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28 January 2014
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 After the fraudulent checks were deposited into the legitimate bank accounts, the monies were withdrawn from the bank accounts by the account holders, prior to the fraudulent check clearing or being identified as fraudulent.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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Tom Carson
(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
Tom Carson
(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.
National Appraisal Instructor and Associate Sentenced for Their Role in Mortgage FraudRead the Press Release
RALEIGH – The United States Attorney’s Office announces that in federal court yesterday Chief United States District Judge James C. Dever III sentenced former real estate appraiser LARRY MAX MCDANIEL, 70, of Vienna, West Virginia, to 66 months imprisonment followed by 5 years of supervised release. The Court also sentenced JACKIE GALE WEAVER, JR., 50, of West Hamlin, West Virginia, to 21 months imprisonment, followed by 3 years of supervised release. The Court further ordered that MCDANIEL and WEAVER make total restitution of $5,809,417.94 to various banks, lenders, and other victims.
The charging documents and subsequent evidence in the cases showed that between 2002 and 2006, an individual identified as James Thomas Webb(previously sentenced to 237 months in prison) was operating a company identified as Alpine Properties, LLC. Webb promised investors that he and Alpine Properties would use investor money to purchase homes at a low value, renovate the homes, and then sell them to first-time home buyers for a higher value.
The evidence established that MCDANIEL, a licensed real estate appraiser residing in West Virginia, and WEAVER, a former appraisal associate of MCDANIEL, began to falsify appraisals for Webb and Alpine Properties. On the appraisals, MCDANIEL was listed as the North Carolina appraiser who performed each appraisal. In fact, however, MCDANIEL did not visit the properties, nor did he create the appraisal documents. Instead, the information that was listed in the appraisal reports, including measurements, sketches, and photographs, all came from WEAVER or employees of Webb and Alpine Properties.
The evidence also established that MCDANIEL did not draft, print, or execute the appraisals that bore his name and official seal; WEAVER performed those tasks, often from within Webb’s offices at Alpine Properties. Nevertheless, MCDANIEL invoiced and received payment for many of the appraisals. MCDANIEL also wrote detailed letters to banks and lenders to support the value assigned in his appraisal documents, even though MCDANIEL had never, in fact, been to the properties.
The Superseding Indictment alleges, and evidence in court ultimately showed, that WEAVER created and MCDANIEL authorized approximately 200 false appraisals in the manner described above.
MCDANIEL pled guilty to Making a False Statement to Influence a Bank on a Loan and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1014 and 2. WEAVER pled guilty on September 19, 2011, to Conspiracy to Commit Wire Fraud, Bank Fraud, and to Make False Statements to Influence Financial Institutions on Loans.
Investigation of this case was conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Department of Housing and Urban Development Office of the Inspector General, and the Federal Deposit Insurance Corporation Office of the Inspector General, with the assistance of the North Carolina Appraisal Board. Assistant United States Attorney William M. Gilmore represented the United States.
Mexican National Indicted for Smuggling Heroin in his ShoesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was indicted by a federal grand jury today for attempting to transport approximately two pounds of heroin across the country in his shoes.
Sergio Arturo Gonzalez-Garcia, 29, a citizen of Mexico, was charged with possessing heroin with the intent to distribute in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Gonzalez-Garcia on Jan. 21, 2014. Gonzalez-Garcia remains in federal custody.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers saw Gonzalez-Garcia waiting to claim his luggage after he arrived at the Greyhound bus terminal at 1101 S. Troost Ave., Kansas City, on Jan. 20, 2014. A drug detection dog started pulling its handler in the direction where Gonzalez-Garcia was standing, the affidavit says, and when he saw the officer approaching, Gonzalez-Garcia immediately walked into the bus terminal.
When Gonzalez-Garcia later walked back to the bus, then returned to the terminal, a Kansas City police detective noticed that he seemed to have difficulty walking, the affidavit says. The detective also noticed that the athletic shoes Gonzalez-Garcia was wearing did not bend as he took steps.
The detective followed Gonzalez-Garcia into the terminal and questioned him. The detective asked Gonzalez-Garcia if he could search his shoes. They went into the customer service office and Gonzalez-Garcia removed his shoes. Officers found a bundle of heroin inside each of the shoes, which weighed a total of 993 grams (more than two pounds).
Gonzalez-Garcia, who told police he was transporting the heroin from Los Angeles, Calif., to St. Louis, Mo., was arrested.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Mexican National Handed Significant Sentence for Drug Trafficking and Money LaunderingRead the Press Release
McALLEN, Texas – Julio Cesar Almeida, 40, a Mexican National residing in Weslaco, has been ordered to prison for 210 months as a result of his convictions of possession with the intent to distribute cocaine and methamphetamine and money laundering, announced United States Attorney Kenneth Magidson.
Almeida previously pleaded guilty, admitting that In March 2007, authorities seized approximately 408 kilograms of cocaine and 27 kilograms of methamphetamine following a traffic accident near Robstown. Almeida supplied the narcotics which were destined for Georgia. Following a lengthy investigation, Almeida was arrested in March 2010 for coordinating the transportation of numerous loads of cocaine from the Rio Grande Valley area to Georgia and elsewhere. Additionally, the investigation revealed Almeida utilized the proceeds generated from his drug trafficking activities to purchase various properties and assets.
Chief U.S. District Judge Ricardo Hinojosa, who handed down the sentence, ordered he remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Almeida is expected to face deportation proceedings following his release from prison.
The investigation leading to the charges was conducted by the Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety. Assistant United States Attorney James Sturgis prosecuted the case.
Mescalero Apache Man Pleads Guilty to Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Norman Stan Chee, 21, a member of the Mescalero Apache Nation, pleaded guilty this afternoon to a statutory rape charge in federal court in Las Cruces, N.M. Chee entered his guilty plea without the benefit of a plea agreement.
Chee was arrested in Oct. 2013, based on a criminal complaint alleging that he knowingly engaged in a sexual act with a child between 12 and 16 years of age. Today Chee entered a guilty plea to a felony information charging him with engaging in a sexual act with a minor who was at least four years younger than Chee on Feb. 21, 2012, at a location within the Mescalero Apache Reservation.
According to court filings, the BIA’s Office of Justice Services initiated an investigation into Chee in July 2012, when officers responded to a call regarding an alleged assault and saw Chee and the victim, who was 15 years old, fleeing from the site of the assault. During an interview, the victim acknowledged having engaged in sexual activity with Chee. Chee also was interviewed and admitted that he engaged in sexual acts with the victim. Chee stated that his sexual relationship with the victim began in Feb. 2012, and admitted knowing that the victim was 15 years old.
Chee is in federal custody and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Chee faces a maximum penalty of 15 years in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U .S. Attorney’s Las Cruces Branch Office.
Mescalero Apache Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Sheridan Gerard Lester, 24, a member of the Mescalero Apache Nation, pleaded guilty this afternoon to an assault charge in federal court in Las Cruces, N.M. Under the terms of his plea agreement, Lester will be sentenced to 21 months in prison followed by a term of supervised release to be determined by the court.
Lester was arrested in Aug. 2013, based on a criminal complaint alleging assault with a dangerous weapon and assault resulting in serious bodily injury. Today Lester entered a guilty plea to a felony information charging him with assault resulting in serious bodily injury and admitted assaulting another Mescalero Apache man on Nov. 27, 2012, at a location within the Mescalero Apache Reservation.
According to the criminal complaint, Lester assaulted the victim on Nov. 27, 2012, at Lester’s residence, which is located within the Mescalero Apache Reservation. Lester was intoxicated when he began quarreling with the victim and began attacking the victim with his fists. In his plea agreement, Lester admitted intentionally striking the victim about the body and in the face, causing the victim to suffer serious injuries.
Lester was in tribal custody for 302 days based on a tribal conviction related to the assault charged in the federal case before he was transferred to federal custody. Lester remains in federal custody pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Lester will receive credit for the 302 days spent in tribal custody when he is sentenced.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U .S. Attorney’s Las Cruces Branch Office.
Mayetta Man Pleads Guilty to Federal Charge in Domestic Violence Assault on Indian LandsRead the Press Release
TOPEKA, KAN. – A Mayetta, Kan., man pleaded guilty Monday to a federal charge arising from a domestic assault that took place on tribal lands, U.S. Attorney Barry Grissom said.
William L. Wilson, 28, Mayetta, Kan., pleaded guilty to one count of domestic assault by an habitual offender. In his plea, he admitted that on Sept. 7, 2013, he assaulted the woman with whom he was living on the reservation of the Prairie Band Potawatomi Nation in Jackson County, Kan. He admitted hitting and chocking her, resulting in physical injuries. Prior to that time, Wilson had been convicted on three separate occasions of domestic assault offenses.
“Protecting women and girls in Indian Country is a high priority for our office,” said U.S. Attorney Barry Grissom.
Sentencing is set for April 14. Both parties have agreed to recommend a sentence of between 24 and 40 months in federal prison. Grissom commended the Prairie Band Potawatomi Tribal Police Department and Assistant U.S. Attorney Alan Metzger.
Maryland Man Sentenced for Raleigh Bank RobberyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced DELLONTE RASHAUN SEBURN, 35, of Hyattsville, Maryland, to 132 months of imprisonment and 3 years of supervised release. SEBURN previously pled guilty on October 8, 2013 to one count of Bank Robbery.
On September 24, 2012, SEBURN wastransported by taxi to the Mechanics and Farmers Bank in Raleigh, North Carolina, after traveling from Maryland the night before. SEBURN entered the bank and handed a note to the teller demanding money. He received $1,260 prior to fleeing the bank in the awaiting taxi. On October 1, 2012, SEBURN was arrested in Maryland.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the FBI Raleigh-Durham Safe Streets Task Force comprised of the Cary Police Department, Durham Police Department, Durham County Sheriff’s Office, Garner Police Department, N.C. Alcohol Law Enforcement, N.C. State Highway Patrol, and the Raleigh Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Long Island Couple Involved in Decade-long Mortgage Fraud Scheme in Bridgeport Sentenced to PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WINSTON SHILLINGFORD, 56, and his wife, MARLEEN SHILLINGFORD, 47, of Nesconset, N.Y., were sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to prison terms of 48 months and 36 months, respectively, for operating a multimillion-dollar mortgage fraud scheme that involved more than 40 properties in Bridgeport, Conn. Both defendants will serve three years of supervised release upon their release from prison.
According to court documents and statements made in court, the Shillingfords were involved in the operation of Waikele Properties Corp., a real estate company with offices in Bridgeport and Garden City, N.Y. From approximately 2001 to August 2011, the Shillingfords, Robert Ilunga and others conspired to obtain fraudulent mortgages for the purchase of more than 40 multi-family properties in Bridgeport. As part of the scheme, the Shillingfords and their co-conspirators purchased existing multi-family houses, and vacant parcels of land and erected new houses on them to sell. The co-conspirators recruited individuals to purchase the properties, acted as the buyers’ real estate agent and assisted the buyers in applying for residential mortgage loans to purchase the houses. The co-conspirators then prepared loan applications for the buyers that included fraudulent information concerning, among other things, the buyers’ employment, income, assets and liabilities, previous property ownership and intention to make the properties their primary residences. The co-conspirators also provided fraudulent supporting documentation with the loan applications, including false letters from fictitious employers, false earnings statements, and fraudulent bank records.
After the loans were approved, the illicit proceeds of the scheme were wired into the Waikele Properties bank account and then transferred to members of the conspiracy. Some of the proceeds also were used to continue the mortgage fraud scheme.
Contrary to the representations made on the loan applications, several straw purchasers never occupied the houses as their primary residences and subsequently defaulted on the loans.
The parties have agreed that victim financial institutions suffered losses of between $2.5 million and $7 million as a result of this scheme. A restitution order will be issued after further court proceedings.
In October 2011, Winston and Marleen Shillingford each pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.
Robert Ilunga, of Naugatuck, pleaded guilty to the same charges and is scheduled to be sentenced on January 31.
This investigation is being conducted by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development’s Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
This case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and David T. Huang.
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(203) 821-3722 [email protected]Lincoln Man Sentenced for Multiple Bank RobberiesRead the Press Release
United States Attorney Deborah R. Gilg announced that on January 24, 2014, United States District Judge John M. Gerrard sentenced Cameron Mitchell, age 53 of Lincoln, to 370 months in the custody of the Bureau of Prisons following his guilty pleas and convictions related to his robbery of seven banks in Omaha, Lincoln, and Council Bluffs, between June 23, 2012, and August 24, 2012. Mitchell walked into the bank’s lobbies armed with a handgun, and then jumped over the counters and into the tellers’ areas where he took money from the teller drawers and put it into bags he carried with him. Following completion of his sentence, Mitchell will be required to serve five years of supervised release, and will also be required to pay $74,179.73 in restitution to the victim banks.
Investigation and prosecution of these cases was coordinated with the cooperation of the Federal Bureau of Investigation, Omaha Police Department, Council Bluffs Police Department, Lincoln Police Department and the United States Attorney’s Offices in Nebraska and the Southern District of Iowa.
Life Insurance Companies Find There’s No Insurance Against $80 Million FraudRead the Press Release
San Diego, CA – United States Attorney Laura E. Duffy announced today that insurance broker Jeffrey B. Keller appeared in federal court before United States Magistrate Judge William V. Gallo and admitted deceiving life insurance companies so that they would issue more than $80 million worth of policies to unqualified applicants who had no intention of paying the policy premium. In return, Keller obtained over $3 million in commissions.
As set forth in the Plea Agreement, Keller employed multiple means to deceive the life insurance companies. Initially, he recruited elderly individuals to apply for “free” life insurance policies with death benefits ranging from $2 million to $10 million. Keller then submitted fraudulent applications to the insurance companies by intentionally omitting or falsifying the applicant’s net worth, income, or source of premium payments. Further, Keller concealed that, in some cases, he secretly rebated to some applicants funds representing part of the commission payments fraudulently obtained from the life insurance carriers.
In addition to deceiving the life insurance companies, Keller inflated business expenses paid to his coconspirators in order to reduce his income and thus evade the payment of taxes that were lawfully due and owing. For example, Keller would issue checks in inflated amounts payable to a variety of companies controlled by individuals who assisted Keller in committing tax evasion. These coconspirators were paid for work related to the life insurance fraud (e.g., setting up life insurance trusts) and then kicked-back the inflated amount to Keller. In order to settle his tax liability, Keller agreed to pay $1 million to the IRS in connection with the inflated invoices.
Keller is scheduled to be sentenced on April 11, 2014, at 9:00 a.m. before U.S. District Court Judge Janis L. Sammartino.
DEFENDANTJEFFREY B. KELLER
SUMMARY OF CHARGESTitle 18, United States Code, Section 371 – Conspiracy to Commit Mail Fraud and Wire Fraud and to Defraud the United States by Impairing and Impeding the Lawful Functioning of the Internal Revenue Service. Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.
AGENCIESInternal Revenue Service – Criminal Investigation
Federal Bureau of InvestigationLexington, Missouri Resident Sentenced to 77 Months in Prison for Bank RobberyRead the Press Release
COUNCIL BLUFFS, IA - On January 28, 2014, Nathan Wayne Smith, a 48 year-old resident of Lexington, Missouri was sentenced by United States District Court Chief Judge James Gritzner to 77 months in prison followed by three years of supervised release for bank robbery, announced United States Attorney Nicholas A. Klinefeldt.
On October 18, 2013, after a three day trial, the jury found Smith guilty of robbing the Great Western Bank of Hamburg, Iowa. The evidence produced at trial showed that on June 11, 2012, Smith traveled from his home in Lexington, Missouri to Hamburg, Iowa, arriving at the Great Western Bank around 9:30 a.m. Smith approached a teller in the bank, placed a plastic bag on the counter in front of her and told her to fill the bag with money. After obtaining the money from the teller, Smith ran from the bank.
Smith was identified as the party responsible when Buckner, Missouri, police officers recalled stopping a vehicle on the afternoon of June 11, 2012, that matched the description of the vehicle disseminated after-the-fact by the Federal Bureau of Investigation. Buckner, Missouri, is located approximately 150 miles away from Hamburg, Iowa.
The investigation was conducted by the Fremont County Sheriff’s Office, the Buckner, Missouri Police Department, the Lexington, Missouri Police Department, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Leader in Scheme to Defraud Lowe’s Stores Sentenced to over 4 Years in PrisonRead the Press Release
Defrauded Lowe’s of More Than $464,000 by Calling Lowe’s Stores and
Pretending to be from Lowe’s IT DepartmentBaltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Lucerte “Lisa” Abellard, age 35, of Dobbs Ferry, New York, today to 53 months in prison, followed by three years of supervised release, for conspiracy to commit wire fraud in connection with a scheme to defraud Lowe’s stores. Judge Hollander enhanced Abellard’s sentence upon finding that she was a leader in the scheme and ordered Abellard to pay restitution of $410,989.95.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Brian Murphy of the United States Secret Service – Baltimore Field Office.
According to her plea agreement, Abellard called employees at Lowe’s stores around the United States, pretending to be from the “IT department” at Lowe’s headquarters, telling the Lowe’s employee that she received a report there were problems with a register at the Lowe’s store. She would then ask the employee to run a series of diagnostics on the register, often pretending to be able to see the tests remotely. The purported diagnostics ended with a “test” transaction that put a credit on a Lowe’s gift card – usually about $3,000 to $4,000. In reality, this “test” transaction put a credit onto a Lowe’s card possessed by Abellard or her co-conspirators. Abellard was usually successful in deceiving employees into believing she was calling from Lowe’s IT department because she was very familiar with Lowe’s internal procedures and systems – including the names of systems and databases routinely accessed by Lowe’s employees.
Abellard received a portion of value on the gift card she fraudulently credited from the co-conspirators to whom she sold the cards. After obtaining the fraudulent credit, Abellard would contact the co-conspirator that had paid her for the card, advise that person of the credit and that the card needed to be used quickly before Lowe’s detected the fraud. Phone records connect Abellard and her co-conspirators to the fraudulently obtained gift cards, and confirm that Abellard made most or all of the fraud calls to Lowe’s stores.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Justin S. Herring, who prosecuted the case.
Lakeland DVD Counterfeiter SentencedRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced John C. Gaglione, Jr. (49, Lakeland) to 33 months in federal prison for trafficking in counterfeit labels. As part of his sentence, the court entered a money judgment in the amount of $365,000, the proceeds of the charged criminal conduct. Gaglione was also ordered to pay $180,000 in restitution. He pleaded guilty on October 24, 2013.
Gaglione is the last of eight individuals sentenced for his involvement in a global counterfeit motion picture DVD investigation that began in Lakeland, and extended to the People's Republic of China.
According to court documents, in late 2010, Gaglione and co-conspirators began making bulk purchases of counterfeit motion picture DVDs. They purchased the counterfeit DVDs from Jian Huang a/k/a "China Glen," a supplier based in the People’s Republic of China, and his company called "TM Wholesale." Huang was apprehended in April 2012.
After Huang’s apprehension, Gaglione developed and acquired counterfeit DVDs from other sources of supply. After acquiring the counterfeit DVDs, Gaglione sold them to customers in the United States. He sold them online via Ebay, at a family run sports card store called Lakeland Sports and Collectibles, and from a flea market booth in Auburndale.
On August 10, 2012, Jian Huang pleaded guilty to conspiracy and trafficking in counterfeit goods. He was sentenced to 51 months in federal prison on November 2, 2012. The court also ordered Huang to pay restitution to the Motion Picture Association of America (AMPAA@) in the amount of $1,214,333.12. The MPAA is a trade association that represents certain motion picture, home video and television industry companies, including Sony Pictures Entertainment Inc.; Warner Bros. Entertainment Inc.; Paramount Pictures Corp.; Twentieth Century Fox Film Corp.; Walt Disney Studios Motion Pictures; and Universal Studios.
Co-conspirators Alex Lee Lim, Robert Edmond Mattie, James William Ray, Donald Kenneth Brown, Jr., Martin William Grenfell, and Christopher Alexander T. Clark each pleaded guilty to trafficking in counterfeit labels. On November 15, 2012, Lim was sentenced to 51 months in federal prison, and was ordered to pay restitution to the MPAA in the amount of $280,752.67. On November 30, 2012, Ray was sentenced to 46 months in federal prison, and was ordered to pay $261,541.28 in restitution to the MPAA. Ray was also ordered to forfeit $100,005 in cash seized at the time of his arrest. On December 6, 2012, Mattie was sentenced to probation for a term of 5 years, with the first 12 months to be served on home detention. On February 22, 2013, Grenfell was sentenced to 3 years' probation and Brown was sentenced to 18 months in federal prison and was ordered to pay $3,000 in restitution to the MPAA. Clark was sentenced on May 16, 2013, to 36 months’ probation and ordered to pay $6,000 in restitution to the MPAA.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Mark E. Bini.
KC Postal Carrier Indicted for Stealing MailRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., postal carrier was indicted by a federal grand jury today for stealing from the mail.
Shawn C. Henderson, 45, of Kansas City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.
Henderson was employed as a city carrier associate for the U.S. Postal Service since April 2013. Today’s indictment alleges that she stole $1,646 worth of EBT cards from customers on her mail route from April 20 to Aug. 7, 2013. EBT cards are like debit cards and are used to provide benefits under the Supplemental Nutrition Assistance Program (SNAP), also known as “food stamps,” which helps lower-income individuals and families buy food. Henderson allegedly used the EBT cards herself and gave some of the cards to a person identified in the indictment as “E.M.”
During that time, Henderson allegedly removed greeting cards, gift cards and EBT cards from the mail she was responsible to deliver. Henderson allegedly opened mail that wasn’t addressed to her with the intent to steal those items for her own use.
The indictment also alleges that Henderson stole and used an EBT card by resetting the PIN and assuming the rightful owner’s identity at various food outlets.
Today’s indictment charges Henderson with one count of stealing government property, one count of stealing mail and one count of aggravated identity theft. The indictment also contains a forfeiture allegation, which would require Henderson to forfeit to the government any proceeds obtained from the alleged offenses, including a money judgment of $1,656.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the U.S. Postal Service, Office of Inspector General and the U.S. Department of Agriculture, Office of Inspector General.Judge Hands Down Lengthy Sentence to Repeat Child PornographerRead the Press Release
PHILADELPHIA - Thaddeus Vaskas, 50, of Tunkhannock PA, was sentenced today to 14 years in prison for one count of possession of child pornography. Vaskas pleaded guilty to that charge on March 21, 2013. Vaskas is a repeat offender, having been sentenced to 20 months in prison for a 2001 conviction for possession of child pornography. Agents with the Department of Homeland Security searched the home in Bethlehem, PA, where he was living in 2007, and found multiple images of minors engaging in sexually explicit conduct on his computer.
In addition to the prison term, U.S District Court Judge Harvey Bartle, III, ordered Vaskas to pay a a special assessment of $100, and ordered 15 years of supervised release.
Vaskas is tied to “Operation Emissary.” 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 case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations, and was prosecuted by Assistant United States Attorney Paul G. Shapiro.
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PATTY HARTMAN, Media Contact, 215-861-8525Jacksonville Man Sentenced to 20 Years in Federal Prison for Producing Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan sentenced James Daniel Kasper (29, Jacksonville) to 20 years in federal prison for using a child to produce child pornography. Kasper was also ordered to serve a 20-year term of supervised release, following his incarceration, and to register as a sex offender. Kasper has been held in the custody of the United States Marshals Service since his arrest on March 20, 2013, in Jacksonville.
According to court documents, in February 2013, law enforcement officers in Tennessee arrested a registered sex offender on child pornography charges. Further investigation revealed that several hundred emails had been exchanged between this individual and others, many of which contained attached images and videos depicting child pornography. Investigators determined that one of the email accounts belonged to James Daniel Kasper and that Kasper had uploaded images of child pornography over the Internet and sent them to others by email, via a website whose server is outside of the United States.
On March 20, 2013, FBI agents and other law enforcement officers executed a federal search warrant at Kasper's apartment located on Sunbeam Road, in Jacksonville. During this search, agents seized a laptop computer and a thumb drive. Meanwhile, two agents contacted Kasper at his place of employment in Jacksonville. When interviewed, Kasper stated, among things, that while babysitting a 9 year-old child, he used his smart phone to produce sexually explicit photos of the minor child. After taking the photos of the child, Kasper uploaded the images over the Internet, onto a particular website and sent them to others via email. Kasper also stated that he used a peer-to-peer file sharing program to search for child pornography on the Internet.
The thumb drive seized at Kasper’s residence contained at least 49 images of child pornography that were produced by him. Evidence from Kasper’s email accounts were introduced during the sentencing hearing. The evidence showed that Kasper had traded images of child pornography, which he produced, over the Internet. In one particular email, Kasper stated that two of the pornographic images that he produced of the victim child were “just a sample of my own work.”
This case was investigated by the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Italian National Sentenced to Prison for Illegal Reentry Following DeportationRead the Press Release
Beckley, W.Va. – Francesco Gulino, an Italian national, was sentenced to 46 months in federal prison for illegal reentry into the United States after being deported, U.S. Attorney Booth Goodwin announced today. On April 20, 2011, Mr. Gulino was deported to his native country of Italy after completing a sentence for attempted felonious assault. Two years after his deportation, on April 20, 2013, agents with the Department of Homeland Security found Gulino residing in Raleigh County, West Virginia. Gulino admitted that he had been deported to Italy, but illegally reentered the United States by coming though Canada.
After Gulino has completed the sentence for illegal reentry, the United States Department of Homeland Security will take action to deport Guilino again.
The Department of Homeland Security conducted the investigation, assisted by the Raleigh County Sheriff’s Department. Assistant United States Attorney Erik S. Goes handled the prosecution. The sentence was imposed by United States District Judge Irene Berger.
Illegal Alien Indicted for Failure to Depart the United StatesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton Tuesday returned an indictment against Carlos Mendez, a citizen of Guatemala, charging failure to depart the United States.
According to United States Attorney Peter J. Smith, Carlos Mendez, age 44, a native and citizen of Guatemala, was charged with allegedly failing to comply with facilitating his departure from the United States after a final order of removal had been issued. In June 2013, an Immigration Judge in Philadelphia sustained a ruling that Mendez, who had entered the U.S. on a VISA in 1988, was not here legally and ordered him to be removed. Mendez then allegedly refused to comply with established removal procedures.
If convicted, Carlos Mendez faces up to four years imprisonment.
The case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 4 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.
Hartford Woman Who Illegally Received Social Security Benefits Sentenced to PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that NILDA BERMUDEZ, 54, of Hartford, was sentenced last week in Hartford federal court for illegally receiving nearly $200,000 in Social Security disability benefits. On January 22, U.S. District Judge Vanessa L. Bryant sentenced BERMUDEZ to six months of imprisonment, followed by six months of home confinement and two years of supervised release.
According to court documents and statements made in court, between 1988 and 1992, BERMUDEZ began receiving Social Security Administration Disability Insurance Benefits (DIB) based on a medical condition. In 1993, BERMUDEZ began working as a receptionist at law firm. After the Social Security Administration advised BERMUDEZ that she no longer would qualify for DIB benefits as a result of her income from the firm, BERMUDEZ entered false information into her employer’s records. As a result, her weekly paychecks were made out in another person’s name. Each year, BERMUDEZ concealed her fraud by preparing the other person’s tax returns, which reported the income BERMUDEZ received from the law firm as income earned by the other person.
From 1993 to April 2013, BERMUDEZ received approximately $199,330 in DIB payments. During this time, she also periodically filed forms with the Social Security Administration reaffirming her claim for DIB benefits.
BERMUDEZ was ordered to pay full restitution.
On September 23, 2013, BERMUDEZ waived her right to indictment and pleaded guilty to one count of theft of government property.
This matter was investigated by the Office of the Inspector General for the Social Security Administration and was prosecuted by Assistant U.S. Attorney Anastasia E. King.
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(203) 821-3722 [email protected]Gun Store Owner Guilty of Smuggling Ammunition and Firearm Magazines to MexicoRead the Press Release
LAREDO,Texas – Robert Jacaman Sr., 60, owner of Jacaman Guns and Ammo, has entered a plea of guilty to conspiring to smuggle firearm ammunition and magazines to Mexico, announced United States Attorney Kenneth Magidson. Jacaman, now a convicted felon, surrendered his federal firearms license, is no longer a firearms dealer and is prohibited from possessing firearms, ammunition and destructive devices.
According to the written plea agreement filed with the court, Jacaman admitted to unlawfully conspiring with others to fraudulently and knowingly export .223 caliber and 7.62 mm ammunition and high capacity rifle magazines designed to fit AR 15-type and AK47-type firearms, contrary to the Arms Export Control Act. Several violations Jacaman committed as part of the conspiracy were discussed with federal U.S. Magistrate Judge Diana Song Quiroga, who presided over the entry of the guilty plea this morning.
Jacaman admitted being in direct contact with Oswaldo Roberto Borrego-Ramos aka “Baldo” during the conspiracy, who negotiated the purchase and delivery of the ammunition and firearm magazines with Jacaman. Borrego-Ramos would then send couriers to deliver cash to Jacaman and others to pick up the items to smuggle them into Mexico. In one instance, Jacaman even advised Borrego-Ramos of an outstanding balance which he had not paid for prior sales.
Another co-defendant, Alejandro Rivera-Ruiz, admitted delivering more than $100,000 to Jacaman on behalf of Borrego-Ramos. According to court documents, Borrego-Ramos told agents he was working for “Los Zetas” Mexican criminal organization, supplying them with firearms, ammunition and firearm accessories such as firearm magazines from various sources, including Jacaman.
On March 14, 2012, authorities arrested two Mexican nationals who had just received 27,000 rounds of .223 caliber ammunition from Jacaman’s gun store. They admitted they were on their way to deliver the ammunition to an awaiting Mexican truck driver who would smuggle the ammunition to Mexico. They admitted working for Rivera-Ruiz and Borrego-Ramos.
Borrego-Ramos, Rivera-Ruiz and the two Mexican Nationals have all pleaded guilty and are serving their sentences in federal prison for their respective crimes.
Others originally named with Jacaman in the indictment, Atanacio “None” Gonzalez-Torres, 43, Jose Luis Estrada, 23, and Carlos Picazio, 30, have also pleaded guilty for their roles in this conspiracy and are pending sentencing. Jacaman was permitted to remain on bond pending his sentencing hearing, set for May 27, 2014, at 9:00 a.m. before U.S. Judge Marina Garcia Marmolejo. At that time, he faces a maximum sentence of five years in federal prison and a possible $250,000 fine.
The ammunition and magazines referenced in this indictment were intercepted before being delivered to Mexico.
The case is being investigated by Homeland Security Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance of the Laredo Police Department. One of HSI's top priorities is the dismantling of organizations involved in the smuggling of firearms to Mexican drug cartels. The collective expertise and authorities of our law enforcement partners during this investigation significantly contributed to preventing hundreds of rifles and handguns from reaching violent criminal organizations and prosecuting those who were responsible. Several police officers have been cross-designated as ATF Task Force officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Jose Homero Ramirez is prosecuting this case.
Grand Rapids Man Sentenced to 15 Years in Federal Prison for Seeking Out Child Pornography While on Supervised Release for A Prior Child Pornography ConvictionRead the Press Release
GRAND RAPIDS, MICHIGAN – Jack Alan Groenendal, 54, of Grand Rapids, Michigan was sentenced on January 27, 2014 to 15 years in federal prison for attempting to receive child pornography, and 10 years for attempting to access child pornography with the intent to view it, U.S. Attorney Patrick A. Miles, Jr. announced today. The sentences will run concurrently. In addition to the prison term, Chief U.S. District Judge Paul Maloney imposed an eight-year term of supervised release that will commence once Groenendal is released from imprisonment. Groenendal will also be required to maintain his registration as a sexual offender.
A jury convicted Groenendal of these offenses in October of 2013. The evidence at trial showed that between July 6 and August 9, 2011, Groenendal made a deliberate and sustained effort to seek out child pornography on the Internet and to bring that child pornography onto his computer where he could view it, control it, and use it for his own purposes. At the time Groenendal committed these offenses, he was on supervised release for a prior conviction for possessing child pornography. Groenendal’s probation officer uncovered his activity and enlisted the assistance of law enforcement. Groenendal’s computer was subsequently seized pursuant to a search warrant, and forensic analysis revealed the presence of child pornography on his hard drive.
U.S. Attorney Patrick A. Miles, Jr. underscored the seriousness of these offenses, noting that “the possession, receipt, transportation, distribution, and viewing of child pornography perpetuates the harm to the victims depicted in images, validates and normalizes the sexual exploitation of children, and fuels a market, thereby leading to further production of images. The seriousness of the offenses in this case is amplified by the fact that the defendant was under supervision for a previous child-pornography conviction at the time.”
The Department of Homeland Security, Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorneys Sean M. Lewis and Tessa K. Hessmiller prosecuted the case.
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Four More Defendants Sentenced in Southwest Idaho Drug Trafficking CaseRead the Press Release
Ten Sentenced; Eight Await Sentencing
BOISE – U.S. Attorney Wendy J. Olson announced today that four defendants were sentenced this week in federal court for their roles in a large-scale methamphetamine trafficking ring. Twenty defendants were charged in an 89-count indictment filed in May 2013. Ten defendants have been sentenced in the case; eight others have pleaded guilty to the same or related charges and are awaiting sentencing.
U.S. District Judge Edward J. Lodge sentenced Randy Beal, 59, of Nampa, Idaho, on Monday to 57 months in federal prison followed by three years of supervised release for possession with intent to distribute a controlled substance. Jerry Lee Holmberg, 65, of Marsing, Idaho, was sentenced to 41 months in prison followed by two years of supervised release for possession with intent to distribute a controlled substance. Cynthia Prado, 32, of Boise, was sentenced to 30 months in prison followed by three years of supervised release and 80 hours of community service for interstate transportation in aid of racketeering enterprise. Beal, Holmberg and Prado were also ordered to serve 80 hours of community service in lieu of a fine after they are released from prison. They pleaded guilty to the charges on October 8, 2013.
Steven Richard, 42, of Eagle, Idaho, was sentenced this morning to two years’ probation for possession of a user amount controlled substance. He pleaded guilty on October 23, 2013.
Co-defendant Lena Kettle, of Caldwell, Idaho, is set for trial on March 11, 2014. The remaining defendant, David Echevarria, is in state custody; an arraignment date has not been set.
According to court proceedings, the conspiracy involved two distribution cells in the Treasure Valley: one led by Jason Holmberg, the other by Andrew Polney. Kenneth Jones in Sacramento, California, supplied multi-pound shipments of methamphetamine for transport to the Treasure Valley for distribution; also, a drug debt was owed by Jason Holmberg and unpaid for a large amount of methamphetamine obtained from Mexican sources of supply transshipped through Phoenix, Arizona, and transported to Idaho by Beal. The group operated from about June 2012 through the time of the various arrests on April 18, 2013 and May 23, 2013.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Nampa Police Department and Boise Police Department. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Land Management, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Former Postal Worker Pleads Guilty to Stealing Video Games from the MailRead the Press Release
BOSTON – A former postal worker pleaded guilty today to stealing more than 200 video games from the mail.
James L. White, 68, of Dorchester, pleaded guilty before U.S. District Judge Douglas P. Woodlock to theft of mail. Sentencing is scheduled for May 8, 2014. The statutory maximum penalty for the crime is five years in prison, three years of supervised release and a $250,000 fine.
From July through November 2012, White, while working as a mail handler at the Boston General Mail Facility, stole GameFly video games from the mail. He resold those video games to Gamestop, a videogame and software retailer. During the course of the theft, White stole over 200 video games worth several thousand dollars.
United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.
Former Network Engineer Pleads Guilty to Crashing Employer's Computer SystemRead the Press Release
Defendant faces prison time; must repay EnerVest for damage to computer system
CHARLESTON – United States Attorney Booth Goodwin announced today that a former network engineer at Charleston-based EnerVest Operating pleaded guilty to intentionally causing damage to his employer’s computer system. Ricky Joe Mitchell, 34, now of Mableton, GA, admitted that in June of 2012, shortly after he learned that he was going to be fired, he remotely accessed EnerVest’s computer system and reset the network servers to factory settings. As a result of his intentional conduct, EnerVest was unable to fully communicate or conduct business operations for approximately 30 days. In addition, data that the company thought had been backed up could not be retrieved.
“In 2014, it goes without saying that any business’s electronic communication capabilities and data storage are nearly as important to its success as the product or service it provides,” said U.S. Attorney Goodwin. “The prosecution of Mr. Mitchell for his reckless conduct underscores my commitment to help protect small businesses from any threat – both inside and out.”
Mitchell will be sentenced by the Honorable John T. Copenhaver, Jr. on April 24, 2014 to a maximum term of imprisonment of ten years and three years supervised release. Mitchell will also be ordered to pay restitution for the damage caused by his criminal conduct.
The U.S. Secret Service conducted the investigation. United States Attorney Goodwin and Assistant United States Attorney Thomas C. Ryan are handling the prosecution.
U.S. Attorney Booth Goodwin announced the Business Protection Initiative in November 2010. Business protection is a primary initiative of the U.S. Attorney’s Office that focuses on prosecuting individuals who defraud West Virginia businesses.
Former NYPD Officer Sentenced in Manhattan Federal Court for Tax Fraud and Identity TheftRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JONATHAN WALLY, a Police Officer with the New York City Police Department (“NYPD”) at the time of his offenses, was sentenced today in Manhattan federal court to five years of probation for tax fraud and identity theft offenses related to his preparation and filing of false and fraudulent U.S. individual income tax returns (“tax returns”). WALLY’s probation will include six months of intermediate confinement and one year of electronic monitoring to run concurrent to confinement. WALLY pled guilty in August 2013, and was sentenced today by U.S. District Judge Lorna G. Schofield.
According to court filings and statements made in court:
From 2003 until his arrest in this case in April 2013, WALLY was employed by the NYPD as a Police Officer assigned to the 34th precinct located in the Washington Heights/Inwood section of Manhattan. Since at least 2008, he also served as a tax preparer registered with the Internal Revenue Service (“IRS”). Although the NYPD requires its Police Officers to obtain written authorization to engage in off-duty employment, WALLY never sought or obtained such authorization to work as a tax preparer.
From 2010 through April 2012, WALLY defrauded the IRS by causing it to issue tax refunds to other individuals based on fraudulent and false tax returns he prepared and filed on behalf of those taxpayers. Among other things, the tax returns claimed deductions for false dependents. During that time period and continuing through January 2013, WALLY further defrauded the IRS by preparing and filing fraudulent and false tax returns on his own behalf that claimed false dependents and failed to declare certain income. In connection with this fraudulent tax return scheme, WALLY obtained personal identifying information and Social Security cards of children and declared those children as dependents on the false and fraudulent tax returns he prepared and filed on behalf of others and himself.
As a result of the false and fraudulent tax returns WALLY prepared and filed on behalf of other individual taxpayers, the IRS paid these taxpayers at least $146,818 in fraudulent tax refunds. The false and fraudulent tax returns prepared and filed by WALLY on his own behalf and his failure to declare the income he earned as a tax preparer caused the IRS to pay him at least $48,990 in fraudulent tax refunds. In total, WALLY’s tax scheme defrauded the IRS in the amount of $195,808.
In addition to probation and intermediate confinement, Judge Schofield ordered WALLY, 34, of Bronx, New York, to pay a $400 special assessment fee. WALLY was also ordered to pay restitution of, and agreed to forfeit to the IRS, the amount of $195,808.
Mr. Bharara praised the investigative work of the IRS, the New York State Department of Taxation and Finance, and the Internal Affairs Bureau of the NYPD.
This prosecution is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecution.
Former Memphis Patrolman Sean Mcwhirter Sentenced for Transporting Prostitutes to TunicaRead the Press Release
Memphis, TN – Sean McWhirter, 30, of Memphis, TN, was sentenced today to one year and one day in federal prison following his guilty plea to one count of transportation of individuals in interstate commerce for the purpose of prostitution (Mann Act), announced United States Attorney Edward L. Stanton III, and A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation.
According to the facts alleged in the indictment and revealed during plea and sentencing hearings, on September 13, 2012, while on duty and in his patrol car, McWhirter agreed to transport three women to a location in Tunica, MS for the purpose of prostitution. Subsequently, on September 16, 2012, while off duty, McWhirter delivered two women from Memphis to a hotel in Tunica. Upon entering the room with the women, McWhirter was arrested by Special Agents and Task Force Officers of the FBI. McWhirter was a five-year veteran of the Memphis Police Department who was serving as a patrolman at the time of his arrest.
McWhirter pleaded guilty to the charge on October 7, 2013. In addition to the prison sentence, U.S. District Judge S. Thomas Anderson ordered McWhirter to serve five years of supervised release. There is no parole in the federal system.
This crime was investigated by the Tarnished Badge Task Force, which is comprised of investigators from the Federal Bureau of Investigation, Memphis Police Department, and Shelby County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Brian K. Coleman on behalf of the government.Former Iowa State Professor Pleads Guilty to False StatementsRead the Press Release
DES MOINES, IA – United States Attorney Nicholas A. Klinefeldt announced that Dr. Palaniappa Molian, of Ames, pled guilty on January 24, 2014, to two felony counts relating to false statements made to the National Science Foundation.
According to the written plea agreement, in December of 2009, Dr. Molian, as a principal investigator on a National Science Foundation grant to Iowa State University, submitted a reimbursement expense voucher that contained false statements. Dr. Molian claimed in a requested reimbursement that he traveled to Boston, Massachusetts, to work on an Iowa State University National Science Foundation grant research experiment. Dr. Molian admitted in the plea agreement that he did not perform any work on the grant research experiment in Boston, and that he traveled to Boston for unrelated reasons.
The plea agreement also provides that Dr. Molian, in his capacity as president of Photon Energy Technology, submitted a Small Business Innovation Research Program Report to the National Science Foundation on July 1, 2010, that contained false statements. Dr. Molian claimed and sought payment for approximately $20,000 in laser rental costs, when he had access to a laser at no cost. Dr. Molian spent the excess grant funds he was awarded on unrelated personal expenses.
Dr. Molian will be sentenced on April 25, 2014, before the Honorable James E. Gritzner. Making a false statement to a federal agency carries a maximum sentence of imprisonment of up to five years and a maximum fine of $250,000.
This case was investigated by the National Science Foundation Office of the Inspector General and the Federal Bureau of Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Corrections Officer Sentenced for His Role in <br /> Providing Armed Security for Drug TransactionsRead the Press Release
A former Puerto Rico Department of Corrections officer was sentenced today to serve 811 months in prison for his role in providing armed security for three drug transactions.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Carlos Cases of the FBI’s San Juan Field Office made the announcement.
Bernis Gonzalez Miranda, 27, was sentenced by U.S. District Judge Juan Perez Gimenez of the District of Puerto Rico. He was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals, as part of the FBI undercover operation known as Guard Shack.
In April 2012, a federal jury in San Juan found Gonzalez Miranda guilty of three counts of conspiracy to possess with intent to distribute more than five kilograms of cocaine, three counts of attempting to possess with the intent to distribute more than five kilograms of cocaine and three counts of possessing a firearm in furtherance of a drug transaction. According to the evidence presented in court, Gonzalez Miranda provided security for what he believed were illegal cocaine deals on June 15, July 2, and July 7, 2010. In fact, the purported drug transactions were part of an undercover FBI operation. On those days, the defendant’s actions included providing armed protection for the deals and escorting the buyer into and out of the transaction.
In return for the security he provided, Gonzalez Miranda received a cash payment of $2,000 for each transaction, and at sentencing he was ordered to forfeit the $6,000 he received.
The case was investigated by the FBI. The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.Former Austin Police Officer Enters Guilty Plea to Providing False Information to Federal InvestigatorsRead the Press Release
Former Austin Police Officer Jermaine Gaspard, age 34, faces up to five years in federal prison after pleading guilty this afternoon to making a false statement to federal authorities announced United States Attorney Robert Pitman, U.S. Secret Service Acting Special Agent In Charge Ben Bass, Federal Bureau of Investigation Special Agent In Charge John Boles, San Antonio Division, and Austin Police Chief Art Acevedo.
Appearing before United States Magistrate Judge Andrew Austin in Austin this afternoon, Gaspard admitted that he made a false statement to federal authorities conducting a credit card fraud investigation. According to the factual basis filed in this case, in April 2013, Gaspard knowingly accessed the mobile data terminal inside his Austin Police Department (APD) patrol car and performed an unauthorized database check on a subject. Subsequently, Gaspard showed the subject the APD report he discovered, which included the fact that there was a pending indictment related to the subject’s fraudulent use of a credit card. When questioned by federal authorities, Gaspard denied providing the information to the subject.
Gaspard is out on bond pending sentencing. No sentencing date has been scheduled.
This investigation was conducted by agents with the U.S. Secret Service and the Federal Bureau of Investigation together with the Austin Police Department. Assistant United States Attorney Gregg N. Sofer is prosecuting this case on behalf of the Government.
Florida Attorney Sentenced to Six Months in Prison for Laundering Purported Stock Fraud ProceedsRead the Press Release
Michael J. Scaglione, Esq., an attorney in Coral Gables, Florida, was sentenced today in federal court in Brooklyn, New York, to six months in prison to be followed by four months of home detention with electric monitoring to be served during a two-year term of supervised release. As part of the sentence, Scaglione was ordered to perform 200 hours of community service and to forfeit approximately $31,950 to the government. In October 2013, Scaglione pleaded guilty to a money laundering charge for laundering over $750,000, which he believed were the proceeds of a penny stock fraud scheme. In July 2013, Scaglione was arrested after taking possession of $500,000 in cash from an undercover federal agent posing as a criminal stock promoter in connection with a government sting operation.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Toni Weirauch, Special Agent in Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS).
“Abusing his position as an attorney by laundering money, Scaglione not only violated the code of ethics by which he was bound – he also broke the law. Those attorneys who seek to misuse the trust that is instilled in them by the public to perpetrate crime are on notice that they will be held accountable for their crimes,” stated United States Attorney Lynch. Ms. Lynch thanked the FBI and the IRS for their work on this investigation.
From approximately February to July 2013, Scaglione exploited his position as an attorney to launder money through an escrow account for an undercover law enforcement agent who posed as a corrupt stock promoter. Scaglione believed that the undercover agent was a middleman for a network of corrupt stock brokers who fraudulently inflated prices of worthless stock in exchange for high commissions. Scaglione agreed to launder what he believed were proceeds of this stock fraud through his attorney escrow account to hide that money from the United States Securities and Exchange Commission and the IRS. In total, Scaglione funneled over $750,000, including $88,000 in cash given to him in a Federal Express box in the lobby of a Miami Beach hotel, through the escrow account into the undercover agent=s bank account in Long Island, New York. Scaglione carefully structured the movement of these funds to avoid triggering financial reporting requirements. In exchange, Scaglione collected over $25,000 in fees. In recorded conversations, Scaglione assured the undercover agent that their conversations were “completely privileged” and that his money was “safe” with Scaglione. When the undercover agent explained to Scaglione that he did not “want to go to jail,” Scaglione stated to the undercover agent that the escrow account was “tight as can be.” On the day of his arrest, Scaglione accepted an additional $500,000 in cash from the undercover agent, which Scaglione believed to be proceeds from the stock fraud, at a hotel in Miami Beach, Florida.
The government’s case is being prosecuted by Assistant United States Attorney Jacquelyn Kasulis.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
MICHAEL J. SCAGLIONE
Age: 42
Residence: Miami Springs, Florida
E.D.N.Y. Docket No. 13-CR-553
Fleming Island Man Pleads Guilty in Federal Court to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Jimmy Laverne Holmes (57, Fleming Island) has pleaded guilty in United States District Court, in Jacksonville, to receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years in federal prison, and a potential life term of supervised release. Holmes has been in custody since his arrest on September 24, 2013. At the time of his arrest, Holmes stated that he worked at the Barco-Newton YMCA in Fleming Island, where he taught sports to children. A sentencing hearing has not yet been set.
According to court documents, an agent with the Federal Bureau of Investigation, in Jacksonville, began an investigation to identify individuals in that area that had access to and/or were trading images and videos of child pornography over the Internet. Through his investigation, the agent determined that a host computer in the Jacksonville area, using a particular Internet Protocol (IP) address, was hosting images of child pornography via a particular peer-to-peer file sharing program. The agent made successful connections to the host computer and successfully downloaded several video files directly. The downloaded files contained depictions of child pornography. Further investigation revealed that the subscriber information to the IP address resolved to a particular residence located in Fleming Island, Florida, where Holmes resided.
On September 24, 2013, FBI agents and other law enforcement officers executed the search warrant at Holmes= residence and seized several computers and other items of electronic media. At the residence, Holmes told the agents that he knew child pornography to be both illegal and morally unjustifiable, and was recently downloading and watching child pornography two or three times per week. Holmes further stated that he has tried to cease such activities repeatedly, but has not been able to abstain indefinitely. According to Holmes, he uses child pornography for “personal use” and further noted, “I like to watch it.” Subsequent analysis of Holmes' computer media revealed that it contained a total of 174 videos and 247 images depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Final Defendant Convicted in Methamphetamine Distribution Conspiracy Is Sentenced to Serve A Total of 240 Months in Federal PrisonRead the Press Release
Defendant Convicted on Drug Conspiracy and Federal Firearm Charges
WICHITA FALLS, Texas — Darren Scott Murphy, 26, of Electra and Wichita Falls, Texas, was sentenced yesterday, by U.S. District Judge Reed C. O’Connor, following his guilty plea in July 2013 to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine and one count of being a felon in possession of a firearm. Judge O’Connor sentenced Murphy to 240 months on the drug count and 120 months on the firearm count, to run concurrently. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
All seven defendants charged in the case pleaded guilty and all have been sentenced:
Anthony Rueben Johnston, 28, to 480 months in federal prison
Rachel Dawn Billen, 21, to 36 months
Louis Griego, Jr., 44, to 168 months
Janis Hernandez, 31, to 136 months
James Allen Holley, 34, to 142 months
Christina Gail Thompson, 32, to 42 monthsAccording to documents filed in his case, Murphy admitted that on multiple occasions, from at least August 4, 2012 through February 21, 2013, he received multi-ounce quantities of methamphetamine from supply sources in the Dallas-Fort Worth area and elsewhere, and distributed it to numerous customers in the Electra and Wichita Falls, areas.
Murphy admitted that on the evening of December 2, 2011, when the vehicle he was driving was stopped on by officers with the Fort Worth Police Department, he ran when he exited the vehicle. While being apprehended a short distance from the vehicle, Murphy yelled to the vehicle’s passenger, “Get the pistol! Get the pistol!” One of the officers located a silver revolver lying in the road beneath the driver’s side of the vehicle.
He further admitted that on August 4, 2012, in Clay County, Texas, deputies with the Clay County Sheriff’s Office initiated a traffic stop on a car in which he was the front-seat passenger. He had approximately 81.6 grams of methamphetamine hidden in a fast food restaurant bag in the front seat.
He also admitted that on November 6, 2012, in Wise County, a trooper with the Texas Department of Public Safety initiated a traffic stop on a car driven by co-defendant Johnston in which Murphy was the front-seat passenger. Law enforcement seized a small amount of methamphetamine and approximately $10,015 in cash. Murphy further admitted that he attempted to obstruct the investigation of this crime.
In addition, Murphy admitted that he conspired with Johnston regarding the methamphetamine that law enforcement recovered during the execution of a state search warrant on February 14, 2013, at a residence in Wichita Falls shared by Johnston and co-defendant Billen. Murphy admitted that he possessed that methamphetamine with the intent to distribute it. Law enforcement also recovered handwritten notes inside the residence that identified customers who owed Murphy approximately $10,925 for methamphetamine purchases.
The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Mary F. Walters prosecuted.