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8 January 2014
Commercial Fisherman Sentenced to 15 Months for Obstruction and False StatementsRead the Press Release
PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced thatThomas Zachary Breeding, 29, of Panama City, Florida, was sentenced today by U.S. District Court Judge Richard Smoak to 15 months in prison for obstruction of justice and making false statements to the National Oceanic and Atmospheric Administration (“NOAA”).
In October, Breeding pleaded guilty to the charges, which related to his illegal commercial fishing in The Edges Closed Area of the Gulf of Mexico (the “Edges”). The Edges is an area of the Gulf southwest of Panama City that is closed to commercial fishing annually from January 1 to April 30. The Edges is closed to commercial fishing to protect the spawning season for gag grouper and ensure the continued viability of the grouper fishery in the Gulf.
Breeding was the captain of The Wolf commercial fishing vessel, based out of Panama City. On January 9, 2012, NOAA’s Vessel Monitoring System (“VMS”) in St. Petersburg, Florida detected The Wolf inside The Edges. NOAA immediately notified Breeding that he had unlawfully entered The Edges, warned him not to again breach the area, and reminded him of The Edges coordinates.
Just one week later, on January 17, 2012, a VMS technician again detected The Wolf inside The Edges. A Coast Guard plane immediately flew over The Wolf and confirmed that it was inside The Edges and was commercial fishing.
The Coast Guard pilot made radio contact with Breeding and advised him that he was inside The Edges. Breeding told the Coast Guard pilot that, according to his GPS system, he was outside of the restricted area. The Coast Guard pilot instructed Breeding and his crew to cease fishing and return to home port in Panama City.
The Wolf returned to Panama City the next morning, at which time Breeding falsely told authorities that he was fishing in The Edges by accident because the GPS device and plotter on The Wolf were inaccurate.
At his plea hearing, Breeding admitted that he had intentionally breached The Edges to fish commercially and that, to conceal his actions, he manually altered the GPS device to render it inaccurate by approximately three nautical miles to allow him to claim the breach was accidental.
At the sentencing hearing, NOAA Assistant Special Agent in Charge Gregg Houghaboom testified that, in addition to fishing in The Edges Closed Area on January 9, 2012, and January 17, 2012, Breeding was cited by the Coast Guard in 2005 for fishing inside the Madison-Swanson Closed Area, which is an area of the Gulf south of Panama City that is closed year-round to commercial fishing to protect the spawning of reef fish, including grouper. Breeding and the boat’s owner were fined $25,000 for this incident, but Breeding never paid his portion of the fine.
Agent Houghaboom also testified that Breeding was cited by NOAA in 2007 for commercial fishing in a longline and buoy-gear restricted area of the Gulf. He was fined $17,500 for this violation, a fine that he also never paid.
The case was prosecuted by Assistant U.S. Attorney Gayle Littleton.
This case was investigated by the National Oceanic and Atmospheric Administration.Colorado Woman Sentenced for Conspiracy to Provide Material Support to TerroristsRead the Press Release
PHILADELPHIA - Jamie Paulin-Ramirez, 35, a U.S. citizen and former resident of Colorado, was sentenced today to eight years in prison for one count of conspiracy to provide material support to terrorists. Ramirez, a co-defendant of Colleen LaRose, a/k/a “Jihad Jane,” pleaded guilty to the charge on March 8, 2011. In addition to the prison term, U.S. District Court Judge Petrese B. Tucker ordered three years of supervised release and ordered Ramirez to pay a fine of $2,500 and a $100 special assessment.
The sentence was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General for National Security John Carlin, and FBI Special Agent-in-Charge Ed Hanko.
According to documents filed with the court, Ramirez, LaRose and others conspired to obtain military-style training in South Asia and then traveled to and around Europe to participate in, and in support of, violent jihad. In a series of electronic communications dated July 19, 2009, one co-conspirator (identified as CC#2 in the superseding indictment) directed another to recruit online "some brothers that can travel freely . . . with eu passports . . . [A]nd I also need some sisters too." The co-conspirator further explained that "sister fatima will be in charge of other sister care. . . .[W]e have already organized everything for her. . . . [W]e are will[ing] to die in order to protect her no matter what the risk is."
Ramirez exchanged email messages with LaRose during the summer of 2009, in which LaRose invited Ramirez to join her in Europe to attend a training camp. For example, on Aug. 1, 2009, LaRose sent electronic communications to Ramirez stating that "soon i will be moving to Europe to be with other brothers & sisters . . . . when i get to europe, i will send for you to come be with me there . . . . [T]his place will be like a training camp as well as a home." In electronic communications dated on or about August 7, 2009, CC #2 recruited another individual to find brothers and sisters to go to a "camp for [military-style] training . . . and th[e]n come back to europe to do the job . . . . [T]he job is to [k]nock down some individual[s] that are harming islam." CC#2 goes on to explain that he is structuring "an ORGANIZATION" divided into a "plan[n]ing team . . . research team . . . action team . . . recruitment team . . . finance team."
Ramirez accepted LaRose's invitation to travel to Europe and asked to bring along her minor male child. On Sept, 12, 2009, Ramirez traveled to Ireland with her child with the intent to live and train with jihadists. The day after she arrived in Ireland, Ramirez married CC#2, whom she had never before met in person, in an Islamic ceremony, knowing and intending that her presence in Europe, her marriage to CC#2, and her future actions would provide support for the conspiracy.
This case was investigated by the FBI Field Division in New York, the FBI's Joint Terrorism Task Force in Philadelphia, the FBI Field Division in Denver, and the FBI Field Office in Washington, D.C. Authorities in Ireland also provided assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams, and Matthew F. Blue, a Trial Attorney from the Counterterrorism Section in the Justice Department's National Security Division. The Office of International Affairs in the Justice Department's Criminal Division also provided assistance.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Colorado Big Game Outfitter and Assistant Guide Charged with Conspiracy for Illegal Capture and Maiming of Mountain Lions and Bobcats in Colorado and UtahRead the Press Release
Christopher W. Loncarich, 55, of Mack, Colo., and Nicholaus J. Rodgers, 30, of Medford, Ore., were charged yesterday in the District of Colorado with conspiracy to violate the Lacey Act, interstate felony transportation and sale of unlawfully taken wildlife, and felony creation of false records concerning wildlife that was sold in interstate commerce. The 17-count indictment was based on the pair’s practice between 2007 and 2010 of illegally capturing and maiming mountain lions and bobcats as part of a scheme to make hunting the cats easier for their clients.
The indictment alleges Christopher Loncarich is a big game outfitter and hunting guide who operates mainly in western Colorado on the border with Utah. Mr. Loncarich outfits and guides hunts for mountain lions and bobcats in the Bookcliffs Mountains, which span the Colorado-Utah border. Mountain lion and bobcat hunting are labor-intensive pursuits. The hunting seasons for the cats stretch from November to March when snow is likely to be on the ground. Guides commonly release highly-trained dogs on the track of the cats after the guides discover a track in the snow. The process is for the hunting dogs to follow the cat’s scent in the snow, then tree, corner or bay the pursued cat. At that point a hunter arrives and kills the treed cat.
The allegations include that Mr. Loncarich and his assistant guides devised a scheme whereby they would trap the cats in cages prior to hunts and release the cats when the client was nearby. Mr. Loncarich, Mr. Rodgers and other guides would communicate by radio to ensure that they took their clients to the location where the cats had been released. In order to keep the cats in the areas of potential hunts Mr. Loncarich, Mr. Rodgers and other guides would sometimes shoot the cats in the paws or legs or attach leghold traps to them. Many of the clients Mr. Loncarich and Mr. Rodgers guided did not have proper tags or licenses to take mountain lions or bobcats in Utah. Despite knowing that the clients were hunting in Utah without proper licenses or tags, the pair continued to guide the hunts. Ultimately, Mr. Loncarich, Mr. Rodgers and other guides brought the animals taken in Utah back to Colorado. Mr. Loncarich often took the client to “check in” the illegally taken mountain lions with the Colorado Division of Wildlife (now “Colorado Parks and Wildlife”) where Mr. Loncarich would provide false records to obtain seals for the hides. Many of the cats were then transported back to the clients’ home states. To date, four assistant guides have pleaded guilty to offenses arising from the conspiracy.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement, Colorado Parks and Wildlife, and Utah Division of Wildlife Resources, and is being prosecuted by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.Business Owner Charged in $1.2 Million Procurement FraudRead the Press Release
Claimed Her Business Was Owned and Operated by a Service-Disabled Veteran
NEWARK, N.J. – A Bergen County, N.J., woman was arrested this morning on charges that she fraudulently represented her company as a service-disabled veteran-owned small business in order to obtain more than $1.2 million worth of government contracts set aside for disabled veterans, U.S. Attorney Paul J. Fishman announced.
Miriam Friedman, 54, of Teaneck, N.J., surrendered to special agents from the U.S. Department of Veterans Affairs (VA), Office of the Inspector General, as a result of a federal criminal complaint charging her with wire fraud. She is scheduled to make her initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint unsealed today:
Friedman is the owner of Office Dimensions Inc., a company in Teaneck that sells furniture and design services to industrial and government customers. Friedman and her husband control Office Dimensions and all its revenues, as well as run the company’s daily operations. Neither served in the U.S. military, but Friedman’s father-in-law is a retired U.S. military veteran.
On Nov. 23, 2009, Friedman certified in a central registry for government contractors that Office Dimensions was a service-disabled veteran-owned small business. In her certification, she allegedly falsely claimed that her father-in-law was the owner and operator, even though he had very little involvement with Office Dimensions and was not service-disabled. Friedman then bid for VA contracts set aside for service-disabled veterans who own their businesses.
From January 2010 through November 2011, the VA paid Office Dimensions more than $1.2 million on fraudulently obtained contracts to which Friedman was not entitled.
The wire fraud count with which Friedman was charged is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross loss or gain cause by the offense.
U.S. Attorney Fishman credited special agents of the U.S. Department of Veterans Affairs, Office of the Inspector General, under the direction of Special Agent in Charge Jeffrey G. Hughes; the U.S. General Services Administration, Office of the Inspector General, under the direction of Special Agent in Charge James E. Adams; and IRS - Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s arrest.The government is represented by Assistant U.S. Attorney Scott B. McBride of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
14-008Defense counsel: Brian J. Neary Esq., Hackensack & Hoboken, N.J.
Friedman Complaint
Browning Man Sentenced to Prison for StrangulationRead the Press Release
(GREAT FALLS) A Browning man has been sentenced to prison following a guilty verdict in a September 2014 trial. Jordan James Lamott was sentenced to 32 months in prison followed by 3 years supervised release for strangling his girlfriend. This is the first case in the District of Montana that a defendant has been convicted at trial for strangulation in federal court since the inception of the statute. It is also one of the first such cases in the entire country.
On March 7, 2013, President Obama signed into law the reauthorization of the Violence Against Women Act (VAWA). This law contains provisions that significantly improve the safety of Native women and that importantly allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. Many of these critical provisions were drawn from the U.S. Department of Justice’s July 2011 proposal for new Federal legislation to combat violence against native women.
The tribal provisions in VAWA address three significant legal gaps by: (1) recognizing certain tribes’ power to exercise concurrent criminal jurisdiction over domestic violence cases, regardless of whether the defendant is Indian or non-Indian; (2) clarifying that tribal courts have full civil jurisdiction to enforce protection orders involving any person, Indian or non-Indian; and (3) creating new federal statutes to address crimes of violence, such as strangulation, committed against a spouse or intimate partner and providing more robust federal sentences for certain acts of domestic violence in Indian country.
These steps have been taken, at least in part, because a recent Center for Disease Control and Prevention survey found that 46% of Native American women have experienced rape, physical violence, or stalking by an intimate partner in their lifetime.
Lamott was indicted on July of 2014 by a federal grand jury. At trial, Assistant U.S. Attorney Ryan G. Weldon presented evidence that Lamott’s girlfriend wore a skirt to impress him. Lamott became angry, and he strangled his girlfriend three times. The final time, Lamott’s girlfriend lost consciousness. In the morning, Lamott requested that his girlfriend have sex with him, and when she refused, he kicked her out of the house. When arriving at the hospital a few hours later, Lamott’s girlfriend explained that she had been strangled. Medical professionals testified that the bruising around the neck of Lamott’s girlfriend was consistent with strangulation.
Lamott was interviewed by federal agents. He claimed that he remembered everything on the night of the assault. When confronted with evidence that his girlfriend had strangulation marks on her neck, Lamott ultimately admitted that it was “possible” that he strangled his girlfriend.
U.S. Attorney Mike Cotter said the trial in this case represents the office’s dedication to working with reservations to ensure that Native American women and families are protected from domestic violence. “The strangulation statute and VAWA offers the U.S. Attorney’s Office a critical weapon to ensuring that domestic violence is dealt with swiftly and with harsh consequences. Victims of one episode of strangulation are six times more likely to be a victim of attempted homicide by the same partner. These same victims are seven times more likely to actually die at the hands of their loved ones. It is this type of violence that tears apart families, damages children, and can have lethal consequences. The ability to proceed to trial on strangulation cases has proven effective, and we are proud to be one of the first districts to ensure this statute is vigorously enforced.”
The investigation was conducted by the Bureau of Indian Affairs.Broward Resident Pleads Guilty in Treasury Check Cashing and Stolen Identity 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), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce that defendant Ronald Walker, 36, of Fort Lauderdale, pled guilty today for his participation in a check cashing and stolen identity scheme. Sentencing is scheduled for March 21, 2014 at 9:00 a.m. before U.S. District Judge James I. Cohn.
Specifically, Walker pled guilty to one count of theft of public money, a United States income tax refund check, 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(a)(1). At sentencing, the defendant faces a maximum term of ten years in prison for the theft of public money 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, a confidential informant (CI) told federal agents that Walker routinely received stolen or fraudulently obtained U.S. Treasury checks and negotiated them at a check cashing store called American Quick Cash (AQC) located in Broward County, which was owned by Wilson and Kate Lau. The CI also stated that Walker forged the payees’ endorsements on the back of the checks and provided Wilson Lau with the payees’ social security numbers and copies of altered Florida driver’s licenses.
Court documents state that during two undercover operations, Walker was given genuine, unendorsed treasury checks created specifically for this investigation. During another undercover operation, Walker was given three genuine, unendorsed treasury tax refund checks, which resulted from fraudulent tax returns filed by unknown persons in the names and social security numbers of real people. Walker was also provided with driver’s license numbers, social security numbers, and dates of birth for all of the payees on the checks. Walker went to AQC, and then gave the CI and/or undercover agent their portion of the cashed checks. After clearing the banking system, the checks that were created for this investigation included endorsements on the back, but the payees were fictitious and could not have endorsed the checks.
From February 2010 through May 2011, the total amount of U.S. Treasury checks cashed by Walker at AQC is approximately $1,234,114. The number of victims involved is greater than 50, but fewer than 250.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Secret Service. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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.
Brother and Sister Charged with Conspiring to Unlawfully Import Rare White Boa Constrictor into the United States from BrazilRead the Press Release
SALT LAKE CITY - A federal grand jury returned an indictment Wednesday afternoon charging two Utah residents with conspiring to unlawfully import a rare white leucistic boa constrictor from Brazil into the United States for the purpose of breeding it with other boa constrictors and selling its offspring for a profit.
Jeremy Stone, age 39, of Lindon, and his sister, Keri Ann Stone, age 34, of Midvale, are charged in the four-count indictment with conspiracy to unlawfully import the snake into the United States; unlawfully importing the snake into the country; transporting the snake knowing it was imported into the United States contrary to law; and making and submitting false records for wildlife imported into the United States.
According to the indictment, Jeremy Stone is the owner of Jeremy Stone Reptiles, which is a business located in Lindon. In the course of its operations, Stone Reptiles bred and sold boa constrictors to customers in the United States and foreign countries.
The international trade of boa constrictors is regulated under the Convention on International Trade in Endangered Species (CITES) through the Endangered Species Act. Regulations require that those exporting wildlife through CITES to, among other things, obtain a certificate of origin from the governmental authority in the exporting country showing that the specimen to be exported originated in the country that issued the certificate of origin. Additionally, the U.S. Fish and Wildlife Service (USFWS) requires that those exporting or importing wildlife disclose the country of origin for the imported specimen, the total monetary value of the specimen, and the source of the specimen – whether it was “wild caught” or “bred in captivity,” the indictment says.
The indictment alleges that around December 2006, Jeremy Stone became aware of the existence of a rare white boa under the care of the Niteroi Zoo near Rio de Janeiro, Brazil. From 2007 until 2009, Stone sent thousands of dollars to the administrator of the zoo as payment for the white boa. The indictment alleges he knew that the boa was caught in the wild in Brazil and given to the zoo. He also knew that Brazil did not allow the export of wild-caught boa constrictors.
The indictment alleges the Stones and others committed several overt acts in furtherance of the conspiracy to import the snake to the United States. For example, from 2007 to 2009, Jeremy Stone sent or had others send emails to the zoo administrator discussing how he could obtain the white boa and leave Brazil without obtaining the proper export permits from Brazil. These emails included photos demonstrating how the administrator should pack the white boa in her luggage. In January 2009, Jeremy Stone paid for travel for himself and Keri Ann Stone to travel to Brazil and meet with the zoo administrator to obtain the white boa.
According to the indictment, a few days later the Stones attempted to leave Brazil on a cruise ship back to the United States, but they were denied permission to board the cruise ship because Kari Ann Stone appeared to be in the late months of pregnancy. They also attempted to board a flight to the United States. Airport security temporarily detained them upon finding that Keri Ann Stone was wearing a hollow, false pregnancy belly and brassiere. The indictment alleges they were testing airport security in Brazil.
The indictment alleges the Stones ultimately transported the white boa from Brazil into Guyana where a veterinarian was used to generate a certificate of origin falsely claiming that the white boa had been caught in the wild in Guyana. With a certificate of origin from Guyana, Jeremy Stone was able to facilitate the export of the white boa with other snakes from Guyana to the United States. The indictment alleges Jeremy Stone caused a U.S. Fish and Wildlife Service form to state that the value of the shipment of snakes was $220 and that the shipped snakes, including the white boa, had been caught in the wild in Guyana. The snakes were cleared for entry into the United States based on the false information on the form on about Jan. 29, 2009. Travel was then facilitated from Miami to Stone Reptiles in Lindon.
The indictment alleges Jeremy Stone bred the white boa with other boa constrictors at the business and sold the offspring for tens of thousands of dollars to buyers in the United States, Canada, and Italy, among other places.
Summonses will be issued to Jeremy and Kari Ann Stone to appear for an arraignment in federal court. The maximum potential penalty for the conspiracy count is five years in prison. The potential penalty for importing merchandise contrary to law count is 20 years and submitting false information on a USFWS form carries a potential penalty of five years in federal prison.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Braddock Woman Charged with Stealing Mail from Shadyside and Southside MailboxesRead the Press Release
PITTSBURGH – A Braddock woman has been indicted by a federal grand jury in Pittsburgh on charges of theft of mail and destruction of letter/mail boxes, United States Attorney David J. Hickton announced today.
The 33-count indictment named Carolyne Korotko, aka Carolyne Elizabeth Golosky, 40, of Braddock, Pa., as the sole defendant.
According to the indictment, from March 2013, through December 2013, Korotko forcibly opened multiple mail boxes and stole the mail from victims in the Shadyside and Southside sections of Pittsburgh.
The law provides for a maximum total sentence of not more than 133 years in prison, a fine of $8,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. The defendant is presumed innocent unless and until proven guilty.
Bismarck Man Pleads Guilty to Killing His Brother on the Spirit Lake Indian ReservationRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Jan. 7, 2014, Orlen Francis Smith, Jr., 26, of Bismarck, N.D., pleaded guilty before U.S. District Judge Ralph R. Erickson to charges of voluntary manslaughter, assault resulting in serious bodily injury and assault with a dangerous weapon.
On Feb. 25, 2013, Smith, Jr., an enrolled member of the Fort Berthold Indian Reservation, went to the home of his brother, Daniel Smith, located in St. Michael, N.D., on the Spirit Lake Indian Reservation. An altercation occurred between Smith, Jr. and his brother Daniel. Smith, Jr. armed himself with a switchblade knife and swung at his brother, striking Daniel in the side of his chest, piercing his heart. Daniel died at the scene. Smith, Jr. then attacked two others in the residence, puncturing one person in the forearm with the knife and another individual suffered a laceration on the forehead.
The charge of voluntary manslaughter carries a maximum penalty of 15 years’ imprisonment. The charges of assault resulting in serious bodily injury and assault with a dangerous weapon each carry a maximum penalty of 10 years’ imprisonment.
The case was investigated by the Federal Bureau of Investigation.
Sentencing for Smith, Jr. has been set for April 7, 2014, at 1:30 p.m.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case.
Beaumont ISD Employees Charged with Stealing over $4 MillionRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The Director of Finance and Comptroller of the Beaumont Independent School District (BISD) have been indicted on federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Devin Wayne McCraney, 35, and Sharika Baksh Allison, 43, both of Beaumont, were named in a 19-count indictment returned by a federal grand jury today charging them with conspiracy and 18 counts of fraud.
According to the indictment, beginning in 2010, McCraney, Director of Finance for BISD, and Allison, Comptroller for BISD, are alleged to have devised schemes in which they embezzled $4,041,705.27 from BISD by means of 18 separate wire transfers to bank accounts under their personal control.
“FDR famously said, ‘The school is the last expenditure upon which America should be willing to economize’,” said U.S. Attorney Bales. “And the truth is that the citizens of Beaumont have heeded that wise advice and have spent lavishly on their public schools for the sake of the city’s children. But as this indictment illustrates, there are individuals at BISD who have corruptly embezzled from that generous provision by stealing over $4 million dollars that was intended to underwrite excellent schools in Beaumont. The Grand Jury has alleged that Devin McCraney and Sharika Allison have been caught red-handed and if convicted, they will face justice. In the same way, federal agents and prosecutors will remain vigilant to detect, investigate and hold accountable other so-called public servants who are abusing the public trust.”
"The FBI recognizes that fighting public corruption is vital to preserving our democracy," said SAC Stephen L. Morris. "Our public officials have and always will be held to a higher standard to maintain their positions of trust. These indictments today signify a violation of the public trust given to Devin McCraney and Sharika Allison."
If you have any information related to this matter, please call the Federal Bureau of Investigation at 409-832-8571.
“Today’s indictment alleges that these two public officials knowingly and willfully abused their positions of trust to steal funds from the very ones they promised to serve – the children of the Beaumont Independent School District. That is completely unacceptable,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southwest Regional Office. “OIG Special Agents will continue to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students. America’s students, their families, and taxpayers deserve nothing less.”
The defendants each face up to 10 years in federal prison.
This investigation was conducted by the Federal Bureau of Investigation and the U.S. Department of Education Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Artesia Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – Anthony Herrera, 23, of Artesia, N.M., pleaded guilty this morning in Las Cruces federal court to firearms charges under a plea agreement with the U.S. Attorney’s Office.
Herrera was arrested in July 2013, based on a criminal complaint charging him with being a felon in possession of a firearm and ammunition, and was indicted in Oct. 2013 on that same charge and for unlawfully possessing an unregistered short-barreled shotgun on April 10, 2012 . At the time, Herrera was prohibited from possessing firearms or ammunition because he previously had been convicted of a felony offense of criminal solicitation.
Court filings reflect that the investigation leading to the charge against Herrera arose out of a drive-by shooting incident on Aug. 5, 2012. On that day, Eddy County Sheriff’s Office responded to a call regarding a drive by shooting during which numerous shots were fired at a residence and a vehicle. After Herrera was identified as the individual who fired the shots by witnesses, Eddy County Sheriff’s deputies executed a search warrant at his home on Aug. 10, 2012, at Herrera’s residence and found a .45 Caliber, semi-automatic pistol and ammunition. They also located a .12 gauge short-barreled shotgun and ammunition inside of Herrera’s truck.
During today’s proceedings, Herrera pled guilty to the indictment and admitted that he unlawfully possessed firearms, including an unregistered short-barreled shotgun, and ammunition in Aug. 2012.
Herrera has been in custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At his sentencing hearing, which has yet to be scheduled, Herrera faces a maximum penalty of ten years in prison.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eddy County Sheriff’s Office with assistance from the Artesia Police Department and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.Armed Career Criminal Sentenced to 18 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Aaron Young, 37, of Providence, an armed career criminal previously convicted and sentenced in state court on felony assault, robbery and drug trafficking charges, was sentenced today in federal court to 216 months in federal prison on federal drug trafficking and firearms charges, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
Young was arrested by Providence Police in January 2013 during an investigation into his drug trafficking activities. Young has been held in state custody since his arrest by Providence Police as a parole violator on his previous state convictions.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Young to serve 5 years of supervised release upon completion of his prison term. Young pleaded guilty on October 28, 2013, to one count each of possession with intent to distribute cocaine and being a felon in possession of a firearm.
According to information presented to the court, on January 7, 2013, Providence Police and R.I. DEA drug task force agents executed court authorized search warrants at Young’s Providence residence. As officers and agents entered Young’s second floor apartment through a front door, officers outside the rear of the building watched as Young exited his apartment through a rear door, discarded a bag and exited the building. Young was detained as he left the building and the bag discarded by Young, which contained a total 2.1 grams of cocaine in five packets, was recovered. A search of Young’s apartment resulted in the seizure of a loaded 9mm handgun with 15 live rounds in the magazine and items used in the sale and distribution of cocaine.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr., with the assistance of R.I. Assistant Attorney General Jim Baum.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the R.I. DEA drug task force assisted Providence Police in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]19th Micronesian Chief Executives Summit Invites U.S. Attorney to Speak on “Preventing Human Trafficking in the Pacific Region”Read the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), and Sarah Thomas-Nededog, Vice-President, West Care Pacific Islands, were invited to speak at the Micronesian Chief Executives Summit (MCES) held on December 4-6, 2013, in Saipan, NMI. The MCES is composed of the Chief Executives of the Territory of Guam, the Commonwealth of the NMI, the Republic of Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia. The Governors of each of the Federated States of Micronesia -- Chuuk, Yap, Pohnpei, and Kosrae, are also members. The primary purpose of the MCES is to coordinate and implement regional strategies to assist its member jurisdictions.
U.S. Attorney Limtiaco and Ms. Thomas-Nededog spoke on the topic of “Preventing Human Trafficking in the Pacific Region,” and shared information on the Pacific Regional Response to Combat Human Trafficking initiative, which is a collaborative effort among the U.S. Attorney’s Office for the Districts of Guam and the NMI, the National District Attorneys Association, the Department of State, the Department of the Interior, Guam Human Trafficking Task Force, NMI Human Trafficking Intervention Coalition, and other community partners. U.S. Attorney Limtiaco and Ms. Thomas-Nededog also discussed the intersection and relationship between human trafficking, sexual assault, child abuse and domestic and family violence, and prevention and enforcement efforts in the Pacific region.The Pacific Regional Response to Combat Human Trafficking initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region.
Photos of the summit are attached.
U.S. Attorney Alicia Limtiaco
Sarah Thomas-Nededog, Vice President, West Care Pacific Islands
7 January 2014
“Duffel Bag Bandit” Pleads Guilty to Bank RobberyRead the Press Release
BOISE – Gerald Edward Massey, 56, formerly of Boise, Idaho, pleaded guilty today in United States District Court to bank robbery, U.S. Attorney Wendy J. Olson announced. Massey was indicted by a federal grand jury in Boise on August 14, 2013, for one count of bank robbery. He was living in Shreveport, Louisiana, at the time of his arrest in August 2013.
According to the plea agreement, Massey admitted that on March 6, 2013, he walked into a U.S. Bank branch located at 10700 Ustick Road in Boise. Massey admitted that he used intimidation to coerce the bank manager to let him into the vault. Massey took $64,500 in U.S. currency. Massey also admitted that he attempted to obstruct or impede the investigation by counseling a witness to lie to FBI agents regarding his knowledge of Massey’s crimes. Massey agreed to pay restitution of $84,627.73, an amount equal to the loss caused to U.S. Bank and the loss caused to the victims of three additional bank robberies not charged.
Massey faces up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for April 1, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case is being investigated by the Federal Bureau of Investigation and Boise Police Department.
United States Government Settles False Claims Act Allegations Against Florida Vein Clinic and Its OwnerRead the Press Release
A Florida-based physician, Dr. Ravi Sharma, has agreed to pay $400,000 to resolve allegations that he and his clinics violated the False Claims Act by knowingly billing Medicare for vein injections and physician office visits performed by unqualified personnel, the Justice Department announced today.
“Vein injections and other invasive procedures should be performed by appropriately qualified personnel,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will not tolerate those who put patients’ health at risk for their personal gain and convenience.”
The government alleged that, between 2009 and 2010, Sharma owned and operated a clinic in the Tampa area called Premier Vein Centers. Beginning in 2009, Sharma allegedly sent text messages to his office manager instructing her to perform varicose vein injections on patients when he was not in the office. The government further alleged that, when Sharma was in the office, he performed unnecessary vein injections and unnecessary ultrasound imaging procedures associated with those vein injections.
Sharma also owned and operated, between 2009 and 2010, a weight loss clinic in the Tampa area called Life’s New Image. Allegedly, unqualified personnel met with patients of the clinic, but Sharma billed those visits as physician office visits using his own Medicare provider number. Sharma closed Premier Vein Centers and Life’s New Image in 2010.
“We are pleased to announce this very favorable resolution of our claims against this provider,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Again, it demonstrates our commitment to civil health care fraud enforcement in our district.”
The allegations covered by the settlement were originally raised in a lawsuit filed by Patti Lovell, the former office manager for Sharma, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims and to receive a share of any recovery. Lovell will receive $72,000.
As part of the settlement, Sharma entered into a three-year Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services. The agreement requires Sharma to attend training courses provided by the Centers for Medicare and Medicaid Services and provides for an independent external review of his federal health care program coding and billing procedures.This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation of this matter reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Lovell v. Ravi Sharma, M.D. and Premier Vein Centers, 12-CV-133 (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
United States Government Settles False Claims Act Allegations Against Florida Vein Clinic and Its OwnerRead the Press Release
WASHINGTON – A Florida-based physician, Dr. Ravi Sharma, has agreed to pay $400,000 to resolve allegations that he and his clinics violated the False Claims Act by knowingly billing Medicare for vein injections and physician office visits performed by unqualified personnel, the Justice Department announced today.
“Vein injections and other invasive procedures should be performed by appropriately qualified personnel,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will not tolerate those who put patients’ health at risk for their personal gain and convenience.”
The government alleged that, between 2009 and 2010, Sharma owned and operated a clinic in the Tampa area called Premier Vein Centers. Beginning in 2009, Sharma allegedly sent text messages to his office manager instructing her to perform varicose vein injections on patients when he was not in the office. The government further alleged that, when Sharma was in the office, he performed unnecessary vein injections and unnecessary ultrasound imaging procedures associated with those vein injections.
Sharma also owned and operated, between 2009 and 2010, a weight loss clinic in the Tampa area called Life’s New Image. Allegedly, unqualified personnel met with patients of the clinic, but Sharma billed those visits as physician office visits using his own Medicare provider number. Sharma closed Premier Vein Centers and Life’s New Image in 2010.
“We are pleased to announce this very favorable resolution of our claims against this provider,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Again, it demonstrates our commitment to civil health care fraud enforcement in our district.”
The allegations covered by the settlement were originally raised in a lawsuit filed by Patti Lovell, the former office manager for Sharma, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims and to receive a share of any recovery. Lovell will receive $72,000.
As part of the settlement, Sharma entered into a three-year Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services. The agreement requires Sharma to attend training courses provided by the Centers for Medicare and Medicaid Services and provides for an independent external review of his federal health care program coding and billing procedures.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation of this matter reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Lovell v. Ravi Sharma, M.D. and Premier Vein Centers, 12-CV-133 (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
United States Department of Justice and the State of Washington Announce Successful Health Care Fraud Settlement with Dr. Abhijit Deshpande and Pinnacle Health CareRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that the United States and the State of Washington have reached a civil settlement on behalf of the United States Department of Health and Human Services which administers the Medicare program and the Washington State Health Care Authority which administers the Medicaid program in the amount of $89, 965.38 for claims that Dr. Abhijit Deshpande and his clinics, the Yakima Sleep Center in Yakima, Washington, and the Pinnacle Sleep & Wake Disorder Center in Kennewick, Washington, both operating under the umbrella of his business Pinnacle Health Care, incorrectly overbilled the federal and state health care programs between January 1, 2009 through August 31, 2011. The settlement amount represents twice the amount of compensation received by Dr. Deshpande and Pinnacle Health Care for the alleged improper billing.
The settlement agreement between the United States Department of Justice, the State of Washington, Dr. Deshpande and Pinnacle Health Care secured the United States agreement to abstain from filing an affirmative civil enforcement lawsuit against the doctor and his company under the False Claims Act, Title 31 United States Code, Sections 3729 -3733 on the grounds of alleged fraudulent and false Medicare and Medicaid billings. Under the False Claims Act, parties who submit false claims to the Medicare and Medicaid programs can be held liable for triple the amount paid to the party through the false claim and subjected to civil penalties of $5,500 to $11,000 for each false claim submitted to the government. By accepting responsibility for their billing errors, Dr. Deshpande and Pinnacle avoided these potentially harsh penalties and worked with the United States and the State of Washington to obtain a mutually agreeable resolution to the claims.
As stipulated in the settlement agreement, the United States and the State of Washington alleged that from January 1, 2009, to November 30, 2009, Dr. Deshpande and/or Pinnacle Health Care submitted claims for nerve conduction studies, needle electromyography testing, and h-reflex testing when the services were not provided by a licensed physician; and that from January 1, 2009, through August 31, 2011, Dr. Deshpande and/or Pinnacle Health Care submitted claims for both the professional and technical component for polysomnographic testing when Dr. Deshpande and/or Pinnacle Health Care performed the technical component of the test, but the professional component was completed and billed for by a physician not associated with Dr. Deshpande and/or Pinnacle Health Care; the professional component of the testing was not provided in the United States; and/or the claims were duplicative (double-billing)
United States Attorney Michael C. Ormsby said: "Fraud against programs that fund health care in our community will not be tolerated and will not pay off for those who don't follow the rules. This matter is a superb example of the successful outcomes made possible by the collaborative efforts of our state and federal partners to investigate, combat, and resolve health care fraud."
"When providers commit Medicaid and Medicare fraud, less money is available for health care," said Attorney General Bob Ferguson. "Our Medicaid Fraud Control Unit collaborated with state and federal partners to crack down on fraud and recover funds for taxpayers."
The combined efforts of the United States Departments of Justice and Health and Human Services' in health care fraud prevention and enforcement have recovered $14.9 billion since January 2009 in cases involving fraud against federal health care programs.
The settlement with Dr. Deshpande and Pinnacle Health Care was the result of a coordinated effort among the United States Attorney's Office for the Eastern District of Washington, the United States Department of Health and Human Services Office of Inspector General and Office of Counsel to the Inspector General, the State of Washington Attorney General's Medicaid Fraud Control Unit, and the State of Washington Health Care Authority.
This matter was handled by K. Jill Bolton, an Assistant United States Attorney, and Marty Raap, an Assistant Attorney General with Medicaid Fraud Control Unit.
Two Men Indicted for Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland – A federal grand jury returned a superseding indictment today charging Rodney Hubert, a/k/a “Noah,” age 38, of Baltimore and New York, New York, and Charles Hufton, a/k/a “CJ,” age 25, of Cockeysville, Maryland, with conspiring to traffic a minor to engage in commercial sex acts and with sex trafficking of a minor.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the indictment, from December 2012 through February 22, 2013, Hubert, a registered sex offender and Hufton, a bouncer at a lounge in Baltimore City, recruited and transported females, some of whom were minors, to engage in commercial sex acts for money. The defendants allegedly offered a “finders fee” to female prostitutes if they found additional females to work for them and took provocative or explicit photographs of the females and posted them to websites that host advertisements for commercial sex. According to the indictment, Hubert and Hufton provided a residence in Parkville, Maryland, for the females to host “in-call” prostitution and drove the females to “out-call” prostitution locations. Hubert and Hufton allegedly collected a large percentage of the females’ earnings.
Specifically, the indictment alleges that Hubert recruited a 19 year old associate to work for him as a prostitute beginning in December 2012. Hubert offered the 19 year old a commission to recruit the 16 year old victim to perform prostitution for Hubert. Hubert invited the minor victim to live with him, offered $400 to take provocative photographs of the victim wearing lingerie, and offered her $1,000 to make a pornographic film. According to the indictment, Hubert and Hufton created a pseudonym for the minor victim, “Ashley,” and advertised online that she would prostitute at both the Parkville “in-call” location and at “out-call” locations of prospective clients. Hufton allegedly used his phone to create and post the prostitution advertisements online and drove the prostitutes, including the minor victim, to “out-call” locations and collected a portion of their earnings.
The defendants face a maximum sentence of life in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Truth or Consequences Woman Pleads Guilty to Prescription Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE –Roberta Capps, 53, of Truth or Consequences, N.M., pled guilty this morning to prescription drug trafficking charges in federal court in Las Cruces, N.M. Capps entered her guilty plea was entered without the benefit of a plea agreement.
Roberta Capps and her husband Michael Capps, 52, were arrested on May 21, 2013, on criminal complaints alleging that they unlawfully distributed quantities of Oxycodone and Oxymorphone to a DEA confidential source on three occasions between Dec. 10, 2012 and Jan. 15, 2013. On June 19, 2013, the couple was charged in a five-count indictment with one count of conspiracy and three counts of distribution of Oxycodone. The fifth count charged Michael Capps with being a felon in possession of a firearm.
According to the indictment, Roberta Capps and Michael Capps conspired to distribute Oxycodone and unlawfully distributed Oxycodone on three separate occasions on Dec. 10, 2012, Dec. 18, 2012 and Jan. 15, 2013. Court filings reflect that the couple sold the Oxycodone to an individual who unbeknownst to them was a confidential source for the DEA and that Roberta Capps admitted knowing that it was illegal to sell prescription medications to others during a recorded conversation with the source.
Today, Roberta Capps entered guilty pleas to Counts 1 through 4 of the indictment charging her with conspiracy and distribution of Oxycodone. At sentencing, Roberta Capps faces a maximum penalty of 20 years in prison. Capps remains on conditions of release at a half-way house pending her sentencing hearing which has yet to be scheduled.
Michael Capps has entered a not guilty plea to the charges against him. Charges in an indictment are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the DEA and the Truth or Consequences Police Department and is being prosecuted by Assistant U.S. Attorney Amanda L. Gould of the U.S. Attorney’s Las Cruces Branch Office.
Transient Sentenced to Fifty-One Months in Federal Prison for Robbing Albuquerque Bank in March 2013Read the Press Release
ALBUQUERQUE – Sheldon David Weisman, 56, was sentenced this morning to 51 months in federal prison followed by three years of supervised release for robbing an Albuquerque-area bank in March 2013.
Weisman was arrested on March 15, 2013 based on a criminal complaint alleging that he robbed the Wells Fargo Bank located at 8333 Montgomery Blvd. NE in Albuquerque that day. At the time of his arrest, Weisman was homeless and living out of his vehicle. Weisman subsequently was indicted on a bank robbery charge in April 2013.
Court filings reflect that Weisman entered the bank on the afternoon of March 15, 2013, and handed a note demanding cash to a bank teller. After the bank teller complied with Weisman’s demand and Weisman left the bank with a bag of cash, a bank employee observed Weisman drive away in a vehicle bearing a Texas license plate. After a description of the vehicle was relayed to law enforcement authorities, an officer of the Albuquerque Police Department executed a traffic stop of a vehicle fitting the description and arrested Weisman. A search of Weisman’s vehicle revealed the bank robbery note and a bag containing cash.
On Oct. 7, 2013, Weisman pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney William J. Pflugrath.
Tennessee Men Plead Guilty to Illegally Trafficking Narwhal TusksRead the Press Release
Jay G. Conrad, of Lakeland, Tenn., pleaded guilty today in the District of Maine to conspiring to illegally import and traffic narwhal tusks, conspiring to launder money, and illegally trafficking narwhal tusks, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division . A plea agreement was also unsealed today in which Eddie T. Dunn, of Eads, Tenn., pleaded guilty in the District of Alaska to conspiring to illegally traffic, and trafficking, narwhal tusks.
According to the plea agreements, beginning in approximately 2003, Dunn and Conrad partnered to buy more than 100 narwhal tusks from a Canadian resident who each knew had illegally imported the tusks from Canada into Maine. After receiving the tusks in Tennessee, Dunn and Conrad marketed and sold the tusks using a combination of internet sales via the “Ebay” auction website and direct sales to known buyers and collectors of ivory. Buyers were located throughout the United States, including in Alaska and Washington. Throughout the conspiracy, Dunn and Conrad made payments to the Canadian supplier for the narwhal tusks by sending the payment to a mailing address in Bangor, Maine, or directly to the supplier in Canada. The payments allowed the Canadian supplier to purchase and re-supply Dunn and Conrad with more narwhal tusks that they could then re-sell. Dunn sold approximately $1.1 million worth of narwhal tusks and Conrad sold between $400,000 and $1 million worth of narwhal tusks as members of the conspiracy.
“In this conspiracy, Dunn and Conrad flouted U.S. law and international agreements that protect marine mammals like the narwhal from commercial exploitation,” said Acting Assistant Attorney General Dreher. “If left unchecked, this illegal trade has the potential to irreparably harm the species. The Justice Department will continue to investigate and prosecute wildlife traffickers in order to protect these species for future generations to enjoy.”
“The cooperation between Service and NOAA investigators and between the United States and Canada that led to these prosecutions reflects the type of partnerships needed to protect narwhals and other species worldwide from wildlife trafficking,” said William C. Woody, Assistant Director for Law Enforcement for the U.S. Fish and Wildlife Service.
“NOAA OLE takes the unlawful importation of protected marine mammals very seriously,” said NOAA-Office of Law Enforcement Special Agent in Charge Logan Gregory. “NOAA OLE will continue to investigate those who unlawfully import marine mammal products and profit from marine protected species such as the narwhal.”
“This investigation uncovered and dismantled a wildlife trafficking network that spanned from New Brunswick to Tennessee and reached as far as Alaska,” said Karen Loeffler, U.S. Attorney for the District of Alaska. “The results reached demonstrate the close cooperation between the United States and Canada and their law enforcement officers whose duty it is to investigate, stop and deterthose who illegally target diminishing wildlife resources and do so for commercial gain.”
A narwhal is a medium-sized whale with an extremely long tusk that projects from its upper left jaw. Narwhals are marine mammals protected by the Marine Mammal Protection Act and are listed on Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). It is illegal to import parts of marine mammals into the United States without the requisite permits/certifications, and without declaring the merchandise at the time of importation to U.S. Customs and the U.S. Fish and Wildlife Service. Narwhal tusks are commonly collected for display purposes and can fetch large sums of money.
Dunn is scheduled to be sentenced by U.S. District Judge Ralph R. Beistline in the District of Alaska on March 20, 2014. The maximum penalty Dunn faces for conspiring to illegally traffic, and trafficking, narwhal tusks is five years of incarceration and a fine of $250,000. The maximum penalty Conrad faces for conspiring to illegally import and illegally traffic narwhal tusks, conspiring to commit money laundering crimes and illegally trafficking narwhal tusks is twenty years of incarceration and a fine of $250,000. The trial of Co-defendant Andrew J. Zarauskas is set to begin in Bangor, Maine, on February 4, 2014. Co-defendant Gregory R. Logan is pending extradition from Canada to the District of Maine.
These cases are part of Operation Nanook, a multi-agency effort to detect, deter and prosecute those engaged in the unlawful trafficking of narwhal tusks. The cases were investigated by agents from National Oceanic and Atmospheric Administration - Office of Law Enforcement and the U.S. Fish and Wildlife Service - Office of Law Enforcement, with extensive support and collaboration from Environment Canada, Wildlife Enforcement. The cases are being prosecuted by Trial Attorney Todd S. Mikolop of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Steven E. Skrocki of the District of Alaska.
# # #Tampa Man Sentenced to 18 Months in Prison for Theft of Government FundsRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Rodney Andre McCray (31, Tampa) to 18 months in federal prison for theft of government funds. As part of his sentence, the court also ordered McCray to pay $78,728.00 in restitution to the Internal Revenue Service, and entered a money judgment in the amount of $3,500.00, the proceeds of the theft personally received by McCray.
McCray pleaded guilty on October 8, 2013.
According to court documents, during the summer of 2012, McCray and another person agreed that McCray would receive fraudulently acquired income tax refund deposits in a bank account opened in McCray’s name. McCray then opened a Bank of America bank account for the purpose of receiving the "drop money," or the fraudulent income tax return deposits. McCray was the only authorized signatory on the bank accounts.
Thereafter, fraudulent Form 1040 U.S. Individual Income Tax Returns ("1040 Returns") were filed with the IRS, directing that any refunds from the returns be deposited into McCray's Bank of America checking account. The 1040 Returns were false and fraudulent, in that the returns: (1) included false information, such as false interest and dividends earned information and related false withholding information; and (2) were filed in the name and on behalf of individuals who did not sign, authorize, or in any way give permission for the returns to be filed. In many cases, the fraudulent 1040 Returns were filed on behalf of deceased persons. In those instances, the 1040 Returns were filed together, with a form stating that McCray was authorized to receive refunds on behalf of the deceased filers, which was also false.
As a result of this scheme, McCray was complicit in converting approximately fifteen fraudulently-acquired U.S. Treasury refunds through his Bank of America account, resulting in a total loss of approximately $78,728.00 to the U.S. Treasury.This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant.
Supporting Documents for Deferred Prosecution Agreement: U.S. V. JPMorgan Chase Bank, N.A.Read the Press Release
U.S. v. JPMorgan Chase - Deferred Prosecution Agreement Packet
Stockton Man Pleads Guilty to Drug and Gun Charges as A Result of Operation Gideon IVRead the Press Release
SACRAMENTO, Calif. — Luis Magana, 20, of Stockton, pleaded guilty today to dealing firearms without a license and to distribution of methamphetamine in a case resulting from Operation Gideon IV, United States Attorney Benjamin B. Wagner announced.
Operation Gideon IV was an ATF surge that targeted violent criminals in an effort to dismantle criminal organizations operating in Stockton. Experienced undercover ATF special agents from throughout the U.S. were deployed with local ATF agents and Stockton police officers to conduct covert investigations into some of the most violent criminals in Stockton and surrounding areas. Operation Gideon IV ran from January to April 19, 2013, charging 55 individuals and seizing 84 firearms.
“Today’s guilty plea represents another win for law enforcement in successfully removing and locking up another gun trafficker and preventing collateral damage to innocent victims,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Joseph M. Riehl. “These traffickers are the primary source and supply of arming violent criminals in our communities.”
According to court documents, special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted an extensive investigation into Magana’s gun and drug dealing activities. During the course of this investigation, undercover special agents purchased and seized more than 2.9 kilograms of methamphetamine from Magana. Additionally, although Magana did not have a license to sell firearms, Magana sold undercover special agents five firearms during four separate transactions in February, March, and April, 2013.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Magana was taken into custody today after entering his guilty plea. His co-defendants, Erik Moreno and Juvenal Junez, both of Stockton, have already entered guilty pleas on drug distribution charges.
Magana is scheduled to be sentenced by Judge Lawrence K. Karlton on April 1, 2014. Magana faces a maximum statutory penalty of 40 years in prison and a $5 million fine for the drug distribution conviction. He faces a maximum sentence of five years in prison and a $250,000 fine for the gun conviction. The actual sentence, 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.
South Windsor Man Who Stole Firearms from East Windsor Gun Store Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JORDAN MARSH, 27, of South Windsor, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to five years of probation for stealing a firearm from a federally licensed firearms dealer.
According to court documents and statements made in court, on December 11, 2012, MARSH stole a Windham Weaponry 5.56 mm caliber semi-automatic rifle from the front counter of Riverview Gun Sales, a former federal firearms dealer located in East Windsor. The theft was captured on the store’s video surveillance system, which shows MARSH entering the store, standing in front of the rifle, picking up the firearm and leaving the store. Though there were several employees standing behind the counter, none were near MARSH, and none saw him take the firearm. No one at the store realized the firearm was missing until the Hartford Police retrieved it from MARSH’s hotel room on December 17, 2012, two days after MARSH had been arrested for attempting to steal a Bushmaster .50 caliber rifle from Riverview.
Earlier in 2012, MARSH was convicted of a state felony stemming from his prior thefts of approximately 12 firearms from Riverview.
On August 27, 2013, MARSH pleaded guilty in state court to firearms and probation violation offenses stemming from his attempted theft of the Bushmaster .50 caliber rifle, and was sentenced to eight years of incarceration. He is currently detained in state custody.
In this federal case, MARSH faced a sentencing guideline range of 46 to 57 months of imprisonment. Instead of imposing a concurrent sentence of incarceration, Judge Shea, with agreement of the parties, imposed a five-year term of probation, the maximum allowed under the law. The court expressed concern that MARSH was a danger to the public, noted that he was on state probation for the first Riverview theft when he committed the second Riverview theft, and decided that the maximum term of federal supervision was necessary to make sure that he did not re-offend.
As special conditions of probation, the court ordered that MARSH and his residence be subject to searches by the U.S. Probation Office upon reasonable suspicion, that MARSH not enter or associate with any person or business that sells firearms, that he not attempt to purchase or possess any firearms, and that he agree to the installation of computer software that will monitor his Internet activity and alert the U.S. Probation Office if he attempts to purchase a firearm over the Internet. MARSH was also ordered to receive mental health counseling and treatment.
“By imposing the longest term of probation available, today’s federal sentence supplements the state court’s eight-year jail sentence by maximizing the protection afforded to society and simultaneously providing the defendant with the supervision and mental health counseling he so clearly needs,” stated U.S. Attorney Daly.
On August 22, 2013, David Laguercia, the owner and operator of Riverview Gun Sales, pleaded guilty to one count of transfer of a firearm before completion of background check, and one count of failure to maintain proper firearm records. Laguercia also entered a guilty plea on behalf of Riverview Sales, Inc. to one count of making false entries in dealer’s records. Laguercia and his business await sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford and East Windsor Police Departments. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
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(203) 821-3722 [email protected]Six Involved in Southeastern Connecticut Narcotics Distribution Ring Plead GuiltyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that six men pleaded guilty yesterday in New Haven federal court to heroin distribution offenses. The defendants were arrested in April 2013 as part of a Homeland Security Investigations (“HSI”) and New London Police Department-led investigation into the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut.
According to court documents and statements made in court, Luis Ariel Capellan Maldonado, also known as “Ariel,” regularly procured multi-kilogram quantities of heroin from the Dominican Republic and worked with several individuals to distribute the drug in southeastern Connecticut. Operating out of his apartment building on Hawthorne Drive in New London, Capellan Maldonado supplied customers with raw heroin, often in quantities of 50 to 150 grams. He also had access to kilogram quantities of cocaine and sometimes supplied cocaine to wholesale cocaine distributors in New London.
The investigation revealed that Capellan Maldonado coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. He also obtained heroin from other sources in New York City and Rhode Island.
Capellan Maldonado, 27, a citizen of the Dominican Republic, pleaded guilty on November 6, 2013, and awaits sentencing. Yesterday, the following six individuals pleaded guilty to heroin conspiracy charges:
MIGUEL MORALES, also known as “Neow,” 49, of New London, JOSE MORALES, 53, of New London, LESTER FANTAUZZI, 47, of Niantic, EMMANUEL BLANCO BALBUENA, 29, of New London, JOSE REYNOSO-MONEGRO, also known as “Culito,” 44, of New York, N.Y., EDWIN CEPEDA, 34, of Groton
More than 100 individuals have been charged with federal and state offenses as a result of this investigation. To date, 26 of the 49 defendants charged with federal offenses have pleaded guilty.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant United States Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Senegal National Convicted of Making False Statements During Application Process for Permanent ResidencyRead the Press Release
PROVIDENCE, R.I. – Serigne Diokhane, 39, of Woonsocket, R.I., a native of Dakar, Senegal, was convicted today by a federal court jury in Providence of making false representations to immigration officials when applying for permanent residency in the United States. Diokhane faces up to five years in federal prison, followed by up to 3 years supervised release and a fine of up to $250,000 when he is sentenced by U.S. District Court Judge Mary M. Lisi on April 3, 2014.
Diokhane’s conviction was announced by United States Attorney Peter F. Neronha, Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations, and Warwick Police Chief Colonel Stephen M. McCartney.
According to the government’s evidence, in February 2012, Serigne Diokhane applied to the U.S. Citizenship and Immigration Service (USCIS) field office in Johnston, R.I., for permanent resident status in the United States. During an application interview, Diokhane signed a sworn statement denying he had ever used any other name in any situation or on any application. A routine background investigation and check of USCIS computer data files revealed that fingerprints taken from Diokhane matched a person identified as Mohamed Sy, 39, of Mauretania, who had submitted an application for asylum at the Newark, New Jersey Immigration Center in September 1998. A Warwick Police Department fingerprint expert examined both sets of fingerprints and confirmed they matched and belonged to Serigne Diokhane.
Serigne Diokhane was indicted by a federal grand jury and arrested on June 12, 2013, on one count of making false representations to government officials.
The case was prosecuted by Assistant U.S. Attorney Zechariah Chafee.
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Contact: 401-709-5357
[email protected]Salisbury Man Sentenced to 13 Years in Prison for Bank RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Gary Allen Mitchell, age 43, of Salisbury, Maryland, today to 13 years in prison followed by three years of supervised release for bank robbery. Judge Motz enhanced Mitchell’s sentence upon find that he is a career offender based on two prior federal bank robbery convictions – one each in Maryland and Delaware.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Salisbury Police Chief Barbara Duncan; and Wicomico County State’s Attorney Matthew Maciarello.
According to his plea agreement, on March 21, 2013, Mitchell robbed the PNC bank in the 300 block of Civic Avenue in Salisbury. Mitchell gave the teller a note stating that he was robbing the bank, that he would harm the teller if she did not comply with his demands, and that he had a gun. Mitchell had his hand in his pocket as if he had a gun. Mitchell further advised the teller not to pull the alarm, nor give him any marked money, dye packs or tracking devices. The teller gave Mitchell $4,177, including a tracking device within a stack of $50 bills, as per bank policy. Mitchell became angry that the teller included the tracking device, and threw the stack of money on the counter.Police officers arrested Mitchell, who was found smoking crack cocaine shortly after the bank robbery, and recovered the proceeds of the robbery. At the time of the robbery, Mitchell was on supervised release for a previous federal bank robbery conviction.
United States Attorney Rod J. Rosenstein praised the FBI, Salisbury Police Department and Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who prosecuted the case.Rodney Miller Sentenced to 21 Months in Prison for Tax FraudRead the Press Release
St. Thomas, USVI B District Court Judge Curtis V. Gomez today sentenced Rodney E. Miller, Sr., former Chief Executive Officer of Schneider Regional Medical Center, to 21 months in federal prison for income tax fraud, announced United States Attorney Ronald W. Sharpe and Internal Revenue Service Special Agent in Charge Jose A. Gonzalez.
Miller, 41, was remanded to the custody of the United States Marshals Service to begin serving his sentence at the conclusion of today’s hearing. In addition to the prison sentence, Judge Gomez ordered Miller to serve one year of supervised release upon completion of his prison sentence, and pay $86,798 in restitution to the Virgin Islands Bureau of Internal Revenue.
According to the evidence presented at trial, in 2006 Miller received taxable income and compensation from his position as CEO of Schneider Regional Medical Center in the amount of $510,947. The evidence further showed that Miller had funds directed to several bank accounts. When he filed his 2006 income tax return, Miller only reported income in the amount of $265,198, and a tax owing of $39,810. However, based on his true income for 2006 ($510,947) Miller’s tax liability was actually $126, 608, more than three times what he claimed he owed on his 2006 return.
“Individuals who evade taxes and commit tax fraud undermine the integrity and fairness of the income tax collection system,” U.S. Attorney Sharpe said. “With the assistance of the Internal Revenue Service and our partners at the Virgin Islands Bureau of Internal Revenue, tax cheats in the Virgin Islands will be vigorously investigated and prosecuted.”
“Today, justice is served, as Miller is being held accountable for intentionally violating his responsibility to pay his fair share of taxes to the VI BIR as mandated by law,” Special Agent in Charge Gonzalez said.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and prosecuted by Assistant United States Attorney Kim L. Chisholm.
Purported Environmental Product Inventor and Developer Sentenced to 48 Months in Prison for $5 Million Fraud SchemeRead the Press Release
Theodore Sweeten, the president of Symtech International, Inc. (“Symtech”), was sentenced today in federal court in Brooklyn, New York, to 48 months in prison to be followed by three years of supervised release. As part of the sentence, Sweeten was ordered to forfeit more than $600,000 to the government and pay $5,001,949 in restitution to the defrauded investor. Sweeten was remanded into federal custody. In June 2013, Sweeten pleaded guilty to a charge of wire fraud for defrauding an individual investor of $5 million through, among other things, false representations about his investment and environmental expertise.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Theodore Sweeten conned an unsuspecting investor of $5 million by claiming to have expertise in environmental and financial products, when in reality, his only expertise was in fraud. Sweeten told the victim his money would be safe until their investment goals were accomplished. Instead, he and his cohorts simply stole the money and gave the victim phony documents and a trail of lies, each one more fanciful than the last. Those who seek to prey on the investing public through lies and deceit are on notice that they will be held accountable for their crimes,” stated United States Attorney Lynch. Ms. Lynch thanked the FBI, the agency responsible for leading the government’s investigation.
Sweeten, who claimed he developed and patented the “Clean Air Valve” among other environmental products, defrauded an investor of $5 million by lying to him about his expertise in their joint venture agreement. Sweeten, and two others, induced the victim to make the investment in order to “lease” a credit line of $100 million, which in turn would enable them to generate millions of dollars in profit through special investment programs.1 In furtherance of that scheme, Sweeten and his co-conspirators falsely represented that the victim’s funds would be held in an attorney escrow account pending confirmation of the posting of $100 million in the leased-funds account. In fact, they simply distributed the victim’s $5 million among themselves and falsely represented that a $100 million account had been created at HSBC by sending the victim fabricated bank documents on HSBC letterhead.
When the victim discovered that the bank documents on HSBC letterhead were phony, he requested a refund of the $5 million that he had deposited into the attorney escrow account. In response, Sweeten and his co-conspirators told the victim that the money had been disbursed to the investors who created the $100 million account. Sweeten then claimed innocence and placed the blame for the victim’s lost funds on his co-conspirators. In particular, Sweeten concealed from the victim the fact that he had requested and received more than $600,000 of the escrowed funds more than four months prior to the issuance of the fabricated HSBC documents. When the victim eventually confronted Sweeten about the money that Sweeten had withdrawn from the attorney’s escrow account, Sweeten lied to the victim yet again and told him that he had invested the withdrawn funds on the victim’s behalf into other highly profitable projects, including a gold mine project. Sweeten continued with these lies to the victim, in emails and telephone conversations, for more than three years after stealing the victim’s money.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes and Marcia M. Henry.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
THEODORE SWEETEN
Age: 61
Residence: Ashland, Oregon
E.D.N.Y. Docket No. 12-CR-471
1 The charges against the co-defendants are merely allegations, and they are presumed innocent unless and until proven guilty.
Postal Carrier Arrested for Theft of Government PropertyRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces the arrest of Orville Dwight Hylton (40, Riverview), on a federal complaint, charging him with theft of government property. If convicted, he faces a maximum penalty of 10 years’ imprisonment for each offense.
According to the complaint, Hylton, a United States Postal Service mail carrier, attempted to sell nearly $20,000 worth of fraudulently obtained United States Treasury checks, in other peoples’ names, for a discounted amount. The addresses on the fraudulent tax refund checks were located in the same postal zip code, where Hylton delivered the United States mail
This case was part of an ongoing joint investigative effort by the Federal Bureau of Investigation, United States Postal Service - Office of the Inspector General, Internal Revenue Service – Criminal Investigation, and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
Pharmacist Arrested in New Jersey, Charged with Assembling Illegal Drug LabRead the Press Release
NEWARK, N.J. – A Colorado man today admitted his role in a conspiracy to transport women across state lines for prostitution in New Jersey and other states, U.S. Attorney Paul J. Fishman announced.
James Roy Smith, 36, a/k/a “Mister Smith,” of Lakewood, Colo., pleaded guilty before U.S. District Judge Stanley R. Chesler to a superseding information charging him with conspiracy to transport women across state lines to work as prostitutes, and transportation of a victim across state lines with the intent that the victim work as a prostitute.
According to documents filed in this case and statements made in court:
From February 2009 through June 27, 2010, Smith conspired to operate a prostitution business in numerous locations around the United States, including New Jersey, New Mexico, Nebraska, and Pennsylvania. The women would be transported between states by air as well as in a Cadillac Escalade registered to Smith’s uncle. In order to attract and locate local customers, the conspirators would place advertisements for escort services on Craigslist as well as Backpage. com.
Smith admitted that in late June 2010, he conspired to transport six women from New Jersey to Philadelphia, Pa., to work as prostitutes. During that time, while checked in at the Econolodge in Elizabeth, N.J., he also caused a victim to be transported between these two states with the intent that the victim work as a prostitute.
The count of interstate transportation for the purpose of engaging in prostitution is punishable by a maximum potential penalty of 10 years in prison and the count of conspiracy to engage in that same offense is punishable by a maximum potential penalty of five years in prison. Both counts are also punishable by a fine of $250,000. Sentencing is scheduled for April 29, 2014.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea. He also thanked FBI offices in Omaha, Neb., and Salt Lake City, Utah; the Union County, N.J., Prosecutor’s Office; the Elizabeth, N.J., Police Department; and the Clay County, Neb., Sheriff’s Office for their roles.
The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Criminal Division in Newark.
14-007
Defense counsel: Brooke M. Barnett Esq., Newark
Smith, James Roy Superseding Information
Owner of Hobbs Gun Shop and His Parents Plead Guilty to Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – The owner of a gun shop in Hobbs, N.M., and his parents, who assisted their son in operating the gun shop, pleaded guilty this afternoon in Las Cruces federal court to violating the federal firearms laws, announced Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Carlos Jonathan Cruz, 31, the owner of Hobbs Satellite Company Guns & Ammo, and his parents, Carlos Carlon Cruz, 60, and Norma M. Cruz, 56, were indicted in June 2013 and charged with violating the federal firearms laws by making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser” and buying firearms on behalf of others. Carlos Jonathan Cruz also was charged with unlawfully selling thousands of rounds of ammunition to an alien illegally in the United States, unlawfully possessing an unregistered sawed-off shotgun, and unlawfully possessing firearms with obliterated serial numbers.
During today’s proceedings, Carlos Jonathan Cruz pled guilty to a felony information charging him with (1) making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser,” and (2) unlawfully possessing firearms with obliterated serial numbers. In entering his guilty plea, Carlos Jonathan Cruz admitted that on April 23, 2013, he knowingly aided and abetted the making of a false statement by a straw purchaser who bought two firearms at his gun shop for an individual who was working as a confidential informant for the ATF. Cruz also admitted possessing a firearm with an obliterated serial number on May 29, 2013.Carlos Jonathan Cruz’s parents each pled guilty to a felony information charging them with (1) making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser,” and (2) unlawfully selling ammunition to a prohibited person. In entering their guilty pleas, Carlos Carlon Cruz and Norma Cruz admitted that on April 9, 2013, they sold 2,500 rounds of ammunition to an alien who was illegally in the United States. They also admitted that on April 23, 2013, they knowingly aided and abetted the making of a false statement by a straw purchaser who bought two firearms at his gun shop for an individual who was working as a confidential informant for the ATF.
Under the terms of their plea agreements, Carlos Jonathan Cruz and Carlos Carlon Cruz will be sentenced to prison terms not to exceed 41 months of imprisonment and Norma Cruz will be sentenced to a prison term not to exceed 30 months of imprisonment. They also are required to forfeit approximately 165 firearms, 25,703 rounds of ammunition and six silencers. Their sentencing hearings have yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Drug Enforcement Administration and the Hobbs Police Department, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office. Assistant U.S. Attorney Cynthia L. Weisman is handling the forfeiture proceedings.
Omaha Woman Sentenced for Interstate Prostitution Enterprise ConspiracyRead the Press Release
United States Attorney Deborah R. Gilg announced that Tabatha N. Ashburn was sentenced on Monday, January 6, 2014, by U.S. District Judge Laurie Smith Camp to a term of probation for five years, twelve months of which must be served under the location monitoring program.
Ms. Ashburn pled guilty on October 7, 2013, to one count of conspiracy to use facilities in interstate commerce in aid of a racketeering enterprise, that is, a business enterprise involving prostitution, and to induce travel in interstate commerce with intent to engage in prostitution.
Starting in approximately April 2008, and continuing to in or about January 2012, Defendant assisted in operating three “spas” in Omaha, Nebraska. The spas had different names over time, but were frequently referred to as the 93rd Street Spa, the 72nd Street Spa and the It Works Spa (collectively, the “Spas”). Defendant entered an arrangement to purchase one of the Spas as an ongoing business and make payments over time. Defendant never ultimately completed the purchase of that Spa location.
Each of the Spas was, in fact, a front for prostitution. The majority of customers received sex acts from workers, rather than legitimate spa services, in exchange for money. Defendant had “sessions” with customers during which she provided sex acts in exchange for money. Some customers traveled to the Spas from Iowa and from other states to obtain sex acts for money.
Customers paid a fee that varied by the length of the “session.” That fee was kept by the Spas. Customers separately negotiated a “tip” with the worker, which the worker kept. During certain periods of time, workers at the Spas were required to pay a daily fee to the Spas for “booth rental.”
During certain periods of time, Defendant herself worked at the front desk, answering the phones, taking appointments and collecting money. During other periods of time, Defendant oversaw and managed workers who handled these duties at the front desk.Defendant placed advertisements for the Spas on the internet. The Spas also maintained a website accessible over the internet. The website advertised available services and contact information, and included a “Members Only” section. Established customers of the Spas were given a user name and password by which they could access the “Members Only” section. Members accessing this section could read about the female workers providing services and view provocative pictures of them.
Customers arranged appointments for “sessions” using cellular telephones and other facilities in interstate commerce. The website also allowed customers to communicate with the Spas by e-mail and to set up appointments online.Defendant also helped maintain a computerized record keeping and management system, entitled “Spa Manager.” The Spa Manager system generated text messages to workers’ cell phones to notify them of appointments for which they had been scheduled. The Spa Manager system also tracked various data related to the spas’ operation.
The investigation was conducted by the Federal Bureau of Investigation, the Omaha Police Department and the Internal Revenue Service, under the auspices of the Child Exploitation Task Force, which also includes the Council Bluffs Police Department, the Douglas County Sheriff’s Office, the La Vista Police Department, the Mills County Sheriff’s Office and the Nebraska State Patrol.
During the time when Defendant assisted in managing the Spas, there were an overall total of more than twenty workers providing commercial sex acts.Non-Indian Man Sentenced to Probation for Assaulting an Indian ChildRead the Press Release
ALBUQUERQUE – Jose J. Romero, 39, a non-Indian resident of Isleta Pueblo, was sentenced on Jan. 3, 2014 to 18 months of probation for his misdemeanor simple assault conviction.
Romero entered a guilty plea on Sept. 26, 2013, to a misdemeanor information charging him with simple assault of an individual who had not attained the age of 16 years. In his plea agreement, Romero admitted striking an Indian child under the age of 16 years in the face on Jan. 16, 2013. He further admitted that his unlawful conduct occurred within Isleta Pueblo.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Isleta Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Non-Indian Man Pleads Guilty to Assaulting an Indian During a Home Invasion on Santa Clara PuebloRead the Press Release
ALBUQUERQUE – Cristian K. Watson, 20, a resident of Tierra Azul, N.M., pleaded guilty this morning to a felony information charging him with assault resulting in serious bodily injury under a plea agreement with the U.S. Attorney’s Office.
Watson was arrested on Feb. 27, 2012, on a criminal complaint charging him with assault with a dangerous weapon and with the intent to do bodily harm. According to the criminal complaint, Watson assaulted an enrolled member of the Shoshone Band of Indians who was living in Santa Clara Pueblo during a home invasion on Feb. 12, 2012.
During today’s plea hearing, Watson entered a guilty plea to an assault charge and admitted assaulting the victim on Feb. 12, 2012. Court records reflect that on that day, Watson and an accomplice, Joshua Phillips, 21, a member and resident of Ohkay Owingeh Pueblo, committed a home invasion at a Santa Clara Pueblo residence for the purpose of robbing the owner. Watson admitted repeatedly stabbing the victim, who lived in the residence, while helping Phillips steal pills from the victim. In his plea agreement, Watson acknowledged that the victim sustained five puncture wounds as a result of the assault, each of which required multiple staples to close.
A sentencing, Watson faces a maximum penalty of ten years in prison. Watson remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
Phillips previously entered a guilty plea to a felony information charging him with aiding and abetting an assault resulting in serious bodily injury and was sentenced on Dec. 13, 2013, to ten months in prison followed by three years of supervised release.
The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Northern Pueblos Agency, with assistance from the Santa Clara Pueblo Tribal Police Department and the Espanola Police Department, and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Modesto Man Sentenced to over Six Years in Prison for Bank RobberyRead the Press Release
SACRAMENTO, Calif. — Troy Foster Mitchell, 47, of Modesto, was sentenced today by United States District Judge Lawrence K. Karlton to six years and five months in prison and ordered him to pay $10,114 in restitution for bank robberies in Modesto and Stockton, United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 14, 2013, while on supervised release after serving a prison term for a previous conviction, Mitchell entered the Valley First Credit Union in Modesto and passed a note to the bank teller demanding $5,000 in cash. The teller complied with the demand, and while she was doing so, another teller, recognizing Mitchell, walked by and said, “Hi, Troy.” Mitchell acknowledged her, and departed the credit union with $5,000 in cash.
Mitchell had filed an auto loan application with the bank on April 3, 2013, that included a copy of his driver’s license. Immediately following the robbery, a bank employee retrieved the application and gave it to the Modesto Police Department. Surveillance photos of the robber were consistent with Mitchell’s driver’s license photo. The application and driver’s license in the file listed Mitchell’s home address.
According to the plea agreement, on May 31, 2013, Mitchell entered the Bank of the West in Stockton and passed a note to the bank teller demanding all of the $100 bills without a dye pack. The teller gave Mitchell $5,114. Mitchell departed the bank, leaving the demand note behind. The demand note was written on the back of a voided paycheck made out to Troy F. Mitchell and listed Mitchell’s home address.
This case is the product of an investigation by the Federal Bureau of Investigation, the Modesto Police Department, and the Stockton Police Department. Assistant United States Attorney Sherry D. Hartel Haus prosecuted the case.
Mexican National Sentenced to Ten Years in Federal Prison for Methamphetamine Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Sergio Saenz-Amaya, 30, a Mexican national illegally in the United States, was sentenced earlier today to 120 months in federal prison for his methamphetamine trafficking and firearms conviction. Saenz-Amaya will be deported after he completes his prison sentence.
Saenz-Amaya and his co-defendant, Manuel Adrian Aldarette, 32, also a Mexican national illegally in the United States, were arrested on a criminal complaint in Oct. 2012, after Saenz-Amaya and Aldarette engaged in a drug trafficking transaction with a person who unbeknownst to them was a confidential informant with Homeland Security Investigations (HSI). Saenz-Amaya and Aldarette subsequently were indicted and charged with possession of methamphetamine with intent to distribute. Saenz-Amaya also was charged with using a firearm in furtherance of a drug trafficking crime.
Saenz-Amaya pled guilty to possession of methamphetamine with intent to distribute and using a firearm in relation to a drug trafficking crime on Aug. 1, 2013.
Aldarette pled guilty to possession of methamphetamine with intent to distribute on Aug. 12, 2013. Aldarette remains in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Aldarette faces a maximum of 20 years in prison. He will be deported after serving his prison sentence.
This case was investigated by the Albuquerque office of HSI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Lynn W.Y. Wang.
Mercer Pedophile with Child Pornography Pleads Guilty to Federal ChargeRead the Press Release
BLUEFIELD, W.Va. – A 60-year-old Mercer County pedophile faces up to 20 years in prison after pleading guilty yesterday to possession of child pornography, U.S. Attorney Booth Goodwin announced. Johnny Richard Rowe, of Bluewell, W.Va., entered a guilty plea on Jan. 6 before Senior United States District Court Judge David A. Faber in Bluefield.
On June 19, 2013, Rowe possessed pictures of prepubescent minors having sex or performing sexual acts. Rowe possessed the images depicting child pornography on his personal computer.
Rowe is scheduled to be sentenced on May 12, 2014.
The West Virginia Internet Crimes Against Children Task Force and the Mercer County Sheriff’s Department conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Medical Device Manufacturer Charged With<br /> Major Securities Fraud SchemeRead the Press Release
ArthroCare Corporation, a medical device manufacturer based in Austin, Texas, and that trades on the NASDAQ stock exchange, has agreed to pay a $30 million monetary penalty to resolve charges that senior executives at the company engaged in a securities fraud scheme that resulted in more than $400 million in shareholder losses, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Robert Pitman of the Western District of Texas.
John Raffle and David Applegate, both former senior vice presidents of ArthroCare, previously pleaded guilty to conspiracy to commit securities and wire fraud in connection with the fraud scheme. ArthroCare’s former chief executive officer, Michael Baker, and chief financial officer, Michael Gluk, are scheduled to stand trial on related charges on May 5, 2014. Defendants are presumed innocent unless and until proven guilty at trial.
As part of the agreed-upon resolution, the department today filed a criminal information in the Western District of Texas charging ArthroCare with one count of conspiracy to commit securities fraud and wire fraud. In addition to the monetary penalty, ArthroCare also agreed to cooperate with the department in its continuing investigation and prosecution of individuals responsible for the scheme and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect violations of the federal securities laws and federal laws relating to the company’s relationships and transactions with health care providers. ArthroCare had previously entered into a multi-million dollar settlement agreement with shareholder victims.
In the deferred prosecution agreement, ArthroCare admitted that senior executives of the company inflated ArthroCare’s revenue by tens of millions of dollars; concealed the nature and financial significance of ArthroCare’s relationship with its largest distributor, DiscoCare Inc., and other distributors; and used a series of sham transactions to manipulate ArthroCare’s revenue and earnings as reported to investors. ArthroCare admitted that its executives determined the type and amount of product to be shipped to distributors, notably DiscoCare, based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders.
ArthroCare further admitted that these executives and others then caused ArthroCare to “park” millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter so the company could report these shipments as sales in its quarterly and annual filings and so the company would appear to have met or exceeded internal and external earnings forecasts.
According to the Information, between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.
This case was investigated by the FBI’s Austin Field Office. The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William Chang of the Criminal Division’s Fraud Section. Significant assistance was provided by the SEC’s Fort Worth, Texas, Office.Medical Clinic Owner and Other Patient Recruiters Plead Guilty in Miami for Roles in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including a medical clinic owner, pleaded guilty today in connection with a health care fraud scheme involving Flores Home Health Care Inc., a defunct home health care company.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement.
At a hearing held before U.S. District Judge Ursula Ungaro of the Southern District of Florida, Lerida Labrada, 59, of Miami, pleaded guilty to conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison, and Mayra Flores, 49, and German Martinez, 36, both of Miami, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks, which carries a maximum penalty of five years in prison. Sentencing has been scheduled for March 14, 2014.
According to court documents, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Labrada also owned and operated a Miami medical clinic that provided fraudulent prescriptions to patient recruiters and to the owners and operators of Flores Home Health.
Flores Home Health was operated for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
The defendants would recruit patients for Flores Home Health and would solicit and receive kickbacks and bribes from the owners and operators of Flores Home Health in return for allowing the agency to bill the Medicare program on behalf of the recruited Medicare patients. These Medicare beneficiaries were billed for home health care and therapy services that were not medically necessary and/or not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for fraudulent claims for home health services.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.govMedical Clinic Owner Pleads Guilty in Miami for Role in Multiple Health Care Fraud Schemes Totaling over $20 MillionRead the Press Release
The owner and operator of a Miami medical clinic pleaded guilty today in connection with multiple health care fraud schemes involving the defunct clinic Merfi Corp.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement.
Isabel Medina, 49, of Miami, pleaded guilty before U.S. District Judge Ursula Ungaro of the Southern District of Florida to conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison. Sentencing has been scheduled for March 14, 2014.
According to court documents, Medina was an owner and operator of Merfi, a Miami medical clinic which employed physicians, physician assistants and other medical professionals who were authorized by law to dispense prescriptions for home health care services. Through Merfi, Medina and her co-conspirators provided fraudulent home health and therapy prescriptions and other medical documentation to the owners and operators of Flores Home Health Care Inc. and other home health care agencies, as well as to patient recruiters, in return for kickbacks and bribes.
Flores Home Health and these other home health care agencies purported to provide home health and therapy services to Medicare beneficiaries, but were in fact operated for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or not provided.
Medina has acknowledged that her involvement in fraudulent schemes at multiple home health care companies, including Flores Home Health, resulted in losses to the Medicare Program exceeding $20 million.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.govMedical Clinic Owner Pleads Guilty in Miami for Role in Multiple Health Care Fraud Schemes Totaling over $20 MillionRead the Press Release
The owner and operator of a Miami medical clinic pleaded guilty today in connection with multiple health care fraud schemes involving the defunct clinic Merfi Corp.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement.
Isabel Medina, 49, of Miami, pleaded guilty before U.S. District Judge Ursula Ungaro of the Southern District of Florida to conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison. Sentencing has been scheduled for March 14, 2014.
According to court documents, Medina was an owner and operator of Merfi, a Miami medical clinic which employed physicians, physician assistants and other medical professionals who were authorized by law to dispense prescriptions for home health care services. Through Merfi, Medina and her co-conspirators provided fraudulent home health and therapy prescriptions and other medical documentation to the owners and operators of Flores Home Health Care Inc. and other home health care agencies, as well as to patient recruiters, in return for kickbacks and bribes.
Flores Home Health and these other home health care agencies purported to provide home health and therapy services to Medicare beneficiaries, but were in fact operated for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or not provided.
Medina has acknowledged that her involvement in fraudulent schemes at multiple home health care companies, including Flores Home Health, resulted in losses to the Medicare Program exceeding $20 million.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medical Clinic Owner and Other Patient Recruiters Plead Guilty in Miami for Roles in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including a medical clinic owner, pleaded guilty today in connection with a health care fraud scheme involving Flores Home Health Care Inc., a defunct home health care company.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement.
At a hearing held before U.S. District Judge Ursula Ungaro of the Southern District of Florida, Lerida Labrada, 59, of Miami, pleaded guilty to conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison, and Mayra Flores, 49, and German Martinez, 36, both of Miami, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks, which carries a maximum penalty of five years in prison. Sentencing has been scheduled for March 14, 2014.
According to court documents, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Labrada also owned and operated a Miami medical clinic that provided fraudulent prescriptions to patient recruiters and to the owners and operators of Flores Home Health.
Flores Home Health was operated for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
The defendants would recruit patients for Flores Home Health and would solicit and receive kickbacks and bribes from the owners and operators of Flores Home Health in return for allowing the agency to bill the Medicare program on behalf of the recruited Medicare patients. These Medicare beneficiaries were billed for home health care and therapy services that were not medically necessary and/or not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for fraudulent claims for home health services.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Filing of Criminal Charges Against and Deferred Prosecution Agreement with JPMorgan Chase Bank, N.A., in Connection with Bernard L. Madoff’s Multi-Billion Dollar Ponzi SchemeRead the Press Release
Charges to Be Deferred for Two Years Under an Agreement Requiring JPMorgan to Admit to Its Conduct; Pay $1.7 Billion to Victims of Madoff’s Fraud; and to Reform Its Anti-Money Laundering Policies
$1.7 Billion Payment by JPMorgan is the Largest Ever Bank Forfeiture and Department of Justice Penalty for a Bank Secrecy Act Violation
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced criminal charges against JPMorgan Chase Bank, N.A. (“JPMorgan” or the “Bank”), consisting of two felony violations of the Bank Secrecy Act, in connection with the Bank’s relationship with Bernard L. Madoff Investment Securities (“Madoff Securities”). The case is assigned to United States District Judge Lewis A. Kaplan.
Also today, Mr. Bharara announced an agreement (the “Agreement”) with JPMorgan, under which the Bank agreed to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statement of Facts; to pay a $1.7 billion penalty to the victims of the Madoff fraud through a parallel civil forfeiture complaint; to refrain from future criminal conduct and cooperate fully with the Government; and to continue reforms of its Bank Secrecy Act (“BSA”)/Anti-Money Laundering compliance program. The criminal charges are contained in a two-count felony Information (the “Information”). Assuming the Bank’s continued compliance with the Agreement, the Government has agreed to defer prosecution on the Information for a period of two years, after which time the Government will seek to dismiss the charges.
Manhattan U.S. Attorney Preet Bharara said: “Today, the largest financial institution in the country stands charged with two criminal offenses. Institutions, not just individuals, have an obligation to follow the law and to police themselves. They must exercise due care not only with their own money but with other people’s money also. In this case, JPMorgan connected the dots when it mattered to its own profit, but was not so diligent otherwise. Fortunately, with today’s resolution, the bank has accepted responsibility and agreed to continue reforming its anti-money laundering practices. Most importantly, the victims of Bernie Madoff’s epic fraud are $1.7 billion closer to being made whole.”
FBI Assistant Director-in-Charge George Venizelos said: “J.P. Morgan failed to carry out its legal obligations while Bernard Madoff built his massive house of cards. Today, J.P. Morgan finds itself criminally charged as a consequence. But it took until after the arrest of Madoff, one of the worst crooks this office has ever seen, for J.P. Morgan to alert authorities to what the world already knew. In order to avoid these types of disasters in the future – we all need to be invested in making our markets safer and more equitable. The FBI can’t do it alone. Traders, compliance officers, analysts, bankers, and executives are the gatekeepers of the financial industry. We need their help protecting our markets.”
In separate actions, the United States Department of the Treasury, Office of the Comptroller of the Currency (“OCC”), and the Financial Crimes Enforcement Network (“FinCEN”), announced that they had also reached agreements with JPMorgan.
According to the documents filed today in Manhattan federal court:
Since 1986, JPMorgan and its predecessor institutions served as the primary bank through which Madoff ran his Ponzi scheme. Madoff Securities maintained a series of linked checking and brokerage accounts at JPMorgan – collectively referred to as the “703 Account.” Madoff was a client of the Bank’s broker/dealer banking group, an investment bank group that comprised personnel from various business lines that serviced the needs of broker/dealer clients. JPMorgan designated a banker as Madoff’s “relationship manager,” who was principally responsible for Madoff’s business with the Bank, as well as for the Bank’s first-line BSA responsibilities, including certifying that the Madoff relationship “complies with relevant legal and regulatory-based policies,” and “that the necessary due diligence has been performed.”
Early on in its relationship with Madoff Securities, JPMorgan, because of its unique vantage point as the firm’s banker, had reason to be suspicious about Madoff. For example, in the early 1990s the Bank learned that Madoff and a prominent client of JPMorgan’s Private Bank (the “Private Bank Client”) were engaged in what looked like round-tripping, check-kiting transactions. Another bank involved in these transactions (“Madoff Bank 2”) recognized them as suspicious and without any legitimate business purpose. In or about 1996, unlike JPMorgan, Madoff Bank 2 not only filed a suspicious activity report (“SAR”) with law enforcement, but it actually closed down Madoff’s account. As a result, Madoff moved all of his accounts from Madoff Bank 2 to JPMorgan, where the size of these transactions became much larger. For example, in December 2001 alone, the Private Bank Client engaged in approximately $6.8 billion worth of transactions with Madoff through a series of circular $90 million transfers.
Over the years, other parts of the Bank developed their own suspicions about Madoff. In 2006, an entirely different part of the Bank – a derivatives trading desk located in the London branch of JPMorgan’s Investment Bank – became interested in Madoff. The trading desk began receiving requests to issue derivatives tied to the performance of various Madoff “feeder” funds – funds that sent investor money to Madoff Securities. In order to hedge and offset the risk created by these products, JPMorgan invested the Bank’s own capital directly in the feeder funds. The Bank initially issued about $100 million of Madoff-linked products in 2006 and early 2007. Then, because of continued demand for these products, in the summer of 2007, the traders on the London desk sought to write more than $1 billion in Madoff-linked derivatives – a large deviation from normal risk limits, which therefore had to be approved by the Investment Bank’s Chief Risk Officer. In June 2007, the Chief Risk Officer convened a committee to consider authorizing a request for more than $1.3 billion of the Bank’s proprietary capital to be invested directly into Madoff feeder funds to hedge the issuance of additional derivative products tied to the performance of Madoff feeder funds. Ultimately, the Chief Risk Officer – who at one point was told by a senior colleague that there is a “well-known cloud over the head of Madoff and that his returns are speculated to be part of a Ponzi scheme” – rejected the proposal and set the Madoff risk limit at $250 million.
Over the next several months, JPMorgan began to have increasing concerns about its exposure to Madoff. In late 2007, the London trading desk hired its own due diligence staff; on the first day of his job, the newly-hired head of hedge fund due diligence was directed to review the Madoff feeder fund positions and offer any insight into how Madoff was able to generate his purported returns. Ultimately, in October 2008, the London desk’s due diligence team circulated a negative memorandum describing continuing concerns about Madoff. Among other things, the memorandum described the inability of JPMorgan to validate Madoff’s trading activity or custody of assets, questioned Madoff’s “odd choice” of a one-man accounting firm, and generally made the point that JPMorgan “seem[ed] to be relying on Madoff’s integrity” with little reason to do so.
About two weeks after the circulation of this memorandum, on October 29, 2008, JPMorgan filed a report with regulators in the United Kingdom, listing Madoff Securities as the “main subject – suspect” and repeating many of the concerns from that earlier memo. The report to the UK regulators concluded that Madoff’s returns were “probably” “too good to be true,” and “as a result,” JPMorgan was withdrawing about $300 million of its own money from the Madoff feeder funds. On November 19, 2008, the Bank filed a second report, notifying U.K. regulators about an additional planned transaction involving its position in the feeder funds, lest JPMorgan “be considered party to laundering the proceeds of crime.” As part of a broader directive to reduce generally the Bank’s exposure to hedge funds, between October 2008 and Madoff’s arrest on December 11, JPMorgan redeemed approximately $288 million of its approximately $370 million position in the Madoff feeder funds.
Although JPMorgan filed a report with UK regulators about its concerns relating to Madoff, it failed to do so in the United States. While the suspicions raised by the UK bankers led to JPMorgan’s own redemptions from Madoff feeder funds, during the same time, U.S.-based anti-money laundering compliance officers at JPMorgan never looked into Madoff, and nor was the relationship sponsor alerted about the London desk’s concerns. And while certain senior compliance officers in the United States were provided with all of the relevant facts – critically, the London traders’ suspicions about Madoff and the fact of the decades-long banking relationship with Madoff – the U.S. compliance officers did very little to investigate those suspicions, failed to raise these concerns with the bank’s anti-money laundering department, and failed to file a SAR.
Meanwhile, the balance in the 703 Account that held the billions Madoff stole from his customers was being drained. In August 2008, the account held approximately $5.6 billion. But by October 16, 2008 – the date of the negative memorandum described above – the balance had fallen to $3.7 billion. And on October 29, when the Bank filed its report in the U.K., the balance had fallen another $700 million, to about $3 billion. Over the next five weeks before Madoff’s arrest, a little over $2 billion exited the 703 Account. By the time Madoff was arrested on December 11, 2008, only about $234 million remained in the 703 Account. Of those lost billions, the vast majority went to the very funds in which JPMorgan had built a position, including about $288 million that went back to JPMorgan itself to pay for its redemptions from the feeder funds.
As a result of the foregoing conduct, this Office has entered into a Deferred Prosecution Agreement with JPMorgan, which has been submitted today to Judge Kaplan. Pursuant to the Agreement, the Bank has agreed to the following terms and conditions. First, JPMorgan has agreed to waive indictment and to the filing of the Information, charging the Bank with violations of the Bank Secrecy Act. Count One of the Information charges that JPMorgan failed to maintain an effective anti-money laundering program in 2008, as required under the BSA. Specifically, Count One alleges that JPMorgan failed to enact adequate policies, procedures, and controls to ensure that information about the Bank’s clients obtained through other lines of business – or outside the United States – was shared with compliance and AML personnel. Count Two of the Information alleges that JPMorgan violated the BSA by failing to file a Suspicious Activity Report on Madoff Securities in October 2008.
Second, pursuant to the Agreement, JPMorgan agrees to acknowledge responsibility for its conduct by, among other things, stipulating to the accuracy of a detailed Statement of Facts.
Third, JPMorgan agrees to pay a non-tax deductible penalty of $1.7 billion, in the form of a civil forfeiture, which the Government intends to distribute to the victims of the Madoff fraud, consistent with the applicable Department of Justice regulations, through the ongoing remission process. To effectuate that forfeiture, the Office has today filed a parallel civil forfeiture complaint, which has been assigned to United States District Judge Andrew L. Carter, Jr. The $1.7 billion penalty represents the largest ever financial penalty imposed by the Department of Justice for a violation of the Bank Secrecy Act, and the largest forfeiture from a bank. Information about the remission process, including instructions for filing a claim, can be found on its website at www.madoffvictimfund.com.
Fourth, JPMorgan agrees to various cooperation obligations, including (1) cooperation in connection with this Office’s ongoing investigation of the fraud at Madoff Securities; (2) an obligation to report any criminal conduct by any employee acting within the scope of his employment at JPMorgan; (3) reporting to this Office any BSA-related investigation or proceeding in which JPMorgan is involved; and (4) committing no subsequent federal crimes.
Fifth, JPMorgan agrees to continue reforming its Bank Secrecy Act/Anti-Money Laundering compliance programs and procedures, consistent with a pair of consent orders previously entered by the Bank’s principal regulators, and to provide quarterly reports and other information to this Office about its progress.
In consideration of these obligations, the Government has agreed to defer prosecution on the Information for a period of two years, after which time – assuming that the Bank does not violate the Agreement – the Government will seek to dismiss the charges.
Mr. Bharara praised the work of the FBI. He also thanked the OCC and FinCEN.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Arlo Devlin-Brown and Matthew L. Schwartz are in charge of the prosecution.
U.S. v. JPMorgan Chase - Deferred Prosecution Agreement Packet
Man Convicted at Trial for Role in Nearly $3 Million Health Care Fraud Scheme Involving the Operation of Euless Healthcare Corp. Is Sentenced to 72 Months in Federal PrisonRead the Press Release
Defendant Also Ordered to Pay $880,000 in Restitution
DALLAS — Godwin Umotong, 58, was sentenced, by U.S District Judge David C. Godbey, to 72 months in federal prison and ordered to pay $880,000 in restitution following his conviction at trial in April 2013 on charges stemming from his involvement in the operation of Euless Healthcare Corporation (EHC) and Medic Healthcare Incorporated (Medic). Umotong is the last of six defendants sentenced in the conspiracy. Judge Godbey ordered that Umotong, a resident of Houston, surrender to the Bureau of Prisons in March. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Umotong, an employee of EHC and Medic, and coconspirator Comfort Gates, 48, an employee of Medic, were each convicted at trial on one count of conspiracy to commit health care fraud. Umotong was convicted on five counts of health care fraud.
Other defendants in the case who have been convicted and sentenced are listed below. Each was also ordered to pay restitution of amounts ranging from approximately $195,000 to $1.4 million.
Ovsanna Agopian, 58, of Houston, 120 months in federal prison
Boghos Babadjanian, 55, of Sherman Oaks, Calif., probation
Leslie Omagbemi, 56, of Dallas, 30 months in federal prison
Munda Massaquoi, 69, of Houston, 37 months in federal prison
Comfort Gates, 48, of Houston, 72 months in federal prison
ECH was located on West Bedford Euless Road in Hurst Texas, and Medic, which operated from October 2009 to May 2011, was located on Bonhomme Road in Houston. Agopian, 58, was the operator of both EHC and Medic.
According to documents filed in the case and evidence presented at trial, Agopian, Umotong, Omagbemi, Massaquoi and Gates conspired together to submit, or cause to be submitted, fraudulent claims to Medicare for diagnostic tests and office visits. Agopian recruited unlicensed doctors to work for EHC and Medic by telling them that they would treat beneficiaries in the beneficiaries’ homes. Medicare does not pay for services performed by unlicensed persons. Nevertheless, these recruits went to beneficiaries’ homes and purported to conduct medical examinations, including ordering diagnostic tests. In total, more than $2.7 million was fraudulently billed, and of that amount, Medicare paid more than $1.3 million.
The case was investigated by the Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Michael Elliott prosecuted.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, go to: www.stopmedicarefraud.gov.
Lawton Woman Sentenced to 33 Months in Prison for Large-Scale ATM TheftRead the Press Release
Oklahoma City, Oklahoma – Maria Estelle Martin, 48, of Lawton, was sentenced today to 33 months in prison for embezzling cash from a credit institution, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, Martin worked as an armed security guard for a security company that serviced Lawton-area ATM machines for local banks and credit unions. Her duties included replenishing ATMs with cash from the financial institutions’ vaults. In late 2011 and early 2012, Martin embezzled cash by taking it from the vaults and keeping it rather than using it to replenish the ATMs. Martin gambled away the stolen money through frequent visits to Lawton-area Indian casinos, where she would sometimes put over $70,000 into a single slot machine.
At today’s sentencing, United States District Judge Robin J. Cauthron sentenced Martin to serve 33 months in federal prison. Upon her release from prison, Martin will be on supervised release for five years and will be required to pay $847,942.50 in restitution to the corporate victims of her theft.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and the Lawton Police Department. The case was prosecuted by Assistant U.S. Attorneys Brandon Hale and Chris M. Stephens.
Last Man Ordered to Prison for Wells Fargo RobberyRead the Press Release
HOUSTON - Justin Levar Taylor, 33, of Houston, has been sentenced to federal prison for his role in the robbery of the Wells Fargo Bank on Kirby Drive in Houston in December 2012, announced United States Attorney Kenneth Magidson. Taylor and three others - Aaron Derrow, 43, Terrance Jackson, 35, and Willie Wright III, 32, all also of Houston - each pleaded guilty in the case.
Today, U.S. District Judge Judge Nancy Atlas sentenced Taylor to 51 months for the bank robbery as well as a consecutive seven years for brandishing a firearm during a crime of violence for a total of 135 months in federal prison.
On Friday Dec. 28, 2012, Derrow and the others robbed the Wells Fargo Bank at 5202 Kirby Drive in Houston. All of the men were wearing various disguises, and Wright, Derrow and Taylor were armed with pistols. Jackson and Derrow jumped over the teller counter while Wright and Taylor controlled the lobby. Derrow threatened a male teller with his gun while filling a bag with money. After getting the money, the two jumped back over the teller counter and all four ran out of the bank to their getaway vehicle, a stolen white Toyota pickup truck. All were apprehended a short time later at a residence several miles away.
In December 2013, Judge Atlas sentenced Derrow to 51 months for aggravated bank robbery as well as a consecutive seven years for brandishing a firearm during a crime of violence for a total of 135 months in federal prison. Wright was sentenced to 46 months for aggravated bank robbery as well as a consecutive seven years for brandishing a firearm during a crime of violence for a total of 130 months in federal prison. Jackson was given a sentence of 108 months for his conviction of aggravated bank robbery.
All have been and will remain in custody.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Laguna Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Matthew Louis Brown, 25, pleaded guilty this morning to a domestic assault by a habitual offender charge, 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.
Brown, a member of the Pueblo of Laguna who resides in Mesita, N.M., was arrested on Oct. 2, 2013, based on a two-count indictment alleging that (1) he assaulted his intimate partner, a member of the Pueblo of Acoma, and (2) he assaulted the victim causing her serious bodily injury. Brown was charged federally as a habitual domestic violence offender because he has two prior domestic violence convictions in the Pueblo of Laguna Tribal Court.
This morning, Brown pled guilty to Count 1 of the indictment and admitted assaulting the victim, his intimate partner and the mother of his child, by striking her in the face multiple times with a closed fist and kicking her head while she was on the ground. Brown also admitted that the victim sustained serious bodily injury as a result of his attack and that he committed this crime on July 25, 2011, in a location within the Pueblo of Laguna.
Court records reflect that Brown previously was convicted on domestic violence charges before the Pueblo of Laguna Tribal Court in 2004 and 2008.
Brown was remanded into federal custody after entering his guilty plea and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Brown faces a maximum sentence of ten years in federal prison.
This case was investigated by the Laguna/Acoma Agency of BIA’s Office of Justice Services and the Pueblo of Laguna Police Department and is being prosecuted by Special Assistant U.S. Attorney David 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.
Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Strong in Great Falls, on January 6, 2014, and entering pleas of Not Guilty were:
- DANIEL FLANSBURG, a 20-year-old resident of Hays appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted, FLANSBURG faces possible penalties of 10 years in prison.
- CHERYL L. GUARDIPEE, a 39-year-old resident of Cut Bank appeared on charges of theft of government funds and false statements. If convicted, GUARDIPEE faces possible penalties of 10 years in prison.
- PEDRO MARTINE ROBLEDO, a 19-year-old resident of Cut Bank appeared on charges of involuntary manslaughter and assault resulting in serious bodily injury. If convicted, ROBLEDO faces possible penalties of 10 years in prison.
- RHONDA LEE WRIGHT, a 48-year-old resident of Richland, Washington appeared on charges of possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted, WRIGHT faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life in prison.
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.