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Thursday 5 December 2013
Cupertino Couple Indicted in Multi-Million Dollar Scheme to Export Stolen Luxury Cars to AsiaRead the Press Release
SAN JOSE – A federal indictment was unsealed today charging Yujen Chen and Maria Chen, husband and wife, with twenty-four felony violations, including wire fraud, international money laundering, exportation of stolen vehicles, and identity theft, arising out of their ownership of 888 Auto Corporation, announced United States Attorney Melinda Haag.
According to the indictment, Yujen Chen, 58, and Maria Chen, 56, of Cupertino, are alleged to have used their automotive business to fraudulently lease luxury vehicles, including vehicles from Porsche, Mercedes-Benz, Audi, BMW, and Toyota, and then to export those vehicles abroad. As part of the scheme, the Chens recruited friends and associates to serve as straw lessees, and sometimes paid them $500 to lease cars on their behalf. Subsequently, the Chens took custody of the cars, and promised the straw lessees they would make the car payments. Instead, the Chens exported the cars, and never paid off the lease obligations. The Chens also used without permission the identities of others to lease cars.
The Chens acted as vehicle brokers, and received money from people to purchase vehicles on their behalf. However, instead of paying the dealers the money received from the purchasers the Chens allegedly used the identities of these purchasers, without authorization, to lease or finance the vehicles, and kept the money for themselves.
The amount of money from the fraud exceeds approximately $3.3 million.
Yujen and Maria Chen were arrested on December 4, 2013. They made their initial appearance in federal court in San Jose today, and were released from custody to home confinement. The defendants next scheduled appearance is on December 10, 2013at 8:30am for further bail review before The Honorable Paul S. Grewal, United States Magistrate Judge.
The maximum statutory penalty for each count of wire fraud, and conspiracy to commit wire fraud, in violation of 18 U.S.C. §§ 1343 and 1349, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The maximum statutory penalty for each count of international money laundering, in violation of 18 U.S.C. § 1956(a)(2)(A) is 20 years’ imprisonment and a fine of $500,000 or twice the value of the monetary instrument or funds involved. The maximum penalty for each count of exportation of stolen vehicles, in violation of 18 U.S.C. § 553(a)(1), is 10 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss, plus restitution. The maximum penalty for each count of identity theft, in violation of 18 U.S.C. § 1027(a)(7), is 15 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss, plus restitution. The maximum penalty for each count of aggravated identity theft, in violation of 18 U.S.C. § 1028A, is twenty-four months imprisonment consecutive to any other sentence of imprisonment imposed. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Daniel Kaleba is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Nina Burney and Elise Etter. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigative Division; the California Department of Motor Vehicles; the Federal Bureau of Investigation; the United States Customs and Border Protection; and the California Highway Patrol.
Please note, an indictment contains only allegations against a person and, as with all defendants, Yujen Chen and Maria Chen must be presumed innocent unless and until proven guilty.
(Chen indictment )
Coshocton Pharmacist Sentenced to More Than Four Years in Prison for Health Care FraudRead the Press Release
A Coshocton pharmacist was sentenced to more than four years in prison and ordered to pay more than $2.1 million in restitution related to health care fraud, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.
Barbara Elise Miller pleaded guilty earlier this year in federal court to to five counts of health care fraud and one count of adulteration of drugs after an investigation found that she fraudulently received more than $2 million from state, federal, and private medical insurance companies by way of fraudulent billing practices.
“This defendant not only defrauded victims out of millions of dollars, but her adulteration of drugs also caused health complications for a child,” Dettelbach said.
"This defendant likely thought she could get away with these crimes, but there are checks and balances in place to make sure that those engaging in heath care fraud don't get away with it," DeWine said.
The crimes happened during Miller's time as the owner and operator of Coshocton's Three Rivers Infusion and Pharmacy Specialists, a medial infusion supply company which also provided home health services and medical supplies. Between 2003 and 2009, Miller knowingly and willfully executed a scheme to defraud health care benefit programs such as Ohio Medicaid, Medical Mutual of Ohio, Anthem Blue Cross/Blue Shield of Ohio, TriCare, and Medicare, according to court documents.Miller filed more than $1 million worth of claims for services using a false provider name, overstated the amount of nursing time needed to provide certain injections, and made fraudulent claims regarding the dosage and frequency of which certain drugs were dispensed, according to court documents.
Miller also altered the purity, quality, and strength of the drug Kineret, which is used to reduce the pain and swelling associated with moderate to severe rheumatoid arthritis, according to court documents.
The case was prosecuted by Assistant U.S. Attorney Rebecca Lutzko and attorneys with Ohio Attorney General DeWine's Health Care Fraud Section. The case was investigated by Attorney General DeWine's Medicaid Fraud Control Unit, the Ohio Department of Insurance, the United States Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation.
Conspirator in Bank Fraud Scheme Sentenced to over 2 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Olumide Babafemi Ogunmakinwa, age 47, of Brandywine, Maryland, today to 28 months in prison, followed by five years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft in connection with a bank fraud conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.
According to Ogunmakinwa’s plea agreement, between February 2011 and March 2011, Ogunmakinwa and his co-defendants created counterfeit checks and stole money using misappropriated bank account information and the personal identifying information of individuals without their knowledge or consent. Specifically, co-conspirator Nathan Silla and other co-conspirators opened bank accounts at financial institutions in their own names, in false names, in the name of a spouse and in the names of corporations they controlled. Silla and the co-conspirators obtained checks from victim individuals and corporations, which they washed to remove the actual payees’ names listed on the checks, then printed the names of a conspirator, false names of a conspirator, or a company controlled by a conspirator onto the washed checks. Ogunmakinwa and other co-conspirators then deposited these altered checks into accounts controlled by conspirators, including accounts controlled by Ogunmakinwa. In addition, Silla and other co-conspirators misappropriated the name and bank account numbers of victim individuals and companies by printing that information onto counterfeit checks, which Ogunmakinwa and others deposited into accounts that they controlled at various bank branches in Montgomery and Prince George’s County, Maryland, and in Washington, D.C., thereby drawing funds off of the victims’ accounts. The conspirators then wrote checks on the accounts that contained victim funds, and either cashed them or deposited those checks into other accounts they controlled.
Ogunmakinwa deposited, cashed, and wrote at least nine fraudulent checks totaling approximately $97,000. The offense involved approximately 10 victims.
Nathan Silla, age 40, of Glenn Dale, Maryland, previously pleaded guilty to his role in the scheme and was sentenced to 12 years in prison, and ordered to pay $331,499.21 in restitution.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Jefferson M. Gray, who prosecuted the case.
Concho County Resident Sentenced to 37 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
LUBBOCK, Texas — Gary Edward Larock, Jr., 35, most recently a resident of Eden, Texas, was sentenced today by U.S. District Judge Sam R. Cummings, to 37 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Larock has been in custody since his arrest in June 2013 on a related criminal complaint. He pleaded guilty in August 2013 to an indictment charging one count of failure to register as a sex offender.
In August 2005, Larock was convicted in New York of third-degree rape, a felony. He was notified that based on that conviction, he was required to register as a sex offender under the Sex Offender Registration and Notification Act. Larock left New York and traveled to California, where, in December 2012, he was arrested by the San Joaquin County Sheriff’s Office on an outstanding warrant from New York for failing to comply with sex offender registration requirements in that state. He was released from jail in California in early February 2013 and traveled to Eden, Texas, where he gained employment. Larock failed to register as a sex offender while living and working in Eden, Texas.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Marshals Service, the Concho County Sheriff’s Office and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Columbia Man Pleads Guilty to Theft from General Motors Spring Hill Facility and Filing A False Tax ReturnRead the Press Release
Anthony Praino, 51, of Columbia, Tennessee, pleaded guilty yesterday in U.S. District Court to interstate transportation of stolen property and filing a false tax return, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The charges stemmed from a joint investigation conducted by the Maury County Sheriff’s Office, the FBI and the IRS-Criminal Investigation, which revealed that in 2011 and 2012, Praino stole nearly a million dollars’ worth of equipment from the General Motors (GM)Spring Hill, Tenn. Plant and then failed to disclose to the IRS the $145,000 profit he received from the sale of the stolen equipment.
“Praino stole from his employer and cheated on his taxes in a manner that will always be addressed by the United States Attorney’s Office and its local, state and federal law enforcement partners,” said U.S. Attorney Rivera. “What was accomplished in this case illustrates the commitment of local and federal law enforcement agencies, working together to bring to justice those placed in a position of trust who choose to commit fraud at a significant cost to their employers and to the public.”
Testimony presented at the guilty plea hearing before District Judge Todd Campbell established that in 2011 GM investigators discovered that a significant amount of expensive equipment was missing from their Spring Hill plant, where Praino was employed as a fork lift operator. Praino emerged as the prime suspect when GM investigators identified some missing equipment being advertised for sale on eBay, and then clandestinely purchased it.
When the equipment was delivered to them, the return address for the sender was determined to be Praino’s. GM referred the matter to the Maury Count Sheriff’s Office, who in turn alerted the FBI and the IRS, given the value and volume of the stolen property.
In April 2012, while agents were conducting surveillance, they observed Praino depositing a large parcel for delivery by a commercial shipping company. Agents quickly determined that the package contained expensive, stolen GM equipment, and was to be delivered to Thailand. Agents obtained and executed a search warrant for Praino’s home in Columbia, Tenn. and found more equipment that had been stolen from the Spring Hill GM facility, which was worth over $500,000.
Follow up investigation disclosed that Praino had received more than $145,000 from selling the stolen GM equipment, which he failed to disclose when filing his tax return. He owed, but failed to pay about $48,000 in additional income tax for that income, which constituted a second separate federal crime. Praino faces a maximum of 13 years in prison and an order of restitution.
“IRS Criminal Investigation Special Agents have both law enforcement and financial
investigative expertise, which makes them uniquely qualified to assist state and federal law enforcement agencies with these types of investigations by following the money, added Christopher A. Henry, Special Agent in Charge of the IRS Nashville Field Office. “Often times, in addition to the initial scheme to defraud, federal tax laws are also violated which can lead to additional jail time. We are proud to work with our law enforcement and prosecutorial partners at the U.S. Attorney's Office, the FBI and the Maury County Sheriff's Office to obtain today's result and hold those responsible accountable for their actions.”
"Today's guilty plea is a prime example of how law enforcement from different agencies and departments can pool their collective operational and investigative efforts and resources to bring the most egregious financial crimes facilitators to justice in all of our communities. The thefts from the General Motors Spring Hill Plant not only represent thefts from General Motors, but from each and every American taxpayer as well," said A. Todd McCall, Special Agent in Charge of the FBI Memphis Division. “The FBI is proud to work investigations such as this alongside the U.S. Attorney's Office, The IRS Criminal Investigation Division, and the Maury County Sheriff's Office to bring these types of criminal violators to justice
The case was investigated by the FBI, the IRS-Criminal Investigation and the Maury County Sheriff’s Department. The government was represented by Assistant U.S. Attorney Hilliard Hester.Cleveland Woman Sentenced to Nearly Four Year in Prison for Financial CrimesRead the Press Release
A Cleveland woman was sentenced to nearly four years in prison and ordered to pay $78,004 in restitution for financial crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jocelyn Hale, 32, was sentenced to 45 months of incarceration after pleading guilty in October to one count of conspiracy to commit bank fraud and money laundering, one count of conspiracy to commit wire fraud and money laundering, one count of conspiracy to commit mail fraud and money laundering, four counts of mail fraud, and one count of aggravated identity theft.
Hale’s co-defendant, Angelique Bankston, 42, of South Euclid, was convicted by a jury on November 21, 2013 after almost a three week trial of all 23 counts against her, including the counts listed above and one count of wire fraud, five counts of bank fraud, four additional counts of mail fraud, four additional counts of aggravated identity theft, one count of money laundering, and one count of making a false statement.
In her plea agreement, Hale admitted to using identities of several individuals without their authority, and assisting Bankston to defraud Citizens Bank, Lending Club Corporation, and
Wells Fargo Bank. Bankston and Hale funded one Wells Fargo Bank account with fraudulent checks totaling $13,027.22, and then attempted to quickly remove and launder the fraudulent proceeds.Bankston and Hale also funded a second Wells Fargo Bank account with a fraudulent tax return check in the amount of $6,172, and a Citizens Bank account with illegally obtained funds from a fraudulently obtained Lending Club loan in the amount of $30,000. Once the illegal obtain funds were deposited, Bankston and Hale again quickly attempted to remove and launder those funds. Finally, Hale admitted to assisting Bankston to defraud the Ohio Department of Job and Family Services by filing false and fraudulent claims for unemployment benefits using a fictitious company and fictitious employees based on stolen identities.
Bankston’s sentencing is currently scheduled for April 23, 2014 at 10:00 a.m. at the United States Federal Courthouse in Akron, Ohio.
This case was prosecuted by Assistant United States Attorney Mark S. Bennett and Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, and United States Postal Inspection Service offices in Cleveland.
Charging Document: U.S. V. Mikhail Kuleshov, Et Al.Read the Press Release
Kuleshov, Mikhail et al. 13 MAG 2711 Complaint
Carthage Apartment Manager Sentenced for Fraud, Money Laundering, False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carthage, Mo., apartment manager was sentenced in federal court today for a nearly $400,000 fraud scheme involving several apartment complexes.
Barbara J. Evans, 55, of Carthage, was sentenced by U.S. District Judge Gary A. Fenner to three years and five months in federal prison without parole. The court also ordered Evans to pay approximately $206,000 in restitution.
Evans was employed as a property manager for Preservation Housing Management (PHM), which is based in Boston, Mass., and owned the Deerfield Village, Highland Acres, Highland Meadows and Maplewood Manor apartment complexes in Carthage. PHM oversees these properties through its office in Kansas City, Mo.
On Oct. 3, 2012, Evans pleaded guilty to one count of wire fraud, one count of money laundering and one count of filing a false tax return.
Stolen Rent Scheme at Deerfield Village
When a low-income tenant rented an apartment at Deerfield Village and qualified for Section 8 rental assistance/subsidies, Evans generally calculated the move-in rent amounts correctly. However, when tenants reported an increased income, instead of reflecting the increased rent in the computer system, she delayed reporting the increased rent to PHM. As a result, tenants would pay the correct, higher rent amount to Evans, but Evans continued to provide the lower rent payments to PHM. Evans pocketed the difference between the higher rent payments she received from tenants and the lower amounts she passed on to PHM.
From 2003 through 2011, Evans fraudulently received net proceeds of approximately $206,069 from this scheme.
Construction Fraud Scheme
In May 2006, PHM discovered that Meeco Construction, a contractor hired by Evans to perform work on Deerfield Village and Maplewood Manor, was owned by her husband, Mike Evans. Meeco Construction had been performing work on the properties since October 2003. PHM's former president verbally reprimanded Evans and she was instructed to immediately discontinue using vendors related to PHM employees.
In September 2006, Evans, with the help of her daughter, Addison Kinney, created A.J. Construction. Evans created and submitted all A.J. Construction bids and invoices to PHM. PHM policy required two or three competing bids on any construction project over $5,000. Evans, through her capacity as manager, falsified and submitted fictitious competing bids and insurance documents to ensure A.J. Construction would get all of the construction contracts at the HUD subsidized properties she managed. From Sept. 28, 2006, to June 15, 2009, A.J. Construction received $191,922 for work completed at Deerfield Village, Highland Meadows, Highland Acres, and Maplewood Manor. A.J. Construction performed work only for PHM Properties.
Money Laundering
Evans knowingly concealed the proceeds of this wire fraud when she purchased and remitted money orders in the tenants' names. Evans admitted that she cashed or deposited tenants’ rent payments into her own bank account, then used those funds to purchase money orders for lesser amounts. Evans forged tenants’ signatures on the money orders and falsely represented those money orders to be their rent payments.
Tax Fraud
Evans admitted that she filed false federal income tax returns for the years 2006, 2007, 2008, 2009, and 2010 by failing to report $171,790 on her Form 1040, U.S. Individual Income Tax Returns, resulting in a total tax loss to the federal government of $28,737.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the HUD Office of Inspector General, the Missouri State Highway Patrol, IRS-Criminal Investigation and the Carthage, Mo., Police Department.California Man Pleads Guilty to Unauthorized Access Device FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Darnele J. Nelson, 32, of California, pleaded guilty to possessing 15 or more unauthorized access devices, before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum sentence of 10 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on May 5, 2013, Nelson was found with approximately 100 unauthorized access devices, including credit cards, debit cards and gift cards, as he attempted to enter Canada.The conviction is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and Customs and Border Protection, under the direction of Randy Howe, Acting Director of Field Operations.
Sentencing is scheduled for April 1, 2014 at 12:30 p.m. before Judge Arcara.California Businessman Sentenced to Prison for Conspiring to Defraud the IRSRead the Press Release
Gary Mach, of Palm Desert, Calif., was sentenced to 16 months in prison, two months of house arrest, and 18 months of probation and ordered to pay $270,725 in restitution to the Internal Revenue Service (IRS), the Justice Department and IRS announced today. Mach previously pleaded guilty to conspiracy to defraud the United States on Aug. 18, 2013.
Court documents state that, beginning around January 2002 and continuing through December 2010, Mach failed to report substantial income he earned from CSPS, a pool-servicing business operated throughout Riverside County. Mach and others established fictitious trusts which they used to receive income and hold assets in an attempt to conceal the assets and income from the IRS.
According to court documents, Mach purported to operate a trust called “Quintessential,” and directed that his paychecks be made payable to Quintessential. He also opened a bank account in the name of Quintessential where he deposited CSPS proceeds. Mach admitted that he did not report to the IRS any of the income he earned from CSPS between 2002 and 2010, and used Quintessential to conceal income from the IRS. In furtherance of the conspiracy, Mach also attempted to impede an IRS summons issued to a bank for business account records. Mach closed his bank account after the bank complied with the IRS summons. As set forth in the plea agreement, Mach admitted that his total unreported income for the tax years 2002 through 2010 was $1,410,430, upon which the total tax due and owed to the IRS is $270,275.
Assistant Attorney General Kathryn Keneally of the department’s Tax Division, commended the investigative efforts of the special agents of IRS-Criminal Investigation, who investigated the case, Tax Division Trial Attorneys Sonia M. Owens and Mark L. Williams, who prosecuted the case, and Assistant U.S. Attorneys Sandra R. Brown and Paul Rochmes of the U.S. Attorney’s Office for the Central District of California, who assisted in the prosecution.
Brownwood, Texas, Man Sentenced to 50 Years in Federal Prison for Producing and Receiving Child PornographyRead the Press Release
LUBBOCK, Texas — Jacob Aniceto Jose Villarreal, 29, of Brownwood, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 50 years in federal prison and a lifetime of supervised release, following his guilty plea in August 2013 to one count of production of child pornography and one count of receipt of child pornography. Villarreal has been in custody since his arrest in June 2013 on a related federal criminal complaint. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
On June 25, 2013, agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Villarreal’s home and five computers, two telephones and three thumb drives were found.
According to documents filed in the case, Villarreal used his cell phone to create a video of a minor male engaged in sexually explicit conduct. In addition, Villarreal admitted that he collected and traded images and videos of child pornography. Some of the child pornography was collected using peer-to-peer file-sharing software, but most of the images and videos depicting minors engaged in sexually explicit conduct were received and sent by way of his cell phone.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by ICE HSI, the U.S. Marshals Service and the Brown County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Baltimore Heroin Trafficker Exiled to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Jeffrey Cofield, age 26, of Baltimore, today to 12 years in prison followed by four years of supervised release for conspiring to distribute heroin. Judge Blake further entered an order that Cofield forfeit $58,531 seized on December 11, 2012 during the execution of search warrants.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.According to his plea agreement, from July to December 2012, Cofield engaged in the distribution of heroin in Baltimore City; and instructed coconspirators on how to store and prepare heroin, as well as the storage, collection and transfer of money received from the heroin distribution. The distribution of at least one kilogram or more of heroin was reasonably foreseeable to Cofield.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Vanda Maurice Gilmore, 30, of Mobile, was sentenced in federal court today on charges of possession with intent to distribute cocaine and using and carrying a firearm during and in relation to a drug trafficking felony. Judge William H. Steele imposed a sentence of 27 months imprisonment on the drug charge, which is to run consecutive to the sentence of 60 months imprisonment on the gun charge. The federal statute under which Gilmore was charged with illegally using and carrying the firearm requires by its terms a minimum mandatory sentence of 60 months which must run consecutive to any other sentence imposed. The judge also ordered that when Gilmore is released from his prison term, he will be placed on supervised release for five years. No fine was imposed, but Gilmore was ordered to pay a special mandatory assessment of $200.
The case was investigated by the Mobile County Street Enforcement Narcotics Team, the Mobile Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Antiques Dealer Sentenced to 37 Months in Prison for Wildlife SmugglingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Robert G. Dreher, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Dan Ashe, the Director of the U.S. Fish and Wildlife Service, announced today that QIANG WANG, a/k/a Jeffrey Wang, a New York antiques dealer, was sentenced in Manhattan federal court to 37 months in prison for his role in a conspiracy to smuggle Asian artifacts made from rhinoceros horns and ivory and violate wildlife trafficking laws. WANG was arrested in February 2013 as part of “Operation Crash,” a nation-wide crackdown on the illegal trafficking in rhinoceros horns, for his role in smuggling libation cups carved from rhinoceros horns from New York to China. He pled guilty in August 2013 and was sentenced today by U.S. District Judge Katherine B. Forrest.
Manhattan U.S Attorney Preet Bharara said: “With his sentence today, Qiang Wang is held accountable for his role in feeding the flourishing black market for artifacts made from endangered species. This Office will continue its work to prosecute those who contribute to the illegal wildlife trade, and to uphold the rules designed to protect wildlife.”
Acting Assistant Attorney General Robert Dreher said: “Wang and others like him involved in smuggling these artifacts made from rhino horn and ivory have helped to create a market for wildlife products that is not sustainable.
This is an active and ongoing investigation that is designed to send a clear message to buyers and sellers that we will vigorously investigate and prosecute those who are involved in this devastating trade.”
U.S. Fish and Wildlife Service Director Dan Ashe said: “We’re reaching a tipping point, where the unprecedented slaughter of rhinos and elephants happening now threatens the viability of these iconic species’ wild populations in Africa. This slaughter is fueled by illegal trade, including that exposed by Operation Crash. We will continue to work relentlessly across the United States government and with our international partners to crack down on poaching and wildlife trafficking.”
According to the Information, WANG’s guilty plea, and statements made during court proceedings:
In China, there is a tradition dating back centuries of intricately carving rhinoceros horn cups. Drinking from such a cup was believed by some to bring good health, and antique carvings are highly prized by collectors. Libation cups and other ornamental carvings are particularly sought after in China and in other Asian countries, as well as in the United States. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including fake antiques made from recently, and often illegally, hunted rhinoceros.
Between approximately January 2011 and February 2013, WANG conspired with at least two others to smuggle objects containing rhinoceros horn and elephant ivory out of the United States knowing that it was illegal to export such items without required permits. Due to their dwindling populations, all rhinoceros and elephant species are protected under international trade agreements. WANG made and used false United States Customs Declarations for the packages containing rhinoceros horn and ivory objects in order to conceal the true contents of the packages, and did not declare them to the U.S. Fish & Wildlife Service U.S. Customs and Border Protection as required under U.S. law and international trade agreements.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s Fish and Wildlife Service (FWS), in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns
In sentencing WANG, Judge Forrest said that his behavior helped “create and sustain a marketplace for goods made from endangered wildlife.” Judge Forrest also said that WANG’s conduct was “illegal and extremely troubling.”
In addition to the prison term, Judge Forrest ordered WANG, 34, of Flushing, New York, to forfeit certain ivory goods in his possession, and banned him from all future trade in elephant ivory and rhino horn. Wang was also sentenced to serve a term of three years of supervised release.
Mr. Bharara and Mr. Dreher commended the U.S. Fish and Wildlife Service and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their outstanding work in this investigation. They also thanked the New York State Department of Environmental Conservation Division of Law Enforcement for their assistance.
The case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Janis M. Echenberg and Senior Counsel with the Environmental Crimes Section of the United States Department of Justice Richard A. Udell are in charge of the prosecution.
Albuquerque Woman Pleads Guilty to Robbing Washington Federal Bank in September 2013Read the Press Release
ALBUQUERQUE – Maria Stovall, 49, of Albuquerque, N.M., pleaded guilty this morning to an indictment charging her with bank robbery.
Stovall was arrested on September 27, 2013, on a criminal complaint charging her with robbing the Washington Federal Bank located at 1301 Wyoming Blvd. NE, in Albuquerque that day. She subsequently was indicted on a bank robbery charge.
During today’s proceedings, Stovall entered a guilty plea to the indictment and admitted robbing Washington Federal Bank on September 27, 2013, by passing a handwritten note demanding money to a bank teller. Court filings reflect that as Stovall fled from the bank with the cash, a bank manager followed her to a nearby hospital where he confronted Stovall and took the backpack that Stovall was carrying. Stovall was arrested by officers of the Albuquerque Police Department shortly thereafter.
Stovall remains on conditions of release at a half-way house pending her sentencing hearing, which has yet to be scheduled. At sentencing, Stovall faces a maximum penalty of 20 years in prison.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley.
Albuquerque Man Pleads Guilty to Federal Carjacking ChargeRead the Press Release
ALBUQUERQUE – Manuel Torrez, 33, of Albuquerque, N.M., pleaded guilty this morning to an indictment charging him with carjacking. Under the terms of his plea agreement, Torrez will be sentenced to 84 months in federal prison followed by a term of supervised release to be determined by the court.
Torrez was indicted in April 2013, and charged with using force to take an automobile from another person in Bernalillo County, N.M., on March 17, 2013. During his plea hearing, Torrez pled guilty to the indictment and admitted that on March 17, 2013, he forcefully yanked a woman out of her truck, pushed the victim to the ground after a brief struggle, took the victim’s car keys, and drove away in her truck.
Torrez was arrested on local charges shortly after the carjacking and was held in state custody until he was transferred to federal custody in July 2013. He remains detained pending his sentencing hearing, which has yet to be scheduled.
Torrez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Abilene Man Sentenced to 188 Months in Federal Prison for Robbing Citibank in Abilene This SummerRead the Press Release
LUBBOCK, Texas — Jacob Alan Powell, 28, of Abilene, Texas, was sentenced this morning, by U.S. District Judge Sam R. Cummings, to 188 months in federal prison for committing the July 8, 2013, aggravated bank robbery of a Citibank location in Abilene. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on July 8, 2013, Powell, wearing business attire and a Hardin-Simmons University baseball cap, entered the Citibank, N.A., located at 3409 South 14th Street in Abilene. He waited several minutes before an available teller asked him to her station. Once at the teller counter, he told the teller that he was making a withdrawal. When the teller asked him for his account number, he told her that she didn’t understand and then lifted his suit jacket to show her a gun in his waistband. Fearing for her life as the gun appeared real, the teller opened her cash drawer and put cash in a bag that Powell provided; Powell then quickly left the bank.
The following day, bank surveillance photos were shown on the local news and Powell was identified by witnesses.
The investigation was conducted by the FBI and the Abilene Police Department. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
88 Year-Old Author Sentenced for FraudRead the Press Release
PORTLAND, Ore. – A former resident of Pacific City was sentenced in federal court on December 3, 2013, for stealing more than $78,000 from the Social Security Administration (SSA), the Oregon Department of Human Services (DHS), and Medicaid. Peter C. Byrne, 88, was sentenced to a three year term of probation and required to pay full restitution by the end of the week. Byrne pleaded guilty in August and admitted that between 1992 and 2012 he concealed from SSA and DHS his travels outside the United States and his compensation, while receiving Supplemental Security Income (SSI) and food stamps. Byrne had previously deposited $25,000 with the court for restitution and indicated he was prepared to pay the full balance by the end of the day.
According to documents filed by the government and Byrne’s admissions, Byrne began receiving SSI, a need-based benefit, in 1990 and was required to report to SSA certain travel outside the United States as well as his income and compensation. Between 1992 and 2012, Byrne traveled outside the U.S. for more than 30 days at least 15 times, on some occasions remaining outside the U.S. for more than four months. Between 2009 and 2012, Byrne also maintained bank accounts with Barclays of England and Wells Fargo where he held more than $85,000 at one time, and failed to disclose these bank accounts to SSA and DHS. When Byrne was questioned by SSA and investigators in 2012, he failed to disclose all of his travels and assets. When SSA asked to see his passport, Byrne advised that he had accidentally destroyed his passport by running it through the washing machine.
Investigators subsequently served a search warrant at Byrne’s residence and located financial and travel records, and his Will. Byrne urged that the Will be kept confidential because he feared the Social Security Administration would come after his estate for benefits he unlawfully received. Agents also located a copy of a letter from Byrne to Safari Press directing that any future royalties for his published books be sent to his girlfriend. Byrne had previously been questioned by investigators whether he was receiving royalties for the books he had written on topics such as his search for Bigfoot and game-hunting in Nepal. Byrne denied receiving royalties.
Prosecutors also noted that in the 1990s, Byrne had two previous overpayments of SSI because of unreported travel and assets. Those prior overpayments had been handled administratively by SSA.
The Honorable Garr M. King stated that Byrne’s actions had been intentional and criminal, but agreed with the parties’ recommended sentence of probation primarily because of Byrne’s age.
The case was investigated by the Social Security Administration Office of Inspector General, Office of Investigations, the U.S. Department of Health and Human Services, the Oregon Department of Human Services, and the Tillamook County Sheriff’s Office, and was prosecuted by Special Assistant United States Attorney Helen L. Cooper, as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office in Portland.
20 Detroit-area Residents Charged in Medicare Fraud Strike Force Takedown for Approximately $34 Million in False BillingRead the Press Release
Twenty Detroit-area residents have been charged for their roles in physician home visit, home health care, chiropractic and psychotherapy schemes to submit more than $34 million in false billing to Medicare.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
“Medicare fraud hits every taxpayer and harms so many who are in need of critical health care,” said Acting Assistant Attorney General Raman. “The defendants arrested yesterday and today include doctors, physical therapists and home health care agency owners who were entrusted by Medicare to provide their patients with necessary care and services. Instead, they abused that trust for their own profit. The Strike Force’s operation reflects our continuing and unflagging commitment to put an end to these harmful fraud schemes.”
“Doctors and clinic owners should take note that we are scrutinizing billing data to detect fraud and bring offenders to justice,” said U.S. Attorney McQuade. “We are committed to recovering tax dollars intended for patient care.”
“These charges clearly send the message to criminals that committing fraud against government health care programs puts them squarely in the sights of the Medicare Fraud Strike Force,” said HHS-OIG Special Agent in Charge Pugh. “Taxpayers and patients should know that OIG with its Strike Force partners will continue to root out, expose, and hold accountable those who attack the Medicare program.”
“When medical doctors, physical therapists, and other health care providers conspire to defraud our government health care programs and undermine the public trust, they not only betray their profession, but also steal directly from the American people,” said FBI Special Agent in Charge Abbate. “The FBI and our law enforcement partners in the Medicare Fraud Strike Force will continue our efforts on behalf of the American taxpayer to prevent health care fraud and bring these criminal perpetrators to justice.”
Court documents unsealed this week in the Eastern District of Michigan charge defendants including physicians, owners and operators of companies, office employees and patient recruiters with submitting fraudulent claims for services that were never rendered and with paying kickbacks to obtain patients to be billed. Nineteen of the defendants were arrested or surrendered to authorities yesterday morning and this morning, and one defendant remains at large. In addition, law enforcement agents yesterday and today executed search warrants at nine locations and seizure warrants of 14 bank accounts related to the alleged fraud schemes.
The following charges were unsealed:
United States v. Goldfein, et al.
Two individuals, both medical doctors, were charged in an indictment with conspiring to commit health care fraud for their roles in a $5.4 million scheme to defraud Medicare by submitting fraudulent claims for physician home services that were not provided. The indictment alleges that the fraudulent claims were submitted by a physician clinic that provides both in-home and outpatient health care services. The clinic, with locations in Livonia, Mich., and Swartz Creek, Mich., is known as Tri City Medical Centers P.C.
The defendants charged in the indictment are Aaron Scott Goldfein, 49, of Bloomfield Hills, Mich., and William Clay Sokoll, 58, of Royal Oak, Mich.United States v. Elhorr, et al.
Three individuals, one of whom is a medical doctor and one of whom is a nurse, were charged in a superseding indictment with conspiracy to commit health care fraud for their roles in an $11.5 million scheme to defraud Medicare by submitting fraudulent claims for physician home services that were not provided. The superseding indictment alleges that the fraudulent claims were submitted by a home visiting physician practice. The practice, located in Allen Park, Mich., was known as House Calls Physicians P.L.L.C.
The defendants charged in the superseding indictment are Ali Elhorr, 44, of Dearborn, Mich.; Lama Elhorr, 31, of Hollywood, Fla. (formerly of Dearborn, Mich.); and Kelly White, 44, of Dearborn, Mich.United States v. Khan, et al.
Ten individuals were charged in an indictment with conspiracy to commit health care fraud or conspiracy to pay and receive illegal kickbacks for their roles in a $7 million scheme to defraud Medicare. The defendants include two medical doctors and three owners of home health care agencies, one of whom is also a physical therapist, as well as patient recruiters and office staff. The indictment alleges that the defendants caused the submission of fraudulent claims to Medicare for medically unnecessary home health care services and paid kickbacks in the form of cash payments and prescription narcotics to Medicare beneficiaries for the use of their Medicare beneficiary numbers. The indictment also alleges that physicians received kickbacks in the form of cash payments to certify Medicare beneficiaries for medically unnecessary home health care services. The fraudulent claims were submitted by two home health care agencies, Advance Home Health Care Services Inc. and Perfect Home Health Care Services LLP.
The defendants charged in the indictment are Walayat Khan, 65, of Ypsilanti, Mich.; Adelina Herrero, 72, of Ann Arbor, Mich.; Amer Ehsan, 44, of Canton, Mich.; Haroon Ur Rashid, 47, of West Bloomfield, Mich.; Mohammad Rafiq, 47, of West Bloomfield, Mich.; Salman Ali Sapru, 51, of Ypsilanti, Mich.; Farhan Khan, 25, of Ann Arbor, Mich.; James Zadorski, 48, of Detroit, Mich.; Cynthia Bell, 55, of Detroit, Mich.; and John Sanders, 59, of Pontiac, Mich.United States v. Hassan, et al.
Two individuals were charged in an indictment with conspiracy to commit health care fraud and conspiracy to pay and receive illegal kickbacks for their roles in a $4.5 million scheme to defraud Medicare. The indictment alleges that the defendants, the owner of a home health care agency who is also a physical therapist and a recruiter, caused the submission of fraudulent claims to Medicare for medically unnecessary home health care services and paid kickbacks in the form of cash payments to Medicare beneficiaries for the use of their Medicare beneficiary numbers. The indictment also alleges that physicians received kickbacks in the form of cash payments to certify Medicare beneficiaries for medically unnecessary home health care services. The fraudulent claims were submitted by Cherish Home Health Services LLC.
The defendants charged in the indictment are Zia Hassan, 47, of Saline, Mich., and Nathaniel Miller, 52, of Detroit, Mich.United States v. Minhas
Naseem Minhas, 47, of West Bloomfield, Mich., was charged with conspiracy to commit health care fraud and conspiracy to pay and receive illegal kickbacks for his role in a $5.7 million scheme to defraud Medicare. The indictment alleges that the defendant, the beneficial owner of a home health care agency, caused the submission of fraudulent claims to Medicare for medically unnecessary home health care services and paid kickbacks in the form of cash payments to marketers to recruit Medicare beneficiaries and to certify Medicare beneficiaries for medically unnecessary home health care services. The indictment alleges that the fraudulent claims were submitted by Tricounty Home Care Services Inc.United States v. Lovett, et al.
The owners of a Detroit-area billing company were charged in a criminal complaint for their roles in a health care fraud scheme involving claims for chiropractic and psychotherapy services. The complaint alleges that the operators of ABIX LLC obtained the Medicare numbers of licensed medical service providers in and around Detroit and used this information to bill Medicare for chiropractic and psychotherapy services that were not provided.
The defendants charged in the criminal complaint are Elaine Lovett, 58, of Wayne County, Mich., and Michelle Freeman, 54, of Livingston County, Mich.
An indictment or criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and the Department of Health and Human Services to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
These cases were investigated by the FBI and HHS-OIG and were brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. These cases are being prosecuted by Trial Attorney William G. Kanellis, Trial Attorney Matthew C. Thuesen, and Special Trial Attorney Katie R. Fink of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
Wednesday 4 December 2013
Wilkinsburg Convenience Store Owners Get Probation for Defrauding the Food Stamp ProgramRead the Press Release
PITTSBURGH - Owners of a Wilkinsburg convenience store have been sentenced to two years of probation, five months home detention and ordered to pay restitution of $119,871.00 on their conviction on a charge of conspiracy to commit wire fraud, and food stamp fraud, United States Attorney David J. Hickton announced today.
Nicole Gordon, 34, of Turtle Creek, PA and Stanley Saxton, 44, of Verona, PA, siblings and co-owners and operators of Nicky's Corner, located on Montier Street in Wilkinsburg, PA, were sentenced by Senior District Judge Maurice B. Cohill, Jr. Gordon and Saxton also executed civil settlement agreements for violations of the False Claims Act, and agreed to pay to the United States the sum of $119,871.
According to the information presented to the court, Nicky's Corner participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the Food Stamp Program. Food stamp recipients could purchase eligible food items using food stamp benefit cards at the store. As a condition of participation in the Food Stamp Program, the defendants certified that they would comply with all rules and regulations of the program and were aware that program rules strictly prohibited the exchange of food stamp benefits for cash and/or for ineligible items, such as cigarettes. Despite this knowledge, on multiple occasions, the defendants exchanged food stamp benefits with customers in exchange for cash on a discounted basis, usually giving the customers only 50 cents on the dollar for their food stamp benefits. Gordon and Saxton also permitted customers to use food stamp benefits to pay for ineligible items, such as cigarettes.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the Criminal Division of the U.S. Attorney's Office and Assistant United States Attorney Colin Callahan is litigating the case on behalf of the Affirmative Civil Enforcement Section of the United States Attorney's Office.
U.S. Attorney Hickton commended the Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Nicole Gordon and Stanley Saxton.
West, Texas Man Sentenced to Prison on Federal Firearms and Obstruction of Justice ChargesRead the Press Release
In Waco this afternoon, 31-year-old Bryce Ashley Reed of West, TX, was sentenced to 21 months in federal prison followed by three years of supervised release and ordered to pay a $2,000 fine for conspiracy to make an unregistered destructive device and attempting to obstruct justice announced United States Attorney Robert Pitman and ATF Special Agent in Charge Robert W. Elder, Houston Division.
On October 10, 2013, Reed pleaded guilty to the charges. By pleading guilty, Reed admittedly conspired with others from December 2012 until April 26, 2013, to construct and possess a pipe bomb, then attempt to conceal it from law enforcement or destroy it, thus impairing its availability for use in grand jury proceedings. According to court records, Reed used the Internet to place orders and arrange shipments to his residence of various bomb-making components. Reed also enlisted the assistance of another individual to construct the housing for the pipe bomb. Once completed, Reed took possession of the pipe and stored it inside his residence along with the other components inside two ammunition cans.
According to the factual basis in this case, after the events of April 17, 2013, wherein an explosion at the West Fertilizer Company resulted in the deaths of 15 individuals and the damage and destruction to many structures within a several-block radius of the plant, Reed, whose home was affected by the blast, was staying in a motel in West. On April 26, 2013, knowing that there was a possibility investigators might find the bomb-making components inside his residence and charge him, Reed enlisted the assistance of two individuals to travel to his home in West and retrieve the ammunition cans and bring them to him, which they did. Reed, subsequently, provided a box containing the ammunition cans and the bomb-making materials to another individual with instructions to “get rid of this.” The individual agreed to do so and placed the box in a spare bedroom in his home in Abbott, Texas. On May 7, 2013, the individual, for the first time, looked into the box and discovered its contents. He immediately notified the McLennan County Sheriff’s Office who took possession of the items.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives together with the McLennan County Sheriff’s Office, McLennan County District Attorney’s Office, West Police Department, Texas State Fire Marshal’s Office and Texas Department of Insurance Fraud Unit. Assistant United States Attorneys Mark Frazier and Greg Gloff prosecuted this case on behalf of the Government.
Waterbury Resident Pleads Guilty to Embezzling Funds from National GuardRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DEREK JACKSON, 36, of Waterbury, waived his right to indictment and pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to conspiring to embezzle funds from the Connecticut Army National Guard.
According to court documents and statements made in court, JACKSON was serving in the Connecticut Army National Guard in 2004 when he began conspiring with his payroll supervisor to have supplemental, unauthorized National Guard payments transferred into his bank account. JACKSON admitted that he periodically shared a portion of the unauthorized funds with his payroll supervisor. JACKSON received a total of $89,595.44 in unauthorized payments until January 2010, when the payroll supervisor died.
Judge Covello scheduled sentencing for February 26, 2014, at which time JACKSON faces a maximum term of imprisonment of five years.
This matter is being investigated by the Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel.
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[email protected]Wanblee Man Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for Felony Child Abuse and Neglect.
Simon Glenn, age 21, was indicted on November 19, 2013. He appeared before U.S. Magistrate Judge Veronica L. Duffy on December 3, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 2 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment charges that in November 2013, near Wanblee, Glenn abused a child who had not attained the age of seven years.
The charge is merely an accusation and Glenn is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Glenn was released pending trial. A trial date has not been set.
Virginia Man Sentenced to 70 Months in Prison for Traveling to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – William G. VanSant, 51, of Alexandria, Va., was sentenced today to 70 months in prison on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
VanSant pled guilty to the charges in August 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Robert L. Wilkins. Upon completion of his prison term, VanSant will be placed on 10 years of supervised release. He also will be required to register as a sex offender for at least 15 years after his release from prison.
According to the government's evidence, on March 20, 2013, VanSant contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted a message on a website that is frequented by individuals who have a sexual interest in children. Over the next two days, Vansant continued to engage in online conversations with the undercover officer, whom he believed was the father of an under-aged girl. During this period, VanSant arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
In addition, during the course of their communications, VanSant sent the undercover officer several images of child pornography. On March 22, 2013, VanSant traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested.
Pursuant to a warrant, VanSant’s residence was searched on March 28, 2013. Law enforcement seized two laptop computers, including one that contained seven videos and eight images depicting child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also expressed appreciation for the assistance provided by Assistant U.S. Attorney Catherine K. Connelly, of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office. Finally, they commended the efforts of Assistant U.S. Attorney Cassidy Kesler Pinegar, who prosecuted the case.
13-412Two Massachusetts Men Who Recorded a Private Conversation between two NFL General Managers Enter into Pre-Trial Diversion AgreementsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a resolution has been reached involving charges against two Massachusetts men charged with invading a private conversation between two NFL general managers.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that on Joshua Barber and Nicholas Kaiser, both 21 of Plymouth, Massachusetts, intercepted a telephone conversation between former Buffalo Bills General Manger Buddy Nix and Tampa Bay Bucaneers General Manger Mark Dominik during which they discussed a number of private matters.
On May 20, 2013, Barber and Kaiser were charged by criminal complaint with intentionally intercepting a wire communication between private parties and with making a telephone call without disclosing their identity with the intent to annoy or harass the person at the called number. According to the criminal complaint, the defendants not only gained access to and intercepted the private conversation between the two General Managers, they also recorded it and sold it for $150.00 to a particular outlet. The private, recorded conversation was later made public.
The pending charges were resolved by the defendants entering into pre-trial diversion agreements with the Government. Under the terms of the diversion agreement, Barber and Kaiser must abide by certain terms and conditions for the next 18 months. If the defendants fail to comply with the diversion agreement, the charges could be re-instated by the Government. Those involved in this case supported the diversion disposition agreed to by the Government.
The resolution is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.Three Tallahassee Residents Convicted of Food Stamp FraudRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced today thatthreemen have been convicted of conspiring todefraud the Supplemental Nutrition Assistance Program (SNAP), as well as other charges. SNAP is also known as the food stamp program. Rodrigue Bissainthe, 26, pled guilty to conspiracy and to two mail fraud charges on November 27, 2013. Darius Jemmott, 21, was convicted of conspiracy, three charges of fraud involving interstate wire communications, and aggravated identity theft at a trial that concluded December 3, 2013. Dwayne Phanor, 24, pled guilty to conspiracy, mail fraud, wire fraud, and seven aggravated identity theft charges on December 4, 2013, after a jury had been sworn to try his case.
SNAP provides economic assistance to qualified low-income people, to help them obtain adequate food. This assistance is provided on Electronic Benefits Transfer (EBT) cards, which function as pre-loaded debit cards. The United States Department of Agriculture funds the SNAP program. In Florida, SNAP is administered by the Department of Children and Family Services (DCF). When these crimes occurred, between January and April 2013, DCF had contracted with JP Morgan Chase (JPMC) to service aspects of the program. The Department of Financial Services (DFS) investigates public assistance fraud arising from DCF programs.
According to matters presented in Court, DCF realized in March 2013 that numerous SNAP applications had been received for a single Tallahassee address, on Magnolia Court. Controlled deliveries of EBT cards to that address led to the arrest of Bissainthe by the Tallahassee Police Department on April 16, 2013. Bissainthe admitted that he was receiving these cards for Phanor and that Phanor had given him an EBT card for his own use.
DFS was able to track the use of another EBT card at local merchants, leading to the identification and arrest of Jemmott on April 18, 2013. Jemmott had that card on his person when arrested and eventually admitted buying it from Phanor.
Phanor was arrested in an adjacent Tallahassee apartment, also on April 18, 2013. Phanor’s backpack held voluminous notations relating to fraudulent EBT applications and change of address requests. Phanor advised that his telephone number was the same as the number that had been used to make calls to a JPMC EBT call center. Phanor admitted filing numerous SNAP applications using other people’s names, Social Security numbers, and dates of birth. Phanor indicated that he gained access to an Ocala Road delivery address through Jemmott. Another address on West Georgia Street was also used.
Some of Phanor’s fraudulent applications were denied, because those people were already receiving SNAP benefits. Phanor admitted calling the JPMC call center, pretending to be the genuine beneficiaries (both men and women), and asking that the benefits be re-directed to the addresses he controlled. His aggravated identity theft convictions were based upon seven of these calls.
A DCF representative presented documents showing that at least 72 fraudulent applications were filed, involving a potential loss of $101,258.82 and an actual loss of $7,291.88. The defendants will be sentenced by United States District Judge Mark Walker. Bissainthe will be sentenced on February 7, 2014, and Jemmott and Phanor on March 14, 2014. The conspiracy, wire fraud, and mail fraud convictions each carry a maximum possible term of twenty years in prison, a $250,000 fine, and a three-year term of supervised release. The penalty for aggravated identity theft is a mandatory two years in prison, a maximum $250,000 fine, and a one-year term of supervised release. Sentence on aggravated identity theft charges must be consecutive to sentences for any other conviction, but may be concurrent with other aggravated identity theft sentences.
U.S. Attorney Marsh praised the joint efforts of the Department of Children and Family Services, the Department of Financial Services, the Tallahassee Police Department, the United States Postal Inspectors, and the United States Secret Service for their hard work, dedication, and expertise in the investigation that led to the prosecution of this case.
This case is being prosecuted by Assistant U.S. Attorney Michael T. Simpson.Three Patient Recruiters for Miami Home Health Company Plead Guilty for Roles in $48 Million Fraud SchemeRead the Press Release
Three patient recruiters for a Miami health care company pleaded guilty yesterday for their participation in a $48 million home health Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Miami residents Marianela Martinez, 45; Omar Hernandez, 48; and Celia Santovenia, 49, pleaded guilty before U.S. District Judge Donald L. Graham in the Southern District of Florida to one count each of conspiracy to receive health care kickbacks. Sentencing has been scheduled for Feb. 11, 2014.
According to court documents, Martinez, Hernandez and Santovenia were patient recruiters who worked for Caring Nurse Home Health Care Corp., and Santovenia also worked for Good Quality Home Health Care Inc. Caring Nurse and Good Quality were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries.
From approximately January 2006 through June 2011, the defendants would recruit patients for Caring Nurse and/or Good Quality and would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse and/or Good Quality in return for allowing the agency to bill the Medicare program on behalf of the recruited patients. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez, 44, and Raymond Aday, 49, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. The sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2012 indictment, which alleged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for those fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Defendants Convicted in $3.2M Medicare Fraud SchemeRead the Press Release
SAN FRANCISCO Patrick Adebowale Sogbein, his wife, Adebola Adefunke Adebimpe, and Eduardo Abad were convicted today by a federal jury, following a 13-day trial, of Conspiracy to Commit Health Care Fraud and Health Care Fraud, announced United States Attorney Melinda Haag; David Johnson, Special Agent in Charge of the Federal Bureau of Investigation in San Francisco; and Glenn R. Ferry, the Special Agent in Charge for the Los Angeles Regional Office of Inspector General of the Department of Health and Human Services. Sogbein and Abad were also convicted of Conspiracy to Pay and Receive Kickbacks involving the Medicare Program,
The jury found that from December 2006 through July 2011, Sogbein and Adebimpe, through two Los Angeles area durable medical equipment companies, submitted over $3.2 million in fraudulent claims to Medicare for power wheelchairs and power wheelchair accessories based on bogus prescriptions for Medicare beneficiaries who had been identified by Abad and other street-level recruiters. The jury also found that Sogbein paid and Abad received cash kickbacks in exchange for referral of the Medicare beneficiaries. Sogbein and Adebimpe were paid more than $1.6 million by Medicare.
Prior to trial, on September 30, 2013 and October 21, 2013, respectively, co-defendants Edna Calaustro and Mele Saavedra, both of San Francisco, pled guilty to Conspiracy to Commit Health Care Fraud, Conspiracy to Receive Kickbacks involving the Medicare Program, and Health Care Fraud.
Sogbein and Adebimpe were remanded into custody today following conviction. Abad, Calaustro, and Saavedra remain out of custody.
The evidence at trial showed that in approximately December 2006, Sogbein, the owner of Debs Medical Distributors, a Van Nuys durable medical equipment company, began working with Calaustro, a physician, to obtain bogus prescriptions for power wheelchairs. In 2008, after Sogbein had increasing difficulties with Medicare scrutinizing the claims that he submitted, Sogbein and Adebimpe began submitting claims through a separate company in Adebimpe’s name, Dignity Medical Supply, a Santa Clarita durable medical equipment company. Sogbein and Calaustro worked with Abad, Saavedra, and others to identify Medicare beneficiaries. The evidence showed that Abad and Saavedra recruited beneficiaries at locations in the Tenderloin and South of Market neighborhoods in San Francisco, including a fast food restaurant at the Powell Street cable car turnaround and a Tenderloin neighborhood senior center. After identifying beneficiaries, Calaustro, with Abad or Saavedra, went to the beneficiaries’ homes with a portable copy machine, copied their Medicare cards, and conducted sham examinations to obtain background information for the required Medicare paperwork. Calaustro gave the fraudulent paperwork and bogus prescriptions to Sogbein and Adebimpe. Sogbein and Adebimpe, in turn, created additional fraudulent paperwork in the names of their respective companies and submitted the claims to Medicare. Sogbein paid Calaustro $100 for each power wheelchair prescription. Sogbein paid Abad and Saavedra $100 and $50, respectively, for each beneficiary they identified. Over the five-year period, Sogbein and Adebimpe billed Medicare for over 400 power wheelchairs using the bogus prescriptions written by Calaustro.
“Health Care Fraud is particularly pernicious because it not only defrauds the government but it inhibits Medicare’s ability to help those in need. The verdict today reaffirms this office’s commitment to prosecuting those who intentionally engage in schemes to defraud Medicare,” said United States Attorney Melinda Haag.
“The result of this case represents the FBI’s commitment to aggressively identify and investigate health care fraud crimes,” said FBI Special Agent in Charge David J. Johnson. “Our outstanding partnership with HHS-OIG nationwide allowed us to successfully work with their office in Los Angeles in order to bring down this egregious health care fraud scheme operating throughout California.”
A sentencing hearing for Sogbein, Adebimpe, and Abad is scheduled for March 20, 2013 at 2:00 p.m. before Judge Jeffrey S. White. The maximum statutory penalties for each count of Conspiracy to Engage in Health Care Fraud, in violation of Title 18, United States Code, Section 1349, and Health Care Fraud, in violation of Title 18, United States Code, Section 1347, are 10 years imprisonment and a fine of $250,000, or twice the amount gained in the course of the fraud, whichever is greater, plus restitution. The maximum statutory penalty for Conspiracy to Pay and Receive Kickbacks involving the Medicare program, in violation of Title 18, United States Code, Section 371, is 5 years imprisonment, and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. ? 3553.
Denise Marie Barton and Randy Luskey are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Assistant U.S. Attorney David Countryman, Paralegal Specialist Beth Margen, and Legal Assistant Bridget Kilkenny. The prosecution is the result of ten-month investigation by the Federal Bureau of Investigation in San Francisco and Office of Inspector General, Department of Health and Human Services in Los Angeles.
Spouse of Former Lackawanna County Guardian Ad Litem Pleads Guilty to Federal Income Tax Fraud MisdemeanorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Walter J. Pietralczyk, Jr., age 39, pleaded guilty today to a tax fraud misdemeanor before U.S. Magistrate Judge Thomas M. Blewitt in Scranton.
Pietralczyk is the spouse of Lackawanna County Attorney and former Family Court Guardian Ad Litem Danielle Ross Pietralczyk, both of Jermyn, Pennsylvania.
According to United States Attorney Peter J. Smith, an indictment filed against Ross in February 2013 alleged that the couple’s joint federal tax returns verified by Ross under penalty of perjury failed to report income she received from private paying clients while acting as the guardian ad litem for the Lackawanna County Family Court. The only income Ross reported for 2009 and 2010 was her County compensation reported on 1099 Forms which she received as an independent contractor hired by Lackawanna County.
The indictment charged that as the sole guardian ad litem for the Lackawanna County Family Court, Ross was paid an annual compensation of $38,000. Pursuant to the contract between Ross and Lackawanna County, Ross was permitted to bill private paying parties above her County compensation at a rate of $50 per hour. Those payments were not reported as income for tax purposes.
The investigation continued beyond the original indictment and ultimately implicated Pietralczyk in the submission of false information to the IRS on tax returns filed by the couple.
Pietralczyk was charged in an Information filed by the U.S. Attorney’s Office in November 2013.
Pursuant to the terms of plea agreements with the Government, both Ross and Pietralczyk have agreed that the tax loss to the United States as a result of the fraud is more than $30,000 but less than $80,000. The restitution amount that will be imposed upon the couple will be determined by the Court as part of the sentences. Pietralczyk’s plea relates to the 2009 tax return.
Ross is scheduled to enter her guilty plea on December 16, 2013, before U.S. Senior District Court Judge A. Richard Caputo. She was dismissed from her position as County Guardian Ad Litem earlier this year.
The prosecutions are the result of a joint investigation by the United States Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI), and the Lackawanna County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski, assisted by Assistant U.S. Attorney William Houser.
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 for Pietralczyk is one year 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.
Sonoma Man Indicted for $1.6 Million Fraud SchemeRead the Press Release
SAN FRANCISCO - A federal Indictment charging Michael Thomas Hamilton, a/k/a Thomas Smith, with 22 counts of mail fraud, wire fraud, and money laundering was unsealed today in federal court, announced United States Attorney Melinda Haag.
Hamilton, 49, of Sonoma, California, was indicted by a federal grand jury on November 19, 2013. According to the Indictment, Hamilton engaged in a scheme to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises regarding a book-selling business, Small Leaf, Hamilton claimed to own and operate. Hamilton represented to prospective investors that Small Leaf was a company engaged in the sale of “proprietary Books, etc. on Amazon.com and other internet websites” and that, for their investment, they would receive intellectual property rights for a number of “performing products of Small Leaf Inc.” By October 2013, according to the Indictment, Hamilton had solicited approximately $1,616,000 from more than 20 investors in California, Oregon, and Massachusetts.
As part of the scheme to defraud, Hamilton allegedly misrepresented that investors would earn high rates of return through the sale of books on Amazon and other platforms; that, if investors did not recoup their investment by a certain date, Small Leaf would reimburse the investor with interest of 10%; and that his book-selling business generated over one million dollars in yearly revenue. Hamilton also allegedly made periodic payments to investors, which he informed investors were royalties earned on the sale of books through Amazon. According to the Indictment, however, Hamilton’s book-selling business generated very little revenue, and most of the payments made to investors were from investments by new victims or additional investments by existing victims.
Hamilton was arrested on December 3, 2013, in Sonoma, California. He made his initial appearance in federal court in San Francisco today, when he was released on bond. Bail was set at $75,000. Hamilton’s next scheduled appearance is on December 12, 2013, at 9:30 a.m., before The Honorable Maria-Elena James, United States Magistrate Judge in San Francisco.
The maximum statutory penalty for each count of mail and wire fraud, in violation of 18 U.S.C. §§ 1341 and 1343, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The maximum statutory penalty for each count of money laundering, in violation of 18 U.S.C. § 1956, is 20 years’ imprisonment and a fine of $500,000 or twice the value of the property involved in the transaction. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Robert S. Leach is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Mary Mallory and Rayneisha Booth. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.
Please note, an indictment contains only allegations against a person and, as with all defendants, Michael Thomas Hamilton must be presumed innocent unless and until proven guilty.
Serial Con Artist Pleads Guilty to Bank Fraud and Aggravated Identity TheftRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces that Latasha Callens (35, Tampa) yesterday pleaded guilty to bank fraud, access device fraud, mail fraud, and aggravated identity theft. Callens faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
Callens was indicted on July 24, 2013.
According to the plea agreement, Callens committed crimes from at least as early as July 2011 through May 2013, when she was finally arrested. She committed many of the crimes while on release from state charges, after having failed to appear to face them. Over a period of two years, and at least 58 times, Callens defrauded banks and individuals. As part of her scheme Callens would approach people, usually at ATMs, and give them a sad story about her need to cash a check and her inability to deposit the check into her bank account. Callens would convince her victims to deposit the checks, which were worthless, into their own account and then withdraw funds, sometimes giving them $100 for their trouble.
Callens’ checks were generally drawn on closed accounts, because the checks had been stolen or were from the accounts of deceased individuals. When she was arrested for failure to appear warrants in May 2013, some of the items recovered from Callens included a checkbook, stolen from a purse at a local mall, along with the victim’s (“T.M.”) Florida Driver’s License, Social Security card, a Visa card, and a GTE FCU debit card. At no time was Callens given permission, by the victim, to possess or use these items. Callens also used “T.M.’s” name to rent vehicles.
On December 27, 2012 and December 29, 2012, Callens also committed access device fraud (credit card fraud) by using the stolen identity of “T.J.” (including the date of birth and Social Security Number) to obtain dental care at a Clearwater dental office. Callens was assisted by another woman, who claimed to be “E.A.” (a victim of identity theft from Opa Locka, Florida). “T.J.” purchased $12,000 worth of dental services under the false pretense that “E.A.” would consent to pay for the treatment. Using “E.A.'s” stolen credit card number, Callens paid for herself to receive a root canal, a bridge, an extraction, a temporary crown, a retainer, anesthesia, and other items and services.
For tax years 2010, 2011, and 2012, Callens committed mail fraud, defrauding the Internal Revenue Service and certain taxpayers. Similar to the bank fraud scheme and access device fraud, Callens stole the identities of taxpayers, then using her laptop, Callens filed false and fraudulent tax returns with those stolen identities. As a result Callens obtained tax refunds to which she was not entitled. The refunds were often accessed through bank-issued debit cards, many of which were mailed to Callens.
This case was investigated by Tampa Police Department, the Hillsborough County Sheriff’s Office, the Temple Terrace Police Department, the Clearwater Police Department, the Internal Revenue Service – Criminal Investigation, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Schenectady Woman Pleads Guilty to Mail Fraud and Filing False Federal Income Tax ReturnRead the Press Release
Sent the IRS more than $3.6 million in bogus payments
ALBANY, NEW YORK – PATRICIA ALFIERI, 53, of Schenectady, pled guilty today before Chief U.S. District Judge Gary L. Sharpe to mail fraud and filing a false federal income tax return, announced United States Attorney Richard S. Hartunian and Internal Revenue Service Criminal Investigation Division Special Agent in Charge Toni M. Weirauch. ALFIERI is scheduled to be sentenced on March 11, 2014, in Albany, New York. She faces a maximum term of incarceration of twenty years and a fine of up to $250,000 for the mail fraud charge, and a maximum term of incarceration of three years and a fine of up to $100,000 for the charge of filing a false federal income tax return.
In the plea agreement, ALFIERI admitted that from 2008 through 2013, she mailed 65 bogus checks, in a total amount of more than $3.6 million, to the Internal Revenue Service to cause the IRS to issue “overpayment refunds” to her. Her actions caused the IRS to issue her more than $87,000. The defendant created many of the checks using a computer.
ALFIERI also admitted that she submitted false tax returns to the IRS in 2008, 2009, and 2010 in an effort to avoid paying income tax. Those returns were false because ALFIERI (1) claimed that her federal income tax withholding was higher than it actually was and (2) claimed that she had paid home mortgage interest and real estate taxes when she had not.
The case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
San Antonio Bookeeper Sentenced to Federal Prison in Connection with A Million Dollar Bank Fraud and Identity Theft SchemeRead the Press Release
In San Antonio this afternoon, 50-year-old Sandra Sanchez Gonzalez was sentenced to 57 months in federal prison followed by three years of supervised release and ordered to pay a $1,074,096.36 in restitution for her role in a bank fraud and identity theft scheme announced United States Attorney Robert Pitman.
On August 1, 2013, Gonzalez pleaded guilty to one count of bank fraud and one count of aggravated identity theft. By pleading guilty, Gonzalez admitted that while employed by Allegro, LTD., from September 2006 until July 2011, she stole money from Allegro by forging the owner’s signature on company checks and also fraudulently obtained credit cards under the company name to pay for personal expenses. Gonzalez also admitted to stealing company funds by creating fictitious company pay stubs that incorrectly reflected that her son was employed by Allegro.
This investigation was conducted by agents with the U.S. Secret Service. Assistant United States Attorney Tom Moore prosecuted this case on behalf of the Government.
Rio Rico Tax Return Preparer and Assistant Sentenced for Filing False ReturnsRead the Press Release
TUCSON, Ariz. – On Dec. 3, 2013, Imelda Arredondo, 37, of Rio Rico, Ariz., and Yadira Moreno, 35, of Nogales, Ariz., were sentenced by U.S. District Judge Cindy K. Jorgenson. Each pleaded guilty to conspiring to defraud the United States by filing false federal income tax returns. Moreno was sentenced to 12 months and 1 day imprisonment. Arredondo, who also pleaded guilty to aggravated identity theft, was sentenced to 15 months imprisonment for conspiring with Moreno to defraud the government and a consecutive two year term of imprisonment for aggravated identity theft.
Arredondo, a tax return preparer in Rio Rico, filed false individual federal income tax returns with the Internal Revenue Service for the tax years 2008 through 2010 which included false refunds in the amount of at least $186,561. Arredondo used her clients’ tax returns to file and receive the inflated federal tax refunds by falsely inflating her clients’ wages, adding false dependents, and using false filing status all without her clients’ knowledge or permission. Moreno, Arredondo’s sister, was her tax preparation assistant.
Arredondo was ordered to pay $191,702 in restitution, including $172,353 to the U.S. Treasury. Moreno was ordered to pay $113,213 in restitution, including $93,864.47 to the U.S. Treasury.
The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigation Division. The prosecution was handled by Jane L. Westby, Assistant U.S. Attorney, District of Arizona, Tucson, and Danny N. Roetzel, Trial Attorney, Department of Justice, Tax Division.
CASE NUMBER: CR-4:13-CR-00151-CKJ-1
RELEASE NUMBER: 2013-092_Arredondo&MorenoFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Retirement of Criminal Chief John Marshall AlexanderRead the Press Release
OXFORD, Miss. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi, announced that:
On November 30, 2013, John Marshall Alexander, Chief of the Criminal Division for the United States Attorney’s Office for the Northern District of Mississippi, retired after more than 31 years of distinguished service. A 1981 graduate of the University of Mississippi School of Law, Mr. Alexander began his career at the U. S. Attorney’s Office in March, 1982. During his time with the U. S. Attorney’s Office, Mr. Alexander served as the Judicially appointed United States Attorney in 2010-2011 and as Criminal Chief from 2007 until his retirement. Also, Mr. Alexander served as the Project Safe Neighborhoods Coordinator, Anti-Gang Coordinator, Triggerlock Coordinator and Public Information Officer. In his various capacities, Mr. Alexander received numerous commendations and awards, including the Attorney General’s Special Achievement Award for Superior Performance of Duty. Mr. Alexander has extensive trial experience and, as Criminal Chief, he either tried or oversaw numerous cases which garnered national attention. Mr. Alexander intends to enjoy his retirement “for a while” until he finalizes his plans.
In honor of Mr. Alexander’s 31 years of service, a retirement reception will be held on Tuesday, December 17, 2013, at 2 o’clock p.m, at The Atrium of the First Baptist Church,800 Van Buren Avenue, Oxford, Mississippi. The public is invited to attend.
Ranking Midlothian Police Officer Charged with Federal Civil Rights Violations Involving Alleged Use of Excessive ForceRead the Press Release
CHICAGO ― A south suburban Midlothian police officer was indicted on federal civil rights charges alleging that he used excessive force against two different victims in separate beating incidents in 2010 and 2011. The defendant, STEVEN G. ZAMIAR, was indicted on two counts of violating the victims’ civil right to be free from the use of unreasonable force by a law enforcement officer. The two-count indictment was returned by a federal grand jury yesterday and was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Zamiar, 46, of Midlothian, joined the Midlothian Police Department in 2000. He was a detective sergeant at the time of the alleged beating in 2010 and was deputy chief when the alleged beating occurred in 2011. He was later demoted to lieutenant, and was placed on paid administrative leave this past September. He will be arraigned on a date yet to be scheduled in U.S. District Court.
According to the indictment, on Sept. 6, 2010, when he was a detective sergeant, Zamiar used excessive force, resulting in bodily injury, against Victim A. On Nov. 24, 2011, when he was deputy chief of the Midlothian Police Department, Zamiar allegedly used excessive force, resulting in bodily injury, against Victim B. During the November 2011 incident, Zamiar allegedly used, attempted to use, and threatened to use a dangerous weapon.
Each count carries a maximum penalty of 10 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Patrick Otlewski.
An indictment contains merely charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Postmaster Embezzled $13K+ from Rural Valley, Pa., Post OfficeRead the Press Release
PITTSBURGH - A resident of Export, Pennsylvania, pleaded guilty in federal court to a charge of misappropriation of postal funds, United States Attorney David J. Hickton announced today.
Lawrence F. Stoken, III, 47, pleaded guilty to 1 count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that while employed as the Postmaster at the Rural Valley, Pennsylvania Post Office, Lawrence F. Stoken, III embezzled approximately $13,255.90 from the sale of stamps and postal money orders during the period from October 2011 to March 2013.
Judge Cercone scheduled sentencing for April 17, 2014 at 10:00 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation that led to the prosecution of Stoken.
Pine Ridge Man Sentenced for AssaultsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of Assault with a Dangerous Weapon and Assault by Striking, Beating or Wounding was sentenced on December 2, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jon Craig Dillon, age 25, was sentenced to 37 months of imprisonment, 3 years of supervised release, and $100 to the Federal Crime Victims Fund for Assault with a Dangerous Weapon. For Assault by Striking, Beating or Wounding, Dillon was sentenced to 6 months of imprisonment and 3 years of supervised release, to run concurrently to the first sentence, and $25 to the Federal Crime Victims Fund.
Dillon pled guilty to the charges on August 2, 2013. The conviction stems from Dillon assaulting his female companion numerous times in 2012. The assaults resulted in injuries to the kidney and the head, choking injuries, and extensive bruising covering her body.
This case was investigated by the Bureau of Indian Affairs, Office of justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Dillon was immediately turned over to the custody of the U.S. Marshals Service.
Pill Dealer Sentenced to 10+ Years in Federal Prison for Operating A Logan-based Pain Pill Distribution SchemeRead the Press Release
Scheme involving thousands of prescription pain pills ends in jail time for Logan brothers
CHARLESTON, W.Va. – A Logan County man who organized an oxycodone trafficking scheme that included out-of-state trips to Florida to obtain thousands of powerful pain pills was sentenced yesterday to 10 years and one month in federal prison, announced U.S. Attorney Booth Goodwin. Michael Ray Fortuna, 45, of Peach Creek, previously pleaded guilty in January to conspiracy to distribute oxycodone. Fortuna’s sentence was handed down by United States District Judge Thomas E. Johnston in Charleston.
Fortuna told police that he organized a pill distribution scheme that included his brother and co-defendant Ronald Fortuna, 36, also of Peach Creek, as well as other associates. Ronald Fortuna was sentenced in November to two years in prison for conspiracy to distribute oxycodone.
During the scheme, Michael Fortuna obtained oxycodone from pill sources located in Florida and, in some instances, he or others at his direction, including his brother, traveled to Florida and brought oxycodone pills back to Logan County to sell.
On April 29, 2011, investigators from the United States Postal Inspection Service seized a package addressed to Michael Fortuna. Investigators executed a federal search warrant on the package and discovered that it contained 1,789 30-milligram oxycodone tablets and bore a fictitious return address. Investigators approached Michael Fortuna as he arrived at the Peach Creek Post Office in Logan to retrieve the package. Michael Fortuna later told investigators that he had received a total of three packages containing oxycodone pills from Florida that month. Police determined that the package containing the oxycodone tablets had been mailed by Patrick Warren Napier, of Dingess, Mingo County, W.Va. Napier, 41, was sentenced to four years in prison after pleading guilty earlier this year to conspiracy to distribute oxycodone.
Fortuna also told investigators that he mailed cash to his source of supply located in Florida to pay for the illegal oxycodone deliveries. In particular, Michael Fortuna mailed a package that contained at least $30,000.
In late June or early July 2011, Ronald Fortuna boarded a plane en route to Florida with Guy R. Miller and another acquaintance to obtain oxycodone. On July 3, 2011, investigators from the Multi-Agency Diversion Task Force in Palm Beach County, Florida arrested one of Ronald Fortuna’s acquaintances at the West Palm Beach Airport as the men boarded a return flight to West Virginia. Fortuna’s acquaintance was found to be in possession of 1,377 30-milligram oxycodone tablets. The individual cooperated with law enforcement and later told police that he, Ronald Fortuna, and Miller were instructed to travel to Florida to pick up prescription pain pills. He identified Michael Fortuna as the head of a drug trafficking organization who obtained oxycodone from Palm Beach County, Fla. and later distributed the pills in Logan County, W.Va. The cooperating source also admitted that he had been recruited to carry oxycodone pills on his person during a return flight to West Virginia.
Ronald Fortuna told police that he regularly sold oxycodone tablets from his Peach Creek residence from at least the summer of 2009 until late summer 2011. During the scheme, Ronald Fortuna distributed a total of approximately 2,500 30-milligram oxycodone tablets.
Guy Miller previously pleaded guilty in November to distribution of oxycodone. Miller, 39, who also previously pled guilty to federal charges in connection with a Logan arson scheme, faces a minimum of seven years in prison when he is sentenced on February 19, 2014.
The United States Postal Inspection Service, the US 119 Task Force, the Drug Enforcement Administration and the Logan County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Pharmacist Sentenced to Prison for Filling Fake Prescriptions in Exchange for Cash to Support Gambling AddictionRead the Press Release
PITTSBURGH - A Pittsburgh-area pharmacist pleaded guilty in federal court to a charge of violating federal narcotic laws and was also sentenced pursuant to that plea of guilty, United States Attorney David J. Hickton announced today.
Charles Brian Griffin, 27, pleaded guilty to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that from March 2011 until February 2012, Griffin conspired together with others to distribute and possess with intent to distribute oxycodone, a Schedule II controlled substance.
Specifically, the Court was advised that during this time period, Griffin worked as a pharmacist at Walgreens, primarily in its Washington, Pa., store. As a pharmacist, Griffin had access to controlled substances, namely oxycodone. Griffin, working together with a co-conspirator, knowingly filled large fraudulent oxycodone prescriptions provided to him by this co-conspirator. In exchange for doing this, the co-conspirator provided Griffin with tens of thousands of dollars in cash, which Griffin used to support his gambling addiction. In total, Griffin, working together with his co-conspirator, fraudulently diverted more than 8,000 30mg oxycodone pills over the course of this conspiracy.
After entering his plea of guilty, Judge Diamond sentenced Griffin to a term of imprisonment of 40 months, to be followed by three years of supervised release. The Court did not impose a fine on Griffin. The law provided for a total sentence of up to 20 years in prison, a fine of no more than $1,000,000, or both.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Charles Brian Griffin.
Operators of Loan Modification Scam That Targeted Struggling Homeowners Arrested in $12 Million SchemeRead the Press Release
SANTA ANA, California – An attorney this morning became the third defendant taken into custody in relation to a scheme that offered bogus loan modification assistance to struggling homeowners.
Ronald Rodis, 49, of Irvine, surrendered this morning to federal agents on charges alleging that he participated in, and lent his name and the law license he formerly possessed to, the fraudulent operation. Rodis lost his license to practice law in California when he resigned from the State Bar in 2009.
Federal agents yesterday arrested Bryan D’Antonio, 47, of Brea, and Charles Wayne Farris, 53, of Aliso Viejo, for their roles in the operation of the Rodis Law Group and America’s Law Group, businesses that allegedly offered bogus loan modification assistance.
All three defendants were named in a federal indictment unsealed yesterday following an investigation by the FBI and IRS-Criminal Investigation.
As a result of the scheme, more than 1,800 financially distressed homeowners cumulatively lost at least $12 million in fees they paid to the companies, the indictment alleges. Many homeowners also lost their homes to foreclosure.
During a nine-month period that began in October 2008, the Rodis Law Group and America’s Law Group allegedly defrauded distressed homeowners by making false promises and guarantees regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders, falsely representing that a “team of attorneys” would represent the homeowners and advising homeowners to cease making their mortgage payments.
“Posing as successful lawyers, these defendants offered struggling homeowners false hopes and bogus promises of quality legal representation,” said United States Attorney André Birotte Jr. “The market offering loan modifications is rife with fraud, which is why we have redoubled our efforts to investigate and prosecute those who engage in financial crimes that target distressed homeowners.”
Bill Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office, said: “The unconscionable act of scamming homeowners already facing foreclosure is far too common. This indictment should send a clear message to anyone contemplating similar crimes, and should also remind potential victims to be cautious before paying fees to those offering financial rescue, regardless of whether the solicitor holds a law degree.”
The Rodis Law Group, and its successor company, America’s Law Group, allegedly advertised loan modification assistance on radio stations nationwide. According to the indictment, many of these radio advertisements featured Rodis’ voice telling homeowners that a team of experienced attorneys who were “highly skilled in negotiating lower interest rates and even lowering your principal balance” would negotiate with mortgage lenders. Farris and D’Antonio hired and trained salespeople who allegedly told homeowners that Rodis Law Group was “100% successful,” “routinely lowered monthly payments,” and obtained reduced principal balances. According to the indictment, once the defendants and their co-conspirators convinced homeowners to pay a fee of several thousand dollars, little to no effort was made to obtain loan modifications. After making their payments, homeowners who tried to get updates on the status of their cases were often unable to contact anyone at either company.
“These arrests send a strong message to those who would prey on vulnerable homeowners during these tough financial times,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “If you defraud homeowners, you will be found and brought to justice.”
The indictment further alleges that D’Antonio committed these crimes after having been convicted of mail and wire fraud in 2003 for his role in a previous telemarketing scheme. The previous scheme resulted in a civil case by the Federal Trade Commission and ultimately a 2001 court order that permanently banned D’Antonio from participating in future telemarketing operations. The indictment in this case alleges that D’Antonio committed criminal contempt of court by directing the telemarketing activities of Rodis Law Group and America’s Law Group and by misrepresenting the services they provided.
“The defendants found a way to defraud financially distressed homeowners out of $12 million in fees from their loan modification scam,” said Joel P. Garland, Acting Special Agent in Charge for IRS Criminal Investigation’s Los Angeles Field Office. “Be assured that IRS Criminal Investigation, together with our partners and the U.S. Attorney’s Office, will hold those who engage in similar behavior fully accountable.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
D’Antonio, Farris and Rodis are each charged with 10 felony counts – nine counts of wire fraud and one count of conspiracy. Each of these counts carries a statutory maximum penalty of 20 years in federal prison. In addition, D’Antonio is charged with 13 counts of criminal contempt for violating the 2001 court order. Criminal contempt of court has no statutory maximum penalty.
Rodis is expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana.
Following their arrests yesterday, D’Antonio and Farris were arraigned and entered not guilty pleas. A trial for both men was scheduled for January 28 before United States District Judge David O. Carter. At yesterday’s hearing, D’Antonio was ordered detained (held without bond), and Farris was released on a $60,000 bond.
This indictment was brought as part of the President’s Financial Fraud Enforcement Task Force’s Mortgage Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, please visit www.StopFraud.gov.
Release No. 13-137
North Hills Man Violated Federal Drug LawsRead the Press Release
PITTSBURGH - A North Hills man pleaded guilty in federal court to charges of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Ryan Raithel, 33, of Wexford, Pa., pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from in and around July 2011, and continuing to in and around May 2013, Raithel conspired to distribute and possess with intent to distribute oxycodone and oxymorphone, Schedule II controlled substances. Additionally, on or about Aug. 10, 2012 Raithel possessed with the intent to distribute and did distribute a quantity of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
Judge Schwab scheduled sentencing for May 14, 2014. The law provides for a total sentence of up to 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, acting together with the Economy Borough and Cranberry Township Police Departments, conducted the investigation that led to the prosecution of Ryan Raithel.
North Dakota Woman Sentenced for Conversion of Tribal FundsRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on December 3, 2013, former Executive Director of the Eastern Shoshone Housing Authority, Joanne Lynn Seesequasis, a 45 year old Eastern Shoshone Tribal member, was sentenced by Chief United States District Judge Nancy D. Freudenthal to three years of probation, and was ordered to pay a $100.00 special assessment and $45,544.66 in restitution. Ms. Seesequasis previously pled guilty to the offense of Conversion of Tribal Funds. This case was investigated by the Housing and Urban Development Office of Inspector General.
Nashua Man Pleads Guilty to Bank RobberyRead the Press Release
CONCORD, N.H. – Bradford Mullane, 32, of Nashua, New Hampshire, has entered a guilty plea in the United States District Court for the District of New Hampshire to one count of bank robbery, announced United States Attorney John P. Kacavas.
Mullane walked into a TD Bank in Nashua, New Hampshire, on July 15, 2013, where he presented a handwritten note demanding money, and made off with more than $1,200 in stolen funds. Mullane, who faces a maximum sentence of twenty years in prison and criminal fines of up to $250,000, will be detained pending sentencing, which is presently scheduled for March 12, 2014.
This prosecution arose from an investigation by the Nashua, New Hampshire Police Department. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
Mission Man Charged with Simple Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Simple Possession of a Controlled Substance.
Steven Plank, age 29, was indicted on November 14, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 27, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 1 year in custody and/or a $100,000 fine, 1 year of supervised release, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
Plank is accused of possessing hydrocodone, a schedule III controlled substance.
The charge is merely an accusation and Plank is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Plank was released on bond pending trial. A trial date has not been set.
Miami Home Health Company Owner and Recruiter<br /> Sentenced for Role in $48 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter of a Miami health care company was sentenced to serve 108 months in prison today for his participation in a $48 million home health Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Emilio Amador, 46, was sentenced by U.S. District Judge Federico A. Moreno in the Southern District of Florida. In addition to his prison term, Amador was sentenced to serve three years of supervised release and ordered to pay $24 million in restitution, jointly and severally with co-defendants.
In September 2013, Amador pleaded guilty before Judge Moreno to one count of conspiring to receive health care kickbacks and two counts of receiving health care kickbacks.
According to court documents, Amador was a patient recruiter who worked for Caring Nurse Home Health Care Corp., a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
From approximately January 2006 through June 2011, Amador would recruit patients for Caring Nurse, and in doing so would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse in return for allowing Caring Nurse to bill the Medicare program on behalf of the patients Amador had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
According to court documents, Amador also pleaded guilty to his involvement with fraudulent billings for Nation’s Best Care Home Health Corp. as relevant conduct. Amador was the owner, operator and president of Nation’s Best. The fraudulent billings for Nation’s Best totaled approximately $30 million.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez, 44, and Raymond Aday, 49, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. The sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2012 indictment, which alleged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for those fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
Miami Home Health Company Owner and Recruiter Sentenced for Role in $48 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter of a Miami health care company was sentenced to serve 108 months in prison today for his participation in a $48 million home health Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Emilio Amador, 46, was sentenced by U.S. District Judge Federico A. Moreno in the Southern District of Florida. In addition to his prison term, Amador was sentenced to serve three years of supervised release and ordered to pay $24 million in restitution, jointly and severally with co-defendants.
In September 2013, Amador pleaded guilty before Judge Moreno to one count of conspiring to receive health care kickbacks and two counts of receiving health care kickbacks.
According to court documents, Amador was a patient recruiter who worked for Caring Nurse Home Health Care Corp., a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
From approximately January 2006 through June 2011, Amador would recruit patients for Caring Nurse, and in doing so would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse in return for allowing Caring Nurse to bill the Medicare program on behalf of the patients Amador had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
According to court documents, Amador also pleaded guilty to his involvement with fraudulent billings for Nation’s Best Care Home Health Corp. as relevant conduct. Amador was the owner, operator and president of Nation’s Best. The fraudulent billings for Nation’s Best totaled approximately $30 million.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez, 44, and Raymond Aday, 49, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. The sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2012 indictment, which alleged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for those fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Marijuana Dealer Found Guilty in Manhattan Federal Court of Three MurdersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced that KEVIN VENTURA was found guilty yesterday in Manhattan federal court of murder in connection with an arson and a marijuana distribution conspiracy, two counts of murder in connection with a marijuana distribution conspiracy, conspiracy to commit murder-for-hire, and murder-for-hire. VENTURA was convicted after a twelve-day jury trial before U.S. District Judge John G. Koeltl.
Manhattan U.S. Attorney Preet Bharara said: “This case is a prime example of how federal resources can successfully be brought to bear on ‘cold case’ murders in New York. We are proud to work with our partners at ICE’s Homeland Security Investigations and the NYPD to bring justice to victims and their families after so many years of waiting.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “The defendant in this case protected his drug smuggling empire through violence, including arson and murder, and terrorized New York City neighborhoods for years. The verdict holds the defendant accountable for his crimes and demonstrates HSI's commitment to working with our law enforcement partners in combating violent drug organizations that value profits more than human lives.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
In the mid-1990s, VENTURA managed the day-to-day operations of his father’s marijuana distribution business in the vicinity of 207th Street and Sherman Avenue in northern Manhattan. On April 11, 1995, VENTURA and a number of his associates in the marijuana business went to a discount store at 3856 10th Avenue that was operating a rival marijuana business, intending to set a fire in the store to shut down the competition. One of VENTURA's associates shot and killed the store clerk, Noel Montanez, while VENTURA set fire to the store.
In the summer of 1996, VENTURA hired two brothers to kill VENTURA’s cousin, Eugene Garrido, in exchange for $10,000, because of a dispute over the family marijuana business. On August 19, 1996, one of the two brothers shot and killed Garrido in the lobby of his apartment building at 34 Bogardus Place in northern Manhattan. A bystander, Carlos Penzo, who attempted to stop the fleeing shooter, was also shot and died from his injuries approximately a week later.
VENTURA, 42, of New York, New York, faces a mandatory minimum sentence of life in prison. He is scheduled to be sentenced by Judge Koeltl on March 14, 2014 at 2:30 p.m.
Mr. Bharara praised the investigative work of ICE HSI and also thanked the New York City Police Department for its assistance in the case.
This case is being prosecuted by the Office’s Violent Crimes Unit. Assistant United States Attorneys Margaret Garnett and Ryan P. Poscablo are in charge of the prosecution.
U.S. v. Kevin Ventura S3 Indictment
Louisville Physician Charged with Multiple Counts of Unlawful Distribution of Controlled Substances, Healthcare Fraud and Money LaunderingRead the Press Release
LOUISVILLE, Ky. – A Louisville physician was charged today, by a federal grand jury, with multiple counts of unlawful distribution of controlled substances, healthcare fraud and money laundering announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the fourteen count indictment, George Kudmani, age 68, operated an obstetrician/gynecological medical practice located at 9702 Stonestreet Road, in Louisville, Kentucky. The practice did not employ any other individual with medical training. On average, Kudmani would see more than 35 patients per day. A typical first-time patient would pay $75 for a gynecological exam, and each visit thereafter, the patient would typically pay $35 in cash and receive a Schedule II-V controlled substance prescription without a physical examination.
The indictment charges Kudmani with eleven counts of knowingly and intentionally distributing and dispensing controlled substances, not for a legitimate medical purpose and beyond the bounds of a professional medical practice, between January 2009 and September 2012. The controlled substances allegedly prescribed include, Oxycodone, Alprazolam, Clonazepam, Hydrocodone, Phentermine and Carisoprodol. Further, Kudmani is charged with two counts of health care fraud for allegedly submitting claims for medically unnecessary services and for writing prescriptions for medically unnecessary controlled substances between January 2009 and September 2012. The fraud charge states that Kudmani would perform medically unnecessary services and bill health care benefit programs for reimbursement.
The other fraud charge states that Kudmani knew patients would have the prescriptions filled at pharmacies and that the pharmacies in turn submitted claims to health care benefit programs for reimbursement.
In addition, Kudmani is charged with one count money laundering for purchasing a 2012 Honda Accord with $15,000 in cash and a $5,971.63 check from money derived from an unlawful activity, that is the unlawful dispensing and distribution of controlled substances and health care fraud.
If convicted at trial, Kudmani faces a maximum potential penalty of 230 years in prison, a fine of $10,250,000, and a 3 year period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and was investigated by the United States Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Kentucky Medical Fraud Control Unit and Louisville Metro Police Department (LMPD).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Legal Permanent Resident Alien Convicted of Possession of Child PornographyRead the Press Release
LAREDO, Texas – Daniel Frias Gomez, 22, a legal permanent resident born and raised in Jalisco, Mexico, has entered a guilty plea to possessing child pornography, announced United States Attorney Kenneth Magidson.
Gomez was apprehended on Sept. 27, 2013, as he applied for admission back into the United States via the Lincoln-Juarez International Bridge, Port of Entry No. 2, in Laredo as a passenger onboard a commercial bus. During the course of inspection, Customs and Border Protection officers discovered multiple electronic devices, including DVDs and memory cards.
Gomez, who had been residing with his immediate family in Iowa, claimed ownership of those devices. A search was conducted and approximately 200 child pornographic images and videos were discovered. Some of the images included variations of pornography, including some involving bestiality.
Gomez made claims that he was approached by an “unknown” male, who offered him pornographic images because he had a PSP device. He ultimately decided to plead guilty as charged.
U.S. District Judge Diana Saldana will set a sentencing date at a later time. At the time of that hearing, Gomez faces up to 10 years in federal prison. He also faces a potential fine of $250,000 and up to life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. Gomez will remain in custody pending that hearing.
Homeland Security Investigations and CBP investigated.
This case, prosecuted by Assistant United States Attorney Suntrease Williams, 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."