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29 January 2014
Eagle Butte Woman Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Kenna Bridwell, age 28, was indicted on January 14, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Bridwell is alleged to have assaulted a woman in November 2013, as a result of a car crash near Eagle Butte. The charge is merely an accusation and Bridwell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Bridwell was released on bond pending trial. A trial date has not been set.
Dowson Farms Pays $5.4 Million to Resolve False Claims Allegations Related to Farm Subsidy Payment LimitsRead the Press Release
Springfield, Ill. – A central Illinois family farm business, known collectively as Dowson Farms, based in Divernon, Ill., has paid $5,364,000 to the United States to resolve allegations that it conspired to avoid statutory caps on federal farm subsidy payments from 2002 through 2008, under terms of an out-of-court settlement announced today by the U.S. Attorney’s Office for the Central District of Illinois. The United States had alleged that Dowson Farms’ principal owners, John J. Dowson, John C. Dowson, Darrel Thoma, Amy D. Thoma, and Melissa D. Vorreyer, violated the False Claims Act by creating multiple entities, falsely claiming that these entities were actively engaged in farming separate and distinct from Dowson Farms. As a result, Dowson Farms’ owners allegedly received farm subsidies to which they were not entitled.
The settlement, reached out-of-court by the Dowsons and before the United States had initiated any action, is neither an admission of liability by the Dowsons nor a concession by the United States that its claims were not well founded. The settlement avoids the delay, uncertainty, inconvenience, and expense of protracted litigation that likely would have resulted from the United States’ claims. With the second of two equal payments received this week, the United States has released Dowson Farms’ principal owners from civil and administrative claims related to the operation of limited partnerships and participation by those partnerships and the Dowsons in U.S. Department of Agriculture farm subsidy programs from Jan.1, 2002, through Dec. 31, 2008.
“We are pleased with this favorable resolution of the government’s claims of misuse of farm subsidy programs,” stated U.S. Attorney Jim Lewis. “These programs are designed to help farmers withstand market price volatility and the intrinsic risks associated with farming from year to year. Any attempt to exploit the system to take more than one’s fair share is an improper use of government funds that erodes the public confidence in such programs and threatens their continued viability.”
The United States had alleged that the Dowsons evaded annual payment caps established by Congress to limit the amount of payment individuals can receive during a given crop year from farm subsidy programs, known as Direct Payments and Counter-Cyclical Payments. According to Farm Service Agency regulations, the Direct and Counter-Cyclical Payments Program provided payments to eligible producers on farms enrolled for the 2002 to 2007 crop years. While Direct Payments were tied to acreage bases and yields, Counter-Cyclical Payments provided support to counter the cycle of market prices as part of a safety net in the event of low crop prices.
Throughout this time period, Congress had established an annual limit for each qualified participant in the program. In particular, Congress permitted an individual to receive payments on up to three entities. Under what is known as the “Three Entity Rule,” no person may receive payments subject to these rules from more than three entities in which the person held substantial beneficial interest. If an individual received payments as an individual, he or she could not also receive payment from more than two entities that receive payment as a separate ‘person.’ Using this provision, along with other regulations, an individual was effectively allowed to receive payments to himself and on behalf of up to two additional entities in which the individual held up to a 50 percent interest.
According to the United States, the Dowsons allegedly created multiple limited partnerships for the apparent purpose of concealing the interests of John Dowson, his son, Chris Dowson, and John’s son-in-law, Darrel Thoma, in the entities’ farming operations. For the multiple limited partnerships established by the Dowsons, on paper, 98 percent of the purported ownership was held by various employees, including farm hands and other straw men, while the Dowsons retained only a two percent interest. The United States had asserted that the limited partners contributed nothing to establish their ownership interest and none had any authority to conduct business on behalf of their respective partnership. Meanwhile, again according to the United States, the Dowsons wholly controlled the partnerships’ finances and commodity sales. Farm Service Agency regulations specifically prohibit a person from adopting a scheme or device designed to evade the payment limitations or that has the effect of evading the payment limitations. According to the United States, the creation and use of these limited partnerships, at a minimum, had the effect of evading payment limitations.
The agreement was negotiated by First Assistant U.S. Attorney Eric I. Long on behalf of the U.S. Attorney’s Office for the Central District of Illinois and the U.S. Department of Agriculture.
Department of Defense Procurement Official Sentenced for his Role in Contract Bribery SchemeRead the Press Release
SALT LAKE CITY -A Utah man was sentenced to serve 24 months in prison for his role in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
On Oct. 24, 2011, Jose Mendez, 52, of Farr West, Utah, pleaded guilty to conspiracy to commit bribery and procurement fraud, bribery, and procurement fraud. Mendez was charged in an October 2011 indictment, along with Sylvester Zugrav, 71, and Maria Zugrav, 67, owners of Atlas International Trading Company in Sarasota, Fla. The Zugravs were sentenced on Jan. 8, 2014.According to court documents, while Mendez worked as a procurement program manager for the U.S. Air Force at Hill Air Force Base in Ogden, Utah, he conspired to enrich himself and others by exchanging money and other things of value for non-public information and favorable treatment in the procurement process. Court records state that Mendez was offered approximately $1,240,500 in payments and other things of value throughout the course of the conspiracy. Mendez admitted that from approximately 2008 to August 2011, he received more than $185,000 in payments and other things of value, with promises of additional bribe payments if Atlas were to receive future contracts from the U.S. government.
In return for the bribes offered and paid, Mendez admitted he gave Atlas and the Zugravs favorable treatment during the procurement process, including disclosing government budget and competitor bid information, which helped Atlas and the Zugravs in winning contracts.
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case was prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah.
Department of Defense Procurement Official Sentenced for His Role in Contract Bribery SchemeRead the Press Release
A Utah man was sentenced to serve 24 months in prison for his role in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
On Oct. 24, 2011, Jose Mendez, 50, of Farr West, Utah, pleaded guilty to conspiracy to commit bribery and procurement fraud, bribery, and procurement fraud. Mendez was charged in an October 2011 indictment, along with Sylvester Zugrav, 71, and Maria Zugrav, 67, owners of Atlas International Trading Company in Sarasota, Fla. The Zugravs were sentenced on Jan. 8, 2014.
According to court documents, while Mendez worked as a procurement program manager for the U.S. Air Force at Hill Air Force Base in Ogden, Utah, he conspired to enrich himself and others by exchanging money and other things of value for non-public information and favorable treatment in the procurement process. Court records state that Mendez was offered approximately $1,240,500 in payments and other things of value throughout the course of the conspiracy. Mendez admitted that from approximately 2008 to August 2011, he received more than $185,000 in payments and other things of value, with promises of additional bribe payments if Atlas were to receive future contracts from the U.S. government.
In return for the bribes offered and paid, Mendez admitted he gave Atlas and the Zugravs favorable treatment during the procurement process, including disclosing government budget and competitor bid information, which helped Atlas and the Zugravs in winning contracts.
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case was prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah.
Defendant Pleads Guilty to Submitting False Claims to the Federal GovernmentRead the Press Release
Maple Rapids Resident James Ortman Admits to Fraud in Conjunction with Federal Grants for Buildings he Formerly Owned in St. Johns, Michigan
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr., announced today that James Francis Ortman, 58, of Maple Rapids, Michigan, pled guilty to a felony information filed on January 8, 2014, that charged him with submitting false claims to the U.S. Department of Housing and Urban Development (HUD) in conjunction with grants awarded to him in 2008 and 2009. The grants were administered by the City of St. Johns and the Michigan State Housing Development Authority (MSHDA).
“When used appropriately, HUD grants encourage development and new job opportunities in our local communities,” said U.S. Attorney Miles. “This office will vigorously pursue those who seek to line their own pockets by diverting from their intended purpose scarce grant monies that are funded by the hard-working taxpayers of this district.”
Ortman admitted at his change of plea hearing before United States Magistrate Judge Ellen S. Carmody that in 2008 the City of St. Johns awarded him a federal grant as part of a Downtown Façade Project for his building located at the corner of North Clinton and East Walker streets. In order to receive the grant, Ortman represented to the City that the façade improvements would cost $416,999, and that the project would ultimately create four permanent jobs for low and moderate-income persons. The grant provided that if the project truly cost that amount, and if Ortman invested $216,999 of his own funds into the project, HUD would fund the remaining cost of $200,000. Ortman admitted at the hearing that he did not invest his own funds as represented and that he submitted false documents to the federal government to make it appear as if his actual costs equaled the projected amount. As a result, he received the full amount of the grant ($200,000), when he should have received less than half of this amount.
Ortman further admitted that he committed fraud in conjunction with a Rental Rehabilitation Grant that the City awarded to him in 2009. The terms of that grant required Ortman to construct apartments for income-qualified individuals in various buildings that he owned in St. Johns. Ortman admitted that he submitted claims for grant payments to the federal government for work that he did not actually complete and that he diverted those grant payments to other business ventures that were in financial trouble. As a result, many of the income-based apartments were never completed. Ortman caused a combined loss of over $200,000 to the federal government in conjunction with the façade and rental rehabilitation grants.
“HUD’s Office of Inspector General, working with the U.S. Attorney’s Office, will relentlessly hunt for predators who, despite their best efforts to conceal their theft, have swindled the taxpayer and hurt Michigan’s neediest families,” said Barry McLaughlin, Special Agent in Charge, HUD-OIG Region V. “Theft of HUD grant funding amounts to stealing from hard-working taxpayers,” added Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI, in concert with our law enforcement partners, remains dedicated to pursuing those who selfishly misappropriate public funds intended for the public good.”
Ortman is awaiting his sentencing hearing, at which time Ortman will face a maximum term of imprisonment of five years, a fine of up to $250,000, and will be ordered to pay restitution to HUD. The Detroit office of the U.S. Department of Housing and Urban Development-Office of Inspector General, along with the Lansing office of the FBI, investigated the case. The prosecution of the case is being handled by Assistant U.S. Attorney Ronald M. Stella.
END
DEA Receiving Tips on Recent Heroin Overdoses via TextRead the Press Release
PITTSBURGH - The Pittsburgh Office of the Drug Enforcement Administration (DEA) has implemented the Tip411 system to receive information related to the recent heroin and fentanyl overdoses in the Pittsburgh area.
Information can be sent via text message by entering Tip411 (847411) in the “To” field, and the keyword “PGHOD” followed by the tip information in the text field. All information provided is 100% anonymous.
Customs and Border Protection Supervisor Sentenced for Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Steven Metz, 42, of Hamburg, N.Y. who was convicted of possession of child pornography, was sentenced to five years in prison and five years of supervised release by U.S. District Court Chief Judge William M. Skretny. The judge ordered that the defendant be remanded immediately.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that on October 25, 2012, the defendant, a supervisor with U.S. Customs and Border Protection, was found in possession of approximately 3000 images and 70 videos of child pornography on his computer at his residence in Hamburg. Some of these files contained depictions of violence, and some of the children shown in the images and videos were prepubescent children as young as three years old. As a result of this conviction, the defendant will no longer be employed by the federal agency.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Special Agents of the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in charge Gregory Null, and officers of the Hamburg Police Department under the direction of Chief Michael K. Williams.Criminal Immigration Charges Brought Against Four Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced today that charges have been brought this week against the following:
Domingo Cervante-Dominguez, at 34, a native and citizen of Mexico, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Cervante-Dominguez, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in York, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Cervante-Dominguez, faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Jorge De Leon-Estrada, age 34, a native and citizen of Guatemala, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that De Leon-Estrada, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in Franklin, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, De Leon-Estrada faces a maximum sentence of up to 6 months’ of imprisonment and a $5,000 fine.
Elvin Sanchez-Herrera, age 33, a native and citizen of El Salvador, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that Sanchez-Herrera, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in York, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Sanchez-Herrera faces a maximum sentence of up to 6 months’ of imprisonment and a $5,000 fine.
Fidel Bautista-Salazar, age 35, a native and citizen of Mexico, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that Bautista-Salazar, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Bautista-Salazar faces a maximum sentence of up to 6 months’ of imprisonment and a $5,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and are being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these cases, the maximum penalty under the federal statute is 6 months’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offenses are not an accurate indicator of the potential sentence for a specific defendant.
****Council Bluffs Man Sentenced on Drug and Firearm ChargesRead the Press Release
DES MOINES, IA - On January 28, 2014, Scott Norman Hart, age 37, of Council Bluffs, Iowa, was sentenced in United States District Court in Council Bluffs on charges of possession of methamphetamine with intent to distribute, and carrying a firearm regarding drug trafficking, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Hart to a total of 240 months imprisonment, that is, 180 months imprisonment on the drug charge, and a consecutive 60 months imprisonment on the firearm charge. Hart was further sentenced to concurrent terms of 5 years of supervised release on both charges. Hart was also ordered to forfeit the firearm and ammunition he possessed, and to pay a $200.00 special assessment for the Crime Victim Fund. Hart remains in the custody of the United States Marshal pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence.
The charges arose from the Fugitive Task Force encountering Hart at a residence in Council Bluffs, Iowa, on November 9, 2012. Hart was wanted on a fugitive warrant for absconding from parole in Nebraska. At the time Hart was arrested, he was found in possession of approximately 95 grams of methamphetamine and a small quantity of marijuana. Also found on his person at the time of his arrest was a loaded .380 caliber pistol.
The case was investigated by the Council Bluffs, Iowa, Police Department, the United States Marshals Service, the Southwest Iowa Narcotics Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Convicted Sex Trafficker Sentenced to More Than 30 Years in PrisonRead the Press Release
U.S. District Court Judge Susan C. Bucklew sentenced Andrew Blane Fields, 62, of Lutz, Fla., to serve 33 years and nine months in prison followed by five years of supervised release, the Justice Department announced today. A jury convicted Fields on Nov. 6, 2013, of five counts of sex trafficking by force, fraud and coercion, and three narcotics counts arising from his distribution of controlled substances to the sex trafficking victims as part of his scheme of coercion.
“The Civil Rights Division is committed to pursuing justice on behalf of vulnerable members of our society,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “This defendant preyed on young women living in the shadows and on the margins. Using false promises to lure them in, he cruelly exploited them for his own profit, destroying them with drugs and selling their bodies for sex. This sentence sends a clear message that the United States will not tolerate modern-day slavery and will work tirelessly to restore the rights and dignity of its victims.”
“The court’s sentence clearly reflects the seriousness of these awful sex trafficking crimes,” said U.S. Attorney A. Lee Bentley III for the Middle District of Florida. “We will continue to work with the Clearwater Area Human Trafficking Task Force and other law enforcement partners throughout the District to prosecute sex traffickers and vindicate victims’ rights.”
During the trial, five victims recounted their intense fear of withdrawal sickness and related that Fields manipulated that fear to coerce them to perform acts of prostitution for the defendant’s profit in exchange for another dose of the addictive drugs. One of the victims testified that Fields, while watching her suffer through the onset of the excruciating physical and psychological withdrawal symptoms, would compel her to serve another prostitution client by saying, “I’ll give you one pill. I’m not going to give you another until you get up and go to work. And you know you need another.”
The case was investigated jointly by Immigration and Customs Enforcement (ICE) and the Clearwater, Fla., Police Department through their participation on the Clearwater Area Human Trafficking Task Force.
“Andrew Fields used prescription pills to manipulate and coerce his victims to prostitute themselves for his own financial gain,” said Deputy Special Agent in Charge Shane Folden of Homeland Security Investigations Tampa. “Even though we can’t take away the physical and psychological damage his victims have endured, this nearly 34-year sentence ensures that additional women won’t fall prey to his sex trafficking scheme.”
“Our agency takes these human trafficking cases very seriously because these perpetrators commit unfathomable crimes,” said Chief Anthony Holloway for the Clearwater Police Department. “This defendant took over the lives of these women. We cannot – and will not – let that happen.”
Evidence presented at trial showed that Fields identified vulnerable young women, one just 18 years old, who were prostituting or working as exotic dancers, using online advertisements to lure them with promises of safe transportation and protection. The defendant then provided the victims with addictive drugs such as Oxycodone, Dilaudid and Morphine, at levels designed to intensify their dependency and addiction. The evidence showed that the defendant rapidly increased the victims’ drug use; while some victims initially used drugs only occasionally and others used a few pills a day, Fields escalated their drug use to full-blown addiction, with some victims requiring up to 15 pills a day to stave off withdrawal symptoms. The evidence showed that Fields acquired the drugs at low costs and charged the victims inflated prices to saddle them with mounting drug debts. He then manipulated their fear of withdrawal symptoms to compel them to prostitute and turn over all proceeds to him, leaving them with no money, no other access to the addictive drugs and fully dependent on Fields to avert withdrawal sickness. At times, Fields demanded that the victims engage in sexual acts with him to pay down the debts.
Evidence seized from Fields’ home included over 4,000 prescription pills, notebooks in which he recorded the victims’ debts, advertisements for prostitution, cash, condoms and books about pimping and prescription drugs.
Surveillance camera video footage admitted into evidence showed Fields entering a hospital room in the middle of the night to deliver drugs to one of the victims. The video showed Fields handing the woman pills and another object which she hid under her bed sheet. At trial, the victim testified that the pills were Dilaudid and the other object was a syringe to inject the drug intravenously.
Another victim testified that Fields threatened to contact her probation officer and to have her probation violated if she did not continue to engage in prostitution for his profit. The evidence established that Fields caused her probation to be violated when she did not submit to his demands that she continue prostituting. The defendant contacted the victim while she was incarcerated to pressure her to recruit other victims, then immediately delivered addictive drugs to her upon her release from prison.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Clearwater Police Department, with assistance from members of the Clearwater Area Human Trafficking Task Force. Assistant U.S. Attorney Josephine W. Thomas and Trial Attorney William E. Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Cincinnati Man Sentenced to 27 Years in Prison for Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – John Hamilton, 46, of Cincinnati was sentenced in U.S. District Court to 27 years in prison for recording a video of sexual activity between him and a minor girl between 12 and 16 years old. Hamilton was also ordered to be under court supervision for the rest of his life.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Cincinnati Police Chief Jeffrey Blackwell, and agencies in the Greater Cincinnati Internet Crimes Against Children Task Force announced the sentence handed down today by Senior U.S. District Judge Sandra S. Beckwith.
Hamilton pleaded guilty on June 26, 2013 to one count of production of child pornography. According to court documents, Cincinnati Police received a report in June 2012 that Hamilton had engaged in unlawful sexual conduct with a minor. Detectives investigating the complaint seized a computer and a forensic analysis revealed that the video was produced on February 21, 2012 in the victim’s home. Forensic analysis did not show any distribution of the video. Hamilton was arrested in October 2012. He has been in custody since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by Cincinnati Police officers and investigators with the Greater Cincinnati ICAC as well as Assistant U.S. Attorney Christy Muncy who is representing the United States in this case.
Agencies participating in the Greater Cincinnati ICAC, in addition to the U.S. Attorney’s Office include the FBI, U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, Hamilton County Sheriff Jim Neil and the police departments in Amberley Village, Blue Ash, Cincinnati, and West Chester.
Chatauqua County Business Owner Sentenced for Failing to Pay Payroll TaxesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that John C. Creighton, 57, of Bemus Point, N.Y., who was convicted of failing to pay payroll taxes, was sentenced to 12 months in prison and ordered to pay restitution to the IRS totaling $663,627, by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that Creighton is the president and owner of Classic Brass Inc. in Lakewood, N.Y. In 2010 and 2011, the defendant withheld payroll taxes from the paychecks of CBI employees. Creighton failed however to make payroll tax payments to the IRS, and failed to file Forms 941 regarding the payment of payroll taxes.
The sentencing is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch.Ceo of Free Truth Enterprises Sentenced to Prison for Tax Fraud and Mortgage Loan FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI, OHIO -- Regina Shields, 41, of Cincinnati, Ohio was sentenced in US. District Court to 12 months and one day in prison, and ordered to pay $202,806 in restitution to the Internal Revenue Service and the lender she defrauded in a mortgage fraud scam.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office; and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the sentence handed down today by Chief U.S. District Court Judge Susan J. Dlott.
Shields pleaded guilty in June 2013 to one count of filing a false income tax return and one count of wire fraud. According to court documents, Shields formed a non-profit corporation called Free Truth Enterprises and has served as the President and CEO since 2000. From 2007 through 2010, Shields filed federal income tax returns with the IRS claiming $61,315 in false claims for income tax refunds.
“The mortgage loan offense involves a brazen scheme whereby she bid for and won a sheriff’s auction for a property that was in foreclosure,” Assistant U.S. Attorney Tim Mangan told the court. “She then purported to pay for the property using a check that had insufficient funds. To make matters worse, the Defendant then used this temporary appearance of title to apply for a sizable loan from Quicken Loans in excess of $140,000. She then used the proceeds to purchase a luxury car.”
Shields’ sentence includes restitution to the IRS in the amount of $61,315, and restitution in the amount of $141,491 to Title Source, Inc. (related to Quicken Loans).
Stewart commended the cooperative investigation by special agents of IRS-Criminal Investigation and the FBI, Assistant United States Attorney Timothy Mangan who prosecuted the case.
# # #Central Illinois Farmer, Former Elevator Manager Sentenced to Prison for Fraud SchemeRead the Press Release
Peoria, Ill. – A central Illinois farmer, Robert James Printz, 46, of Fairbury, Ill., and Timothy Boerma, 37, a former manager of Towanda Grain Company, were sentenced today for their respective roles in a scheme to defraud the elevator, Printz’s creditors, and others. Chief U.S. District Judge James E. Shadid ordered that Printz serve 121 months (10 years, 1 month) in federal prison and pay restitution in the amount of $7,038,537; Boerma was sentenced to 72 months (6 years) in federal prison and ordered to pay restitution in the amount of $6,730,594. Both men were given Apr. 15, 2014, to report to the federal Bureau of Prisons to begin serving their prison sentence. Following completion of their prison terms, both defendants were ordered to remain on supervised release for five years.
According to court documents, Printz farmed in central Illinois as Printz Farms. Boerma, of Lincoln, Ill., was employed at Towanda Grain and became manager of the elevator in April 2009. The Towanda Grain board of directors discharged Boerma from his position on May 10, 2010, the same date that the Illinois Department of Agriculture suspended Towanda Grain’s license. The Department of Agriculture later helped facilitate the sale of Towanda Grain to Evergreen FS.
On May 30, 2013, Printz and Boerma entered pleas of guilty for their respective roles in the fraud scheme. Printz pled guilty to one count each of wire fraud and money laundering related to his scheme to defraud CNH, which had extended lines of credit to Printz for operating expenses. Boerma pled guilty to one count of wire fraud.
Under terms of the plea agreement, Printz agreed to forfeit to the government a 2010 Lincoln Navigator, diamond jewelry, two Rolex watches, and a 5th wheel camper. The government dismissed forfeiture allegations regarding real estate known as: 22232 East 2750 North Rd, Lexington, Ill., 20952 E. Road, Anchor, Ill., 207 Walcrest Drive, Fairbury, Ill., 25386 Arrowhead Lane, Hudson, Ill., 19990 E 260 North Road, Fairbury, Ill., and, 162 acres of farmland in Fairbury, Ill.
Printz and Boerma pled guilty to their participation in a fraud scheme that defrauded CNH Capital, which provided Printz with a line of credit for his farming operation; Towanda Grain, and others from September 2009 to May 2010. In October 2009, at about the same time that Printz reached the maximum on his 2009 line of credit, he began to deliver grain to Towanda Grain, an elevator he had disclosed as a possible grain purchaser under his security agreement with CNH. Boerma, the Towanda Grain manager, handled the transactions with Printz, and issued grain advance checks payable only to Printz, in violation of the CNH security agreement.
From October 2009 to about January 2010, Printz admitted that he continued to obtain advances from Boerma, at more than twice the value of the grain Printz delivered. From October 2009 to April 2010, Printz received a total of approximately $13.1 million from Towanda Grain. Printz subsequently made repayments to Towanda Grain of approximately $6.1 million. To conceal funds from CNH, Printz misrepresented to his accountants the nature of the transactions and the amount of funds received.
Boerma admitted that he acted contrary to the terms of the loan agreement between Towanda Grain and CoBank, a secured lender of Towanda Grain, in making loans and advances to Printz. To conceal the payments to Printz, Boerma made false entries in the records of Towanda Grain and provided false statements to CoBank.
The charges resulted from an investigation by Internal Revenue Service Criminal Investigations; the U.S. Postal Inspection Service; and the Illinois Department of Agriculture. The case was prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Assistant U.S. Attorney Bradley W. Murphy.Camden County, N.J., Man Sentenced to Seven Years in Prison for Illegal Weapons PossessionRead the Press Release
CAMDEN, N.J. – A Camden County, N.J., man was sentenced today to 84 months in prison for illegally possessing firearms, including assault rifles and a stolen handgun, which he sold to a confidential informant, U.S. Attorney Paul J. Fishman announced.
Ashley C. Love, 39, of Lindenwold, N.J., previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of possessing firearms and ammunition while being a previously convicted felon.
According to documents filed in this case and statements made in court:
Between October 2011 and November 2011, Love sold a confidential informant five firearms – three assault rifles (one of them, with compatible ammunition), a stolen 9mm Ruger handgun (with compatible ammunition), and a shotgun. All of the weapons and ammunition are now in the custody of law enforcement.
In addition to the prison term, Judge Bumb sentenced Love to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Acting Special Agent in Charge George Belsky, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.
14-034
Defense counsel: Lisa Lewis Esq., PhiladelphiaCali, Colombia Man Pleads Guilty to Drug Importation ConspiracyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Raul Eraso-Mejia (54, Cali, Colombia, South America) today pleaded guilty to an Information charging him with conspiring with others to distribute 5 kilograms or more of cocaine, knowing and intending that such substance would be unlawfully imported into the United States. Eraso-Mejia faces a minimum mandatory penalty of 10 years, up to life in federal prison.
According to the plea agreement, from at least 2005 through the end of 2009, Eraso-Mejia conspired with others to smuggle cocaine out of Colombia, by sea, knowing and intending that the cocaine would be ultimately imported into and distributed in the United States. Eraso-Mejia and others invested in cocaine smuggling operations and were part-owners of the cocaine.
For example, in July 2009, Eraso-Mejia was a partial owner of cocaine being smuggled from Colombia's Pacific coast, onboard a stateless self-propelled semi-submersible ("SPSS") vessel. All of the cocaine was intended for importation, by way of Mexico, for subsequent distribution in the United States. After traveling on the high seas and in international waters, co-conspirators onboard the SPSS vessel successfully off loaded the cocaine to co-conspirators embarked in go-fast vessels (GFVs) off the coast of Mexico. Thereafter, the Mexican Navy interdicted the GFVs, and seized 7,507 kilograms of cocaine.
This case was investigated by the Panama Express South Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, comprised of agents and analysts from the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The case is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Bureau of Prisons Inmate Sent Back to Prison for Indecent Exposure by Sexually Gratifying HimselfRead the Press Release
DENVER – Todd A. Lawton, age 31, an inmate who was housed at the United States Penitentiary (USP) in Florence, Colorado, at the time of his crime, was sentenced on Monday, January 27, 2014 by U.S. District Court Judge Philip A. Brimmer to serve one year and a day in federal prison for indecent exposure, the Department of Justice announced. Lawton will also have to register as a sex offender. The defendant appeared at the sentencing hearing in the custody of the United States Marshal. He was remanded at the conclusion of the sentencing hearing.
Lawton was indicted by a federal grand jury in Denver on June 3, 2013. He pled guilty to two counts of indecent exposure on October 16, 2013. He was sentenced on January 27, 2014. According to the stipulated facts contained in the plea agreement, between May 21, 2012 and January 22, 2013, Lawton on multiple occasions would stand on the toilet or another object in his cell in order to make his groin area visible through the cell door window to those near his cell. Then he would sexually gratify himself when female medical or food service staff approached. He was ordered many times to cease his lewd behavior, but failed to comply with correctional staff orders.
The defendant was being incarcerated in USP Florence for various crimes while incarcerated: federal inmate possessing contraband -- weapon and assault on a federal officer. He was first incarcerated for distribution of cocaine, robbery and carrying a pistol without a license, all out of the District of Columbia. Lawton was released from the Federal Bureau of Prison custody on July 18, 2013, but was picked up by U.S. Marshals Deputies to appear before a U.S. Magistrate Judge on the indecent exposure charge. Lawton was later ordered to be detained without bond pending a resolution of his case.
“This case involved calculated acts of sexual intimidation aimed at female medical and food service staff at the United States Penitentiary at Florence,” said U.S. Attorney John Walsh. “This case and sentence reflects our commitment to protect Prison staff – and also other prison inmates – from sexual abuse of whatever form.”
This case was investigated by the Federal Bureau of Prisons Special Investigative Services Department at USP Florence.
Lawton was prosecuted by Assistant U.S. Attorney David Tonini.
Bettendorf Men Indicted in Public Corruption Case and Additional Prosecutions UnsealedRead the Press Release
DAVENPORT, IA B On January 28, 2014, an indictment charging Robert L. Budd, Jr. (Budd), formerly of Brown Traffic Products, Inc. (Brown Traffic) of Davenport, Iowa, and Robert W. Webster (Webster), a former city electrician for the city of Bettendorf, Iowa, was unsealed, announced United States Attorney Nicholas A. Klinefeldt. The thirteen-count indictment charges Budd and Webster with conspiracy and bribery in connection with Webster’s work at the city of Bettendorf. The city of Bettendorf, Iowa is a government agency that has received funds under federal programs involving grants, contracts, or other forms of federal assistance in excess of $10,000 each year over the past several years and has conducted transactions with Brown Traffic in amounts exceeding $5,000.
The Budd and Webster indictment alleges that Webster received money, airfare to such places as Florida, Texas, and Nevada, tickets for race car events, and other forms of entertainment, lodging expenses for hotels and resorts in such places as Florida, Texas, Nevada, Kansas, and Illinois, meals, drinks, cigars, and golf and resort fees.
The court also unsealed two other files involving David Schiltz (Schiltz), the former CEO of Brown Traffic, and Daniel Fuchs (Fuchs), a former high-level manager and sales representative of Brown Traffic. Schiltz and Fuchs have entered guilty pleas and agreed to cooperate with the Government’s investigation. Within their plea agreements, both men admitted they conspired with Budd to corruptly give, and offer to give, things of value to Webster, and others, acting with the intent to influence and reward Webster in connection with transactions between the city of Bettendorf and Brown Traffic for traffic control devices and services.
Budd has entered a plea of not guilty and a trial is presently scheduled for April 7, 2014. Webster is expected to appear in court later this week.
The public is reminded that an indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Attorney General Holder Appoints Eight New U.S. Attorneys to Advisory CommitteeRead the Press Release
WASHINGTON – Attorney General Eric Holder today announced the appointment of the following eight U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee (AGAC): André Birotte Jr., Central District of California; Thomas E. Delahanty II, District of Maine; Zachary T. Fardon, Northern District of Illinois; Wifredo A. Ferrer, Southern District of Florida; Kerry B. Harvey, Eastern District of Kentucky; Zane D. Memeger, Eastern District of Pennsylvania; Tim Q. Purdon, District of North Dakota; and Sarah R. Saldaña, Northern District of Texas.
“In the face of daunting staff and resource constraints, our U.S. Attorneys’ Offices are performing tremendous work in their districts across the country, standing on the front lines of federal law enforcement efforts,” said Attorney General Holder. “Each of the U.S. Attorneys who serves on the Attorney General’s Advisory Committee plays an indispensable role in guiding the Justice Department’s work as we confront a range of challenging issues and opportunities. I welcome the eight new members of the AGAC I’ve chosen to appoint today, and look forward to working closely with them to take fresh, and smart, approaches to fighting crime and achieving justice across the nation.”
The Attorney General also thanked the following U.S. Attorneys who have completed their two-year terms and are rotating off the committee: Laura E. Duffy, Southern District of California; Timothy J. Heaphy, Western District of Virginia; Brendan V. Johnson, District of South Dakota; Pamela C. Marsh, Northern District of Florida; Carmen M. Ortiz, District of Massachusetts; Robert L. Pitman, Western District of Texas; James Santelle, Eastern District of Wisconsin; Carter M. Stewart, Southern District of Ohio.
Chaired by U.S Attorney for the Eastern District of New York Loretta E. Lynch, the AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.
A brief bio on each new appointee is below:
André Birotte Jr. was presidentially appointed and sworn in as the U.S. Attorney for the Central District of California on March 4, 2010. He previously served as the Inspector General for the Los Angeles Police Commission from 2003 to 2010 and as an Assistant Inspector General from 2001 to 2003. From 1995 to 1999, Birotte served as an Assistant United States Attorney for the Central District of California. He started his legal career as a Deputy Public Defender in the Los Angeles County Public Defender’s Office from 1991 to 1995. Birotte serves as Co-Chair of the AGAC’s Terrorism/National Security Subcommittee, and as a member of the Border and Immigration Law Enforcement Subcommittee, Civil Rights Subcommittee, Cyber/Intellectual Property Subcommittee, Violent and Organized Crime Subcommittee and White Collar/Fraud Subcommittee.
Thomas E. Delahanty II was presidentially appointed and sworn in as the U.S. Attorney for the District of Maine on July 1, 2010. Prior to his appointment, he served as a Justice for the Maine Superior Court for more than 26 years, and as Chief Justice from 1990 until 1995. From 1981 until 1983, he was a partner in the firm Delahanty & Longley. He previously served as the U.S. Attorney for the District of Maine from 1980 to 1981. Prior to this, Delahanty served as a District Attorney for Prosecutorial District 3 for Androscoggin, Franklin and Oxford Counties (1975 to 1980); as a County Attorney and Assistant County Attorney with the Androscoggin County Attorney’s Office (1971 to 1975); and as an associate at Marshall, Raymond & Beliveau (1970 to 1974). Delahanty serves as Chair of the AGAC’s Controlled Substances and Asset Forfeiture Working Group, as a member of the AGAC’s Medical Marijuana Working Group and the AGAC’s Border and Immigration Law Enforcement Subcommittee, and as a participant in the department’s Arab American and Muslim Outreach Program.
Zachary T. Fardon was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Illinois on Oct. 23, 2013. Prior to his appointment, Fardon was a partner at the law firm of Latham & Watkins where he served as the Chair of the Litigation Department in their Chicago office. Previously, Fardon served as the First Assistant United States Attorney in the Middle District of Tennessee from 2003 to 2006 and as an Assistant United States Attorney in the Northern District of Illinois from 1997 to 2003. He began his legal career working as an Assistant Public Defender in the Nashville Metropolitan Public Defender’s Office from 1996 to 1997 and as an associate at the law firm of King & Spalding from 1992 to 1996.
Wifredo A. Ferrer was presidentially appointed and sworn in as the U.S. Attorney for the Southern District of Florida on May 4, 2010. Ferrer previously served as an Assistant County Attorney and as Chief of the Federal Litigation Section in the Miami-Dade County’s Attorney’s Office from 2006 to 2010. From 2000 until 2006, he was an Assistant United States Attorney in the United States Attorney’s Office in the Southern District of Florida. While at the U.S. Attorney's Office, he served in the Public Integrity and National Security Section, the Economic Crimes Section, the Major Crimes Section, and the Appellate Division of the Office. Prior to that, he had been Counsel and Deputy Chief of Staff to the United States Attorney General from 1995 to 2000. From 1994 to 1995, Ferrer was a White House Fellow and Special Assistant to the United States Secretary of Housing and Urban Development. From 1991 to 1994, he had been a Litigation Associate with Steel Hector & Davis in Miami, Florida. From 1990 until 1991, Ferrer was a law clerk to then- District (now 11th Circuit) Judge Stanley Marcus. Ferrer serves as Vice Chair of the AGAC’s Controlled Substances and Asset Forfeiture Working Group.
Kerry B. Harvey was presidentially appointed and sworn in as the U.S. Attorney for the Eastern District of Kentucky on May 14, 2010. Harvey previously served as the General Counsel and Acting Inspector General of the Kentucky Cabinet for Health and Family Services from 2008 to 2010. He was a partner at Owen, Harvey, and Carter from 1991 to 2008; at Prince, Harvey, Brien & Carter from 1986 to 1991; and at Prince & Harvey from 1984 to 1986. Mr. Harvey worked as the Marshall County, Kentucky, Attorney from 1986 to 1994. He began his legal career as an associate at Brown, Todd & Heyburn from 1982 to 1984. Harvey serves as a member of the AGAC’s Health Care Fraud Working Group.
Zane David Memeger was presidentially appointed and sworn in as the U.S. Attorney for the Eastern District of Pennsylvania on May 10, 2010. Prior to his appointment, Memeger was a Partner at Morgan, Lewis & Bockius, LLP from 2006 to 2010. Previously, Memeger had served as an Assistant United States Attorney in the United States Attorney’s Office for the Eastern District of Pennsylvania from 1995 until 2006. From 1991 until 1995, Memeger was an Associate at Morgan, Lewis & Bockius, LLP. Memeger serves as a member of the AGAC’s Cyber/Intellectual Property Subcommittee, LECC/Victim/Community Issues Subcommittee, Violent and Organized Crime Subcommittee, White Collar/Fraud Subcommittee and Health Care Fraud Working Group.
Timothy Q. Purdon was presidentially appointed and sworn in as the U.S. Attorney for the District of North Dakota on August 24, 2010. Prior to his appointment, Purdon was a partner at Vogel Law Firm from 2005 to 2010; prior to his promotion he also served as an associate at the firm. From 1996 until 2001, Purdon worked as an associate at Dickson & Purdon, and he became a partner in the firm in 2001. From 1995 through 1996, he was an associate at Olson & Cichy. Purdon has also served as a law clerk for the Honorable Bruce M. Van Sickle of the United States District Court for the District of North Dakota. Purdon serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Native American Issues Subcommittee, Environmental Issues Working Group, and Local Government Coordination Working Group.
Sarah R. Saldaña was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Texas on Sept. 29, 2011. She previously served as an Assistant United States Attorney for the Northern District of Texas since 2004, serving as Deputy Criminal Chief for Fraud and Public Corruption since 2009. Ms. Saldaña was an attorney for Baker Botts, L.L.P, from 1987 to 1998, and Haynes Boone from 1985 to 1987. Following law school, she served as a judicial clerk to the Honorable Barefoot Sanders, U.S. District Court Judge for the Northern District of Texas, from 1984 to 1985. Saldaña serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Cyber/Intellectual Property Subcommittee, LECC/Victim/Community Issues Subcommittee and White Collar/Fraud Subcommittee.
The full AGAC membership is listed below:
Loretta E. Lynch, United States Attorney, Eastern District of New York, Chair
Sally Quillian Yates, United States Attorney, Northern District of Georgia, Vice Chair
David Barlow, United States Attorney, District of Utah
Andre Birotte Jr. – Central District of California
Thomas E. Delahanty II – District of Maine
Zachary T. Fardon – Northern District of Illinois
Wifredo A. Ferrer – Southern District of Florida
Richard S. Hartunian, United States Attorney, Northern District of New York
Kerry B. Harvey – Eastern District of Kentucky
Barbara L. McQuade, United States Attorney, Eastern District of Michigan
Zane D. Memeger – Eastern District of Pennsylvania
Wendy J. Olson, United States Attorney, District of Idaho
Timothy Q. Purdon – District of North Dakota
Sarah R. Saldan͂a – Northern District of Texas
Ronald W. Sharpe, United States Attorney, District of the Virgin Islands
Anne Tompkins, United States Attorney, Western District of North Carolina
Ronald C. Machen, United States Attorney, District of Columbia, ex officio
Daniel Bella, Criminal Chief, Northern District of Indiana, ex officio
Suzanne Bauknight, Civil Chief, Eastern District of Tennessee, ex officio
Robert Zauzmer, Appellate Chief, Eastern District of Pennsylvania, ex officioA 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.
10th Street Member Sentenced on RICO ConspiracyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Melvin Medina, 29, of Buffalo, N.Y., who was convicted of Racketeering Influenced Corrupt Organizations (RICO) Conspiracy, was sentenced to 78 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant was a member of the 10th Street Gang. Between 2000 and 2010, Medina possessed firearms and sold crack cocaine and marijuana in the territory controlled by the 10th Street Gang as a part of his participation in the gang's activities.
The defendant is among 44 10th Street Gang members and associates charged in this case. A total of 28 have been convicted.
The sentencing is the culmination of an investigation on the part of Investigators of the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commission Daniel Derenda, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
28 January 2014
“Ho-Hum Bandit” Pleads Guilty to the Not so Ho-Hum Total of Seven Bank RobberiesRead the Press Release
United States Attorney Laura E. Duffy announced that Adam Lynch pled guilty this afternoon in federal court in San Diego to seven counts of bank robbery. Lynch, dubbed the “Ho Hum Bandit” for his reportedly nonchalant manner in robbing banks, committed a string of bank robberies in San Diego beginning in February 2010. Lynch entered his guilty plea before U.S. Magistrate Judge David H. Bartick.
As described in his plea agreement, Lynch committed his first bank robbery on February 27, 2010, robbing a US Bank in San Diego. He thereafter went on a spree of robberies in the area, committing his seventh on June 5, 2010. He robbed the same bank branch twice within the space of a week. Typically, Lynch would commit the robbery by walking up to the counter, passing a note to the teller, identifying himself as being armed, and demanding cash. He did not physically injure any of the bank personnel.
Lynch’s robberies in San Diego were the start, but not the end, of his career. On May 6, 2013, in Denver, Lynch was convicted of four counts of bank robbery, based on robberies he committed in the Denver area in August 2010, December 2010, and March 2011; as well as a robbery he committed in Cheyenne, Wyoming, in November 2010. For those offenses, on April 19, 2013, Lynch was sentenced by a federal judge to 64 months in prison.
Lynch has been in custody since his arrest on April 21, 2011, and is set for sentencing on April 28, 2014 before U.S. District Judge Roger T. Benitez.
DEFENDANT Case Number: 14-CR-0182-BENAdam Lynch
SUMMARY OF CHARGESBank robbery in violation of Title 18, United States Code, Section 2113(a) - Maximum penalties per count: 20 years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
INVESTIGATING AGENCYFederal Bureau of Investigation
West Tennessee Round-Up Nets 14 Suspects on Methamphetamine, Marijuana, and Gun ChargesRead the Press Release
Jackson, TN – Law enforcement officials from at least 10 federal, state, and local agencies participated in today’s round-up of individuals indicted for federal drug trafficking violations, announced United States Attorney Edward L. Stanton III and Special Agent in Charge of the Memphis Division of the FBI A. Todd McCall.
The indictments were returned by a federal grand jury in Jackson on January 21, 2014, but remained under seal until today’s arrests. The charges in the indictments stem from the illegal activity of selling, manufacturing, and distributing methamphetamine and marijuana, as well as possessing firearms in furtherance of a drug trafficking crime.
The suspects arrested during the operation were: • Richard Alley, 40, of Hardin County
• Scotty Alley, 41, of Wayne County
• Sherill Douglas, 43, of Henderson County
• Steven Flowers, 41, of Henderson County
• Brandon Frazier, 35, of Wayne County
• Sherry Gilbert, 36, of Henderson County
• Bryant Hart, 43, of Decatur County
• Carol Ann Lee, 38, of Wayne County
• Jamie Pearson, 34, of Henderson County
• Kelvin Pettigrew, 38, of Henderson County
• Bartee Rich, 36, of Hardin County
• Diana Williams, 42, of Hardin County
• Emanuel Lopez, 24, of Tarrant County (Texas)
• Francisco Lopez, 28, (Already In Federal Custody)
During the course of this investigation, law enforcement officials have seized illicit narcotics, including at least 550 grams of methamphetamine, U.S. currency, drug paraphernalia, and at least 70 firearms, which included both handguns and long guns.
Law enforcement agencies participating in today’s round-up include the FBI, the United States Marshals Service, the Tennessee Bureau of Investigation, the 24th Judicial District Drug Task Force, the Tennessee Highway Patrol, the Dyer County Sheriff’s Department, Dyersburg Police Department, Henderson County Sheriff’s Department, Jackson Police Department, Lexington Police Department, and Wayne County Sheriff’s Department.
The case was investigated by members of the FBI’s Memphis Safe Streets Task Force (ME SSTF), the Tennessee Bureau of Investigation, and the 24th Judicial District Drug Task Force. The ME SSTF is a FBI sponsored task force comprised of agents from the FBI Memphis Division’s Jackson Resident Agency, the Dyer County Sheriff’s Department, the Dyersburg Police Department, the Jackson Police Department, and the Lexington Police Department. The ME SSTF focuses on bringing together the combined resources of the FBI and other federal, state, and local law enforcement partners to address violent criminal threats. This investigation is being prosecuted by Special Assistant United States Attorney Beth Hall on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Waterville Woman Charged with Bank FraudRead the Press Release
A Waterville woman was charged with bank fraud after she allegedly cashed or attempted to cash approximately 20 stolen checks, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Corisa J. Tolford was charged via criminal information. The charges relate to bank fraud beginning approximately February 7, 2011 and continuing through April 1, 2013.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Postal, Cleveland. The case is being handled by Assistant United States Attorney Ava Dustin.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Virginia Beach Man Pleads Guilty to Six Armed Bank RobberiesRead the Press Release
RICHMOND, Va. – Carlos McClammy, 20, of Virginia Beach, Va., pleaded guilty today to conspiracy to obstruct, delay and affect commerce by robbery; aiding and abetting bank robbery; brandishing a firearm in furtherance of a crime of violence; and discharging a firearm in furtherance of a crime of violence.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Bruce Jones, Northampton County Commonwealth Attorney; William W. Davenport, Chesterfield County Commonwealth Attorney; Lyndia P. Ramsey, Sussex County Commonwealth Attorney; and Harvey L. Bryant, City of Virginia Beach Commonwealth Attorney, made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.
McClammy was charged on January 16, 2014, in a Criminal Information with conspiracy to obstruct, delay and affect commerce by robbery; aiding and abetting bank robbery; brandishing a firearm in furtherance of a crime of violence; and discharging a firearm in furtherance of a crime of violence. He faces a maximum penalty of life imprisonment when he is sentenced on April 29, 2014.
In a statement of facts filed with his plea agreement, McClammy admitted to participating in six armed bank robberies in Virginia. These include the March 13, 2012 robbery of the SunTrust Bank, located in Nassawadox, Virginia; the March 27, 2012 robbery of the Bank of Southside Virginia, located in Jarratt, Virginia; the April 3, 2012 robbery of the Central Virginia Bank, located in Midlothian, Virginia; the April 19, 2012 robbery of the BB&T Bank, located in Wakefield, Virginia; the April 23, 2012 robbery of the Bank of Southside Virginia, located in Stony Creek, Virginia; and the July 10, 2012 robbery of the Chartway Federal Credit Union, located in Virginia Beach, Virginia. During the July 20, 2012 robbery of the Chartway Federal Credit Union in Virginia Beach, McClammy discharged his firearm while fleeing the scene of the bank.
This case was investigated by the Federal Bureau of Investigation, the Northampton Sheriff’s Office, the Chesterfield County Police Department, the Sussex County Sheriff’s Office, and the City of Virginia Beach Police Department. Assistant United States Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the 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.Vice Lord Leader Sentenced to 28 Years in PrisonRead the Press Release
Sterling Rivers a/k/a “Little Real”26, of Lebanon, Tennessee, was sentenced yesterday in U.S. District Court to 28 years in prison for conspiring to distribute large quantities of crack cocaine and cocaine, as part of his involvement in a criminal street gang called the Unknown Vice Lords, announced David Rivera, U. S. Attorney for the Middle District of Tennessee.
Rivers was indicted with 16 other individuals in September 2011 following a nearly two year investigation into a national street gang, the Vice Lords, operating in Wilson and Putnam County, Tennessee and beyond. Rivers fled following his indictment and was arrested in October 2011 as a fugitive in Texas. Rivers was convicted following a trial in September 2013 in which he represented himself.“This sentence reaffirms that drug trafficking and organized crime will result in significant prison sentences,” said U.S. Attorney David Rivera. “This and other recent sentences of gang members should send a clear and convincing message that violent gang activity in this district will be vigorously pursued by the U.S. Attorney’s Office and our law enforcement partners.”
The convictions in this case followed a two-week trial, during which Rivers represented himself. Proof at trial established that Rivers was engaged in organizing the Vice Lords Gang throughout the state of Tennessee and had been involved in an array of violent crime, including the robbery of another drug dealer and the shooting of another individual.
Sixteen other defendants were also charged in connection with this investigation and all have been convicted.
This investigation was conducted by the FBI, the Lebanon Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Tennessee Bureau of Investigation and the Tennessee Highway Patrol. This case was prosecuted by Assistant United States Attorneys Braden H. Boucek and Brent Hannafan.
U.S. Attorney Statement on Heroin Overdose DeathsRead the Press Release
PITTSBURGH - David J. Hickton, United States Attorney for the Western District of Pennsylvania, issued the following statement today regarding multiple heroin overdose deaths occurring in Western Pennsylvania over the past ten days:
“The recent dramatic increase in the number of heroin overdoses in our region has quickly become the most pressing crime problem for law enforcement. The United States Attorney’s Office is working closely with our federal, state and local partners to uncover the source of this highly dangerous drug, and to prosecute those responsible for causing these tragic deaths. We will devote all necessary resources to stop the distribution in our area of this most lethal combination, a mix of heroin and fentanyl.
“We urge persons who are addicted, and those of you with loved ones who are addicted, to use this outbreak as a reason to seek treatment. Ingesting this form of heroin obviously carries a far greater risk than is typical, although overdoses are common with any form of heroin. We also ask for cooperation from the community in rooting out the source of these distributions. Anyone with information should contact the DEA at 412-287-3829, or send a text to Tip411 (847411) and the keyword “PGHOD” followed by the tip information, or call their local police department.”
Two Detained on Federal Drug Trafficking Charges, Rhode Island FBI Safe Streets Task Force Seizes Two Kilos of CocaineRead the Press Release
PROVIDENCE, R.I. – – Jose E. Lopez Mauricio, aka “Flaco,” 28, of Warwick, R.I., and Jorge Guzman-Rivera, 28, of New Bedford, Mass., have been ordered detained in federal custody on drug trafficking charges following their arrest and the seizure of two kilos of cocaine by the Rhode Island FBI Safe Street Task Force, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
According to an affidavit in support of criminal complaints and a search arrest warrant in this matter, in February 2013, the FBI Safe Streets Task Force began an investigation into the alleged drug trafficking activities of Jose Mauricio. According to the affidavit, between February 2013 and January 2014, an individual cooperating with law enforcement, and while under the surveillance of law enforcement, allegedly affected five drug transactions for varying amounts of heroin and crack cocaine. It is also alleged that in November 2013, while under the surveillance of law enforcement, the individual allegedly affected the purchase of two firearms from Mauricio.
According to the affidavit, it is alleged that in January 2014, Mauricio offered to sell two kilos of cocaine to the individual. The two spoke via telephone on numerous occasions and met in person to allegedly arrange for the sale of the two kilos of cocaine for $70,000. During at least one meeting which occurred outside of a Providence residence, an individual was observed by law enforcement watching the meeting from inside the residence, from a third floor window.
According to the affidavit, when an undercover FBI agent and a Providence Police Department Narcotics Unit undercover officer, posing as associates of the cooperating witness, returned to the residence to allegedly purchase the two kilos of cocaine Mauricio exited the building to meet them. As Mauricio exited the building he was detained by FBI Safe Streets Task Force agents. At the same time, agents entered a rear door of the building and made entry into the third floor apartment. Inside the apartment agents encountered and detained Jorge Guzman-Rivera, the individual observed by law enforcement watching from the window. Agents also discovered and seized two kilos of cocaine.
Jose Mauricio has been detained on one count each of possession with the intent to distribute heroin and possession with the intent to distribute 28 grams or more of cocaine. Jorge Guzman-Rivera has been detained on one count each of conspiracy to possess with the intent to distribute cocaine and possession with the intent to distribute cocaine.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.The R.I. FBI Safe Streets Task Force, comprised of law enforcement agents and officers the FBI, Rhode Island State Police, and the Providence, Cranston and Woonsocket Police Departments, enhances the effectiveness of federal, state and local law enforcement resources through a well-coordinated initiative seeking the most effective avenues to investigate, prosecute and incarcerate dangerous offenders.
The mission of the FBI Safe Streets Task Force is to identify and target for prosecution criminal enterprise groups responsible for drug trafficking, money laundering, alien smuggling, crimes of violence such as murder and aggravated assault, robbery, and violent street gangs, as well as to intensely focus on the apprehension of dangerous fugitives where there is or may be a federal investigative interest.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Three Armed Robbers Sentenced in Federal CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for Guam, announced that DWAYNE J. SAN NICOLAS, BALBINO K. LEON GUERRERO and DEDRICK J. AGUON, were sentenced today by Chief Judge Frances Tydingco-Gatewood in the District Court of Guam.
DWAYNE J. SAN NICOLAS was sentenced to serve 138 months incarceration. DEDRICK J. AGUON was sentenced to serve 117 months incarceration. BALBINO K. LEON GUERRERO was sentenced to serve 91 months incarceration. Each defendant was placed on a five-year term of supervised release, was ordered to perform community service, and ordered to pay $856.49 in restitution to New Nana’s Market.
All three defendants pleaded guilty on July 2012 to Hobbs Act Robbery in violation of Title 18 U.S.C. § 1951(a), and to the Discharging or Brandishing of a Firearm During a Crime of Violence, in violation of 18 U.S.C. § 924(c)(1)(a).
The defendants admitted to the following facts. On September 8, 2011, AGUON provided LEON GUERRERO and SAN NICOLAS with a .22 caliber firearm and a .9 mm Beretta. AGUON then drove SAN NICOLAS and LEON GUERRERO to New Nana’s Mart in Agana Heights. LEON GUERRERO and SAN NICOLAS entered New Nana’s Mart and pointed the firearms directly at the cashier and demanded money. SAN NICOLAS chambered a round and fired off a shot shattering a glass door on a cooler. The cashier handed over approximately $700 in cash to LEON GUERRERO and SAN NICOLAS. The men then fled New Nana’s Mart, stopping only to grab a 12-pack of beer. AGUON acted as the getaway driver. The robbery was captured on video surveillance.
U.S. Attorney Limtiaco states, “The use of firearms to commit violent crimes place innocent civilians and the community at great risk of harm. People who use firearms to commit crimes of violence will face aggressive prosecution and will receive hard time.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood (PSN) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in violent crime, drug distribution and gang involvement.
U.S. Attorney Limtiaco commended the investigative efforts of the Guam Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agents and Task Force Officers.Tax Preparer Sentenced for Falsifying Returns to Increase Client RefundsRead the Press Release
PHILADELPHIA - Shawn Sisco, 49, of Philadelphia, PA, was sentenced today to 12 months and one day in prison for preparing false federal income tax returns. Sisco, who owned Sisco Accounting, a home-based tax preparation business, falsified the itemized deductions on her clients' returns in order to obtain refunds in amounts larger than the filers would have otherwise received. A federal jury found her guilty after a 3-day trial. Sisco, in a statement to federal investigators, claimed that she prepared between 250 and 300 federal income tax returns, annually, and charged a fee of between $150 and $250 per return. Her scheme defrauded the IRS of approximately $163,000. Some of Sisco’s clients have been audited as a result of the fraud and have entered into payment agreements with the IRS.
In addition to the prison term, U.S. District Court Judge Petrese B. Tucker ordered Sisco to pay a fine in the amount of $10,000, a $2,800 special assessment, and ordered one year of supervised release.
According to the testimony of trial witnesses, Sisco prepared tax returns which were false because the returns claimed that her clients had made substantial charitable contributions when many of her clients were unaware of the fact that Sisco had included charitable contributions. The contributions that Sisco recorded were as high as $15,000 for filers who earned incomes between $40,000 and $103,000 per year. The false returns also claimed large miscellaneous deductions, and job-related expense deductions which the witnesses testified they had no knowledge of. The bogus expense deductions included: medical and dental expenses; mortgage interest; cell phone expenses; property tax expenses; clothing and shoe expenses; laundry expenses; and maintenance expense.
The case was investigated by the Internal Revenue Service Criminal Investigations. The case was prosecuted by Assistant United States Attorney Floyd J. Miller.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Strength and Conditioning Coach Admits Role in Insurance Billing SchemeRead the Press Release
TRENTON, N.J. – A partner in Source Institute for Human Performance, a Princeton, N.J., provider of exercise coaching services to independent high schools, pleaded guilty today to defrauding insurance companies by falsely claiming that Source gave clients physical therapy, U.S. Attorney Paul J. Fishman announced.
David Nogaki, 42, of North Brunswick, N.J., pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Nogaki was a partner in Source Institute for Human Performance, which provided exercise, strength, conditioning and performance coaching services to students, faculty and staff at certain independent high schools in New Jersey. Nogaki and his conspirators at Source developed a scheme to enrich themselves by billing their personal training sessions as physical therapy services covered by health insurance – even though no one at Source was a physical therapist.
Nogaki and his conspirators would ask clients for their health insurance information and then lie to the insurance companies, indicating Source provided physical therapy. Some clients came to Source with a doctor’s prescription for physical therapy, and Source would treat those individuals under the prescription and then bill insurers. For other clients who had never seen a doctor, Nogaki made up his own diagnosis and then billed insurers as if he had provided physical therapy.
Nogaki admitted submitting claims to AmeriHealth, Aetna, Horizon Blue Cross Blue Shield of New Jersey and United Healthcare. Source received over $200,000 in fraudulent insurance payments from the scheme.
Nogaki faces a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss caused by his offense. Sentencing is currently scheduled for May 5, 2014.
U.S. Attorney Fishman credited agents of the FBI’s Trenton Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
14-032Defense counsel: Roberto Cuan Esq., Teaneck, N.J.
Nogaki Information
Statements Regarding the Sentencing of Eric and Ryan JensenRead the Press Release
DENVER -- Eric and Ryan Jensen, owners of Jensen Farms, were sentenced this morning by U.S. Magistrate Judge Michael E. Hegarty to serve 5 years’ probation, with the first 6 months in home detention. Each defendant was also sentenced to 100 hours of community service. Finally, the Jensen brothers were each ordered to pay restitution totaling $150,000, or $25,000 per count for each of the six counts charged, consecutive, with the money going to the victims of their crime.
STATEMENT FROM U.S. ATTORNEY JOHN WALSH
“No sentence of incarceration, restitution or financial penalty can undo the tragic damage done as a result of the contamination at Jensen Farms. Today's sentence serves as a powerful reminder of farmers’ legal and moral responsibility for ensuring their product is safe. Because of the Jensen Farms case and this prosecution, changes have been made regarding how fruit is processed and transported across the country. The prosecution recommended probation in this case because of the defendants' unique cooperation, including their willingness to meet with Congress and their willingness to meet with and be confronted by the victims of their misconduct. They have committed to continue their cooperation, and have publicly and privately expressed sincere remorse. In short, they have done everything we have asked of them to mitigate the damage done. I would like to thank Assistant U.S. Attorney Jaime Peña and Special Agent Dan Burke of the FDA's Office of Criminal Investigation for their tireless efforts to bring this case to resolution, and to help the victims and their families understand what has happened, how it happened, and that everything possible has been done to reduce the chances of it ever happening again.”
STATEMENT FROM FDA OFFICE OF CRIMINAL INVESTIGATION ACTING SPECIAL AGENT IN CHARGE SPENCER MORRISON
“We sincerely hope that today’s sentencing will provide some small measure of justice to the victims of this awful tragedy. FDA will continue to appropriately utilize its resources to ensure the integrity of our nation’s food supply. “
NOTE: Spencer Morrison is the Acting Special Agent in Charge of the FDA’s Office of Criminal Investigation’s Kansas City Field Office
Six in Custody in Houston Armored Car Robbery CasesRead the Press Release
HOUSTON – Seven men from Houston have been charged in two separate and unrelated cases involving the robbery or attempted robbery of armored cars operating in and around Houston, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Stephen L. Morris of the FBI.
“The arrests in these cases underscore our commitment to vigorously prosecuting in federal court those that perpetrate violent robberies of armored cars and clearly endanger innocent lives,” said Magidson.
Dezmond Lacraig Edwards, 24, and Allen Bernard Roundtree, 27, were taken into custody late yesterday without incident. They are charged along with James Van-Gerald Johnson, 30, who was previously arrested, with robbing a Loomis armored car on Dec. 6, 2013, at the University of Houston Student Center. During the course of the arrests, authorities recovered several firearms, including three assault rifles, narcotics, cash and other items. They were charged in a sealed indictment returned Jan. 23, 2014, and unsealed this morning as they made their initial appearance before U.S. Magistrate Judge Frances Stacy. They have been ordered held in custody pending a detention hearing set for Jan. 30, 2014, at 10:00 a.m.
Also charged is Ronald Dean Richards, 23, who is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000 or Crimestoppers at 713-222-TIPS. Crimestoppers will offer a reward up to $5000 for any information leading to his location and arrest. In addition, beginning today, Richards will be featured on Clear Channel Outdoor's Houston area digital billboards. Clear Channel Outdoor is donating the space as a public service to the community.
In the second, unrelated case, William Hendrick Williams, 27, Stephen Carter, 29, and Bobby Gray, 27, are charged for their involvement in the Oct. 7, 2013, attempted robbery of a Garda Cash Logistics armored truck at the Chase Bank at 19747 N. US 59 in Humble, Texas. Williams and Carter were taken into custody on Friday, Jan. 24, 2014, at which time they made their initial appearance. They are set to appear again in court before Judge Stacy today at 2:00 p.m. Gray is currently in state custody and is expected to appear on the federal charges Jan. 30, 2014.
“Our citizens shouldn’t have to worry about violent offenders opening fire at busy shopping centers or our university campuses. These violent robberies are putting guards and innocent by-standers in grave danger, and they will not be tolerated, said Morris. “The FBI will continue to work tirelessly with our law enforcement partners to ensure justice in every one of these cases.”
Loomis Armored US Inc. and Garda Cash Logistics, who operated the trucks during the alleged robbery and robbery attempt, maintain offices throughout the United States and were engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
On Dec. 6, 2013, Johnson, Richards and Roundtree allegedly drove to the University of Houston Student Center. Johnson, who was armed with a pistol, jumped out and forced the pregnant driver out of the Loomis truck, according to the allegations. The messenger, who was filling the ATM inside the student center, tried to stop Johnson and fired his service weapon. According to the indictment, his attempt was unsuccessful and Johnson was able to abscond with the vehicle which was loaded with money. Johnson, Richards and Roundtree allegedly used a stolen vehicle as their switch vehicle and then loaded all the cash they obtained into two more vehicles they had planted at a prearranged location across from the University of Houston Campus.
Johnson was apprehended as he was leaving town, at which time he had cash, a new car, jewelry and was also carrying a firearm matching the description of the one used during the robbery.
The four men are charged with conspiracy to interfere with commerce by robbery and with interference with commerce by robbery. In addition, Johnson was further charged with brandishing a firearm during a crime of violence.
In the second matter, Williams, Carter and Gray are charged with their involvement in the Oct. 7, 2013, attempted robbery of a Garda Cash Logistics armored truck. The indictment alleges Carter drove the others to the location where they all waited for the armored car to arrive. It is alleged that the guard, who was filling the ATM machine, retrieved money from the armored car, at which time Williams demanded money and shot him several times in the back. Gray allegedly attempted to retrieve the money, but both guards returned fire and the defendant’s fled. The guard was critically wounded, but is continuing to recover.
Williams, Carter and Gray are all charged with one count of conspiracy to interfere with commerce by robbery and one count of interference with commerce by robbery and aiding and abetting. Williams is also charged with discharging a firearm during the commission of a crime of violence.
The conspiracy charge and the convictions for interference with commerce by robbery both carry as possible punishment up to 20 years in prison as well as a possible $250,000 fine. Williams also faces at least an additional 10 years in federal prison and up to life for discharging a firearm during the commission of the Garda attempted robbery which must be served consecutively to the other terms imposed. For brandishing a firearm during the commission of the Loomis robbery, Johnson faces a seven-year consecutive term to any underlying sentence for the robbery offenses.
Both cases are being investigated by the FBI’s Bank Robbery Task Force, which includes members from the FBI, Houston Police Department and the Harris County Sheriff’s Office. Additional assistance was provided in the respective cases by University of Houston Police Department, Texas Rangers, Humble Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Customs and Border Protection, the Gulf Coast Regional Task Force and Crimestoppers. The Loomis and Garda armored cases are being prosecuted by Assistant United States Attorney Megan Paulson and Jennie Basile, respectively.
Several Individuals Arrested in “Operation Check-Mate”Read the Press Release
United States Attorney Peter F. Neronha, Attorney General Peter F. Kilmartin and Rhode Island State Police Colonel Steven G. O’Donnell announced today that several individuals were arrested over the past week as a result of “Operation Check-Mate,” a nearly two-year investigation into illegal and fraudulent check cashing schemes that allegedly cost banks in excess of $800,000.
Cooperating law enforcement agencies include the Warwick Police Department, the United States Secret Service, the Rhode Island State Police Gaming Enforcement Unit, Providence Police Department, Rhode Island Office of Attorney General Office and United States Attorney’s Office.
Arrest warrants were executed last Thursday for several individuals involved in the scheme. Five individuals were arrested and arraigned on Thursday in Providence County District Court. Four individuals were charged in federal criminal complaints, which were unsealed on Monday.
According to court documents, the fraudulent checks were allegedly negotiated in two aspects of a scheme - the “deposit/withdrawal” scheme and the “payroll check” scheme.
The “deposit/withdrawal” aspect of the scheme involved fraudulent checks, which were allegedly produced using non-existent business accounts (typically law firms, insurance companies, etc.). The fraudulent checks were then deposited into a legitimate bank account. After the fraudulent checks were deposited into the legitimate bank accounts, the monies were withdrawn from the bank accounts by the account holders, prior to the fraudulent check clearing or being identified as fraudulent.
The account holders allegedly participated in this because they were paid a part of the monies or given a “cut.” Often times, the account holders were unaware that illegal activity was occurring, as they were given a back-story for the activity. After the account holders received their cut, the remainder of the monies was allegedly divided throughout the participants in the scheme.
The “payroll check” aspect of the scheme involved fraudulent or counterfeit checks that were allegedly produced using actual businesses payroll accounts. At some point, payroll and business accounts were compromised and fraudulent checks were produced using the bank routing numbers and account numbers, drawing funds from these accounts. The fraudulent checks were produced to appear almost identical to the actual business checks, including the businesses markings/logos and authorized signature, and were produced with the name of the individual cashed the check.
The people who allegedly cashed the checks were recruited to participate in the scheme and were not employed by the business whose name was on the fraudulent check. The person who cashed the fraudulent check was given a cut with the reminder of the monies divided throughout the participants in the scheme.
The matter remains an open and ongoing investigation.
The following defendants were arrested and arraigned in Providence County District Court last Thursday:
42 Edgemere Avenue, Providence
Bail set at $100,000 with surety- Forgery & Counterfeiting (one count)
- Passing a Counterfeit Note (one count)
- Obtaining Money Under False Pretenses in Excess (“OMUFP”) of $1,500 (11 counts)
- Conspiracy (14 counts)
- Conspiracy to Commit an Offense Out of State (four counts)
- Criminal Solicitation (three counts)
- Attempted Larceny (one count
428 Prairie Street, Providence
Bail set at $100 with surety, held as a probation violator- Forgery & Counterfeiting (11) counts)
- Passing a Counterfeit Note (11 counts)
- OMUFP in Excess of $1,500 (one count)
- Criminal Solicitation (one count)
- Conspiracy (23 counts)
687 Broad Street, Providence
Bail set at $20,000 with surety- ATM Fraud (two counts)
- OMUFP in Excess of $1,500 (three counts)
- Conspiracy (11 counts)
- Criminal Solicitation (one count)
- Forgery & Counterfeiting (five counts)
- Passing a Counterfeit Note (five counts)
39 Hazel Street, Providence
Bail set at $20,000 with surety- OMUFP in Excess of $1,500 (five counts)
- Criminal Solicitation (two counts)
- Conspiracy (seven counts)
- Conspiracy to Commit and Offense Out of State (four counts)
1029 Atwells Avenue, Providence
Bail set at $25,000 with surety- Criminal Solicitation (three counts)
- OMUFP in Excess of $1,500 (three counts)
- Forgery & Counterfeiting (one count)
- ATM Fraud (one count)
- Passing a Counterfeit Note (one count)
- Conspiracy (six counts)
A state indictment, information, or complaint is merely an allegation. The U.S. Constitution guarantees that a defendant is presumed innocent unless and until proven guilty in a court of law.
In addition, four individuals have been charged by way of a federal criminal complaint in U.S. District Court with one count of conspiracy to commit bank fraud and one count of bank fraud.
- Jerry Zeah, 24, of Providence, made an initial appearance in U.S. District Court on January 22, 2014. He was ordered detained in federal custody.
- John Sumo, 27, of Providence made an initial appearance in federal court on Monday. He was ordered detained and then returned to state custody where he is being held as a bail violator.
- Federal arrest warrants have been issued for two others individuals, Garty Togbasi, 26, and Ernest Kar, 33, both of Providence.
A federal criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Scarborough Man Sentenced to 9 Years on Drug and Health Care Fraud ChargesRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Adam
Goodwin, 39, of Scarborough, Maine, was sentenced today in U.S. District Court by Judge
George Singal to 9 years in prison and 3 years of supervised release for conspiracy to distribute oxycodone and health care fraud. Goodwin pled guilty to the charges on July 29, 2013.According to Court records, between February 2010 and November 2010, Goodwin, Neal Laverriere, and others received over than 150 fraudulent oxycodone prescriptions for more than 13,000 pills from Dr. John Perry for no medical purpose. The prescriptions were filled at pharmacies in southern Maine and the oxycodone pills were sold. Goodwin used proceeds from these illegal sales to finance a nightclub venture in Westbrook that was to be known as
“Dreamers.” The illegal activities ended in November 2010 when Dr. Perry’s offices were searched. Dreamers never opened. Perry was sentenced on June 21, 2013 to 8 years in prison. Laverriere was sentenced on December 17, 2013 to 38 months in prison.This case was investigated by the United States Drug Enforcement Administration, the
United States Department of Health and Human Services – Office of Inspector General, the
Federal Bureau of Investigation, the Maine Drug Enforcement Agency, the Biddeford and
Westbrook Police Departments, and the State of Maine Health Care Crimes Unit.Sanford Missionary Sentenced to 58 Years for Production of Child PornographyRead the Press Release
Orlando, Florida –Chief U.S. District Judge Anne C. Conway today sentenced Warren Scott Kennell (45) to 58 years in federal prison for producing child pornography. Kennell previously pleaded guilty to two counts of production of child pornography. During today’s sentencing hearing, Judge Conway said that Kennell had abused his position of trust as a missionary.
According to court documents, on May 31, 2013, Kennell arrived at Orlando International Airport on inbound Copa Airlines Flight #446, from Panama City, Panama. After retrieving his luggage, he was escorted to the U.S. Customs and Border Protection (CBP) secondary inspection area.
After Kennell was seated, a Homeland Security Investigations (HSI) special agent searched Kennell's belongings and found three thumb drives and one external hard drive. These items were given to computer forensic agents from the Florida Department of Law Enforcement (FDLE) who were present to help with the search. The FDLE agents conducted a forensic preview of the thumb drives and the external hard drive. During an interview with law enforcement officials, Kennell said that he had worked as a missionary in Brazil for the New Tribes Mission, in Sanford, Florida. He also stated that he had been doing missionary work for several years. Kennell told the agents that he had never touched a child in a sexual and/or inappropriate manner, that he had never taken pornographic images of a child, and that there would be no child pornography found on any of the items in his luggage. After Kennell made these statements, FDLE computer forensic agents advised HSI agents that two images of child pornography had been found on Kennell's external hard drive.
When shown the first image, Kennell acknowledged that he was the man in the picture performing a sex act on the prepubescent female. He stated that he believed the girl was about 12 years old at the time the picture was taken. When shown a second image, Kennell admitted that he had taken that picture and that the girl in that image had also been about 12 years of age, at the time. Kennell further admitted that both images had been taken in Brazil while he was on the missionary assignment.
Kennell admitted that he had sexually abused children while in Brazil. He stated that he had taken pornographic pictures of the children, and that the pictures would be found on the external hard drive. The forensic examination of the external hard drive showed more than 940 images of child pornography. The child victims are members of an indigenous tribe in the Amazon, where Kennell was setting up a church. While setting up the church, Kennell befriended these victims and sexually abused them.
“Florida Department of Law Enforcement’s Cyber/High-Tech Computer Crime Squads work aggressively to take these dangerous perpetrators off our streets,” said FDLE Orlando Regional Operations Center Special Agent in Charge Danny Banks. “Working together with our federal and local law enforcement partners, we will do everything we can to protect the children victimized by child pornography and other crimes.”
“Kennell represents the worst kind of criminal – one that preys on innocent children,” said Shane Folden, deputy special agent in charge of Homeland Security Investigations Tampa, which oversees the agency’s Orlando office that investigated this case. “We cannot take back the abuse that these children endured, but this sentence ensures Kennell won’t have the opportunity to abuse another child.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Tanya Davis Wilson.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Saint Joseph London Hospital to Pay $16.5 Million to Settle False Claims Act Allegations of Unnecessary Heart ProceduresRead the Press Release
This Represents the Second Largest Federal Health Care Fraud Settlement in the Eastern District of Kentucky
LONDON, KY - Saint Joseph Health System, Inc., d/b/a Saint Joseph London Hospital (“Saint Joseph”) has agreed to pay the U.S. Government $16.5 million to resolve civil allegations that it submitted false or fraudulent claims to the Medicare and Kentucky Medicaid programs for a variety of medically unnecessary heart procedures.
“We all rely on health care providers to make treatment decisions based on clinical, not financial, considerations,” said U.S. Attorney Kerry B. Harvey. “The conduct alleged in this case violates that fundamental trust and squanders scarce public resources set aside for legitimate health care needs. We will use every available tool to protect our federal health care programs and the patients who they serve.”
According to the settlement agreement, the U.S. Government contends that from January 1, 2008 until August 31, 2011, several doctors working at the hospital performed numerous invasive cardiac procedures on Medicare and Medicaid patients who did not need them. The hospital then billed the federal programs for these unnecessary procedures, which include coronary stents, pacemakers, coronary artery bypass graft surgeries (“CABGS”), and diagnostic catheterizations. The claims seeking reimbursement allegedly violated the False Claims Act because under federal law, Medicare and Medicaid programs only reimburse health care providers for operations that are deemed medically necessary. Hospitals generally receive between $10,000 and $15,000 for medical procedures such as heart stents.
These doctors were affiliated with Cumberland Clinic, a physician group that entered an exclusive arrangement with Saint Joseph in 2008 to provide cardiology services to the hospital’s patients.
The settlement also resolves allegations that Saint Joseph violated the federal Stark Law and Anti-Kickback Statute by entering into sham management agreements with doctors at the Cumberland Clinic. These agreements served as an inducement for the doctors to refer patients to Saint Joseph. Therefore, the government contends that Medicare and Medicaid are not responsible to pay claims that resulted from this improper financial relationship between the doctors and the hospital.
In connection with this settlement, Saint Joseph has agreed to enter into a Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), which obligates the hospital to undertake substantial internal compliance reforms and commit to a third-party review of its claims to federal health care programs for the next five years.
"Cases such as this threaten both the health of patients and the financial integrity of the Medicare and Medicaid programs," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "This settlement is another example of the OIG’s commitment to protecting our beneficiaries and to recovering any money that has been improperly paid as a result of medically unnecessary procedures."
Today’s agreement represents the second largest health care fraud settlement in the Eastern District of Kentucky (district includes 67 counties).
The settlement stems in large part from a whistleblower complaint that was filed by three Lexington cardiologists pursuant to the qui tam provisions of the False Claims Act. That law allows the whistleblowers, also known as relators, to share in settlement proceeds that result from their bringing claims of fraud to the government’s attention. In this case, Doctors Michael Jones, Paula Hollingsworth, and Michael Rukavina will receive $2,458,810 of the $16.5 million settlement. Prior to the relators filing their complaint, Saint Joseph voluntarily disclosed to the government that one of its cardiologists, Dr. Sandesh Patil, had performed medically unnecessary coronary stents. Dr. Patil previously pleaded guilty to a federal health care fraud offense and was sentenced to 30 months imprisonment.
“Hospitals that place their financial interests above the well-being of their patients will be held accountable,” said Stuart Delery, Assistant Attorney General for the Civil Division of the United States Department of Justice. “The Department of Justice will not tolerate those who abuse the public health care programs to which we all contribute and on which we all depend.”
“The criminal investigation and civil settlements are excellent examples of the importance of whistleblower complaints,” said Perry K. Turner, Special Agent in Charge of the FBI in Kentucky. “This result would not be possible without the commitment of private citizens exposing this type of egregious fraud.”
The Commonwealth of Kentucky is also a party to the agreement and will receive approximately $365,851, which represents the state’s share of the government’s recovery of Medicaid funds. The Medicaid program is funded jointly by the federal and state governments.
"I applaud the hard work of my Medicaid Fraud Unit and all of the agencies involved in this case," said Kentucky Attorney General Jack Conway. "I am pleased that we have reached this settlement and are recovering thousands of dollars for a vital state program and for taxpayers."
While the settlement resolves claims against Saint Joseph London, the U.S. Government will intervene in the case initiated by the whistleblowers and continue litigating allegations of False Claims Act violations arising out of unnecessary cardiac procedures against most of the other defendants named in the qui tam. It will also continue a related criminal investigation.
The investigation was conducted by the FBI, HHS-OIG, Kentucky Office of Attorney General, Medicaid Fraud and Abuse Control Unit (“MFCU”), the Civil Frauds Section of the Department of Justice in Washington, D.C., and the U.S. Attorney’s Office.
settlement_agreement.pdf
Richmond Man Sentenced to 20 Years on Drug and Firearm ChargesRead the Press Release
RICHMOND, Va. – Kevin Lee Bennett, 49, of Richmond, Virginia, was sentenced today to 240 months in prison, followed by 2 years of supervised release for possession of a firearm in furtherance of a drug trafficking crime.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney.
Bennett pled guilty on October 27, 2014. According to court documents, on or about February 21, 2014, Richmond Police Department officers executed a search warrant at Bennett’s Richmond residence. They found in the kitchen approximately fifteen grams of cocaine base, two digital scales, and several plastic baggies of the type used to distribute crack cocaine. Additionally, the officers found three different firearms, one of which was in the bed with Bennett and his wife at the time the officers entered the residence. The other two were in the kitchen where officers found the narcotics. One of these two firearms was in a safe in the kitchen for which Bennett had the key. The officers also recovered $6,080 from the safe.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-CR-144
In a post-arrest interview, Bennett admitted selling narcotics over the prior two years. He also admitted he intended to sell the narcotics the officers found in his residence had accumulated the $6,080 that officers found in his safe over a period of time for selling narcotics.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Richmond III Field Office, and the Richmond Police Department Special Investigations Division-Narcotics Unit. Assistant U.S. Attorney Stephen E. Anthony is prosecuting the case on behalf of the United States.Tweet
Queens Foundry Owner Pleads Guilty in Manhattan Federal Court for $11 Million Scheme to Sell Fake Jasper Johns SculptureRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BRIAN RAMNARINE pled guilty yesterday to fraud charges arising from his attempt to sell a bronze sculpture that he falsely represented to be a genuine work of art by Jasper Johns, as well as his sales of bronze sculptures that he falsely represented to be the work of two other artists, Robert Indiana and Saint Clair Cemin. RAMNARINE pled guilty yesterday before U.S. District Court Judge John G. Koeltl, on the fifth day of a jury trial.
Manhattan U.S. Attorney Preet Bharara said: “Brian Ramnarine is a serial fraudster who attempted to peddle not one but multiple fake sculptures in three separate fraud schemes – the last two of which occurred after he had already been arrested and was facing charges for the first. Ramnarine now stands convicted and, with his admission of guilt, will pay for his fraud.”
According to the Indictment to which RAMNARINE pled guilty, evidence presented at trial, and statements made during the plea proceeding:
In 1960, Johns created a painting titled “Flag,” which he gave to fellow artist and friend Robert Rauschenberg. Years later, Johns made a mold (the “Flag Mold”) from that painting in order to make a sculpture. In 1990, Johns provided the Flag Mold to RAMNARINE, who owned a Queens, New York, foundry. Johns instructed RAMNARINE to use the Flag Mold to make a wax cast. RAMNARINE completed the wax cast and gave it to Johns, but he never returned to Johns the Flag Mold from which the wax cast was made.
In 2010, RAMNARINE began representing to various members of the art world that he owned a bronze sculpture, titled “Flag,” that was an authorized Jasper Johns work of art created in 1989 (the “Purported 1989 Bronze Sculpture”). In an effort to identify a purchaser for the Purported 1989 Sculpture, he showed it to a representative of an auction house who specialized in the sale of rare art, and to an art dealer. Around the same time, RAMNARINE also attempted to sell the Purported 1989 Bronze Flag directly to an art collector. At RAMNARINE’s direction, several art brokers were in frequent contact with the art collector, and with the art collector’s representative, regarding the possible sale of what was represented to be a genuine and authorized Jasper Johns work of art. Through an art broker to whom RANMARINE had shown the Purported 1989 Bronze Sculpture, RAMNARINE informed the art collector’s representative that he would sell it for approximately $11 million.
After the art collector expressed doubts about the authenticity of the Purported 1989 Bronze Sculpture, RAMNARINE provided false and fraudulent documents and information in an effort to deceive the art collector into believing that the artwork was genuine. For example, RAMNARINE stated that the Purported 1989 Bronze Sculpture was a gift from Johns. To support that assertion, RAMNARINE provided an art broker with a letter dated August 23, 1989, purportedly from Johns, along with other documents that falsely and fraudulently reflected that the Purported 1989 Bronze Sculpture was a genuine Johns work of art, and that it was owned by RAMNARINE.
In truth, the Purported 1989 Bronze Sculpture was a fake. Johns never authorized its production nor did he transfer ownership to RAMNARINE. Instead, against Johns’s earlier instructions and without authorization, RAMNARINE used the original Flag Mold provided by Johns to make the Purported 1989 Bronze Flag, dated it “1989,” and forged Johns’s signature on the back of the sculpture.
RAMNARINE was arrested in November 2012 on charges arising from his attempt to sell the Purported 1989 Bronze sculpture. Shortly after his arrest and while he was on bail, RAMNARINE engaged in two new schemes to defraud an online art gallery located in Queens (the “Gallery”). In particular, RAMNARINE sold to the Gallery two fake sculptures, titled “Two” and “Orb,” that he falsely claimed had been made and authorized by Robert Indiana, and numerous fake sculptures that he falsely claimed had been made and authorized by Saint Clair Cemin. The Gallery paid RAMNARINE tens of thousands of dollars for the phony sculptures.
RAMNARINE, 59, of Queens, New York, pled guilty to three counts of wire fraud. He faces a maximum sentence of 20 years on Count One, and a maximum sentence of 30 years on each of Counts Two and Three because those offenses were committed while RAMNARINE was on bail. RAMNARINE is scheduled to be sentenced by Judge Koeltl on May 30, 2014, at 10:00 a.m.
Mr. Bharara praised the FBI for its outstanding work in the investigation. He also thanked the Port Authority of New York/New Jersey Police Department and the New York State Police for their assistance.
The case is being handled by the Complex Frauds Unit of the United States Attorney’s Office. Assistant United States Attorneys Zachary Feingold and Daniel B. Tehrani are in charge of the prosecution.
U.S. v. Brian Ramnarine S1 Indictment
Philadelphia Man Charged with Bank RobberyRead the Press Release
Nicholas Aquilante, 49, of Philadelphia, PA, was charged today by indictment, January 21, 2014, with bank robbery, announced U.S. Attorney Zane David Memeger. The indictment charges that Aquilante committed a robbery of Republic Bank, located at 833 Chestnut Street in Philadelphia, Pennsylvania, on July 5, 2013.
If convicted, Aquilante faces a maximum sentence of 20 years in prison, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case has been investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Click here to view the indictment
An Indictment 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, 215-861-8525Patient Recruiter Pleads Guilty in Connection with <br /> $13 Million Health Care Fraud SchemeRead the Press Release
Pavel Zborovskiy, 57, of Brooklyn, N.Y., pleaded guilty today to conspiracy to pay and receive illegal health care kickbacks in connection with a $13 million health care fraud and money laundering scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office, and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) made the announcement.
Zborovskiy pleaded guilty before U.S. District Judge Nina Gershon of the Eastern District of New York and is the sixth defendant to plead guilty in connection with the scheme. At sentencing on May 28, 2014, Zborovskiy faces a maximum penalty of five years in prison and a fine of more than $2.5 million.
According to court documents, from 2010 to 2012, Zborovskiy, working through an ambulette company, recruited patients to attend a Brooklyn clinic called Cropsey Medical Care PLLC. An ambulette is a vehicle that is licensed by New York State’s Medicaid program to transport beneficiaries to and from medical facilities when such transportation is medically necessary. Zborovskiy’s ambulette company transported the patients he had recruited to and from Cropsey Medical, and billed Medicaid for such transportation. Once Zborovskiy’s beneficiaries were transported to Cropsey Medical, Zborovskiy and others paid such beneficiaries cash kickbacks to induce them to continue to attend the clinic and to receive medically unnecessary physical therapy, diagnostic testing and other services. Such purported medical services were then billed by Cropsey Medical to Medicare and Medicaid.
According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
The case was investigated by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Patient Recruiter Pleads Guilty in Connection with $13 Million Health Care Fraud SchemeRead the Press Release
BROOKLYN, NY - Pavel Zborovskiy, 57, of Brooklyn, NY, pleaded guilty today to conspiracy to pay and receive illegal health care kickbacks in connection with a $13 million health care fraud and money laundering scheme.
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office, and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) made the announcement.
Zborovskiy pleaded guilty before U.S. District Judge Nina Gershon of the Eastern District of New York and is the sixth defendant to plead guilty in connection with the scheme. At sentencing on May 28, 2014, Zborovskiy faces a maximum penalty of five years in prison and a fine of more than $2.5 million.
“Pavel Zborovskiy and his criminal associates manipulated elderly Medicaid and Medicare patients, paying them kickbacks to induce them to receive medically unnecessary treatments and services in a scheme to defraud those programs out of millions of dollars,” stated United States Attorney Lynch. “Protecting taxpayer funded programs like Medicaid and Medicare is a priority of this Office and the Department of Justice. Today’s sentence represents a clear warning to those who seek to defraud Medicaid and Medicare that they will be held accountable for their crimes.”
According to court documents, from 2010 to 2012, Zborovskiy, working through an ambulette company, recruited patients to attend a Brooklyn clinic called Cropsey Medical Care PLLC. An ambulette is a vehicle that is licensed by New York State’s Medicaid program to transport beneficiaries to and from medical facilities when such transportation is medically necessary. Zborovskiy’s ambulette company transported the patients he had recruited to and from Cropsey Medical, and billed Medicaid for such transportation. Once Zborovskiy’s beneficiaries were transported to Cropsey Medical, Zborovskiy and others paid such beneficiaries cash kickbacks to induce them to continue to attend the clinic and to receive medically unnecessary physical therapy, diagnostic testing, and other services. Such purported medical services were then billed by Cropsey Medical to Medicare and Medicaid.
According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy, and diagnostic tests.
The case was investigated by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorney Sarah M. Hall and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Pastor Sentenced to Federal Prison for Wire Fraud as Part of A $5 Million Ponzi SchemeRead the Press Release
DENVER – Pastor Charles Lawrence Kennedy, Jr., age 71, of Tampa, Florida was sentenced last week by U.S. District Court Judge Christine M. Arguello to serve one year and a day in federal prison for one count of wire fraud, federal law enforcement announced. Following his prison sentence, Kennedy was ordered to serve three years on supervised release. He was also ordered to pay restitution of approximately $315,000 to the victims of his crime. Kennedy appeared at the sentencing hearing free on bond, and was ordered to report to a facility designated by the U.S. Bureau of Prisons on a certain date.
Kennedy was indicted by a federal grand jury in Denver on March 22, 2012, along with co-defendants Stanley Wayne Anderson of Arvada, Colorado and Edwin Alexander Smith of Denver, Colorado. Smith pled guilty to one count of wire fraud on August 27, 2013. Smith is scheduled to be sentenced by Judge Arguello on February 4, 2014. Anderson has a change of plea hearing scheduled for February 6, 2014.
According to the facts contained in the indictment as well as the stipulated facts contained in the plea agreement, beginning in October of 2005 and continuing through December 2008, Anderson, Smith and Kennedy together with each other, and aiding and abetting other persons known and unknown to the Grand Jury, devised a scheme to defraud investors.
Anderson and Smith resided in Colorado and conducted business through “CFO-5, LLC” and “Trinity International Enterprises, Inc”, two companies they controlled. Trinity had no business operations apart from soliciting investment funds related to an investment program. Anderson was the chairman and chief executive officer of CFO-5 and Trinity. Smith was the secretary of CFO-5 and president of Trinity. Kennedy resided in Florida where he worked as a pastor and conducted business through a company identified as “Keys to Life Corporation". Kennedy through a formal partnership with Trinity assisted Anderson and Smith in soliciting investment funds.
They solicited investors' funds for use in an investment program where significant profits would supposedly be generated through the trading of European medium term notes ("MTN program"). When in fact, the MTN program did not exist. Furthermore, they represented that their MTN program would pay nearly immediate returns in amounts ranging from 200 to 1000 percent.
They raised approximately $5 million dollars from approximately 100 investors nationwide over the course of the scheme. The investors' funds were not used to trade in financial instruments, but were instead misappropriated by Anderson, Smith and Kennedy for unauthorized uses. Investors, with the exception of those who received Ponzi scheme-like payments, that is, money taken from one investor to compensate another, lost their total investments. Anderson and Smith generally commingled and deposited investors' funds into bank accounts controlled by Anderson and Smith.
3Kennedy began soliciting investments in December of 2005 from fellow pastors and members of their congregations through his company Keys to Life Corporation and falsely promised that for every $1,000 invested, the minimum return would be $1,000,000 which would be paid within 90 days. From December 2005 through April 2006, Kennedy collected $460,000 from nine investors and forwarded only $145,000 to Trinity for use in the investment pool, and as a result has agreed to pay $315,000 in restitution. Kennedy in fact took a portion of investor funds for his own personal benefit.
“When a person abuses his position of trust to take fraudulent financial advantage of the people who trust him, he will face criminal consequences,” said U.S. Attorney John Walsh. “Pastor Kennedy will spend a year of his life in prison to reflect on his criminal conduct.”
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “Those individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
“The investigation of investment fraud is an FBI priority,” said FBI Denver Division Special Agent in Charge Thomas P. Ravenelle. “We are confident the outcome of this case will deter others who seek to defraud innocent investors.”
“The defendants’ position of trust as a Religious Leader gave him the opportunity to prey on vulnerable victims causing them emotional and financial harm,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “It is important we stop this victimization and bring these perpetrators to justice.”
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorney Timothy Neff.
Parma Man Charged for Recruitment Fraud ConspiracyRead the Press Release
A Parma man was charged with conspiracy to commit mail fraud for his role in defrauding the Cleveland Clinic out of approximately $179,040, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Richard Zukowski, 49, is charged with one count of conspiracy to commit mail fraud.
Zukowski owned and operated an independent recruiting firm called the David Anthony Group, Inc. or DAG. The company maintained a contract with the Cleveland Clinic from 2008 through January 2013 to help locate and recruit certified registered nurse anesthetists to work within the Clinic’s Anesthesiology Institute, according to the criminal information.
The Cleveland Clinic paid DAG commissions, equal to a percentage of the first year annual salary, for each successful certified registered nurse anesthetist recruited by DAG, according to the information.
An individual identified as R.B. was the Institute Administrator within the Anesthesiology Institute at the Cleveland Clinic. R.B. submitted invoices related to the commissions for people purportedly recruited by DAG.
Zukowski conspired with R.B. from about June 15, 2010 through around January 2013, according to the information.
R.B. provided names, dates of invoice and DAG commission figures to Zukowski for 10 individuals. R.B. instructed Zukowski to submit a recruiting invoice through DAG for each individual whose name R.B. provided. At no point did Zukowski or DAG recruit the 10 individuals for employment at the Cleveland Clinic, according to the information.
The Cleveland Clinic mailed Zukowski eight checks which totaled $179,040, according to the information.
R.B. then asked Zukowski to return half the money Zukowski received as payment for the invoices. Zukowski transferred only about one-third of the proceeds to R.B. Zukowski withdrew approximately $60,000 in cash, in increments between $1,500 and $2,000, and hand delivered the cash to R.B. in envelopes, according to the information.
This case is being prosecuted by Special Assistant U.S. Attorney Derek Kleinmann following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Operation Pipe Cleaner Results in Drug Trafficking Charges Against 22 IndividualsRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that a total of 22 defendants have been arrested and charged with drug trafficking offenses in federal and state court as a result of Operation Pipe Cleaner.
In Bismarck, U.S Attorney Purdon said, "The arrests made today in Dickinson as a result of Operation Pipe Cleaner show that federal, state and local law enforcement agents and prosecutors are committed to working together to fight increased organized drug distribution activity in the Bakken region. These federal and state charges are the result of a joint investigation led by FBI and North Dakota Bureau of Criminal Investigation and of close collaboration between the U.S. Attorney's Office, the North Dakota Attorney General's Office and the Stark County State's Attorney's Office. The cooperation and collaboration by all involved in Operation Pipe Cleaner can serve as a model for future investigations aimed at dismantling drug trafficking organizations in the oil patch."
Attorney General Wayne Stenehjem said, “The North Dakota Legislature recognized the need for additional resources to be devoted to fighting crime in oil-impacted counties. We are making sure these resources are targeted to make an immediate difference for North Dakota citizens.”
Special Agent in Charge Chris Warrener of the FBI’s Minneapolis Field Office which includes North Dakota said, "Those who seek to engage in criminal activities will not be permitted to act with impunity in the Bakken Oil Patch. The FBI remains committed to assisting our state and local partners in making certain that the safety and well-being of the people of western North Dakota remains a priority."
Those charged in United States District Court, District of North Dakota: Shelly Anne Winner, 35, Dickinson, N.D., conspiracy to distribute and possess with intent to distribute methamphetamine; distribution of methamphetamine.
Travis L. Collins, 33, Dickinson, N.D., conspiracy to distribute and possess with intent to distribute methamphetamine; distribution of methamphetamine.
Todd O. Snyder, 48, Dickinson, N.D., conspiracy to distribute and possess with intent to distribute methamphetamine; distribution of methamphetamine.
Spencer Earl Rogers, 24, Dickinson, N.D., and Bakersfield, Calif., conspiracy to distribute and possess with intent to distribute controlled substances (crack cocaine and cocaine); possession of firearms by a convicted felon; two counts of possession of a firearm and ammunition by a convicted felon; possession of a firearm in furtherance of a drug trafficking crime.
Laverne Taylor, 30, Dickinson, N.D., and Bakersfield, Calif., conspiracy to distribute and possess with intent to distribute controlled substances (crack cocaine and cocaine); two counts of possession of a firearm and ammunition by a convicted felon; possession of a firearm in furtherance of a drug trafficking crime.
Jimmy Lee Stewart Jr., 39, Glen Ullin, N.D., possession of a firearm by a convicted felon.
Alysia Sue Herrick, 29, Dickinson, N.D., conspiracy to distribute and possess with intent to distribute controlled substances (methamphetamine and heroin); tampering with a witness and informant.
Jordan Robert Ward, 21, Arizona, conspiracy to distribute and possess with intent to distribute controlled substances (methamphetamine and heroin).
Jared Robert Millard, a/k/a/ Blue, 24, Dickinson, N.D., conspiracy to distribute and possess with intent to distribute controlled substances (methamphetamine and heroin); tampering with a witness and informant.
Kyle William Stoldorf, 33, Dickinson, N.D., conspiracy to distribute and possess with intent to distribute controlled substances (methamphetamine and heroin).
Jeremy DeWayne Richardson, a/k/a/ Tree, 22, Dickinson, N.D., conspiracy to distribute and possess with intent to distribute controlled substances (methamphetamine and heroin).
Cody Allen Robinson, 25, Las Vegas, Nev., conspiracy to distribute and possess with intent to distribute controlled substances (methamphetamine and heroin).
Steven Frazier, 35, Las Vegas, Nev., conspiracy to distribute and possess with intent to distribute controlled substances (methamphetamine and heroin).
Todd Damien Gore, 36, Bermuda Dunes, Calif., possession of a firearm by convicted felon; conspiracy to distribute and possess with intent to distribute controlled substances (methamphetamine and heroin).
Those charged in North Dakota District Court, Stark County: Mariesa Giovannetti-Calcote, 23, Minot, N.D., possession of controlled substance (marijuana); possession of controlled substance (oxycontin); possession of drug paraphernalia.
Lindsay Haller, 24, Dickinson, N.D., delivery of MDMA (ecstasy); delivery of methamphetamine; possession with intent to deliver (cocaine).
Jameson Millard, 27, Dickinson, N.D., possession of controlled substance (heroin).
Julia Millard, 19, Dickinson, N.D., delivery of controlled substance (oxycodone).
Shelly Warden, 21, Dickinson, N.D., delivery of controlled substance (oxycodone).
Matthew Kubik, 26, Dickinson, N.D., delivery of MDMA (ecstasy); delivery of methamphetamine; possession with intent to deliver (cocaine).
Todd Hicks, 41, Broomfield, Colo., delivery of controlled substance (marijuana, cocaine and heroin).
Krystal Sannicolas, 27, Dickinson, N.D., possession of controlled substance (cocaine); false information to law enforcement.
Purdon stressed that an indictment or complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Assistant U.S. Attorney Brandi Sasse Russell is prosecuting the federal cases. The state cases are being prosecuted by State’s Attorney Tom Henning, with assistance from Attorney General Stenehjem’s office.These cases were a joint investigation led by the Federal Bureau of Investigation, North Dakota Bureau of Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms & Explosives, Metro Area Narcotics Task Force, Southwest Narcotics Task Force, Dickinson Police Department, Stark County Sheriff’s Office, Homeland Security Investigations, Drug Enforcement Administration, and Bismarck Police Department.
Omaha Man Sentenced for Mail Fraud and Making False Statements to H.U.D.Read the Press Release
Marquis Harrington, age 44 of Omaha, Nebraska, was sentenced for his conviction for mail fraud and making false statements to the Department of Housing and Urban Development. United States District Court Judge John Gerrard sentenced Harrington to 2 months of imprisonment to be followed by 6 months of home confinement during a three year term of supervised release. Harrington was further ordered to pay $22,708.00 in restitution to H.U.D.
Harrington made an application for Section 8 housing assistance through the Douglas County Housing Authority. The Section 8 program provides full or partial rental assistance depending on the number of people residing in the apartment and the income of those persons. During the time he was receiving Section 8 assistance, Harrington failed to report annual income of approximately $60,000.00 and falsely reported the number of people who were living in the home. As a result of Harrington’s actions, he received rental assistance of $22,708.00 over a two and one half year period that he should not have received.
After moving out of the apartment, Harrington purchased a home in Omaha. He applied for a FHA mortgage which was insured by H.U.D. Under H.U.D. rules for FHA insured loans, there can be no second mortgage associated with the purchase of the home. In this case, Harrington gave the seller a $23,400.00 note which was not disclosed that was in addition to his mortgage. At the time of the closing on the FHA insured loan, Harrington signed forms affirmatively representing that there were no such loans.
This case was investigated by the Office of Inspector General for the U.S. Department of Housing and Urban Development.
Old Forge Pharmacist Charged with Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that it has filed a criminal information in U.S. District Court in Scranton charging an Old Forge pharmacist with submitting false insurance claims for non-existent prescriptions.
According to United States Attorney Peter J. Smith stated that, according to the criminal information, Peter Capitano, owner of Capitano’s Pharmacy engaged in a scheme to defraud Blue Cross of Northeastern Pennsylvania and the Pennsylvania Medicaid Program between January 2007 through August 2013.
The charges stem from an investigation initiated in February of 2011 by the Federal Bureau of Investigation and the Department of Health and Human Services’ Office of Inspector General.
Capitano allegedly submitted claims or caused claims to be submitted for drugs allegedly prescribed when the prescriptions did not exist and drugs were not actually dispensed.
A plea agreement was also filed together with the criminal information. The agreement is subject to approval by the Court. According to the plea agreement, the estimated financial loss resulting from the fraudulent claims was between $120,000 and $200,000. Capitano will be required to pay restitution for the loss amount.
In this particular case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
An Indictment or Information is not evidence of guilt but simply a description of the charge made by the Grand Jury and/or United States Attorney against a defendant. A charged Defendant is presumed innocent until a jury returns a unanimous finding that the United States has proven the defendant=s guilt beyond a reasonable doubt or until the defendant has pled guilty to the charges.
****Ohio Man Pleads Guilty to Possession of Child PornographyRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that Dwayne Dunlavy, 40, of Ravenna, Ohio, pleaded guilty Thursday before U.S. District Judge Dee D. Drell to possession of child pornography.
According to evidence presented at the guilty plea, in December 2011 investigators began looking for a suspect who was making child pornography available on file sharing networks. One individual was found to be at an Alexandria hotel using the hotel’s Wi-Fi network to distribute child pornography. On March 5, 2012, Dunlavy was discovered in the hotel room. Law enforcement personnel searched his laptop and found images of child pornography.Dunlavy faces 10 years in prison, a $250,000 fine, forfeiture, and a lifetime of supervised release. He will also be required to register as a sex offender. A sentencing date of April 25, 2014 was set.
Homeland Security Investigations, Louisiana State Police, and the Internet Crimes Against Children Task Force in the Mississippi Attorney General’s Office conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Norwich Resident Sentenced to 30 Months in Prison for Role in Mortgage Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARC JEAN, 44, a citizen of Haiti residing in Norwich, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 30 months of imprisonment, followed by three years of supervised release, for his role in an extensive mortgage fraud scheme.
According to court documents and statements made in court, between 2006 and 2010, Syed Babar of New London orchestrated a scheme to obtain millions of dollars in residential real estate loans through the use of sham sales contracts, false loan applications and fraudulent property appraisals. The scheme involved nearly 30 properties in Connecticut, most of which ended up in foreclosure, and resulted in a loss of more than $4 million to various private lenders and to the Federal Housing Administration, which insured many of the loans that were fraudulently obtained.
JEAN conspired with Babar and others and was paid tens of thousands of dollars for acting as a straw buyer in a total of four residential property sales in New London, New Britain and Meriden. At Babar’s direction, JEAN accepted deposits of proceeds from the conspiracy into his bank account in order to show that he made more money than he actually did and that he had cash available for the real estate transactions. In connection with the fraudulent real estate transactions, JEAN provided fictitious documentation and made false statements to lenders, including that he intended to occupy the property as his primary residence, that he earned income from a rental property, that he had provided cash for the transaction, and that he is was a U.S. citizen.
The loss suffered by the lenders for the four properties was more than $725,000. Judge Thompson ordered JEAN to pay restitution in the amount of $688,852.74.
On July 9, 2013, JEAN pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud.
Fifteen individuals have been convicted in connection with this scheme. On November 28, 2011, Syed Babar was sentenced to 120 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Eric Glover, Susan Wines and Liam Brennan.
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(203) 821-3722 [email protected]Norwalk Man Who Possessed Machine Gun Sentenced to Five Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SENTRELL BOOKHARDT, 27, of Norwalk, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by three years of supervised release, for possessing a machine gun.
According to court documents and statements made in court, at approximately 5:00 p.m. on January 26, 2013, BOOKHARDT ran from a Norwalk Police officer in the Meadow Gardens Housing Complex in Norwalk and discarded a blue backpack. Examination of the backpack revealed a black, steel machine gun missing its stock, and an extended magazine loaded with 27 rounds of ammunition. BOOKHARDT was arrested later that evening.
BOOKHARDT has been detained in state custody since his arrest. On October 3, 2013, he pleaded guilty to one count of possession of an unregistered machine gun.
BOOKHARDT’s criminal history includes three convictions stemming from the unlawful possession of firearms.
This matter was investigated by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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(203) 821-3722 [email protected]New York Man Sentenced to 5 Years in Federal Prison for Credit Card FraudRead the Press Release
Orlando, Florida - Senior U.S. District Judge Gregory A. Presnell yesterday sentenced Werawat Isaraphanich (38, Bronx, New York) to 5 years in federal prison for access device fraud. Isaraphanich was also ordered to serve a 3-year term of supervised release following his incarceration, and to pay more than $323,000 to the victims of his crime. Isaraphanich also agreed to forfeit over $176,000, currently being held in two accounts, which will be returned to the victims as partial payment towards restitution.
Isaraphanich pleaded guilty on September 18, 2013.
According to court documents, Isaraphanich used stolen credit card numbers to purchase tickets from Walt Disney World, Universal Studios, StubHub, and Ticket Master, which he then sold at a discount. To purchase the tickets and other items, Isaraphanich used software that generated a fictitious caller ID, which allowed him to mask the telephone number that he was using when he called to make the purchases. Between April 2010 and June 2013, Isaraphanich made approximately 1,800 calls using fictitious caller IDs, and used more than 100 stolen credit card numbers to make fraudulent purchases of theme park tickets, concert tickets, sporting event tickets, airline tickets, and products from Apple and Macy’s. As part of his scheme, Isaraphanich attempted over $1.1 million in fraudulent credit card transactions, with victims suffering more than $323,000 in actual losses.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Roger B. Handberg.