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24 January 2014
Dominican Man Sentenced for Social Security and Passport FraudRead the Press Release
BOSTON - A Dominican man was sentenced today for his theft of an American citizen’s identity to obtain a U.S. passport and more than $60,000 in Social Security benefits.
Antonio Pulinario Brea, 55, was sentenced by U.S. District Court Judge Denise J. Casper to 10 months in prison and ordered to pay $60,455 in restitution. In November 2013, Pulinario Brea pleaded guilty to theft of public money and two counts of making a false statement in a passport application.
Beginning in 2001, Pulinario Brea, who was born in the Dominican Republic and later came to the United States, stole the identity of an American citizen and used it to obtain a driver’s license, Social Security card, and passport in the citizen’s name. Pulinario Brea also used the citizen’s identity to obtain more than $60,000 in Social Security disability benefits that he would not have been entitled to receive under his true identity.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and David Hall, Special Agent in Charge of the U.S. Department of State’s Bureau of Diplomatic Security’s Boston Field Office, made the announcement today. The case was prosecuted by Special Assistant United States Attorney Timothy Landry of Ortiz’s Major Crimes Unit.District Man Pleads Guilty to Sexual Abuse, Admits Accosting 10-Year-Old and 12-Year-Old GirlsSeparate Incidents Took Place in 2012Read the Press Release
WASHINGTON – David Gantt, 29, of Washington, D.C., pled guilty today to charges stemming from his sexual abuse of two girls in separate incidents during the summer of 2012, U.S. Attorney Ronald C. Machen Jr. announced.
Gantt pled guilty in the Superior Court of the District of Columbia to one count of attempted second-degree child sexual abuse and one count of misdemeanor sexual abuse. He is scheduled to be sentenced by the Honorable Robert E. Morin on April 18, 2014. He faces up to five-and-a-half years in prison. He will also be required to register as a sex offender for life.
According to the government’s factual proffer at today’s plea hearing, in July 2012, Gantt molested a 12-year-old girl in the laundry room of an apartment building in Southeast Washington. Approximately one month later, Gantt inappropriately touched a 10-year-old girl who was visiting a friend who lived in Gantt’s apartment.
In announcing the plea, U.S. Attorney Machen praised the work of the Metropolitan Police Department’s Youth Division, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Jason Manuel and Victim/Witness Advocate Veronica Vaughan. Finally, he commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted the case.
14-022Disbarred Attorney Pleads Guilty for Role in $28.3 Million Medicare Fraud SchemeRead the Press Release
A North Carolina woman has pleaded guilty for her involvement in a $28.3 million Medicare fraud scheme involving physical and occupational therapy services.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge Christopher Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Margarita M. Grishkoff, 59, of Charlotte, N.C., and formerly of southwest Florida, pleaded guilty today in the U.S. District Court for the Middle District of Florida to conspiracy to commit health care fraud. Her sentencing date will be set by the court. She faces a maximum penalty of 10 years in prison.
According to documents filed in the case, Grishkoff and her co-conspirators used various physical therapy clinics and other business entities throughout Florida and elsewhere to submit approximately $28.3 million in fraudulent reimbursement claims to Medicare from 2005 through 2009. Medicare paid approximately $14.4 million on those claims.
Grishkoff, a former attorney who was disbarred in 1997, was vice president, director and registered agent in Florida for a Delaware holding company known as Ulysses Acquisitions Inc. Grishkoff and co-conspirators used Ulysses Acquisitions to purchase comprehensive outpatient rehabilitation facilities and outpatient physical therapy providers, including West Coast Rehab Inc. in Fort Myers, Fla.; Rehab Dynamics Inc. in Venice, Fla.; Polk Rehabilitation Inc. in Lake Wales, Fla.; and Renew Therapy Center of Port St. Lucie LLC in Port St. Lucie, Fla., to gain control of these clinics’ Medicare provider numbers.
Working with co-conspirators in Miami and elsewhere, Grishkoff and her co-conspirators obtained identifying information of Medicare beneficiaries through paying kickbacks. They also obtained unique identifying information of physicians. Grishkoff and her co-conspirators then used this information to create and submit false claims to Medicare through the clinics Ulysses Acquisitions purchased. These claims sought reimbursement for therapy services that were not legitimately prescribed and not actually provided.
Grishkoff and co-conspirators also paid kickbacks to co-conspirators who owned other therapy clinics that were used to further the fraud scheme. For example, Grishkoff and co-conspirators used the clinics they controlled to submit false reimbursement claims to Medicare on behalf of Miami-based therapy clinics such as Hallandale Rehabilitation Inc., Tropical Physical Therapy Corporation, American Wellness Centers Inc., and West Regional Center Inc. Grishkoff and co-conspirators would retain approximately 20 percent of the money Medicare paid on these claims and pay the other 80 percent of the fraud proceeds to the co-conspirator clinic owners.
When Grishkoff and her co-conspirators were done using the clinics they acquired through Ulysses Acquisitions, they engaged in sham sales of the clinics to nominee or straw owners, all of whom were recent immigrants to the United States with no background or experience in the health care industry. Grishkoff and others did this in an effort to try to disassociate themselves from the fraudulent operations of their clinics.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorneys Christopher J. Hunter and Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant United States Attorney Simon A. Gaugush of the U.S. Attorney’s Office for the Middle District of Florida.
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, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .Couple Sentenced for Sex Trafficking A 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Stephanie Olean Chapman, 28, of Fairfax, Va., and Ronnie Pierre Holmes, 30, with no fixed address, were sentenced today to 132 and 168 months in prison, respectively, followed by five years of supervised release, for charges stemming from the prostitution of a 15-year-old girl throughout northern Virginia, Maryland and Washington, D.C.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge Liam O’Grady.
Holmes pleaded guilty on June 25, 2013 to a criminal information charging him with conspiracy to commit sex trafficking of a child. Chapman was convicted by a federal jury on Oct. 17, 2013 of conspiracy to commit sex trafficking of a child, sex trafficking of a child, and interstate transportation of a minor for the purposes of prostitution.
According to court documents and evidence adduced at Chapman’s trial, between Feb. 27, 2013 and March 12, 2013, Chapman and her boyfriend, Holmes, met a 15-year-old girl and recruited her to be a prostitute for them. During that time, Chapman and Holmes took sexually suggestive photographs of the girl, sent the photographs to potential customers, posted the photographs on Backpage.com, drove the girl to meet with customers at locations in Virginia, Maryland and the District of Columbia, and took half of the money paid to the girl after she engaged in sex with customers for money.
This case was investigated by the Federal Bureau of Investigation and the Fairfax County Police Department. Special Assistant United States Attorney Stacey Luck and Assistant United States Attorney Michael J. Frank 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.Convicted Felon Sentenced to 10 Years in Federal Prison on Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Troy L Antley, 44, of Providence, was sentenced today to the maximum sentence of 10 years in federal prison for being a convicted felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
Antley was arrested by Providence Police on June 2, 2013, following a brief but violent struggle with officers, after Rhode Island State Police Colonel Steven G. O’Donnell spotted Antley walking in the Smith Hill area with a loaded firearm stuck in his waistband.
At sentencing, U.S. District Court William E. Smith also ordered Antley to serve 3 years supervised upon completion of his prison term. Antley pleaded guilty on October 8, 2013, to one count of being a felon in possession of a firearm.
According to information presented to the court, after spotting Antley with the firearm, Rhode Island State Police Colonel Steven O’Donnell, unarmed at the time, alerted Providence Police and continued to follow Antley. Colonel O’Donnell continued to follow Antley after he entered a vehicle and began to drive away from the area. Responding officers quickly located and blocked Antley’s vehicle. As they did, Antley exited the vehicle and fled on foot. Several officers chased and quickly apprehended Antley, who fought with two of the officers while being detained.
A fully loaded .45 caliber handgun was recovered from the vehicle driven by Antley. The hammer on the gun was cocked back.
According to information presented to the court, Antley was previously convicted in R.I. state court on felony assault, robbery and drug trafficking charges.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
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Contact: 401-709-5357
[email protected]Connecticut Man Convicted of Tax Evasion and Conspiracy ChargesRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced that John Cote, formerly of Danielson, Conn., was convicted today of four counts of tax evasion along with conspiracy to defraud the IRS following a jury trial in the U.S. District Court for the District of Connecticut.
According to court documents and evidence produced at trial, Cote had not filed a timely or valid tax return for the years 1995 through 2009, despite earning income from his work as a consultant in the high technology welding industry. The evidence showed that Cote and his wife responded to IRS efforts to assess and collect taxes by concealing income and assets from the government and by submitting obstructive letters and other documents, including false criminal complaints against IRS employees. From 1998 to 2009, Cote caused the companies for which he worked to pay his compensation to nominee entities, including through accounts in Costa Rica and Sweden. Cote also used a nominee entity in his wife’s name to conceal income and assets from the IRS and in 2003, Cote's wife conveyed their personal residence to this entity.
Following the jury verdict, U.S. District Judge Vanessa Bryant scheduled Cote’s sentencing for April 16, 2014, and Cote remains detained pending sentencing. For each of the five counts of conviction, Cote faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000.
The case was investigated by special agents of IRS – Criminal Investigation. Trial Attorneys Jennifer Laraia, Melissa Siskind and Jeffrey McLellan of the Tax Division prosecuted the case.
Cleveland Attorney Charged with Tax ViolationsRead the Press Release
Attorney Ronald L. Rosenfield was charged in an information with failing to report and pay approximately $196,832 of employment taxes announced United States Attorney Steven M. Dettelbach. The case is assigned to United States District Judge John R. Adams in Akron.
The unpaid taxes consisted of income taxes and FICA taxes withheld from the wages paid by his law firm, Ronald Rosenfield Co., L.P.A., including his own wages, for the eighteen consecutive calendar quarters from December 2006 through March 2011, according to the information. The information also alleges that Rosenfield failed to report and pay an unspecified amount of additional employment taxes for all of the prior quarters dating back to June 2001.At all relevant times, Rosenfield retained a national payroll firm, which prepared the law firm’s required employment tax returns for him to file with the Internal Revenue Service. Rosenfield, however, did not file any of those returns and made no payments of the taxes reported on those returns, according to the information. Moreover, the information alleges that Rosenfield claimed credits on his personal income tax returns for his unpaid income tax withholdings.
Rosenfield, age 70, resides in South Euclid, Ohio, according to court documents.
The case is being prosecuted by Assistant United States Attorneys John M. Siegel and Justin J. Roberts, following an investigation by the Internal Revenue Service – Criminal Investigation, Independence, Ohio.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Charleston Man Who Illegally Purchased Prescription Drugs Sentenced to Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Charleston pill dealer who illegally purchased powerful prescription painkillers in April 2012 was sentenced yesterday to six months in federal prison, announced U.S. Attorney Booth Goodwin. William Lewis Thornhill, II, 31, previously pleaded guilty in October to possession with intent to distribute oxymorphone, also known as “Opana.” Thornhill’s sentence was handed down by U.S. District Judge John T. Copenhaver, Jr. in Charleston. On April 4, 2012, Thornhill purchased approximately 50 40-milligram Opana tablets. Thornhill told police that he intended to sell the prescription pain tablets. The illegal transaction occurred in and around Kanawha City.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.Chairman of Richardson, Texas, Oil and Gas Well Promotions Company Sentenced to 30 Years in Federal Prison on Conspiracy and Securities FraudRead the Press Release
DALLAS — David Kevin Lewis, the chairman and director of field operations of Always Consulting, Inc. (ACI), an oil and gas well promotions company with offices in Richardson, Texas, was sentenced this morning, by Chief U.S. District Judge Sidney A. Fitzwater, to 30 years in federal prison and ordered to pay approximately $2.5 million in restitution, following his conviction at trial in September 2013 on one count of conspiracy to commit securities fraud and 23 counts of securities fraud. Judge Fitzwater remanded Lewis, aka “David Shane Lewis” and “DW,” 52, of Albany, Kentucky, into custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lewis’s co-defendants in the case, Bruce Kyle Griffith, 59, of Dallas, and Thomas Alden Markham, Jr., 63, of Plano, Texas, each pleaded guilty to their roles and were sentenced in December 2013 to 100 months and 21 months, respectively. Griffith, who was the president and CEO of ACI, pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. Markham, ACI’s chief geologist, pleaded guilty to one count of misprision of a felony. Griffith, who is in custody, was also ordered to pay approximately $2.5 million in restitution and Markham, who must surrender to the Bureau of Prisons next month, was ordered to pay approximately $1.5 million in restitution.
Lewis, Griffith and Markham conspired together to scheme to obtain money and property by making untrue statements and omitting material facts to defraud investors, located throughout the United States, who purchased interests in well program units, representing fractional, undivided interests in oil, gas or other mineral rights and investment contracts.
They sent investment documents and monthly investment newsletters from ACI to induce investors to invest money and purchase interests in the Rattlesnake Springs Drilling Program or other oil and gas drilling programs. Rattlesnake, was one of several investment programs offered and sold by ACI to investors, was to be located in Osage County, Oklahoma.
They also used ACI sales employee “fronters” to contact prospective investors and referred interested and financially-able investors to ACI employee “closers,” including Lewis and Griffith, who contacted the interested investors to convince them to invest. The “fronters” were equipped with scripts, pitches and talking points all touting the investment and designed to make prospective investors believe that ACI’s programs were potentially profitable investments.
They also provided the ACI sales employees with a “do not call” list, entitled “Undercover Regulators,” which listed contact information of individuals the defendants suspected of being state or federal regulators posing as potential investors.
The defendants misapplied and converted the Rattlesnake Springs Drilling Program investor funds to their own use and benefit, and the use and benefit of others, including the purchase of real and personal property and to pay for expenses of other ACI programs.
The defendants falsely stated that: ACI would perform all necessary services to complete the Rattlesnake Springs Drilling Program; ACI would use investor funds to begin site preparation, drilling, testing and completion of the Rattlesnake Springs Drilling Program wells; ACI would pay all costs necessary to get the wells into production for approximately $3.5 million; ACI had influence inside the Osage Nation in Oklahoma and could acquire oil and gas leases on terms unavailable to others; pipelines had been laid; and Griffith begin in the oil and gas business in 1985 as a private pilot flying oil executives and equipment to foreign countries.
The defendants concealed from investors that: Rattlesnake investor funds were being comingled with funds from other ACI projects and were being used to pay operating expenses of other ACI projects; most of Rattlesnake’s investor funds had been misapplied and diverted an no longer available to drill the promised 20 wells; funds invested in Rattlesnake had been diverted, for the use and benefit of the defendants; ACI relied on investor funds to operate and upon production revenue from oil and gas wells.
ACI’s offering memorandum identified “DW” and “Griffith” as registered operators in Texas and Oklahoma, but omitted that “DW” was Lewis and that Lewis and Griffith weren’t registered to sell securities in Texas. ACI represented that “DW” (Lewis) had 25 years’ experience in finance, investing, management and the oil and gas industry, but omitted facts including: Lewis was a convicted felon, having been convicted in 2000 of securities fraud and conspiracy to commit mail fraud, in connection with oil and gas offerings; Lewis was under federal court orders to pay approximately $2.2 million in restitution to previously defrauded oil and gas investors; and Lewis was under an injunction barring him from violating federal securities laws in connection with oil and gas offerings.
ACI’s offering memorandum also noted that Griffith had 20 years’ experience in the oil and gas industry, having started out as a private pilot with a twin engine rating and instrument rating. Griffith, however, was never a pilot, had little experience in the industry, and in fact, was a convicted felon, having been specifically convicted in federal court of bank robbery in 1994 and conspiracy to possess and utter counterfeit federal reserve notes in 1989.
ACI’s offering stated that Markham had more than 30 years in the oil and gas industry as a geologist, supervisor and manager, but failed to disclose he was a convicted felon, having been convicted of mail fraud in 2000 in connection with an oil and gas offering, and that as part of his sentence, he was under court order to pay nearly $400,000 in restitution to defrauded investors.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case was investigated by the Texas State Securities Board (TSSB) and the FBI. Assistant U.S. Attorney Joseph Revesz and TSSB Enforcement Attorney Suzanne Steinmetz prosecuted.
Carjacker Exiled to over 9 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced James F. Honesty, age 25, Washington, D.C., today to 114 months in prison, followed by three years of supervised release, for carjacking and for being a felon in possession of a gun.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks
According to Green=s plea agreement, in the early morning hours of June 6, 2012, the victim was in the 600 block of Audrey Lane in Oxon Hill, Maryland. The victim had retrieved some items from her car and was walking home when Honesty pointed a shotgun at her face and demanded her car keys. The victim gave Honesty the keys and he drove away in the victim’s car. Honesty was apprehended after police chased the stolen vehicle from Washington, D.C. to Cheverly, Maryland. Honesty and the other occupants of the car ran away after the vehicle crashed and Honesty was arrested nearby. Police recovered a 16 gauge shotgun with a sawed off barrel and a .380 caliber semi-automatic handgun in the vehicle. Both firearms were loaded and had one round in the chamber. Honesty was prohibited from possessing a firearm due to a previous felony conviction.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department and Prince George’s County State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau, who prosecuted the case.
Car Dealership Owner Pleads Guilty to Money Laundering of Drug Trafficking and Tax Fraud ProceedsRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces that Samih Abdel Rahman (51, Tampa) today pleaded guilty for his involvement in a money laundering conspiracy. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
Rahman was charged in a superseding indictment on March 14, 2013.
According to the plea agreement, Rahman is the owner/operator of Sam & Sons Auto Sales, Inc. (“Sam & Sons”), a used car dealership, located in Tampa. For a period of years, until about March 2013, Rahman, assisted by others, sold vehicles to customers who paid with cash from narcotics trafficking and/or fraudulently-obtained income tax refund fraud (“SIRF”) checks. Knowing that those payments were the results of illegal activity, Rahman laundered the money by conducting the car sales in a manner that concealed the illicit sources of the money. For instance, he titled the sold vehicles in the names of "straw purchasers" – persons other than the actual buyers and intended users of the vehicles. Rahman also disguised the identities of the true buyers by creating and processing false paperwork for the car sales, including fake Bills of Sale and payment receipts. Upon receiving cash payments of more than $10,000, Rahman further laundered the money by structuring the bank deposits in a way that avoided triggering bank reporting requirements. He also failed to report those transactions, as required under federal law, by a car dealership receiving specific amounts of cash during the sales of vehicles.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Matthew Jackson.
Camp Hill Marijuana Trafficker Sentenced to Federal PrisonRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that Andrew Angle, age 26, Camp Hill, was sentenced on January 23, 2014 to 27 months in prison for conspiracy to distribute marijuana.
According to United States Attorney Peter J. Smith, yesterday in Harrisburg, Chief U.S. District Court Judge Christopher C. Conner held a sentencing hearing in which he heard testimony by a DEA agent regarding Angle’s marijuana trafficking activities between December 2011 and March 2012. Following the testimony, Chief Judge Conner found Angle responsible for distributing between 5 kilograms and 10 kilograms of marijuana. The court also imposed fines of $500, two years of supervised release, and forfeiture of an additional $6,600 in funds.
Angle previously entered a guilty plea to conspiracy to distribute marijuana. Pursuant to the plea agreement, Angle forfeited over $50,000 in cash and drug proceeds seized from a bank account, safe deposit box, and locations affiliated with Angle.
The case was investigated by the DEA, Dauphin County Drug Task Force, and the Cumberland County Drug Task Force and prosecuted by Assistant United States Attorney Michael A. Consiglio.
Business Owner Admits to Failing to Pay Taxes to IRSRead the Press Release
LAREDO, Texas - Jorge Montemayor has entered a plea of guilty to failing to pay over employment taxes to the Internal Revenue Service (IRS), announced United States Attorney Kenneth Magidson.
According to the written plea agreement filed in the record of the case, Montemayor was the Chief Financial Officer (CFO) and one of the initial owners of a home health care business that provided basic skilled care. He acknowledged that in his role as CFO, he had authority to conduct financial transactions on behalf of GDM Home Health Inc. and exercised signatory authority on the company's bank accounts.
The indictment had alleged Montemayor was required to pay over employment taxes to the United States which include federal income tax, Social Security and Medicare taxes. As part of the plea, Montemayor admitted he knowingly and willfully failed to pay over to the IRS approximately $368,025.84 of federal income and FICA and Medicare taxes withheld from the taxable wages of employees of GDM Home Health Inc. for 2008. Montemayor admitted that had different business expense and personal choices been made, funds would have been available to pay these taxes.
He faces a statutory maximum penalty of five years in prison and a $250,000 fine at a sentencing date yet to be determined. He was permitted to remain on bond pending that hearing.
The investigation resulting in the charges against Montemayor was conducted by IRS - Criminal Investigation and FBI. Assistant United States Attorneys Elizabeth R. Rabe and Charles Escher are prosecuting the case.
Brothers Sentenced to Prison for Conspiracy to Illegally Export Firearm Parts to ThailandRead the Press Release
Two brothers who were arrested in June 2013 in connection with a conspiracy to illegally ship firearms parts to Thailand, were sentenced today in U.S. District Court in Seattle to prison terms for conspiracy, announced U.S. Attorney Jenny A. Durkan. NARES LEKHAKUL, 36, a lawful permanent resident of Bellevue, Washington, was sentenced to two years in prison and three years of supervised release. His brother, NARIS LEKHAKUL, 42, a Thai citizen arrested in June 2013 at SeaTac Airport was sentenced to three years in prison. He likely will be deported following his prison term. At sentencing U.S. District Judge Richard A. Jones told NARIS LEKHAKUL, “It was very clear to you … that you were not to engage in this activity… what is very troubling is that you continued to recruit others after being told this conduct was illegal.”
“These defendants used patsies and ruses to hide and protect their scheme to smuggle firearms parts to Thailand,” said U.S. Attorney Jenny A. Durkan. “They knew they were violating Thai and U.S. laws that seek to prevent smuggling. Stopping the illegal flow of weapons and weapons parts is a key priority for law enforcement.”
In their plea agreements the brothers admit that NARIS LEKHAKUL, while living in Thailand, identified the firearms parts he wanted ordered and shipped overseas. Initially the gun parts were sent to his brother NARES’ home in Bellevue, Washington, where NARES LEKHAKUL attempted to disguise the shipments which were sent on to Thailand. After one shipment was seized in 2011, NARIS LEKHAKUL recruited four other people to receive the shipments of firearms parts, disguise them, and send them on to Thailand. The co-conspirators did not obtain appropriate licenses to make the shipments. The co-conspirators would use fake names and fake invoices to try to avoid detection, and they packed various firearms parts in specific ways to try to avoid detection by x-ray scanners. Members of the group shipped various firearms parts with false labels. For example, in one instance they shipped magazines for .45 caliber handguns, while labeling them “Vented steel case for electronic components” or “replacement springs and metal caps for bottling machine.” Other shipments were labeled as “hobby parts,” or “glow in the dark marker sets.” In all, the group is believed to be responsible for more than 250 shipments of restricted firearms components, worth more than $750,000. The defendants did not ship any assembled firearms or entire firearms disassembled.
“These defendants purposely circumvented U.S. arms controls put in place to keep dangerous weapons out of the hands of transnational criminal organizations and foreign enemies,” said Brad Bench, special agent in charge of HSI Seattle. “Enforcing these export laws is a priority mission for our HSI special agents.”
In addition to the LEKHAKUL brothers, four additional defendants have also pleaded guilty. Witt Sittikornwanish, 24, a U.S. citizen residing in the Los Angeles area was sentenced to 10 months in prison, Sangsit Manowanna, 35, a U.S. citizen residing in the Los Angeles area, was sentenced to ten months in prison and Supanee Saenguthai, 35, a Thai citizen residing in Berkeley, California was sentenced to probation. Wimol Brumme, 41, a Thai citizen residing in Las Vegas will be sentenced on February 28, 2014.
The Department of State promulgates the United States Munitions List, which consists of categories of defense articles and services that cannot be exported without a license issued by the Department of State. The U.S. Munitions List includes the firearms’ parts and components shipped in this case. As a result, the export of firearms components requires an export license.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the U.S. Postal Inspection Service.
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Thomas Woods with assistance from the U.S. Department of Justice National Security Division, Counterespionage Section.
Belleville Man Sentenced to Federal Prison for Armed RobberyRead the Press Release
Case is One of Many Brought as a Result of United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that London M. Brown, 21, of Belleville, Illinois, was sentenced in federal district court in East St. Louis for two counts of Armed Robbery and one count of Possession of a Firearm in Furtherance of a Crime of Violence. The robbery counts are federal “Hobbs Act Robbery.” The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery, and is used by United States Attorney Wigginton’s office as a way to combat armed robbery in the Southern District of Illinois.
“I continue to be fully committed to using every tool at my disposal to ensure the peace and safety of Southern Illinois’ residents.” noted United States Attorney Wigginton. “As I said when I announced the Metro-East Armed Robbery Initiative, these robberies carry very severe federal penalties. Do this and you will find yourself in federal prison far from your family and friends.”
Brown was sentenced to 135 months in prison, to be followed by 5 years of supervised release, a $300 special assessment, and a fine of $600. There is no parole in the federal system. The charges relate to two armed robberies that Brown committed at the Circle K gas station at 2709 West Main, Belleville. Brown committed the first robbery on July 22, 2013, armed with a .22 caliber rifle. He committed the second robbery on August 15, 2013, armed with the same gun. During the first incident, Brown robbed the store clerk of $100. During the second, he robbed a different clerk of $358.
Police spotted Brown soon after the second incident; they chased Brown through several Belleville neighborhoods and finally found him hiding in some bushes, where they arrested him. Brown made statements to the police admitting to both armed robberies. Police found $362 in cash on his person, which has been transferred back to Circle K. Brown has been ordered to pay as restitution the balance he stole from Circle K.
The case was investigated by members of the Federal Bureau of Investigation and the Belleville Police Department. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Batesland Man Sentenced for Two Charges of Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Batesland, South Dakota, man convicted of two charges of Abusive Sexual Contact was sentenced on January 23, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
George American Horse, age 62, was sentenced to 72 months in custody for one charge and 48 months for the other charge, for a total of 120 months (10 years), 5 years of supervised release on each count to run concurrently, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
American Horse pled guilty to the charges on September 26, 2013. The charges relate to incidents that happened between 2009 and 2012 near Batesland, when American Horse engaged in sexual contact with a child who had not attained the age of 12.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
American Horse was immediately turned over to the custody of the U.S. Marshals Service.
Batesland Man Sentenced for Two Charges of Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Batesland, South Dakota, man convicted of two charges of Abusive Sexual Contact was sentenced on January 23, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
George American Horse, age 62, was sentenced to 72 months in custody for one charge and 48 months for the other charge, for a total of 120 months (10 years), 5 years of supervised release on each count to run concurrently, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
American Horse pled guilty to the charges on September 26, 2013. The charges relate to incidents that happened between 2009 and 2012 near Batesland, when American Horse engaged in sexual contact with a child who had not attained the age of 12.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
American Horse was immediately turned over to the custody of the U.S. Marshals Service.
Baltimore Conspirator Sentenced to 4 Years in Prison for Two Separate Bank Fraud SchemesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Nelly Dadson, age 23, of Baltimore, today to four years in prison, followed by five years of supervised release, for conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes. Judge Grimm also ordered Dadson to forfeit and pay restitution of at least $251,745.52.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.
According to her plea, from June 14, 2010 to March 11, 2013, Dadson, Paul Essel and others opened bank accounts in their own names and in the names of shell corporations that they controlled. Dadson, Essel and others used counterfeit checks that resembled convenience checks that had been stolen from mailboxes in Montgomery and Prince George’s Counties. The counterfeit checks contained names, addresses and account information that appeared on the convenience checks. Dadson deposited these counterfeit checks into accounts controlled by the conspirators and then withdrew funds from the accounts. Essel and other co-conspirators paid Dadson between $1,000 and $5,000 per check to deposit these checks and withdraw funds.
In addition, between June 14, 2010 and November 13, 2012, Dadson, Essel and others conspired to defraud The Home Depot, Inc. On multiple occasions, a conspirator placed an order by phone with a Home Depot store for flooring in amounts ranging from $2,500 to $8,000, using a stolen credit card number. Within a few days, a conspirator called to cancel the order and supplied the debit card number of a conspirator, including Dadson and Essel, requesting that the refund for the order be placed on the conspirator’s debit card. Dadson received 38 credits to her bank accounts totaling approximately $141,159.07, which she then withdrew and provided to Essel. Dadson was paid $600-$800 per transaction.
On April 29, 2013, law enforcement executed a search warrant at Dadson’s home and upon entry, saw Dadson attempting to flush several stolen credit cards down a toilet. Dadson admits that she used a victim’s name to make fraudulent transactions on approximately 10 credit cards and numerous gift cards in the victim’s name, purchasing electronics and other expensive items.
The total loss caused by Dadson’s conduct is between $200,000 and $400,000, involving between 10 and 50 victims.
Paul Essel, age 26, of Laurel, Maryland, pleaded guilty today to conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes. Essel faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. Essel has agreed to pay forfeiture and restitution of at least $418,435.48. U.S. District Judge Paul W. Grimm scheduled his sentencing for May 13, 2014.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service, U.S. Department of Treasury – Office of Inspector General and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Christen A. Sproule and Bryan E. Foreman and, who prosecuted the case.
Amherst Man Pleads Guilty in Connection with Burglary at a Middle Port PharmacyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Michael Codelia, 47, of Amherst, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara to conspiracy to possess with intent to distribute, and to distribute, oxycodone stolen from the Middleport Family Health Center and Pharmacy on August 12, 2012, during a burglary. The charges carry a maximum penalty of 20 years in prison.
According to Assistant U.S. Attorney Frank Pimintel, the defendant took part in the burglary of the pharmacy along with Cody S. Broecker and another defendant. Codelia says the three men cut a hole in the roof of the pharmacy, and Broecker and the other co-defendant then lowered themselves in and stole more than $12,500 worth of Amphetamine, Oxycodone, Morphine, Hydrocodone, Codeine, Clonazepam, Lorazepam, Diazepam, and Zolpidem.
Codelia was arrested on August 14, 2012 in Buffalo after attempting to sell 400 of the pills taken during the burglary. The defendant’s arrest led law enforcement officers to Broecker and the other co-defendant who fled to Oregon. They were apprehended in November 2012. Broecker has been convicted and is awaiting sentencing. Charges against the other co-defendant are pending. 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 plea is the result of an investigation on the part of the Drug Enforcement Administration, under the direction of Jamie J. Hunt, Acting Special Agent in Charge, New York Field Division, the Niagara County Sheriff=s Department, under the direction of Sheriff James Votour, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for April 28, 2014, before Judge Arcara.
Alleged International Narcotics Traffickers Extradited from Colombia on Cocaine Importation ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade County State Attorney, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), announce the extradition of Colombian citizens Omar Alejandro Vanegas Lora, a/k/a “Paco,” 41, and Edinson Antonio Ahumada Arboleda, a/k/a “El Primo,” 48, from Colombia to the United States to face charges in the Southern District of Florida involving the importation of kilogram quantities of cocaine into the United States. Vanegas Lora and Ahumada Arboleda arrived in the Southern District of Florida on January 23, 2014 and made their initial appearance today in federal court before U.S. Magistrate Judge Chris M. McAliley.
The charges announced today are the result of a multi-agency investigation that began in 2010 into the drug smuggling activities at Port Everglades. To date, the investigation has resulted in the indictment and conviction of nearly a dozen former King Ocean Services employees who worked at Port Everglades and numerous drug traffickers who received the narcotics from the port that were being smuggled aboard cargo ships owned or operated by King Ocean Services. As a result of this investigation, Omar Alejandro Vanegas Lora and Edinson Antonio Ahumada Arboleda were indicted in the Southern District of Florida on January 25, 2013. The indictment charges Omar Alejandro Vanegas Lora and Edinson Antonio Ahumada Arboleda with conspiring to import cocaine into the United States and conspiring to possess with intent to distribute cocaine. From 2011 until the date of Vanegas Lora’s arrest on these charges, he was the elected mayor of Tenerife, a town near Barranquilla, Colombia.
The investigation revealed that beginning in at least 2009 through the date of the indictment, Vanegas Lora and Ahumada Arboleda allegedly ran a scheme to smuggle multi-kilogram quantities of cocaine aboard King Ocean Services cargo vessels that were destined for Port Everglades, while these vessels were docked at ports of call overseas. Once the vessels arrived at Port Everglades, Vanegas Lora and Ahumada Arboleda allegedly coordinated the offloading of the narcotics from the vessels with Port Everglades employees and other associates, and arranged to have the narcotics delivered to local drug traffickers.
The conspiracy allegedly involved the importation of more than 150 kilograms of cocaine through Port Everglades.
U.S. Attorney Wifredo A. Ferrer stated, “The arrest and extradition of Omar Alejandro Vanegas Lora and Edinson Antonio Ahumada Arboleda are the direct result of strong international cooperation with Colombian authorities. It also reflects the hard work, commitment, and perseverance of our Colombian and U.S. law enforcement partners to rid our streets of drugs and make our ports of entry safer. Now that Vanegas Lora and Ahumada Arboleda have been successfully extradited, justice will be served.”
“I’m very proud that the initial leads developed by our Money Laundering Strike Force led to numerous international cases well prosecuted by our Federal partners. This is just another example of the fine work our State and Federal law enforcement partners accomplish every day,” commented Miami-Dade State Attorney Katherine Fernandez Rundle.
HSI Special Agent in Charge Alysa D. Erichs added, “HSI and our law enforcement partners will continue to combat drug trafficking in the United States. Our ports will not serve as an entry point for narcotics or other contraband.”
DEA Special Agent in Charge Mark R. Trouville stated, “The ports along Florida’s coastline have long been utilized by drug traffickers and it continues to be a concern for DEA. Successful indictments and extraditions like these wreak havoc on international drug trafficking organizations. The DEA remains vigilant in these areas and will continue to work side by side with our domestic and international law enforcement partners to bring justice to those who conspire to bring dangerous drugs into our nation.”
“The tools that were utilized to identify and investigate this drug trafficking organization make this joint investigation one of the first of its kind at Port Everglades,” Sheriff Israel said. “It took many years to build the case, but the successful prosecution of these individuals is a win for the residents of Broward County.”
The indictment of Vanegas Lora and Ahumada Arboleda is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by HSI in conjunction with the DEA Miami Field Division, the Broward County Sherriff’s Office, and the South Florida Money Laundering Strike Force. 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.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DEA, BSO and the South Florida Money Laundering Strike Force. The ICE-HSI Attaché’s Office in Bogotà provided significant assistance and support during the arrest and extradition of the defendants. The case is being prosecuted by Assistant U.S. Attorney Aimee Jimenez.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Advocates and Leaders for Police and Community Trust (alpact) Southwest Michigan Group FormedRead the Press Release
Co-Chairpersons Announced
GRAND RAPIDS, MICHIGAN – The U.S. Attorney’s Office, Western District of Michigan is pleased to announce its partnership with ALPACT established in 2013 in Benton Harbor, Michigan. The purpose of ALPACT is to examine issues affecting police and community relations and ensure equitable enforcement of laws, including: racial profiling, police discretion, use of force, recruitment and training, citizen complaint processes, community partnering, and police leadership and management disciplinary practices.
ALPACT of Southwest Michigan is comprised of leaders and members of the community in Southwest Michigan, civil rights and civil liberties organizations, and leaders from the law enforcement community.
The Co-Chairpersons for this year will be Lisa Peeples-Hurst of Benton Harbor and Milton Agay, Chief of Police, Oronoko Township Police Department.
U.S. Attorney Patrick A. Miles, Jr. is honored to be a part of the important work to be accomplished by ALPACT in 2014. He said “Communities need to work together with law enforcement, civil rights groups and government organizations to focus on issues and strategies to create improved methods of addressing serious concerns.” Mr. Miles also thanks the new ALPACT co-chairs for their dedication and leadership.
END
23 January 2014
York Woman Charged Federally with Wire FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that the federal grand jury in Harrisburg returned an Indictment on January 22, 2014 charging Nancy Sipe, age 47, York, with Wire Fraud.
According to United States Attorney Peter J. Smith, from August 2008 to February 2012, Nancy Sipe allegedly took money totally approximately $80,000 from her brother-in-law’s bank and retirement accounts, without authorization, while acting as his power-of-attorney. Sipe then allegedly used the money to pay for vacations and for personal and private financial gain.
If convicted, Sipe faces a term of imprisonment of up to 20 years and a $250,000 fine.
This case was investigated by the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
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 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Wood Man Charged with Assault Resulting in Serious Bodily Injury and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wood, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Child Abuse.
Elias LaPointe, age 20, was indicted on January 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 21, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to an incident that took place on October 23, 2013, when LaPointe allegedly assaulted and abused a child under the age 7, and the said assault resulted in serious bodily injury.
The charge is merely an accusation and LaPointe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
LaPointe was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Volusia County Man Sentenced to 27 Years in Prison for Receipt and Possession of Child PornographyRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Don Osborne (42, Volusia County) to 27 years in federal prison for receipt and possession of child pornography. As part of his sentence, he was also ordered to serve a life term of supervision, following his incarceration.
Osborne pleaded guilty on August 20, 3013.
According to court documents, U.S. Immigration and Custom’s Enforcement’s (ICE) Homeland Security Investigations (HSI) began investigating an Internet Protocol (IP) address that was located at a coffee shop, where images of child pornography were available for download via a peer‑to‑peer file sharing program. HSI special agents were able to download some of these child pornography images directly from Osborne. Further investigation revealed that Osborne often frequented the coffee shop and utilized their wireless Internet. On November 8, 2012, agents personally observed Osborne at the coffee shop, using a computer and a peer‑to‑peer file sharing program. The agents approached Osborne and interviewed him in the coffee shop. Osborne admitted to downloading child pornography, while using the Internet connection at that location. A forensic analysis of Osborne’s computer revealed that it contained over 1,000 images of child pornography.
At the time of this offense, Osborne was a registered sex offender for previous sex offenses in West Virginia and Florida, and was on probation for a previous sex offense in Florida.
“Child predators go to great lengths to view and trade child pornography online, including logging on to any unsecured wireless connection,” said Shane Folden, deputy special agent in charge of HSI Tampa, which oversees the agency’s Cocoa Beach office that conducted this investigation. “Our investigative techniques enabled us to identify this individual, even though he tried to use a public Wi-Fi connection to conceal his identity. I urge other child predators to take note – you cannot hide behind a public IP address.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Shawn P. Napier.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
United States Government Sues Kellogg, Brown & Root Services <br /> Inc. and Two Foreign Companies for Kickbacks and False Claims <br /> Relating to Iraq Support Services ContractRead the Press Release
The government has filed a complaint against Kellogg, Brown & Root Services Inc. (KBR) and Kuwaiti companies La Nouvelle General Trading & Contracting Co. (La Nouvelle) and First Kuwaiti Trading Co. (First Kuwaiti) for submitting false claims in connection with KBR’s contract with the Army to provide logistical support in Iraq, the Department of Justice announced. KBR is an engineering, construction and services firm headquartered in Houston, Texas. Kuwait-based La Nouvelle and First Kuwaiti provided transportation, maintenance and other services in support of KBR’s contract with the Army.
“We depend on companies like KBR and its subcontractors to provide valuable services to our military,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will en sure that contractors do not engage in corrupt practices at the expense of our troops abroad, while profiting at the expense of taxpayers at home.”
Allegedly, KBR made claims to the government, knowing them to be false, under a contract with the Army to provide wartime logistical support, known as the Logistics Civil Augmentation Program (LOGCAP) III. The award of LOGCAP III paved the way for the company to become a critical source for logistical support services in Iraq, which included transportation, maintenance, food, shelter and facilities management. KBR performed many of these services through subcontracts awarded to foreign companies local to the region, such as La Nouvelle and First Kuwaiti.
In its complaint, filed in federal court in Rock Island, Ill., the government alleged that, in 2003 and 2004, KBR employees took kickbacks from La Nouvelle and First Kuwaiti in connection with the award and oversight of subcontracts awarded to these companies. KBR then claimed reimbursement from the government for costs it incurred under the subcontracts that allegedly were inflated, excessive or for goods and services that were grossly deficient or not provided. For example, KBR allegedly awarded La Nouvelle a subcontract to supply fuel tankers for more than three times the tankers’ value. La Nouvelle later rewarded the KBR employee who awarded the subcontract with a $1 million bank draft. As another example, KBR allegedly continued to make monthly lease payments to First Kuwaiti for trucks KBR had already returned to the subcontractor. KBR billed the government for the costs of both of these subcontracts. The lawsuit also alleges that KBR used refrigerated trailers to transport ice for consumption by the troops that had previously been used as temporary morgues without first sanitizing them.
“Our office investigated the actions of KBR and related companies, as well as certain KBR employees,” said U.S. Attorney for the Central District of Illinois Jim Lewis. “We were able to obtain criminal convictions against several subcontract managers whose actions were illegal and caused damage to our military, and we are now committed to pursue these civil claims against the companies themselves.”
The U.S. Attorney’s Office in Rock Island has convicted 10 companies and individuals in connection with wartime contracts in Iraq. The convictions include three KBR subcontract managers who admitted taking kickbacks or making false statements in connection with the allegations made in the government’s complaint. Anthony J. Martin pleaded guilty in 2007 to taking kickbacks in return for awarding First Kuwaiti subcontracts for trucks and trailers and also admitted including the amount of the kickbacks in the price of the subcontracts. In 2005, Jeff Alex Mazon pleaded guilty to making a false written statement in connection with a subcontract for fuel tankers awarded to La Nouvelle in 2003. And in 2006, Stephen Lowell Seamans admitted taking kickbacks from La Nouvelle, during a guilty plea to a kickback arrangement with another subcontractor, Saudi Arabia-based Tamimi Global Co. Ltd. (Tamimi). The government previously entered into criminal and civil agreements with Tamimi in which Tamimi paid the U.S. government $13 million, including $7.4 million for civil claims and $5.6 million in criminal fines, to resolve its liability for the kickbacks.
The government is suing KBR, La Nouvelle and First Kuwaiti under the False Claims Act, as well as the Anti-Kickback Act.
“Contractors and subcontractors are expected to comply with their statutory obligations and act in good faith when dealing with the United States government,” said Special Agent in Charge of the Defense Criminal Investigative Service’s Southwest Field Office Janice M. Flores. “The lawsuit demonstrates the commitment of DCIS and its partner agencies to prevent false billing and corrupt practices involving the military contracting process.”
Some of the allegations contained in the government’s complaint were originally alleged in a lawsuit filed in a federal court in Houston by a whistleblower, Bud Conyers, under the qui tam provisions of the False Claims Act. The case was later transferred to the U.S. District Court for the Central District of Illinois in Rock Island, Ill., where LOGCAP III is administered by the Department of Defense at the Rock Island Arsenal. The False Claims Act authorizes private parties to sue, on behalf of the government, companies and persons whom they believe have falsely claimed federal funds and to share in any recovery. The Act also allows the government to intervene and take over the action, as it has done in this case. The government notified the court earlier this year that it was intervening in Conyers’ case and intended to file its own complaint with additional allegations.
The lawsuit is being handled by the Civil Division of the Department of Justice with investigative support by the Defense Contract Audit Agency, the Defense Criminal Investigative Service and the Army Criminal Investigation Command. The U.S. Attorney’s Office for the Southern District of Texas also participated in the investigation.
The case is captioned United States ex rel. Conyers v. Kellogg Brown & Root Inc. et al., No. 4:12-cv-04095-SLD-JAG (C.D. Ill.). The claims asserted in this case are allegations only; there has been no determination of liability except to the extent of admissions made in the criminal proceedings.
United States Attorney William J. Hochul, Jr. Western District of New York EDNY Federal Jury Convicts Joseph Romano on Both CountsRead the Press Release
BROOKLYN, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that a federal jury convicted Joseph Romano, 51, of Levittown, N.Y., of conspiring to murder the Assistant United States Attorney who prosecuted him for engaging in an eight-year, multi-million dollar fraud involving the telemarketing of coins. The jury also convicted the defendant of conspiring to murder the United States District Judge who sentenced him to 15 years in prison for that fraud. The defendant faces a maximum penalty of life in prison, a fine of $250,000, or both, in addition to forfeiture of over $200,000 when he is sentenced in March.
“A threat against a member of the criminal justice system, such as a Judge or an attorney, is nothing less than an attempt to subvert the system, and as such will not be tolerated,” said U.S. Attorney Hochul.
According to the Government’s trial evidence, the defendant agreed to pay $40,000 to an undercover police officer, whom he thought was a hit-man, to kill the federal judge and prosecutor. The defendant also requested that the hit-man cut off their heads in exchange for a “bonus.” Law enforcement authorities learned of the plot in August 2012 from another inmate at the Nassau County Correctional Center where Romano was being held. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Romano and co-conspirator, Dejvid Mirkovic, numerous times at locations on Long Island, including the Correctional Center.
At the first meeting, Romano offered to pay one of the undercover officers $3,000 to assault an individual with whom he had a financial dispute. Co-conspirator Mirkovic then met with one of the undercover officers and paid him $1,500 as a down payment for the assault. After one of the undercover officers showed proof of the purported assault of the intended victim - in fact, a staged photograph and an identification card - Mirkovic paid the undercover officer the $1,500 balance.
Later that same day, Mirkovic again met with the undercover officer, relayed Romano’s instructions to murder the federal judge and prosecutor, and offered $40,000 for the commission of the two murders. In addition, Mirkovic indicated that Romano wanted the federal judge and prosecutor beheaded and the body of the prosecutor mutilated, and that he was willing to pay extra for those services. Over the following weeks, the undercover officer received $22,000 in cash down payments for the murders and was promised payment of the final $18,000 when the murders were completed. At the time of the arrests of Romano and Mirkovic on October 9, 2012, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun at Mirkovic’s residence in Lake Worth, Florida.
In March 2013, Dejvid Mirkovic pleaded guilty to conspiracy to murder was sentenced to 24 years in prison in August 2013.
Today’s conviction was the latest development in an investigation handled by Special Agents and Task Force Officers of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.
Romano Ind
United States Attorney Honors Officer David Moore with Third Annual Impd Ride-alongRead the Press Release
Hogsett says protecting law enforcement officers remains top priority in 2014
INDIANAPOLIS -- Joseph H. Hogsett, the United States Attorney, marked the third anniversary of Indianapolis Metropolitan Police Department Officer David Moore by spending time this afternoon with Moore’s fellow North District officers on their patrol duties. This marks the third consecutive year that Hogsett has ridden with officers as part of the U.S. Attorney’s continued commitment to protecting Indiana’s law enforcement community.
“We all have an obligation to honor the legacy of fallen heroes like Officer Moore by doing everything possible to protect Indiana’s law enforcement community,” Hogsett said. “In ride-alongs here in Indianapolis and across the state, I have heard of the serious threats posed by illegally-armed felons. That is why the United States Attorney’s Office has been aggressive in holding accountable anyone who is found to have played a role in violence against a police officer.”
In the days following the shooting of Officer Moore, investigators discovered that a local man named Eric “Boo” Jenkins provided a loaded Bersa .380 caliber semiautomatic handgun to convicted felon Thomas Hardy. The illegally-armed Hardy subsequently shot IMPD Officer Moore numerous times with that firearm. Jenkins was charged by federal prosecutors with illegally possessing the firearm in question, and he was convicted and sentenced to 57 months in prison.
Hogsett noted that in recent years, Indiana has seen other acts of violence against law enforcement officers. In July 2011, Terre Haute Police Officer Brent Long was gunned down by an illegally-armed felon who later took his own life. In December 2011, IMPD Officer Dwayne Runnels was shot by a convicted felon during a routine traffic stop. And just last year, IMPD Officer Rod Bradway was killed in the line of duty.
In each of these cases, federal prosecutors worked with local law enforcement partners under the U.S. Attorney’s Violent Crime Initiative (VCI) to hold accountable those who had contributed to the acts of violence. Launched in March 2011, the VCI has produced a dramatic increase in the number of gun related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly two years since, more than 200 defendants have been charged. In the case of Officer Long’s death, state law did not provide an effective path of prosecution against those who were collaterally involved. As a result, seven people who might otherwise have walked away from the tragedy were charged with various federal offenses, including providing false statements to law enforcement and illegally providing the firearm used in the shooting. All pleaded guilty.
Similarly, Hogsett announced last year the federal indictment of Tarus E. Blackburn, Jr., age 23, of Indianapolis, who purchased a firearm for a convicted felon who, two months later, used the weapon to shoot Officer Runnels. Blackburn pleaded guilty and was sentenced to serve a year in federal prison in September 2012.
U.S. Attorney's Office Filed More Than 200 Firearms Indictments Last YearRead the Press Release
The United States Attorney’s Office for the Northern District of Ohio filed 207 illegal firearms indictments last year, U.S. Attorney Steven M. Dettelbach announced.
“This office and our law enforcement partners continue working around the clock to enforce our nation’s firearms laws,” Dettelbach said. “We will continue to go after the worst of the worst -- those who tote firearms and ammunition, despite prior felony convictions, as well as unlicensed dealers, straw purchasers and others who break the law.”
“Combating violent crime and protecting the public is ATF’s top priority,” said Alden J. Fry, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division. “By focusing our efforts on impacting violent crime in our communities, ATF agents are getting guns out of the hands of violent criminals in order to make our neighborhoods safer.”
Broken down by geography in the district, the most indictments filed came out of the Cleveland office, with 103. That was followed by the Youngstown office (60), Akron office (23) and Toledo office (21).
There were 172 defendants sentenced last year for firearms crimes and the average sentence was nearly six years in prison (68.2 months).
Details of selected cases:
U.S. v. Torrence
Canton resident Renard Torrence pleaded guilty to 12 counts in December – one count of dealing firearms without a license and 11 counts of theft of firearms from federal firearms licensees. Torrence stole 11 firearms last year from dealers in Medina, Wooster, Sugarcreek, Canton, Strasburg, Canal Fulton, Cuyahoga Falls, Chester Township, Carrollton, New Philadelphia and Ravenna. He is scheduled to be sentenced in March.
Warren Operation
More than 150 firearms were seized as part of an investigation that resulted in charges against 55 people for violations of federal firearms and narcotics laws in April. An additional 42 people were charged in state court. In just one example, Lewis Powell of Warren was indicted for illegally possessing 14 firearms, as well as body armor and weapons with obliterated serial numbers, as part of a conspiracy that brought heroin and cocaine from Detroit to Warren.
U.S. v. Schmidt
Richard Schmidt, of Toledo was sentenced to nearly six years in prison after pleading guilty to a variety of firearms charges after investigators found him in possession of 18 firearms, body armor and more than 40,000 rounds of ammunition, despite a previous manslaughter conviction.
U.S. v. Romero
Jose Romero, of Lorain, was sentenced in September to nearly seven years in prison after previously pleading guilty to possessing 40 rifles, pistols and revolvers despite a 2005 conviction for domestic violence which precluded him from having firearms.
Firearm prosecution statistics for calendar year 2002 through 2013 are as follows:
2002: 117 indictments
2003: 155 indictments
2004: 184 indictments
2005: 220 indictments
2006: 187 indictments
2007: 191 indictments
2008: 157 indictments
2009: 156 indictments
2010: 166 indictments
2011: 218 indictments
2012: 176 indictments
2013: 207 indictments
Two Members of Altamont Global Partners Sentenced to 9 Years in Federal Prison for $17 Million Investment FraudRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Philip Leon (68, Altamonte Springs) and John G. Wilkins (54, Chuluota) to 9 years in federal prison, respectively. The sentences were handed down in connection with their roles in a conspiracy to commit mail fraud and wire fraud. In addition, Leon and Wilkins were ordered to pay over $17 million in restitution to more than 200 victims, and to forfeit over $4 million in artwork and monies that are being held in various banks and trading accounts, which will be returned as partial payment to victims.
Leon pleaded guilty on November 6, 2013. Wilkins pleaded guilty to the charges against him on August 22, 2013.
According to court documents, Altamont Global Partners, LLC owned or managed a series of investment funds. Leon registered Altamont Global with the Florida Secretary of State in March 2009 and was a managing member of the company. Wilkins joined Altamont Global in 2009, later becoming one of its managing members.
The Matterhorn Fund, LLC was the first fund for which investors were solicited by Altamont Global, with Leon serving as the fund’s manager. To induce individuals to invest, Leon, Wilkins, and others falsely represented that the Matterhorn Fund had a long history of making profits, that Leon was a graduate of Stanford University, that he worked for Salomon Brothers as an institutional investment advisor, and that he had successfully traded worldwide investment vehicles for over three decades. None of those representations were true.
In the first quarter of 2010, the Matterhorn Fund experienced significant trading losses. Rather than accurately reflect those losses on the quarterly statements, Leon and Wilkins decided to falsify the quarterly statements and to falsely claim that the Matterhorn Fund was earning an above-market rate of return. The false rates of returns that were claimed for the Matterhorn Fund were then used to induce individuals to invest in the McKinley Fund. The McKinley Fund also lost money, and Leon and Wilkins decided to falsify the quarterly statements for that fund. The conspirators then used their alleged performance with the Matterhorn and McKinley Funds to solicit investments in two other funds: Midas Management Partners, LLC and Binary Strategy One Fund, LLC. In total, over 200 individuals invested more than $17 million in the four funds owned or managed by Altamont Global.
In June 2012, the National Futures Association (NFA) conducted a surprise examination of Altamont Global. During that examination, the NFA discovered that the quarterly statements were being falsified to hide losses and that the net asset values of the Matterhorn Fund and the McKinley Fund were being inflated to make it appear that trading had been successful.
On July 16, 2012, the U.S. Commodity Futures Trading Commission filed a complaint against Leon, Wilkins, and others. The District Court entered an emergency order that same day, freezing the assets of the defendants in that civil case.
These cases were investigated by the United States Secret Service and the State of Florida, Office of Financial Regulation. They were prosecuted by Assistant United States Attorney Roger B. Handberg.
Two California Men Arrested for Email Hacking Scheme That Yielded Nude Photos That Were Posted on 'Revenge Porn' WebsiteRead the Press Release
LOS ANGELES – The FBI arrested two men this morning for allegedly conspiring to hack into victims’ e-mail accounts to steal nude photos that were later posted on the “revenge porn” website isanyoneup.com.
Hunter Moore, 27, of Woodland, who operated isanyoneup.com, and Charles Evens, 25, of Studio City, were arrested without incident by special agents with the FBI. Both men are expected to make initial court appearances this afternoon – Moore in federal court in Sacramento, and Evens in United States District Court in Los Angeles.
Moore and Evens are charged in a 15-count indictment unsealed after they were arrested this morning. The indictment charges both men with conspiracy, seven counts of unauthorized access to a protected computer to obtain information and seven counts of aggravated identity theft.
According to the indictment, Moore operated the website http://isanyoneup.com, where he posted, among other things, nude or sexually explicit photos of victims. The pictures were submitted without the victim’s permission for purposes of revenge. However, to obtain more photos to populate the site, Moore allegedly instructed Evens to gain unauthorized access to – in other words, to hack into – victims’ e-mail accounts. Moore sent payments to Evens in exchange for nude photos obtained unlawfully from the victims’ accounts. Moore then posted the illegally obtained photos on his website, without the victims’ consent. The indictment alleges that Evens hacked into email accounts belonging to hundreds of victims.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, Moore and Evens face up to five years in federal prison for each of the conspiracy and computer hacking counts. The charge of aggravated identity theft carries a mandatory two-year sentence to run consecutive to any other sentence imposed in the case.
The investigation that led to this morning’s arrest of Moore and Evens was conducted by the Federal Bureau of Investigation.Release No. 14-008
Twin Brothers Each Sentenced to 13 Years on Drug and Firearm ChargesRead the Press Release
NORFOLK, Va. – Matthew Vincent Deparasis, 30, of Virginia Beach, was sentenced today to 156 months in prison, followed by five years of supervised release for maintaining drug-involved premises and on firearm charges.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s Washington Office, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
Deparasis pled guilty on September 26, 2014. According to court documents, Deparasis and his twin brother, Nicholas, sold heroin, cocaine, crack cocaine, and firearms from various drug-involved premises, including an 11th Street apartment in Virginia Beach. The Deparasis brothers used and maintained the various premises from February of 2010 to approximately May of 2014.
Nicholas Deparasis pled guilty on September 25, 2014 and was sentenced on January 21, 2015, to 96 months in prison on the drug conspiracy charge, and sentenced to an additional 60 months in prison for the charge of possessing a firearm in furtherance of, and using and carrying firearms during and in relation to, one or more drug trafficking crimes.
This case was investigated by the Drug Enforcement Administration, with the assistance of the Virginia Beach Police Department. Assistant U.S. Attorney Kevin Comstock prosecuted the case on behalf of the United States. A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-85Tweet
Timeshare Owners Re-Victimized by Florida Telemarketer Promising Court Ordered Restitution Checks for an Advanced FeeRead the Press Release
Rance White, 25, of West Palm Beach, Florida, was indicted by a federal grand jury in East St. Louis for participating in a "recovery scheme," a scheme to re-victimize timeshare owners who had already been victimized in a timeshare resale fraud, through the false promise of a restitution award, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. The indictment contains a single count of conspiracy to commit mail and wire fraud.
In a timeshare resale scam, timeshare owners are contacted by someone who claims to have a buyer for the person’s timeshare property. In exchange for an upfront fee (typically in excess of $1,000), the telemarketer promises that the sale will be finalized within a certain period of time and that a check for the sale price (typically in excess of $20,000) will then be delivered to the customer. No sale ever occurs, and the fraudulent company simply pockets the money. Thousands of timeshare owners across the country have fallen victim to this scam.
South Florida is a hotbed for timeshare resale fraud, and in recent years, several major timeshare resale operations located in Palm Beach County, Florida, have been investigated and prosecuted in the Southern District of Illinois, including companies called Universal Marketing Solutions (UMS), Creative Vacation Solutions (CVS), and American Marketing Group (AMG). One of the most publicized of these prosecutions was the case against former CVS CEO Jennifer Kirk: United States v. Kirk, No. 3:11-CR-30093-GPM. Kirk was sentenced to 188 months imprisonment but victims were unable to be made whole, thus creating the opportunity for the instant alleged scam.
Since July 31, 2012, timeshare resale victims across the country have been contacting the United States Attorney’s Office and/or the United States Postal Inspection Service in the Southern District of Illinois to report having been contacted by telephone by someone claiming that they (the victims) were entitled to a restitution award specifically designated for victims of timeshare resale fraud, including victims of UMS, CVS, and AMG. Some victims received email messages after the initial contact by telephone.
The indictment alleges that by way of scam e-mails, from the late summer and fall of 2012, victims were told they were entitled to a settlement in the case of the State of Florida vs. Jennifer Kirk or the State of Florida vs. Jeff George.1 These e-mails also gave the name of an attorney who supposedly works in the “Economic Crimes Division,” of the 15th Circuit Court in Palm Beach County, Florida, and whom the victim is told to contact in order to obtain the promised restitution. The e-mails state that an advance fee, typically several hundred dollars, is required in order to “claim and release your package.” Victims who called the phone number listed were told that the fee needed to be sent via Western Union or MoneyGram.
In August 2012, the indictment alleges, a U.S. Postal Inspector, acting in an undercover capacity on behalf of a victim contacted by the scam, sent undercover funds totaling $129 to pay the requested fees via Western Union from Fairview Heights, Illinois. The first attempt to collect the fees were at a Western Union outlet at a West Palm Beach, Florida Publix grocery store later in the day on August 2, 2012, but the transaction could not be paid out because of an incorrect answer to the test question. The payment was subsequently picked up on August 3, 2012, at a check cashing store in West Palm Beach, Florida. The indictment alleges that Publix maintained photographs of the person who attempted to pick up that fraud transaction as well as a separate Western Union payment at the same store the next day.
If convicted, the defendant is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
The investigation was conducted by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The prosecution is being handled by Assistant United States Attorneys Bruce E. Reppert and William E. Coonan.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Tarkio, Missouri Resident Sentenced to Prison for Stealing Bank FundsRead the Press Release
COUNCIL BLUFFS, IA - On January 22, 2014, Tiffany Ann Stanley, a 40 year old resident of Tarkio, Missouri, previously of Shenandoah, Iowa, was sentenced by United States District Court Judge Stephanie Rose to four months in prison, followed by four months of home confinement, and four years of supervised release for theft by a bank employee, announced United States Attorney Nicholas A. Klinefeldt.
On June 6, 2013, Stanley pled guilty to the charge which was the result of an investigation conducted into a reported bank robbery of the Great Western Bank of Riverton, Iowa. On November 17, 2012, Stanley reported to the Fremont County Sheriff’s Office, that she was forced to give money to a male robber. The investigation showed that Stanley was not robbed, but reported the robbery to cover her stealing of bank funds during the course of her employment as a teller.
As part of her sentence, Stanley was ordered to pay $25,166.40 in restitution to the Great Western Bank.
The investigation was conducted by the Fremont County Sheriff’s Office and the Federal Bureau of Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
St. Louis Man Pleads Guilty to “Hobbs Act” RobberyRead the Press Release
Case is One of Many Brought as a Result of United States Attorney Wigginton’s Metro-East Armed Robbery Initiative
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today, that on January 23, 2014, Carvin G. Brooks, a 33-year old St. Louis, Missouri, man pled guilty in federal district court, in East St. Louis, Illinois, to an indictment charging him with one count of “Hobbs Act Robbery.” The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery. Brooks will be sentenced on April 24, 2014, where he faces a maximum potential sentence of 20 years’ imprisonment and/or a fine of up to $250,000, followed by a term of 3 years of supervised release, and a $100 mandatory special assessment.
On October 9, 2013, Brooks entered the BP Gas Station and Convenient Mart in Cahokia, Illinois, demanding money from the cashier. Brooks physically assaulted a female clerk, punching her several times on the head with his closed fist, before finally taking approximately $300 from the register. The clerk received medical treatment for the injuries she sustained.
A tip from Crimestoppers led to Brooks’ arrest. This case was investigated by detectives from the Cahokia Police Department and prosecuted by Special Assistant United States Attorney Neal C. Hong.
Six Defendants Charged in Three Separate Immigration Schemes Involving Abuse of Undocumented AliensRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), announce the filing of federal charges against six defendants in three separate cases. The cases announced today involve immigration scams that highlight fraud and abuse facing undocumented aliens living in South Florida.
“The immigration schemes alleged in these cases targeted the perceived, but oftentimes real, vulnerabilities of immigrants,” said U.S. Attorney for the Southern District of Florida Wifredo Ferrer. “Immigrants need to be aware that there are notarios and employers who prey on these vulnerabilities by making promises they do not keep and threats aimed to exploit. These schemes are intolerable. The United States Attorney’s Office is committed and stands united with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Citizenship and Immigration Services to combat such fraud.”
“I urge individuals who wish to obtain legal citizenship or status to beware of notario fraudsters. These individuals will prey on their victims’ vulnerabilities, and in the end, no one wins,” said Alysa D. Erichs, Special Agent in Charge of HSI Miami. “HSI will continue to investigate document and benefit fraud that threatens our legal immigration system.”
“USCIS has zero tolerance for immigration fraud,” said Linda Swacina, Director for the USCIS Miami District. “Our employees are committed to detecting and cooperating with other agencies to combat fraud and will continue to equip applicants and legal service providers with the tools they need to detect and protect themselves from fraud. Anyone considering immigration fraud should understand our commitment to ensuring the integrity of our nation’s immigration system.”
The cases announced today include:
1. United States v. Iris Mira Probkevitz, et al., Case No. 14-20036-Cr-Martinez
Defendants Iris Mira Probkevitz, 57, of Aventura, and Jose Antonio Polledo Alfonso, 50, of Miami Beach, were charged in a ten-count indictment with one count of conspiracy to commit mail and wire fraud, five counts of mail fraud, two counts of wire fraud, one count of knowingly presenting an immigration application containing false information, and one count of knowing concealment of a material fact in a Green Card application.
According to allegations in the indictment, Probkevitz and Polledo Alfonso submitted immigration applications for undocumented aliens seeking immigration benefits in the United States but then defrauded them for additional sums of money beyond the original, negotiated payment amount once the application was filed. During the course of this scheme, the defendants falsely claimed to be employees of federal agencies, including at times the USCIS and at times the Federal Bureau of Investigation. The defendants also falsely claimed that Probkevitz was an immigration lawyer. Additionally, the defendants submitted applications with fraudulent information to USCIS purportedly on behalf of the undocumented aliens, directed mail from USCIS that was intended for the aliens to be delivered to the houses of the defendants, controlled the mail, and then charged the undocumented aliens money for the mail. On occasion, when undocumented aliens refused to pay the defendants’ escalating demands for money, the defendants sent a letter to USCIS falsely purporting to be from an alien or the alien’s spouse seeking a withdrawal of the immigration application.
In some instances, the defendants’ scheme involved threats. In one instance, an undocumented alien with initials “R.H.H.” and her spouse complained to the defendants about the defendants’ demands for additional sums of money and the defendants’ control of their mail from USCIS. In response, Polledo Alfonso told R.H.H. that he would put cement on her feet and throw her into the water if she complained to authorities about the defendants. In another instance, Probkevitz threatened to deport an undocumented alien with initials “A.W.” if she did not pay an additional sum of money. Moreover, after an alien with initials “M.S.” refused to pay additional sums, Polledo Alfonso showed M.S. what appeared to be a U.S. Customs credential and told M.S. that it was his job to arrest aliens like M.S.
This case is being prosecuted by Assistant U.S. Attorney Robert Emery.
2. United States v. Maria Ester Monzon, et al., Case. No. 14-60010-Cr-Cohn
Defendants Maria Esther Monzon Roque, 55 of Lauderhill, Maria Cristina Ramirez De La Piscina Pena, 56, of Lauderhill, and Julian Roman Ramirez De La Piscina Pena, 57, of Lauderhill, were charged in a two-count indictment with conspiring to harbor illegal aliens, and one count of harboring an illegal alien with initials “M.D.”
The indictment alleges that the defendants worked together to own and operate the Inverarry Resort Hotel Condominium, and hired illegal aliens without asking them for employment authorization cards or other forms of required documentation. Additionally, the defendants had illegal alien employees sign forms claiming they were independent contractors and paid them in cash.
In November 2007, M.D. suffered a work-related injury. When M.D. returned to Inverarry after her hospitalization, the defendants threatened to turn M.D. and M.D.’s family over to immigration officials if M.D. caused any problems for the hotel or asked the defendants to pay her medical bills. They further told M.D. to leave and refused to pay her overdue wages.
This case is being prosecuted by Assistant U.S. Attorney Jamie Galvin.
3. United States v. Cecilia Alejandra Rodriguez Rivas, Case No. 14-2082-mj-McAliley
Defendant Cecilia Alejandra Rodriguez Rivas, 32, of Miami, was charged in a criminal complaint with making and using false documents in matters within the jurisdiction of the Department Homeland Security.
According to the criminal complaint, Rodriguez Rivas is a notary public who owns and operates an immigration services business called Rodriguez Universal Services LLC. Rodriguez falsely stated that she was an attorney and submitted altered income tax returns and forged documents to USCIS.
This case is being prosecuted by Special Assistant U.S. Attorney Timothy Cole.
If anyone has information about this fraud or has been a victim of the fraud, please call the toll-free hotline at 1-866-DHS-2-ICE.
Mr. Ferrer commended the investigative efforts of ICE-HSI and USCIS.
An indictment or complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Sioux Falls Man Convicted of 26 Investment Fraud FeloniesRead the Press Release
United States Attorney Brendan V. Johnson announced that Randal Kent Hansen, age 65, of Sioux Falls, South Dakota, was found guilty on January 22, 2014, of conspiracy to commit wire and mail fraud, four counts of wire fraud, and 21 counts of mail fraud, as a result of a federal jury trial in Sioux Falls, South Dakota.
“Randy Hanson’s and his co-conspirators' multi-million dollar scam cost many victims their life’s savings. We are pleased with the verdict and applaud the work of law enforcement which put together a very complicated case. We hope the victims of this fraud find some vindication in knowing that the conspirators have been brought to justice,” said U.S. Attorney Brendan Johnson.
The convictions each carry a maximum penalty of twenty years in custody and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Hansen will also be required to pay restitution to his victims.
Hansen was indicted by a federal grand jury on May 8, 2013 for conspiracy to commit wire fraud and mail fraud, wire fraud and mail fraud.
The case involved the investigation of a hedge fund known as RAHFCO Funds, Limited Partnership and RAHFCO Growth Fund. As president of the fund, Randy Hansen collected money from over a hundred investors that totaled over $20 million dollars. Investors were told that only a small portion of the money was supposed to be used to make trades on the futures market for the S&P 500, that the rest was securely invested in government securities, and that they could withdraw funds at will. The fund operated from 2007 until April 2011 when one of Hansen’s co-conspirators turned himself into authorities. The investigation revealed that the fund was operating in a Ponzi-like fashion with new investor money being used to pay off older investors seeking to withdraw funds. Ultimately, investor losses have exceeded $10 million.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
A presentence investigation was ordered and a sentencing date has been set for April 28, 2014. The defendant was released pending sentencing.
Sentencing for January 21 - 22, 2014Read the Press Release
Jorge Jose Diaz-Botello, 24, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 22, 2014, for three counts of being a felon in possession. He received eight months imprisonment, to be served consecutively to the 92-month sentence imposed for his previous conviction of distributing methamphetamine. Diaz-Botello was also ordered to pay a $300.00 special assessment and will be placed on three years of supervised release after his term of imprisonment. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Roman Georgiyevich Kvinikadze, 32, of Moscow, Russia, was sentenced by Federal District Court Judge Alan B. Johnson on January 21, 2014, for attempt to unlawfully export United States’ munitions. Kvinikadze was arrested in Jackson, Wyoming. He received time served, was placed on three years of supervised release, and was ordered to pay a $7,500.00 fine and a $100.00 special assessment. Kvinikadze was also ordered to leave the United States immediately. This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations.
Christopher Rocco Vigil, 27, of Evans, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 21, 2014, for conspiracy to distribute methamphetamine. Vigil was arrested in Cheyenne, Wyoming. He received 168 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ross Man Sentenced to Prison for Cashing Dead Mother’s Social Security Benefit for 39 YearsRead the Press Release
PITTSBURGH – A Ross Township man was sentenced today in federal court to 18 months in prison, two years supervised release and restitution of $302,803.16 on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
United States District Court Judge Mark R. Hornak imposed sentence upon Chauncey Clinton, 65.
According to information presented to the court, Clinton received and used the Social Security Title II benefits that continued to be issued to his mother, Clara Clinton, after her death on May 7, 1973. From June 1, 1973 to April 3, 2012, Clinton received $304,853.00 in Social Security Administration funds to which benefits he knew he was not entitled.
Prior to imposing sentence, Judge Hornak took into consideration the serious nature of the defendant’s crime, including the fact that the defendant wrongfully took benefit monies totaling over $300,000 for almost 39 years.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Special Agents of the Social Security Administration, Office of Inspector General, who conducted the investigation that led to the successful prosecution of Clinton.
Rockville Man Sentenced in Mortgage Fraud SchemeRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Edgar Galdamez, age 37, of Rockville, Maryland, today to 18 months in prison followed by three years of supervised release for wire fraud in connection with a mortgage fraud scheme. Judge Messitte entered an order that Galdamez pay $515,000 in restitution and forfeiture, the amount of loss resulting from the scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea, from at least September 2006 through May 2007, Galdamez and others contacted individuals who wished to purchase homes as investment properties. Galdamez and others prepared and submitted false loan applications in the buyers' names to the lending institution to qualify these individuals for loans that they otherwise were unqualified to obtain. For instance, they typically inflated the buyer=s income and omitted liabilities. They also falsely stated that the purpose of the property was to be the borrowers= primary residence in order to receive a lower interest rate. Galdamez knew that the property was intended to be used as an investment property. These residential mortgages were destined to fail because the borrowers did not have the income or assets to make the necessary mortgage payments. Galdamez and others profited from these fraudulent transactions by collecting origination fees, commissions and broker's fees from each loan that closed.
As a result of the fraud scheme, the lender lost $515,000.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
Remarks as Prepared for Delivery by Attorney General Eric Holder at the Roanoke Veterans Treatment Court ProgramRead the Press Release
Roanoke, Va.
AG
(202) 514-2007
TTY (866) 544-5309
January 23, 2014Thank you, Tim [Heaphy] – and good morning, everyone. It is a pleasure to be in Roanoke today. And it’s a privilege to hear directly from so many criminal justice leaders about the critical work you’re doing to build stronger, safer communities.
I want to thank Judges [Robert] Ballou and [Michael] Urbanski – and their colleagues here in the Western District – for their leadership from the bench. As we’ve just heard, your shared commitment to innovation, and your fidelity to the highest ideals of our justice system, are helping to transform the lives of veterans who have been charged with nonviolent misdemeanors.
I also want to acknowledge the outstanding work of U.S. Attorney [Tim] Heaphy and every one of his Assistant U.S. Attorneys and support staff members – along with their counterparts from the Federal Public Defender’s Office and the United States Probation Office. By coming together in a non-adversarial manner – and working together to protect public safety, to advocate for the interests of the community, and to evaluate the needs of individual participants in this Veterans Treatment Court – you’re demonstrating the unique power of collaboration when it comes to addressing the root causes of criminal conduct. And alongside dedicated Veterans Justice Outreach Specialists and others from the Salem Veterans Affairs Medical Center, you’re connecting those who have served our nation with the resources and support they need to overcome substance abuse disorders and to receive treatment for mental health concerns.
Since its inception just over two years ago, this Veterans Treatment Court has shown tremendous promise in helping eligible men and women to break the destructive cycle of criminality and incarceration that traps too many people and weakens too many communities across America. By offering alternatives to incarceration – and linking participants with vital rehabilitation and treatment resources – this program provides a model for preventing recidivism, reducing relapse, and empowering veterans convicted of certain nonviolent crimes to rejoin their communities as productive, law-abiding members of society. It’s also saving resources at a time when they could not be more scarce.
For President Obama – and for me – strengthening programs like this one, and building on work that’s underway in similar diversion and reentry programs throughout the nation, has always been a top priority. As we’ve said many times before: we will never be able to arrest and incarcerate our way to becoming a safer nation.
That’s why – this past August – I unveiled a new “Smart on Crime” initiative that will drive the Justice Department’s efforts to reform America’s criminal justice system as a whole. As a central part of this initiative, we’ve enhanced our focus on diversion programs. And I have directed every U.S. Attorney to designate a Prevention and Reentry Coordinator in his or her office.
I’ve also instituted highly-targeted reforms – including a significant modification of the Justice Department’s charging policies – to ensure that individuals accused of certain low-level federal drug crimes will no longer face excessive mandatory minimum sentences that are out of proportion with their alleged conduct, and serve no deterrent purpose. These changes, coupled with programs like this one, will improve criminal justice outcomes while reducing the burden on our overcrowded prison system. They will make our expenditures both more efficient and more effective. And they can pave the way for additional improvements and legislative changes that can take this work to a new level – provided that leaders in Washington seize the opportunity to come together and do even more.
That’s why – today – I am urging Congress to pass common-sense reforms like the bipartisan Smarter Sentencing Act – introduced by Senators Dick Durbin and Mike Lee – which would give judges more discretion in determining appropriate sentences for people convicted of certain federal drug crimes. This bill would also provide a new mechanism for some individuals – who were sentenced under outdated laws and guidelines – to petition judges for sentencing reductions that are consistent with the Fair Sentencing Act passed by Congress in 2010.
These reforms would advance the goals of the “Smart on Crime” initiative – and efforts like this Veterans Treatment Court – by fundamentally improving policies that exacerbate, rather than alleviate, key criminal justice challenges. Such legislation could ultimately save our country billions of dollars while keeping us safe. And it’s becoming clear – thanks to Senators Durbin and Lee, along with Senators Patrick Leahy and Rand Paul – that this type of approach enjoys broad, bipartisan support on Capitol Hill.
I look forward to working with members of both parties to refine and advance these proposals in the days ahead. And I pledge my own best efforts – and those of my colleagues throughout the Justice Department – to continue to strengthen America’s criminal justice system and working with leaders like you to keep building the more just society that everyone in this country deserves.
I understand, as you do, that significant challenges lie ahead, and the journey before us will be anything but easy. But that’s exactly why I wanted to be here today: to call attention to the great work you’re leading. To encourage you to keep moving our system forward. And to join you in striving not only to transform lives, but to improve your communities, strengthen your country – and support those who have served in uniform.
I commend you for your dedication to these efforts. I wish you all the best as you continue this important and innovative program. And I thank you, once again, for inviting me to be here today.
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Philadelphia Man Charged in Financial Fraud and Tax SchemeRead the Press Release
Leonard Stango, 66, of Philadelphia, PA, was charged today by Indictment with aggravated structuring of financial transactions and filing false tax returns, announced United States Attorney Zane David Memeger. It is alleged that between 2006 and 2009, Stango participated in a sports bookmaking operation in which he received over $5 million in proceeds from bettors. The indictment charges that Stango then withdrew approximately $2.5 million in amounts of $10,000 or less in order to avoid his banks’ currency transaction reporting requirements. It is alleged that Stango did not report any income from his bookmaking activities on his federal income tax returns for 2006 through 2008, and as a result he underreported his income in each year by several hundred thousand dollars.
If convicted, the defendant faces a maximum possible sentence of 22 years of imprisonment, threeyears of supervised release, a $900,000 fine, a $500 special assessment, and criminal forfeiture.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.
1An Indictment/ Information/Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Business Owner Charged with BriberyRead the Press Release
Cua Thach, 31, of Philadelphia, PA, was charged by Indictment in a bribery scheme, announced United States Attorney Zane David Memeger. According to the indictment, Thach offered $1,500 in bribes to an Investigator of the United States Department of Labor, Wage and Hour Division, who was investigating Thach’s company, CNS Agency, Incorporated.
If convicted, Thach faces a maximum possible sentence of 15 years in prison, a $250,000 fine, three years of supervised release and a $100 special assessment.
The case was investigated by the United States Department of Labor Office of Inspector General, the Federal Bureau of Investigation, and the Department of Labor Wage and Hour Division. It is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
Click here to view the indictment
An Indictment/Information/Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Owners of Durable Medical Equipment Companies Sentenced to 54 Months in Prison for Their Roles in A Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
– Operated sham medical supply companies in Louisville
– Supplies billed to Medicare included deceased patientsLOUISVILLE, KY – The former owners of two, now defunct durable medical equipment companies were sentenced to 54 months in prison, and ordered to pay $1,940,043.84 in restitution, by U.S. District Judge John G. Heyburn II, for conspiracy, health care fraud, submitting false claims and wire fraud announced David J. Hale, United State Attorney for the Western District of Kentucky.
Yunior Lopez, age 36, of Miami, Florida and Arturo Esquivel, age 42, of Hialeah, Florida, through their corporations, Universal of Work Services and Steel Quality Medical, submitted false and fraudulent claims totaling approximately $4 million, to Medicare Services, for products which were not authorized and were not provided to patients. Between September 2007 through November 2008, Lopez and Esquivel submitted claims on behalf of Florida patients, living and deceased, who were purportedly treated by Kentucky physicians, when in fact neither the patients nor the physicians had any knowledge of one another.
Moreover, investigators learned that the products, including surgical dressings that were billed to Medicare, were never provided by Universal of Work Services and Steel Quality. Search warrants executed on Universal of Work Services located on Bishops Lane, and Steel Quality Services, Inc. located on Envoy Circle, found both businesses were almost devoid of any products it claimed to have been providing. Further, Lopez and Esquivel concealed their ownership in the companies by enlisting “nominee” owners. Lopez and Esquivel were charged in a 13 count federal indictment on August 1, 2011, and were sentenced Friday, January 17, 2014.
The case was prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and it was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
Owner of Houston Medical Equipment Companies Indicted for $3.4 Million Medicare Fraud SchemeRead the Press Release
Huey P. Williams Jr., the owner and operator of two durable medical equipment (DME) companies, was arrested yesterday for his alleged role in a $3.4 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of the Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
The indictment charges Williams, 44, of Katy, Texas, with one count of health care fraud, which carries a maximum penalty of 10 years in prison upon conviction. Williams is expected to make his initial appearance in U.S. District Court for the Southern District of Texas in Houston.
According to the indictment, Williams orchestrated and executed a scheme to defraud Medicare beginning in 2006 and continuing until July 2010. Williams allegedly submitted false and fraudulent claims to Medicare through his Houston-area DME companies – Hermann Medical Supplies Inc. and Hermann Medical Supplies II (Hermann Medical) – which purported to provide orthotics and other DME to Medicare beneficiaries.
Hermann Medical allegedly submitted claims to Medicare for DME, including orthotic devices, which were medically unnecessary and/or never provided. Many of the orthotic devices were components of an arthritis kit and were purported to be for the treatment of arthritis-related conditions. From December 2006 through July 2010, Williams submitted claims of approximately $3.4 million to Medicare.
An indictment is merely a formal accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, HHS-OIG and MFCU and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Trial Attorney Ashlee Caligone McFarlane of the 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 & 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 .Orange Park Man Sentenced to 7 Years in Prison for Receipt of Child PornographyRead the Press Release
Jacksonville, FL – U.S. District Judge Timothy Corrigan yesterday sentenced Randy Michael Jackson (40, Orange Park) to seven years in federal prison for receipt of child pornography. Jackson was indicted on February 20, 2013. He pleaded guilty to the offense on July 15, 013.
According to court documents, in February 2013, special agents with the Federal Bureau of Investigation (FBI) executed a search warrant at Jackson’s home, in Orange Park, and seized his computer. A forensic review of Jackson’s computer revealed that he had downloaded approximately 25,000 images and 500 hundred videos of children, as young as toddlers, engaged in sexually explicit conduct with adults.
This case was investigated by Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Malisa Chokshi.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
New York Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A New York City man pleaded guilty in federal court to violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Tyrone Parker, 53, of New York, NY, pleaded guilty yesterday to one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine before Senior United States District Judge Gustave Diamond. The Court learned that Parker, in the fall of 2012, agreed to provide a Pittsburgh-based confidential source with cocaine and heroin. On Dec. 6, 2012, Parker, acting together with co-defendant James Gray, drove two kilograms of cocaine towards Pittsburgh. The cocaine had been placed in Gray’s van. Both Parker and Gray were subject to traffic stops by Pennsylvania State Troopers, and found inside of Gray’s van was the agreed upon two kilograms of cocaine. James Gray has pleaded not guilty to the conspiracy charge against him.
The law provides for a maximum total sentence for Parker of not less than 10 years and up to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Judge Diamond scheduled sentencing for May 21, 2014.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Tyrone Parker.
New Jersey Man Pleads Guilty to Making False Statements to HUDRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 65-year-old New Jersey resident pleaded guilty today in Wilkes-Barre before U.S. Magistrate Judge Karoline Mehalchick to making false statements and representations in connection with a Federal Housing Administration (FHA) insured mortgage with intent to defraud the Department of Housing and Urban Development.
According to United States Attorney Peter J. Smith, the defendant, Martin Sacci, of South Plainfield, New Jersey, admitted that he knowingly failed to disclose the existence of a second loan made to a borrower in an FHA-insured mortgage for a property located in Long Pond, Pennsylvania. Sacci admitted that he received and cashed payments on the undisclosed loan after the property was sold, and urged the borrower to refrain from disclosing the loan to investigators.
Sacci was charged as a result of an investigation by the Office of Inspector General of the Department of Housing and Urban Development (HUD).
Sacci faces up to one year in prison and a $100,000 fine. Sentencing will be scheduled after a pre-sentence report is completed.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****New Haven Man Pleads Guilty to Federal Escape ChargeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL BEVERLY, 37, formerly of New Haven, pleaded guilty today before Senior U.S. District Judge Ellen Bree Burns in New Haven to one count of escape from federal custody.
According to court documents and statements made in court, on January 29, 2009, BEVERLY received a federal sentence of 77 months of imprisonment for possession of ammunition by a convicted felon. On June 17, 2013, BEVERLY escaped from the Watkinson House Residential Reentry Center in Hartford where he was completing his sentence. He was apprehended approximately two weeks later by the U.S. Marshals Service and returned to custody.
Judge Burns has scheduled sentencing for March 4, 2014, at which time BEVERLY faces a maximum term of imprisonment of five years.
This matter was investigated by the U.S. Marshals Service and the New Haven Police Department, and is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
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(203) 821-3722 [email protected]New Haven Man Involved in Crack Distribution Ring Sentenced to 14 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES DICKERSON, also known as “Jim Jim,” 30, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 168 months of imprisonment, followed by eight years of supervised release, for his role in a crack cocaine distribution ring. On April 25, 2013, a after a four-day trial, DICKERSON was found guilty of conspiracy to distribute 28 grams or more of cocaine base (“crack cocaine”) and distribution of crack cocaine.
According to statements made in court and the evidence disclosed during the trial, this matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by Joseph Jackson, also known as “Mighty” and “M.I.,” and centered in the Newhallville section of New Haven and Hamden. The investigation revealed that Jackson used “young boys,” some of whom were still in high school, to distribute large quantities of crack cocaine.
In July and August 2010, DICKERSON was regularly intercepted over the wiretap arranging to meet one of Jackson’s associates at locations in Newhallville to purchase two “8-balls” (7 grams) of crack cocaine each time. DICKERSON then divided the crack into $20 baggies, which he sold to his own customers.
On October 13, 2010, DICKERSON was videotaped selling $300 worth of crack cocaine to an undercover police officer.DICKERSON, whose criminal history includes four felony drug convictions, has been detained since his arrest on November 16, 2010.
Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation. All have been convicted.
Joseph Jackson pleaded guilty and, on June 13, 2013, he was sentenced to 300 months of imprisonment.
This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration's New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also assisted the investigation.
This matter was prosecuted by Assistant U.S. Attorneys Robert M. Spector and Christopher M. Mattei.
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(203) 821-3722 [email protected]Munhall Man Sentenced to 90 Months in Prison for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH - A resident of Munhall, Pa., has been sentenced in federal court to 90 months imprisonment 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 four years of federal supervised release. United States District Judge Cathy Bissoon imposed the sentence yesterday on Ryan Harper, 37.
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, Harper conspired with others to distribute and possess with the intent to distribute 100 grams or more of heroin, a Schedule I controlled substance. Additionally, the indictment charged that, in March, 2013, Harper engaged in a controlled sale of heroin to a confidential informant. Harper had previously pled guilty to these charges contained in the Superseding Indictment.
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 Ryan Harper.