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24 January 2014
Two Sentenced for Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – Erica Porter and Obadiah Herring, both of Jackson, were sentenced on January 23, 2014 by U.S. District Judge Dan Jordan in connection with a tax refund identity theft conspiracy, announced U.S. Attorney Gregory K. Davis and Gabriel Grchan, Special Agent in Charge, Internal Revenus Service Criminal Investigation.
Erica Porter was sentenced to 10 months in federal prison for conspiracy to defraud the United States, and 24 months for aggravated ID theft, for a total of 34 months in federal prison followed by three years of supervised release. She was also ordered to pay restitution in the amount of $49,127 and forfeit a total of $49,127.
Obadiah Herring was sentenced to 18 months in prison followed by three years of supervised release for conspiracy to defraud the United States. He was ordered to pay restitution in the amount of $49,127, and forfeit a total of $49,127.
“Identity theft is a serious crime which exploits some of the most vulnerable members of our community. When combined with tax refund fraud, it threatens the financial security of our citizens,” said Gregory Davis, U.S. Attorney for the Southern District of Mississippi. “This office will continue to work with the Internal Revenue Service, U.S. Secret Service, and U.S. Postal Inspection Service to prosecute those who cause harm to the U.S. taxpayers and those persons whose identities are is stolen.”
“As we approach tax filing season, those who might consider preparing false tax returns using stolen identities should be aware of the extremely negative consequences as evidenced today,” said Gabriel L. Grchan, Special Agent in Charge of the New Orleans Field Office. “Today’s sentencing of Erica Porter and Obadiah Herring again emphasizes that IRS-CI, and our law enforcement partners, will continue to aggressively pursue and hold identity thieves accountable for their attempts to defraud America’s tax system."
Stolen identity refund fraud occurs when a person, without permission, uses a legitimate taxpayer’s identity to fraudulently file a tax return and claim a refund. This tax fraud tops the
Internal Revenue Service’s list Dirty Dozen Tax Scams for 2013.*
If you believe that you or someone you know may have had a tax return filed under your name as the result of identity theft, please visit www.IRS.gov, call 1-800-829-1040 or visit your local IRS office for further information.
This case was investigated by IRS Criminal Investigation and the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Scott Gilbert.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Two Adult Day Care Center Operators Sentenced in Manhattan Federal Court for Conspiring to Bribe New York State Assemblyman Eric StevensonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that IGOR TSIMERMAN and ROSTISLAV BELYANSKY (“SLAVA”) were sentenced today in Manhattan federal court to 24 and 18 months in prison, respectively, for conspiring to pay approximately $20,000 in bribes to New York State Assemblyman Eric Stevenson in exchange for Stevenson’s official acts, including drafting, proposing, and agreeing to enact legislation that favored the bribers’ business interests. TSIMERMAN was also sentenced for conspiring to bribe former New York State Assembly member Nelson Castro. TSIMERMAN and SLAVA pleaded guilty in September 2013 before U.S. District Judge William H. Pauley III, and were both sentenced today by Judge Pauley.
Manhattan U.S. Attorney Preet Bharara said: “Igor Tsimerman and Rostislav Belyansky thought they could buy legislation to suit their business needs, but as these sentences show, the bribes they paid to Eric Stevenson only bought them a trip to federal prison.”
According to the Complaint and the Indictment filed in Manhattan federal court, and statements made in public proceedings:
Stevenson has served as a member of the New York State Assembly since 2011 representing District 79, which includes various Bronx neighborhoods. The four businessmen –TSIMERMAN, SLAVA, Belyansky, and Binman – are individuals who, during 2012 and 2013, were seeking to open and manage adult day care centers in the Bronx, New York, including a center on Westchester Avenue (the “Westchester Avenue Center”), within Stevenson’s Assembly District, and a second center on Jerome Avenue (the “Jerome Avenue Center”), within then-Assemblyman Castro’s Assembly District. During that time period, they paid multiple bribes to Stevenson in connection with efforts to open and operate both centers.
For example, at a meeting on July 23, 2012, Stevenson, Belyansky, and TSIMERMAN discussed the opening of the Westchester Avenue Center. During this meeting, Stevenson said that on July 26, 2012, he was “having a night [event]” for “my reelection” and that he needed “support and help like everyone else.” Subsequently, on July 25, 2012, SLAVA provided a cooperating witness (the “CW”) with a check for $2,000 made out to Stevenson’s political action committee, which the CW provided to Stevenson. Stevenson did not disclose this check as a campaign contribution as required by New York State law.
At a September 7, 2012, meeting at a Bronx steakhouse, SLAVA and Belyansky offered to pay Stevenson $10,000 in exchange for calling Con Edison to expedite the installation of a gas line and assisting with obtaining a Certificate of Occupancy from the New York City Buildings Department at the Jerome Avenue Center, and for assistance recruiting senior citizens to attend the Westchester Avenue Center. Stevenson agreed, but when Belyansky attempted to hand him the $10,000 in an envelope, Stevenson indicated that he was concerned that there might be surveillance cameras in the restaurant, so he waited until he was outside of the restaurant to take the cash bribe. On September 18, 2012, Stevenson gave the CW a $1,500 cut of the $10,000 bribe in exchange for the CW’s assistance, and promised to pay the CW an additional $500.
On December 27, 2012, the CW met with Stevenson and showed Stevenson a copy of an email dated December 26, 2012, sent from the contractor for the Jerome Avenue Center to SLAVA and TSIMERMAN. In the email, the contractor stated that “[i]t is urgent . . . that we call the State Senator Eric Stevenson so that he can call the building department at once and ask them to have this application reviewed” in connection with getting “a permit to install the gas lines into the building.” After reviewing this email, Stevenson stated, “he’s not a smart guy . . . he’s not too bright, this guy” because “he put this in writing . . . why he got to put my name in it? . . . He shouldn’t have said that.” Stevenson said they needed to avoid creating a “paper trail.”
During that meeting, the CW and Stevenson also discussed the possibility of Stevenson introducing legislation that would establish a temporary moratorium on the construction and/or opening of new adult day care centers (the “Moratorium Legislation”), which would have the effect of eliminating competition with the Jerome Avenue Center and the Westchester Avenue Center, thereby substantially increasing the profits earned by those two centers. Stevenson told the CW: “All you gotta do is tell me what you want in the bill, and the bill drafter will put it together…I just need you to tell me what they [the co-defendants] want; we prepare the bill . . . . You can write down the language, basically what you want.” Stevenson then asked: “Are Igor [Belyansky] and them putting together a nice little package [of money] for me, huh?” He said: “I got my inauguration I gotta take care of, I got a lot of sh*t man.” Stevenson then said to the CW, in reference to the legislation, “I’m telling you, it’s done. It’s no problem.” Subsequently, the CW met with TSIMERMAN and Belyansky. TSIMERMAN said that as a result of the Moratorium Legislation, the value of their adult day care centers was “gonna skyrocket. . . . As long as [there’s a] moratorium, I can guarantee you at least a triple [in profits].”
On January 1, 2013, the CW and Stevenson spoke on the telephone and Stevenson referred to “Igor” [Belyansky] as “Santa,” in reference to the money he expected to receive. In a subsequent meeting on the same day in the CW’s car, Stevenson sought assurances that “Igor” [Belyansky] was going to “bless everything,” meaning pay Stevenson. He added that: “I got the inauguration, I want a blessing [payment] in place, man.” Two days later, the CW gave Belyansky and SLAVA a copy of a document titled “Proposed Adult Day Care Center Bill,” which contained a proposal for the Moratorium Legislation. On January 7, 2013, the CW provided the same proposal to Stevenson. Later that day, TSIMERMAN provided Stevenson with another copy of the proposal containing TSIMERMAN’s notes. On January 9, 2013, the CW told Belyansky that Stevenson wanted $10,000 for the Moratorium Legislation, with $5,000 paid up front. Two days later, on January 11, 2013, at the Westchester Avenue Center, SLAVA, TSIMERMAN, Belyansky, and Binman gave the CW $5,000 cash. The CW then left the Westchester Avenue Center with the envelope of money and got in his car where Stevenson joined him, at which time the CW gave the envelope of money to Stevenson, after taking out his $500 cut.
On January 27, 2013, Stevenson met with the CW and told the CW that he was concerned that TSIMERMAN might be cooperating with law enforcement officials and recording their conversations. Stevenson expressed a concern that if “they bring me down… somebody’s going to the cemetery.”
Stevenson had a draft of the Moratorium Legislation prepared by January 31, 2013, which he showed the CW at a meeting in his office and which was consistent with the bullet points prepared by the CW and SLAVA, TSIMERMAN, Belyansky, and Binman. On February 11, 2013, Stevenson told the CW: “We got the bill [the Moratorium Legislation] back today . . . [t]he bill is done now, it’s going out to the members . . . to the committee and . . . we’re gonna . . . try to push it to get it to the floor.” On February 16, in a hotel room in Albany, SLAVA gave $5,000 in cash to the CW, which the CW gave to Stevenson after taking a $500 cut. While the CW took out his $500 cut, Stevenson walked into the bathroom of the CW’s room and left the door open so that he could receive the $4,500 cash in the bathroom.
Stevenson introduced and sponsored Bill Number A05139, which places a temporary moratorium on the construction and/or opening of new adult day care centers within New York City on February 20, 2013, and it is currently pending before the New York State Assembly’s Committee on Aging.
Two days later, in a meeting between the CW and TSIMERMAN, Belyansky, and Binman, Belyansky said that the legislation would double the value of his share in the Jerome Avenue and Westchester Avenue Centers from approximately $350,000 to $700,000.
In addition to prison, TSIMERMAN, 47, of Staten Island, New York, was sentenced to three years of supervised release, and ordered to pay a $10,000 fine and a 200 special assessment fee. SLAVA, 42, of Bronx, New York, was also sentenced to three years of supervised release, and ordered to pay a $2,000 fine and a $100 special assessment fee.
Stevenson was convicted on January 13, 2014, of conspiring to commit honest services wire fraud, conspiring to commit federal programs bribery and to violate the Travel Act, committing federal programs bribery, and extortion under color of official right following a six-day jury trial before U.S. District Judge Loretta A. Preska. Stevenson is scheduled to be sentenced by Judge Preska on May 20, 2014.
Belyansky and Binman pled guilty in September 2013 to conspiring to commit honest services wire fraud in connection with their payment of bribes to Stevenson before Judge Pauley. They are scheduled to be sentenced by Judge Pauley on February 6, 2014.
Mr. Bharara praised the work of the investigators from the United States Attorney’s Office for the Southern District of New York and the District Attorney’s Office for Bronx County.
This prosecution is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Paul M. Krieger and Brian A. Jacobs and Special Assistant U.S. Attorney Pishoy Yacoub of the Bronx County District Attorney’s Office are in charge of the prosecution.
Tohono O’odham Man Sentenced to over 2 Years Prison for Stabbing of A Sells ManRead the Press Release
TUCSON, Ariz. –On Jan. 24, 2014, Darrell Scott Ortega, 26, of Tucson, Ariz., a member of the Tohono O’odham Nation, was sentenced by U.S. District Court Judge Cindy K. Jorgenson to 28 months in federal prison followed by three years of supervised release. Ortega pled guilty on July 23, 2013, to assault resulting in serious bodily injury.
This case involved the Nov. 5, 2011, stabbing of a Sells man, also a member of the Tohono O’odham Nation. The victim was at a social gathering at a residence in the Village of Kaka, when Ortega stabbed the victim in the abdomen.The investigation in this case was conducted by the Federal Bureau of Investigation and the Tohono O’odham Nation Police Department. The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-12-1486-TUC-CKJ
RELEASE NUMBER: 2014-005_OrtegaThree Men Arrested for Trafficking Heroin and Methamphetamine to Rocky Ford, ColoradoRead the Press Release
DENVER – Three men were arrested yesterday following a controlled delivery of heroin and methamphetamine to a house in Rocky Ford, Colorado, the U.S. Attorney’s Office and Southern Colorado law enforcement announced. The three men who were arrested appeared this afternoon in U.S. District Court in Denver, where they were advised of their rights and the charges pending against them. All three were remanded pending a detention and preliminary hearing, which is scheduled for Wednesday, January 29, 2014 at 10:00 a.m. before U.S. Magistrate Judge Boyd N. Boland.
Arrested by DEA agents and task force officers were Raymond Abeyta, age 34, Frank Gonzales, age 41, and Eric Garcia, Jr., age 29, all of Rocky Ford, Colorado. The arrest was based on a Criminal Complaint signed by a U.S. Magistrate Judge and obtained today.
According to the affidavit in support of the Criminal Complaint, on Wednesday, January 22, 2014, Arizona Department of Public Safety stopped a 2009 Nissan Maxima as it was traveling east on I-40 in Flagstaff, Arizona. A search of the vehicle was initiated. Two packages of heroin, weighing approximately 4.75 pounds were found in the padding of the rear seat back rests. Officers also recovered 3 pounds of methamphetamine which was concealed behind the glove compartment. Authorities learned that the drugs were destined for an address in Rocky Ford, Colorado. The driver had made one previous delivery of drugs three weeks prior.
The driver of the Nissan cooperated with authorities. The DEA Flagstaff Post of Duty worked with the DEA Colorado Springs Resident Office to establish a controlled delivery of the heroin and methamphetamine. On Thursday, January 23rd, 2014, the driver delivered the drugs to the Rocky Ford address. Immediately after the delivery was made, a federal search warrant was executed and three defendants were arrested. Seized from the residence was the heroin and methamphetamine, as well as approximately $100,000 in U.S. currency and a money counter.
All three defendants face one count of conspiracy to possess heroin, a Schedule I Controlled Substance, with intent to distribute over 1 kilogram. If convicted on that count, each defendant faces not less than 10 years, and not more than life in federal prison, as well as up to a $10,000,000 fine. The three defendants also face one count of conspiracy to possess methamphetamine, a Schedule II Controlled Substance, with the intent to distribute 500 grams or more. If convicted, all three face not less than 10 years, and not more than life in federal prison, as well as up to a $10,000,000 fine.
This investigation is being conducted by the DEA Colorado Springs Resident Office, the DEA Flagstaff Post of Duty, the Arizona Department of Public Safety, the Rocky Ford Police Department, and the Otero County Sheriff’s Office. The Southern Colorado Drug Task Force, which participated in this investigation, includes: DEA, FBI, and HSI/ICE, Colorado Springs Police Department, Pueblo Police Department, El Paso County Sheriff’s Office, Pueblo County Sheriff’s Office, Colorado State Patrol, and HIDTA.
The defendants are being prosecuted by Assistant U.S. Attorney Bradley Giles.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury.
The charges in the Complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
Tennessee and Virginia Orthopedic Clinics to Pay $1.85 Million to Settle <br /> Allegations of Billing Medicare for Reimported ProductsRead the Press Release
Two orthopedic clinics will pay a combined $1.85 million to resolve state and federal False Claims Act allegations that they knowingly billed state and federal health care programs for reimported osteoarthritis medications, known as viscosupplements, the Department of Justice announced today. Tennessee Orthopaedic Clinics P.C., headquartered in Knoxville, Tenn., will pay $1.3 million, and Appalachian Orthopaedic Clinics P.C., headquartered in Kingsport, Tenn., will pay $550,000.“The Department of Justice will not tolerate the conduct of companies that impermissibly shift risks onto patients in order to increase their own profits,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The department is committed to maintaining the integrity of the health care system, ensuring that patients receive drugs and devices that are safe and effective and taking action against companies that take chances with the health of consumers so as to improve their own bottom lines.”
Viscosupplements, such as Synvisc and Orthovisc, are injections approved by the Food and Drug Administration for the treatment of osteoarthritis pain in the knee. Viscosupplements are reimbursed by Medicare, Medicaid and other federal health care programs at a set rate based on the average sales price of the domestic product. The government contended that the clinics knowingly purchased deeply discounted viscosupplements that were reimported from foreign countries and billed them to state and federal health care programs in order to profit from the reimbursement system, when such reimported viscosupplements were not reimbursable by those programs. Allegedly, the reimported product included labeling in foreign languages and in English for additional uses not approved in the United States, which demonstrated that the product was reimported. Moreover, because the product was reimported, the government alleged there was no manufacturer assurance that it had not been tampered with or that it was stored appropriately.
“This scheme is yet another example of illegal actions by health care providers to profit from drugs imported into the United States,” said U.S. Attorney for the Eastern District of Tennessee William C. Killian. “Medicare and FDA requirements are designed to prevent potential harm to patients. Noncompliance with the law to increase profit at the risk of patients will be pursued by the Department of Justice.”
“Attempts to increase profits by circumventing the law will not be tolerated,” said Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta Derrick L. Jackson. “Health care providers buying cut-rate, cheap drugs from foreign sources will end up paying a steep price.”
The allegations resolved by the settlement were first raised in a lawsuit filed against the clinics under the qui tam, or whistleblower, provisions of the False Claims Act by Douglas Estey, a physician’s assistant who was occasionally paid by Genzyme Corp. to speak to medical providers about the use of Synvisc. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. Estey will receive $323,750.
The government’s investigation was a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Eastern District of Tennessee, the Department of Health and Human Services Office of Inspector General and Office of General Counsel, the Food and Drug Administration Office of Criminal Investigations and Office of Chief Counsel, the Federal Bureau of Investigation and the Tennessee Bureau of Investigation.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17.1 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case is captioned United States ex rel. Estey v. Tennessee Orthopaedic Clinics P.C., Appalachian Orthopaedic Associates P.C. and Appalachian Orthopaedic Partners LLC, Docket No. 3:12-cv-85 Varlan/Guyton. The claims settled by these agreements are allegations only; there have been no determinations of liability.
Tennessee and Appalachian Orthopedic Clinics to Pay Combined $1.85 Million to Settle False Claims Act Allegations That They Billed Medicare for Reimported ProductsRead the Press Release
KNOXVILLE, Tenn. – Two orthopedic clinics have agreed to pay a combined $1.85 million to resolve state and federal False Claims Act allegations that they knowingly billed state and federal health care programs for reimported osteoarthritis medications, known as viscosupplements. Tennessee Orthopaedic Clinics, P.C., headquartered in Knoxville, Tennessee, will pay $1.3 million and Appalachian Orthopaedic Clinics, P.C., headquartered in Kingsport, Tennessee, will pay $550,000.
Viscosupplements, such as Synvisc® and Orthovisc®, are injections approved by the Food and Drug Administration for the treatment of osteoarthritis pain in the knee. Viscosupplements are reimbursed by Medicare, Medicaid, and other federal health care programs at a set rate based on the average sales price of the domestic product. The government contended that the clinics knowingly purchased deeply discounted viscosupplements that were reimported from foreign countries and billed them to state and federal health care programs in order to profit from the reimbursement system, when such reimported viscosupplements were not reimbursable by those programs. Allegedly, the reimported product included labeling in foreign languages and in English for additional uses not approved in the United States, which demonstrated that the product was reimported. Moreover, because the product was reimported, the government alleged there was no manufacturer assurance that it had not been tampered with or that it was stored appropriately.
As U.S. Attorney Bill Killian explained, “This scheme is yet another example of illegal actions by healthcare providers to profit from drugs imported into the United States. Medicare and FDA requirements are designed to prevent potential harm to patients. Noncompliance with the law to increase profit at the risk of patients will be pursued by the Department of Justice.”
“Attempts to increase profits by circumventing the law will not be tolerated,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Health care providers buying cut-rate, cheap drugs from foreign sources will end up paying a steep price.”
The allegations resolved by the settlement were first raised in a lawsuit filed against the clinics under the qui tam, or whistleblower, provisions of the False Claims Act by Douglas Estey who was a speaker for Genzyme Corporation, which manufactured Synvisc and sold it in the United States. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. Mr. Estey will receive $323,750.
Mr. Killian further noted that this settlement resulted from a comprehensive investigation which began as a result of a qui tam or whistleblower complaint filed in 2012. The investigative team whose efforts resulted in this settlement was comprised of representatives from the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Office of General Counsel (OGC), the Food and Drug Administration (FDA) Office of Criminal Investigations (OCI) and Office of Chief Counsel (OCC), the Federal Bureau of Investigation (FBI), and the Tennessee Bureau of Investigation (TBI), coordinated by the U.S. Department of Justice (DOJ) Civil Division Fraud Section and the Civil Division of the U.S. Attorney’s Office for the Eastern District of Tennessee. U.S. Attorney Killian commended the cooperative efforts of the agencies which participated in this complex investigation, in particular, lead HHS-OIG Special Agent Tony Maffei, FBI Special Agent Joelle Olszewski, TBI Special Agent Denise Woodby, FBI Forensic Accountant LeAnn Lanz, FDA OCI Special Agents Alex Alvarado and Ron Houston, FDA OCC attorney Kelsey Schaefer, HHS-OIG attorney Maame Gyamfi, HHS OGC attorneys Eden Heard and Jessica Bowman, Assistant Tennessee Attorney General Eli Swiney, Assistant Virginia Attorney General Adele Nieburg, DOJ Trial Counsel Doug Rosenthal, and Assistant U.S. Attorney Suzanne Bauknight.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services, in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $12.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases in 2013 alone exceeded $3.8 billion. False Claims Act recoveries by the United States Attorney’s Office for the Eastern District of Tennessee alone during the period since January 2009 exceed $100 million.
Solon Couple Indicted for $750,000 Health Care FraudRead the Press Release
A Solon couple was indicted on nine counts of health care fraud for defrauding Medicaid out of approximately $750,000 by providing ambulette rides to patients who did not use or need wheelchairs, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.
Antwain Hamilton and Temeca Hamilton, both 37, were arrested this morning. They were indicted, along with the company they owned, Star Medical Transportation, located at 16004 Broadway Ave., Maple Heights, Ohio. Temeca Hamilton faces an additional count of witness tampering.
“These defendants are charged with stealing from a program designed to help those who cannot get themselves to doctors’ appointments,” Dettelbach said. “We will continue to prosecute those who abuse government programs for their own personal gain.”
"These individuals billed Medicaid for hundreds of thousands of dollars’ worth of services that they never provided and got paid for it in taxpayer dollars,” said Attorney General DeWine. “This type of fraud does not go unnoticed, and we will get that funding back so that it can go towards people who need healthcare services in Ohio.”
Ambulette services contract with the Ohio Medicaid programs to transport patients in vehicles known as ambulettes. An ambulette is a specially equipped van designed for wheelchair passengers. Medicaid pays ambulette operators for driving Medicaid patients to and from Medicaid-covered appointments, so long as the patient rides in a wheelchair, a medical doctor certifies the need for the wheelchair and ambulette and the ambulette itself otherwise meets safety specifications.
The defendants are charged with defrauding Medicaid out of approximately $750,000 between 2010 and 2013 by charging Medicaid for rides of patients who did not use or need wheelchairs, billing Medicaid for ambulette attendants when no such attendants were used and billing Medicaid for transports that never occurred.
The last count of the indictment alleges Temeca Hamilton tampered with a witness, a Medicaid recipient, by asking the witness to tell law enforcement that she had been receiving transportation services from Star Transport for the last five years, which is false.
This indictment is the result of an investigation by the Ohio Attorney General’s Medicaid Fraud Control Unit and the Office of the Inspector General, United States Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer and Special Assistant U.S. Attorney Constance Nearhood, an Assistant Attorney General for the State of Ohio.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sewickley Woman Sentenced to 10 Years in Federal Prison for Mortgage Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Sewickley, Pa., has been sentenced in federal court to 10 years imprisonment on her conviction of wire fraud and money laundering conspiracy in connection with a mortgage fraud scheme, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Denise Bonfilio, 56.
According to information presented to the court, Bonfilio participated in a mortgage fraud scheme that included presenting to lending institutions fraudulent loan applications that overstated the borrowers’ financial condition in connection with loans collateralized by properties located in the Sewickley and Fox Chapel sections of Allegheny County, Pa.
Prior to imposing sentence, Judge Conti stated that it was a serious offense. She said that Bonfilio harmed friends for greed and yet she showed no remorse for what she had done. The sentence was imposed to promote respect for the law.
Assistant United States Attorney James Y. Garrett prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Bonfilio. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Fraud Task Force include the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, the United States Department of Housing and Urban Development, Office of Inspector General, the United States Postal Inspection Service and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff’s Office, the Pennsylvania Attorney General’s Office, the Bureau of Consumer Protection, the Pennsylvania Department of Banking, the Pennsylvania Department of State, Bureau of Enforcement and Investigations and the United States Trustee’s Office.
Sentences Issued in Des Moines Methamphetamine InvestigationRead the Press Release
DES MOINES, IA B United States Attorney Nicholas A. Klinefeldt announced that nine individuals from the Des Moines, Iowa metro area have been sentenced on federal drug trafficking charges. Following the execution of multiple search and arrest warrants in December 2012, ten individuals were charged in the Southern District of Iowa with conspiracy to distribute 500 grams or more of methamphetamine and other substantive drug offenses, including: Juan Carlos Hernandez Gonzalez, Miguel Bazan Cardenas, Bertoldo Zuniga, Azael Bernal Balderas, Ubaldo Carrasco Alcantar, Josue Castaneira Cruz, Andres “Andy” Gomez, III, Gabriel Carrasco, Beverly Ann Hickcox and Danny Lee Iseminger. All ten of these individuals pled guilty to conspiracy to distribute methamphetamine.
The following nine individuals were sentenced by United States District Judge John A. Jarvey on January 22 and 23, 2014:
• Juan Carlos Hernandez Gonzalez, age 33 of Des Moines, was sentenced to 300 months imprisonment and ordered to serve a term of 5 years supervised release following imprisonment.
• Miguel Bazan Cardenas, age 36 of Des Moines, was sentenced to 90 months imprisonment followed by 5 years supervised release.
• Bertoldo Zuniga, age 60 of Des Moines, was sentenced to 48 months imprisonment followed by 3 years supervised release.
• Azael Bernal Balderas, age 31 of Des Moines, was sentenced to 60 months imprisonment followed by 5 years supervised release.
• Ubaldo Carrasco Alcantar, age 46 of Des Moines, was sentenced to 30 months imprisonment followed by 3 years supervised release.
• Josue Castaneira Cruz, age 34 of Des Moines, was sentenced to 27 months imprisonment followed by 3 years supervised release.
• Gabriel Carrasco, age 32 of Des Moines, was sentenced to time served and was also ordered to serve 3 years supervised release with special conditions of 4 months in a residential facility followed by 4 months house arrest.
• Beverly Ann Hickcox, age 61 of Des Moines, was sentenced to 18 months imprisonment followed by 3 years supervised release.
• Danny Lee Iseminger, age 54 of Newton, was sentenced to 104 months imprisonment followed by 5 years supervised release.
Each of the above defendants also was ordered to pay a $100 special assessment to the crime victim’s fund.
The remaining defendant, Andres “Andy” Gomez, III, age 25 of Bondurant, Iowa, is scheduled to be sentenced April 30, 2014, at the United States Courthouse in Des Moines.
This investigation focused on the distribution of multiple-ounce quantities of extremely pure methamphetamine in the Des Moines area. The organization received shipments of 30 pounds of methamphetamine at a time that originated from Mexico. Bulk cash shipments of drug proceeds were sent to Mexico by the organization, which was headed in the Des Moines area by Juan Carlos Hernandez Gonzalez. During the searches conducted in December 2012, agents seized 1.9 kilograms of 100% pure methamphetamine, $117,749 in drug proceeds and 17 firearms. Other properties, including a vehicle and residence, were also seized and forfeited as a result of the investigation.
The case was the result of the multiple-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF Program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Agencies involved in this case included the: Iowa Division of Narcotics Enforcement; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Des Moines Police Department; Homeland Security Investigations; Internal Revenue Service Criminal Investigations; Iowa Division of Criminal Investigations; Iowa Division of Intelligence; Iowa National Guard Counter-Drug Unit; Iowa State Fire Marshals; Iowa State Patrol; Mid-Iowa Narcotics Enforcement Task Force and Urbandale Police Department.
This case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
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Second Nurses Aide Sentenced for Conspiracy to Defraud the GovernmentRead the Press Release
NORFOLK, Va. – Festus Ighalo, 37, of Virginia Beach, Virginia, was sentenced today to 57 months in prison for conspiracy to defraud the government.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI); and Trevor Nelson, Assistant Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), made the announcement after sentencing by United States District Judge Arenda Wright Allen.
Ighalo pleaded guilty on October 8, 2013. According to court documents, Ighalo and his codefendant Emmanuel Effiong, both originally from Nigeria and now naturalized U.S. citizens, were formerly nurses aides at Sentara’s Virginia General Hospital in Virginia Beach. They used their positions there to obtain Personally Identifiable Information (PII), such as dates of birth and social security numbers, from thousands of patients mostly located in the Tidewater area. Then, with the help of others located elsewhere in the U.S. and Nigeria, that information was used to submit fraudulent federal tax returns with the Internal Revenue Service and receive tax refunds in the patients’ names. Effiong was sentenced to 81 months for conspiracy and aggravated identity theft on January 10, 2014.
This case was investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Elizabeth M. Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Rockford Man Sentenced to 57 Months in Federal Prison on Drug ChargesRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced today in federal court before U.S. District Judge Frederick J. Kapala as the last of seven defendants to be sentenced on related drug trafficking charges. ANGELO TURNER, 30, was sentenced to 57 months in prison without parole, to be followed by 3 years of supervised release, for conspiracy to possess with intent to distribute and distribution of cocaine. Turner pleaded guilty to the charge on Oct. 25, 2013, admitting that as early as May 2012 through Dec. 20, 2012, he conspired with others to distribute cocaine in the Rockford area.
Also charged were Angelo Turner’s brother, JOHN TURNER, 32, and MARQUICE FIELDS, 28, both of Rockford. John Turner pleaded guilty to the conspiracy and was sentenced on Oct. 24, 2013, to 51 months’ imprisonment, to be followed by 3 years’ supervised release. Fields pleaded guilty to using a mobile telephone to facilitate the drug conspiracy and was sentenced on Jan. 13, 2014, to 3 years’ probation.
In a related case, NICHOLAS CLARK, 32, RICHARD CLARK, 40, STEVEN KEENAN, 26, and RICHARD RILL, 48, all of Rockford, were charged and pleaded guilty to conspiracy to possess with intent to distribute and distribution of cocaine from early 2012 through December 2012. Nicholas Clark was sentenced on Aug. 14, 2013, to 120 months’ imprisonment, to be followed by 8 years’ supervised release. Richard Clark was sentenced on Nov. 14, 2013, to 60 months’ imprisonment, to be followed by 4 years’ supervised release. Keenan was sentenced on Sept. 10, 2013, to 60 months’ imprisonment, to be followed by 4 years’ supervised release. Rill was sentenced on Aug. 14, 2013, to 60 months’ imprisonment, to be followed by 5 years’ supervised release. None of the defendants will be eligible for parole.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; Carl J. Vasilko, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Richard Meyers, Winnebago County Sheriff; and Chet Epperson, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Rochester Man Pleads Guilty to Six Bank Robberies Across New York StateRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Robert Stevenson, 59, of Rochester, N.Y., who pleaded guilty to bank robbery before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine or both.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, on June 11, 2012, the defendant entered the First Niagara Bank at 2853 Delaware Avenue, in Kenmore, N.Y., approached a teller station and handed the teller a note which stated, “100.00 and 50.00.” Stevenson then tapped on his waistband and made a noise and gesture suggesting that he had a weapon under his shirt.
In addition to the First Niagara Bank robbery, the defendant also committed the following robberies:
• April 25, 2012, Citizens Bank, 2250 Hudson Avenue, Irondequoit, N.Y.
• May 11, 2012, HSBC Bank, 333 West Washington, Syracuse, N.Y.
• August 20, 2012, Adirondack Bank, 185 Genesee Street, Utica, N.Y.
• October 3, 2012, Bank of America, 50 Genesee Street, New Hartford, N.Y.
• November 5, 2012, Northwest Savings Bank, 210 W. Main Street, Falconer, N.Y.The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the Irondequoit Police Department, under the direction of Chief Richard Tantalo, the Syracuse Police Department, under the direction of Chief Frank Fowler, the Utica Police Department, under the direction of Chief Mark Williams, the New Hartford Police Department, under the direction of Chief Michael Inserra, the Kenmore Police Department, under the direction of Chief Peter Breitnauer, the Town of Ellicott Police Department, under the direction of Chief William Ohnmeiss, Jr., and the Albany Office of the Federal bureau of Investigation, under the direction of Special Agent in Charge Andrew Vale.
Sentencing is scheduled for May 7, 2014 at 1:00 p.m. before Judge Arcara.Rhode Island Businessman Pleads Guilty to Trafficking Contraband CigarettesRead the Press Release
PROVIDENCE, R.I. –Abdullah Alnahas, 36, of Cranston, owner and operator of a Cranston convenience store and a Providence laundromat, faces up to 10 years in federal prison for his participation in a contraband cigarette conspiracy that allegedly brought more than six million contraband cigarettes valued at more than $1.2 million dollars into Rhode Island from Virginia, and which allegedly cheated Rhode Island out of more than $500,000 in tax stamp payments.
Alnahas appeared before U.S. District Court Chief Judge William E. Smith on Thursday and pleaded guilty to one count each of conspiracy to engage in contraband cigarette trafficking and contraband cigarette trafficking. Alnahas is scheduled to be sentenced by Chief Judge William E. Smith on May 9, 2014.
Abdullah Alnahas’s guilty plea was announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations for New England; Scott E. Antolik, Special Agent in Charge of the Boston field office of the Social Security Administration, Office of the Inspector General/Office of Investigations; and William G. Squires, Special Agent in Charge of the northeast region of the U.S. Department of Agriculture Office of Inspector General.
Abdullah Alnahas is one of eight defendants named in federal grand jury indictments returned in May and September 2013, that allege that beginning in July 2011, the defendants participated in a scheme to traffic contraband cigarettes into Rhode Island. It is alleged that several “shell” corporations were created in Virginia and that several vacant retail storefronts in Virginia were rented for the stated purpose of purchasing and reselling cigarettes in Virginia. The cigarette packages purchased included Virginia tax stamps, reflecting a Virginia tax of thirty-five cents per package.
However, according to the indictments, it is alleged that more than 30-thousand cartons (6 million) of cigarettes valued at more than $1.2 million dollars that were purchased in Virginia were shipped to Rhode Island for resale in a truck bearing Rhode Island War Veteran Plates. It is alleged that on numerous occasions the truck was driven by a Rhode Island man, while wearing his United States Army uniform, in an effort to gain favor and avoid law enforcement detection.
To date, co-defendants Valeria Mendez (Khalil) and Richard Larrain have filed notice with the court of their intention to plead guilty for their roles in the conspiracy and other alleged illegal activities. A trial date of April 8, 2014, has been scheduled for the remaining defendants, Bassam Kiriaki, Wissam Khalil, Bassam Khalil, and Najd Khalil. An arrest warrant has been issued for an eighth defendant, Nazir Khalil.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Portland Woman Indicted for Tax Refund FraudRead the Press Release
Allegedly Sought $400,000 in Fraudulent RefundsPortland, Ore. – Latisha L. Simmons, 34, of Portland, Oregon, has been indicted on sixteen counts of wire fraud, sixteen counts of filing false claims for tax refunds, and one count of aggravated identity theft, the Justice Department announced. Simmons made her initial appearance in court today before U.S. Magistrate Steven P. Logan in Phoenix, Arizona. The defendant was released on pre-trial conditions pending an initial appearance in U.S. District Court in Oregon on February 20, 2014.
According to the 33-count indictment, Simmons electronically filed at least 52 false tax returns, requesting at least $400,000 in fraudulent refunds. Simmons is alleged to have obtained the names and Social Security numbers of other individuals, including those of a deceased person, in order to file false tax returns in their names. According to the indictment, Simmons had the fraudulent refunds deposited onto stored-value debit cards and mailed to her own address, addresses she could access or control, or deposited into bank accounts that she could access or control.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Simmons faces a maximum sentence of five years in prison for each false claims count, up to 20 years in prison for each wire fraud count, and a mandatory two-year sentence on the aggravated identity theft count. If convicted, she could be subject to fines, mandatory restitution, and a money judgment.
This case was investigated by the IRS Criminal Investigation Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Todd P. Kostyshak of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Pharmacist Admits Multiple Sales of Oxycodone Without A Prescription, Agrees to Forfeit $1.5 MillionRead the Press Release
NEWARK, N.J. – The former pharmarcist-in-charge of West Orange Pharmacy today admitted to illegally distributing hundreds of tablets of oxycontin in exchange for thousands of dollars in cash, U.S. Attorney Paul J. Fishman announced.
Leonard “Lenny” Stefanelli, 49, of East Hanover, N.J., pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to an information charging him with illegally dispensing oxycodone. Stefanelli also admitted to conspiring with brothers Robert Carlucci and William Carlucci, both 70, both of Florham Park, N.J., to submit fraudulent bills to health care benefit providers, including Medicare and Medicaid.
Stefanelli agreed forfeit $1.5 million, consisting of illegal profits obtained from his illegal sales of oxycodone and his submission of fraudulent bills to health care benefit providers.
According to documents filed in this and other cases, and statements made in court:
Oxycodone, the active ingredient in brand name pills such as Oxycontin, is a Schedule II controlled substance B meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence. A pharmacist can only dispense a Schedule II controlled substance when presented with a written prescription from a doctor.
From February 1, 2012, to August 6, 2012, on at least six separate occasions, Stefanelli sold hundreds of tablets of Oxycontin to an individual, without a prescription, in exchange for cash. Each sale took place inside West Orange Pharmacy. For example, on Feb. 8, 2012, Stefanelli sold one bottle of 100-count Oxycontin 30-mg tablets and one bottle of 100-count Oxycontin 15-mg tablets for $1,800.
Between 1992 and October 2012, Stefanelli conspired with Robert Carlucci and William Carlucci to submit fraudulent bills to health care benefit providers, including Medicaid and Medicare, reaping at least $921,634 from his scheme. Robert Carlucci and William Carlucci previously pleaded guilty to committing health care fraud by participating in a variety of schemes designed to cheat customers and bilk insurance companies out of millions of dollars. They are both scheduled to be sentenced on Feb. 27, 2014.
The narcotics distribution charge to which Stefanelli pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of up to $1,000,000. Sentencing is scheduled for April 30, 2014, before U.S. District Judge Faith S. Hochberg.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski; and special agents of the Food & Drug Administration’s Office of Criminal Investigations, under the direction of Mark Dragonetti, with the investigation leading to today’s guilty plea. He also thanked the Elizabeth, Clinton, Toms River, West Orange, and Marlboro police departments, along with the Essex County Sheriff’s Department, for their work on this case.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Carlos Ortiz Esq., Morristown, N.J.
Stefanelli Information
Owner of Harrisburg Labor Supply Businesses Charged with Withholding Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that a federal grand jury in Harrisburg returned a 17-count indictment against Howard Ginting, age 29, of Harrisburg, PA, on January 22, 2014. The Indictment charges Ginting with tax evasion and with failing to pay withholding taxes totaling $216,846.70 on income of approximately $1 million. Howard Ginting was the sole owner of Ginting Enterprises, Inc., a Pennsylvania corporation located in Harrisburg, Pennsylvania
According to U.S. Attorney Peter Smith, Ginting Enterprises allegedly supplied day laborers to businesses in central and northeastern Pennsylvania on an as-needed basis. As the owner and operator of the corporation, Ginting was required to withhold from the wages of the GEI employees the Federal Insurance Contributions Act (FICA) taxes on a quarterly basis. From October, 2006 through on or about February, 2008, Ginting Enterprises allegedly paid wages totaling approximately $851,553. Ginting falsely reported to the IRS that he had only paid wages in the amount of approximately $68,549, underpaying the Social Security tax and Medicare taxes owed by GEI by approximately $119,799.
On or about February, 2008, Ginting shut down Ginting Enterprises and operated his same labor supply business under the name Trojan Services, Inc. Between February, 2008 and May, 2011, while being operated by Ginting, Trojan paid wages of approximately $638,477, but Ginting allegedly failed to report to the Internal Revenue Service (IRS) all wages paid to his employees, underpaying Social Security tax and Medicare taxes owed by Trojan by approximately $97,047. This resulted in underreporting the employee and employer share of the Social Security and Medicare taxes in the total amount of approximately $216,846.
The case was investigated by the Harrisburg office of the Internal Revenue Service. Assistant U.S. Attorney Gordon Zubrod coordinated the grand jury investigation and has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 75 years’ imprisonment, a term of supervised release following imprisonment, and a fine of over $300,000 as well as significant tax penalties. 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.
Owner of Forty Fort GM Foodmart Store Pleads Guilty to Money Laundering ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 47-year-old Forty Fort businessman pleaded guilty yesterday in Scranton before Senior U.S. District Court Judge Edwin M. Kosik to participating in a conspiracy to launder drug proceeds related to the distribution of synthetic marijuana.
According to United States Attorney Peter Smith, the defendant, Mastan Mathan, of Forty Fort, admitted to conducting financial transactions with drug proceeds that were designed to conceal the nature of the proceeds and carry on the illegal distribution of synthetic marijuana. The money laundering activity occurred between October 2011 and July 2012, and involved approximately $310,000.
Mathan was charged in a criminal Information filed by the United States Attorney last week. Mathan and his co-conspirators obtained synthetic marijuana from out-of-state suppliers, sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort, and deposited the proceeds of drug sales into at least two bank accounts to conceal the illegal nature of the proceeds and to promote the carrying on of the illegal drug business.
The prosecution of Mathan resulted from an investigation by the IRS-Criminal Investigations, the Drug Enforcement Administration, and the Pennsylvania State Police.
Mathan faces up to 20 years in prison and a $500,000 fine. Mathan forfeited approximately $174,000 to the United States that was seized by agents during the investigation.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Northern Kentucky IRS Financial Technician Sentenced to 28 Months for Stealing Identities and Committing Mail FraudRead the Press Release
COVINGTON, KY -A financial technician, employed in an office of the Internal Revenue Service (IRS) located in Boone County, KY., was sentenced to 28 months in federal prison for unlawfully accessing an IRS computer to obtain personal information about taxpayers.
U.S. District Judge Amul Thapar sentenced 33-year-old Joy Fox of Independence, KY., on Thursday for aiding and abetting mail fraud and one count of aiding and abetting aggravated identity theft. Under federal law, Fox will have to serve at least 85 percent of her prison sentence.
Fox pleaded guilty in September 2013 and acknowledged that as part of her official duties she had access to the Integrated Data Retrieval System (IDRS). IDRS is a computer system that maintains taxpayer information including names, social security numbers and dates of birth of taxpayers. Fox’s authorized access to the computer system was limited to official business use only.
Fox admitted she used IDRS without authorization to steal the identities of taxpayers. She provided the information to her co-defendant, Patrick Sharpe, 23, who lived in Tallahassee, FL. Sharpe specifically requested that Fox obtain the personal information of individuals 65 or older who were eligible for Social Security benefits. The defendants had planned for Sharpe to apply online for debit cards using the stolen identities and fund the cards with those individuals’ Social Security benefits.
Sharpe has admitted that he used false addresses in the application process so the cards would be delivered to locations where they could be picked up and used without the knowledge of the individuals whose identities had been stolen. Investigators discovered the scheme before the defendants could use the victims’ debit cards.
Sharpe pleaded guilty in October 2013 to aiding and abetting mail fraud and aiding and abetting aggravated identity theft. Sharpe will be sentenced on February 20, 2014.
Kerry B. Harvey, United U.S. Attorney for the Eastern District of Kentucky; James D. Robnett, Special Agent in Charge, IRS-Criminal Investigations Division, Tampa, FL., and Michael Wallenhorst, Special Agent in Charge, Treasury Inspector General Tax Administration, Chicago Field Division, jointly announced the sentence.
The investigation was conducted by agents of the IRS-Criminal Investigation Division, Tallahassee, Fla.; the Leon County Sheriff’s Office, Tallahassee, and agents of Treasury Inspector General Tax Administration, Covington, KY. Assistant U.S. Attorney Laura Voorhees prosecuted this case for the U.S. Attorney’s Office on behalf of the federal government.
Nevada Man Sentenced for Voluntary ManslaughterRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Jan. 24, 2014,Waylon S. Hicks, 22, Schurz, Nev., was sentenced by U.S. District Judge Daniel L. Hovland after having been convicted of a charge of voluntary manslaughter by a federal jury on Sept. 20, 2013.
Judge Hovland sentenced Hicks to nine years in federal prison, to be followed by three years of supervised release. Hicks was ordered to pay restitution of $7043 and a special assessment of $100 to the Crime Victim’s Fund.
On July 20, 2012, Hicks stabbed Jeremiah Sage in the chest while the two were in a motor vehicle parked at the New Town Marina on the Fort Berthold Indian Reservation. According to trial testimony, Hicks exited the vehicle after the initial stabbing, and while the vehicle was in motion, Hicks jumped onto the running board of the vehicle and slashed Sage in the throat twice. Hicks fled on foot and called authorities. The vehicle subsequently caught on fire. Sage’s body was located inside the vehicle after the fire was extinguished. According to testimony from the North Dakota State Medical Examiner, Sage died from the stab wound to the chest.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Fort Berthold Agency, the Three Affiliated Tribes Police Department, the Mountrail County Sheriff’s Office, and the North Dakota State Fire Marshal.Assistant U.S. Attorney Rick Volk prosecuted the case.
Mother of 7th Street Gang Member Pleads Guilty to RICO ConspiracyRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Carmen Geter, 41, of Buffalo, N.Y., pleaded guilty to Racketeering Influenced Corrupt Organizations (RICO) conspiracy before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine or both.
“This case demonstrates both the reach of federal racketeering laws as well as our continuing commitment to root out all violent gang members and those who illegally support them,” said U.S. Attorney Hochul.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant is the mother of 7th Street Gang member and co-defendant Kasiem Williams. As a member of the conspiracy, Geter facilitated the criminal activities of the enterprise by providing rides in her vehicle to members and associates of the gang at the request of co-defendant Efrain Hidalgo. Those activities including the selling of heroin, cocaine and marijuana in the territory controlled by the 7th Street Gang and Cheko’s Crew. The defendant knew that those she provided rides for were involved in the distribution of illegal narcotics, firearms possession, and violent crimes.
Charges are pending against Efrain Hildalgo and Kasiem Williams. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The pleas are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Office.
Sentencing is scheduled for May 1, 2014 before Judge Arcara.Michigan Man Sentenced for Making False StatementsRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Michael T. Henson, 51 of Fowerville, Michigan, who was convicted of making false statements, was sentenced to 18 months in prison by District Court Judge Richard J. Arcara. The judge also ordered the defendant pay restitution in the amount of $127,091.08 to the victims in this case.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that defendant was contracted to transport an interstate shipment of 20 tons of copper and brass via tractor trailer from Buffalo, N.Y. to Lonoke, Arkansas, and Midland, Texas. The shipment was valued at approximately $130,000. On June 22, 2010, Henson picked up the shipment in Buffalo but it was never delivered to its intended recipients. On July 13, 2010, the defendant had a telephone conversation with a Special Agent of the Federal Bureau of Investigation from Buffalo regarding the missing shipment. Henson stated that he dumped the load of copper he was hauling along a rural road near West Memphis, Arkansas when in fact he had not. Cellular telephone records for the defendant revealed that during the relevant time period, Henson did not travel to the State of Arkansas.
The conviction is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-In-Charge, Brian P. Boetig.Miami-Dade Resident Sentenced in Tax Preparation Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Rigoberto Cabrera, 37, of Miami-Dade County, was sentenced today for his participation in a tax preparation fraud scheme. Cabrera was sentenced to 292 months in prison, to be followed by three years of supervised release. Cabrera was also ordered to pay restitution in the amount of $1,526,622.
A federal jury previously convicted Cabrera on 29 counts, including one count of conspiracy to defraud the government with respect to claims, one count of conspiracy to commit wire fraud, 18 counts of making false claims to the IRS, four counts of wire fraud, one count of conspiracy to commit money laundering, and four counts of money laundering.
According to the indictment and evidence presented during the trial, defendant Cabrera and co-conspirator Carlos Perez, 34, also of Miami-Dade County, recruited individuals and offered to prepare their individual income tax returns with the promise that the defendants could obtain substantial tax refunds for the taxpayers. The recruited taxpayers agreed to pay Cabrera and Perez a percentage of the refunds they received. The defendants then prepared fraudulent 2008 and 2009 federal income tax returns on behalf of the recruited taxpayers, claiming tax credits or deductions to which the taxpayers were not entitled. After the taxpayers received the fraudulent refunds from the IRS, Cabrera and Perez collected a percentage of the funds from the taxpayers through checks payable to companies that the defendants controlled and shell companies.
Through this scheme, the defendants claimed approximately $10,242,667 in tax refunds from the IRS.
Carlos Perez was sentenced on December 5, 2013 to 33 months in prison, to be followed by three years of supervised release. Perez pled guilty on September 19, 2013 to Counts 1 and 21 of the superseding indictment, which charges the defendant with conspiracy to defraud the government with respect to claims, and to conspiracy to commit wire fraud.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Daniel Bernstein and Alejandro O. Soto.
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.
Man Charged with Defrauding Fema After Massachusetts Tornado in 2011Read the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Bridgeport returned an indictment yesterday charging ROBBIE ROSSI, 41, formerly of Massachusetts, with two counts of mail fraud arising from a scheme to fraudulently obtain disaster relief funds from the Federal Emergency Management Agency (FEMA).
As alleged in the indictment and other court documents, a severe storm and tornado outbreak struck central Massachusetts on June 1, 2011. After a Presidential Declaration authorized FEMA to provide disaster relief funds to local residents, ROSSI obtained more than $12,000 in disaster relief benefits by falsely representing that he lived at a residence on New Bridge Street in West Springfield, Mass., that had been damaged by the storm. As part of the scheme, ROSSI provided FEMA with false documentation of rent payments he claimed to have paid in the months following the storm. Between August 2011 and April 2013, ROSSI is alleged to have received payments at various addresses that he supplied to FEMA, including a residence in Enfield, Conn.
ROSSI was arrested on January 14 in Las Vegas pursuant to a federal arrest warrant that was based on the conduct charged in the indictment. He is detained pending his transport to Connecticut to face the charges.
If convicted, ROSSI faces a maximum term of imprisonment of 30 years on each count.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Office of the Inspector General of the U.S. Department of Homeland Security and is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
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U.S. ATTORNEY'S OFFICE
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(203) 821-3722 [email protected]Lyons Man Sentenced for Felon in Possession of a Firearm ConvictionRead the Press Release
Adam Beck, age 50 of Lyons, Nebraska, was sentenced for his conviction for being a felon in possession of a firearm. United States District Court Judge Joseph F. Bataillon sentenced Beck to 110 months imprisonment and three years of supervised release.
In August of 2012, Beck’s residence was searched by the Thurston County Sheriff’s Department in connection with an investigation of another individual. During the search, various firearms were located including a Ruger rifle which had been reported stolen in Burt County, a Winchester rifle and a Savage Arms rifle. DNA testing indicated that Beck was the major contributor of DNA found on two of the weapons and that he was a minor contributor of DNA found on the third rifle. At the time of the search, Beck was on supervised release from a 2007 federal conviction for being a felon in possession of a firearm.
This case was investigated by the Federal Bureau of Investigation.
Leader of “Pump and Dump” Stock Fraud Scheme Sentenced in Manhattan Federal Court to Nine Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DAVID LEVY was sentenced today to nine years in prison after having been found guilty by a federal jury for orchestrating “pump and dump” stock fraud schemes that employed the Internet and social networking sites, among other tools, to manipulate the price of penny stocks as well as participating in an international money laundering scheme. DAVID LEVY was sentenced in Manhattan federal court by U.S. District Judge Paul A. Crotty who also presided over the three-week jury trial. David Levy’s wife and co-defendant, Donna Levy, who also was found guilty by the federal jury for her role in this and other schemes, is scheduled to be sentenced by Judge Crotty on February 5, 2014.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentence David Levy will now pay a heavy price for the massive ‘pump and dump’ schemes that he and his wife orchestrated, which defrauded multiple victims of millions of dollars – the loss of his liberty.”
According to the evidence introduced at trial, court filings, and statements made in court:
The Start-Up Company Stock Fraud Scheme
The scheme worked as follows: DAVID LEVY and Donna Levy offered to help start-up companies obtain financing, take the start-up companies public, and coordinate marketing and investor relations for the companies, in exchange for company shares. Once they had helped the companies go public, Donna Levy put out press releases on behalf of the target companies, and she worked with her husband to secretly fund and distribute misleading third-party "buy" recommendations concerning the targeted companies. This misleading promotional campaign, along with other manipulative conduct, generated demand for stock in the targeted companies, and caused the price of the stocks to rise. DAVID LEVY, Donna Levy, and their co-conspirators took advantage of the "pumped-up" stock trading volume and price to "dump" their shares into the market until the misleading promotional campaign had run out of steam. They would repeat the scheme multiple times until the target companies' shares were essentially valueless, thereby harming company founders and executives, as well as innocent investors who bought in reliance on the misleading promotional campaigns orchestrated by DAVID LEVY and Donna Levy. DAVID LEVY was convicted of engaging in this pump and dump scheme with three companies that he helped take public: Cardiac Network, Inc., which has traded under symbol ACNWI,@ Banneker, Inc., which has traded under symbol “BANI,” and Greenway Design Group, Inc., which has traded under symbol “GDGI.”
The International Money Laundering Scheme
DAVID LEVY also was convicted of a money laundering conspiracy in connection with his efforts to conceal more than $2.3 million in proceeds of the fraudulent schemes in Panamanian shell company bank accounts maintained by a co-conspirator at a bank in Panama. In connection with the scheme, DAVID LEVY wire transferred $150,000 in fraud proceeds to a Panamanian shell company bank account through a bank account in New York. DAVID LEVY carried more than $2 million in cashier’s checks, representing proceeds from stock fraud, to Panama and caused them to be deposited into the shell company bank accounts.
Nine additional defendants already have pled guilty to charges arising out of the conduct described in the Indictment, and five of the nine have been sentenced. The relevant plea dates and, where applicable, the sentences imposed are set forth in the attached chart.
In addition to the prison sentence, Judge Crotty sentenced DAVID LEVY, 61, of Fort Lauderdale, Florida, to three years of supervised release and ordered him to pay a $500 special assessment fee. In addition, DAVID LEVY was also preliminarily ordered to forfeit $12 million, his home in Florida, certain luxury vehicles, and certain bank accounts.
This case originated and the schemes were uncovered as part of the Government’s long-term investigation into criminal conduct at the Port of New York-New Jersey. Mr. Bharara thanked the Internal Revenue Service-Criminal Investigations’ New Jersey office, as well as the other participants in the High Intensity Drug Trafficking Area Task Force, which includes the Drug Enforcement Administration and Homeland Security Investigations’ New Jersey Offices, for their assistance with the investigation. Mr. Bharara also thanked the Securities and Exchange Commission and the Financial Industry Regulatory Authority for supporting the investigation, which is ongoing.
The prosecutions are being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Howard S. Master and Carrie H. Cohen are in charge of the prosecutions.
Lacey Act Case IndictedRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, announces that after an approximate eighteen month undercover investigation by the National Oceanic and Atmospheric Administration, Florida Fish and Wildlife Conservation Commission and the Alabama Department of Natural Resources, eight commercial fishermen and a seafood dealer were charged in two separate indictments by a federal grand jury, and arraigned in Mobile, Alabama today. The individuals were charged in an ongoing scheme allegedly conspiring to illegally harvest and transport reef fish, including red snapper and grouper, across state lines and falsifying documents in order to circumvent the Gulf of Mexico Individual Fishing Quota management plan. Hunter Evans, owner of Bay City Meat Co., Josh Jones, James Martin, Natalie McArdle, Matthias Kumm, David Braley, Tiffany Cooner Wilson, all from Baldwin County, and JohnWhitworth of Pensacola, Florida were charged with buying and selling illegal reef fish to undercover state and federal investigators. The investigation was furthered by business records and other documents obtained from search warrants executed in Alabama and Florida.
Most of the violations involve 16 USC ' 3372, the Lacey Act, which prohibits interstate shipment of fish or wildlife taken in violation of state law. Each Lacey Act violation carries a possible five-year prison term. This is a continuing investigation.
As in all criminal cases, the Indictment returned by the Grand Jury is only a charge and the Defendants are presumed innocent.
Kidnapper ConvictedRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has returned a guilty verdict against Miguel Angel Navarro, 36, of Hidalgo, on two counts of conspiracy to commit and committing hostage taking, announced United States Attorney Kenneth Magidson. The verdict was returned following a four-day trial and less than four hours of deliberation.
The victim testified at trial and told the jury about the events that unfolded Sept. 25-26, 2012, during which she was forcibly taken from a University of Texas-Pan American parking lot and put in a vehicle occupied by Navarro as well as Milton Leonel Trevino and Onan Herrera-Sanchez. She was then taken to another location where she was transferred to a different vehicle and ultimately to the residence of Trevino, where she was held against her will.
Trevino, 21, of Pharr, and Herrera-Sanchez, 29, of Honduras, both pleaded guilty in the case prior to the commencement of this trial. Trevino testified for the government and admitted he and the others knowingly and intentionally conspired with each other to detain and make threats in order to compel another person to pay a sum of money as an explicit or implicit condition of the victim’s release. Trevino admitted he assisted in the actual abduction of the victim and he guarded her while they waited for the ransom money.
The victim’s father also testified and described to the jury about receiving the ransom calls, during which a demand for money was made in exchange for his daughter’s release. He further testified that during the calls, he was told that if the money was not paid, he would never see his daughter again.
Navarro's former wife testified that at his request she assisted in transporting the victim from one location to another. She further claimed she was unaware of the kidnapping at that time, but suspected the female was the victim of the university kidnapping once she was made aware of media news reports. She further admitted she spoke to Navarro during the early morning hours of Sept. 26, given her concerns of his involvement in the kidnapping. At that time, he told her, among other things, not to worry and that they were just trying to get money.
The victim was eventually released physically unharmed by Trevino.
At the inception of the case, the defense claimed Navarro was not involved in the offense. After the testimony of numerous government witnesses, the defense attempted to discredit the witnesses and claimed Trevino and Navarros's former wife lied during their testimony in exchange for favorable consideration in connection with their pending charges.
Ultimately, the jury did not believe him and found Navarro guilty as charged.
Navarro and the others have been and will remain in custody pending sentencing, which is set for April 10, 2014, at 09:00 a.m. before United States District Judge Randy Crane. All face up to life imprisonment and a $250,000 fine.
The investigation was the result of a joint investigation by the FBI and the University of Texas-Pan American Police Department with assistance from the Edinburg Police Department and Texas Rangers. This case is being prosecuted by Assistant United States Attorney Linda Requénez and Grady J. Leupold.
Jury Convicts 20-Year-Old of Smuggling $1 Million in MethRead the Press Release
BROWNSVILLE, Texas - A federal jury has convicted Jaime Homero Guerrero of conspiracy to possess and possession with intent to distribute more than 50 grams of methamphetamine, announced United States Attorney Kenneth Magidson. The jury returned its verdicts today following more than two days of testimony and approximately five hours of deliberation.
Guerrero, 20, was a passenger in a 2010 Nissan on April 5, 2013, when it was stopped for a traffic violation on Highway 77 near Raymondville in Willacy County. At that time, officers found 36 packages containing a total of 26.16 kilograms of methamphetamine.
Guerrero initially stated he was headed from Matamoros, Mexico, to a Quincenera in Houston. He later claimed he was going to deliver the vehicle to Houston.
Also charged was Oraldo Arvey Castro-Rocha, who was driving the Nissan and later pleaded guilty.
At trial, agents testified the methamphetamine Guerrero and Castro smuggled was valued at nearly $1 million in the Houston area.
U.S. District Judge Andrew S. Hanen, who presided over the trial, has set sentencing for April 28, 2014, at which time Guerrero faces a mandatory minimum term of 10 years and up to life in federal prison on each count of conviction as well as a possible $10 million fine. He has been in custody since his arrest where he will remain pending sentencing.
The case was investigated by Drug Enforcement Administration and the Texas Department of Public Safety. Assistant United States Attorneys Carrie Wirsing and David A. Lindenmuth prosecuted the case.
Judge Sentences Heroin Trafficker to 5 Years in PrisonRead the Press Release
PITTSBURGH- A Pittsburgh man has been sentenced in federal court to 60 months in prison after pleading guilty to violating federal drug laws, United States Attorney David J. Hickton announced today. This term of imprisonment is to be followed by three years of federal supervised release. United States District Judge Cathy Bissoon imposed the sentence on Dorianne Harris, 20.
According to information presented to the court, from in and around May 2012, and continuing thereafter to in and around March 2013, in the Western District of Pennsylvania and elsewhere, Harris conspired with others to distribute and possess with the intent to distribute 100 gram or more of heroin, a Schedule I controlled substance. The Court learned that Harris received multi-brick quantities of heroin from co-defendant Troy Anderson on a regular and continual basis, and that Harris then sold this heroin to others. Each brick of heroin contains 50 stamp bags of heroin, which retail for between $6 and $10 each. Troy Anderson has pled not guilty to the charges against him.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department for the investigation leading to the successful prosecution and sentencing of Dorianne Harris.
International Law Enforcement Efforts Result in Charges Around the World Against Operators and Customers of Email Hacking WebsitesRead the Press Release
LOS ANGELES – As part of an international law enforcement operation involving Romania, India and China, federal prosecutors have charged two operators of a United States-based email hacking website, as well as three customers of other hacking websites based in other nations, with computer fraud offenses.
In a series of cases filed in Los Angeles earlier this week, prosecutors charged all five domestic defendants with obtaining unauthorized access to email accounts. All five defendants are expected to plead guilty in the coming weeks.
The domestic cases were announced today after authorities in Romania, India and the People's Republic of China arrested six defendants on various computer hacking charges.
The five domestic defendants were charged in four cases filed earlier this week in Los Angeles. One Los Angeles-based defendant is scheduled to make his first appearance in United States District Court this afternoon.
In the first case, Mark Anthony Townsend, 45, of Cedarville, Arkansas; and Joshua Alan Tabor, 29, of Prairie Grove, Arkansas, who operated the email hacking website needapassword.com, each were charged with a felony violation that carries a potential prison sentence of five years. According to court documents, customers of the website operated by Townsend and Tabor provided names of email accounts, and Townsend and Tabor would obtain the passwords to those accounts. The customers made payments into PayPal accounts and nearly 6,000 email accounts were affected by the scheme.
The other three defendants charged this week each face misdemeanor offenses for hiring computer hackers. These customers, who face up to one year in federal prison, are:
John Ross Jesensky, 30, of Northridge, California, who paid $21,675 to a Chinese website to get email account passwords and who is expected to be in federal court in Los Angeles this afternoon;
Laith Nona, 31, of Troy, Michigan, who paid approximately $1,081 to get email account passwords; and
Arthur Drake, 55, of Bronx, New York, who paid approximately $1,011 to get email account passwords.
These charges are the product of an international investigation coordinated by the Federal Bureau of Investigation, which received the assistance of the United States Air Force/Office of Special Investigations and the Naval Criminal Investigative Service. During the investigation, the FBI coordinated with the Directorate for Investigating Organized Crime and Terrorism (DIIOCT) and Directorate for Combating Organized Crime (DCCO) of Romania, the Central Bureau of Investigation (CBI) of the Republic of India, and the Ministry of Public Security (MPS) in the People's Republic of China.
In Romania, the DCCO, under the authority of DIICOT, has conducted searches of three residences associated with individuals operating the websites zhackgroup.com, spyhackgroup.com, rajahackers.com, clickhack.com, ghostgroup.org and email-hackers.com. Four individuals have been charged and detained in connection with the operation of those websites.
Approximately 1,600 email accounts were affected by the scheme operated by the subjects in Romania between February of 2011 and October of 2012.The Central Bureau of Investigation in India has arrested Amit Tiwari for operating the websites www.hirehacker.net and www.anonymiti.com and conducted searches of the residences of Tiwari and his associates. Operators of the two websites are responsible for obtaining unauthorized access to approximately 935 email accounts (of which 171 belonged to victims in India) between February of 2011 and February of 2013.
The MPS in China has arrested Ying Liu (劉颖), also known as “Brent Liu,” for operating website hiretohack.net. Liu is responsible for obtaining unauthorized access to approximately 300 email accounts between January of 2012 and March of 2013.
Release No. 14-010
Home Health Agency Owner Sentenced for Rolein $11 Million Detroit Medicare Fraud SchemeRead the Press Release
A home health agency owner who participated in a Medicare fraud scheme that totaled almost $11 million was sentenced in Detroit today to serve 120 months in prison.
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 Robert D. Foley III 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.
Chiradeep Gupta, 39, was sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan. In addition to his prison term, Gupta was sentenced to serve three years of supervised release and was ordered to pay more than $10 million in restitution, jointly and severally with his co-defendants.
On Oct. 26, 2012, Gupta, a physical therapist and part-owner of All American, a home health care company located in Oak Park, Mich., was found guilty at trial of one count of conspiracy to commit health care fraud, one count of conspiracy to commit money laundering and three substantive counts of money laundering.
According to evidence presented at trial, Gupta and his co-conspirators caused the submission of false and fraudulent claims to Medicare through All American and Patient Choice, another Oak Park-based home health care company, which purported to provide skilled nursing and physical therapy services to Medicare beneficiaries in the greater Detroit area.
The evidence showed that Gupta and his co-conspirators used patient recruiters, who paid Medicare beneficiaries to sign blank documents for physical therapy services that were never provided and/or medically unnecessary. The owners of Patient Choice and All American paid physicians to sign referrals and other therapy documents necessary to bill Medicare. Physical therapists and physical therapist assistants provided through contractors, including two owned by Gupta, would then create fake medical records using the blank, pre-signed forms obtained by the patient recruiters to make it appear as if physical therapy services had actually been rendered, when, in fact, the services had not been rendered.
According to evidence presented at trial, Gupta provided to Patient Choice and All American physical therapists and physical therapist assistants who created fake patient files using blank, pre-signed forms obtained by patient recruiters to make it appear as if the physical therapy services billed to Medicare had actually been provided. Gupta also doctored and directed the doctoring of fake patient files. The evidence at trial showed that Gupta laundered the proceeds of the fraud through multiple shell companies.
This case was investigated by the FBI, HHS-OIG and the Internal Revenue Service 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 Eastern District of Michigan. This case was prosecuted by Deputy Chief Gejaa Gobena, Assistant Chief Catherine Dick and Trial Attorney Niall O’Donnell 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 .Fremont, Nebraska Resident Sentenced to 64 Months in Prison for Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On January 24, 2014, Dawn R. Hightree, a 43 year-old resident of Fremont, Nebraska, was sentenced by United States District Court Senior Judge Robert Pratt to 64 months in prison followed by six years of supervised release for possession with intent to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. On May 22, 2013, Hightree pled guilty to the charge which was the result of an investigation conducted into methamphetamine distribution at Harrah’s Casino in Council Bluffs, Iowa. Hightree was found to have methamphetamine and drug trafficking paraphernalia in the hotel room at Harrah’s Casino where she was staying.
The investigation was conducted by the Iowa Division of Criminal Investigation, Special Enforcement Operations Bureau, the Council Bluffs, Iowa, Police Department and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Fremont, Nebraska Resident Sentenced to 64 Months in Prison for Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA- On January 24, 2014, Michael E. Hannum, a 53 year-old resident of Omaha, Nebraska was sentenced by United States District Court Senior Judge Robert Pratt to 30 months in prison followed by three years of supervised release for escape, announced United States Attorney Nicholas A. Klinefeldt. On November 1, 2013, the defendant pled guilty to escaping on August 2, 2013, from CH Inc. the residential re-entry center in Council Bluffs, Iowa. On August 4, 2013, the defendant was arrested by officers with the Council Bluffs Police.
The investigation was conducted by the Council Bluffs, Iowa, Police Department and the United States Marshal Service, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Four Alleged Members of Android Mobile Device App <br /> Piracy Groups ChargedRead the Press Release
Four individuals have been charged in the Northern District of Georgia for their alleged roles in piracy groups engaged in the illegal distribution of copies of copyrighted Android mobile device applications, or “apps.”
Acting Assistant Attorney General Mythili Raman of the Department of Justice’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia and Acting Special Agent in Charge Ricky Maxwell of the FBI’s Atlanta Field Office made the announcement.
“These crimes involve the large-scale violation of intellectual property rights in a relatively new and rapidly growing market,” said Acting Assistant Attorney General Raman. “While this represents the first counterfeit apps case by the Department of Justice, it exemplifies our longstanding commitment to prosecute those who steal the creative works of others.”
“Copyright laws are designed to protect creative thinkers and encourage them to use their talents in ways that benefit society,” said U.S. Attorney Yates. “These defendants are charged with violating the law by stealing copyrighted apps, thereby depriving the creators of the apps the fruits of their labor. We are committed to protecting copyright owners, and we will continue to vigorously prosecute those who steal all forms of copyrighted work.”
“The protection of intellectual property is the cornerstone of a free market that rewards innovation and forward thinking,” said FBI SAC Maxwell. “The federal charges presented in this case illustrates the problems facing technology based companies in particular but also highlights the FBI and U.S. government response to those engaged in such wholesale criminal activity involving the piracy of copyrighted products.”
An information filed on Jan. 23, 2014, charges Kody Jon Peterson, 22, of Clermont, Fla., with one count of conspiracy to commit criminal copyright infringement. A separate information filed today charges Thomas Allen Dye, 21, of Jacksonville, Fla.; Nicholas Anthony Narbone, 26, of Orlando, Fla.; and Thomas Pace, 38, of Oregon City, Ore., with one count of conspiracy to commit criminal copyright infringement. Peterson was arraigned on Jan. 23, 2014, and Dye, Narbone and Pace were arraigned today.
According to the information filed yesterday, Peterson and his fellow conspirators identified themselves as the SnappzMarket Group. From May 2011 until August 2012, Peterson conspired with other members of the SnappzMarket Group to reproduce and distribute over one million copies of copyrighted Android mobile device apps through the SnappzMarket alternative online market, without permission from the software developers and other copyright owners of the apps, who would otherwise sell copies of the apps on legitimate online markets for a fee.
According to the information filed today, Dye, Narbone, Pace and their fellow conspirators identified themselves as the Appbucket Group. From August 2010 to August 2012, defendants conspired with other members of the Appbucket Group to reproduce and distribute over one million copies of copyrighted Android mobile device apps through the Appbucket alternative online market without permission from the copyright owners of the apps.
The informations charge the SnappzMarket Group and the Appbucket Group with renting computer servers to host websites such as www.snappzmarket.com and www.appbucket.net , respectively, to provide digital storage for the pirated copies of copyrighted Android apps that each group distributed to their members or subscribers. On Aug. 21, 2012, seizure orders were executed against these two website domain names for the illegal distribution of copies of copyrighted Android mobile device apps – the first time website domains involving mobile device app marketplaces have been seized.
The maximum prison sentence for the charge of conspiracy to commit criminal copyright infringement is five years in prison.
Charges contained in a criminal information are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation of the case was conducted by the FBI. Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher Bly of the Northern District of Georgia are prosecuting the case on behalf of the United States, with the assistance of Assistant U.S. Attorney Brian M. Pearce of the Northern District of Georgia. The Office of International Affairs provided assistance in the matter. Significant assistance in the case has also been provided by the CCIPS Cybercrime Lab.Forty Individuals Facing Drug Trafficking and Firearms Charges as the Result of a Multi-Agency Investigation in Southeastern New MexicoRead the Press Release
ALBUQUERQUE – Thirty-nine individuals residing in Eddy, Chaves and Lincoln Counties, N.M., and one from west Texas are facing drug trafficking and firearms charges as the result of a multi-agency investigation targeting drug traffickers in southeastern New Mexico. The investigation culminated this morning when 27 of the defendants were arrested during an early morning law enforcement operation led by the DEA and the HIDTA Region VI Pecos Valley Drug Task Force. Another 13 of the defendants were arrested during the course of the investigation.
The results of the investigation were announced by Acting U.S. Attorney Steven C. Yarbrough, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Division, Eddy County Sheriff Scott M. London, Carlsbad Police Chief Kent Waller, and Commander James McCormick of the HIDTA Region VI Pecos Valley Drug Task Force.
The charges against the 40 defendants are the result of a year-long investigation that initially targeted a methamphetamine trafficking organization allegedly led by Israel Mireles-Rivera that distributed quantities of methamphetamine throughout southeastern New Mexico and then expanded to include other drug trafficking activity in the area. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
In announcing the results of the investigation, Acting U.S. Attorney Steven C. Yarbrough said, “This investigation was a coordinated effort to crackdown on drug trafficking in southeastern New Mexico. It is part of our statewide fight against illegal drugs and the cycle of violence that goes hand in hand with drug trafficking. Those who choose to engage in drug trafficking should be on notice that federal, state, and local law enforcement are committed to working together to put you out of business and into a prison cell.”
Fifth Judicial District Attorney Janetta B. Hicks added, “This investigation has significantly impacted the distribution network for methamphetamine and other controlled and dangerous drugs in Southeastern New Mexico. The cooperation between and commitment of the federal, state and local agencies has been extraordinary. The collaboration between the United States Attorney’s Office and the 5th Judicial District Attorney’s Office has been extremely close, focusing upon the jurisdiction, whether state or federal, where those charged can best be tried.
These cooperative efforts will continue beyond this investigation. The goal is to work toward the eradication of any viable network of distribution of methamphetamine and other drugs within Eddy County and the entire 5th Judicial District. Methamphetamine destroys lives and leads to serious violent offenses. We will continue to work together toward the final goal. I have nothing but the highest praise for all of the agencies and individuals participating in today’s operation. These men and women have gone above and beyond the call of duty in order to ensure Eddy County is a safe place to live, work and raise families. My deepest appreciation goes out to them.”
During the course of the investigation and today’s law enforcement operation, officers seized more than five pounds of methamphetamine, approximately $53,400 and 24 firearms, including evidence seized during the arrests of Mireles-Rivera and Rodrigo Ivan Cazares in Oct. 2013.
Mireles-Rivera, 32, a Mexican national illegally in the United States, was arrested in Carlsbad, N.M., on Oct. 17, 2013, based on a criminal complaint alleging methamphetamine trafficking and firearms charges. At the time of his arrest, Mireles-Rivera allegedly was in possession of two firearms, and officers seized approximately 230 grams of methamphetamine, more than $8,000.00 and five additional firearms when they executed a search warrant at his residence.
Rodrigo Ivan Cazares, 32, a resident alien from Mexico, was arrested in Artesia on Oct. 15, 2013, based on a criminal complaint after he allegedly attempted to sell 2.8 kilograms of methamphetamine to an officer who was acting in an undercover capacity.
“Methamphetamine destroys the lives of its abusers and has far-reaching negative effects in the areas where it takes hold,” said Special Agent in Charge Joseph M. Arabit of DEA’s El Paso Division. “By targeting local distribution networks in southeastern New Mexico, DEA and our state and local law enforcement partners are working to reduce overall crime and improve the quality of life for area residents. The numerous arrests and seizures in this investigation are the result of our close cooperation and part of our ongoing efforts to ensure that drug traffickers are held responsible for the harm they cause.”
“This operation is the culmination of an extraordinary cooperative effort involving federal, state and local law enforcement entities,” said Eddy County Sheriff Scott M. London. “I am proud that the Eddy County Sheriff's Office was able to play a major role in this operation and I applaud all the men and women from every other agency involved. We are and will continue to be committed to the safety and security of Eddy County.”
Carlsbad Police Chief Kent Waller said, “This investigation not only addresses illegal drug activity in Carlsbad, New Mexico but how drug organization affect our way of life throughout the United States. This multi-jurisdictional operation demonstrates how our law enforcement agencies work hand-in-hand to protect our families against illegal drugs. The efforts of our officers and agents today will affect our quality of life in Carlsbad, New Mexico for some time. Thankfully, they all went home safe tonight, and will be back on the streets tomorrow working to keep us safe.”
These cases are the result of an investigation by the DEA OCDETF Strike Force in Las Cruces and the HIDTA Region VI Pecos Valley Drug Task Force. Assistant U.S. Attorneys Renee L. Camacho and Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the federal cases, and Chief Deputy District Attorney Davis R. Ruark and his Assistant District Attorneys are prosecuting the state cases. The following agencies participated in today’s law enforcement operation: the El Paso Division of the DEA, FBI, U.S. Border Patrol, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, BIA’s Office of Justice Services, New Mexico State Police, Artesia Police Department, Carlsbad Police Department, Chaves County Metro Narcotics Task Force, Chaves County Sheriff’s Office, Eddy County Sheriff’s Office, Eddy County Detention Center, Lea County Drug Task Force, Lincoln County Sheriff’s Office, Loving Police Department and Roswell Police Department.
The HIDTA Region VI Task Force is comprised of officers and investigators from the Artesia Police Department, Carlsbad Police Department, Eddy County Sheriff’s Office, FBI, HSI, the Probation and Parole Division of the New Mexico Corrections Department and the 5th Judicial District Attorney’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Defendants Charged in Federal Cases
Juan Antonio Alvarez-Ramirez, 35, a resident alien from Mexico residing in Artesia, N.M., was indicted on marijuana trafficking and firearms charges. If convicted, he faces a maximum penalty of five years in prison on the marijuana charges and a mandatory minimum of five years in prison on one of the firearms charges. Alvarez-Ramirez was arrested on Jan. 23, 2014.
Rodrigo Ivan Cazares, 32, a resident alien from Mexico residing in Artesia, N.M., was indicted on methamphetamine trafficking charges. If convicted, he faces a mandatory minimum of ten years to a maximum of life in prison. Cazares was arrested on Oct. 17, 2013 on a criminal complaint and is detained pending trial.
Mickah Chavez, 19, of Artesia, N.M., was indicted on methamphetamine trafficking charges. If convicted, he faces a maximum of 20 years in prison. Chavez was arrested on Jan. 23, 2014.
Gabriel Gonzales, 25, of Roswell, N.M., was indicted on methamphetamine trafficking and firearms charges. If convicted, he faces a maximum penalty of 20 years in prison on the methamphetamine charge and a mandatory minimum of five years in prison on one of the firearms charges. Gonzales is in state custody on unrelated charges and will be transferred to federal custody.
Ediberto Guzman, 60 of Carlsbad, N.M., was indicted on a methamphetamine trafficking charge. If convicted, he faces a mandatory minimum of ten years to life in prison. Guzman was arrested today.
Ronnie Joe Lopez, 29, of Odessa, Tex., is charged with marijuana trafficking and firearms charges. If convicted, he faces a maximum penalty of five years in prison on the marijuana charges and a mandatory minimum of five years in prison on one of the firearms charges. Lopez was arrested today.
Israel Mireles-Rivera, 32, a Mexican national illegally in the United States and residing in Hagerman, N.M., was indicted on methamphetamine trafficking and firearms charges. If convicted, he faces a mandatory minimum of ten years to life in prison on the methamphetamine trafficking charges and a maximum of ten years in prison on the firearms charge. Mireles-Rivera was arrested on Oct. 17, 2013 on a criminal complaint and is detained pending trial.
Michael Ortiz, 44, of Carlsbad, N.M., was indicted on a methamphetamine trafficking charge. If convicted, he faces a mandatory minimum of ten years to a maximum of life in prison. Rodriguez was arrested on Jan. 23, 2014.
Sandra Rodriguez, 36, of Roswell, N.M., was indicted on a methamphetamine trafficking charge. If convicted, she faces a mandatory minimum of ten years to a maximum of life in prison. Rodriguez was arrested today.
Felipe Salamanca, 42, of Artesia, N.M., is charged with unlawful possession of firearms in a criminal complaint. If convicted, he faces a maximum penalty of ten years in prison. Salamanca was arrested today.
Dominic Sedillo, 22, of Roswell, N.M., was indicted on methamphetamine charges. If convicted, he faces a mandatory minimum of five years to a maximum of 40 years in prison. Sedillo was arrested today.
Defendants Charged in State Cases
The following defendants, who have been arrested, are charged in criminal complaints filed in the 5th Judicial District Court for the State of New Mexico:
Patrick Acevedo, 20, of Carlsbad, N.M.
Albert Armijo, 21, of Carlsbad, N.M.
Karen Bucy, 54, of Carlsbad, N.M.
Odilon Campana-Campos, 46, of Ruidoso, N.M.
Cliff Davis, 27, of Carlsbad, N.M.
Dusty Davis, 25, of Artesia, N.M.
Marlene Davis, 45, of Loving, N.M.
Brian Devine, 19, of Carlsbad, N.M.
Marcos Franco, 45, of Carlsbad, N.M.
Joselyn Garcia, 28, of Carlsbad, N.M.
Jose Grado, 31, of Artesia, N.M.
Debra K. Harris, 48, of Carlsbad, N.M.
Kyle Henry, 20, of Artesia, N.M.
Lorinda Hernandez, 49, of Carlsbad, N.M.
Christina Martinez, 26, of Carlsbad, N.M.
Reynaldo Martinez, 26, of Carlsbad, N.M.
Dillon McLaughlin, 30, of Artesia, N.M.
Adan R. Molinar, 36, of Carlsbad, N.M.
Chris Montes, 35, of Artesia, N.M.
Jared Moore, 32, of Carlsbad, N.M.
Jeremy A. Morgan, 24, of Carlsbad, N.M.
George Munoz, 18, of Carlsbad, N.M.
Gonzalo Rodriguez, 20, of Artesia, N.M.
Jesus Sanchez, 26, of Carlsbad, N.M.
Rhonda Snowden, 49, of Artesia, N.M.
Anna Sola, 42, of Carlsbad, N.M.
Josephine Tatum, 37, of Carlsbad, N.M.
Joe Tiller, 51, of Carlsbad, N.M.
Dendall Whiteman, 25, of Artesia, N.M.Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Former President of Wyoming Area Education Association Sentenced to Prison for Embezzlement of Union FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lisa Barrett, age 48, of Shavertown, Luzerne County, was sentenced today in Scranton by Senior United States District Court Judge James M. Munley to serve 12 months in prison for embezzlement of funds from a labor organization.
Barrett, the past president of the Wyoming Area Education Association (WAEA), was charged with, previously, and admitted to, converting labor union funds to her own use from 2006 to 2012. Barrett resigned as president of WAEA in March 2013. Barrett has made restitution to the WAEA in the amount of $59,273.
In addition to the prison term, Senior Judge Munley also ordered that Barrett be supervised by a probation officer for two years following her prison sentence.
The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Former Philadelphia Police Officer Convicted in Cover UpRead the Press Release
PHILADELPHIA - Robertito Fontan, 42, a former narcotics officer with the Philadelphia Police Department, was found guilty today of two counts of making false statements to federal investigators concerning his romantic relationship with one of the police department’s confidential informants.
In 2003, Fontan recruited Person #1 to become a confidential informant and recommended her as a confidential informant to other law enforcement officers. Several months later, Fontan became intimately involved with Person #1. During their relationship, Fontan gave gifts and money to Person #1. In 2007, the Drug Enforcement Administration (ADEA@) began investigating Person #1=s former paramour, a suspected drug dealer, and Fontan was assisting with the investigation.
In 2008, the FBI began investigating a suspected leak of information in the DEA investigation. As part of the leak investigation, the FBI interviewed Fontan about his intimate relationship with Person #1. The jury found that Fontan lied to agents about his relationship with Person #1 and about giving gifts and money to Person #1.
Fontan faces a maximum possible sentence of 10 years in prison. A sentencing hearing is scheduled for April 28, 2014.
The case was investigated by the FBI and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Neuman Leverett.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Internet Vendor Convicted of Scheme to Defraud Customers of $5 MillionRead the Press Release
Daniel Greenberg, the president and owner of Classic Closeouts, LLC, a now-defunct Internet seller of discounted clothing and personal items, was convicted today by a federal jury in Central Islip on all thirteen counts for defrauding thousands of customers through unauthorized use of the credit and debit card numbers they had provided in connection with a purchase at an earlier time. The jury’s verdict followed a two-week trial in United States District Court before the Honorable Arthur D. Spatt. Greenberg was convicted of eight counts of wire fraud, one count of access device fraud, one count of aggravated identity theft, and three counts of money laundering.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Postal Inspector-in-Charge, United States Postal Inspection Service, New York Division.
“Daniel Greenberg’s Classic Closeouts was a classic scam. When his business ran into trouble, Greenberg helped himself to his customers’ credit card numbers and then had the audacity to fight them when they tried to have the charges removed,” stated United States Attorney Lynch. “We will tirelessly pursue justice for consumers who trust online merchants only to have that trust betrayed.” Ms. Lynch extended her grateful appreciation to the Postal Inspection Service and the Federal Trade Commission for their assistance in the investigation. The FTC brought this matter to the attention of the U.S. Attorney’s Office after having filed a parallel civil action.
The evidence at trial established that from approximately June 2008 through at least April 2009, Greenberg charged victims’ credit cards or debited their bank accounts on over 60,000 occasions, without the victims’ authorization and without the victims purchasing merchandise. Greenberg used credit and debit card information retained by Classic Closeouts from earlier purchases and then fraudulently charged their credit or debit cards, often charging the same card multiple times over the course of several weeks and months. When victims disputed the unauthorized charges with their credit card companies and banks, Greenberg falsely asserted that the charges were valid because the customers had enrolled in an alleged “frequent shopper club” that he claimed required a one-time charge. As a result of Greenberg’s false representations, some of the victims’ credit card companies and banks declined to issue credits despite the victims’ protests, and certain victims were pressured into paying the fraudulent charges plus late fees and interest.
When sentenced Greenberg faces up to 20 years’ imprisonment for each of the eight counts of wire fraud, 15 years’ imprisonment on the access device fraud charge, up to 10 years’ imprisonment for the money laundering charges, and two years’ mandatory imprisonment on the aggravated identity theft charge to run consecutively to sentences imposed on the other charges.
The government’s case was prosecuted by Assistant United States Attorneys Walter Norkin and Charles Rose.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
DANIEL GREENBERG
Age: 40
Lawrence, New York
Former Glendale Police Officer and Associate Indicted for Crimes Related to Cocaine Trafficking, Including Lying to the FBI and Illegally Accessing Crime DatabasesRead the Press Release
DENVER – Scott T. Black, age 39, of Firestone, Colorado, and Oscar S. Garcia, age 35, of Aurora, Colorado, were indicted by a federal grand jury on charges related to drug trafficking, making false statements, and unauthorized access of law enforcement databases, U.S. Attorney John Walsh, FBI Denver Special Agent in Charge Thomas Ravenelle and DEA Denver Division Special Agent in Charge Barbra Roach announced. Garcia was arrested early Thursday morning without incident. Black, a Glendale Police Officer at the time of the alleged crimes, turned himself in to FBI Special Agents at the Lakewood Police Department mid-day Thursday. Garcia appeared in U.S. District Court in Denver yesterday afternoon, where he was advised of his rights and the charges pending against him. Black is scheduled to appear in U.S. District Court in Denver at 2:00 p.m. this afternoon before U.S. Magistrate Judge Kristen L. Mix to be advised of his rights and the charges pending against him. The U.S. Attorney’s Office is seeking detention.
According to the indictment, which was returned by a federal grand jury on January 6, 2014, but restricted from public view prior to the arrest of the defendants, Garcia is charged with trafficking cocaine to people known and unknown to the grand jury. Black allegedly assisted Garcia with the cocaine trafficking by using his official law enforcement position to request Glendale Police Department dispatchers to “run” license plates through the Colorado Crime Information Center (CCIC) and the National Crime Information Center (NCIC). This was done in order to facilitate the defendants’ alleged drug trafficking. Black is also accused on two separate instances of lying to an FBI agent. The trafficking conspiracy alleged in the indictment allegedly started in March of 2011 and continued through December 2013. To the best of our knowledge no other Glendale Police Officers were involved in this incident.
Garcia faces three counts of possession with intent to distribute and knowingly distribute cocaine, which carries a penalty of not more than 20 years in federal prison, and up to a $1,000,000 fine, per count. He faces one count of use of a communications facility to facilitate drug trafficking, which carries a penalty of not more than 4 years imprisonment, and up to a $250,000 fine. He faces one count of intentionally gaining unauthorized access to a computer, which carries a penalty of not more than 5 years imprisonment, and up to a $250,000 fine. Garcia faces one count of conspiracy to possess with intent to distribute cocaine, which carries a penalty of not less than 5 years and not more than 40 years in federal prison, and up to a $5,000,000 fine. Lastly, defendant Oscar Garcia faces one count of conspiracy to gain unauthorized access to a computer data base. That crime carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine.
Black faces one count of use of a communications facility to facilitate drug trafficking, which carries a penalty of not more than 4 years imprisonment, and up to a $250,000 fine. He faces two counts of intentionally gaining unauthorized access to a computer, which carries a penalty of not more than 5 years imprisonment, and up to a $250,000 fine per count. Black faces two counts of knowing and willfully making a materially false representation (to an FBI agent), which carries a penalty of not more than 5 years imprisonment, and up to a $250,000 fine. Lastly, the defendant faces one count of conspiracy to gain unauthorized access to a computer data base. That crime carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine.
This case was investigated by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Colorado Bureau of Investigation (CBI), and the Aurora Police Department. The Glendale Police Department cooperated during all aspects of the investigation.
The defendants are being prosecuted by Assistant U.S. Attorneys David Conner and Guy Till.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Former Employee Heads to Federal Prison for Defrauding Exxon Mobil of More Than $5 MillionRead the Press Release
HOUSTON – Garry W. Arnold, of Dayton, has been ordered to prison for more than five years following his conviction of defrauding Exxon Mobil, his former employer, and causing a loss of more than $5 million, announced United States Attorney Kenneth Magidson. Arnold pleaded guilty Friday, Sept. 20, 2013.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Arnold a 63-month sentence to be immediately followed by a three-year-term of supervised release. In handing down the sentence, Judge Hittner noted, "this has gone on long enough." He was further ordered to pay $5,548,015.80 in restitution.
Arnold, 62, was employed by the Exxon Mobil Chemical Company from 2004 through 2010 at the company’s Baytown Olefins Plant. His job responsibilities included overseeing the maintenance and repair of numerous large furnaces located at the plant, including ordering replacement parts and coordinating the purchase, delivery and installation of these parts.
Arnold also controlled and was part owner of Metal Blinds Unlimited Inc. During the relevant time period, Metal Blinds had minimal legitimate business operations, had no employees other than Arnold himself and it operated out of his residence.
Beginning in or around January 2004 and continuing through April 2010, Arnold carried out a fraudulent invoicing scheme which caused Exxon to pay more than $5.5 million for furnace parts and fabrication services that were never provided, were provided with materials already owned by Exxon or for which it paid an excessive amount. Arnold and another person shared the proceeds of the scheme by having Exxon send the payment checks to One Source Industrial, a company the other person owned. The other person then caused that company to make payments to Metal Blinds Unlimited, a sham corporation owned by Arnold. The other individual also made payments to Arnold for legitimate work done by One Source Industrial for Exxon and other clients, again by making regular payments by check to Metal Blinds.
In total, the scheme resulted in Exxon creating approximately 78 purchase orders and paying more than $5.5 million to One Source Industrial for work purportedly done by Metal Blinds. Arnold received more than $3.2 million in payments from One Source Industrial in association with these invoices. One Source Industrial also paid approximately $310,253.20 to Arnold as part of the concealed profit-sharing agreement.Previously released on bond, Arnold was taken into custody following the hearing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney John Pearson.
Former Contract Employee for U.S. Citizenship and Immigration Services Convicted in New Jersey for Theft, Sale of FormsRead the Press Release
NEWARK, N.J. — A federal jury returned guilty verdicts late Thursday, Jan. 23, 2014, against a former contract employee for U.S. Citizenship and Immigration Services (USCIS) for stealing hundreds of immigration forms from the warehouse where he worked and selling them for ultimate use as part of a criminal enterprise, U.S. Attorney Paul J. Fishman announced.
Martin Trejo, 47, of Rialto, Calif., was convicted of one count of conspiracy to steal government property and transport it in interstate commerce and one count of transportation of stolen goods in interstate commerce. The jury returned the verdict after less than two hours of deliberation following a one-week trial before U.S. District Judge Faith S. Hochberg in Newark federal court.
According to documents filed in this case and the evidence at trial: While working as a contract employee for USCIS, Trejo stole hundreds of immigration forms from the warehouse where he worked and sold them to a conspirator. The conspirator then sold the forms to a criminal enterprise that used them to obtain hundreds of driver’s licenses for individuals in the country illegally and living in New Jersey and other states.
The investigation into the wider scheme has resulted in 13 convictions, with prosecutions ongoing.
The conspiracy count carries a maximum potential penalty of five years in prison; the transportation count carries a maximum potential penalty of 10 years in prison. Each count also carries a maximum $250,000 fine. Trejo is scheduled to be sentenced on April 29, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and agents of the Department of Homeland Security, Office of Inspector General, under the direction of Acting Special Agent in Charge Edward Nasiatka of the New York field office, with the investigation.
The government is represented by Assistant U.S. Attorneys Anthony Moscato and David M. Eskew of the U.S. Attorney’s Office Criminal Division in Newark.14-026
Defense counsel: John P McGovern Esq., Newark
Former Bookkeeper at Taupa Lithuanian Credit Union Charged with EmbezzlementRead the Press Release
A former external bookkeeper of Taupa Lithuanian Credit Union was charged today for engaging in a conspiracy that defrauded the credit union out of nearly $1 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Vytas Apanavicius, 44, of Mentor, was charged in a criminal information with one count of conspiracy to commit theft or embezzlement from a credit union.
Apanavicius owned VPA Accounting Inc., through which he provided bookkeeping and accounting services from 1995 through 2013. These services included recording month-end journal entries for general ledger accounts, paying and recording monthly expenses and compiling monthly balance sheets and income statements, according to the information.
From at least 2001, Apanavicius controlled six accounts at Taupa. In his role as external bookkeeper, Apanavicius became aware that Taupa CEO Alex Spirikaitis routinely deposited and transferred Taupa funds into member accounts to cover multiple overdrafts, according to the information.
Apanavicius then withdrew funds from his accounts and did not maintain sufficient balances to cover withdrawals. Spirikaitis deposited and transferred Taupa funds into Apanavicius’ accounts to cover his overdrafts and withdrawals, according to the information.
Spirikaitis caused Taupa to make approximately 72 false and fraudulent deposits and transfers into Apanavicius’ accounts. He also provided Apanavicius with approximately $25,000 in fraudulent proceeds from Taupa for the purchase of a new Jeep Cherokee, according to the information.
As a result of that conspiracy, Taupa and the NCUA suffered a loss of approximately $962,689, according to the information.
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last July and placed it into receivership due to its insolvency. Taupa had about 1,150 members and assets of approximately $24 million, according to court records.
Spirikaitis, 51, of Solon, Michael Ruksenas, 33, of Naples, Florida, and John Struna, 51, of Concord Township, have previously been charged for their roles in the conspiracy.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Final Defendant Pleads Guilty in Identity Theft Tax Refund Fraud Scheme Involving Thousands of Patients’ Personal Identity InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Michael Ali Bryant, Sr., 41, of Lauderdale Lakes, pled guilty today for his participation in a stolen identity tax refund scheme. Sentencing is scheduled for April 11, 2014.
Specifically, Bryant pled guilty today to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Co-defendants Tiffany Shenae Cooper, 33, of Deerfield Beach, and Marquis Onigirin Moye, 24, of Pompano Beach, previously pled guilty to the same two charges. Cooper is scheduled to be sentenced on February 28, 2014, and Moye is scheduled to be sentenced on March 28, 2014. At sentencing, each of the defendants face a maximum of ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Michael Bryant's wife and co-defendant Latina Rashawn Bryant, 43 Lauderdale Lakes, previously pled guilty to one count of using an unauthorized access device, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for March 28, 2014.
Co-defendant Angela Dione Rosier, 41, of Coral Springs, previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2). Sentencing is scheduled for February 28, 2014.
According to documents filed in conjunction with today’s plea hearing, a confidential source (CS) initially approached Michael Bryant and inquired about purchasing narcotics. Bryant told the CS that he did not have any narcotics but that he did have personal identity information (PII) that he was willing to sell to the CS. The CS made a controlled purchase of ten pages (each page containing approximately 20 to 25 names) of PII. Bryant instructed the CS on how to commit tax fraud using the PII, and provided the CS with specific instructions on what information to enter into the web pages of the internet-based tax services to obtain a tax refund. An examination of the PII revealed that it was from a medical services provider.
Co-defendant Rosier was an employee of the medical services provider. Co-defendant Cooper spoke to Rosier to obtain user names and passwords for current employees of the medical services provider. Cooper admitted to illegally logging on to the medical services provider’s computer network and downloading PII for the purpose of committing various types of fraud. She was assisted in her activities by Rosier and co-defendant Moye.
Subsequent investigation by the IRS identified 226 false claims linked to Michael Bryant. These false claims were for refunds totaling $775,879. Seventy eight of the false claims were paid resulting in a loss to the IRS of $221,576.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Felon Who Possessed Multiple Firearms Sentenced to 37 MonthsRead the Press Release
Anchorage, Alaska-United States Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court to 37 months in prison for being a felon in possession of firearms.
Patrick Leu Tauanuu, 38, of Anchorage, Alaska, was sentenced to the prison term by Chief United States District Court Judge Ralph R. Beistline for possessing two short barrel shotguns after having been convicted of a felony offense. Upon being released from prison, Tauanuu will be on supervised release for three years.
In sentencing Tauanuu, Judge Beistline commented on the seriousness of Tauanuu’s crime, noting that Tauanuu’s actions and those like it endanger the whole community.
According to Assistant United States Attorney Stephanie C. Courter, who prosecuted the case, Tauanuu previously pled guilty to illegally possessing two short barrel firearms. Specifically, Tauanuu admitted possessing a 12 gauge shotgun and a .410 gauge shotgun, both of which had barrels of less than 18 inches. Tauanuu also admitted that he had positioned one of the shotguns for protection. Tauanuu’s possession of the firearms was prohibited due to his prior felony conviction for assault in the third degree.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for their investigation of this case.
Federal Court Sentences Man on Illegal Re-entry ChargeRead the Press Release
DAVENPORT, IA- On January 24, 2014, Manuel Partida Garcia, age 32, a citizen of Mexico, was sentenced by United States District Court Judge John A. Jarvey to 36 months imprisonment, after pleading guilty to illegal re-entry into the United States, announced United States Attorney Nicholas A. Klinefeldt. Partida Garcia was also ordered to serve three years of supervised release and pay $100 towards the Crime Victims Fund. Partida Garcia was found in the United States after being convicted in Marshall County, Iowa for possession of methamphetamine with the intent to deliver, eluding and carrying weapons. Partida was also found to be an aggravated felon based on a prior assault conviction out of the state of Washington.
This case was investigated by the United States Department of Homeland Security-Immigration and Customs Enforcement, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Euclid Woman Sentenced to Prison for Tax ConspiracyRead the Press Release
A Euclid woman was sentenced to 19 months in prison and ordered to pay $74,904 in restitution for her role in a scheme to file false and inflated income tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Kenyada Spates, of Euclid, Ohio, was previously found guilty of one count of conspiracy to make false claims and nine counts of making false claims.Spates admitted to helping prepared 35 false income tax returns. Spates recruited friends and relatives to use as income tax refund claimants. Part of the refund money was deposited into accounts controlled by Spates, according to court documents
The case is being presented by Assistant United States Attorney Gregory C. Sassé after an investigation by agents of the Office of Inspector General for Tax Administration of the Department of the Treasury and by the agents of the Criminal Investigation Division of the Internal Revenue Service of the Department of the Treasury.
Eldon Man Sentenced to 20 Years in Prison for Meth Conspiracy, Attempted Jail EscapeRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Eldon, Mo., man has been sentenced in federal court for his role in a large-scale conspiracy to distribute methamphetamine in the Cole and Callaway County area, as well as his attempted jail escape.
Mitchell Lynn Atterberry, 36, of Eldon, was sentenced by U.S. District Judge Beth Phillips on Thursday, Jan. 23, 2013, to 20 years in federal prison without parole.
On Aug. 15, 2013, Atterberry pleaded guilty to conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, conspiracy to escape from custody, and attempted escape from custody.
Conspiracy to Distribute Methamphetamine
Law enforcement officers executed two search warrants at Atterberry’s residence on Nov. 15, 2010, seizing a total of 8.19 grams of meth and $6,050.
Atterberry, riding his motorcycle, led Jefferson City, Mo., police officers on a high-speed chase on June 2, 2011, which reached speeds up to 100 miles per hour. Atterberry crashed his motorcycle and, after a brief pursuit on foot, was arrested. Officers saw Atterberry discard 2.04 grams of meth during the foot chase. Officers also found $8,190 in six separate envelopes, including what appeared to be a drug ledger, in Atterberry’s motorcycle.
Atterberry, driving a Pontiac, was pulled over by a Holts Summit, Mo., police officer for a routine traffic stop on Feb. 11, 2012. During the stop, while the officer returned to his patrol vehicle, Atterberry fled. Atterberry led officers on a high-speed pursuit through Holts Summit, New Bloomfield and Fulton at speeds up to 163 miles per hour. Atterberry fled from his vehicle and was apprehended after a brief chase on foot. Officers searched the vehicle and found .29 of a gram of methamphetamine and $2,986.
Atterberry was pulled over by Jefferson City, Mo., police officers on May 22, 2012. Officers searched the vehicle and its occupants and found 13.02 grams of methamphetamine, a loaded .40-caliber Hi Point pistol, $2,234 and $900 in counterfeit currency.
Co-defendant Tami Jo Zeugin, 38, of Fulton, Mo., pleaded guilty on Jan. 9, 2014, to her role in the conspiracy to distribute methamphetamine and awaits sentencing.
The total methamphetamine seized from Atterberry and Zeugin during the course of the investigation is 54.14 grams. Officers also seized a total of $20,939.
Conspiracy to Escape from Custody
Sheriff’s deputies at the Morgan County jail, where Atterberry was detained, received a tip on Nov. 14, 2012 and searched Atterberry’s cell. Atterberry’s cellmate was Steven Pyykola of Springfield, Mo. Pyykola was convicted of three state murder charges and is serving three consecutive life sentences without parole.
Deputies discovered that the cell window had been damaged. The metal support beam had been cut most of the way through. They also found a 10-inch saw blade in the mat on the top bunk of the cell and a smaller two-inch saw blade that appeared to have broken off the larger blade.
Authorities reviewed telephone calls that Atterberry and Pyykola made to co-defendant Amanda Leigh Lesh, 35, of Jefferson City. They asked Lesh to purchase saw blades and deliver them to the jail underneath their second story window. Atterberry and Pyykola would then slide a string out of a hole that had been made in the window to the ground where Lesh would tie on the items and they would pull them up and in through the window. Lesh also made references to picking up the two after the escape and buying them clothes to wear.
On Nov. 13, 2012, Atterberry told Lesh in a recorded telephone conversation that they “worked on it late last night, couldn’t get it done” and in a later call that day said they hoped to get it done “by tonight.” The next day, authorities received the tip about the escape plans.
Lesh pleaded guilty to her role in Atterberry’s unsuccessful escape attempt and was sentenced on Sept. 26, 2013, to time served.
This case is being prosecuted by Assistant U.S. Attorney Lauren Kummerer. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Holts Summit, Mo., Police Department, the Fulton, Mo., Police Department, the Mid-Missouri Drug Task Force, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Missouri State Highway Patrol, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department and the U.S. Marshal’s Service.
El Paso Attorney Marco Delgado Sentenced to Maximum 20 Years in Federal Prison for Multi-Million Dollar Money Laundering SchemeRead the Press Release
In El Paso this morning, 47-year-old El Paso attorney Marco Antonio Delgado, a.k.a. Marco Delgado Licon, was sentenced to the maximum 20 years in federal prison after a jury convicted him of conspiracy to launder up to $600 million in illegal drug proceeds announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis Ulrich.
In addition to the prison term, U.S. District Senior District Judge David Briones ordered that Delgado pay a $25,000 fine and be placed under supervised release for a period of three years after completing his prison term.
In October 2013, a jury convicted Delgado of conspiracy to commit money laundering. Based on evidence presented during trial, the jury found that from a period of time between 2007 and 2008, Delgado conspired with other individuals to launder $600 million in illegal drug proceeds for members of the Milenio Drug Trafficking Organization. Two episodes of money laundering demonstrated to the jury included a Department of Homeland Security and Carroll County (GA) Sheriff’s Department seizure in September 2007 of $1,000,000 in U.S. Currency traveling from Atlanta, GA, to Mexico via El Paso; and, an HSI seizure of $50,000 in drug proceeds, in July 2008, in Chicago, IL, which was transported to El Paso and deposited in Delgado’s Attorney Interest on Lawyers’ Trust Account (IOLTA) bank account.
Delgado has remained in federal custody since his arrest in November 2012.
Delgado is currently set to go to trial again on March 31, 2014, based on a separate superseding indictment, returned on Wednesday, which charges him with three wire fraud counts and 16 money laundering counts—seven of which allege intent to conceal proceeds of illegal activity and nine of which allege spending of proceeds derived from illegal activity. According to the superseding indictment, in January 2010, Delgado, as a legal representative of FGG Enterprises, Inc. (FGG) signed a $121 million contract between FGG and the Comision Federal de Electricidad (CFE), a Mexican-state-owned utility company, for the acquisition and maintenance of equipment at the Agua Prieta II power plant located in Agua Prieta, Sonora, Mexico. Pursuant to the agreement, payments from CFE to FGG were to be deposited into a FGG bank account located in El Paso.
The superseding indictment alleges that Delgado, for the purpose of personal enrichment and without the consent of the sole owner of FGG, submitted a fraudulent written request to CFE in Mexico which caused two wire transfers—one on March 8, 2010, in the amount of $20 million and one on July 6, 2010, in the amount of $12 million—to be deposited into a bank account he controlled located in the Turks and Caicos Islands. The superseding indictment further alleges that Delgado subsequently wire transferred approximately $1.9 million from the Turks and Caicos Island bank account to bank accounts in El Paso; Taos, NM; and, Pittsburgh, PA, in order to either conceal the nature, location, source or ownership of the proceeds, or spend the proceeds, derived from his scheme.
Each wire fraud count and money laundering (intent to conceal) count call for up 20 years in federal prison upon conviction. Each of the money laundering (spending) counts call for up to ten years in federal prison upon conviction.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This prosecution resulted from an investigation by the Homeland Security Investigations (HSI). Assistant United States Attorneys Debra Kanof and Anna Arreola are prosecuting these cases on behalf of the Government.East St. Louis Trucking Company Owner Sentenced for Making False StatementsRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that William Patrick “Pat” Clark, 40, of Worden, IL, the owner, operator, and president of Clark Trucking and Excavation, LLC, which was located at 912 Market Street in East St. Louis, Illinois, was sentenced to 33 months in prison, to be followed by 3 years of supervised release, a $1,000 special assessment, and ordered to make restitution to his truck drivers in the total amount of $273,118.43. In a September 2013 trial, a jury found Clark guilty on ten felony counts charging him with making false statements.
Clark unlawfully profited from a scheme in which he submitted to the Missouri Department of Transportation false payroll certifications claiming to have paid Davis-Bacon Act required prevailing wages to his employees on the federally funded I-64 Highway project. Clark cheated his employees by paying only about $15 per hour, rather than the required $35.45 per hour (without approved fringe benefits) for truck drivers on the project. Nine of his drivers testified at trial. Clark also signed a sworn affidavit falsely claiming satisfaction of labor laws pertaining to the payment of wages to workers in connection with the I-64 project. Clark Trucking had collected about $1.6 million for its hauling work.
The charges in this case followed an investigation by the U.S. Department of Labor, Office of Inspector General-Office of Labor Racketeering and Fraud Investigations. The case was handled by Assistant United States Attorneys Michael J. Quinley and Stuart Zander.
Drug Trafficking Fugitive Sentenced to 42 Months in Federal PrisonRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Rodolfo Naranjo, age 53, a former resident alien from Mexico who resided Wenatchee, Washington, was sentenced for Conspiracy to Distribute Cocaine and Failure to Appear in a case that reaches back to 1994. Senior United States District Court Judge Fred Van Sickle sentenced Naranjo to a 42 month term of imprisonment, to be followed by a 36 month term of court supervision after he is released from Federal prison.
Based on information disclosed during the court proceedings, this case arose from a joint federal and state investigation of cocaine smuggling through north central Washington into Canada. In the fall of 1994, law enforcement officers obtained historical evidence of Naranjo's involvement in past shipments of cocaine and information about his expected future deliveries using sources of supply in California and Mexico. Thereafter, on December 2, 1994, Naranjo delivered two kilograms of cocaine to an individual who was cooperating with law enforcement officers. Naranjo was subsequently arrested and charged by Federal indictment on February 7, 1995. Following his court appearance on the indictment, Naranjo was released on bond and fled to Mexico. He was thereafter charged by Federal indictment for Failure to Appear.
Naranjo remained a fugitive until April 26, 2013 when he was arrested at an airport in Dallas, Texas, as he attempted to enter the United States from Mexico. The United States Marshal Service returned Naranjo to the Eastern District of Washington and he entered guilty pleas to the two charges on October 17, 2013.
Michael C. Ormsby stated, "Drug trafficking is a serious Federal offense, particularly when it involves smuggling activities across international borders. Individuals charged with a Federal offense will be brought to justice even if, as in this case, it over 18 years. Those who chose to flee from justice should know that they will be located, arrested, and prosecuted for their criminal conduct."
This investigation was conducted by the Federal Bureau of Investigation, the United States Customs Service, the United States Border Patrol, and the North Central Washington Narcotics Task Force. The case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney for the Eastern District of Washington.
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