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9 January 2014
United States Attorney's Office for the Western District of Texas Collects More Than $15.7 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
The United States Attorney’s Office for the Western District of Texas (WDTX) collected $15,712,319.55 in criminal and civil actions in Fiscal Year 2013 announced U.S. Attorney Robert Pitman. Of this amount, $10,642,574.35 was collected in criminal actions and $5,069,745.20 was collected in civil actions.
Additionally, the Western District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $203,456,628.90 in civil actions pursued jointly. The WDTX, working with partner agencies and divisions, also collected over $8.6 million in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
“In addition to securing punishment for those who break the law, it's an important part of our mission to separate them from the profits of their misdeeds and return the money to its rightful owners, whether crime victims or taxpayers,” stated United States Attorney Robert Pitman.Notable FY 2013 WDTX collections include:
SAN ANTONIO - In April, the WDTX recovered $3,875,459.65 as part of a Health Care Fraud civil settlement with Caremark, Inc. This amount represents the federal share of a settlement between Caremark, the Federal government and the state of Texas. The payment was made to settle allegations that Caremark violated the False Claims Act by intentionally failing to properly process Medicaid claims for reimbursement under the Medicaid Third Party Liability statute;
EL PASO - In August, the WDTX recovered $2,855,791.04 in fines and restitution from Oswaldo Kuchle-Lopez for his role in a conspiracy to commit wire fraud by scheming to defraud the Export-Import Bank of the United States for loans purportedly involving construction vehicles and agricultural equipment destined for Mexico;
AUSTIN - In June, the WDTX collected $342,862.65 from Harris Eugene “Gene” Yarbrough, III, as part of his Court-ordered restitution of $2,150,688.26 based on his 2002 bank fraud conviction;
WACO - In August, the WDTX collected $187,556.69 in fines and restitution from High Performance Ropes of America, Inc., for their role in making false statements to the Department of Labor concerning violations of the Fair Labor Standards Act by failing to pay its workers overtime wages; and,
MIDLAND - In May, the WDTX collected $89,896.69 in restitution from Gary Gardenhire stemming from the sale of his racetrack. The collection was applied towards his Court-ordered restitution of $2,444,165.10 based on his 2010 mail fraud conviction for scheming to steal hydraulic hoses from a Permian basin business and sell them for profit.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. That figure represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
United States Attorney's Office Collects over $2.4 Million for Taxpayers in 2013Read the Press Release
HONOLULU – U.S. Attorney Florence T. Nakakuni announced today that her office collected $2,475,370 in criminal and civil actions in Fiscal Year (FY) 2013. Of this amount, $1,543,259 was collected in criminal actions and $932,110 was collected in civil actions. Additionally, the District of Hawaii worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $193,281,585 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
This past August, for example, the District of Hawaii recovered $451,428 from Wahiawa General Hospital ("WGH") to settle two lawsuits alleging that WGH improperly billed the Medicare program, the State of Hawaii Medicaid program, and TRICARE, the federal health benefits program for military dependents. The settlement grew out of civil "whistleblower" lawsuits brought under the federal and State of Hawaii False Claims Acts in federal and state court. WGH agreed to the settlement but did not admit liability.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office in Hawaii, working with partner agencies and divisions, collected over $7.95 million in asset forfeiture actions in FY 2013, including over $4.79 million deposited into the Department of Justice Asset Forfeiture Fund. Deposits into the Department’s Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
United States Attorney for Western District of Oklahoma Involved in Collecting over $701 Million in Fiscal Year 2013Read the Press Release
Oklahoma City, Oklahoma – Sanford C. Coats, United States Attorney for the Western District of Oklahoma, announced today that his office was involved in collecting a total of $701,879,812 in civil and criminal cases and through asset forfeiture in Fiscal Year 2013.
The Western District of Oklahoma collected $177,335,420.48 in criminal and civil actions FY 2013. Of this amount, $163,574,529.60 was collected in criminal actions and $13,760,890.88 was collected in civil actions.
The Western District of Oklahoma also worked jointly with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $446,231,873.45 in other civil cases pursued jointly with these offices.
Finally, the Western District worked with partner agencies and divisions to collect an additional $78,336,320.00 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
"The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people," said Attorney General Holder. "It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment."
"These significant recoveries highlight the remarkable work done by the talented women and men in the U.S. Attorney’s Office, particularly in our Asset Recovery Unit," said U.S. Attorney Coats. "These collections are more important than ever and we are committed to recovering the financial losses suffered by victims of crime and money obtained by fraud on the government. The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime. We will continue to hold accountable those who seek to profit from their illegal activities."
Significant Cases in the Western District of Oklahoma
In July of this year, the Western District of Oklahoma, in collaboration with the Civil Division of the Department of Justice, announced the resolution of parallel criminal and civil cases against Wyeth Pharmaceuticals, Inc., for the unlawful "off-label" marketing of the prescription drug Rapamune for uses not approved as safe and effective by the FDA. The case concluded with a joint resolution of criminal liability and two civil qui tam cases where Wyeth pled guilty to a criminal misbranding violation under the Federal Food, Drug and Cosmetic Act and paid $490.9 million to resolve its criminal and civil liability arising from the qui tam and criminal cases. The settlement included civil settlements totaling $257.4 million, a criminal fine of $157.58 million, and forfeiture of $76 million.
In April, the Western District of Oklahoma recovered $11,000,000 from CVS Pharmacy, Inc., and Oklahoma CVS Pharmacy, L.L.C., for alleged record-keeping violations under the Controlled Substances Act. The government alleged that CVS (1) used invalid “dummy” DEA registration numbers of prescribing practitioners on dispensing records, (2) filled prescriptions for certain prescribers whose DEA registration numbers were not current or valid, and (3) maintained dispensing records using the DEA registration numbers of non-prescribing practitioners substituted for the actual prescribing practitioners. Accurate prescription records provided to state prescription drug monitoring programs play a vital in ensuring the appropriate handling, accounting, and distribution of controlled substances.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
United States Attorney Announces Financial Recoveries of over $81 Million in Eastern Wisconsin and over $8 Billion Nationwide on Behalf of United States TaxpayersRead the Press Release
United States Attorney James L. Santelle announced today that, in Fiscal Year 2013 (October 1, 2012 – September 30, 2013), the Eastern District of Wisconsin Office collected $9,664,591.85 in civil and criminal cases. Of this amount, $4,989,276.78 was recovered in criminal actions, and $4,675,315.07 was recovered in civil actions—all on behalf of the citizen-taxpayers nationwide.
Of the total recovered in civil and criminal matters, $350,357.94 was collected through the Treasury Offset Program—a centralized, nationwide program that identifies and offsets amounts from the federal and state income tax refunds of taxpayers who also owe monies to the United States. Other government-allocated benefits are also subject to collections offsets of this type.
In addition, the Office of the United States Attorney worked in partnership with various litigating divisions of the United States Department of Justice in Washington, D.C. and other Offices of United States Attorneys to collect another $71,380,274.14 in cases initiated and pursued jointly.
Working with partnered law enforcement agencies, offices, and units, the Office of the United States Attorney also recovered $2,989,821.00 in asset forfeiture actions in Fiscal Year 2013. These forfeited assets are deposited into the United States Department of Justice’s Asset Forfeiture Fund and are used to restore losses suffered by the victims of crime and to support various related types of law enforcement activities and functions.
In Washington, D.C., Attorney General Eric H. Holder, Jr. announced today that the United States Department of Justice collected approximately $8.1 billion in criminal and civil actions during the fiscal year ending on September 30, 2013. The more than $8 billion in collections in Fiscal Year 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 United States Attorneys’ offices and the main litigating divisions in that same period.
This national total includes all monies collected as a result of Justice Department-led actions and negotiated civil settlements, including payments made directly to the Justice Department and indirect payments made to other federal agencies, states, and other designated recipients. It necessarily includes some cases that were resolved in prior years but the proceeds of which were collected in Fiscal Year 2013.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
Joining the Attorney General in these announcements, Santelle commented: “I am exceptionally proud of the professional, dedicated, and productive work of my staff—including all of our criminal and civil attorneys and our equally stellar professional support personnel—who are collectively responsible for bringing into the coffers of the United States Treasury these dramatically significant sums. In our daily efforts to enforce the many civil and the criminal judgments entered in favor of the United States of America, we are aggressive yet even-handed, purposeful yet fair, and creative yet balanced in meeting one of our principal missions—that is, collecting monies due and owing to the federal government on behalf of the citizen constituents that we serve.”Santelle continued: “The people of the Eastern District of Wisconsin should know that, in Fiscal Year 2013, just recently concluded, the total operational budget for our office was approximately $8 millionToday’s announcement confirms that, during that same time period, we recovered approximately 10 times that amount in local and shared matters—confirming that our partnered, governmental operation is strikingly efficient, demonstrably potent, and genuinely cost-effective. I recognize especially the outstanding efforts of our Financial Litigation Unit, our Asset Forfeiture Unit, and our industrious colleagues in the many federal agencies, both civil and criminal, that we represent here in Eastern Wisconsin for this exceptional accomplishment.”
The Offices of the United States Attorneys, along with the litigating divisions of the United States Department of Justice, are responsible for enforcing and collecting civil and criminal debts of many kinds that are owed to the United States of America and that are due to the victims of various types of federal crimes. The federal law contemplates that defendants convicted of those crimes pay restitution to those victims who have suffered physical injuries or financial losses. While restitution is paid to the victims, criminal fines and related assessments are paid to the United States Department of Justice’s Crime Victims Fund, which distributes monies to state victim compensation and victim assistance programs.
As one example of a significant recovery in a criminal matter, Santelle described a case in which the defendant, Craig Kelly, had embezzled well over $1 million from his employer. “Through that prosecution,” Santelle explained, “our office collected $1,039,881.00, which was used to satisfy a substantial percentage of the restitution due and owing to the defendant’s former employer. Working in close and effective partnership with the United States Secret Service, the legal staff of our Asset Forfeiture Unit recovered those monies by tracing proceeds of the embezzlement scheme to valuable assets—including the defendant’s residence, retirement accounts, life-insurance policies, boat, wine collection, and timeshare interests. The United States then forfeited those assets and turned over the resulting proceeds to the victim-former employer.”
Nationwide and locally, the largest civil collections amounts result from the litigation of affirmative enforcement actions, through which the Offices of the United States Attorneys and the United States Department of Justice recover federal dollars lost to fraud or other types of misconduct; these sums also include fines imposed on individuals and corporations for their proven violations of federal health, safety, civil rights, environmental, and other program-type laws. These civil monetary obligations are enforced by the United States Attorneys and their staffs on behalf of many federal agencies—including but not limited to the United States Department of Health and Human Services, the United States Department of Housing and Urban Development, the United States Department of Education, the United States Department of Agriculture, the United States Department of the Treasury (including the Internal Revenue Service), and the United States Small Business Administration.
As one of the notable examples of significant recoveries in the affirmative enforcement mission of his office, Santelle described the successful action against national hardware distributor W.W. Grainger, Inc. (“Grainger”) that paid $70 million following an investigation of false claims made in connection with contracts with the General Services Administration (“GSA”) and the United States Postal Service (“USPS”). “The settlement in that matter focused on a contract entered into by the Lake Forest, Illinois-based company to sell hardware products to government customers through the GSA’s Multiple Award Schedule (“MAS”) program,” Santelle reported. “The resolution of the claims disposed of issues identified during a GSA post-award audit of Grainger’s MAS contract. Like many of our affirmative enforcement cases, this settlement was the product of highly coordinated, effectively pursued efforts among the Commercial Litigation Branch (Civil Division of the United States Department of Justice), the Office of the Inspector General of the GSA, the Offices of the Inspector General and of the General Counsel of the USPS, and the Civil Division in our office here in Eastern Wisconsin.”
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For further information about the information and commentary in this release, please contact Public Information Officer Dean Puschnig, Office of the United States Attorney for the Eastern District of Wisconsin, at (414) 297-1700 or at dean.puschnig@ usdoj.gov.U.s. Attorney's Office for the Eastern District of Louisiana Collects over $366 Million in Civil and Criminal Actions for U.s. Taxpayers in Fiscal Year 2013Read the Press Release
U.S. Attorney Kenneth A. Polite, Jr. announced today that the Eastern District of Louisiana U.S. Attorney’s Office collected $366,530,698.00 in criminal and civil actions in Fiscal Year 2013. Additionally, the Eastern District of Louisiana worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $588,643,036.25 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced on Wednesday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorneys’ Offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
U.S. Attorney Polite also commented on the FY 2013 figures:
“The collection of criminal and civil debts owed to the United States replenishes the public treasury, makes crime victims financially whole, and ensures that federal debtors timely and fully address the consequences of their conduct. As such, aggressive collection of civil judgments and criminal fines and restitution has been, and will continue to be, a hallmark of this office’s work on behalf of the residents of the Eastern District of Louisiana.”
As just one example, in the summer of 2012, the Eastern District of Louisiana recovered $400,000.00 in victim restitution from defendant Reginald Harper, who was convicted along with co-defendant Troy Fouquet of conspiracy to commit bank fraud. Harper and Fouquet were ordered to pay restitution in the amount of $570,955.71 to First Community Bank.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
U.S. Attorney’s Office in Kansas Collects $12.1 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
KANSAS CITY, KAN. - U.S. Attorney Barry Grissom announced today that the District of Kansas collected $12.1 million in criminal and civil actions in Fiscal Year 2013. Of this amount, $6.1 million was collected in criminal actions and $6 million was collected in civil actions
Additionally, the District of Kansas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional 2.8 million in cases pursued jointly with these offices in civil actions.
Attorney General Eric Holder announced on Thursday that the Justice Department collected more than $8 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“In Kansas, we are fighting to recover funds for victims of federal crimes and the federal treasury,” said U.S. Attorney Barry Grissom. “We are holding accountable offenders who try to make a profit from violating the law.”
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
For example: In Fiscal Year 2013, the District of Kansas collected more than $853,000 in U.S. v. Hutchinson Regional Medical Center, Inc., as a result of a settlement reached for allegations that the hospital submitted false claims to the Medicare Program. In addition, more than $1.7 million was collected in U.S. v. Coffeyville Resources Refining & Marketing and more than $1.6 million in U.S. v. Ash Grove Cement, both amounts representing civil penalties in violation of the Environmental Protection Act.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in District of Kansas working with partner agencies and divisions, collectedmore than $5.2 millionin asset forfeiture actions in FY 2013.Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office for the Eastern District of Michigan Collects $219,630,095.00 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Detroit – United States Attorney Barbara L. McQuade announced today that the Eastern District of Michigan collected $219,630,095.00 in criminal and civil actions in Fiscal Year 2013. Of this amount, $204, 334,075.94 was collected in criminal actions and $15,296,019.06 was collected in civil actions
Additionally, the Eastern District of Michigan worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $84,508,264.20 in cases pursued jointly with these offices. Of this amount, $35,054.89 was collected in criminal actions and $84,473,209.40 was collected in civil actions.
Attorney General Eric Holder announced on Thursday that the Justice Department collected $8 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8.1 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
United States Attorney Barbara L. McQuade stated, “Thanks to the hard work of attorneys and support professionals in the U.S. Attorney’s Office, we were able to collect money that will be returned to victims of crime and taxpayers. These numbers are particularly impressive in light of the government shutdown, budget cuts and the hiring freeze that has reduced our personnel. The fact that our office collects far more than it spends demonstrates the illogic of across-the-board budget cuts that reduce our ability to collect funds for taxpayers.”
This past July, the Eastern District of Michigan obtained $4 million in the settlement of a lawsuit brought under the False Claims Act against a cardiology practice and a hospital in Jackson, Michigan. The complaint alleged that cardiologists employed by Jackson Cardiology Associates performed medically inappropriate cardiac procedures, including invasive catheterizations at Allegiance Health in addition to performing a variety of other office-based medically unnecessary test. A portion of the settlement with Allegiance Health also covered medically unnecessary peripheral stents performed on an outpatient basis.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Eastern District of Michiganworking with partner agencies and divisions, collected a total of $7,967,328.00 in both Department of Justice and Department of Treasury asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office for the Eastern District of California Collects $63.8 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Total Recoveries Including Shared Cases and Forfeitures Exceeds $81.9 Million
SACRAMENTO, Calif. — U.S. Attorney Benjamin Wagner announced today that the U.S. Attorney’s Office for the Eastern District of California collected $63,833,023 in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,317,646 was collected in criminal actions and $61,515,377 was collected in civil actions.
Additionally, the Eastern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,917,100 in cases pursued jointly with these offices. Of this amount, $108,208 was collected in criminal actions and $11,808,892 was collected in civil actions.
Total collections in civil and criminal cases involving the office, therefore, were in excess of $75.6 million. These figures represent actual dollars received, not judgment amounts.
Additionally, the U.S. Attorney’s Office in the Eastern District of California, working with partner agencies and divisions, collected $6,183,607 in asset forfeiture actions in FY2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. When forfeitures are added to collections in civil and criminal cases, total recoveries in FY 2013 involving the Eastern District exceeded $81.9 million.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Financial recoveries are a critical part of the Department’s mission to hold those who violate the law accountable for the injury they cause to victims and the general public,” said U.S. Attorney Wagner. “Each year we collect far more for victims and taxpayers than the total cost of operating our office. During this time of continued fiscal constraint, these collections are more important than ever. We will continue to aggressively pursue compensation from those who commit crimes in our district and civil wrongs, to ensure that the wrongdoers — not the public — bear the costs of unlawful conduct here in the Eastern District of California.”
Major recoveries in the Eastern District of California in FY 2013 included $45 million from PG&E and its contractor Provco for damages caused by the Power Fire, which burned approximately 13,000 acres of the El Dorado National Forest in October 2004, and an additional $5.5 million from PG&E and its contractors ACRT, Inc. & Davey Tree for damages caused by the James Fire on the Mendocino National Forest in June 2008. The district also recovered $14.2 million on a settlement of allegations that Adventist Health improperly compensated physicians who referred patients to Adventist’s White Memorial facility, in violation of the Anti-Kickback Act and Stark Statute.
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The figures announced today do not include money recovered on the recent $13 billion settlement of fraud claims against JPMorgan Chase & Co. in connection with residential mortgage backed securities. Although several billion dollars has already been paid on that settlement, the payments were received in Fiscal Year 2014 (which began in October) and so will be included in a future announcement on recoveries during that fiscal year.
U.S. Attorney’s Office Collects over $45 Million in Civil and Criminal Actions for U.S. Taxpayers in FY 2013Read the Press Release
Alexandria, Virginia – Acting U.S. Attorney Dana J. Boente announced today that the Eastern District of Virginia (EDVA) collected $45,088,361.82 in criminal and civil actions in Fiscal Year 2013. Of this amount, $24,291,184.24 was collected in criminal actions and $20,797,177.58 was collected in civil actions
Additionally, EDVA worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $473,911,812.38 in cases pursued jointly with these offices. Of this amount, $2,384,207.68 was collected in criminal actions and $471,527,604.70 was collected in civil actions.
Attorney General Eric Holder announced on Wednesday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“The collections announced today reflect the tremendous work being done to recover the ill-gotten gains of criminal activity, protect American taxpayers from fraud and other misconduct, and enforce civil rights,” said Acting U.S. Attorney Boente. “We are committed to working with the Justice Department and our law enforcement partners to hold accountable those who harm members of the community and the public fisc.”
In March 2013, the U.S. Attorney’s Office recovered $3 million as part of a settlement with three CIA contractors—American Systems Corporation, Anixter International Inc., and Corning Cable Systems LLC—regarding allegations that the companies violated the False Claims Act and the Anti-Kickback Act in bidding on a contract with the CIA. The United States alleged that the contractors provided gratuities, including meals, entertainment, gifts, and tickets to sporting and other events, to CIA employees and outside consultants in order to influence contract specifications that would favor the three companies in the award of the contract. The settlement also resolved allegations that the three companies improperly received source selection information from a CIA employee to whom they had provided gratuities, and that they had concealed the gratuities prior to award.
During fiscal year 2013, the U.S. Attorney’s Office for the Eastern District of Virginia also worked with the Justice Department’s Civil Rights Division and other U.S. Attorney’s Offices to collect and disburse funds paid from a major settlement to resolve claims of discrimination in mortgage lending programs operated by Wells Fargo Bank. As part of that settlement, Wells Fargo agreed to pay over $184 million to borrower assistance programs and related efforts targeted at helping African-American and Hispanic homeowners in affected communities.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office, working with partner agencies and divisions, collected $17,921,285 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.U.S. Attorney’s Office Collects $6.8 Million in Criminal and Civil Actions in FY 2013Read the Press Release
SHREVEPORT/LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that the U.S. Attorney’s Office for the Western District of Louisiana collected $6,876,596.69in criminal and civil actions in Fiscal Year 2013. Of this amount, $6,577,567.18 was collected in criminal actions and $299,029.51 was collected in civil actionsThe U.S. Attorney’s Office also worked with other offices and components of the Department of Justice to collect $508,781.75.
Additionally, the U.S. Attorney’s Office in the Western District of Louisiana collected$1,162,569 in asset forfeiture actions in FY 2013.Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
Included in the FY 2013 criminal collections, the Western District of Louisiana recovered $2,000,000 in court-ordered restitution from Pelican Refining owed to the National Fish and Wildlife Foundation, to the Louisiana State Police, and to the Louisiana Environmental Trust Fund for violations of the Clean Air Act. A judgment was imposed against Pelican Refining on December 15, 2011, and the defendant agreed to an immediate payment of $2,000,000, and $2,000,000 per year for the next five years. Collected so far is $4,001,200 with a balance due of $8,010,970.19.
The U.S. Attorneys’ offices are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department of Justice Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime,” stated U.S. Attorney Stephanie A. Finley. “Victims depend on our office to collect restitution. We will continue to make every effort to collect restitution on behalf of victims and hold accountable those who seek to profit from illegal activities.”.
For further information, the U.S. Attorneys’ annual statistical reports can be found at http://www.justice.gov/usao/resources/reports/U.S. Attorney’s Office Collects $3,240,685.55 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
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(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II, announced today that the Northern District of West Virginia collected $3,240,685.55 in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,355,043.62 was collected in criminal actions and $885,641.93 was collected in civil actions.
Additionally, the Northern District worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,028,221.11 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents over three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“My office works hard every day to protect the public and to recover funds for the federal treasury and for victims of crime,” said Ihlenfeld. “And for those who seek to profit from their illegal activities, we will continue to do everything within our power to take away assets that are acquired through criminal conduct.”
The largest criminal collection in the Northern District of West Virginia was the payment of $963,367.17 in restitution from Bernie Metz through the liquidation of the Roadworthy Tavern and Resort in West Liberty, WV, and several vehicles seized through the criminal asset forfeiture process. Metz was the former Chief Executive Officer at Center Valley Credit Union in Wheeling, WV where she embezzled $8,989,484 from customers, leading to the credit union’s bankruptcy. Metz still owes almost $3.9 million in restitution.
Other large criminal collections from the last fiscal year include:
- $600,000.00 paid by Chesapeake Appalachia, LLC as a result of its conviction on three counts of unauthorized discharge into a waterway of the United States, in violation of the Clean Water Act, relative to the dumping of approximately 60 tons of crushed stone and gravel on three different occasions into Blake Fork in Wetzel County, West Virginia, while developing access roads to a natural gas drilling site.
- $502,278.63 paid by Joseph Yurigan, D.C. of New Alexandria, PA as a result of his conviction for submitting fraudulent claims to Medicare and Medicaid. Although Yurigan still owes $322,692.03 to the Internal Revenue Service, nearly all of the restitution was paid at sentencing. The victims include Ohio Bureau of Workers’ Compensation, the West Virginia Insurance Commissioner, and BrickStreet Insurance.
Large civil collections from 2013 include:
- $11,000,000.00 paid by Vertullus Specialties, Inc. as a result of the entry of a Consent Judgment wherein it agreed to the payment of a civil penalty for violations of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, (CERCLA) regarding clean-up costs at the Sharon Steel/Fairmont Coke Works property along Hoult Road in Fairmont, WV.
- $660,000.00 paid by the Ohio Valley Health Education & Services Corporation (OVHS&E), Ohio Valley Medical Center (OVMC), and East Ohio Regional Hospital (EORH) in FY 2013 on a case that was settled in FY 2012. These entities still owe nearly $1.84 million dollars to the federal government for violations of the Stark Act and improper compensation arrangements with physicians.
- $116,188.03 paid by Meadows Stone & Paving, Inc., Gassaway, West Virginia for penalties, interest and administrative fees regarding citations issued to it by the Mine Safety and Health Administration as a result of safety violations at its quarry operated at or near Valley Head, Randolph County, West Virginia.Large criminal asset forfeitures for FY 2013 include:
- $2,078,595.96 in assets and currency from Jeffrey Paglia as a result of his convictions for “Conspiracy to Distribute Controlled Substances” and “Structuring Monetary Transactions to Avoid Reporting Requirements.” Of this amount, $1,099,968.83 is the appraised value on real and personal properties and $978,627.14 is in United States currency. Paglia previously operated a store in Clakrsburg known as “Hot Stuff, Cool Things” from which he sold a synthetic drug sometimes referred to as Bath Salts.
- $130,200.00 forfeited by John Amorusco, Jr. as a result of his conviction for “Conspiracy to Distribute Marijuana.”
- $76,625.00 in assets and currency from Kimberly Mull as a result of her conviction for “Conspiracy to Distribute Controlled Substances.” Of this amount, $76,625.00 is the appraised value on forfeited vehicles and $50,000.00 is in United States currency.
The U.S. Attorneys’ Offices, along with the Departments litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance program.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, Ihlenfeld’s office, while working with partner agencies and divisions, collected $2,527,824.36 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Collects $15 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
SAN DIEGO - U.S. Attorney Laura E. Duffy announced today that the Southern District of California collected $15,576,798.02 in criminal and civil actions in Fiscal Year 2013. Of this amount, $11,799,803.27 was collected in criminal actions and $3,776,994.75 was collected in civil actions.
Additionally, the Southern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $12,727,907.87 in cases pursued jointly with these offices. This amount was collected in joint civil actions.
Attorney General Eric Holder also announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the 2 resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
U.S. Attorney Laura Duffy said, “Restitution to victims is justice in its simplest form. The Southern District of California strives to keep up with the rapidly increasing restitution debt and works hard to increase the amount collected each year.”
This past June, the Southern District of California recovered approximately $1.2 million in restitution and $500,000 in fines as part of the criminal case in U.S. v. Joel Bernstein, M.D., Inc., 13CR0119-CAB. In a related civil case, U.S. v. Joel Bernstein, M.D., Inc., 13CV0153-BEN, the United States recovered $2.2 million in a settlement agreement that was offset by the criminal restitution. Dr. Bernstein, a La Jolla, CA oncologist, defrauded Medicare by purchasing unapproved foreign cancer drugs and billing it to Medicare. In the related civil False Claims Act lawsuit filed by the United States, Dr. Bernstein was permitted to pay $2.2 million to settle the lawsuit and have that amount applied to criminal restitution owed to Medicare.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Southern District of California, working with partner agencies and divisions, collected $11,968,370.00 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Collects $13 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
U.S. Attorney Tristram J. Coffin announced today that the District of Vermont collected $8,078,858 in criminal and civil actions in Fiscal Year 2013. Of this amount, $1,481,573was collected in criminal actions and $6,597,285 was collected in civil actions Additionally, the office collected $4,970,388 in criminal and civil forfeitures, for a total recovery of $13,049,246. The largest part of that amount was $4.3 million recovered last May as part of the settlement relating to tax and health care fraud violations of three former officers of Bennington School, Inc.
Attorney General Eric Holder announced on Thursday that the Justice Department collectedapproximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney’s Office Collects $11.6 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
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United States Attorney Deirdre M. Daly today announced that the U.S. Attorney’s Office collected $11.6 million in criminal and civil actions in Fiscal Year 2013. Of this amount, $4.3 million was collected in criminal actions, $3.8 million was collected in civil actions and an additional $3.5 million was collected through asset forfeiture.
The District of Connecticut also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect approximately $26 million in cases pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Every day, our attorneys and staff work tirelessly to protect the public and seek justice for victims of crime,” said U.S. Attorney Daly. “Often, justice comes in the form of financial restitution, and the funds collected are provided directly to victims of crime. Funds are also used to provide needed services to victims and to fund ongoing federal, state and local law enforcement efforts. I want to specifically acknowledge the dedicated efforts of the Office’s Civil Division and Financial Litigation Unit, which, every year, recover millions of dollars of taxpayer funds. ”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
During FY2013, more than $4.3 million was collected for special assessments, fines and restitution from federal criminal offenders who were prosecuted by Connecticut’s U.S. Attorney’s Office.
The largest civil collections were from affirmative civil enforcement cases, in which the U.S. recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The Office’s Financial Litigation Unit (FLU) litigates debt collection issues and enforces collection of criminal and civil debts owed to the United States or to victims of federal crime. The FLU enforces collection of civil debts on behalf of federal agencies in litigation that most often involves federal loan programs, civil penalties assessed by federal agencies and civil fraud actions litigated by the U.S. Attorney’s Office. In FY2013, the office collected approximately $3.8 million from Connecticut debtors in satisfaction of their federal civil debts, including False Claims Act recoveries, such as procurement and health care fraud, and civil penalty and debt collection matters such as bankruptcy, student loans and foreclosures.
Additionally, the U.S. Attorney’s Office, working with partner agencies and divisions, collected $3.5 million in asset forfeiture actions in FY 2013. Those who are convicted of federal crimes are often subject to criminal asset forfeiture proceedings, whereby the government seizes property that was involved in or represents the proceeds of criminal behavior. Property can also be forfeited through civil forfeiture actions. The proceeds of forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and Department of Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. Forfeited assets are also provided to state and local law enforcement through the Equitable Sharing Program.
The U.S. Attorney’s Office for the District of Connecticut is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District. The Office employs approximately 64 Assistant U.S. Attorneys, 45 staff members and 13 contractors at offices in New Haven, Hartford and Bridgeport.
For further information, the United States Attorneys’ Annual Statistical Reports can be found on the Internet at www.justice.gov/usao/reading_room/foiamanuals.html. More information about the Crime Victims Fund can be found at www.ovc.gov/about/victimsfund.html.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]U.S. Attorney's Office Recovers More Than $366 Million on Behalf of U.S. Taxpayers in FY 2013Read the Press Release
Tampa, FL – Acting U.S. Attorney A. Lee Bentley, III announced today that the Middle District of Florida (MDFL) collected over $366 million in Fiscal Year (FY) 2013 in criminal, civil, and forfeiture actions. Almost $30 million was recovered in criminal actions, most of which will be distributed to crime victims. Approximately $290 million was collected in civil actions, including in excess of $96 million as a result of approximately nine major civil fraud settlements arising from cases filed in the MDFL. The amounts recovered in civil lawsuits over and above $96 million resulted from recoveries in cases involving other judicial districts, most notably a major nationwide discriminatory lending case brought by the Department of Justice Civil Rights Division.
Additionally, the office collected $46.2 million in criminal and civil forfeitures Forfeited assets are deposited into the Departments of Justice and Treasury Assets Forfeiture Funds and are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, approximately $3.1 million in forfeited funds was used to compensate crime victims and more than $20 million is in the process of being returned to victims this year. In addition, approximately $3.5 million in forfeited funds was shared with state and local law enforcement agencies, and property valued at more than $55,000 was retained by federal law enforcement agencies for official use.
“Recovering monies from convicted criminals and others defrauding the government is critical to our mission,” said Acting U.S. Attorney A. Lee Bentley, III. “Working alongside our law enforcement partners and other federal, state, and local agencies, our efforts ensure not only that criminals and others committing fraud are held fully accountable for their offenses, but also that we help victims recover from their losses to the extent possible. In addition, a huge portion of the recovered funds is used to replenish public resources.”
Attorney General Eric Holder announced on Thursday that the Justice Department collected $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.” The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The Middle District of Florida has historically had one of the busiest whistleblower case dockets in the country, and in FY2013 placed third among the 94 judicial districts in qui tam cases filed under the False Claims Act. The significant FY 2013 recoveries in the Civil Division's affirmative enforcement program were driven in large measure by a national discriminatory lending case and settlements in cases filed by private whistleblowers involving fraud against federal healthcare programs (see case highlights for details).
For further information, view the United States Attorneys' Annual Statistical Reports on the internet at http://www.justice.gov/usao/resources/annual-statistical-reports. See highlighted cases below from the U.S. Attorney's Office for the Middle District of Florida.
Middle District of Florida Affirmative Case Highlights
Wells Fargo lending settlement
In the past fiscal year, the MDFL partnered with the Department of Justice Civil Rights Division in a major national discriminatory lending case against a large institutional lender, Wells Fargo Bank. The investigation, spearheaded by the Civil Rights Division, found that Wells Fargo discriminated against African American and Hispanic borrowers by charging higher fees and interest rates than non-Hispanic white borrowers, in the wholesale and retail markets. These practices were without regard to the credit applicants’ creditworthiness or objective criteria related to risk. Wells Fargo was found to have discriminated against 30,000 borrowers from 2004 and 2009, eventually settling the claims against it, in return for $175 million.
United States ex rel Freedman v. SuarezHoyos, et al.
The MDFL intervened in this civil qui tam case, in which a physician whistleblower alleged that a local pathology lab and a dermatologist violated the federal anti-kickback statutes through an arrangement in which the pathologist agreed to provide the dermatologist with an opportunity to bill Medicare and other federal health programs for work that the dermatologist did not perform. This arrangement was designed to induce referrals of Medicare business from the dermatologist to the pathology lab. In investigating this claim, the MDFL uncovered other significant schemes by the dermatologist, including upcoded claims for dermatology services and billing Medicare for expensive surgical services that he did not perform. In an earlier settlement, the pathologist defendant agreed to settle the civil kickback claims against him, in return for $1 million. In FY2013, the MDFL settled all of its claims against the dermatologist for an additional $26.2 million. It is believed to be the largest settlement with an individual physician in the history of the False Claims Act.
United States ex rel. Myers v. Shands Healthcare, et al.
The MDFL intervened, in part, in this civil qui tam case filed by an officer of a health care consulting firm against the Shands hospital chain in North Florida. The whistleblower alleged that from 2003 through 2008, six of the system’s hospitals submitted claims for reimbursement of inpatient hospital services, when those claims should have been for outpatient services. In August, 2013, we announced a settlement that paid $26 million to resolve these civil claims. Of this amount, $25,170,440 was paid to Medicare and other federal payors, while $829,600 went to the Florida Medicaid program. At the time that it was announced, the Shands settlement was the largest on record to address allegations of this kind.
United States ex rel. Ferrare v. Morton Plant Mease Healthcare, et al.
The qui tam case was filed by a former director of case management for Morton Plant Hospital. She alleged that the Morton Plant chain of hospitals used a written billing protocol to require its hospitals to bill certain interventional cardiology procedures on an inpatient basis, regardless of whether the patients’ condition justified those claims. In November 2012, the MDFL settled the civil claims in the case against the chain of hospitals for $10.1 million.
United States ex rel. Ferner v. Stallings, et al.
This was a procurement fraud case filed by a whistleblower who alleged that a government contractor, SAIC, used fraud to deceive the General Services Administration to steer federal consulting services contracts to it. The whistleblower – a former military officer – alleged that a private individual had misrepresented himself to be a senior government executive with the Department of Defense, in order to bypass competitive bidding and win government contracts for SAIC. The MDFL intervened in the case and settled all claims for $5.75 million.
United States ex rel. Numbers et al. v. Hernando Pasco Hospice Inc., et al.
This qui tam case was filed by two former employees of a non-profit hospice company based in Hernando County. They alleged that the hospice provider had submitted false claims to Medicare and Medicaid for reimbursement of hospice services to patients who did not qualify for the services. After a lengthy investigation, the MDFL intervened and settled the claims based upon the provider’s ability to pay, for $1,000,000, payable in installments over time plus interest.
Mortgage Investors Corp. consent decree
The MDFL assisted the Federal Trade Commission in its effort to confront violations by a St. Petersburg based residential lending firm of federal Do Not Call statutes. The FTC found that the firm had targeted veterans with a campaign of home mortgage telemarketing calls, contacting 5.4 million homes in violation of federal law. The FTC imposed a record civil penalty of $7.5 million under the Do Not Call statute.
Middle District of Florida Asset Forfeiture Case Highlights
United States v. $20,000,000 (Jacksonville Division)
As part of the Non-Prosecution Agreement (NPA) entered into between the United States and Lender Processing Services (LPS), the United States completed a civil forfeiture of $20 million, which it alleged was derived from the mail fraud and wire fraud scheme perpetrated through DocX involving the preparation and filing of an estimated one million mortgage documents with false and misleading signatures and notarizations. DocX was at relevant times, a wholly-owned subsidiary of LPS. LPS, without admitting or denying the allegations regarding DocX’s proceeds, consented to the civil forfeiture of the $20 million.
United States v. Louis Fernandez, III, et al. (Tampa Division)
Defendants Louis Fernandez, III, Louis Fernandez, Jr., Marco Beltran, Kimberly Curtis, and Christopher Switlyk pleaded guilty to conspiracy to illegally distribute and dispense controlled substances. The defendants, operated pain clinics and pharmacies, for the purpose of unlawfully distributing and dispensing controlled substances, primarily Oxycodone, a prescription painkiller sold generically or under a variety of brand names, including Roxicodone, Roxicet, Oxycontin, Percocet, and Endocet. Defendants Beltran and Switlyk also pleaded guilty to engaging in unlawful monetary transactions. As part of their plea agreements, the defendants consented to the forfeiture of more than $2.5 million in drug proceeds seized from them as well as a Rolex watch, car, and real property that had been purchased with drug proceeds. Additionally, in fiscal year 2011, the government forfeited more than $3.6 million in drug proceeds that had been seized from the defendants during execution of search warrants.
United States v. Dennis Devlin (Orlando Division)
In July 2011, Dennis Brian Devlin, of Daytona Beach, was sentenced to 15 years in federal prison for sexually exploiting a minor. As part of Devlin’s sentence, the court ordered Devlin to forfeit his interest in the Desert Inn because it was used to facilitate the crimes for which he was convicted. The titled owner of the Desert Inn, Deslin Hotels, Inc., filed a claim to contest the forfeiture of the hotel because it alleged that Devlin did not have an interest in the hotel. In September 2013, after months of litigation, a settlement was reached wherein Deslin Hotels, Inc. agreed to the forfeiture of $1,552,588.62, representing Devlin’s interest in the proceeds obtained from the recent sale of the Desert Inn.
United States v. $1,820,008.93 (Ft. Myers Division)
The United States civilly forfeited approximately $1.8 million in proceeds of online gambling, which is illegal in the state of Florida, for violations of wire fraud. The funds were seized as they were being wire transferred through Deutsche Bank Trust Company Americas. Deutsche Bank’s policy was not to accept wire transfers that were related to online gambling of any sort whether legal or illegal. Indeed, the bank had created a filter for key words in wire transfers in order to identify and prevent the receipt and/or transmission of wires related to online gambling. As alleged in the amended complaint, Chargestream, a company wiring gambling winnings to gamblers in the United States, created a series of letter and number identifiers in their wires in order to disguise the nature of the wires and to evade bank filters.
U.S. Attorney's Office Collects over $26.5 Million in Civil, Criminal Actions in 2013Read the Press Release
KANSAS CITY, Mo. – United States Attorney Tammy Dickinson announced today that the Western District of Missouri collected more than $26.5 million in criminal and civil actions in Fiscal Year 2013. Of this amount, more than $14.8 million was collected in criminal actions, more than $6.2 million was collected in civil actions and nearly $5.5 million was collected through the seizure of assets that were forfeited to the government.
The Western District of Missouri also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $10.6 million in cases pursued jointly with these offices, primarily in civil actions.
Attorney General Eric Holder announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“The pursuit of justice involves not only prosecuting criminals, but being diligent to collect the fines levied by the court and restitution payments on behalf of the victims of crime,” Dickinson said. “I am determined that criminals will not profit from their crimes, but will lose their ill-gained assets through forfeiture. And I am equally determined that those involved in civil actions must pay the government what they owe.
“Our office had a budget of $10.5 million in FY 2013 and collected more than $26.5 million that was owed to the court, to victims of crime and to the government,” Dickinson added. “By generating revenue of more than double our annual budget, taxpayers can be assured that we are efficiently allocating our budget resources to safeguard their interests.”
Nearly $15 million in civil and criminal debts was collected in the Western District of Missouri in 2012 and nearly $24 million was collected in 2011.
US v. Sheffler, et al. : $3.8 million
As an example of FY 2013 collections, an Independence, Mo., business owner and a Wichita, Kan., attorney were among 18 defendants indicted in a more than $17 million, multi-state conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they allegedly were sold primarily on Indian reservations. In addition to the federal indictment, an undercover operation by the Bureau of Alcohol, Tobacco, Firearms and Explosives resulted in a $3.5 million civil forfeiture and a non-prosecution agreement that requires a Winnebago, Neb. company to pay a $300,000 penalty.
Following the seizures that occurred as a result of the investigation, the U.S. Attorney’s Office started a civil forfeiture case naming the assets taken up to that point. On Oct. 23, 2012, the court entered a default order of forfeiture for more than $2 million seized from bank accounts and by agents, more than 300 cases of seized cigarettes, a 2009 Cessna T206H Stationair aircraft, two 2012 Peterbilt 389 trucks and two 2012 Peterbilt 386 trucks. The seized cigarettes have been sold at auction for $532,500. The 2009 Cessna Aircraft has been sold for $450,000. The four trucks have been sold for the following amounts: $115,000; $115,000; $113,000; and $113,000. The civil case has been stayed pending the resolution of the criminal case.
Illegal Online Gambling: $921,416
As a result of a nationwide federal investigation into illegal online gambling, $921,416 was seized from the bank accounts of Integration, Inc., of Enfield, Conn.; The Club Services of Las Vegas, Nev.; Triple Beam Media of Williamsville, N.Y.; and Ontario Limited/Aramor Payments of Toronto, Ontario, Canada.
Integration operates as a third party processor involved in, among other things, the distribution of commercial rebate checks. Investigation determined that Integration also facilitated the distribution of winnings obtained through on-line Internet gambling Web sites such as Bodog Poker. Bank records for Integration indicated the company made disbursements, on behalf of Triple Beam Media, a shell corporation, to 8,753 residents of the United States, including 252 Missouri residents and 105 individuals who resided in the Western District of Missouri.
Under federal statutes, processing wires and mailing checks that represent the funds derived from illegal gambling constitutes money laundering. The transmission of gambling information constitutes a “specified unlawful activity” under the money laundering statutes. Any property involved in a money laundering transaction is subject to forfeiture to the government. Processing wires and mailing checks that represent the funds derived from illegal gambling also violates federal law regarding unlicensed money transmitting businesses.
Mario Escutia: $492,865
Law enforcement officers seized $492,865 that was found hidden in a Freightliner tractor and trailer driven by Mario Nambo Escutia, an owner-operator from California, during a routine inspection and compliance check at the commercial vehicle scales on Interstate 44 in Joplin, Mo. A drug-sniffing dog gave a positive indication for the presence of the odor of controlled substances from the money as well as inside the truck, but no controlled substances were found. Escutia was not prosecuted criminally, but the government filed a complaint for civil forfeiture against the money that was seized.
The money was furnished or intended to be furnished in exchange for a controlled substance, or it was proceeds traceable to such an exchange, or it was used or intended to be used to facilitate a drug-trafficking violation. As a result, the money is liable to condemnation and to forfeiture to the government.
US v. Arnold: $207,817
Jesse Arnold of Sarcoxie, Mo., forfeited $207,817 that was seized from his business bank account. He was sentenced to one year and one day in federal prison without parole for structuring financial transactions in order to evade federal reporting requirements as part of a scheme to sell stolen cooking oil that was intended for recycling. Arnold operated 4 States Grease Company, a collection facility for spent cooking oil. He admitted that he had reason to believe he was buying spent cooking oil that had been stolen by various drivers. In order to avoid federal reporting requirements that could bring unwanted scrutiny to 4 States, Arnold deliberately and knowingly structured withdrawals from his business checking account. Arnold withdrew some or most of the money in order to purchase the stolen spent cooking oil. Arnold made numerous withdrawals on consecutive days that were individually less than $10,000, but which totaled more than $10,000 when added together. Under federal law, banks must file a currency transaction report for any financial transaction over $10,000. The crime of structuring occurs when a person, in order to knowingly avoid the financial institution from filing a currency transaction report, breaks up the transaction into smaller components that are less than $10,000.
US v. David W. Scott: $182,617
David W. Scott pleaded guilty to his role in a conspiracy to distribute K2 (synthetic marijuana) and forfeited to the government $182,617 that was received in exchange for the distribution of K2. Scott owned and operated Country Express in Mountain Grove, Mo., which distributed K2. The money was seized by law enforcement officers who discovered it during a search of Scott’s Lincoln Navigator. Officers also seized hundreds of packages of K2 from Scott’s store, vehicle and residence, and thousands of packages of K2 from a storage unit.
Collection Amounts
The Western District of Missouri collected $26,575,724 in criminal and civil actions in Fiscal Year 2013. Of this amount, $14,823,396 was collected in criminal actions (such as fines and victim restitution), $6,283,214 was collected in civil actions, and $5,469,114 was collected in asset forfeiture actions.
(NOTE: Collection amounts released nationally by the Department of Justice today report $4,819,346 in forfeited assets deposited into the Department of Justice Assets Forfeiture Fund, which are used to restore funds to crime victims and for a variety of law enforcement purposes. An additional $649,768 in asset forfeitures was collected for the Department of Treasury, for total asset forfeiture collections in the Western District of Missouri of $5,469,114.)
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.U.S. Attorney's Office Collects over $6 Million on Behalf of U.S. Taxpayers in Fiscal Year 2013Read the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that it collected approximately $6.4 million in criminal and civil matters in Fiscal Year 2013 (October 1, 2013 to September 30, 2013).
Of the total amount, $2.9 million was collected in criminal cases; $3.5 million was collected in civil actions
Additionally, the staff of the U.S. Attorney’s Office Middle District offices in Scranton, Harrisburg and Williamsport worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect jointly an additional $1.2 million.
The U.S. Attorney’s Office’s Victim Rights and Asset Forfeiture Unit obtained approximately $5.8 million in forfeitures in criminal and civil cases, plus an additional $1.9 million in money judgments not yet collected.
Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for law enforcement purposes.
The office shared approximately $7.3 million in forfeited assets with 26 state and local law enforcement agencies in Fiscal Year 2013. Shared funds, which include forfeited assets deposited in previous years, are used by the state and local agencies to pay for services and needed equipment and supplies.
U.S. Attorney Peter Smith stated that, as an example of the success of the sharing program, in October 2013, nine local and state law enforcement agencies received a total of $2.3 million as their shares of funds forfeited in connection with the investigation and prosecution of an untaxed tobacco case by those agencies, the IRS and the U.S. Attorney’s Office for the Middle District of Pennsylvania during 2012-13.
The agencies included the Scranton, Wilkes-Barre, Hazelton, Dunmore, and Pocono Mountain Police Departments, the Lackawanna County District Attorney’s Office and the Pennsylvania State Police.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of other federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney's Office Announces Collections of $19,891,159 for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
St. Louis, MO - United States Attorney Richard Callahan announced today that for the fiscal year 2013, his office collected $11,448,830 in criminal and civil actions during the year. Of this amount, $10,113,957 was collected in criminal actions and $1,334,873 was collected in civil actions
In addition to the above eleven million dollars, the Office also assisted partner law enforcement agencies in the Eastern District of Missouri in collecting an additional $8,442,329 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Aside from these collection efforts in the Eastern District of Missouri, the office also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect additional monies, but those monies are not included in the numbers being announced.
Earlier today, Attorney General Eric Holder announced that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period."The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people," said Attorney General Holder. "It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment."
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U. S. Attorney’s Office Collects $4,613,846 Through Civil and Criminal Actions in FY 2013Read the Press Release
SALT LAKE CITY - U.S. Attorney David B. Barlow announced Thursday that the District of Utah collected $4,613,846 in Fiscal Year (FY) 2013 related to criminal and civil actions. Of this amount, $2,321,772 was collected in criminal actions and $2,292,074 was collected in civil actions. The U.S. Attorney’s Office is responsible for enforcing and collecting civil and criminal debts owed to the United States and restitution owed to federal crime victims.
The District of Utah also worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $212,138,108 in civil cases pursued jointly with these offices.
The U.S. Attorney’s Office, working with partner agencies, deposited an additional $3,277,685 in asset forfeiture funds into the Department of Justice’s Asset Forfeiture Fund, which is used to restore funds to crime victims and for a variety of law enforcement purposes. The office also paid $253,498 in forfeited funds to crime victims for restitution and shared $645,447 with local law enforcement agencies who participated in the prosecution of federal cases. Asset forfeiture is an effective deterrent to crime and is used to disrupt and dismantle criminal organizations that attempt to profit from their unlawful activity and to restore property to crime victims.
“We take our responsibility to recover funds for the federal treasury and for victims of federal crime very seriously. We will also continue to hold accountable those who seek to profit from their illegal activities,” U.S. Attorney Barlow said today.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and its main litigating divisions.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.
U.S. Attorneys’ Offices, along with Department of Justice litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or a financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections come from affirmative civil enforcements cases, in which the United States recovered government money lost to fraud, fire recovery, or other misconduct or collected fines imposed on individuals or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts are collected on behalf of federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
U. S. Attorney’s Office Collects $14.5 Million in Civil Actions, Criminal Actions & Forfeitures in FY 2013Read the Press Release
BIRMINGHAM – The U.S. Attorney's Office for the Northern District of Alabama collected $2.3 million in Fiscal Year 2013 from criminal and civil actions, and an additional $12.2 million in criminal and civil forfeitures, announced U.S. Attorney Joyce White Vance.
In addition to the $2.3 million the office collected on its own through civil and criminal actions, it worked with other U.S. Attorney's Offices or Justice Department components to collect an additional $184 million in cases pursued jointly. The Northern District of Alabama participated in 2013 collections resulting from the Justice Department's $184 million fair lending settlement with Wells Fargo Bank.
U.S. Attorney General Eric Holder announced today that the Justice Department collected about $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30. The more than $8 billion in collections represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions for the 2013 fiscal year.
"The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” Holder said. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
"I am proud of the hard work by employees in my office that allowed us to return more money to the taxpayer than we were allotted in our budget for the year," Vance said. "The $14.5 million we collected and recovered through forfeitures in local matters, along with the $184 million we worked with other offices and the Justice Department to collect, should leave no doubt that the U.S. Attorney's Office in North Alabama renders a great service to our community," she said.
Of the $2.3 million collected through civil and criminal actions in the Northern District of Alabama alone, $2.1 million was collected as part of criminal prosecutions and $216,562 was recovered through civil lawsuits and debt collections.
Among the cases that led to the office's $12.2 million in asset forfeitures was the conspiracy, fraud and money laundering conviction of Maurice William Campbell Jr. in a scheme to use his position as director of the Alabama Small Business Development Consortium to obtain $7.3 million from the state. A federal judge last year sentenced Campbell to 15 years in prison and ordered him to pay $5.9 million in restitution to the State of Alabama and to forfeit $7.6 million to the federal government as proceeds of illegal activity. The office seized $1.2 million in assets in the 2013 fiscal year towards the forfeiture judgment. Three other people who worked with Campbell were convicted in the fraud scheme.
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S., and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
For further information, the United States Attorneys’ Annual Statistical Reports can be found on the internet at http://www.justice.gov/usao/reading_room/foiamanuals.html
Two More Former Officers and Another Former Lieutenant at Roxbury Correctional Institution Plead Guilty for Conduct Related to the Assault of an InmateRead the Press Release
Edwin Stigile, formerly a Lieutenant at Roxbury Correctional Institution (RCI) in Hagerstown, Md., and two former RCI Correctional Officers, Tyson Hinckle and Reginald Martin, each pleaded guilty to an offense arising out of the assault of an inmate on Mar. 9, 2008. Hinckle pleaded guilty to conspiring to assault an inmate, identified by the initials K.D. Martin pleaded guilty to failing to intervene to stop the assault of K.D. Stigile admitted that he was guilty of destroying evidence related to that assault. Hinckle, Martin and Stigile are the ninth, 10th and 11th former RCI officers to enter a plea in connection with the federal investigation into a series of assaults that K.D. suffered at RCI on Mar. 8-9, 2008.
According to court documents filed in connection with his guilty plea, Hinckle admitted that, during the 7 a.m.-3 p.m. shift on Mar. 9, 2008, that he, Dustin Norris and three other RCI officers assaulted K.D. in order to punish him for striking an officer during a prior shift. Hinckle also admitted that this assault in 2008 was consistent with prior incidents at RCI, where officers from three consecutive shifts would beat an inmate who had previously assaulted an officer. Finally, Hinckle admitted that he and other officers tried to cover up their involvement in, or knowledge of, the assault of K.D.
Martin admitted that, during the 7 a.m.-3 p.m. shift on Mar. 9, 2008, he watched RCI officers assault K.D. Instead of stopping the assault, however, Martin walked out of K.D.’s cell and waited. After some time, Martin heard a supervisor say, “He’s had enough.” The officers then filed out of K.D.’s cell. Later, when investigators began to ask to about K.D.’s injuries, Martin met with officers who had been involved in the beating and agreed to falsely deny any knowledge of an assault of K.D.
Stigile, a former lieutenant, admitted that he used a magnetic device to alter and destroy surveillance videotapes related to RCI officers’ assaults of inmates, including the beating of K.D. Stigile also admitted that, when questioned about K.D. in 2012, he provided false and misleading statements to federal investigators and to a federal grand jury.
“Mr. Hinckle and Mr. Martin have admitted their involvement in an unlawful assault of an inmate, and Mr. Stigile has acknowledged that, as a supervisor, he destroyed evidence related to that assault,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who use their official position to commit and to cover up violations of federal criminal law.”
Stigile faces a statutory maximum penalty of 20 years in prison. Hinckle and Martin each could receive a statutory maximum sentence of 10 years of incarceration. All will be sentenced before U.S. District Judge James K. Bredar, and their sentencing dates are as follows: Stigile will be sentenced Jun. 17, 2014, Hinckle will be sentenced Apr. 7, 2014 and Martin will be sentenced May 15, 2014.
In related cases before Judge Bredar, former RCI Correctional Officers Ryan Lohr, Dustin Norris, Philip Mayo, Jeremy McCusker, Walter Steele, Lanny Harris, Keith Morris and former RCI Lieutenant Robert Harvey each has entered a guilty plea. Four current or former RCI officers still face federal charges in connection with the alleged assault of K.D. Two former RCI officers previously entered guilty pleas in state court.
The investigation by the Frederick Resident Agency of the Federal Bureau of Investigation is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the assistance of Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
Two Former Officers Plead Guilty in Connection with Fraudulent U.S. Army Contracts SchemeRead the Press Release
Investigation focused on Government contracts for radiology equipment and personnel worth millions
In San Antonio this morning, New Braunfels, TX, resident Lawrence Peter Fenti and Manhattan, KS, resident Heidi Lynn Webster pleaded guilty to defrauding the United States in connection with U.S. Army contracts worth millions of dollars for medical equipment and personnel announced United States Attorney Robert Pitman. Fenti is a 43-year-old former non-commissioned officer in charge of Base Realignment and Closure issues for Brooks Army Medical Center (BAMC) radiology. Webster is a 50-year-old former U.S. Army officer physician and civilian contractor who specialized in radiology.
Appearing before Chief U.S. District Judge Fred Biery, Fenti and Webster pleaded guilty to one count of conspiracy and one count of bribery. The conspiracy included intent to: defraud the United States; violate the Government conflict of interest law; commit bribery; commit wire fraud; make false claims against the United States; make false statements to federal authorities; and, commit money laundering.
By pleading guilty, the defendants admitted to conspiring together since 2007 to fraudulently secure multiple Army contracts and sub-contracts for radiology equipment and services by using Fenti’s position of influence, taking advantage of a prime contractor’s non-competitive bidding status, making false statements and fraudulent claims, as well as bribing Army personnel and Army contractors. Those contracts included a $2 million BAMC magnetic resonance imaging (MRI) contract in June 2008, a $4.9 million BAMC MRI contract in July 2008, a $633,406.69 BAMC staffing contract in September 2008, and a $336,600 MRI contract in September 2009 for Womack Army Medical Center at Fort Bragg, NC. Webster also admitted to paying Fenti thousands of dollars for his role in the overall scheme.
“The defendants in this case treated the American taxpayers like their own personal ATMs, rigging bids for government contracts and inflating invoices for radiology equipment and services. This prosecution should send a message to would-be thieves that we are keeping a close watch on government contracting and when we detect fraud we will respond with the full force of the criminal law,” stated U.S. Attorney Pitman.
Per their plea agreements, Fenti and Webster face a maximum six years in federal prison. During the investigation, authorities have seized approximately $500,000, much of which has been forfeited to the Government. In addition, the Government is seeking a monetary judgment against Fenti in the amount of $402,485.35, as well as a $613,828 monetary judgment against Webster, representing the amount of proceeds obtained directly or indirectly as a result of their fraudulent scheme. Sentencing will occur after the completion of a pre-sentence report by the U.S. Probation Office.
A third defendant in this case, 43-year-old John Walter Hoffman, owner/operator of Hoffman Surgical Devices, Inc. in San Antonio, is awaiting trial on charges of conspiracy to commit wire fraud, money laundering, wire fraud and making false statements to U.S. Army authorities. Jury selection is scheduled for March 3, 2014.
This investigation was conducted by the U.S. Army Criminal Investigations Division (Army CID), the Internal Revenue Service--Criminal Investigation (IRS-CI), Defense Criminal Investigative Service (DCIS) and the Federal Bureau of Investigation (FBI). Assistant United States Attorney James Blankinship is prosecuting this case on behalf of the Government.
Two Citizens of Malaysia Sentenced in U.S. District CourtRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that Defendant Rosalina M.T. Gabutin, age 45, was sentenced on January 6, 2014, in the District Court of Guam to serve 48 months in federal prison followed by five years of supervised release for her conviction on multiple counts of bank fraud and aggravated identity theft. Gabutin was also ordered to pay $49,017.17 to the victims of her criminal conduct.
This case was investigated by the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Marivic David.
Gabutin worked as an administrative assistant between 2009 and 2010 with Golden Formosa Jewelry International Guam which rents commercial property. She stole rental payments from her employer’s commercial tenants, forged checks, and negotiated them with financial institutions. She also forged her employer’s signature on some of the checks.
Gabutin was also ordered to serve an additional 10 months in prison for a 2010 bank fraud case on account that she committed the above-referenced new bank fraud and aggravated identity theft crimes while she was on supervised release with the U.S. Probation Office for the prior case.
U.S. Attorney Alicia A.G. Limtiaco stated, “Identity theft and related white collar and financial fraud crimes victimize individuals, financial institutions and merchants. The U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands and the Department of Justice are committed to combating identity theft and other white collar and financial fraud crimes. We will continue to dedicate federal resources effectively to prevent, investigate and prosecute the unlawful use of identifying information. Federal and local law enforcement are committed to protecting our community and consumers against theft, fraud and other related criminal activity.”Triadelphia Resident Sentenced to 27 Months on Federal Firearms ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - A 44-year old Triadelphia, West Virginia, man who was convicted in September of 2013 after a two-day federal jury trial was sentenced by Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, stated that BRIAN BEHRENS was sentenced to 27 months in prison and three years of supervised release, after having been convicted of the felony offense of “Prohibited Person in Possession of a Firearm.” Evidence at trial showed that BEHRENS, who was prohibited from possessing a firearm due to a prior felony conviction in federal court in West Virginia for “Possession of a Firearm and Ammunition after Conviction for Domestic Violence” possessed a loaded Remington Model 700 7MM Caliber Magnum Hunting Rifle in a vehicle on McCutcheon Road in Ohio County while hunting for deer in November of 2012. BEHRENS was approached by a West Virginia Department of Natural Resources officer and initially provided a false name before acknowledging his true identity.
BEHRENS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia DNR Law Enforcement Section.
Treasurer of Charitable Organization Pleads Guilty to Making False StatementsRead the Press Release
ALEXANDRIA, Va. – Sheikh Javed Rehmat, a pharmacist in Little Neck, NY, pleaded guilty today to one count of making false statements relating to a government investigation into violations of the International Emergency Economic Powers Act, the Foreign Agents Registration Act, and a conspiracy to defraud the United States.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; John P. Carlin, Acting Assistant Attorney General for National Security; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Field Office in Washington, D.C. (IRS-CI), made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Rehmat faces a maximum penalty of five years in prison when he is sentenced on July 18, 2014.
In a statement of facts filed with the plea agreement, Rehmat, a treasurer and member of the Board of Directors of the Society for International Help (“SIH”), a 501(c)(3) tax-exempt charity based in New York, admitted to making false statements surrounding financial transactions concerning SIH, as well as another charity – the Kashmiri American Council (“KAC”). Syed Ghulam Nabi Fai, the director of the KAC, was sentenced to serve two years in prison on March 30, 2012, for his role in a conspiracy to conceal that the KAC was funded between 1990 and 2011 with at least $3,500,000 from the government of Pakistan, including the Inter-Services Intelligence Agency (Pakistan’s military intelligence service).
Rehmat also admitted to making false statements surrounding the purchase of over $8,000,000 of shares of stock from Yasin Kadi and/or Muwaffaq Limited – over $3,330,000 of which had been purchased with money that Rehmat had wired from SIH’s accounts to those of another charitable organization in Pakistan. Yasin Kadi has been designated as a Specially Designated Global Terrorist by the U.S. Department of Treasury, Office of Foreign Assets Control, since 2001. Yasin Kadi held these shares through Muwaffaq Limited, which was registered in the Isle of Man.
This investigation is being conducted by the FBI’s Washington Field Office and the IRS Criminal Investigation’s Washington Field Office.
The prosecution is being handled by Assistant U.S. Attorney Gordon Kromberg, Trial Attorney John Gibbs of the Counterterrorism Section of the Justice Department’s National Security Division, and Special Assistant U.S. Attorney Allison Ickovic from the Justice Department’s Tax Division.
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.Torrington Resident Admits Role in Real Estate Fraud Schemes, Obstructing JusticeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THOMAS PROVENZANO, 47, of Torrington, waived his right to indictment and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to multiple conspiracy offenses stemming from his involvement in a series of fraudulent real estate transactions.
According to court documents and statements made in court, in November 2005, PROVENZANO obtained a $923,200 loan to purchase a lakefront home located at 27 Palmer Road in Morris for more than $1.1 million, despite lacking the income and savings to pay off the mortgage. The property was owned by an entity controlled by a co-conspirator and, on the mortgage loan application, PROVENZANO falsely listed his employment with a company owned by his co-conspirator. In fact, PROVENZANO never worked at the company. The application also falsely listed PROVENZANO’s income as $20,000 per month when, in fact, his annual income was less than $50,000. The company subsequently provided verification for the false employment and income information on the loan application.
In November 2006, PROVENZANO refinanced the loan, obtaining a $936,000 mortgage from a federally insured bank. The new loan application, like the prior application, falsely listed PROVENZANO as employed by the same company as in the original loan application, and falsely listed his monthly income as $28,000, equal to $336,000 annually. The company again provided verification for the false information on the loan application.
The loan is now in default, and the Palmer Road property is now in foreclosure.
In May and June 2010, PROVENZANO and the same co-conspirator learned that the FBI and IRS were investigating the real estate and mortgage transactions involving the Palmer Road property. Among other things, the federal agents were examining a discrepancy in the closing documents, which showed that PROVENZANO had been obligated to make a down payment of approximately $249,000, but had never paid it. PROVENZANO and his co-conspirator met and created a false promissory note in the amount of approximately $249,000, and backdated the note to November 2005, to serve as an explanation of why the $249,000 down payment had never been paid at the closing. In June 2010, PROVENZANO agreed to be interviewed by the FBI and IRS. During the interview he falsely claimed that he had not needed to make the down payment in November 2005 because he had signed a promissory note to the seller for the same amount. Later that same month, PROVENZANO met with the FBI and IRS agents and provided them with a copy of the false, backdated promissory note.
As part of a separate conspiracy, in December 2009 and January 2010, PROVENZANO, the same co-conspirator and others engaged in a series of discussions about how to defraud a title insurance company. According to the discussions, the scheme involves a real property sale based on a deliberately defective title search, where one or more liens on the property are deliberately omitted from the title search report. After the property is sold and title insurance is issued, the conspirators arrange an event that triggers a new title search, such as a resale of the property. The “overlooked” liens turn up, providing the conspirators with a legal claim against, and a large payout from, the title insurer.
The conspirators attempted the scheme on a property held in the name of an entity controlled by PROVENZANO’s co-conspirator located at 66 Donahue Road Extension in Litchfield. PROVENZANO assisted in a title search of the property in January 2010, but then ceased to participate in the scheme. The property was later sold in March 2010 to his co-conspirator’s brother, and title insurance was issued based upon a defective title search. Three liens against the property, totaling approximately $990,000, had been deliberately omitted from the title search report.
PROVENZANO pleaded guilty to one count ofconspiracy to commit bank fraud, one count of conspiracy to obstruct justice and one count of conspiracy to commit mail and wire fraud. Judge Arterton scheduled sentencing for April 14, 2014, at which time PROVENZANO faces a maximum term of imprisonment of 55 years.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel.
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(203) 821-3722 [email protected]Three Permian Basin Business Owners and Title Company Executive Indicted in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
Federal authorities have arrested three Permian Basin business owners and a title company executive charged in connection with a mortgage fraud scheme that involved approximately 800 real estate properties and about $45 million in loans announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
A two-count indictment, returned yesterday and unsealed this afternoon, charges 58–year-old Stephen Mark Hilliard, owner of Comeback Properties, LLC, Hilliard Properties, LLC, SMH Properties, LTD, and Katpast Enterprises, LP; 42-year-old Michael Duraine Cowan, II, owner of TLC Properties, LLC, and MCBW Properties, LTD; 61-year-old Odessa real estate agent Cynthia Gayle Hirsch; and, 55-year-old Berta Laura McFaddin, Division Vice President of Administration for Stewart Title Company in Midland, with one count of conspiracy to commit bank fraud. Hilliard and Cowan are also charged with one count of conspiracy to commit money laundering.The indictment alleges that from March 2003 until August 2011, the defendants were allegedly involved in a fraudulent “same-day property flip” scheme. According to the indictment, defendants Hilliard and/or Cowan would purchase a specific property utilizing one of their respective investment companies, then re-sell the same property on the same day at an “inflated” sales price to another Hilliard and/or Cowan investment company. Hilliard and/or Cowan obtained mortgage loans by submitting to the bank fraudulent and misleading documentation created by the defendants and without disclosing to the bank the initial sale of the property.
Upon conviction, each defendant faces up to 30 years in federal prison for bank fraud conspiracy. Hilliard and Cowan also face up to 20 years in federal prison upon conviction of money laundering conspiracy. The indictment also seeks a $27 million monetary judgment against the defendants representing the alleged proceeds derived from their fraudulent scheme.
Yesterday’s arrests and indictment resulted from an investigation conducted by the Federal Bureau of Investigation together with the Texas Department of Insurance. “This investigation demonstrates our commitment to the community of Midland that this type of crime will not be tolerated and will be aggressively investigated,” stated FBI SAC Douglas E. Lindquist.
Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
The United States Attorney's Office for the Eastern District of Washington Collects over $3,463,400.00 in Civil and Criminal Actions for U.S. Tax Payers in Fiscal Year 2013Read the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that his office collected $3,463,490.16 in civil and criminal actions in the Fiscal Year ending September 30, 2013. Of this amount, his office collected $2,552,474.86 in civil actions and $911,015.30 in criminal cases. Mr. Ormsby also announced that during this same period his office worked with components of the Department of Justice and other United States Attorney's Offices to collect an additional $201,901,500.00 in civil actions pursued jointly.
In addition, United States Attorney General Eric Holder announced today that the United States Department of Justice collected approximately $8.1 billion in civil and criminal actions during the same Fiscal Year 2013. The more than $8 billion in collections in Fiscal Year 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 United States Attorney's Offices and the Department of Justice's main litigating divisions in that same period.
The U.S. Attorneys' Offices, along with the Department of Justice's litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department's Crime Victims' Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
"The Department's enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer," said Attorney General Holder. "It is critical that Congress provide the resources necessary to match the Department's mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment."
Michael C. Ormsby said, "Attorneys and staff in my office are fully committed to collecting funds owed to victims of crime and to agencies of the federal government through on-going efforts to collect restitution from criminals, debts owed to agencies of the federal government for money borrowed or fines levied and money from government contractors and others who are found to have defrauded the government. The United States Attorney's Office for the Eastern District of Washington will continue to prioritize its collection efforts, particularly in these tight financial times." Mr. Ormsby went on to identify, by way of just one example of the successful collection efforts in the Eastern District of Washington, "the $18,500,000.00 that was collected during Fiscal Year 2013from CH2M Hill, a contractor at the Hanford Nuclear Reservation."
The $18,500,000.00 referred to by Mr. Ormsby relates to a matter the United States Attorney's Office for the Eastern District of Washington pursued jointly with the Department of Justice's Civil Frauds component (included above as part of the jointly pursued civil actions). This collection resulted from the settlement of an investigation of fraudulent time card practices. The investigation was conducted by the Office of Inspector General of the Department of Energy with early participation from the United States Attorney's Office, and supported by crucial assistance and support from the Federal Bureau of Investigation and the Civil Frauds component of the Department of Justice. This was the largest civil settlement for fraudulent activity by a contractor at the Hanford site ever achieved in Eastern Washington. The settlement also included provisions aimed to reduce the possibility of fraud in future practices by this contractor and all other contractors working at the Hanford site.
The Southern District of Iowa U.S. Attorneys Office Collects More Than $5.6 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
DES MOINES, IA - U.S. Attorney Nicholas A. Klinefeldt announced today that the Southern District of Iowa collected $5,607,017.30 in criminal and civil actions in Fiscal Year 2013. Of this amount, $4,094,883.39 was collected in criminal actions and $1,512,133.91was collected in civil actions.
Additionally, the Southern District of Iowa worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $4,108,435.35 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Southern District of Iowa, working with partner agencies and divisions, collected $2,377,955 in administrative and judicial asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. $862,737 in forfeited assets was returned to victims during FY 2013, and $543,406 was equitably shared with state and local law enforcement agencies.
(Download Press Release )
Texas Woman, Ebony Williams White, Indicted on Wire Fraud and Obstruction ChargesRead the Press Release
EBONY WILLIAMS WHITE, age 33, a resident of Katy, Texas, was charged in a seven count wire fraud and one count of obstruction indictment for wire transferring $207,135 without authorization into her personal bank account from her employer’s bank accounts, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to the indictment, WHITE was employed by Jefferson Community Health Care Centers, Inc. in Marrero, Louisiana, from February 2008 until March 2010, eventually attaining the position of Chief Financial Officer (“CFO”). Once in the position of CFO, WHITE devised a scheme to fraudulently transfer funds from her employer’s bank accounts into a separate bank account she controlled. WHITE wire transferred the unauthorized funds to a different bank than the one she identified and used for the bi-weekly payroll checks to which she was entitled.
When WHITE learned that federal charges against her were contemplated for the fraudulent wire transfers, she attempted to obstruct the investigation by submitting to the government a document which, if authentic, would have potentially entitled her to receive $137,000 plus bonuses for work over and above what was required of her as CFO. Other individuals allegedly authorizing the additional funds in the document provided by WHITE denied that an agreement ever existed for WHITE to receive any funds in addition to her bi-weekly pay check as CFO.
If convicted, WHITE faces a maximum term of imprisonment of one hundred and sixty (160) years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, The Louisiana Legislative Auditor’s Office and the United States Attorney’s Office. The case is being prosecuted by Special Assistant United States Attorney Juliana A. Etland.
(Download Indictment )
Tax Return Preparer Charged in 43-Count Tax Fraud IndictmentRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Fuada Delic (31, Jacksonville) with tax fraud. Delic, who owned a tax preparation business (“Delica’s Tax Service”), is charged with 2 counts of filing fraudulent tax returns, on her own behalf, and 41 counts of filing fraudulent tax returns on behalf of her business customers. If convicted, she faces a maximum penalty of 3 years’ imprisonment per count.
According to the indictment, on or about April 14, 2009 and September 28, 2010, Delic filed personal tax returns in which she underreported the income that she received from the tax preparation business. The indictment also alleges that Delic filed tax returns for customers in which she falsely claimed, among other things, that they had incurred educational expenses, tax credits, and charitable contributions for which they were entitled to tax deductions. The filed returns span the 2008, 2009, and 2010 tax years.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Statement of Spokesman James M. Margolin for United States Attorney's Office for the Southern District of New York Re: United States V. Devyani KhobragadeRead the Press Release
"This Office had been advised by the State Department that, pursuant to their request, Devyani Khobragade was to have left the United States this afternoon. In a letter sent to the Court upon the filing of the Indictment of Ms. Khobragade, we stated our understanding that she had left the country. Subsequent to the filing of the letter, Ms. Khobragade’s lawyer advised that she has not, in fact, departed the U.S."
St. Joseph Sex Offender Sentenced for Illegally Reentering U.S.Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man who is a citizen of Mexico and a registered sex offender, was sentenced in federal court today for illegally reentering the United States after being deported to Mexico.
Raul Guadalupe Ocon-Marin, 32, of St. Joseph, was sentenced by U.S. District Judge Fernando J. Gaitan to two years and six months in federal prison without parole.
On Sept. 20, 2013, Ocon-Marin pleaded guilty to illegally reentering the United States.
Ocon-Marin was born in Mexico and was admitted into the United States as a lawful permanent resident as the child of a U.S. citizen. According to court documents, Ocon-Marin was convicted in Iowa in 2004 of sexual abuse for having sexual intercourse with a 15-year-old girl. The girl became pregnant but miscarried the child. Ocon-Marin’s legal status was revoked and he was deported to Mexico on Feb. 16, 2005.
The Buchanan County, Mo., Sheriff’s Department was provided with information that Ocon-Marin was illegally residing in St. Joseph. On Jan. 13, 2013, deputies arrested Ocon-Marin for failing to register as a sex offender. Ocon-Marin was convicted on Feb. 14, 2013, in Buchanan County Circuit Court. He was released on parole on June 7, 2013, and taken into federal custody.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Southern District of Georgia’s U. S. Attorney’s Office Collects over $71 Million in Civil, Criminal and Asset Forfeiture Cases in Fiscal Year 2013Read the Press Release
SAVANNAH, GA - U. S. Attorney Edward Tarver announced today that the Southern District of Georgia collected over $71 million in civil, criminal and asset forfeiture actions in Fiscal Year (FY) 2013. The Office collected $31,621,385.97 in criminal and civil actions in FY 2013. Of this amount, $29,153,117.82 was collected in criminal actions and $2,468,268.15 was collected in civil actions. Additionally, the Office, working with partner federal agencies, collected $40,435,520.24 in asset forfeiture actions in FY 2013.
U. S. Attorney Tarver stated, “The amount of money collected in criminal, civil and asset forfeiture actions by the men and women of the United States Attorney’s Office in FY 2013 is by far the largest collection year in the Office’s history. The amounts collected dwarf the Office’s yearly budget. In other words, this Office earns its keep and then some.”
Additionally, Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U. S. Attorney’s Offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
The U. S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U. S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Southern District of Florida U.S. Attorney’s Office Collects More Than $94 Million in Civil and Criminal Actions in Fiscal Year 2013Read the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announced today that the Southern District of Florida collected $70,006,305.57 in criminal and civil actions in Fiscal Year (FY) 2013. Of this amount, $33,136,076.16 was collected in criminal actions and $36,870,229.41 was collected in civil actions. The office also collected $24,327,589 in criminal and civil forfeitures. Total, during FY 2013, our office collected $94,333,894.57 related to criminal and civil actions and forfeitures – more than double the appropriated budget of our office.
Additionally, the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $272,476,057.95 in cases pursued jointly with these offices. Of this amount, $5,523.71 was collected in criminal actions and $272,470,534.24 was collected in civil actions.
U.S. Attorney Wifredo A. Ferrer stated, “I am proud of the men and women of our office who work hard to secure restitution for crime victims and recover monies for the U.S. taxpayers. They work hard not only to protect the people of this great country of ours, but to ensure that criminals do not profit from their crime. Today’s numbers reflect that the U.S. Attorney's Office collects substantially more money than it spends and provides the taxpayers with an excellent return on their investment.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Southern District of Florida, working with partner agencies and divisions, collected $24,327,589 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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.
Southern California Doctor Sentenced to over 3 Years in Prison for Medicare Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Dr. Emilio Louis Cruz III, 61, of Carson, Calif., was sentenced today by United States District Judge Morrison C. England Jr. to three years and two months in prison and ordered to pay $601,581 in restitution for his role in a conspiracy to commit Medicare fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Cruz earned an undergraduate degree from Johns Hopkins University and his medical degree from Yale University. He held medical licenses in three states and was board certified in neurology. According to his plea agreement and the testimony heard at the trial of Cruz’s co-defendants, doctors Ramanathan Prakash, Alexander Popov, and Lana LeChabrier, and a man named Vardges Egiazarian owned and controlled three health care clinics in Sacramento, Richmond, and Carmichael from February 2006 through August 2008. Over this time period, Cruz ran the practice at the Carmichael clinic on 3609 Mission Avenue. He established a Medicare provider number for the clinic and established a bank account into which Medicare funds were deposited. Hundreds of claims were submitted to Medicare seeking reimbursement for services allegedly performed at the Carmichael clinic under Cruz’s care. Cruz, however, never treated a single patient. Indeed, during the majority of the time that the Carmichael clinic operated, he was living and practicing in North Dakota. A similar pattern was followed at the other two clinics operated by Egiazarian, and not one of the physicians submitting bills to Medicare ever treated a single patient.
According to evidence at trial, the clinic’s patients were primarily elderly and non-English speaking. They were recruited and transported to the clinics by individuals who were paid according to the number of patients they brought to the facilities. Rather than being charged a co-payment, the patients were paid for their time and the use of their Medicare eligibility, generally $100 per visit. False charts were created stating that each patient received comprehensive exams and a broad array of diagnostic tests. Few of these tests were ever performed, none were performed based on any medical need, and clinic employees filled out other portions of the charts using preprinted templates. Some clinic employees admitted to performing various tests on themselves, and placing the results in patient files.
In all, the three clinics submitted more than $5 million worth of fraudulent claims to Medicare, $1.7 million of which was actually paid. With respect to claims submitted for services purportedly provided by Cruz at the Carmichael clinic, Medicare paid $601,581.
The only defendants to go to trial, doctors Prakash, Popov, and LeChabrier, were found guilty by a jury on July 8, 2011, of conspiracy to commit healthcare fraud and various counts of healthcare fraud.
This case is the product of an investigation by the Office of the Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation. Assistant United States Attorneys Philip Ferrari and Jean M. Hobler are prosecuting the case.
Others who were charged in this matter include:
- Ramanathan Prakash, a doctor involved with the Sacramento clinic, is currently serving 10 years in prison.
- Lana LeChabrier, a doctor involved with the Richmond clinic is currently serving six and a half years in prison.
- Vardges Egiazarian pleaded guilty early in the case and has served his six and a half years sentence.
- Alexander Popov, a doctor involved with the Sacramento clinic, is currently serving eight years and one month in prison.
- Nazaret Salmanyan, an unlicensed ultrasound technician who worked at all three clinics, pleaded guilty and on November 14, 2013, was sentenced to 20 months in prison.
- Derrick Johnson, a doctor involved with the Richmond clinic, pleaded guilty and is awaiting sentencing.
- Zoya Belov, a nurse licensed in Russia but not the United States who worked at all three clinics, pleaded guilty and is awaiting sentencing.
- Liw Jiaw Saechao, aka Jenny Saechao, recruited patients, pleaded guilty, and is awaiting sentencing.
- Migran Petrosyan, a co-owner of the Richmond clinic, pleaded guilty, and on December 5, 2013, was sentenced to 27 months in prison.
- Shushanik Martirosyan, a medical biller who submitted claims to Medicare for all three clinics, pleaded guilty and on October 24, 2013, was sentenced to 18 months in prison.
South Dakota U.S. Attorney's Office Helped Collect over $24 Million for Taxpayers in Fiscal Year 2013Read the Press Release
United States Attorney Brendan V. Johnson announced today that the U.S. Attorney’s Office in South Dakota collected over $2.8 million in Fiscal Year (FY) 2013 from civil and criminal actions. Of this amount, over $2.1 million was collected in criminal actions and over $673,000 was collected in civil actions.
Additionally, the District of South Dakota worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $21.7 million in civil actions that were pursued jointly.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“In these times of fiscal uncertainty, the revenue generated from these collections becomes increasingly more important,” said U.S. Attorney Johnson. “U.S. Attorneys’ Offices not only protect the public, but also collect more money on behalf of the American taxpayer than they spend.”
The most significant joint recovery case was Cyprus Mines Corporation, which resulted in over $18 million being collected for the U. S. Department of Treasury. The Homestake Mining case was the second largest recovery for the District of South Dakota, with an amount in excess of $3.7 million.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
Shreveport Man Sentenced to 10 Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced thatAnthony Larance Williams, 36, of Many, La., was sentenced Wednesday by U.S. District Judge Maurice S. Hicks Jr. to 42 months in federal prison and three years of supervised release for possession with intent to distribute methamphetamine. Williams pleaded guilty on July 24, 2013.
According to evidence presented at the guilty plea, members of the U.S. Marshal’s Service Task Force arrested Williams and three others at a casino hotel in Shreveport on June 20, 2012. During the arrest, agents discovered methamphetamine, drug paraphernalia, two handguns, ammunition, and body armor in the hotel room.
The Louisiana State Police, U.S. Marshal’s Service Task Force, U.S. Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Sentencing for January 03 - 06, 2014Read the Press Release
Jose Alonso Bedolla-Vasquez, 22, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 6, 2014, for illegal re-entry of a previously deported alien into the United States. Bedolla-Vasquez was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Mariano Flores-Sosa, 27, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 6, 2014, for illegal re-entry of a previously deported alien into the United States. Flores-Sosa was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jose Enrique De Lara, 33, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 6, 2014, for illegal re-entry of a previously deported alien into the United States. De Lara was arrested in Casper, Wyoming. He received 12 months plus one day imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Justin J. Sadler, 27, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 6, 2014, for being a felon in possession of a firearm. Sadler was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by three years supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jonathon D. Wright, 32, of Laramie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 3, 2014, for conspiracy to possess with intent to distribute 112 grams of methamphetamine. Wright was arrested in Laramie, Wyoming. He received 70 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Albany County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Second Defendant Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Daniel C. Alexander, Chief, Boca Raton Police Department, announce that defendant Brandon James, of Miami, pled guilty today for his participation in a stolen identity tax refund scheme. Sentencing is scheduled for March 26, 2014 at 9:00 a.m. before Senior U.S. District Judge Daniel T.K. Hurley.
Specifically, James pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; one count of theft of government funds, in violation of Title 18, United States Code, Section 641; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. At sentencing, the defendant faces a maximum of five years in prison for the conspiracy charge, a maximum of ten years in prison for the theft of government funds charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
According to court documents, James and co-defendant Laron Lanece Larkin were involved in a scheme to unjustly enrich themselves by obtaining income tax refunds to which they were not entitled. The defendants and their co-conspirators submitted false income tax returns in the names of individuals without their knowledge or consent. To receive the fraudulent refunds, James and a co-conspirator purchased debit cards at a convenience store with stolen identity information, such as names, dates of birth and Social Security account numbers belonging to real persons. Based upon the false income tax returns submitted, the lRS sent the income tax refunds electronically to the pre-purchased debit cards. The defendant admitted that he cashed-out the monies electronically transferred to the debit cards by making point of sale purchases and cash withdrawals from automatic teller machines at various locations within Broward and Palm Beach counties. The actual loss sustained by the U.S. Treasury in connection with this scheme is in excess of $43,000.
Laron Lanece Larkin, of Miami, was sentenced on October 7, 2013 to 36 months and one day in prison, to be followed by three years of supervised release. Larkin pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI, and the Boca Raton Police Department. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
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.
Second Conspirator Pleads Guilty in $2 Million Credit Card Fraud SchemeRead the Press Release
Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces that Sirrico Lewis (42, Orlando) today pleaded guilty to access device fraud. He faces a maximum penalty of 15 years in federal prison and a 3-year term of supervised release, following his incarceration. A sentencing date has not yet been set.
According to court documents, Lewis and others engaged in a scheme to defraud several Central Florida area Sam’s Clubs and Wal-Mart stores through the fraudulent acquisition and use of duplicate Sam’s Club credit cards. To facilitate the scheme, a conspirator would manufacture counterfeit identification documents of existing Sam’s Club customers. Lewis and others obtained those counterfeit documents, took them to various Sam’s Clubs, and used them to obtain duplicate credit cards on existing accounts.
They then used those credit cards to make fraudulent purchases at area Sam’s Club and Wal-Mart stores, or turned the cards over to another conspirator who either made fraudulent purchases or got another person to do so. The fraudulently purchased items would then be sold, with the proceeds from those sales being divided amongst the conspirators. The total amount of actual loss suffered by the victims of this scheme is over $2 million. Of that amount, Lewis was involved in over $750,000 worth of fraudulent transactions.
Lewis is the second individual to plead guilty in this case. On October 30, 2012, Reginald Holley (36, Winter Garden) pleaded guilty to access device fraud. On January 14, 2013, he was sentenced to 46 months in federal prison. A third co-conspirator, Brenda Shoukry, (63, of Orlando) has been charged with the same offense, by criminal complaint. A criminal complaint is merely a charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the United States Secret Service. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
Santa Clara Pueblo Man Sentenced to Forty-Two Months in Prison for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – James Allen Moquino, 32, a member of Santa Clara Pueblo, N.M., was sentenced this afternoon to 42 months in federal prison followed by three years of supervised release for his assault conviction, announced Acting U.S. Attorney Steven C. Yarbrough and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Moquino was arrested on July 5, 2013 based on an indictment charging him with assaulting a woman and causing her serious bodily injury. According to the indictment, Moquino committed the crime on Nov. 21, 2010, in Indian Country within Rio Arriba County.
On Sept. 30, 2013, Moquino entered a guilty plea to the indictment and admitted that he assaulted his intimate partner and the mother of his child by repeatedly striking her in the head and face causing her to suffer serious bodily injury. Moquino further admitted that the assault occurred within Santa Clara Pueblo.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Special Assistant U.S. Attorney David M. Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Santa Barbara Doctor Known as ‘Candy Man’ Pleads Guilty to Illegally Writing Prescriptions for Huge Quantities of Dangerous NarcoticsRead the Press Release
SANTA ANA, California – A Santa Barbara physician was remanded into custody this morning after he pleaded guilty to 11 federal drug trafficking charges for writing prescriptions for powerful painkillers for “patients” who were drug addicts.
Julio Gabriel Diaz, 65, who operated the Family Medical Clinic in Santa Barbara prior to his arrest two years ago, pleaded guilty to 10 counts of distributing controlled substances without a legitimate medical purpose and one count of distributing controlled substances to a minor (which, under federal law, is a person under 21).
Diaz pleaded guilty before United States District Judge Cormac J. Carney, who is scheduled to sentence the defendant on June 2. Diaz, who will be held in jail until his sentencing, faces a maximum statutory sentence of 200 years in federal prison and fines of up to $10 million.
“Dr. Diaz was, quite simply, acting as a common drug dealer,” said United States Attorney André Birotte Jr. “The diversion of powerful painkillers from legitimate medical uses to the hands of drug abusers is a dangerous practice that fuels addiction and causes overdoses. Far too many of the illegal prescription drugs that find their way to street users come from doctors who, like Julio Diaz, choose to betray their Hippocratic oath.”
In a plea agreement filed last year in United States District Court, Diaz admitted distributing narcotics such as oxycodone, methadone, hydrocodone, alprazolam, fentanyl and hydromorphone in 2009 and 2010. Diaz admitted that he distributed or dispensed the narcotics “while acting and intending to act outside the usual course of professional practice and without a legitimate medical purpose.”
Court documents previously filed in this case, as well as civil lawsuits, link Diaz to fatal drug overdoses. However, he was not specifically charged with causing any deaths, nor did he specifically admit causing any deaths during today’s hearing.
The investigation into Diaz was conducted by the Drug Enforcement Administration and the Santa Barbara Police Department, which received the assistance of the California Medical Board.
Release No. 14-001
Sacramento Men Plead Guilty to Attempted Enticement of A MinorRead the Press Release
SACRAMENTO, Calif. — Nicholas Perry, 36, of Sacramento, and Eric Johnston, 23, of Folsom, pleaded guilty today to attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 29, 2012, an undercover detective with the Sacramento Internet Crimes Against Children (ICAC) task force responded to a Craigslist advertisement posted by Brandon Marks in which Marks sought to acquire children’s underwear. After a week of online and cellphone communications, Marks agreed to meet the undercover detective in order to have sex with the detective’s fictional 13-year-old child.
Following his arrest, Marks allowed law enforcement to assume his online identity. One of the people with whom Marks was communicating with was Perry. Prior to meeting with law enforcement, Marks had told Perry through email that he was “meeting a dad and his daughter and taking pics ;).” After assuming Marks’s identity, law enforcement (posing as Marks) offered to introduce Perry to the daughter. Perry communicated with Johnston about the meeting and offered to introduce Johnston to the fictional father.
After being introduced, each defendant communicated directly via email with law enforcement about the fictional 13-year-old. Perry and Johnston agreed to meet Marks, the father, and his daughter in order to have sex with the daughter.
Following his arrival at the meeting location, Johnston was arrested. After his arrest, Johnston received a text message from Perry asking if he was there. Law enforcement responded to Perry (posing as Johnston), and told Perry that he had arrived and that he was waiting with the father and daughter. Perry arrived approximately 45 minutes later and was arrested. Both defendants have been in federal custody since their arrest.
Marks pleaded guilty to attempted enticement of a minor and was sentenced to 12 years in prison in May 2013.
Perry and Johnston are scheduled to be sentenced on April 3, 2014. They each face a statutory penalty of no less than 10 years and up to life in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Kyle Reardon is prosecuting the case.
This case s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.Rosalina Marie Tudela Gabutin Sentenced in U.S. District CourtRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that Defendant Rosalina M.T. Gabutin, age 45, was sentenced on January 6, 2014, in the District Court of Guam to serve 48 months in federal prison followed by five years of supervised release for her conviction on multiple counts of bank fraud and aggravated identity theft. Gabutin was also ordered to pay $49,017.17 to the victims of her criminal conduct.
This case was investigated by the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Marivic David.
Gabutin worked as an administrative assistant between 2009 and 2010 with Golden Formosa Jewelry International Guam which rents commercial property. She stole rental payments from her employer’s commercial tenants, forged checks, and negotiated them with financial institutions. She also forged her employer’s signature on some of the checks.
Gabutin was also ordered to serve an additional 10 months in prison for a 2010 bank fraud case on account that she committed the above-referenced new bank fraud and aggravated identity theft crimes while she was on supervised release with the U.S. Probation Office for the prior case.
U.S. Attorney Alicia A.G. Limtiaco stated, “Identity theft and related white collar and financial fraud crimes victimize individuals, financial institutions and merchants. The U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands and the Department of Justice are committed to combating identity theft and other white collar and financial fraud crimes. We will continue to dedicate federal resources effectively to prevent, investigate and prosecute the unlawful use of identifying information. Federal and local law enforcement are committed to protecting our community and consumers against theft, fraud and other related criminal activity.”Rochester Gang Member Sentenced on Gun and Drug ChargesRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Anthony Kellum, a/k/a Nitti, 26, of Rochester, N.Y., who was convicted of conspiracy to possess with intent to distribute and distribution of 28 grams or more of cocaine base, and possession of firearms in furtherance of a federal drug trafficking crime, was sentenced to 147 months in prison by U.S. District Judge Frank P. Geraci, Jr. Kellum was also ordered to forfeit two firearms and rounds of ammunition seized during the investigation.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Kellum and other members of a Rochester gang known as “Coke City” were involved in obtaining large quantities of powder cocaine. The defendant and other gang members then processed the powder into crack cocaine and then sold it from various locations on the West Side of Rochester. Kellum and other Coke City members routinely possessed firearms for protection in connection with their crack cocaine distribution.
The defendant was arrested June 13, 2013 after officers executed a search warrant at his residence, an apartment at 35 Stratford Park in Rochester. The search netted 21 bags of crack cocaine, 231 grams of powder cocaine, a loaded .40 caliber rifle, a stolen and loaded .45 caliber pistol, scales, baggies, and other paraphernalia for processing and distributing crack cocaine.
Kellum was one of five defendants arrested in this case. All five have been convicted.
The sentencing is the culmination of an investigation on the part of investigators with the Rochester Police Department, under the direction of Acting Chief Michael Ciminelli, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Scott Heagney, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.Pine Ridge Woman Sentenced for Conspiracy to Distribute CocaineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on January 6, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Tricia Lee Pond, a/k/a Trish Pond, age 42, was sentenced to 60 months in custody, 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Pond was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on April 16, 2013. She pled guilty on September 6, 2013.
Between 2009 and April 2013, Pond would travel from South Dakota to Denver, Colorado, to obtain marijuana and cocaine for further distribution. Pond would deliver ounce quantities of cocaine to others, and it is reasonable that she distributed more than 500 grams of cocaine on and around the Pine Ridge Indian Reservation.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Ted L. McBride and Special Assistant U.S. Attorney Laura A. Shattuck prosecuted the case.
Pond was immediately turned over to the custody of the U.S. Marshals Service.
Pierre Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, man charged with Assaulting, Resisting, or Impeding a Federal Officer pled guilty and was sentenced on January 8, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Glen Trudell, Jr., age 31, was sentenced to 12 months of custody, 12 months of supervised release, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on August 18, 2013, when two Deputy U.S. Marshals were returning to Pierre from working on a federal fugitive operation. Around 5:00 a.m. that day, the Pierre Police Department received a call from a woman reporting that Trudell was at her residence causing damage. Due to the nature of the call, the deputy marshals went to monitor the location while the Pierre Police Department made contact with the woman. The deputies observed Trudell digging through a duffel bag outside the apartment. Trudell saw the deputies, yelled at them to get out of their vehicle, and began to approach them. The deputies identified themselves to Trudell as police and told him to stop. The deputies were wearing law enforcement clothing, duty gear belts, and badges. When the deputies exited the vehicle, Trudell was within several feet of them. Trudell had his hands in his pockets and was ordered to remove them. He did not initially comply, but when he did, one of the deputies observed brass knuckles on his right hand in a closed fist. The deputy yelled “brass knuckles,” reached for his pepper spray, and deployed it in Trudell’s eyes for one second from about six feet away.
The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Kathryn Rich and First Assistant U.S. Attorney Randolph Seiler.
Trudell was remanded to the custody of the U.S. Marshals Service.
Philadelphia Man Charged with Theft of Social Security BenefitsRead the Press Release
An indictment was unsealed today charging Bernard Lopez, 57, of Philadelphia, with theft of government funds for allegedly taking, for his own benefit, the Social Security Administration benefits check issued to another person, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a statutory maximum sentence of 10 years in prison, a fine of up to $250,000, a $100 special assessment, and up to three years of supervised release.
The case was investigated by the Social Security Administration Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Richard Barrett.
Click here to view the indictment
An Indictment, Information or 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, 215-861-8525Pharmacist Charged with Paying More Than $50,000 in Kickbacks to Doctor for Prescription ReferralsRead the Press Release
NEWARK, N.J. – A pharmacist with a compounding pharmacy in Lakewood, N.J., was arrested today and charged with paying more than $50,000 to a Toms River, N.J., physician to induce the doctor to make prescription referrals to the pharmacy, U.S. Attorney Paul J. Fishman announced.
Vladimir Kleyman, 42, of Lakewood, N.J., the president and pharmacist in charge of Prescriptions R US – a compounding pharmacy in Lakewood – was charged with violating the Anti-Kickback Statute by using a middle-man to provide repeated cash payments – totaling at least tens of thousands of dollars – to a N.J. physician over the course of several months. Kleyman appeared before U.S. Magistrate Judge James Clark III in Newark federal court this afternoon.
According to the Complaint unsealed today:
Beginning in February 2013, Kleyman provided one of his employees with at least $50,000 in cash or checks to provide bribes to the physician to refer prescriptions for a compounded pain cream to Prescriptions R US. Pharmacy compounding describes the preparation of medication, using different types and dosages of drugs, in order to provide more personalized medications for patients. The compounded pain cream prepared by Prescriptions R US in this case contains several components, including ketamine (a Schedule III non-narcotic), lidocaine, and diclofenac.
A computer-generated document prepared by Kleyman or someone working with him, and purporting to reflect the names of 63 patients for whom prescriptions for the pain cream had been sent by the bribed physician referenced in the complaint, included at least 33 Medicare beneficiaries for whom Prescriptions R US had received reimbursement from Medicare for prescriptions referrals from the bribed physician. In 2013, Prescriptions R US obtained more than $40,000 from Medicare alone in connection with filling prescriptions for the bribed physician referenced in the complaint – separate and apart from additional money Prescriptions R US obtained from other health care insurance providers.
In a series of meetings in November and December 2013, the unidentified employee received more than $50,000 in cash or checks from Kleyman or Kleyman’s spouse – who also works at Prescriptions R US – with the understanding that the bulk of that money would be used to bribe the physician to make prescription referrals to Prescriptions R US.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the ongoing investigation leading to today’s charges.The government is represented by Assistant U.S. Attorney Jane Yoon and Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $520 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
14-011Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Kleyman Complaint