detect fraud we will respond with the full force of the criminal law,” stated U.S. Attorney Pitman.
Per their plea agreements, Fenti and Webster face a maximum six years in federal prison. During the investigation, authorities have seized approximately $500,000, much of which has been forfeited to the Government. In addition, the Government is seeking a monetary judgment against Fenti in the amount of $402,485.35, as well as a $613,828 monetary judgment against Webster, representing the amount of proceeds obtained directly or indirectly as a result of their fraudulent scheme. Sentencing will occur after the completion of a pre-sentence report by the U.S. Probation Office.
A third defendant in this case, 43-year-old John Walter Hoffman, owner/operator of Hoffman Surgical Devices, Inc. in San Antonio, is awaiting trial on charges of conspiracy to commit wire fraud, money laundering, wire fraud and making false statements to U.S. Army authorities. Jury selection is scheduled for March 3, 2014.
This investigation was conducted by the U.S. Army Criminal Investigations Division (Army CID), the Internal Revenue Service--Criminal Investigation (IRS-CI), Defense Criminal Investigative Service (DCIS) and the Federal Bureau of Investigation (FBI). Assistant United States Attorney James Blankinship is prosecuting this case on behalf of the Government.
Two Citizens of Malaysia Sentenced in U.S. District CourtRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that Defendant Rosalina M.T. Gabutin, age 45, was sentenced on January 6, 2014, in the District Court of Guam to serve 48 months in federal prison followed by five years of supervised release for her conviction on multiple counts of bank fraud and aggravated identity theft. Gabutin was also ordered to pay $49,017.17 to the victims of her criminal conduct.
This case was investigated by the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Marivic David.
Gabutin worked as an administrative assistant between 2009 and 2010 with Golden Formosa Jewelry International Guam which rents commercial property. She stole rental payments from her employer’s commercial tenants, forged checks, and negotiated them with financial institutions. She also forged her employer’s signature on some of the checks.
Gabutin was also ordered to serve an additional 10 months in prison for a 2010 bank fraud case on account that she committed the above-referenced new bank fraud and aggravated identity theft crimes while she was on supervised release with the U.S. Probation Office for the prior case.
U.S. Attorney Alicia A.G. Limtiaco stated, “Identity theft and related white collar and financial fraud crimes victimize individuals, financial institutions and merchants. The U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands and the Department of Justice are committed to combating identity theft and other white collar and financial fraud crimes. We will continue to dedicate federal resources effectively to prevent, investigate and prosecute the unlawful use of identifying information. Federal and local law enforcement are committed to protecting our community and consumers against theft, fraud and other related criminal activity.”Triadelphia Resident Sentenced to 27 Months on Federal Firearms ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - A 44-year old Triadelphia, West Virginia, man who was convicted in September of 2013 after a two-day federal jury trial was sentenced by Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, stated that BRIAN BEHRENS was sentenced to 27 months in prison and three years of supervised release, after having been convicted of the felony offense of “Prohibited Person in Possession of a Firearm.” Evidence at trial showed that BEHRENS, who was prohibited from possessing a firearm due to a prior felony conviction in federal court in West Virginia for “Possession of a Firearm and Ammunition after Conviction for Domestic Violence” possessed a loaded Remington Model 700 7MM Caliber Magnum Hunting Rifle in a vehicle on McCutcheon Road in Ohio County while hunting for deer in November of 2012. BEHRENS was approached by a West Virginia Department of Natural Resources officer and initially provided a false name before acknowledging his true identity.
BEHRENS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia DNR Law Enforcement Section.
Treasurer of Charitable Organization Pleads Guilty to Making False StatementsRead the Press Release
ALEXANDRIA, Va. – Sheikh Javed Rehmat, a pharmacist in Little Neck, NY, pleaded guilty today to one count of making false statements relating to a government investigation into violations of the International Emergency Economic Powers Act, the Foreign Agents Registration Act, and a conspiracy to defraud the United States.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; John P. Carlin, Acting Assistant Attorney General for National Security; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Field Office in Washington, D.C. (IRS-CI), made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Rehmat faces a maximum penalty of five years in prison when he is sentenced on July 18, 2014.
In a statement of facts filed with the plea agreement, Rehmat, a treasurer and member of the Board of Directors of the Society for International Help (“SIH”), a 501(c)(3) tax-exempt charity based in New York, admitted to making false statements surrounding financial transactions concerning SIH, as well as another charity – the Kashmiri American Council (“KAC”). Syed Ghulam Nabi Fai, the director of the KAC, was sentenced to serve two years in prison on March 30, 2012, for his role in a conspiracy to conceal that the KAC was funded between 1990 and 2011 with at least $3,500,000 from the government of Pakistan, including the Inter-Services Intelligence Agency (Pakistan’s military intelligence service).
Rehmat also admitted to making false statements surrounding the purchase of over $8,000,000 of shares of stock from Yasin Kadi and/or Muwaffaq Limited – over $3,330,000 of which had been purchased with money that Rehmat had wired from SIH’s accounts to those of another charitable organization in Pakistan. Yasin Kadi has been designated as a Specially Designated Global Terrorist by the U.S. Department of Treasury, Office of Foreign Assets Control, since 2001. Yasin Kadi held these shares through Muwaffaq Limited, which was registered in the Isle of Man.
This investigation is being conducted by the FBI’s Washington Field Office and the IRS Criminal Investigation’s Washington Field Office.
The prosecution is being handled by Assistant U.S. Attorney Gordon Kromberg, Trial Attorney John Gibbs of the Counterterrorism Section of the Justice Department’s National Security Division, and Special Assistant U.S. Attorney Allison Ickovic from the Justice Department’s Tax Division.
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.Torrington Resident Admits Role in Real Estate Fraud Schemes, Obstructing JusticeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THOMAS PROVENZANO, 47, of Torrington, waived his right to indictment and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to multiple conspiracy offenses stemming from his involvement in a series of fraudulent real estate transactions.
According to court documents and statements made in court, in November 2005, PROVENZANO obtained a $923,200 loan to purchase a lakefront home located at 27 Palmer Road in Morris for more than $1.1 million, despite lacking the income and savings to pay off the mortgage. The property was owned by an entity controlled by a co-conspirator and, on the mortgage loan application, PROVENZANO falsely listed his employment with a company owned by his co-conspirator. In fact, PROVENZANO never worked at the company. The application also falsely listed PROVENZANO’s income as $20,000 per month when, in fact, his annual income was less than $50,000. The company subsequently provided verification for the false employment and income information on the loan application.
In November 2006, PROVENZANO refinanced the loan, obtaining a $936,000 mortgage from a federally insured bank. The new loan application, like the prior application, falsely listed PROVENZANO as employed by the same company as in the original loan application, and falsely listed his monthly income as $28,000, equal to $336,000 annually. The company again provided verification for the false information on the loan application.
The loan is now in default, and the Palmer Road property is now in foreclosure.
In May and June 2010, PROVENZANO and the same co-conspirator learned that the FBI and IRS were investigating the real estate and mortgage transactions involving the Palmer Road property. Among other things, the federal agents were examining a discrepancy in the closing documents, which showed that PROVENZANO had been obligated to make a down payment of approximately $249,000, but had never paid it. PROVENZANO and his co-conspirator met and created a false promissory note in the amount of approximately $249,000, and backdated the note to November 2005, to serve as an explanation of why the $249,000 down payment had never been paid at the closing. In June 2010, PROVENZANO agreed to be interviewed by the FBI and IRS. During the interview he falsely claimed that he had not needed to make the down payment in November 2005 because he had signed a promissory note to the seller for the same amount. Later that same month, PROVENZANO met with the FBI and IRS agents and provided them with a copy of the false, backdated promissory note.
As part of a separate conspiracy, in December 2009 and January 2010, PROVENZANO, the same co-conspirator and others engaged in a series of discussions about how to defraud a title insurance company. According to the discussions, the scheme involves a real property sale based on a deliberately defective title search, where one or more liens on the property are deliberately omitted from the title search report. After the property is sold and title insurance is issued, the conspirators arrange an event that triggers a new title search, such as a resale of the property. The “overlooked” liens turn up, providing the conspirators with a legal claim against, and a large payout from, the title insurer.
The conspirators attempted the scheme on a property held in the name of an entity controlled by PROVENZANO’s co-conspirator located at 66 Donahue Road Extension in Litchfield. PROVENZANO assisted in a title search of the property in January 2010, but then ceased to participate in the scheme. The property was later sold in March 2010 to his co-conspirator’s brother, and title insurance was issued based upon a defective title search. Three liens against the property, totaling approximately $990,000, had been deliberately omitted from the title search report.
PROVENZANO pleaded guilty to one count ofconspiracy to commit bank fraud, one count of conspiracy to obstruct justice and one count of conspiracy to commit mail and wire fraud. Judge Arterton scheduled sentencing for April 14, 2014, at which time PROVENZANO faces a maximum term of imprisonment of 55 years.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel.
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[email protected]Three Permian Basin Business Owners and Title Company Executive Indicted in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
Federal authorities have arrested three Permian Basin business owners and a title company executive charged in connection with a mortgage fraud scheme that involved approximately 800 real estate properties and about $45 million in loans announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
A two-count indictment, returned yesterday and unsealed this afternoon, charges 58–year-old Stephen Mark Hilliard, owner of Comeback Properties, LLC, Hilliard Properties, LLC, SMH Properties, LTD, and Katpast Enterprises, LP; 42-year-old Michael Duraine Cowan, II, owner of TLC Properties, LLC, and MCBW Properties, LTD; 61-year-old Odessa real estate agent Cynthia Gayle Hirsch; and, 55-year-old Berta Laura McFaddin, Division Vice President of Administration for Stewart Title Company in Midland, with one count of conspiracy to commit bank fraud. Hilliard and Cowan are also charged with one count of conspiracy to commit money laundering.The indictment alleges that from March 2003 until August 2011, the defendants were allegedly involved in a fraudulent “same-day property flip” scheme. According to the indictment, defendants Hilliard and/or Cowan would purchase a specific property utilizing one of their respective investment companies, then re-sell the same property on the same day at an “inflated” sales price to another Hilliard and/or Cowan investment company. Hilliard and/or Cowan obtained mortgage loans by submitting to the bank fraudulent and misleading documentation created by the defendants and without disclosing to the bank the initial sale of the property.
Upon conviction, each defendant faces up to 30 years in federal prison for bank fraud conspiracy. Hilliard and Cowan also face up to 20 years in federal prison upon conviction of money laundering conspiracy. The indictment also seeks a $27 million monetary judgment against the defendants representing the alleged proceeds derived from their fraudulent scheme.
Yesterday’s arrests and indictment resulted from an investigation conducted by the Federal Bureau of Investigation together with the Texas Department of Insurance. “This investigation demonstrates our commitment to the community of Midland that this type of crime will not be tolerated and will be aggressively investigated,” stated FBI SAC Douglas E. Lindquist.
Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
The United States Attorney's Office for the Eastern District of Washington Collects over $3,463,400.00 in Civil and Criminal Actions for U.S. Tax Payers in Fiscal Year 2013Read the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that his office collected $3,463,490.16 in civil and criminal actions in the Fiscal Year ending September 30, 2013. Of this amount, his office collected $2,552,474.86 in civil actions and $911,015.30 in criminal cases. Mr. Ormsby also announced that during this same period his office worked with components of the Department of Justice and other United States Attorney's Offices to collect an additional $201,901,500.00 in civil actions pursued jointly.
In addition, United States Attorney General Eric Holder announced today that the United States Department of Justice collected approximately $8.1 billion in civil and criminal actions during the same Fiscal Year 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 Attorney's Offices and the Department of Justice's main litigating divisions in that same period.
The U.S. Attorneys' Offices, along with the Department of Justice's litigating divisions, 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'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 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."
Michael C. Ormsby said, "Attorneys and staff in my office are fully committed to collecting funds owed to victims of crime and to agencies of the federal government through on-going efforts to collect restitution from criminals, debts owed to agencies of the federal government for money borrowed or fines levied and money from government contractors and others who are found to have defrauded the government. The United States Attorney's Office for the Eastern District of Washington will continue to prioritize its collection efforts, particularly in these tight financial times." Mr. Ormsby went on to identify, by way of just one example of the successful collection efforts in the Eastern District of Washington, "the $18,500,000.00 that was collected during Fiscal Year 2013from CH2M Hill, a contractor at the Hanford Nuclear Reservation."
The $18,500,000.00 referred to by Mr. Ormsby relates to a matter the United States Attorney's Office for the Eastern District of Washington pursued jointly with the Department of Justice's Civil Frauds component (included above as part of the jointly pursued civil actions). This collection resulted from the settlement of an investigation of fraudulent time card practices. The investigation was conducted by the Office of Inspector General of the Department of Energy with early participation from the United States Attorney's Office, and supported by crucial assistance and support from the Federal Bureau of Investigation and the Civil Frauds component of the Department of Justice. This was the largest civil settlement for fraudulent activity by a contractor at the Hanford site ever achieved in Eastern Washington. The settlement also included provisions aimed to reduce the possibility of fraud in future practices by this contractor and all other contractors working at the Hanford site.
The Southern District of Iowa U.S. Attorneys Office Collects More Than $5.6 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
DES MOINES, IA - U.S. Attorney Nicholas A. Klinefeldt announced today that the Southern District of Iowa collected $5,607,017.30 in criminal and civil actions in Fiscal Year 2013. Of this amount, $4,094,883.39 was collected in criminal actions and $1,512,133.91was collected in civil actions.
Additionally, the Southern District of Iowa worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $4,108,435.35 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 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.
Additionally, the U.S. Attorney’s office in the Southern District of Iowa, working with partner agencies and divisions, collected $2,377,955 in administrative and judicial 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. $862,737 in forfeited assets was returned to victims during FY 2013, and $543,406 was equitably shared with state and local law enforcement agencies.
(Download Press Release )
Texas Woman, Ebony Williams White, Indicted on Wire Fraud and Obstruction ChargesRead the Press Release
EBONY WILLIAMS WHITE, age 33, a resident of Katy, Texas, was charged in a seven count wire fraud and one count of obstruction indictment for wire transferring $207,135 without authorization into her personal bank account from her employer’s bank accounts, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to the indictment, WHITE was employed by Jefferson Community Health Care Centers, Inc. in Marrero, Louisiana, from February 2008 until March 2010, eventually attaining the position of Chief Financial Officer (“CFO”). Once in the position of CFO, WHITE devised a scheme to fraudulently transfer funds from her employer’s bank accounts into a separate bank account she controlled. WHITE wire transferred the unauthorized funds to a different bank than the one she identified and used for the bi-weekly payroll checks to which she was entitled.
When WHITE learned that federal charges against her were contemplated for the fraudulent wire transfers, she attempted to obstruct the investigation by submitting to the government a document which, if authentic, would have potentially entitled her to receive $137,000 plus bonuses for work over and above what was required of her as CFO. Other individuals allegedly authorizing the additional funds in the document provided by WHITE denied that an agreement ever existed for WHITE to receive any funds in addition to her bi-weekly pay check as CFO.
If convicted, WHITE faces a maximum term of imprisonment of one hundred and sixty (160) years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
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.
The case was investigated by the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, The Louisiana Legislative Auditor’s Office and the United States Attorney’s Office. The case is being prosecuted by Special Assistant United States Attorney Juliana A. Etland.
(Download Indictment )
Tax Return Preparer Charged in 43-Count Tax Fraud IndictmentRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Fuada Delic (31, Jacksonville) with tax fraud. Delic, who owned a tax preparation business (“Delica’s Tax Service”), is charged with 2 counts of filing fraudulent tax returns, on her own behalf, and 41 counts of filing fraudulent tax returns on behalf of her business customers. If convicted, she faces a maximum penalty of 3 years’ imprisonment per count.
According to the indictment, on or about April 14, 2009 and September 28, 2010, Delic filed personal tax returns in which she underreported the income that she received from the tax preparation business. The indictment also alleges that Delic filed tax returns for customers in which she falsely claimed, among other things, that they had incurred educational expenses, tax credits, and charitable contributions for which they were entitled to tax deductions. The filed returns span the 2008, 2009, and 2010 tax years.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Statement of Spokesman James M. Margolin for United States Attorney's Office for the Southern District of New York Re: United States V. Devyani KhobragadeRead the Press Release
"This Office had been advised by the State Department that, pursuant to their request, Devyani Khobragade was to have left the United States this afternoon. In a letter sent to the Court upon the filing of the Indictment of Ms. Khobragade, we stated our understanding that she had left the country. Subsequent to the filing of the letter, Ms. Khobragade’s lawyer advised that she has not, in fact, departed the U.S."
St. Joseph Sex Offender Sentenced for Illegally Reentering U.S.Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man who is a citizen of Mexico and a registered sex offender, was sentenced in federal court today for illegally reentering the United States after being deported to Mexico.
Raul Guadalupe Ocon-Marin, 32, of St. Joseph, was sentenced by U.S. District Judge Fernando J. Gaitan to two years and six months in federal prison without parole.
On Sept. 20, 2013, Ocon-Marin pleaded guilty to illegally reentering the United States.
Ocon-Marin was born in Mexico and was admitted into the United States as a lawful permanent resident as the child of a U.S. citizen. According to court documents, Ocon-Marin was convicted in Iowa in 2004 of sexual abuse for having sexual intercourse with a 15-year-old girl. The girl became pregnant but miscarried the child. Ocon-Marin’s legal status was revoked and he was deported to Mexico on Feb. 16, 2005.
The Buchanan County, Mo., Sheriff’s Department was provided with information that Ocon-Marin was illegally residing in St. Joseph. On Jan. 13, 2013, deputies arrested Ocon-Marin for failing to register as a sex offender. Ocon-Marin was convicted on Feb. 14, 2013, in Buchanan County Circuit Court. He was released on parole on June 7, 2013, and taken into federal custody.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Southern District of Georgia’s U. S. Attorney’s Office Collects over $71 Million in Civil, Criminal and Asset Forfeiture Cases in Fiscal Year 2013Read the Press Release
SAVANNAH, GA - U. S. Attorney Edward Tarver announced today that the Southern District of Georgia collected over $71 million in civil, criminal and asset forfeiture actions in Fiscal Year (FY) 2013. The Office collected $31,621,385.97 in criminal and civil actions in FY 2013. Of this amount, $29,153,117.82 was collected in criminal actions and $2,468,268.15 was collected in civil actions. Additionally, the Office, working with partner federal agencies, collected $40,435,520.24 in asset forfeiture actions in FY 2013.
U. S. Attorney Tarver stated, “The amount of money collected in criminal, civil and asset forfeiture actions by the men and women of the United States Attorney’s Office in FY 2013 is by far the largest collection year in the Office’s history. The amounts collected dwarf the Office’s yearly budget. In other words, this Office earns its keep and then some.”
Additionally, 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.”
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 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’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.
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.
Southern District of Florida U.S. Attorney’s Office Collects More Than $94 Million in Civil and Criminal Actions in Fiscal Year 2013Read the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announced today that the Southern District of Florida collected $70,006,305.57 in criminal and civil actions in Fiscal Year (FY) 2013. Of this amount, $33,136,076.16 was collected in criminal actions and $36,870,229.41 was collected in civil actions. The office also collected $24,327,589 in criminal and civil forfeitures. Total, during FY 2013, our office collected $94,333,894.57 related to criminal and civil actions and forfeitures – more than double the appropriated budget of our office.
Additionally, the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $272,476,057.95 in cases pursued jointly with these offices. Of this amount, $5,523.71 was collected in criminal actions and $272,470,534.24 was collected in civil actions.
U.S. Attorney Wifredo A. Ferrer stated, “I am proud of the men and women of our office who work hard to secure restitution for crime victims and recover monies for the U.S. taxpayers. They work hard not only to protect the people of this great country of ours, but to ensure that criminals do not profit from their crime. Today’s numbers reflect that the U.S. Attorney's Office collects substantially more money than it spends and provides the taxpayers with an excellent return on their 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.
Additionally, the U.S. Attorney’s office in Southern District of Florida, working with partner agencies and divisions, collected $24,327,589 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.
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.
Southern California Doctor Sentenced to over 3 Years in Prison for Medicare Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Dr. Emilio Louis Cruz III, 61, of Carson, Calif., was sentenced today by United States District Judge Morrison C. England Jr. to three years and two months in prison and ordered to pay $601,581 in restitution for his role in a conspiracy to commit Medicare fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Cruz earned an undergraduate degree from Johns Hopkins University and his medical degree from Yale University. He held medical licenses in three states and was board certified in neurology. According to his plea agreement and the testimony heard at the trial of Cruz’s co-defendants, doctors Ramanathan Prakash, Alexander Popov, and Lana LeChabrier, and a man named Vardges Egiazarian owned and controlled three health care clinics in Sacramento, Richmond, and Carmichael from February 2006 through August 2008. Over this time period, Cruz ran the practice at the Carmichael clinic on 3609 Mission Avenue. He established a Medicare provider number for the clinic and established a bank account into which Medicare funds were deposited. Hundreds of claims were submitted to Medicare seeking reimbursement for services allegedly performed at the Carmichael clinic under Cruz’s care. Cruz, however, never treated a single patient. Indeed, during the majority of the time that the Carmichael clinic operated, he was living and practicing in North Dakota. A similar pattern was followed at the other two clinics operated by Egiazarian, and not one of the physicians submitting bills to Medicare ever treated a single patient.
According to evidence at trial, the clinic’s patients were primarily elderly and non-English speaking. They were recruited and transported to the clinics by individuals who were paid according to the number of patients they brought to the facilities. Rather than being charged a co-payment, the patients were paid for their time and the use of their Medicare eligibility, generally $100 per visit. False charts were created stating that each patient received comprehensive exams and a broad array of diagnostic tests. Few of these tests were ever performed, none were performed based on any medical need, and clinic employees filled out other portions of the charts using preprinted templates. Some clinic employees admitted to performing various tests on themselves, and placing the results in patient files.
In all, the three clinics submitted more than $5 million worth of fraudulent claims to Medicare, $1.7 million of which was actually paid. With respect to claims submitted for services purportedly provided by Cruz at the Carmichael clinic, Medicare paid $601,581.
The only defendants to go to trial, doctors Prakash, Popov, and LeChabrier, were found guilty by a jury on July 8, 2011, of conspiracy to commit healthcare fraud and various counts of healthcare fraud.
This case is the product of an investigation by the Office of the Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation. Assistant United States Attorneys Philip Ferrari and Jean M. Hobler are prosecuting the case.
Others who were charged in this matter include:
- Ramanathan Prakash, a doctor involved with the Sacramento clinic, is currently serving 10 years in prison.
- Lana LeChabrier, a doctor involved with the Richmond clinic is currently serving six and a half years in prison.
- Vardges Egiazarian pleaded guilty early in the case and has served his six and a half years sentence.
- Alexander Popov, a doctor involved with the Sacramento clinic, is currently serving eight years and one month in prison.
- Nazaret Salmanyan, an unlicensed ultrasound technician who worked at all three clinics, pleaded guilty and on November 14, 2013, was sentenced to 20 months in prison.
- Derrick Johnson, a doctor involved with the Richmond clinic, pleaded guilty and is awaiting sentencing.
- Zoya Belov, a nurse licensed in Russia but not the United States who worked at all three clinics, pleaded guilty and is awaiting sentencing.
- Liw Jiaw Saechao, aka Jenny Saechao, recruited patients, pleaded guilty, and is awaiting sentencing.
- Migran Petrosyan, a co-owner of the Richmond clinic, pleaded guilty, and on December 5, 2013, was sentenced to 27 months in prison.
- Shushanik Martirosyan, a medical biller who submitted claims to Medicare for all three clinics, pleaded guilty and on October 24, 2013, was sentenced to 18 months in prison.
South Dakota U.S. Attorney's Office Helped Collect over $24 Million for Taxpayers in Fiscal Year 2013Read the Press Release
United States Attorney Brendan V. Johnson announced today that the U.S. Attorney’s Office in South Dakota collected over $2.8 million in Fiscal Year (FY) 2013 from civil and criminal actions. Of this amount, over $2.1 million was collected in criminal actions and over $673,000 was collected in civil actions.
Additionally, the District of South Dakota worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $21.7 million in civil actions that were pursued jointly.
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.”
“In these times of fiscal uncertainty, the revenue generated from these collections becomes increasingly more important,” said U.S. Attorney Johnson. “U.S. Attorneys’ Offices not only protect the public, but also collect more money on behalf of the American taxpayer than they spend.”
The most significant joint recovery case was Cyprus Mines Corporation, which resulted in over $18 million being collected for the U. S. Department of Treasury. The Homestake Mining case was the second largest recovery for the District of South Dakota, with an amount in excess of $3.7 million.
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.
Shreveport Man Sentenced to 10 Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced thatAnthony Larance Williams, 36, of Many, La., was sentenced Wednesday by U.S. District Judge Maurice S. Hicks Jr. to 42 months in federal prison and three years of supervised release for possession with intent to distribute methamphetamine. Williams pleaded guilty on July 24, 2013.
According to evidence presented at the guilty plea, members of the U.S. Marshal’s Service Task Force arrested Williams and three others at a casino hotel in Shreveport on June 20, 2012. During the arrest, agents discovered methamphetamine, drug paraphernalia, two handguns, ammunition, and body armor in the hotel room.
The Louisiana State Police, U.S. Marshal’s Service Task Force, U.S. Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Sentencing for January 03 - 06, 2014Read the Press Release
Jose Alonso Bedolla-Vasquez, 22, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 6, 2014, for illegal re-entry of a previously deported alien into the United States. Bedolla-Vasquez was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Mariano Flores-Sosa, 27, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 6, 2014, for illegal re-entry of a previously deported alien into the United States. Flores-Sosa was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jose Enrique De Lara, 33, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 6, 2014, for illegal re-entry of a previously deported alien into the United States. De Lara was arrested in Casper, Wyoming. He received 12 months plus one day imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Justin J. Sadler, 27, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 6, 2014, for being a felon in possession of a firearm. Sadler was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by three years supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jonathon D. Wright, 32, of Laramie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 3, 2014, for conspiracy to possess with intent to distribute 112 grams of methamphetamine. Wright was arrested in Laramie, Wyoming. He received 70 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Albany County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Second Defendant Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Daniel C. Alexander, Chief, Boca Raton Police Department, announce that defendant Brandon James, of Miami, pled guilty today for his participation in a stolen identity tax refund scheme. Sentencing is scheduled for March 26, 2014 at 9:00 a.m. before Senior U.S. District Judge Daniel T.K. Hurley.
Specifically, James pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; one count of theft of government funds, in violation of Title 18, United States Code, Section 641; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. At sentencing, the defendant faces a maximum of five years in prison for the conspiracy charge, a maximum of ten years in prison for the theft of government funds charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
According to court documents, James and co-defendant Laron Lanece Larkin were involved in a scheme to unjustly enrich themselves by obtaining income tax refunds to which they were not entitled. The defendants and their co-conspirators submitted false income tax returns in the names of individuals without their knowledge or consent. To receive the fraudulent refunds, James and a co-conspirator purchased debit cards at a convenience store with stolen identity information, such as names, dates of birth and Social Security account numbers belonging to real persons. Based upon the false income tax returns submitted, the lRS sent the income tax refunds electronically to the pre-purchased debit cards. The defendant admitted that he cashed-out the monies electronically transferred to the debit cards by making point of sale purchases and cash withdrawals from automatic teller machines at various locations within Broward and Palm Beach counties. The actual loss sustained by the U.S. Treasury in connection with this scheme is in excess of $43,000.
Laron Lanece Larkin, of Miami, was sentenced on October 7, 2013 to 36 months and one day in prison, to be followed by three years of supervised release. Larkin pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI, and the Boca Raton Police Department. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
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.
Second Conspirator Pleads Guilty in $2 Million Credit Card Fraud SchemeRead the Press Release
Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces that Sirrico Lewis (42, Orlando) today pleaded guilty to access device fraud. He faces a maximum penalty of 15 years in federal prison and a 3-year term of supervised release, following his incarceration. A sentencing date has not yet been set.
According to court documents, Lewis and others engaged in a scheme to defraud several Central Florida area Sam’s Clubs and Wal-Mart stores through the fraudulent acquisition and use of duplicate Sam’s Club credit cards. To facilitate the scheme, a conspirator would manufacture counterfeit identification documents of existing Sam’s Club customers. Lewis and others obtained those counterfeit documents, took them to various Sam’s Clubs, and used them to obtain duplicate credit cards on existing accounts.
They then used those credit cards to make fraudulent purchases at area Sam’s Club and Wal-Mart stores, or turned the cards over to another conspirator who either made fraudulent purchases or got another person to do so. The fraudulently purchased items would then be sold, with the proceeds from those sales being divided amongst the conspirators. The total amount of actual loss suffered by the victims of this scheme is over $2 million. Of that amount, Lewis was involved in over $750,000 worth of fraudulent transactions.
Lewis is the second individual to plead guilty in this case. On October 30, 2012, Reginald Holley (36, Winter Garden) pleaded guilty to access device fraud. On January 14, 2013, he was sentenced to 46 months in federal prison. A third co-conspirator, Brenda Shoukry, (63, of Orlando) has been charged with the same offense, by criminal complaint. A criminal complaint is merely a charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the United States Secret Service. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
Santa Clara Pueblo Man Sentenced to Forty-Two Months in Prison for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – James Allen Moquino, 32, a member of Santa Clara Pueblo, N.M., was sentenced this afternoon to 42 months in federal prison followed by three years of supervised release for his assault conviction, announced Acting U.S. Attorney Steven C. Yarbrough and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Moquino was arrested on July 5, 2013 based on an indictment charging him with assaulting a woman and causing her serious bodily injury. According to the indictment, Moquino committed the crime on Nov. 21, 2010, in Indian Country within Rio Arriba County.
On Sept. 30, 2013, Moquino entered a guilty plea to the indictment and admitted that he assaulted his intimate partner and the mother of his child by repeatedly striking her in the head and face causing her to suffer serious bodily injury. Moquino further admitted that the assault occurred within Santa Clara Pueblo.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Special Assistant U.S. Attorney David M. Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Santa Barbara Doctor Known as ‘Candy Man’ Pleads Guilty to Illegally Writing Prescriptions for Huge Quantities of Dangerous NarcoticsRead the Press Release
SANTA ANA, California – A Santa Barbara physician was remanded into custody this morning after he pleaded guilty to 11 federal drug trafficking charges for writing prescriptions for powerful painkillers for “patients” who were drug addicts.
Julio Gabriel Diaz, 65, who operated the Family Medical Clinic in Santa Barbara prior to his arrest two years ago, pleaded guilty to 10 counts of distributing controlled substances without a legitimate medical purpose and one count of distributing controlled substances to a minor (which, under federal law, is a person under 21).
Diaz pleaded guilty before United States District Judge Cormac J. Carney, who is scheduled to sentence the defendant on June 2. Diaz, who will be held in jail until his sentencing, faces a maximum statutory sentence of 200 years in federal prison and fines of up to $10 million.
“Dr. Diaz was, quite simply, acting as a common drug dealer,” said United States Attorney André Birotte Jr. “The diversion of powerful painkillers from legitimate medical uses to the hands of drug abusers is a dangerous practice that fuels addiction and causes overdoses. Far too many of the illegal prescription drugs that find their way to street users come from doctors who, like Julio Diaz, choose to betray their Hippocratic oath.”
In a plea agreement filed last year in United States District Court, Diaz admitted distributing narcotics such as oxycodone, methadone, hydrocodone, alprazolam, fentanyl and hydromorphone in 2009 and 2010. Diaz admitted that he distributed or dispensed the narcotics “while acting and intending to act outside the usual course of professional practice and without a legitimate medical purpose.”
Court documents previously filed in this case, as well as civil lawsuits, link Diaz to fatal drug overdoses. However, he was not specifically charged with causing any deaths, nor did he specifically admit causing any deaths during today’s hearing.
The investigation into Diaz was conducted by the Drug Enforcement Administration and the Santa Barbara Police Department, which received the assistance of the California Medical Board.
Release No. 14-001
Sacramento Men Plead Guilty to Attempted Enticement of A MinorRead the Press Release
SACRAMENTO, Calif. — Nicholas Perry, 36, of Sacramento, and Eric Johnston, 23, of Folsom, pleaded guilty today to attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 29, 2012, an undercover detective with the Sacramento Internet Crimes Against Children (ICAC) task force responded to a Craigslist advertisement posted by Brandon Marks in which Marks sought to acquire children’s underwear. After a week of online and cellphone communications, Marks agreed to meet the undercover detective in order to have sex with the detective’s fictional 13-year-old child.
Following his arrest, Marks allowed law enforcement to assume his online identity. One of the people with whom Marks was communicating with was Perry. Prior to meeting with law enforcement, Marks had told Perry through email that he was “meeting a dad and his daughter and taking pics ;).” After assuming Marks’s identity, law enforcement (posing as Marks) offered to introduce Perry to the daughter. Perry communicated with Johnston about the meeting and offered to introduce Johnston to the fictional father.
After being introduced, each defendant communicated directly via email with law enforcement about the fictional 13-year-old. Perry and Johnston agreed to meet Marks, the father, and his daughter in order to have sex with the daughter.
Following his arrival at the meeting location, Johnston was arrested. After his arrest, Johnston received a text message from Perry asking if he was there. Law enforcement responded to Perry (posing as Johnston), and told Perry that he had arrived and that he was waiting with the father and daughter. Perry arrived approximately 45 minutes later and was arrested. Both defendants have been in federal custody since their arrest.
Marks pleaded guilty to attempted enticement of a minor and was sentenced to 12 years in prison in May 2013.
Perry and Johnston are scheduled to be sentenced on April 3, 2014. They each face a statutory penalty of no less than 10 years and up to life in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Kyle Reardon is prosecuting the case.
This case s brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.Rosalina Marie Tudela Gabutin Sentenced in U.S. District CourtRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that Defendant Rosalina M.T. Gabutin, age 45, was sentenced on January 6, 2014, in the District Court of Guam to serve 48 months in federal prison followed by five years of supervised release for her conviction on multiple counts of bank fraud and aggravated identity theft. Gabutin was also ordered to pay $49,017.17 to the victims of her criminal conduct.
This case was investigated by the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Marivic David.
Gabutin worked as an administrative assistant between 2009 and 2010 with Golden Formosa Jewelry International Guam which rents commercial property. She stole rental payments from her employer’s commercial tenants, forged checks, and negotiated them with financial institutions. She also forged her employer’s signature on some of the checks.
Gabutin was also ordered to serve an additional 10 months in prison for a 2010 bank fraud case on account that she committed the above-referenced new bank fraud and aggravated identity theft crimes while she was on supervised release with the U.S. Probation Office for the prior case.
U.S. Attorney Alicia A.G. Limtiaco stated, “Identity theft and related white collar and financial fraud crimes victimize individuals, financial institutions and merchants. The U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands and the Department of Justice are committed to combating identity theft and other white collar and financial fraud crimes. We will continue to dedicate federal resources effectively to prevent, investigate and prosecute the unlawful use of identifying information. Federal and local law enforcement are committed to protecting our community and consumers against theft, fraud and other related criminal activity.”Rochester Gang Member Sentenced on Gun and Drug ChargesRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Anthony Kellum, a/k/a Nitti, 26, of Rochester, N.Y., who was convicted of conspiracy to possess with intent to distribute and distribution of 28 grams or more of cocaine base, and possession of firearms in furtherance of a federal drug trafficking crime, was sentenced to 147 months in prison by U.S. District Judge Frank P. Geraci, Jr. Kellum was also ordered to forfeit two firearms and rounds of ammunition seized during the investigation.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Kellum and other members of a Rochester gang known as “Coke City” were involved in obtaining large quantities of powder cocaine. The defendant and other gang members then processed the powder into crack cocaine and then sold it from various locations on the West Side of Rochester. Kellum and other Coke City members routinely possessed firearms for protection in connection with their crack cocaine distribution.
The defendant was arrested June 13, 2013 after officers executed a search warrant at his residence, an apartment at 35 Stratford Park in Rochester. The search netted 21 bags of crack cocaine, 231 grams of powder cocaine, a loaded .40 caliber rifle, a stolen and loaded .45 caliber pistol, scales, baggies, and other paraphernalia for processing and distributing crack cocaine.
Kellum was one of five defendants arrested in this case. All five have been convicted.
The sentencing is the culmination of an investigation on the part of investigators with the Rochester Police Department, under the direction of Acting Chief Michael Ciminelli, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Scott Heagney, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.Pine Ridge Woman Sentenced for Conspiracy to Distribute CocaineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on January 6, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Tricia Lee Pond, a/k/a Trish Pond, age 42, was sentenced to 60 months in custody, 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Pond was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on April 16, 2013. She pled guilty on September 6, 2013.
Between 2009 and April 2013, Pond would travel from South Dakota to Denver, Colorado, to obtain marijuana and cocaine for further distribution. Pond would deliver ounce quantities of cocaine to others, and it is reasonable that she distributed more than 500 grams of cocaine on and around the Pine Ridge Indian Reservation.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Ted L. McBride and Special Assistant U.S. Attorney Laura A. Shattuck prosecuted the case.
Pond was immediately turned over to the custody of the U.S. Marshals Service.
Pierre Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, man charged with Assaulting, Resisting, or Impeding a Federal Officer pled guilty and was sentenced on January 8, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Glen Trudell, Jr., age 31, was sentenced to 12 months of custody, 12 months of supervised release, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on August 18, 2013, when two Deputy U.S. Marshals were returning to Pierre from working on a federal fugitive operation. Around 5:00 a.m. that day, the Pierre Police Department received a call from a woman reporting that Trudell was at her residence causing damage. Due to the nature of the call, the deputy marshals went to monitor the location while the Pierre Police Department made contact with the woman. The deputies observed Trudell digging through a duffel bag outside the apartment. Trudell saw the deputies, yelled at them to get out of their vehicle, and began to approach them. The deputies identified themselves to Trudell as police and told him to stop. The deputies were wearing law enforcement clothing, duty gear belts, and badges. When the deputies exited the vehicle, Trudell was within several feet of them. Trudell had his hands in his pockets and was ordered to remove them. He did not initially comply, but when he did, one of the deputies observed brass knuckles on his right hand in a closed fist. The deputy yelled “brass knuckles,” reached for his pepper spray, and deployed it in Trudell’s eyes for one second from about six feet away.
The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Kathryn Rich and First Assistant U.S. Attorney Randolph Seiler.
Trudell was remanded to the custody of the U.S. Marshals Service.
Philadelphia Man Charged with Theft of Social Security BenefitsRead the Press Release
An indictment was unsealed today charging Bernard Lopez, 57, of Philadelphia, with theft of government funds for allegedly taking, for his own benefit, the Social Security Administration benefits check issued to another person, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a statutory maximum sentence of 10 years in prison, a fine of up to $250,000, a $100 special assessment, and up to three years of supervised release.
The case was investigated by the Social Security Administration Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Richard Barrett.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pharmacist Charged with Paying More Than $50,000 in Kickbacks to Doctor for Prescription ReferralsRead the Press Release
NEWARK, N.J. – A pharmacist with a compounding pharmacy in Lakewood, N.J., was arrested today and charged with paying more than $50,000 to a Toms River, N.J., physician to induce the doctor to make prescription referrals to the pharmacy, U.S. Attorney Paul J. Fishman announced.
Vladimir Kleyman, 42, of Lakewood, N.J., the president and pharmacist in charge of Prescriptions R US – a compounding pharmacy in Lakewood – was charged with violating the Anti-Kickback Statute by using a middle-man to provide repeated cash payments – totaling at least tens of thousands of dollars – to a N.J. physician over the course of several months. Kleyman appeared before U.S. Magistrate Judge James Clark III in Newark federal court this afternoon.
According to the Complaint unsealed today:
Beginning in February 2013, Kleyman provided one of his employees with at least $50,000 in cash or checks to provide bribes to the physician to refer prescriptions for a compounded pain cream to Prescriptions R US. Pharmacy compounding describes the preparation of medication, using different types and dosages of drugs, in order to provide more personalized medications for patients. The compounded pain cream prepared by Prescriptions R US in this case contains several components, including ketamine (a Schedule III non-narcotic), lidocaine, and diclofenac.
A computer-generated document prepared by Kleyman or someone working with him, and purporting to reflect the names of 63 patients for whom prescriptions for the pain cream had been sent by the bribed physician referenced in the complaint, included at least 33 Medicare beneficiaries for whom Prescriptions R US had received reimbursement from Medicare for prescriptions referrals from the bribed physician. In 2013, Prescriptions R US obtained more than $40,000 from Medicare alone in connection with filling prescriptions for the bribed physician referenced in the complaint – separate and apart from additional money Prescriptions R US obtained from other health care insurance providers.
In a series of meetings in November and December 2013, the unidentified employee received more than $50,000 in cash or checks from Kleyman or Kleyman’s spouse – who also works at Prescriptions R US – with the understanding that the bulk of that money would be used to bribe the physician to make prescription referrals to Prescriptions R US.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the ongoing investigation leading to today’s charges.The government is represented by Assistant U.S. Attorney Jane Yoon and Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $520 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
14-011Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Kleyman Complaint
Permian Basin Men Sentenced to Federal Prison in Multi-Million Bank Fraud SchemeRead the Press Release
In Midland this afternoon, 36-year-old Raymond Holguin, Jr., of Odessa and 37–year-old Gustavo Pizarro of Midland were sentenced to 41 months and 18 months, respectively, in federal prison for defrauding My Community Federal Credit Union of millions of dollars announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Holguin pay $3,934,627 restitution and be placed under supervised release for a period of five years after completing his prison term. Judge Junell ordered that Pizarro pay $3,914,680 restitution and be placed under supervised release for a period of five years after completing his prison term. Judge Junell also ordered both defendants to surrender to federal authorities on or before February 18, 2014, to begin serving their prison terms.
Last year, Holguin, Pizarro and 40-year-old Michael Franco of Midland all pleaded guilty to one count of conspiracy to commit bank fraud in connection with this investigation. According to court records, beginning in April 2007, the defendants engaged in an 18-month-long scheme that defrauded the FDIC-insured financial institution through the issuance of fraudulent car loans. Holguin, operator of Motor City, an auto dealership in Odessa, TX; Pizarro, General Sales Manager at Motor City; and, Franco, a loan officer at My Community Federal Credit Union, all devised a plan to approve car loans for customers who did not meet the credit union’s lending standards. Holguin and Pizarro presented auto loan applications to Franco that included false information such as inflated income. Holguin and Pizarro would also add amenities to the cars that did not exist in an effort to increase the value of the car and receive a larger loan amount. Franco never verified any of the information contained in the loan documents before processing the loans and, in return, was paid a kickback by Holguin for every car loan that was approved. The scheme resulted in Franco approving more than 300 fraudulent car loans on behalf of Holguin and Pizarro which led to a loss at My Community Federal Credit Union in excess of $4 million.
On November 25, 2013, Franco was sentenced to 18 months in federal prison followed by five years of supervised release and ordered to pay $4,122,532.19 restitution to the bank. All restitution amounts ordered by the Court in this case are to be paid joint and several by the defendants.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney V. LaTawn Warsaw.
One Tax Preparer Pleads Guilty and Another Sentenced to Five Years in Prison in Separate Federal Income Tax Fraud CasesRead the Press Release
CHICAGO — A former Chicago tax preparer pleaded guilty to filing nearly 3,200 false federal income tax returns for clients, while in a separate case in Federal Court yesterday, a suburban tax preparer was sentenced to 63 months in prison for fraudulently claiming more than $8 million in tax refunds from the Internal Revenue Service. The unrelated federal prosecutions serve as a reminder to tax preparers and taxpayers alike to comply with the law as the 2013 tax season gets underway.
“With tax season upon us, I want to assure taxpayers that the IRS Criminal Investigation Division is focused on protecting revenue by identifying and investigating abusive tax return preparers. While most return preparers are honest and provide excellent service, a few unscrupulous tax preparers file false returns to defraud their clients and the United States government,” said James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
“Today, we remind dishonest tax preparers: we are watching your activities. These cases should send a loud message to any dishonest return preparers who might be thinking of engaging in criminal activity, and taxpayers should choose carefully when hiring a tax preparer,” Mr. Lee added.
The guilty plea and sentencing were announced by Mr. Lee, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in- Charge of the Chicago Office of the Federal Bureau of Investigation.
In one case, VERLEAN HOLLINS, who owned Taxes, Etc., Inc., a tax preparation business located in the 2300 block of East 71st Street, between at least 2010 and 2012, pleaded guilty to two counts of aiding and assisting in the preparation of false federal income tax returns. Hollins, 43, of South Holland, who was charged on Dec. 19, faces a maximum sentence of six years in prison and a fine of nearly $800,000 when she is sentenced on April 22 by U.S. District Judge Samuel Der-Yeghiayan.
Hollins admitted that for calendar years 2009 through 2011, she filed a total of 3,193 individual income tax returns for clients, each of which falsely claimed higher education tax credits. As a result, she falsely claimed refunds totaling more than $3.372 million for her clients, the majority of whom paid her approximately $125 to prepare their returns, although her fee ranged between $25 and $400. The vast majority of Hollins’ clients never indicated that they or a dependent were eligible for a college tuition credit, and among the small number of her clients who were eligible for the tax credit, none provided any documents to support eligibility.
Hollins’ plea agreement anticipates an advisory federal sentencing guidelines range of 46 to 57 months in prison, and she agreed to a fine of $798,250. Each count of assisting in the preparation of a false federal income tax return carries a maximum sentence of three years in prison and a $250,000 fine, or an alternate fine of twice the gain or twice the loss, whichever is greater. In addition, defendants convicted of tax offenses must pay the costs of prosecution and remain liable for any taxes and interest, as well as a civil penalty up to 75 percent of the taxes owed. The Court must impose a reasonable sentence under federal statutes the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Kaarina Salovaara.
In a separate case, SHARON ANZALDI, 67, of Elmwood Park, was sentenced to 63 months in federal prison and ordered to pay $851,142 in restitution to the IRS for filing 13 false federal income tax returns for herself, friends, and family that fraudulently claimed refunds totaling more than $8 million and caused the IRS to actually pay more than $1 million in bogus refunds.
Anzaldi, who represented herself and was convicted at trial last summer, is associated with the sovereign citizen movement. She was ordered to begin serving her sentence on Feb. 25 by U.S. District Judge Harry Leinenweber. Evidence at trial showed that in one instance, Anzaldi charged a couple $31,000 for her “services” for filing a fraudulent tax return that they simply went along with and did not really understand. The couple returned the bulk of their fraudulent refund but continue to accrue penalties and interest on the amount they spent before returning the money.
Convicted at trial with Anzaldi were her son, PHILLIP DeSALVO, 42, of Bartlett, who was sentenced to 30 months in prison, and STEVEN LATIN, 51, of Crystal Lake, who was sentenced to 18 months in prison.
The government was represented by Assistant U.S. Attorneys Rachel Cannon and Dylan Smith.
Ohio Man Admits Defrauding Charter Flight Company and Other Luxury Brands of More Than $100k in Private Flights, Watches, and Hotel StaysRead the Press Release
NEWARK, N.J. – A resident of Ohio admitted today to defrauding a charter flight company and other luxury brands of more than $100,000 worth luxury goods and services, U.S. Attorney Paul J. Fishman announced.
Christopher L. Henderson, 32, of Akron, Ohio, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court:
From May through June of 2013, Henderson and others conspired to fraudulently obtain at least three private charter flights from Jet Aviation, an international business aviation services company, with U.S. headquarters in Teterboro, N.J., which provides charter flight services. Henderson and others also conspired to obtain tens of thousands of dollars in other luxury goods and services, all via sham lines of credit issued to a well-known financial institution, for the defendants’ and others’ use by misrepresenting that they were employees at the financial institution.
On May 5, 2013, an individual using the name “Josh Stevens” called Jet Aviation’s offices in Chicago, Ill. and Van Nuys, Calif., to inquire about its private charter flight services. That individual identified himself as being employed as a senior vice president at a well-known financial institution and provided an email address purporting to be affiliated with the financial institution. A Jet Aviation employee sent a draft Charter Services Agreement to the provided email address. The agreement was signed by “Josh Stevens” and returned to Jet Aviation on May 9, 2013, falsely listing “Josh Stevens” as a senior vice president and Henderson as a vice president of international affairs at the well-known financial institution. The aviation company established an account and a line of credit for $350,000, which the defendants and others used to take four private charter flights.
As a result of their misrepresentations to Jet Aviation, Henderson and others fraudulently obtained private high-end charter flights and limousine car services, with a total approximate value of $175,790, for which Jet Aviation never received payment.Henderson and others made similar misrepresentations about their purported employment at the financial institution to other luxury service providers and obtained approximately $20,000 in luxury watches, sunglasses, and sterling silver and leather business cardholders, and incurred approximately $25,500 in hotel stays at a luxury hotel in Miami.
As a result of the scheme, Henderson fraudulently obtained more than $135,000 in luxury goods and services.The wire fraud charge to which Henderson pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for April 15, 2014.
Dante G. Dixon, a co-defendant in this case, pleaded guilty on Dec. 17, 2013, to an information charging him with conspiracy to commit wire fraud. Dixon’s sentencing is scheduled for April 23, 2013.
U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-010
Defense counsel: Joshua P. Cohn Esq., Saddle Brook, N.J.
Henderson, Christopher Information
Northern District of Mississippi U.S. Attorney’s Office Collects $1,936,411.56 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
(OXFORD) - U.S. Attorney Felicia C. Adams announced today that the Northern District of Mississippi collected $1,936,411.56 in criminal and civil actions in Fiscal Year 2013. Of this amount, $1,736,873.89 was collected in criminal actions and $199,537.67 was collected in civil actions
Additionally, the Northern District of Mississippi worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $184,251,500.00 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.”
“During this time of economic recovery, these collections are more important than ever,” said U.S. Attorney Felicia C. Adams. “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.”
This past November, the Northern District of Mississippi recovered $525,500.00 as part of a plea agreement in a multi-state tobacco tax evasion criminal case.
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 the Northern District of Mississippi working with partner agencies and divisions, collected$1,865,649.00 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.
Northern District of Texas U.S. Attorney’s Office Collects More Than $31 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
DALLAS — U.S. Attorney Sarah R. Saldaña announced today that the Northern District of Texas collected $31,201,427.29 in criminal and civil actions in Fiscal Year 2013. Of this amount, $12,400,303.78 was collected in criminal actions and $18,801,123.51 was collected in civil actions.
Additionally, Northern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,323,331.29 in cases pursued jointly with these offices. Of this amount, $19,567.77 was collected in criminal actions and $1,303,763.52 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 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 U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and victims of federal crimes,” said U.S. Attorney Saldaña. “For example, in one month alone, the district recovered $6.6 million in one civil health care fraud case. This kind of recovery not only returns funds to the defrauded federal program, but it serves to deter others from engaging in fraud.”
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.
Northern District of California U.S. Attorney’S Office Collects over 394 Million Dollars in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
San Francisco – United States Attorney Melinda Haag announced today that the Northern District of California collected $394,282,021.52 in criminal and civil actions in Fiscal Year 2013 – the second highest amount of money collected by a U.S. Attorney’s Office in the country. Of this amount, $382,346,662.83 was collected in criminal actions and $11,935,358.69 was collected in civil actions.
Additionally, the Northern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $185,079,434.25 in cases pursued jointly with these offices. Of this amount, $3,851.92 was collected in criminal actions and $185,075,582.33 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 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.”
“Long after defendants are sentenced, this office’s financial litigation team works exhaustively to ensure debts are paid to the government and victims,” said United States Attorney Melinda Haag. “The extraordinary results of this hard work are evident in the hundreds of millions of dollars collected by this office last year alone.”
This past May, the District of Northern California recovered $40,000,375 in criminal fines in the Wal-Mart Stores Inc. case, CR-0333-001 JCS, in addition to $20 million for environmental projects, with $4.5 million to be spent in the Bay Area. This case related to Wal-Mart violation of the Clean Water Act by illegally handling and disposing of hazardous materials at its retail stores across the United States. The Bentonville, Ark.-based company also pleaded guilty in Kansas City, Mo., to violating the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) by failing to properly handle pesticides that had been returned by customers at its stores across the country. As a result of the three criminal cases brought by the Justice Department, as well as a related civil case filed by the U.S. Environmental Protection Agency (EPA), Wal-Mart paid approximately $81.6 million for its unlawful conduct. Coupled with previous actions brought by the states of California and Missouri for the same conduct, Wal-Mart ultimately paid a combined total of more than $110 million to resolve cases alleging violations of federal and state environmental laws.
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.
Non-Indian Resident of Pojoaque Pueblo Sentenced to Five Years in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Johncarlos Ortiz, 40, a non-native resident of Pojoaque Pueblo, N.M., was sentenced this morning to five years in prison followed by 15 years of supervised release for his child pornography conviction. Ortiz will be required to register as a sex offender when he completes his prison sentence. Ortiz also was ordered to pay $500 in restitution to the identified victim in the crime of conviction.
Ortiz was arrested in Sept. 2012, on a criminal complaint alleging that he possessed and distributed child pornography at his residence in Pojoaque Pueblo. The investigation of this case was initiated in July 2012, after the National Center for Missing and Exploited Children (NCMEC) received information that images consistent with child pornography had been posted on a social networking site and sent the tip to the New Mexico Attorney General’s Office (NMAGO). In early Aug. 2012, after determining that the images were posted using an email account subscribed to Ortiz, the NMAGO and the New Mexico Internet Crimes Against Children (ICAC) Task Force contacted the FBI. On Sept. 11, 2012, the FBI executed a federal search warrant at Ortiz’s residence and seized a computer and a computer flash drive that contained images consistent with child pornography.
On Aug. 1, 2013, Ortiz pled guilty to a felony information charging him with receipt of a visual depiction of a minor engaged in sexually explicit conduct. In his plea agreement, Ortiz admitted receiving a visual depiction of a minor involved in sexual explicit conduct on Sept. 11, 2012. Ortiz also admitted downloading images consistent with child pornography from various websites. Court records reflect that Ortiz’s unlawful conduct occurred in a residence on the Pojoaque Pueblo.
This case was investigated by the Santa Fe office of the FBI, the NMAGO, the New Mexico Regional Computer Forensic Laboratory and the New Mexico ICAC Task Force. Assistant U.S. Attorney Jacob Wishard prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
New Orleans Area Merchant, Long T. Trinh, Pleads Guilty to over $2 Million in Food Stamp FraudRead the Press Release
LONG T. TRINH, age 44, a resident of New Orleans, Louisiana, pled guilty in federal court today before U.S. District Judge Mary Ann Vial Lemmon to receiving approximately $2,296,379 from the United State Department of Agriculture based upon food stamp benefits through his store Seafood Heaven, located in Gretna, Louisiana, that were not authorized, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to court documents, grocery retailers who participate in the Supplemental Nutrition Assistance Program (“SNAP”), a federal government program formerly known as the Food Stamp Program, may only accept and redeem food stamp benefits in exchange for the sale of eligible food items. Retailers may not exchange food stamp benefits for cash or any other ineligible items of value such as tobacco products or alcoholic beverages. Store owner LONG T. TRINH knowingly presenting for payment and redemption SNAP benefits which had been purchased in exchange for cash money and ineligible items through his store.TRINH faces five (5) years imprisonment and/or a maximum fine of $250,000.00, and three (3) years of supervised release following any term of imprisonment. Sentencing is set for April 3, 2014.
This case was investigated by the United State Department of Agriculture, Office of Inspector General, and the Louisiana Department of Children and Family Services. The case is being prosecuted by Assistant United States Attorney Loan “Mimi” Nguyen.
(Download Factual Basis )
New Mexico U.S. Attorney’s Office Collects More Than $14 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
ALBUQUERQUE – Acting U.S. Attorney Steven C. Yarbrough announced today that the U.S. Attorney’s Office for the District of New Mexico collected $1,150,777.56 in criminal and civil actions in Fiscal Year 2013. Of this amount, $915,306.03 was collected in criminal actions and $235,471.53 was collected in civil actions
Additionally, the U.S. Attorney’s Office for the District of New Mexico worked with other components of the Department of Justice to collect an additional $11,801,237.00 in cases pursued jointly with these offices. Of this amount, $3,840.00 was collected in criminal actions and $11,797,397.00 was collected in civil actions.
The U.S. Attorney’s Office for the District of New Mexico working with partner agencies and divisions, also collected $1,292,980.00 in asset forfeiture actions and $420,544.68 in collateral forfeitures in misdemeanor prosecutions in FY 2013, bringing the Office’s total collections to $14,665,539.24. 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.
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.”
“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,” said Acting U.S. Attorney Steven C. Yarbrough. “We will continue to hold accountable those who seek to profit from their illegal activities.”
Acting U.S. Attorney Yarbrough commended Assistant U.S. Attorneys Howard R. Thomas, Stephen R. Kotz, Cynthia L. Weisman, Sarah M. Davenport, Brock Taylor, William J. Pflugrath, Anna R. Wright, Paul Mysliwiec and Charles L. Barth and staff members Julie Ford, Lois Agnes, Feather Astor, Lois Golden, Sandra Campbell, Robbie Mahan, Doreen Dowling and Elizabeth Buckley for their combined efforts in recovering funds on behalf of the United States. He also commended U.S. Marshal Conrad E. Candelaria and the U.S. Marshals Service for facilitating the collection of funds from the criminal and civil forfeiture actions.
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.
Nevada U. S. Attorney’s Office Collects $18 Million in 2013Read the Press Release
LAS VEGAS, Nev. – U.S. Attorney Daniel G. Bogden announced today that the Nevada U.S. Attorney’s Office collected $18 million in Fiscal Year (FY) 2013 related to criminal, civil and asset forfeiture actions. Of this amount, $10.5 million was collected in criminal actions, $1.6 million was collected in civil actions, and $5.9 million was collected in criminal and civil forfeitures.
Additionally, the District of Nevada worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1.9 million in cases pursued jointly with these offices. This additional shared amount was collected in civil actions.“The collection of monetary penalties in federal litigation is a critical aspect of our work that frequently gets overlooked,” said U.S. Attorney Bogden. “These collections are used to help crime victims and for a variety of other law enforcement purposes. Our FY 2013 collections exceeded our total appropriated budget for our office by almost three times.”
Attorney General Eric Holder announced today that nationally 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.”
An example of a recent case in which the U.S. Attorney’s Office for the District of Nevada collected a significant amount of money is United States v. Richard Young. Young, of Lewistown, Montana, was convicted following a jury trial in March 2011 of various fraud offenses including conspiracy to commit wire fraud, wire fraud, money laundering, and securities fraud. Young deceived more than 1,400 persons into investing more than $16 million in a fraudulent securities trading business which was nothing more than an elaborate Ponzi scheme. Young was sentenced in December 2011 to 25 years in prison and ordered to pay $13.3 million to the victims. Young’s sentence also included a forfeiture order by which multiple items of real and personal property were forfeited to the United States, including tractor-trailers, several homes and business properties in Lewistown, bank accounts holding over $500,000, and multiple cars, tools, furnishings, and business equipment. The forfeited properties were liquidated and yielded approximately $1.12 million. Pending approval from the Department of Justice Asset Forfeiture and Money Laundering Section, those monies will be used to pay the victims of Mr. Young’s crimes in partial satisfaction of the restitution order.
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. 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.
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.Nashua Man Sentenced to Ten Years in Federal Prison for Selling "Crack" CocaineRead the Press Release
CONCORD, NEW HAMPSHIRE –Sean Brown, 40, of Nashua, New Hampshire was sentenced in United States District Court for the District of New Hampshire to ten years in prison after a jury found him guilty of three counts of unlawful distribution of cocaine base (“crack”), announced United States Attorney John P. Kacavas.
During February, 2010, Brown made three sales of cocaine base (“crack”) to an individual assisting the Nashua, New Hampshire Police Department in their investigation into the illegal sale of drugs within the city. The three sales took place in the vicinity of 73 Elm Street, which was Brown’s residence at the time. Brown was arrested outside of the residence on February 24, 2010 as police executed a search warrant on his residence.
In sentencing Brown to a ten year sentence, Judge McAuliffe noted that while Brown dealt small quantities of drugs, he was a “persistent” drug dealer, having been previously convicted in federal court in 1997 with unlawful possession with the intent to distribute cocaine base (“crack”), heroin and methamphetamine, for which he received a 46 month term of imprisonment in federal prison, and again in Hillsborough County Superior Court in 2005 for four counts of unlawful sale of heroin, for which he received a 3 ½ to 7 year sentence in the New Hampshire State Prison.
The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis and Seth Aframe.NYC Man Pleads Guilty for his Role in Scheme Against Local Mortgage CompanyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Sean Ola-Ojo, 33, from Queens, N.Y., pleaded guilty to a felony charge for his role in a mortgage fraud scheme, before U.S. District Judge David H. Larimer. The defendant faces up to 41 months in prison when sentenced.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Ola-Ojo was indicted along with co-defendants Angelo Louissaint and Jennifer Johnson. The defendants organized a scheme to obtain large mortgage loans from Flaherty Funding. The defendants recruited straw-buyers to purchase five properties in the New York City area at substantially inflated prices. These buyers did not qualify for the financing sought, and had no intention of repaying the mortgages or of occupying the properties. To make the straw-buyers appear wealthier than they actually were, the defendants submitted falsified income, asset and down payment information to Flaherty Funding. Virtually every supporting document submitted by the defendants on behalf of the straw-buyers was forged or altered, including the Form W-2s, earnings statements, bank account statements, and down-payment checks. As a result of their scheme, Flaherty Funding approved approximately $1,700,000 in loans.
Charges are still pending against co-defendants Angelo Louissaint and Jennifer Johnson. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
This plea is the culmination of efforts by the United States Postal Inspection Service, Boston Division, under the direction of Inspector in Charge Kevin Niland, the United States Postal Inspection Service, New York Division, under the direction of Inspector in Charge Ronald Verrochio, and the Federal Bureau of Investigation, under the direction of Brian P. Boetig, Special Agent in Charge.Mobile Man Sentenced to Thirty Months Imprisonment for Firearms OffenseRead the Press Release
MOBILE, AL-- The United States Attorney, Kenyen R. Brown, announces thatFrederick Bernard Collins wassentenced today by United States District Court Judge William H. Steele to thirty months imprisonment after pleading guilty in September to being a felon in possession of a firearm in violation of Title 18 USC '922(g)(1). Collins was also ordered to serve three years of supervised release with the United States Probation Office after he completes his term of imprisonment at the Federal Bureau of Prisons. Collins was also ordered to pay a $100 special assessment which goes into a fund for victims of crime. The prior felony offense that Collins was charged with having was Robbery 1st Degree.
The case was jointly investigated by the Bureau of Alcohol Tobacco and Firearms and the Mobile County Sheriff=s Office, Narcotics Division. Brown commended the efforts of the investigative agencies. Brown added that his office would continue to aggressively prosecute offenders who illegal possess weapons and endanger the community.
Minnesota U.S. Attorney’s Office Collected More Than $16.7 Million in Civil and Criminal Actions; Forfeited More Than $22 Million in Assets in Fiscal Year 2013Read the Press Release
MINNEAPOLIS—Acting United States Attorney John R. Marti announced today that the U.S. Attorney’s Office for the District of Minnesota collected $16,782,266.24 in criminal and civil actions in Fiscal Year 2013. Of this amount, $8,237,258.34 was collected in criminal actions and $8,545,007.90 was collected in civil actions.
Additionally, the U.S. Attorney’s Office for the District of Minnesota, working with partner agencies and divisions, collected $22,127,398 in asset forfeiture actions in Fiscal Year 2013. Forfeited assets are deposited into the Department of Justice and Treasury Assets Forfeiture Funds, and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Additionally, Minnesota’s U.S. Attorney’s Office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $458,000 in civil cases pursued jointly with these offices. Nationwide, the U.S. Attorney’s Offices collected $8.1 billion in criminal and civil actions during Fiscal Year 2013. A portion of this amount, $5.9 billion, was collected in shared cases in which one or more U.S. Attorney’s Offices or department litigating divisions were also involved. The $8.1 billion represents nearly three times the approximately $2.76 billion of the department’s direct appropriations that pay for the 94 U.S. Attorneys’ offices and its main litigating divisions., and it is the second-largest collection year in the department’s history, trailing only Fiscal Year 2012 when $13.1 billion was collected.
“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 Eric 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 making today’s announcement, Marti said, “The public dialogue is often focused on the cost of government. But one fact often ignored is that attorneys and staff of this office and the Department of Justice regularly recoup funds owed to the government and crime victims in amounts that far exceed our annual budgets. These recoveries come from many sources and are essential and valuable in these challenging economic times.”
One of the largest civil recoveries obtained by Minnesota’s U.S. Attorney’s Office during Fiscal Year 2013 came from MTS Systems Corporation. In 2008, MTS pled guilty to two misdemeanor counts of knowingly submitting false or misleading export control filings to the U.S. Department of Commerce. Notwithstanding its plea agreement, MTS certified several times during the next three years that it had not been convicted of various criminal violations, including “falsification of records” and “making false statements,” within the preceding three years. MTS allegedly used those false certifications to win millions of dollars in government contracts. The Minnesota U.S. Attorney’s Office commenced suit against MTS under the False Claims Act, and to resolve the civil case, MTS paid $7.75 million.
A second civil recovery in Minnesota stemmed from a case against Bioscrip, a national specialty pharmacy services provider with a large mail-order component. The lawsuit commenced by the U.S. Attorney’s Office contended that Bioscrip failed to refund credit balances, failed to maintain prescriptions on file, and billed for products not provided. Bioscrip paid $5.06 million to settle the civil case.
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 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, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.Middle District of North Carolina United States Attorney’s Office Collects $2,643,276.87 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that the Middle District of North Carolina collected $2,643,276.87 in criminal and civil actions during Fiscal Year 2013. Of this amount, $1,381,953.47 was collected in criminal actions and $1,261,323.40 was collected in civil actions
Additionally, Middle District of North Carolina worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,062.00 in criminal actions 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 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.”
“Our employees work very hard every day to collect money owed to crime victims and to the government,” said U.S. Attorney Rand. “These are tough economic times for everyone, and we will continue to focus on collections efforts to seek justice for crime victims and hold accountable those who seek to profit from illegal activity.”
The U.S. Attorney’s 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.
Additionally, the U.S. Attorney’s Office in Middle District of North Carolina, working with partner agencies and divisions, collected $2,621,465.00 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund and Department of Treasury Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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.
Michigan Companies to Pay $3.8 Million to Resolve Allegations of <br /> Falsely Claiming Disadvantaged Business CreditsRead the Press Release
The Justice Department announced today that two related entities, Michigan-based Cadillac Asphalt LLC (Cadillac) and Michigan Paving and Materials Co. (MPM), have agreed to pay $3.8 million to resolve allegations that they falsely claimed Disadvantaged Business Enterprise (DBE) credits on a number of federally funded transportation projects. Both Cadillac and MPM are subsidiaries of Oldcastle Materials Inc., a construction material and services provider based in Atlanta.
“The Disadvantaged Business Enterprise program helps businesses owned by minorities and women to work on federally funded projects,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Those who falsely claim credits under the program to obtain federal funds victimize both the taxpayers and the businesses that the program is designed to assist.”
“The U.S. Attorney’s Office works with the Civil Division in Washington to use civil enforcement to recover funds for taxpayers,” said U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade. “In this case, civil attorneys were able to recover more than $3 million that was obtained through false claims.”The settlement announced today resolves allegations that Cadillac and MPM knowingly and falsely claimed DBE credit for asphalt purportedly supplied by a DBE known as BN&M Trucking Inc. As a condition of federal funding, contractors, such as Cadillac and MPM, working on a federally funded project must make a good-faith attempt to meet DBE participation goals. For the contractors to meet their DBE participation goal, a DBE employed by the contractors must be independently responsible for performing a portion of the work with its own employees and equipment. Allegedly, BN&M Trucking was merely a pass-through company that did not supply any asphalt or perform any other commercially useful function.
“We remain steadfast in our commitment to maintaining the integrity of the U.S. Department of Transportation’s (USDOT) Disadvantaged Business Enterprise program,” said regional Special Agent-in-Charge of USDOT’s Office of Inspector General Michelle T. McVicker. “Working with the Secretary of Transportation, other DOT leaders and our law enforcement colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
The allegations resolved by the settlement involved numerous federally funded transportation projects in Michigan between 2006 and 2010, including a project to construct a new runway at Detroit Metropolitan Wayne County Airport in 2008 and 2009. In November 2010, two other entities, John Carlo Inc. and Angelo Iafrate Construction Co. Inc., paid more than $1 million to resolve similar allegations related to the airport runway project.
This case was handled by the Justice Department’s Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Office for the Eastern District of Michigan and the Department of Transportation Office of Inspector General. The claims settled in this case are allegations only; there has been no determination of liability.
Members of Western Addition “CDP” Gang Charged with Racketeering Conspiracy, Murder, Attempted Murder, Assault with A Dangerous Weapon, Pimping, and Related ChargesRead the Press Release
SAN FRANCISCO – A seventeen-count federal superseding indictment charging nine members of the “Central Divis Playas,” a/k/a “CDP” gang, and one associate, was returned by the Grand Jury on January 9, 2014, in federal court, announced United States Attorney Melinda Haag. The ten defendants, all of San Francisco, listed below, are already in state or federal custody:
- ALFONZO WILLIAMS, a/k/a “Fonz,” a/k/a “Relly,”
- ANTONIO GILTON, JR., a/k/a “TG,”
- BARRY GILTON, a/k/a “Prell,”
- LUPE MERCADO,
- ADRIAN GORDON, a/k/a “Tit,”
- REGINALD ELMORE, a/k/a “Fat Reg,”
- CHARLES HEARD, a/k/a “Cheese,”
- ESAU FERDINAND, a/k/a “Sauce,”
- PAUL ROBESON, a/k/a “P World,” and
- MONZELL HARDING. JR.
According to the Superseding Indictment, CDP is a violent street gang based in the Western Addition neighborhood of San Francisco. Nine defendants, all except Mercado, are charged with a racketeering conspiracy, related to the conduct of the affairs of CDP through the crimes of murder, attempted murder, robbery, narcotics trafficking, pimping, pimping of minors, and extortion. Williams, Antonio Gilton, Barry Gilton, and Mercado are charged with the June 4, 2012, murder of Calvin Sneed in San Francisco, in aid of racketeering and associated firearms charges. Mercado is charged with accessory after the fact to murder. Defendants Elmore and Heard are charged with the August 14, 2008, double murder in aid of racketeering of Andre Helton and Isaiah Turner in San Francisco and related firearms offenses. Adrian Gordon is charged with attempted murder in aid of racketeering and assault with a dangerous weapon in aid of racketeering and discharge of a firearm in furtherance of those offenses. Esau Ferdinand is charged with attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, maiming in aid of racketeering, and discharge of a firearm in furtherance of those crimes of violence. Each defendant faces a maximum term of imprisonment of life, and Elmore and Heard could face a death sentence, following consideration of the case by the U.S. Attorney General.
The prosecution is the result of joint investigation by the Federal Bureau of Investigation; San Francisco Police Department’s Gang Task Force, Homicide Detail, Robbery Detail, Special Victims Unit, and the Northern, Park, and Bayview Stations; San Francisco District Attorney’s Office; and the San Pablo Police Department.
Please note, an indictment contains only allegations against a person and, as with all defendants, these defendants must be presumed innocent unless and until proven guilty.
(Williams et al superseding indictment)
Maryland U. S. Attorney’s Office Collects over $143 Million in Civil and Criminal Actions for U.S. Taxpayers in FY2013Read the Press Release
Also Collected Over $26 Million in Asset Forfeitures
Baltimore, Maryland – U.S. Attorney Rod J. Rosenstein announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2013 in the District of Maryland reached $143,297,520.31. The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.
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,which 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.”
“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Rod J. Rosenstein. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”
According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland in FY 2013 collected $137,587,803.66 in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines and felony assessments. The statistics also show that $5,709,716.65 was collected in civil actions handled exclusively by the U.S. Attorney’s Office for the District of Maryland, including judgments in civil cases.
Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $348,391,707.91 in cases pursued jointly with these offices, including cases resolved under the False Claims Act on behalf of victim agencies such as the Department of Health and Human Services and the Environment Protection Agency. These cases include the successful resolutions of United States ex rel. Thakur v. Ranbaxy Laboratories Limited, United States ex rel. Heiden v. Boehringer Ingelheim Pharmaceuticals, Inc., United States ex rel. Momeyer v. Hospice of Arizona, L.L.C., United States ex rel. Ryan v. Trans1, Inc. and an investigation of U.S. Renal Care. Of this amount, $6,200 was collected in criminal actions and $348,385,507.91 was collected in civil actions.
The $143 million collected by the U.S. Attorney’s Office for the District of Maryland in FY 2013 represents approximately eight times the office’s appropriated $17.9 million budget 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 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 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 programs.
The statistics show that the $5,709,716.65 collected in civil actions in Maryland, include affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws, and debts collected on behalf of several federal agencies, including the U.S. Department of Education, Housing and Urban Development, Health and Human Services, Internal Revenue Service, and Small Business Administration.In the criminal area, of the total $137,587,803.66 collected, $6,155,018.82 was for restitution for federal agencies and for victims other than the federal governments; and $131,432,784.84 was for criminal fines and other criminal collections.
In addition, the U.S. Attorney’s Office for the District of Maryland, working with partner agencies and divisions, collected $26,853,350 in asset forfeiture actions in FY 2012. 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.
For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the internet at: http://www.justice.gov/usao/reading_room/foiamanuals.html.