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Wednesday 30 October 2013
Owner of St. Anthony Hospital Agrees to Pay $475,000 to Settle Civil Claims of Improper Billing for Inpatient Services That Should Have Been OutpatientRead the Press Release
Oklahoma City, Oklahoma -- SSM Health Care of Oklahoma, Inc. ("SSM"), who owns and operates St. Anthony Hospital in Oklahoma City, Oklahoma, has agreed to pay $475,000 to the United States to settle civil claims relating to SSM’s billing Medicare for inpatient services that should have been billed as outpatient services, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The United States alleged that from February 1, 2007, through February 28, 2009, SSM billed Medicare for inpatient services that should have been billed as outpatient services which resulted in higher reimbursements to SSM. Specifically, it was alleged that individuals who presented at the emergency room, and patients who were scheduled for planned medical procedures, were admitted into the hospital and the services billed on an inpatient basis when they should have been billed on an outpatient basis. The United States alleged that potential liability existed for SSM under the False Claims Act (31 U.S.C.§§3729-3733), the Civil Monetary Penalties Law (42 U.S.C. §13201-72), the Program Fraud Civil remedies Act (31 U.S.C. §§3801-3812, and common law. In order to resolve these claims, SSM agreed to pay $475,000 to the government. In reaching this settlement, SSM did not admit liability, and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the United States Department of Health and Human Services Office of Inspector General and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Oklahoma City Psychiatrist to Serve 30 Months in Federal Prison and Pay $20,000 Fine for Health Care FraudRead the Press Release
Oklahoma City, Oklahoma –AMAR NATH BHANDARY, M.D., 53, from Edmond, Oklahoma, was sentenced to serve 30 months in prison by United States District Judge Joe Heaton for health care fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Following his release from prison, Judge Heaton ordered Dr. Bhandary to serve three years supervised release and pay a $20,000 fine.
Dr. Bhandary was licensed to practice medicine in Oklahoma and was engaged in the practice of psychiatry. In March of 2012, he was indicted by a federal grand jury in a 53-count indictment alleging illegal distribution of controlled substances. The indictment alleged that Dr. Bhandary dispensed various controlled drugs to eight separate individuals outside the course of professional practice and without a legitimate medical purpose in 2008 and 2009 and that his actions resulted in the death of five of those individuals from drug toxicity.
From April 15 - 24, 2013, a jury trial was held in Oklahoma City federal court. On April 24, the Court declared a mistrial after the jury was unable to reach a verdict.
On May 22, 2013, a one-count Superseding Information was filed alleging that from September 10, 2008, through October 8, 2008, Dr. Bhandary engaged in health care fraud by submitting false claims to Medicare for services that he had not provided. On May 28, 2013, Dr. Bhandary pled guilty to committing health care fraud.
At the sentencing hearing, Judge Heaton ordered that Dr. Bhandary serve 30 months in prison, serve three years of supervised release upon his release from prison, pay $20,000 fine, pay restitution to Medicare, and forfeit all interest in commercial property located at 7100 N. Classen Blvd., Suites 107, 111 and 115, in Oklahoma City.
These charges are the result of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Norman Police Department. The case was prosecuted by Assistant U.S. Attorney David P. Petermann and former Assistant U.S. Attorney Randy Sengel.
Ohio Man Who Participated in Crack Cocaine Conspiracy Sentenced to Nearly 11 Years in PrisonRead the Press Release
CHARLESTON, W.Va. – A 38-year-old Ohio man was sentenced to ten years and ten months in federal prison for his role in a crack cocaine distribution conspiracy, U.S. Attorney Booth Goodwin announced today. Renardo Darnell Owens, of Akron, Ohio, previously pleaded guilty in April to conspiracy to distribute crack cocaine.
On February 11, 2013, Renardo Owens sold crack cocaine to a police informant working in cooperation with the Metropolitan Drug Enforcement Network Team (MDENT) in exchange for $140. The next day, Renardo Owens sold $300 worth of crack cocaine to an informant. He also gave the informant $500 worth of crack cocaine and expected to be paid after the drugs were sold.
On February 13, 2013, Owens’ co-conspirator and brother, Retsyn Owens, arranged to meet the police informant at a predetermined location in Charleston. After arriving at the predetermined location, Retsyn Owens accepted $500 from the informant. The money that Retsyn Owens received from the informant on February 13, 2013 was payment for crack cocaine his brother had distributed two days earlier.
Retsyn Deshawn Owens, 42, also of Akron, Ohio previously pleaded guilty in April to conspiracy to distribute crack cocaine.
Retsyn Owens also provided the informant $500 worth of crack cocaine on February 13, 2013 and expected to be paid after the drugs were sold. On February 14, 2013, Renardo Owens accepted $500 from a police informant as payment for crack cocaine. Also, on February 14, 2013, Renardo Owens handed the informant $1,000 worth of crack cocaine and expected payment after the drugs were sold. On February 15, 2013, MDENT agents executed a search warrant at a Charleston residence and seized drug paraphernalia, cash, and three bags containing crack cocaine. During the execution of the search warrant, police also arrested Renardo Owens, who was inside the residence at the time.
Renardo Owens was previously convicted in October 1999 of possession of cocaine and trafficking cocaine in the Court of Common Pleas in Summit County, Ohio.
Retsyn Owens faces up to 20 years in prison when he is sentenced on November 13, 2013.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
Ohio Man Who Participated in Crack Cocaine Conspiracy Sentenced to Nearly 11 Years in PrisonRead the Press Release
CHARLESTON, W.Va. – A 38-year-old Ohio man was sentenced to ten years and ten months in federal prison for his role in a crack cocaine distribution conspiracy, U.S. Attorney Booth Goodwin announced today. Renardo Darnell Owens, of Akron, Ohio, previously pleaded guilty in April to conspiracy to distribute crack cocaine.
On February 11, 2013, Renardo Owens sold crack cocaine to a police informant working in cooperation with the Metropolitan Drug Enforcement Network Team (MDENT) in exchange for $140. The next day, Renardo Owens sold $300 worth of crack cocaine to an informant. He also gave the informant $500 worth of crack cocaine and expected to be paid after the drugs were sold.
On February 13, 2013, Owens’ co-conspirator and brother, Retsyn Owens, arranged to meet the police informant at a predetermined location in Charleston. After arriving at the predetermined location, Retsyn Owens accepted $500 from the informant. The money that Retsyn Owens received from the informant on February 13, 2013 was payment for crack cocaine his brother had distributed two days earlier.
Retsyn Deshawn Owens, 42, also of Akron, Ohio previously pleaded guilty in April to conspiracy to distribute crack cocaine.
Retsyn Owens also provided the informant $500 worth of crack cocaine on February 13, 2013 and expected to be paid after the drugs were sold. On February 14, 2013, Renardo Owens accepted $500 from a police informant as payment for crack cocaine. Also, on February 14, 2013, Renardo Owens handed the informant $1,000 worth of crack cocaine and expected payment after the drugs were sold. On February 15, 2013, MDENT agents executed a search warrant at a Charleston residence and seized drug paraphernalia, cash, and three bags containing crack cocaine. During the execution of the search warrant, police also arrested Renardo Owens, who was inside the residence at the time.
Renardo Owens was previously convicted in October 1999 of possession of cocaine and trafficking cocaine in the Court of Common Pleas in Summit County, Ohio.
Retsyn Owens faces up to 20 years in prison when he is sentenced on November 13, 2013.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
New Orleans Man, Christopher M. Schwab, Charged with Producing and Distributing Child PornographyRead the Press Release
CHRISTOPHER M. SCHWAB, age 24, a resident of New Orleans, Louisiana, was charged yesterday in a Bill of Information with multiple counts of production of materials involving the sexual exploitation of children, distribution of child pornography, and receipt of child pornography, announced U. S. Attorney Kenneth Allen Polite, Jr.
In August 2013, SCHWAB was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that SCHWAB was responsible for sending images depicting the sexual exploitation of children. SCHWAB has been in custody since his arrest.
Yesterday’s Bill of Information charges SCHWAB with four (4) counts of child pornography involving four different minor victims. In addition, SCHWAB was charged with one count of distributing child pornography and one count of receiving child pornography.
Production of child pornography carries a mandatory minimum sentence of fifteen (15) years and a maximum sentence of thirty (30) years. Distribution and receipt of child pornography carry a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years. If convicted, SCHWAB will have to register has a sex offender.
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by Homeland Security Investigations. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Strike Force Chief, Assistant U. S. Attorney Brian M. Klebba.
(Download Bill of Information )
Montgomery Woman Sentenced for Taking Nearly $200,000 in SSA Payments over 22 YearsRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that Mary Kilpatrick, 57, of Montgomery, La., was sentenced by U.S. District Judge Dee D. Drell, to three months in prison with three years of supervised release and was ordered to pay $192,918 in restitution for theft of government money. She was also ordered to complete 250 hours of community service. Kilpatrick pleaded guilty June 27, 2013.According to evidence presented at the guilty plea, for 22 years, Kilpatrick acted as if her deceased mother was alive and spent Social Security Administration payments meant for her mother. The payments, totaling approximately $192,918, were placed in a joint account previously held by Kilpatrick and her mother. After her mother’s death, Kilpatrick continued to withdraw the payments.
The Social Security Administration – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Montgomery County Pastor Sentenced to 170 Months in Prison for Mortgage Fraud SchemeRead the Press Release
PHILADELPHIA - Michael Wilkerson, 47, of Pottstown, PA, was sentenced yesterday to 170 months in prison and ordered to pay $1,353,111.93 in restitution for a mortgage fraud scheme. Wilkerson and his co-defendants defrauded JPMorgan Chase Bank, N.A. by fraudulently obtaining home loans valued at more than $6 million for properties located in Schwenksville and Glenmoore, Montgomery County, PA. Wilkerson was convicted at trial in February.
Wilkerson, a pastor at New Millennium Life Restoration Fellowship with locations in Phoenixville and Spring City, recruited one of his congregants and the congregant’s family and friends, to participate in a number of real estate transactions. If they had good credit and acted as “straw purchasers” - meaning they would sign loan documents as the purchaser of a house and attend the property settlement - Michael Wilkerson would pay them $15,000. Wilkerson paid another $5,000 if they referred other straw purchasers to him. Wilkerson recruited at least six individuals who agreed to be straw purchasers of homes. Wilkerson’s wife, Joyce, participated in the fraud scheme by explaining the transactions to the “straws,” paying the “straws,” and also pretending to be a co-purchaser of each of the homes at the time of settlement. Co-defendant Lee Garell, a real estate broker with Long & Foster Companies, prepared the sales paperwork for each of the homes that was sold to the “straws” and, along with Michael Wilkerson, dictated the fraudulent terms set out in the settlement sheets. Denise Haines, a mortgage broker with American Group Mortgage Corporation, submitted fraudulent loan applications in the transactions to Chase. The applications falsely represented the appraised value of the homes, the identification of the “straws,” the source of funds, the borrower’s income and assets, and their intent to take possession of the homes as their primary residence. Based on the representations made in the loan documents, Haines knew she could get Chase to approve the loans without verification of the information on the loan applications. Haines and Garrell are awaiting sentencing.
When the loans were funded at the time of settlement, Michael Wilkerson, Joyce Wilkerson, Lee Garell, and Denise Haines manipulated the documents prepared at settlement and, later, forwarded the settlement documents to Chase to make it appear to the bank that the “straws” brought considerable cash to the closings, when, in fact, all of the money involved at the settlement actually came from Chase. Michael and Joyce Wilkerson profited approximately $400,000 from each of the fraudulent sales. Lee Garell obtained commissions on the sales of the real estate and Denise Haines obtained commissions based on the amount of the million dollar loans obtained from Chase. After settlement on the homes, Michael Wilkerson took possession of all of the homes, rented two of them and lived in another. He paid the mortgages with the monies that he obtained at the settlements and rental income for approximately six months then told the “straw” purchasers that they had to pay the mortgages. This last act led to the loans falling into default and then foreclosure, resulting in a loss of approximately $3 million.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Anita Eve.
President Obama established the Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Meriden Man Sentenced to 30 Months in Federal Prison for Distributing Cocaine and OxycodoneRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ANDREW MELILLO, 28, of Meriden, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing cocaine and oxycodone.
MELILLO is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
The investigation revealed that MELILLO conspired with others to distribute cocaine and oxycodone.
MELILLO was arrested on May 22, 2012. On February 28, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine and oxycodone.
MELILLO, who has been released on bond since shortly after his arrest, was ordered to report to prison on December 27, 2013.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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[email protected]Memphis Sex Trafficker Anthony Grandberry Sentenced to 11 Years in PrisonRead the Press Release
Memphis, TN – Anthony Grandberry, 32, of Memphis, Tenn., was sentenced to 11 years in federal prison today by U.S. Senior District Judge Jon P. McCalla for conspiracy to engage in child sex trafficking, announced U. S. Attorney Edward L. Stanton III. Grandberry pled guilty to the charge on July 1, 2013.
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In addition to the prison sentence, Grandberry will be subjected to 10 years of supervision after release from prison and will have to register as a sex offender. There is no chance of parole in the federal prison system.
“Today’s sentencing sends a clear message that any effort to sexually exploit a child for profit will not be tolerated and will result in severe consequences,” said Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee. “Anthony Grandberry is going to spend over a decade in federal prison because he put a 14 year-old-girl to work as a prostitute and chose to prioritize commercial gain over the welfare of a minor.”
According to the indictment, Grandberry received the 14-year-old girl from his co-defendant Orreco Lyons, also known as “Pico the Pimp,” in December 2012 as partial payment for a debt Lyons owed Grandberry. Grandberry made the girl prostitute for several days before passing her along to another co-defendant, Keith Gibson, also known as “Greedy” and “Pee-Wee.”
Lyons, along with co-defendants Tamara Ramsey and Falisha Edwards, pled guilty to sex trafficking conspiracy charges and are pending sentencing. Co-defendant Vivian Briggs pled guilty to using a facility of interstate commerce to promote child prostitution and is also pending sentencing. Gibson is set for trial in January 2014 and faces up to life in prison on child sex trafficking and child sex trafficking conspiracy charges.
The case was investigated by the FBI and the Memphis Police Department. Assistant U.S. Attorney Jonathan Skrmetti prosecuted the case.
U.S. Attorney Edward L. Stanton III established the Civil Rights Unit in February 2011 to ensure that every individual in the Western District of Tennessee enjoys the rights and freedoms guaranteed by the Constitution of the United States. The Civil Rights Unit assigns dedicated prosecutors to pursue the full spectrum of federal civil rights crimes, including official misconduct, human trafficking, and hate crimes, as well as law enforcement public corruption cases. Since the formation of the Civil Rights Unit, the Western District of Tennessee has consistently ranked as one of the top U.S. Attorney=s Offices in the country for the prosecution of sex trafficking.Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney Christopher A. Crofts announced that on October 28, 2013, Kenneth Wayne Crawford, III, a twenty-two year enrolled Eastern Shoshone man was sentenced by Chief U.S. District Court Judge Nancy Freudenthal to 37 months imprisonment, to be followed by two years of supervised release and was ordered to pay $7,665.72 in restitution and a $100 special assessment. This sentence stems from Crawford’s conduct in May of 2013, when he became intoxicated and physically assaulted his girlfriend. This case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Magazine Article and Photos Lead to Conviction of Hunter for Wildlife ViolationsRead the Press Release
Oklahoma City, Oklahoma – Kyle McCormack, 26, from Oklahoma City, was sentenced to serve a year probation and pay $500 fine after being convicted of illegal transportation of wildlife in interstate commerce, a violation of the Lacey Act, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
In the July 2012 edition of the Buckmasters magazine, there was a two-page article credited to McCormack including “trophy” photographs of the racks of whitetail bucks. Following a tip to authorities, the Oklahoma Department of Wildlife Conservation and the Kansas Department of Wildlife, Parks and Tourism sought assistance from the U.S. Fish and Wildlife Service. The investigation uncovered that McCormack did not have valid hunting licenses in the locations identified in the article and that the wildlife was illegally killed in Washington and transported to Oklahoma.
McCormack was charged on October 22, 2013, with illegal transportation of an elk and black-tailed deer in interstate commerce. McCormack pled guilty to both counts and was sentenced to serve one year probation and ordered to pay a $500 fine. McCormack also agreed to pay $2,500 into the Lacey Act Reward Account.
This case is the result of an investigation by the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism and the Oklahoma Department of Wildlife Conservation. The case was prosecuted by Assistant U.S. Attorney Robert Don Gifford II.
The U.S. Fish and Wildlife Service requests that anyone having information relating to a wildlife law violation to call the “Operation Game Thief” hotline in their state. The Oklahoma number for “Operation Game Thief” is (800)522-8039 and accepts calls 24 hours a day, seven days a week. All calls are confidential and the reporting individual has the option of remaining anonymous. You can also visit the U.S. Fish and Wildlife Service website at www.fws.gov/southwest/law enforcement/stateagencies.html to find additional information.
MacKenzie Richard Keene Joiner and Austin Leo Timothy Hagman Sentenced in U.S. District CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Missoula, on October 30, 2013, before Chief U.S. District Judge Dana L. Christensen, MACKENZIE RICHARD KEENE JOINER, age 29, and AUSTIN LEO TIMOTHY HAGMAN, age 23, residents of Missoula, were each sentenced.
JOINER was sentenced to the following term:
- ison: 46 months
- ecial Assessment: $100
- pervised Release: 4 years
HAGMAN was sentenced to the following term:
- ison: 36 months
- ecial Assessment: $100
- pervised Release: 4 years
They were sentenced in connection with their guilty pleas to conspiracy to distribute cocaine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
Beginning in approximately the spring of 2011 and continuing through February of 2013, the defendants distributed cocaine throughout the Missoula area. A CI (CI#1) would have testified that each defendant received more than 500 grams of cocaine from him/her during this period for redistribution in Missoula. A second CI (CI#2) would have testified and confirmed this information.
Finally, a third CI (CI#3) would have testified to receiving narcotics from JOINER and would further have testified that s/he knew that JOINER and HAGMAN worked together and that they and PANIAN received their drugs from CI#1.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, he does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Lynn Man Convicted for Possession of FirearmsRead the Press Release
BOSTON – A Lynn man was convicted today for being a previously convicted felon in possession of firearms and ammunition.
Sean Meola, 41, pleaded guilty before U.S. District Judge Douglas P. Woodlock to being a previously convicted felon in possession of firearms and ammunition.
In January 2013, the federal agents and Methuen Police received information that Meola was looking to sell a large number of firearms. On January 14, 2013, Meola and another individual arrived at a prearranged location in Methuen. Once at the location, Meola sold to an agent three semi-automatic firearms, two 12-gauge shotguns, and 29 rounds of .44 caliber ammunition. The weapons were later seized by the federal agents. Meola, a previously convicted felon, was arrested following the issuance of a complaint in the United States District Court.
Sentencing is scheduled for January 2014. Meola faces up to 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Captain of the Methuen Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Louisiana Man Pleads Guilty to Threatening a Witness in a Federal Criminal Tax TrialRead the Press Release
The Justice Department announced today that Anthony Williams, a resident of Baton Rouge, La., pleaded guilty today to one count of threatening to retaliate against a witness in a federal criminal tax trial.
According to court documents, Williams threatened to cause bodily injury to a witness who testified in the federal trial of United States v. Angela Myers. In his plea agreement, Williams, who is Myers’ son, admitted to sending a threat via Instagram with the intent to retaliate against the witness for his testimony. In March 2013, Myers was convicted by a jury for her role in a stolen identity tax refund fraud scheme, and was subsequently sentenced to serve 11 years in federal prison.
Williams faces a potential maximum sentence of 20 years in federal prison and a $250,000 fine. As part of his plea agreement, Williams also agreed to a condition of release prohibiting him from initiating any contact whatsoever with the witness he threatened.
This case was investigated by Special Agents of the Internal Revenue Service (IRS)- Criminal Investigation and the Treasury Inspector General for Tax Administration. Trial Attorneys Justin Gelfand and Jason Poole of the Department’s Tax Division are prosecuting the case with the assistance of the U.S. Attorney’s Office for the Middle District of Louisiana.
Local Man Gets 20 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Charlie Hernandez, 36, of Corpus Christi, has been ordered to serve 240 months in federal prison following his conviction of sexual exploitation of a child, announced United States Attorney Kenneth Magidson. He pleaded guilty Aug. 1, 2013.
Today, U.S. District Judge Nelva Gonzalez Ramos handed Hernandez the 20-year-term to be immediately followed by 10 years of supervised release. The court heard from the victim’s mother who described the destruction that the defendant’s crimes have wrought upon her family. The mother explained how the her child wanted to be at the hearing to speak to the court but was too emotionally distraught to appear. She spoke of the negative effects on the emotional and financial well-being of herself, her victimized child and other members of her family. The mother explained that in addition to the psychological damage Hernandez has caused, she had also suffered a heart attack since learning of the crime, despite being in good health and only 34 years of age. The victim’s mother urged the court to hold Hernandez accountable for his crime and all of the pain it has caused. In determining an appropriate sentence, the court considered the lasting harm done to the victim as well as the need to protect the public from Hernandez in the future.
On May 10, 2013, an officer with the Corpus Christi Police Department (CCPD) responded to a sexual assault call, at which time he spoke to the victim, a juvenile female relative of Hernandez. She stated that he had been sexually abusing her for four years, which had progressed from peeping to rape.
Hernandez was arrested and admitted to the abuse as well as creating sexually explicit photographs of his victim with a cell phone. The cell phone was recovered during a search of his office, which led to the discovery of some of the sexually explicit images.
Hernandez has been in custody since his arrest on June 24, 2013, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, investigated by CCPD- Internet Crimes Against Children Task Force and the FBI and prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Judge Gives Houston Woman Three Years for Role in Rip-Off of Philadelphia Sheriff's OfficeRead the Press Release
PHILADELPHIA –Aarti Gupte, 31, of Houston, TX, was sentenced today to 36 months for her involvement in a scheme to defraud the Philadelphia Sheriff’s Office (“PSO”). Gupte was found guilty in June of conspiracy to commit wire fraud and wire fraud. The scheme stole funds from the PSO’s bank accounts. In addition to the prison term, U.S. District Court Judge Legrome D. Davis ordered $242,186.73 in restitution and three years of supervised release. Davis set a date of December 16, 2013 for Gupte to report to prison.
Sheriff’s Sales of real estate generate millions of dollars annually. The sales require the PSO to write checks to different entities with regard to the properties sold. Co-conspirator Richard Bell, who was charged separately and pleaded guilty, was a PSO employee in the Accounting Department who took advantage of loose controls and wrote checks drawn on the PSO’s bank accounts made payable to
individuals and companies. Bell gave some of the checks to Robert Rogers, who has also pleaded guilty. Rogers recruited Aarti Gupte, who had two companies, to participate in the scheme. Bell wrote four checks, totaling $242,186.73, to The Processing Link and Yellow Rose Enterprises, LLC during the period from 2009 to 2010. Gupte deposited the checks into her company bank accounts, withdrew the proceeds and shared them with Rogers who shared with Bell. When approached by Federal Bureau of Investigation agents, the defendant admitted that she had participated in this scheme to defraud the PSO.The case was investigated by the FBI, IRS-Criminal Investigation and the Office of Inspector General for the City of Philadelphia. It was prosecuted by Assistant U.S. Attorney Sarah Grieb.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on October 30, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
SAMUEL DAVIS EVERSON, III, a 47-year-old resident of Minot, North Dakota, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and (2) counts of distribution of methamphetamine. He is currently detained. If convicted of these charges, EVERSON faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release on each of the first two charges; and possible penalties of 20 years in prison, a $1,000,000 fine, and 3 years supervised release on each count of the last charge. Assistant U.S. Attorneys Joseph E. Thaggard and Brendan P. McCarthy are the prosecutors for the United States.
The defendant pled not guilty to the charges.
This investigation was a part of Project Safe Bakken, which is a cooperative effort between the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Bureau of Indian Affairs (BIA), the U.S. Border Patrol, the U.S. Marshal's Service, the Environmental Protection Agency Criminal Investigation Division (EPA-CID), the Department of Homeland Security (DHS), the Montana Division of Criminal Investigation (MDCI), the Montana Highway Patrol, the North Dakota Bureau of Criminal Investigation (BCI), the Billings Police Department, the Yellowstone County Sheriff's Office, and the Idaho State Police.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on October 29, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
GEORGE THEODORE SUTHERLAND, a 20-year-old resident of Box Elder, appeared on a charge of assault resulting in serious bodily injury. He is currently detained. If convicted of this charge, SUTHERLAND faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indian Corporation Pays Record Amount to Settle Allegations of Systemic Visa Fraud and Abuse of Immigration ProcessesRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – Infosys Corporation, an Indian company involved in consulting, technology, and outsourcing, has agreed to a civil settlement of allegations of systemic visa fraud and abuse of immigration processes by paying a record settlement amount and agreeing to enhanced corporate compliance measures, announced U.S. Attorney John M. Bales. The $34 million payment made by Infosys as a result of these allegations represents the largest payment ever levied in an immigration case.
Infosys is located in thirty countries including the United States, and in 17 cities in the United States, including a location in Plano, Texas. The Plano location is responsible for handling the immigration practices and procedures for the United States operations of Infosys. Infosys brings foreign nationals into the United States in order to perform work and fulfill contracts with its customers under two visa classification programs relevant to this matter, H-1B and B-1.
According to court documents, the government alleged instances of Infosys circumventing the requirements, limitations, and governmental oversight of the H-1B visa program by knowingly and unlawfully using B-1 visa holders to perform skilled labor in order to fill positions in the United States for employment that would otherwise be performed by United States citizens or require legitimate H-1B visa holders. The government also alleges that Infosys did so in order to increase profits, minimize costs of securing visas, increase flexibility of employee movement, obtain an unfair advantage over competitors, and avoid tax liabilities. Specific allegations include the following:
· Infosys used B-1 visa holders to perform jobs that involved skilled labor that were instead required to be performed by United States citizens or required legitimate H-1B visa holders.
· Infosys submitted “invitation letters” to U.S. Consular Officials that contained false statements regarding the true purpose of a B-1 visa holder’s travel in order to deceive U.S. Consular Officials and secure entry of the visa holder into the United States. These letters often stated that the purpose of travel was for “meetings” or “discussions” when the true purpose was to engage in activities not authorized under a B-1 visa.
· Infosys directed B-1 visa holders to deceive U.S. Consular Officials, including specific instructions to avoid certain terminology, to secure entry of the visa holder into the United States. Infosys created a “Do’s and Don’ts” memorandum that it provided to foreign nationals entering the United States on a B-1 visa that included the following directions: “Do not mention activities like implementation, design & testing, consulting, etc., which sound like work”; “Also do not use words like, work, activity, etc., in the invitation letter”; and “Please do not mention anything about contract rates.”
· Infosys told its foreign nationals to inform U.S. Consular Officials that their destination in the United States was the same as that provided in the Labor Condition Application, notwithstanding the fact that Infosys knew that the destinations had changed.
· Infosys wrote and revised contracts with clients in order to conceal the fact that Infosys was providing B-1 visa holders to perform jobs that involved skilled or unskilled labor that were otherwise required to be performed by United States citizens or required legitimate H-1B visa holders.
· Infosys concealed the fact that B-1 visa holders were performing jobs that involved skilled or unskilled labor that were otherwise required to be performed by United States citizens or required legitimate H-1B visa holders by billing clients for the use of off-shore resources when, in fact, work was being performed by B-1 visa holders in the United States.
· Infosys failed to maintain I-9 records for many of its foreign nationals in the United States in 2010 and 2011 as required by law, including a widespread failure to update and re-verify the employment authorization status of a large percentage of its foreign national employees.
The settlement agreement requires Infosys to make a payment to the United States of $34 million. The agreement was largely predicated on Infosys’s cooperation with the United States during the investigation and on compliance measures taken by Infosys in the areas of B-1 and H-1B visas and I-9 documentation, both prior to and during the course of the investigation. The settlement agreement requires additional auditing for I-9 forms; a reporting requirement for B-1 usage; an agreement to continue to use only detailed invitation letters, and the continued use of corporate disciplinary processes for employees that violate the immigration laws of the United States.
“We will not tolerate actions that mislead the United States and circumvent lawful immigration processes, whether undertaken by a single individual or one of the largest corporations in the world,” said U.S. Attorney Bales. “The H-1B and B-1 visa programs are designed and intended to protect the American worker; and we will vigorously enforce the requirements of those programs.”
David M. Marwell, Special Agent in Charge of Homeland Security Investigations in Dallas, concurred: “This settlement against Infosys is the largest immigration fine on record. The investigation indicated that Infosys manipulated the visa process and circumvented the requirements, limitations, and governmental oversight of the visa programs. The investigation also showed that more than 80 percent of Infosys’s I-9 forms for 2010 and 2011 contained substantive violations. Ultimately, these actions by Infosys cost American jobs and simultaneously financially hurt companies that sought to follow the laws of this nation. Companies that misuse the visa process can expect to be scrutinized and held accountable.”
The investigation and settlement also earned the praise of George M. Nutwell III, Special Agent-in-Charge of the Houston Field Office, Diplomatic Security Service, U.S. Department of State, who said that “the Infosys investigation illustrates the unique role that DSS plays in investigating complex visa fraud cases that reach far beyond U.S. borders. DSS collaborates with our law enforcement partners and is committed to investigating and bringing to justice those who violate the law.”
This case was investigated and the settlement negotiated by Assistant U.S. Attorneys Shamoil T. Shipchandler, Alan R. Jackson, and J. Kevin McClendon, and special agents and attorneys from the Department of State, Diplomatic Security Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Citizenship and Immigration Services.
Goldsby Man Sentenced to 210 Months in Prison for Child PornRead the Press Release
Oklahoma City, Oklahoma – Roger Preston Kuhn, 29, of Goldsby, was sentenced today to serve 210 months in federal prison for downloading and possessing child pornography by United States District Court Judge Stephen P. Friot, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, for many years Kuhn heavily consumed child pornography that he downloaded via the Internet. In sentencing Kuhn, the court also considered evidence that he had engaged in predatory behavior by having sexual contact with children.
Kuhn was indicted on May 21, 2013, and pled guilty on June 6, 2013. In addition to the term of imprisonment, the court sentenced Kuhn to an additional term of 10 years’ supervised release upon his release from prison. Kuhn will have to register as a sex offender.
This case was part of Project Safe Childhood, the flagship program in the Department of Justice’s National Strategy for Child Exploitation Prevention and Interdiction, and was the result of an investigation conducted by the Canadian County Sheriff’s Department, and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Brandon Hale.
Franklin County Man Sentenced to 6 Years in Prison for Drug OffenseRead the Press Release
JOHNSTOWN, Pa. - A resident of Waynesboro, Pa., has been sentenced in federal court to 72 months in prison and five years supervised release on his conviction of conspiracy to possess and distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Corey D. Harley, 39.
According to information presented to the court, from November 2011 to July 18, 2012, Harley conspired to possess and distribute 500 grams or more of cocaine.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pa. Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. for the investigation leading to the successful prosecution of Harley.
Former Veterans Affairs Psychiatrist Pleads Guilty to Medicare FraudRead the Press Release
BROOKLYN, NY – Earlier today, Dr. Mikhail L. Presman, a licensed psychiatrist employed by the Department of Veterans Affairs (VA), pleaded guilty to health care fraud in federal court in Brooklyn. For over seven years, Dr. Presman lied about providing home medical treatment to Medicare beneficiaries and falsely billed Medicare for more than $1.2 million through the submission of fraudulent claims. As part of the guilty plea, Dr. Presman agreed not to contest the forfeiture of his ill-gotten gains, amounting to over $1.2 million.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Special Agent-in-Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). The plea was accepted by United States District Judge I. Leo Glasser.
“Dr. Presman was hired and paid by the taxpayers to treat those who sacrifice so much for our country – our injured veterans. As alleged, by defrauding the Medicare program, he betrayed the trust placed in him and stole from the very taxpayers who paid his salary. Far from honoring their sacrifice, Dr. Presman used our veterans as a cover for deceit and fraud,” stated United States Attorney Lynch. “We will root out Medicare fraud in our community wherever we find it.” Ms. Lynch thanked the Department of Justice, Criminal Division, Fraud Section and HHS-OIG for their work on the investigation.
According to court documents, from January 1, 2006 through May 10, 2013, Dr. Presman submitted approximately $4 million in Medicare claims for home treatment of Medicare beneficiaries, notwithstanding his full-time, salaried position as a psychiatrist at the VA hospital in Brooklyn. Contrary to his false representations, Dr. Presman did not provide any treatment to a substantial number of the beneficiaries he claimed to have treated. For example, on a number of occasions, Dr. Presman submitted claims to Medicare for home medical visits at locations within New York City even though he was physically located in China at the time of these purported home visits. Additionally, Dr. Presman submitted claims to Medicare for 55 home medical visits to beneficiaries who were hospitalized on the date of the purported visits.
Dr. Presman is scheduled to be sentenced on February 13, 2014. At sentencing, he faces a maximum sentence of 10 years’ imprisonment, over $1.2 million in mandatory restitution, and a fine of up to $2.4 million.
The case was investigated by HHS-OIG, brought as part of the Medicare Fraud Strike Force, and supervised by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. The case is being prosecuted by Assistant United States Attorney Patricia E. Notopoulos and Department of Justice Trial Attorney Bryan D. Fields.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
The Defendant:
MIKHAIL L. PRESMAN, M.D.
Age: 56
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-576
Former Veterans Affairs Psychiatrist <br /> Pleads Guilty to Medicare FraudRead the Press Release
Dr. Mikhail L. Presman, a licensed psychiatrist employed by the Department of Veterans Affairs (VA), pleaded guilty today to health care fraud for falsely billing Medicare for home medical treatment to Medicare beneficiaries and agreed to forfeit more than $1.2 million in illegal profits.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta Lynch of the Eastern District of New York, and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
According to court documents, from Jan. 1, 2006, through May 10, 2013, Presman submitted approximately $4 million in Medicare claims for home treatment of Medicare beneficiaries notwithstanding his full-time, salaried position as a psychiatrist at the VA hospital in Brooklyn. Contrary to his representations, Presman did not provide any treatment to a substantial number of the beneficiaries he claimed to have treated. For example, Presman submitted claims to Medicare for home medical visits at locations within New York City even though he was physically located in China at the time of these purported home visits. Additionally, Presman submitted claims to Medicare for 55 home medical visits to beneficiaries who were hospitalized on the date of the purported visits.
Presman is scheduled to be sentenced by U.S. District Judge I. Leo Glasser of the Eastern District of New York on Feb. 13, 2014, and faces a maximum sentence of 10 years in prison.
The case was investigated by the HHS-OIG, with assistance from the Department of Veterans Affairs Office of Inspector General, and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorney Bryan D. Fields of the Fraud Section and Assistant U.S. Attorney Patricia E. Notopoulos of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.Former Little Rock Police Department Officer Sentenced to 104 Months in Federal Prison on Federal Drug ChargeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI); and Stuart Thomas, Chief of the Little Rock Police Department, announced Mark Anthony Jones, age 46 of Little Rock was sentenced by United States District Judge James M. Moody to 104 months in federal prison to be followed by four years of supervised release. Jones was immediately taken into United States Marshal custody following the sentencing.
“As I said when Jones was arrested, we owe it to this community and, more importantly, to the upstanding individuals who wear the badge of the LRPD to hold those who break the law accountable for their actions,” stated Thyer. “This case was carefully investigated and the facts speak for themselves. Jones’ choice to sell his career for cash is disheartening. My hope is, this sentence will serve notice to all other law enforcement officers that disregard of the law will result in prosecution. No one is above the law. To those who valiantly serve with integrity, I applaud you and thank you for your service.”
“The sentence imposed today sends a strong message to anyone in law enforcement who would betray his or her oath to protect and serve the public," stated Acting FBI Special Agent in Charge Howard S. Marshall. "The vast majority of us who respect the badges we wear and who are committed to public service will band together to aggressively investigate these egregious, criminal activities. In many of these investigations, they start with a tip from a concerned citizen. We are grateful for those who come forward to report corruption to us and we continue to encourage people to do so.”
Chief Thomas added, “I hope the message is clear that allegations of corruption will be diligently investigated and prosecuted. The men and women of this Department who participated in this difficult and demanding investigation demonstrated professionalism, integrity, and confidentiality to the highest degree. This Department is appreciative our partnership with the United States Attorney’s Office and the Little Rock Office of the FBI which, without hesitation, provided the resources and expertise necessary to fully investigate this matter and ultimately bring it to a successful conclusion today.”
Jones was arrested May 24, 2013 and pled guilty June 28, 2013, to one count of attempting to aid and abet the possession with intent to distribute approximately 1,000 pounds of marijuana.
The facts in the Plea Agreement state that Jones had been a policeman with the Little Rock Police Department since 1988. Early in 2012, Jones traveled with a Confidential Informant (CI) to Los Angeles, California to meet the informant=s purported supplier of marijuana. During dinner, the supplier (who was actually an undercover FBI agent) and Jones engaged in recorded conversation about marijuana loads being brought into Little Rock. After returning from California, the CI contacted Jones regarding a truckload of 1,000 pounds of marijuana coming into Little Rock. Jones was asked to and agreed to provide security for this load. He recruited his brother, another LRPD officer to be the 2nd escort to protect against an arrest by other law enforcement.
On March 22, 2012, Jones and his brother provided the protection while driving marked patrol cars. The delivery was divided in two vans of a purported quantity of approximately 500 pounds of marijuana in each van. The FBI set-up surveillance of the activities including aerial surveillance. The facts state that during the time Jones and his brother provided the escort, they “overheard on their police radio a call for shots fired near their location. They were the officers closest to the shooting, but did not respond because they were following the vans.” Jones didn’t respond to the call until he had completed the escort of the vans – approximately one hour later.
Jones was audio and video recorded by the FBI later that day meeting with the CI who paid him $10,000 in cash for the escort - $5,000 for Jones and $5,000 for his brother.
On July 15, 2013, Jones’ brother, Randall Tremayne Robinson, was found guilty of Count 3 of the Superseding Indictment for distribution of marijuana in August of 2009. The jury hung on all other counts. A second Superseding Indictment was filed August 7, 2013. The trial has been set for March 17, 2014 before United States District Judge James L. Moody. An indictment contains only allegations. All defendants are presumed innocent unless and until proven guilty.
This investigation was conducted by the Little Rock Field Office of the Federal Bureau of Investigation in cooperation with, and with substantial support from, the Little Rock Police Department. Assistant United States Attorneys Pat Harris and Anne Gardner have prosecuted this case for the United States.
Former Hempstead Police Officer Convicted of Armed Robbery and Firearms ChargesRead the Press Release
Earlier today, a federal jury returned a guilty verdict against Brian Jones, a former Hempstead Village police officer, on charges of Hobbs Act robbery conspiracy and brandishing a firearm during the robbery conspiracy. The charges arose from an April 6, 2008 incident in which the defendant and two accomplices attempted to rob a cocaine dealer in Far Rockaway, New York. At the time of the attempted robbery, the defendant was employed as a police officer in Hempstead Village.
The verdict followed a two-week trial at the federal courthouse in Central Islip, New York. The defendant’s sentencing is scheduled for February 26, 2014, at which time he faces a maximum sentence of 20 years’ imprisonment for the robbery conspiracy and a mandatory consecutive sentence of seven years to life for the firearms charge, as well as a criminal fine.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Raymond W. Kelly, Commissioner, New York City Police Department (NYPD), and Joseph Anarumo, Jr., Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“We trust our hard-working and dedicated law enforcement officers to protect our community. In violation of his sworn duty, Brian Jones betrayed his badge and disgraced his profession in an attempt to enrich himself at the expense of innocent victims. Jones crossed the line and became that which he had sworn to guard against,” stated United States Attorney Lynch. “The people of this district will not tolerate law enforcement officers who abuse their authority and violate the law.” Ms. Lynch expressed her thanks to the ATF and the NYPD’s Internal Affairs Division, Police Impersonation Investigation Unit, which led the investigation.
The evidence at trial established that in early 2008, the defendant and two accomplices plotted to rob a cocaine dealer, who they believed kept large quantities of drugs and cash at his apartment in Far Rockaway, New York. Prior to the robbery, the defendant abused his authority as a Hempstead Village police officer to identify the victim’s home address by running a search in a law enforcement database. On April 6, 2008, the defendant and his accomplices carried out the attempted robbery at an apartment building in Far Rockaway, armed with guns, the defendant’s police badge, and handcuffs. After using a ruse to enter an apartment by pretending to sell chocolate to raise money for the defendant’s daughter’s school, the defendant and his accomplices handcuffed a woman and her husband, while the couple’s two young children watched in horror, and then ransacked the apartment. After finding no cocaine or money, the defendant and his accomplices realized they were in the wrong apartment. Undeterred, they entered a second apartment, occupied by another woman and her two young children. They attempted to handcuff that woman as well, but she was able to flee into a bedroom with her children and call 9-1-1. The defendant and his accomplices then fled.
The trial was held before United States District Judge Joseph F. Bianco. All three individuals involved in the attempted robbery have now been convicted of crimes relating to that robbery.
The government’s case is being prosecuted by Assistant United States Attorney Lara Treinis Gatz.
The Defendant
BRIAN JONES
Age: 41
Hempstead, New YorkE.D.N.Y. Docket No. 13-CR-207 (JFB)
Former Defense Department Employee Indicted on Charges in Alleged $2.5 Million Health Care Fraud-Veteran Is Accused of Submitting Fraudulent Claims for Medical Expenses-Read the Press Release
WASHINGTON – Jonathan M. Hargett, a former civilian employee of the Department of Defense, was indicted today by a federal grand jury on charges alleging that he collected more than $2.2 million after submitting fraudulent claims for federal health care benefits.
The indictment was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); Patrick E. McFarland, Inspector General for the Office of Personnel Management (OPM); John Brooks, Special Agent-in-Charge of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Central Field Office of Investigations, and Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.
Hargett, 41, now in Germany, faces charges in a 15-count indictment returned by a grand jury in the U.S. District Court in the District of Columbia, including: one count of health care fraud; four counts of making false statements relating to health care matters; four counts of wire fraud, and six counts of engaging in monetary transactions in property derived from illegal activity. The indictment also seeks the forfeiture of all illegal proceeds from the scheme.
According to the indictment, Hargett worked from 1996 through 2012 in various positions as a civilian employee for the Department of Defense in Germany. Most recently, from January 2011 through May 2012, he was an intelligence analyst stationed in Heidelberg. Previously, he had served in the U.S. Army from 1992 to 1996.
As a federal employee stationed overseas, Hargett was enrolled since 2002 in the Foreign Service Benefit Plan (FSBP) a health care benefit program. Because of his service in the Army, he also was eligible for health care coverage from the U.S. Department of Veterans Affairs. For veterans working or residing abroad, the VA provides this coverage through its Foreign Medical Program (VA-FMP).
From January 2007 through April 2012, the indictment alleges, Hargett carried out a scheme to submit fraudulent claims and invoices to the FSBP and the VA-FMP. The claims falsely represented that he bought prescription medications and other pharmaceutical items from a pharmacy in Germany. They also falsely represented that he had received and paid for various health care items and services from a doctor in Germany. Hargett also submitted forged invoices and other fraudulent paperwork, the indictment alleges.
All told, the indictment alleges, Hargett submitted more than $2.5 million in false claims to the two programs. He was paid more than $2.2 million, the indictment alleges, including about $943,519 from the FSBP and $1,261,512 from the VA-FMP.
“This indictment charges a former Defense Department employee with ripping off the American taxpayer to the tune of $2.5 million through fraudulent medical claims,” said U.S. Attorney Machen. “This alleged fraud is particularly galling because it robbed precious resources from a program intended to serve our wounded veterans. Protecting the integrity of federal health care programs is an essential part of making affordable health care available to the vulnerable citizens who need it most.”
“Today's indictment reminds federal employees that they must meet the highest standards of ethical and professional behavior in all their dealings with the government, not just their dealings in the workplace,” said Inspector General McFarland. “Defrauding the Federal Employees Health Benefits Program, the program that provides insurance benefits for federal employees, is simply unacceptable.”
“Special Agents assigned to VA’s Office of Inspector General are committed to aggressively investigating fraud against the Department of Veterans Affairs and the taxpayers of this nation,” said Special Agent-in-Charge Brooks “Addressing major fraud within the VA's Foreign Medical Program has become a high priority. The dollars stolen from VA in this scheme could have benefitted many veterans with service-connected conditions needing medical treatment while residing or traveling abroad.”
If convicted of the various offenses, Hargett faces a statutory maximum of 10 years in prison on the health care fraud charge, five years of incarceration for each of the false statements charges, 20 years on each of the wire fraud counts, and 10 years on each of the charges involving the monetary transactions. He also faces financial penalties.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Defense Criminal Investigative Service, the Office of the Inspector General for the Office of Personnel Management, the Office of the Inspector General for the Department of Veterans Affairs, and the U.S. Army Criminal Investigation Command. Assistance was provided by the Office of International Affairs in the Justice Department’s Criminal Division, the Department of Defense, former Assistant U.S. Attorney Courtney G. Saleski, and Paralegal Specialists Nicole Wattelet and Donna Galindo. The case is being prosecuted by Assistant U.S. Attorney Ted Radway, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Assistant U.S. Attorney Diane Lucas, of the office’s Asset Forfeiture and Money Laundering Section.
13-372Former City of Cleveland Employee Sentenced to Prison for ExtortionRead the Press Release
A former City of Cleveland employee was sentenced to six months in prison followed by six months of house arrest for attempting to extort bribes from three companies in connection with his employment as a contract compliance officer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Lejon C. Woods, age 29, of Cleveland, previously pleaded guilty to three counts of extortion under color of official right.
“Today’s sentence sends a message that there will be continuing consequences for those who seek use their public job as a way to enrich themselves,” Dettelbach said.
“Public corruption at any level is a breach of the public’s trust," Anthony said. "The FBI thanks the City of Cleveland, Division of Police - Intelligence Unit and the three area businesses that were solicited by Woods for their cooperation in bringing this matter to justice”
Woods, while acting in his capacity as a contract compliance officer with the City of Cleveland, solicited bribes from representatives of three local businesses, one of which was a nonprofit business, in connection with fines which were going to be imposed for non-compliance of contract requirements, according to court records.
The conduct took place from May 18, 2010, through August 5, 2010, according to the indictment.
When City of Cleveland funds are used to pay for any part of a construction or rehabilitation project, the company involved in the project is subject to City of Cleveland, Office of Contract Compliance regulations relating to the hiring of certain percentages of minority business enterprises, disadvantaged business enterprises and city resident workers, according to the indictment.
Woods told representatives of the three companies that in exchange for a cash payment, he would alter records with the City of Cleveland to reflect compliance. Woods obtained or attempted to obtain cash payments of $2,800, $3,000 and $1,200 from the respective companies, according to the indictment.
The indictment is a result of an investigation conducted by the Federal Bureau of Investigation with assistance from the Cleveland Division of Police, Intelligence Unit. This case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.
Federal Prison Sentences Handed Down in Crystal Methamphetamine Trafficking ConspiracyRead the Press Release
In San Antonio this morning, U.S. District Judge David A. Ezra sentenced Israel Hernandez, Jr., of Rio Bravo, TX, to 300 months in federal prison for his role in a crystal methamphetamine trafficking conspiracy plus an additional 30 months in federal prison for violating his supervised release announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Javier Pena.
On June 3, 2013, Hernandez pleaded guilty to one count of conspiracy to distribute a controlled substance. By pleading guilty, Hernandez, a self-purported drug transportation coordinator, admitted that between March and September in 2012, he conspired with San Antonio residents Carlos Ruiz and Andrew Kessler, II, to transport crystal methamphetamine from Brownsville to Laredo. On September 14, 2012, DEA Task Force agents seized approximately 15 pounds of 99.9% pure crystal methamphetamine inside Kessler’s vehicle while in Mission, TX. According to court records, Ruiz offered to pay Kessler $1,200 for transporting the six kilograms of crystal methamphetamine to Laredo. The next day, federal agents in San Antonio arrested Hernandez and Ruiz as they were attempting to locate Kessler and the missing crystal methamphetamine.
On Monday, Judge Ezra sentenced Carlos Ruiz to 15 years in federal prison for his role in the conspiracy. On August 8, 2013, Andrew Kessler was sentenced to seven years in federal prison for his role in the conspiracy.
The case was investigated by the Drug Enforcement Administration Task Force made up of investigators from the New Braunfels Police Department, San Antonio Police Department, Boerne Police Department, Balcones Heights Police Department, Comal County Sheriff’s Office, Guadalupe County Sheriff’s Office, Kendall County Sheriff’s Office and the Texas Department of Criminal Justice.Federal Grand Jury Returns Indictment Charging Salt Lake City Man with Bias-Motivated Attack on SynagogueRead the Press Release
Charges Allege He Fired Several Rounds from a Handgun at the SynagogueSALT LAKE CITY – A federal grand jury in Salt Lake City returned a four-count indictment Wednesday afternoon charging Macon Michael Openshaw, age 21, of Salt Lake City, with firearm charges and a civil rights violation relating to a bias-motivated attack at a local synagogue.
The indictment was announced by the U.S. Department of Justice, U.S. Attorney for Utah David B. Barlow, and Mary Rook, Special Agent in Charge of the FBI in Salt Lake City.
The indictment alleges that between Jan. 1, 2012 and April 30, 2012, Openshaw intentionally defaced and damaged the Congregation Kol Ami synagogue in Salt Lake City by firing several rounds from a Walther .22 caliber handgun at the building, breaking windows and damaging the window frame of the building. Openshaw allegedly performed these actions because of the religious character of the synagogue. This charge carries a statutory maximum sentence of 20 years imprisonment.
The superseding indictment charges Openshaw with one count of using and carrying a firearm in relation to a crime of violence (potential 10-year mandatory minimum sentence), possession of a firearm with a removed, obliterated or altered serial number (up to five years) and possession of a firearm while subject to a protective order (up to 10 years.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless proven guilty.
The matter is being investigated by the Salt Lake City Division of the FBI and is being prosecuted by Assistant U.S. Attorney Carlos Esqueda of the U.S. Attorney’s Office for the District of Utah and Trial Attorney Nicholas Durham of the U.S. Department of Justice’s Civil Rights Division.
(Follow the U.S. Attorney’s Office on Twitter @DUTnews)Federal Grand Jury Indicts Lee County Man for Five North Alabama RobberiesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Lee County man for a string of bank robberies in North Alabama in January, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A five-count indictment filed in U.S. District Court charges JIMMY DAWSON CUNNINGHAM JR., 38, of Salem, Ala., with five bank robberies between Jan. 3 and Jan. 14. He is charged with the following robberies: National Bank of Commerce, Shades Creek Parkway, Birmingham, Jan. 3; PNC Bank, Euclid Avenue, Mountain Brook, Jan. 8; First Community Bank, Marktplatz Center, Cullman, Jan. 10; Regions Bank, Culver Road, Mountain Brook, Jan. 10; and Union State Bank, Pelham Parkway, Pelham, Jan. 14.
Cunningham could face a maximum penalty of 20 years in prison and a $250,000 fine for each count.
The FBI, in conjunction with the Jefferson County Sheriff's Office and the Mountain Brook, Cullman and Pelham police departments, investigated the case. Assistant U.S. Attorney Joseph P. Montminy is prosecuting the case.
The public is reminded that an indictment contains only charges. It will be the government's responsibility to prove the defendant's guilt at trial.
Federal Grand Jury Indicts Lee County Man for Five North Alabama RobberiesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Lee County man for a string of bank robberies in North Alabama in January, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A five-count indictment filed in U.S. District Court charges JIMMY DAWSON CUNNINGHAM JR., 38, of Salem, Ala., with five bank robberies between Jan. 3 and Jan. 14. He is charged with the following robberies: National Bank of Commerce, Shades Creek Parkway, Birmingham, Jan. 3; PNC Bank, Euclid Avenue, Mountain Brook, Jan. 8; First Community Bank, Marktplatz Center, Cullman, Jan. 10; Regions Bank, Culver Road, Mountain Brook, Jan. 10; and Union State Bank, Pelham Parkway, Pelham, Jan. 14.
Cunningham could face a maximum penalty of 20 years in prison and a $250,000 fine for each count.
The FBI, in conjunction with the Jefferson County Sheriff's Office and the Mountain Brook, Cullman and Pelham police departments, investigated the case. Assistant U.S. Attorney Joseph P. Montminy is prosecuting the case.
The public is reminded that an indictment contains only charges. It will be the government's responsibility to prove the defendant's guilt at trial.
Federal Charges Brought Against 11th Person in Scheme to Defraud BP Oil Spill Claims FundRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Birmingham woman as part of a conspiracy to fraudulently take money from funds established to pay claims from individuals and businesses harmed by the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The indictment of FELICIA YOUNGBLOOD, 25, brings to 11 the number of people in North Alabama to face federal charges for conspiring to participate in a scheme to defraud the oil spill claims funds. Youngblood is the second person indicted by a federal grand jury. The U.S. Attorney's Office has charged nine others this year and those nine have pleaded guilty to taking part in the conspiracy.
British Petroleum, which owned the Macondo oil well where the Deepwater Horizon drilling rig exploded, established the Gulf Coast Claims Facility in June 2010 for the purpose of administering and settling claims resulting from the oil spill disaster. A subsidiary of BP established the Deepwater Horizon Oil Spill Trust Fund in August 2010 to pay certain types of claims and expenses from the oil spill, including claims settled through the GCCF.
The four-count indictment of Youngblood charges her with the conspiracy to submit false claims to the GCCF in the summer of 2011 that resulted in her receiving payments of $39,293 and $28,332. The indictment also charges Youngblood with mail fraud, prohibited monetary transactions and wire fraud.According to the indictment, Youngblood carried out the fraud as follows:
Youngblood provided personal information to co-conspirators that was used to prepare and submit false claims of lost earnings to the GCCF. The false claims caused the GCCF to mail a $39,293 check to Youngblood and to wire a separate payment of $28,332 to Youngbloods' bank account. At the direction of co-conspirators, Youngblood used the $39,293 check on July 25, 2011, to obtain two cashier's checks of $17,146 each and $5,000 cash . She endorsed the cashier's checks and gave them to a co-conspirator. On Aug. 4, 2011, Youngblood, at the direction of a co-conspirator, withdrew $10,000 of the $28,332 that had been electronically deposited into her account and gave the money to the co-conspirator.
The FBI is investigating these cases. Assistant U.S. Attorney Henry Cornelius is prosecuting the cases.
The public is reminded than an indictment contains only charges. It will be the government's responsibility to prove the defendant's guilt at trial.
Father, Son Convicted of Bank Fraud and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Pamela C. Marsh announced today that Gary Wayne Thomas, 64, of Daphne, Alabama, and Brian Keith Thomas, 40, of Birmingham, Alabama, both former residents of Destin, Florida, have been convicted for their involvement in a bank fraud and money laundering scheme. Both men were charged with conspiracy to structure cash withdrawals and structuring cash withdrawals to avoid the Currency Transaction Reporting (CTR) requirement, conspiring to commit bank fraud, and conspiracy to commit money laundering. Gary Thomas was also charged with money laundering.
Brian Thomas, the son, went to trial during the week of July 22, 2013, before Chief U.S. District Judge M. Casey Rodgers and was convicted of all counts. Brian Thomas is scheduled to be sentenced on November 15, 2013, at 1:00 p.m. by Judge Rodgers. The father, Gary Thomas, pled guilty to all charges today and is scheduled to be sentenced on January 22, 2014, at 9 a.m. by Judge Rodgers.
The evidence showed that between January 1, 2008, and November 1, 2008, Gary Thomas and Brian Thomas caused approximately $4,550,000 to be deposited into their domestic bank accounts and then wired to offshore bank accounts in the Cayman Islands and Belize. Shortly thereafter, Gary Thomas stopped making payments on the loans he and his various entities had obtained from New South Federal Savings Bank, now known as Beal Bank. The total amount of the loans was approximately $56 million. In the summer of 2009, the bank filed civil suits against Gary Thomas on these loans.
In a three-year period between 2010 and 2013, Gary Thomas wired approximately $2,150,000 from the offshore banks into five accounts in Destin banks that Brian Thomas opened as well as accounts opened by others. Thereafter, the father and son conspired to structure withdrawals of cash under $10,000 to avoid the CTR requirement and to hide Gary Thomas’s interest in the funds from his creditor bank. The structured withdrawals were done on roughly 194 occasions and totaled more than $1.6 million.Gary Thomas used some of these funds to purchase five airplanes, numerous vehicles, and homes in Destin, Florida, and Fairhope, Alabama. Thus far, the government has successfully forfeited the five airplanes, approximately $387,413 in cash, which represents the proceeds of the sale of the home in Fairhope, Alabama, and a $60,000 Hyundai Equus. A superseding indictment, returned in May of this year, also identified $1,624,648 in cash as being subject to criminal forfeiture.
Gary Thomas became a fugitive from justice after the superseding indictment was returned. As a result, an additional indictment was returned against Gary Thomas charging him with failure to appear. While Brian Thomas was in court on July 22nd, the United States Marshals Service captured Gary Thomas on Palafox Street in Pensacola, in the now forfeited Hyundai Equus. When Gary Thomas was apprehended, he was in possession of a loaded Smith and Wesson .38 caliber revolver that he obtained in Tallassee, Alabama, while he was a fugitive. A third indictment was returned against Gary Thomas charging him with possession of a firearm and ammunition by a fugitive from justice and transportation of a firearm and ammunition by a person under indictment.
On the original case, each defendant faces maximum penalties of five years in prison for the structuring conspiracy, 10 years for each count of structuring, 30 years for conspiracy to commit bank fraud, and 20 years for the conspiracy to commit money laundering. Gary Thomas also faces a maximum penalty of 20 years in prison for the money laundering count in the original case. For his failure to appear, Gary Thomas faces up to 10 years in prison consecutive to any sentence he receives in the original case. For the third case, the firearm charges, Gary Thomas faces up to 10 years on each count.
The charges are the result of an investigation by the Internal Revenue Service – Criminal Investigation with the assistance of the United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorney Tiffany Eggers.
False Bomb Threats at Dededo Mall Result in Federal ChargesRead the Press Release
GUAM –ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced the filing on October 30, 2013, of federal criminal charges against MICHAEL SAN NICOLAS SANTOS stemming from recent bomb threats directed at the Dededo Mall.
The federal criminal complaint (a copy of which is attached) alleges that on three occasion – September 26, 2013, October 10, 2013, and October 29, 2013 – SANTOS, using a cellular phone, called 911 and falsely reported a bomb threat to the Dededo Mall located in Dededo, Guam. On each of those dates, SANTOS was scheduled to appear as a defendant in a small claims case pending in the Superior Court of Guam, Northern Court Satellite, which is located in the Dededo Mall. Each of the phone calls was made shortly before SANTOS’ scheduled court appearance and caused the evacuation of the court and other occupants of the Dededo Mall, and the continuance of SANTOS’ hearing and all court cases. Santos was arrested on October 29, 2013, shortly after the most recent bomb threat.
The complaint charges three counts of violating Title 18, United States Code, Section 844(e). Under that statute, it is a federal criminal offense to willfully make a threat or maliciously convey false information, through the use of a telephone, an instrument of interstate or foreign commerce, concerning an alleged attempt being made to unlawfully damage or destroy a building by means of an explosive. Each violation of the statute carries a maximum potential sentence of ten years in federal prison and a $250,000 fine.
The defendant made his initial appearance before U.S. Magistrate Judge Joaquin V.E. Manibusan, Jr. on October 30, 2013, at 10:00 am. The Court set a preliminary examination hearing for November 13, 2013, at 2:30 pm, and remanded the defendant to the custody of the U.S. Marshals Service.The investigation was conducted by the Federal Bureau of Investigation, the Guam Police Department, E911 personnel, the Guam Fire Department, and the Joint Terrorism Task Force. The case is being prosecuted by Assistant United States Attorney Marivic David.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Ex-Captain from Murray County Sheriff's DepartmentSentenced to Federal PrisonRead the Press Release
ROME, Ga. - Michael Henderson, a former Captain with Murray County Sheriff’s Office, has been sentenced to 12 months and one day in prison for obstructing a public corruption investigation.
“By lying to his fellow law enforcement officers, Mr. Henderson obstructed a public corruption investigation,” said United States Attorney Sally Quillian Yates. “But, in addition to violating the law, Mr. Henderson also violated the trust given to him by Murray County’s citizen.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of former Captain Henderson marks the end of an otherwise successful and promising career in law enforcement with the Murray County Sheriff’s Office. Actions that betray an officer’s sworn oath and the overall public trust bestowed upon them cannot be tolerated. With today’s sentencing, former Captain Henderson is being held accountable for those actions.”
According to United States Attorney Yates, the charges and other information presented in court: In April 2012, a female citizen of Murray County, Ga., met with then-Chief Magistrate Judge Bryant Cochran regarding a legal matter. The citizen claimed that during that meeting, Mr. Cochran made inappropriate sexual overtures towards her. Following the complaint, Mr. Cochran called several local police officers to pass along a “tip” that the citizen carried drugs in her white Dodge vehicle.
Sometime in mid-July 2012, Mr. Cochran provided then-Captain Henderson with the tip that the citizen carried drugs in her white Dodge vehicle. After receiving the tip, Henderson provided the tip to, and discussed the tip with, other members of the Murray County Sheriff’s Office.
On August 14, 2012, Henderson and separately-convicted former Deputy Sheriff Joshua L. Greeson participated in a traffic stop of the white Dodge car. During the stop, Greeson found methamphetamine in a metal tin hidden under the wheel well of the car. After finding the drugs, Henderson and Greeson arrested the female citizen and another occupant of the vehicle.
Shortly thereafter, the Georgia Bureau of Investigation (GBI) received information that the drugs had been planted on the vehicle by another individual, in an attempt to falsely implicate the female citizen. As a result, the state drug charges against the citizen were dismissed.
On August 22, 2012, agents from the GBI interviewed Henderson in connection with a public corruption investigation. During the interview, Henderson falsely stated to the GBI agents that he had never told any other members of the Murray County Sheriff’s Office that he had received a tip that the white Dodge was allegedly carrying drugs.
On August 31, 2012, Henderson was fired from the Murray County Sheriff’s Office.
On March 27, 2013, Henderson, 41, of Murray County, Ga., pleaded guilty to tampering with a witness by lying to the GBI agents. United States District Judge Harold L. Murphy sentenced Henderson to 12 months and one day in prison to be followed by one year of supervised release.
This case was investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation.
Assistant United States Attorneys Jeffrey W. Davis and Michael Herskowitz prosecuted the case.For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Donald Leroy Rickards Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on October 30, 2013, before Chief U.S. District Judge Dana L. Christensen, DONALD LEROY RICKARDS, a 49-year-old resident of Kelson, Washington, was sentenced to a term of:
- ison: 48 months
- ecial Assessment: $100
- pervised Release: 5 years
RICKARDS was sentenced in connection with his guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
On October 28, 2011, during the execution of a Montana state search warrant, a Montana Highway Patrol Trooper and a Special Agent with the DEA seized $175,060 and approximately one half pound of methamphetamine from a concealed aftermarket compartment of a Toyota truck driven by Sylvia Canales-Pierson. RICKARDS was a passenger in the vehicle. The drugs were later tested by the DEA laboratory which indicated that they contained well over 50 grams of pure methamphetamine.
The agent detained Canales-Pierson and her sister, Maria Dolores Ramsdell, after they attempted to retrieve the truck from the Montana Highway Patrol. When interviewed, Canales-Pierson indicated that, under the direction of her niece, she had been transporting bulk currency and/or methamphetamine about every two weeks since approximately October of 2010 between Kelso, Washington; Minneapolis, Minnesota; and San Jose, California. Canales-Pierson stated that her niece had made arrangements on this most recent trip for her to take the Toyota truck. Canales-Pierson stated that her niece paid $7,000 on average to her for making each trip, that her boyfriend RICKARDS had traveled with her during a majority of the trips to keep her company and to share the driving, and that Canales-Pierson paid RICKARDS about $2,000 for taking the trips with her. Canales-Pierson stated that she had taken her first trip in October of 2010 with her sister, Ramsdell, who had made prior trips at Canales-Pierson(s niece(s direction from Kelso, Washington, to Minneapolis, Minnesota, then to San Jose, California, back to Minneapolis, and then back to Kelso.
When interviewed, Ramsdell provided statements that were consistent with Canales-Pierson's statement, confirming her own involvement in and knowledge of the transportation of methamphetamine and/or bulk currency at the direction of Canales-Pierson's niece.
RICKARDS also made a statement which was consistent with Canales-Pierson's statement and confirmed his involvement in and knowledge of the transportation of methamphetamine and/or bulk currency at the direction of the niece.
Ramsdell and Canales-Pierson pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, he does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Drug Enforcement Administration.
Court Employee Pleads Guilty to $185,000 Scheme to Cheat Health Insurance ProgramRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an employee of the Kansas City, Mo., Municipal Court pleaded guilty in federal court today to stealing more than $185,000 from the city’s health insurance provider, along with hundreds of other public employees, by falsely claiming to have run marathons and competed in other athletic events for cash incentives.
Crystal Burgin-Woods, 43, an employee of the municipal court, pleaded guilty before U.S. District Judge Gary A. Fenner to one count of wire fraud.
By pleading guilty today, Burgin-Woods admitted that she made fraudulent submissions to the city’s health insurance program on behalf of 383 employees, resulting in the issuance of 939 gift cards worth a total of $185,665.
Burgin-Woods received health insurance coverage from Blue Cross/Blue Shield of Kansas City. She was therefore eligible to participate in a wellness program called “Points to Blue.” The program offered gift cards to Burgin-Woods and other insured employees based upon entries made to the Points to Blue Web site, where they could log various exercise programs and diet programs. Every 1,000 “points” earned by an employee translated to $1 towards a gift card, up to a maximum of $250 annually. More strenuous exercises earned more points.
Burgin-Woods and other employees submitted materially false entries to the Points to Blue Web site, purporting to have completed extremely strenuous activities in order to fraudulently obtain the maximum gift card of $250. To make even more money in this scheme, Burgin-Woods and others submitted materially false entries for other employees and their eligible dependents, in exchange for receiving a portion of the fraudulent gift card proceeds.
Among the fraudulent submissions that Burgin-Woods made to Points to Blue were claims that a 3-year-old child had completed four triathlons, three marathons, two duathlons and three half marathons.
Burgin-Woods is among six employees of the city of Kansas City, Mo., who have pleaded guilty to their roles in the wire fraud scheme.
Matt Tholen, 30, an emergency medical technician, admitted that he made fraudulent Points to Blue submissions on behalf of 62 employees, resulting in 144 gift cards worth a total of $17,600. Tholen was sentenced on Sept. 5, 2013, to three years of probation and ordered to pay $17,600 in restitution.
Matt Stivers, 42, an employee of the city’s information technologies department, admitted that he made fraudulent Points to Blue submissions on behalf of 80 employees, resulting in 248 gift cards worth a total of $39,070.
Kim Blair, 36, an employee of the city’s parks and recreation department, admitted that she made fraudulent Points to Blue submissions on behalf of 83 employees, resulting in 238 gift cards worth a total of $30,485.
Sylvia Sims, 47, an employee of the city’s parks and recreation department, admitted that she made fraudulent Points to Blue submissions on behalf of 28 employees, resulting in 90 gift cards worth a total of $8,925.
Michael King, 31, an employee of the city’s water department, admitted that he made fraudulent Points to Blue submissions on behalf of 51 employees, resulting in 79 gift cards worth a total of $12,745.
As a result of the scheme, 1,253 fraudulent gift cards were issued, totaling $310,960.
Under federal statutes, each of the defendants is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney John E. Cowles. It was investigated by the U.S. Postal Inspection Service Task Force, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Overland Park, Kan., Police Department.Colorado Man Pleads Guilty to Defrauding Elderly VictimRead the Press Release
DENVER – Akihiko Siegfried, age 54, formerly of Denver, CO, pled guilty before U.S. District Court Judge Philip A. Brimmer late Monday to one count of mail fraud and one count of money laundering, federal law enforcement authorities announced. Siegfried, who is currently in custody, is scheduled to be sentenced by Judge Brimmer on March 10, 2014. Siegfried was indicted by a federal grand jury in Denver on June 17, 2013.
According to the facts contained in the indictment as well as the stipulated facts contained in the plea agreement, in January of 2008, Siegfried knocked on the door of the elderly victim’s residence and when the door opened Siegfried pretended to be distraught and was crying. Siegfried falsely told the victim that Siegfried’s parents had just died in a car crash and that he had no money and no family to turn to for help. Siegfried asked to borrow money. The victim was then an 89-year-old widower of Japanese descent with little family, asked Siegfried if he was Japanese which he replied that he was. He felt sorry for Siegfried and, in part because of their shared Japanese heritage, decided to help Siegfried.
Siegfried borrowed from the victim several times and in the middle of 2008 falsely told the victim he would inherit substantial money as a result of his parents’ death, but that it would be tied up in probate for some time and he needed money for paying the associated fees and taxes. In fact, Siegfried’s father died in the 1990s, his mother died in 2002, and there was never any inheritance held up in probate; however, from mid-2008 through March of 2013 Siegfried repeatedly falsely told the victim the inheritance was held up in probate.
From March of 2009 through March of 2013, Siegfried frequently spent time as an inmate in the Colorado Department of Corrections. When he was in jail during that time frame, he repeatedly called and sent letters through the mail asking for money, directing the victim to deposit and wire transfer money to Siegfried’s inmate account with the Colorado Department of Corrections. Siegfried told the victim he needed the money because he was required to pay for his diabetes medicine while he was in jail and because he needed to pay more probate fees and taxes for his purported inheritance. In fact, Siegfried has never been diagnosed with diabetes, has never taken medication for diabetes, and inmates of the Colorado Department of Corrections are not required to pay for medicine prescribed to them while they are in custody.
During the entire scheme, Siegfried told the victim he would repay all of the money Siegfried received his inheritance. Siegfried agrees that, from January 2008 through March 2013, as a result of the scheme, the victim provided at least $400,001 to him and that his sentence will include an order of restitution of at least $400,001 and up to $560,861.
In October of 2012, when Siegfried was released from prison, he received a check payable to himself in the amount of $49,655.30 from the State of Colorado, Department of Corrections. At least $10,000 of this money was proceeds of the fraud scheme involving the elderly victim.
“All too often, con men prey on our senior citizens and steal their life savings,” said U.S. Attorney John Walsh. “Protecting the public – and particularly seniors – from fraud is one of the top priorities of this office. The defendant in this case will face the full weight of the law at sentencing.”
“Individuals who commit crimes against the vulnerable and elderly with this degree of trickery, fraud and deceit will to be punished to the fullest extent of the law,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
“The FBI will continue to aggressively pursue con-artists who prey upon the elderly and defraud innocent victims of their life’s savings,” said FBI Denver Special Agent in Charge Thomas Ravenelle.
Mail fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 per count. Money Laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by agents with IRS Criminal Investigation, Federal Bureau of Investigation (FBI), and the Colorado Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne. AUSA James Russell is handling the asset forfeiture.
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Chandler Business Owner Sentenced to Prison for Committing Bank FraudRead the Press Release
PHOENIX - On Oct. 28, 2013, Gjergj Kol Mihilli, 61, of Gilbert, Ariz., was sentenced to 51 months in prison and ordered to pay $302,420.64 by U. S. District Judge G. Murray Snow. The defendant previously pled guilty to bank fraud and aggravated identity theft for concocting the following scheme:
Mihilli owned and operated the Mama Mia Panaderia store in Chandler, Ariz. Between May 2010 and June 2011, the Mihilli engaged in a check-kiting type scheme by creating thousands of fraudulent money orders for deposit into the Mama Mia Panaderia business account. The money orders were fraudulent and worthless because they were created without the receipt of actual cash from third parties and were made payable to fictitious payees. For many of the fraudulent money orders, Mihilli used the names of Hollywood celebrities, politicians, and professional sports figures. He routinely caused the fraudulent money orders to be deposited into his account for the purpose of artificially inflating the balance. During the life of the scheme, Mihilli created and deposited over 10,000 fraudulent money orders with an aggregate value of over $10,000,000.
The investigation in this case was conducted by the U.S. Immigration and Customs Enforcement (ICE) Department of Homeland Security, the U.S. Internal Revenue Service, and the SABR Task Force. The prosecution was handled by Assistant United States Attorney Raymond K. Woo, District of Arizona, Phoenix.CASE NUMBER: CR-12-1794-PHX-GMS
RELEASE NUMBER: 2013-083_MihilliFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Camden, N.J., Man Admits That He Exchanged More Than $2.5 Million in Snap/Food Stamp Benefits for CashRead the Press Release
CAMDEN, N.J. – A Camden man today admitted that he stole more than $2.5 million dollars from the U.S. Government through a food stamps scheme, U.S. Attorney Paul J. Fishman announced.
Alexander D. Vargas, 34, pleaded guilty today before U.S. District Court Judge Joseph H. Rodriguez to an information charging him with stealing U.S. Government monies during a scheme in which he purchased Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps) for approximately 50 cents on the dollar at the local grocery store he managed in Camden. Vargas was detained after his arrest on May 16, 2013, and his detention was continued.
According to documents filed in this case and statements made in court:
From January 2012 through December 2012 Vargas managed Eddies Grocery, a small store in Camden that was authorized to accept SNAP benefits. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for food stamp benefits. However, they may not exchange food stamp benefits for cash.
Every food stamp recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept food stamp benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a secret Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. If the transaction is authorized, the amount of the purchase is then deducted electronically from the food stamp benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.
Eddies Grocery designated a bank account at Sovereign Bank to receive the reimbursements for SNAP benefits. Bank records listed Vargas and another individual as managers of Eddies Grocery.Eddies Grocery was first approved to participate in the SNAP program in 2007. In his application to participate in SNAP, the owner estimated that Eddies Grocery would generate receipts of approximately $280,000 annually, or an average of $23,333 per month. The volume of SNAP benefits reimbursement received at Eddies Grocery substantially exceeded those estimates, indicating large scale food stamp fraud. From February 2012 through November 2012 the SNAP redemptions were more than $2.8 million greater than the estimates.
In addition to the high volume of SNAP benefits redemptions, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of a cooperating witness and an undercover law enforcement officer. During a series of five transactions from June 7, 2012, through Oct. 4, 2012, law enforcement agents directed a cooperating witness and an undercover law enforcement officer to go into Eddies Grocery and exchange $1,359.75 in SNAP benefits for $650 cash.
A review of the bank records for the Eddies Grocery account showed total cash withdrawals of $3,109,776 for the 2012 calendar year. Records from Feb. 15, 2012, (when defendant Alexander Vargas was added as an authorized cosigner on the account) through December 2012, showed $2,548,510 in cash withdrawals – of which Vargas’ name was on 40 withdrawals totaling $1,869,266.
Vargas faces a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Under the terms of the plea agreement, Vargas has agreed to forfeit $22,273 seized from him on the date of his arrest, and has also agreed to the entry of a forfeiture money judgment for $2,981,642. Sentencing is scheduled for Feb. 5, 2014.
U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires Jr. in New York; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees; and IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
13-423
Defense counsel: Jeffrey C. Zucker Esq., Camden, N.J.
Vargas Information
Brentwood Businessman Sentenced to Twenty-Four Months in Prison for Bank FraudRead the Press Release
B Joseph D. Wheliss, Jr., 44, of Brentwood, Tennessee, former owner and operator of National Embroidery Works, Inc., was sentenced on October 25, 2013, by Chief United States District Court Judge William J. Haynes, Jr. to twenty-four months in prison, to be followed by a five year term of supervised release and an additional seventeen months in a halfway house, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. Wheliss was also ordered to pay approximately $1.9 million in restitution to Pinnacle National Bank and $2.85 million in restitution to Cincinnati Insurance Company.
Wheliss pleaded guilty on October 5, 2012, to a single count of bank fraud, arising from a fraudulent loan scheme. Between May 2005 and January 2011, Wheliss sought and received multiple loans from Pinnacle National Bank totaling more than $4 million. The majority of the loans were commercial loans to Wheliss' business, National Embroidery Works, Inc. To collateralize each of these loans, Wheliss pledged his purported interest in a trust fund which he knew was non-existent.
During the five year period of the scheme, Wheliss regularly presented forged documents to Pinnacle National Bank purporting to show the balance of the fictitious trust fund growing from approximately $2.7million to over $19 million. As a result of this fraudulent scheme, Wheliss obtained over $4.7 million in loans from Pinnacle National Bank, which he used to fund his living expenses and lavish lifestyle.
The case was investigated by the FBI and the Special Inspector General for the Troubled Asset Relief Program. The United States was represented by Assistant U.S. Attorney Sandra G. Moses.Boonton Township, N.J., Man Arrested, Charged with Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – Special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI)and officers of the Boonton Township Police Department arrested a Boonton Township, N.J., man at his home this morning on a charge that he distributed sexually explicit images of children from his home computer, U.S. Attorney Paul J. Fishman announced.
Lucas J. Reinmann, 34, is charged by complaint with one count of distributing images of child pornography over the Internet. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on a $150,000 bond.
According to the criminal complaint unsealed today:
On June 8, 2013, Reinmann distributed videos and images depicting child pornography on the Internet via peer-to-peer file sharing software, which allowed others access to the material in shared directories. An undercover agent discovered and downloaded the images and videos, and the username and IP address of the sharer was traced back to Reinmann’s residence.
ICE HSI special agents, working with the Morris County Prosecutor’s Office (MCPO) and the Boonton Township Police Department, executed a search warrant at Reinmann’s home on July 15, 2013, and discovered computer equipment allegedly containing multiple images of child pornography.
The distribution count carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of ICE HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark; the MCPO, under the direction of Acting Prosecutor Fredric M. Knapp; and the Boonton Township Police Department, under the direction of Chief Paul C. Fortunato, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-422Defense counsel: Edward V. Sapone Esq., New York
Reinmann Complaint
Big Spring, Texas, Man Sentenced to 240 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
ABILENE, Texas — Aaron Charles Lustfeldt, 27, of Big Spring, Texas, was sentenced this morning, by U.S. District Judge Jorge A. Solis, to 240 months in federal prison, following his guilty plea in June 2013 to one count of receipt of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on February 1, 2013, the Big Spring Police Department was dispatched to Comanche Trail Park in Big Spring regarding a male exposing himself to children in the play area. Officers located Lustfeldt, who admitted being in the park, but denied doing anything inappropriate, stating that he was not supposed to be at the park because he was a registered sex offender. Later, as part of their investigation, officers located images of child pornography on his cell phone, and Lustfeldt eventually admitted that he had received and downloaded images from the Internet onto his cell phone.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Justin Cunningham, of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
Belgian Man Charged with Attempting to Illegally Export Aluminum Tubes to Malaysian Front for Individual in IranRead the Press Release
CHICAGO — A Belgian businessman is scheduled to be arraigned tomorrow on federal charges alleging that he violated U.S. laws by attempting to export aluminum tubes that were controlled for nuclear nonproliferation purposes from a company in Schaumburg, through Belgium, to a company in Kuala Lumpur, Malaysia, without obtaining a license from the U.S. Commerce Department, federal law enforcement officials announced today. The case follows a lengthy undercover investigation in which the Schaumburg company, which was cooperating with law enforcement, actually shipped different non-controlled aluminum tubes to the defendant’s business in Belgium before they were allegedly illegally transshipped to Malaysia.
Court documents allege that the Malaysian business is a front company operated by an individual who is located at times in Iran.
The case involves 7075 T6 aluminum tubing with an outside diameter of 4.125 inches and an ultimate tensile strength of 572 MPa (megapascals), which is used in the aerospace industry, among other applications. As a controlled material, a license was required from the Commerce Department’s Bureau of Industry and Security to export the 7075 aluminum from the U.S. to Malaysia, but not to Belgium.
The defendant, NICHOLAS KAIGA, 36, of Brussels and London, was charged with one count of violating the International Emergency Economic Powers Act (IEEPA) and two counts of making false statements on U.S. export forms in a three-count indictment returned by a federal grand jury last Thursday. Kaiga has been in federal custody since he was arrested on June 25 in New York City, approximately a week after he arrived there. A criminal complaint filed at the time of his arrest was unsealed when he was indicted last week.
Kaiga will be arraigned at 11 a.m. tomorrow before U.S. Magistrate Judge Maria Valdez in U.S. District Court in Chicago.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Gary Hartwig, Special Agent-in-Charge of Homeland Security Investigations in Chicago; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Ronald B. Orzel, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Chicago Field Office. The Justice Department’s National Security Division is providing assistance in the case.
According to the complaint affidavit and the indictment, the Schaumburg company, identified as “Company A” in court documents began cooperating with law enforcement in December 2007. The cooperation began after a person identified as “Individual A,” who was at times located in Iran, attempted to purchase 7075 aluminum from Company A, to be shipped to a company in the United Arab Emirates, but was denied an export license. In late 2009, an undercover agent began posing as an employee of Company A.
Between November 2009 and February 2012, the indictment alleges that Kaiga, who was managing director of a Belgian company, Industrial Metals and Commodities, attempted to export 7075 aluminum from Company A to Company B in Malaysia without an export license. The complaint affidavit alleges that Company B was a front for Individual A in Iran. The false statements charges allege that Kaiga lied on Commerce Department export declaration forms, which stated that the ultimate destination and recipient of the 7075 aluminum were in Belgium.
In November 2011, material that was purported to be 7075 aluminum, but was actually substituted with a different aluminum by Company A in cooperation with law enforcement, was picked up from Company A by a freight forwarding company designated by Kaiga’s Belgian company. The material arrived in the Belgian port of Antwerp on Dec. 1, 2011, and two months later it was shipped by a freight forwarding company to Individual A’s front company in Malaysia.
Violating IEEPA carries a maximum penalty of 20 years in prison and a $1 million fine, while making false statements to government agencies carries a maximum penalty of five years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The government is being represented by Assistant U.S. Attorneys Raj Laud and Nancy DePodesta.
An indictment contains merely charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
ComplaintBank Robber SentencedRead the Press Release
A St. Louis man, Walter W. Wallace, Jr., 26, convicted of Armed Bank Robbery of the Caseyville, Ill., branch of the First Collinsville Bank, and Interference with Commerce by Armed Robbery of the Granite City location of Advance America, was sentenced to 151 months in federal prison on October 30, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The court ordered 99 months of the sentence to run consecutively to a 141 month sentence imposed in the Eastern District of Missouri for a bank robbery Wallace committed there, so Wallace will serve a total sentence of 20 years in federal prison for the robbery spree which began on March 1, 2011, and ended on April 30, 2011 (there is no parole in the federal system).
Following release from imprisonment, Wallace will serve 3 years supervised release. Wallace was also ordered to make restitution for the amount stolen, pay a fine, and pay a $200 special assessment. Wallace pleaded guilty to the charges on August 2, 2013. Wallace has been in custody since his arrest on May 3, 2011.
Attorney General Holder Announces $6.7 Million to Improve Legal Defense Services for the PoorRead the Press Release
Attorney General Eric Holder today announced a total of $6.7 million in grants to state and local criminal and civil legal services organizations across the country that provide legal defense services for the poor. These grants from the Office of Justice Programs (OJP) are part of the Justice Department’s continuing efforts to improve indigent defense, which is often underfunded and understaffed, and to support training, mentoring, technical assistance, leadership development and research to enhance the effectiveness of adult, juvenile and tribal indigent defense practices.
“Everyone accused of a serious crime has the right to legal representation – even if she or he cannot afford it,” said Attorney General Holder. “In recent years, the Department of Justice has made a commitment to improving the delivery, quality and availability of legal services for everyone in our country, including the very poor. Today's significant grant awards will help ensure America’s criminal justice system is fair for every defendant, regardless of wealth.”
“These awards, in conjunction with other efforts we’re making to strengthen indigent defense, will fortify our public defender system and help us to meet our constitutional and moral obligation to administer a justice system that matches its demands for accountability with a commitment to fair, due process for poor defendants,” said Associate Attorney General Tony West.
The FY 2013 grants, which promote cost-effective innovations to improve indigent defense, are administered by OJP’s Bureau of Justice Assistance (BJA), National Institute of Justice (NIJ) and Office of Juvenile Justice and Delinquency Prevention (OJJDP).
In FY 2013, BJA awarded a total of $5.4 million. Of this amount, $1 million was awarded to Gideon’s Promise, a nonprofit organization that partners with public defender offices to build a community of attorneys committed to indigent defense reform. The funds will provide 25 new attorneys, including criminal defense lawyers working on tribal lands; establish training and leadership development for public defender trainers and supervisors and a semi-annual leadership summit for chief defenders; and create an advisory council to test measures and indicators showing the outcomes of providing effective counsel for all individuals.
Another $90,000 was awarded to the states of Mississippi, Tennessee and Utah through BJA’s National Training and Technical Assistance Center (NTTAC). Through NTTAC, BJA assists jurisdictions with meeting their constitutional obligation to provide adequate representation to indigent defendants. Services include assessing the effectiveness of indigent defense systems, developing recommendations to ensure adequate and appropriate services are provided consistently throughout the state and determining appropriate measures for evaluating a defender services program.
The Measures for Justice (MFJ) initiative, which will provide a framework for using indicator metrics to evaluate local criminal justice systems against a national standard of excellence, received $50,000. MFJ is conducting a pilot study in Milwaukee to examine the capacity and availability of resources at the local level and to determine where additional resources are needed within the criminal justice system.
Answering Gideon’s Call, a national assistance program to improve the effectiveness of right to counsel services, received $1.8 million of the $5.4 million awarded by BJA. Of the $1.8 million, Seattle University received $450,000 to, in partnership with the Sixth Amendment Center (6AC), provide training and technical assistance to educate policymakers and aid the unfunded, legislatively established Office of the Public Defender in Mississippi and work with the Utah Judicial Council to develop standards assessing indigent defense services to help state legislatures meet their constitutional obligations. Another $891,854 was awarded to the National Association of Criminal Defense Lawyers (NACDL) to train public defenders and assigned counsel by regions to meet specific jurisdictional needs, such as helping them to better manage workloads. The remaining $450,000 went to American University in partnership with the National Legal Aid and Defender Association to conduct a nationwide self-assessment evaluating whether state and local indigent defense providers comply with standards incorporated into the American Bar Association’s Ten Principles, producing the first national empirical assessment of quality of indigent defense services.
Through its Encouraging Innovation: Field Initiated Programs, BJA awarded a total of $619,700 to the San Francisco Public Defender’s Office ($395,231) to create the first local and nationally applicable checklist system to better guide attorneys through key moments in cases, ensuring competent representation and avoiding costly errors, and to NACDL ($224,469) to develop pretrial release manuals for the defense bar and to provide onsite training and distance learning to give attorneys the necessary tools to engage in effective bail advocacy.
The remaining $1.9 million of BJA’s awarded $5.4 million was provided through the Tribal Civil and Criminal Legal Assistance Initiative, designed to improve access to tribal justice systems and strengthen representation of indigent defendants in civil causes of action and in criminal cases under Indian tribes’ jurisdiction. Of the $1.9 million, the Tulalip Foundation received $262,943 to provide regional, direct legal services to tribal members and $121,779 to create a Criminal Conflict Counsel Program to train defense counsel and provide services to resolve cases. The Native American Rights Fund received $715,944 to continue its partnership with the National American Indian Legal Association and its 25 Indian Legal Services organizations providing civil legal representation to tribes and tribal members, and a second award of $515,940 to provide indigent defense services to tribes and tribal members. The William Mitchell College of Law received $283,394 to provide direct criminal defense services and legal assistance to up to seven tribes.
OJJDP made two FY 2013 awards, totaling more than $1 million, to the National Juvenile Defender Center in the District of Columbia in order to improve juvenile indigent defense across the nation. The first award, in the amount of $400,000, will provide juvenile defense counsel with customized technical assistance, training, and resources for policy development and reform. The second award, in the amount of $695,000, will support the Juvenile Indigent Defense Special Initiative to reduce the overrepresentation of minority youth in the juvenile justice system and to improve access to counsel and quality of representation for youth with unique needs, including lesbian, gay, bisexual and transgender youth and those with disabilities, substance abuse behaviors and language access needs.
In FY 2013, NIJ awarded $334,000 to the RAND Corp. in Pittsburgh, Pa., for an empirical evaluation of the holistic approach to individual defense, which includes the defense attorney as one member of an interdisciplinary team providing comprehensive services to address defendants’ legal and social needs. The study will examine the effect of holistic defense on case outcomes such as plea status, verdict and sentence and disposition length and estimate the effectiveness of the holistic approach for subgroups of offenses or defendants.
More information about the Justice Department’s Access to Justice Initiative, which works to strengthen and improve legal services for disadvantaged groups, is available at www.usdoj.gov/atj.
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Amos Patton Named in Nine-Count Indictment Following Shooting at Millington National Guard CenterRead the Press Release
Memphis, TN – Amos Patton, 42, of Cordova, TN was indicted today by a federal grand jury on nine counts related to a shooting at the Tennessee Army National Guard Recruiting Center in Millington, TN, announced U.S. Attorney Edward L. Stanton III; Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation, A. Todd McCall; and Naval Criminal Investigative Service Special Agent Michael C. Cote.
Patton is charged with four counts of unlawfully attempting to kill Major WJC, Sergeant Major RRM, Lieutenant Colonel HLB, and Sergeant Major CTC while they were in performance of their official duties. Patton is also charged with four counts of assault with a deadly weapon on each of the four individuals, and further charged with one count of using and carrying a firearm during and in relation to a crime of violence.
If convicted, Patton could receive up to 20 years in prison for each charge of unlawfully attempting to kill and up to 20 years for each assault charge. He also could receive a minimum of 10 years for the firearms charge. There is no parole in the federal system. This case is being investigated by the FBI and the NCIS. Assistant U.S. Attorney Fred Godwin is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Adams Produce CEO Sentenced to 16 Months in PrisonRead the Press Release
BIRMINGHAM – A federal judge late Tuesday sentenced the former CEO of Adams Produce Company to 16 months in prison for fraud against the company, failure to report a felony against the government and failure to file federal income tax returns, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
SCOTT DAVID GRINSTEAD, 45, chief executive officer of the now-defunct Adams Produce company, pleaded guilty to the charges in April. Grinstead agreed, as part of his plea agreement with the government, to pay $450,000 in restitution to the bankruptcy estate of Adams Produce to benefit the company's employees who lost pay when Adams closed abruptly and filed for bankruptcy in 2012. As part of Grinstead's sentence, U.S. District Judge Karon O. Bowdre ordered him to perform 20 hours of community service.
"This defendant, while CEO of Adams Produce, allowed officers and employees to continue cheating the government on contracts involving military bases and schools while, at the same time, he continued to steal from the company," Vance said. "Prison is deserved punishment for his criminal acts, which harmed the government and his company, but we also are pleased that resolution of this case will bring some compensation to the employees who lost their jobs and did not receive their final paychecks from Adams Produce," she said.
"Financial fraud at this company harmed employees, customers and U.S. taxpayers," Schwein said. "The FBI remains committed to investigating corporate fraud and seeing its perpetrators brought to justice."
"Individuals who earn income should accurately report their income to the IRS," Hyman-Pillot said. "The sentence today should reassure Americans that those individuals who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes will be prosecuted."
Three other officials of Adams Produce – David Andrew Kirkland, Christopher Alan Pfahl and Stanley Joel Butler II – have been charged and pleaded guilty, and another employee, Michael John O'Brian, was indicted in August in connection with fraud at the Birmingham-based company that had been a leading distributor of fresh fruits and vegetables across the Southeast for decades. Adams Produce was founded as a family-owned business more than 100 years ago. The family sold the company to executives and a private equity firm in 2010.
The federal government, through the Defense Supply Center Philadelphia, was one of Adams' customers. The supply center contracted with Adams Produce to provide fresh fruits and vegetables to military bases, public schools systems, junior colleges and universities. Adams Produce entered into contracts with the government worth millions of dollars, according to court records.
Kirkland, O'Brien, Butler and Pfahl conspired to create false records that reflected a higher purchasing cost for fruits and vegetables from a national distributor than Adams Produce actually paid. The inflated costs were presented to the government, which had agreed to pay a certain amount over Adams cost for produce.
Between Aug. 4, 2011, and Dec. 7, 2011, the Adams' employees and officers conspired to conduct at least 82 transactions with the national distributor that were designed to create false invoices and purchase orders. Through those false invoices submitted to the Defense Supply Center, Adams Produce fraudulently received about $481,000 from the government.
One of the charges Grinstead pleaded guilty to is misprision of a felony for knowing of the fraud that other officers were engaged in and allowing it to continue and end slowly, so as to avoid raising red flags with the government, rather than stopping it immediately and reporting it to authorities.
Grinstead pleaded guilty to wire fraud for wiring hundreds of thousands of dollars from an Adams Produce account to American Express to pay for clothing, jewelry, personal travel for himself and his family, lawn care at his home, and items for a house on Lake Martin.
He pleaded guilty to two counts of failure to file a federal tax return, one for 2009 and one for 2010. According to court records, Grinstead had a gross income of about $748,801 for the 2009 calendar year and willfully failed to file an income tax return with the Internal Revenue Service. In 2010, he received about $1,878,700 in gross income and willfully did not file a return with the IRS.
The FBI and the IRS investigated the case, and Assistant U.S. Attorney George A. Martin Jr. is prosecuting it.
Tuesday 29 October 2013
William Lawrence Barrow Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on October 28, 2013, before U.S. District Judge Sam E. Haddon, WILLIAM LAWRENCE BARROW, a 40-year-old resident of Clearfield, Utah, was sentenced to a term of:
- ison: 172 months
- ecial Assessment: $100
- pervised Release: 5 years
BARROW was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute heroin and methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On January 10, 2013, a Montana Highway Patrol (MHP) Trooper observed a vehicle on Interstate 94 near Glendive that failed to have visible registration tags. The Trooper approached the passenger side window of the vehicle and detected the odor of raw marijuana coming from within the suspect vehicle. The driver of the vehicle was identified as R.B. The passenger of the vehicle was identified as M.C.
The Trooper was given permission to search the vehicle by the registered owner, M.C. During the search, the Trooper discovered a backpack inside the vehicle. M.C. advised the backpack did not belong to him. Likewise, R.B. also denied owning the backpack. In the backpack law enforcement found numerous items of drug paraphernalia such as tin foil, a torch, numerous small plastic baggies, and a locked box. Inside the locked box there were two bags containing powdery substances. One bag field tested positive for heroin and weighed approximately 2 ounces. The second bag field tested positive for methamphetamine and weighted approximately 1.5 ounces.
The investigation revealed that R.B. and M.C. drove from Dickinson, North Dakota, to Billings on January 9, 2013. They stayed at a local motel in Billings and while at the motel, R.B. went to another room and stayed for about 2 hours. R.B. was meeting with his source of supply for methamphetamine and heroin. It was believed the male source of supply was still staying at the motel in Billings. R.B. and M.C. had previously traveled to Billings just before New Years Day, 2013, to pick up more drugs from the same source of supply.
Law enforcement returned to the motel in Billings and discovered the source of supply, BARROW, was still staying at the motel.
Agents obtained a search warrant for the motel room. Just prior to executing the search warrant agents noticed BARROW and the female with him were packing up their car and preparing to leave the motel. Agents detained BARROW and the female passenger until a K9 Officer was able to arrive and conduct an exterior sniff test of the vehicle BARROW was driving. The K9 alerted on the vehicle.
The car and the motel room were searched by law enforcement. Agents found syringes, plastic baggies, two computers, four cellular phones - which contained several text messages between BARROW and R.B. - a leather notebook with drug ledger, a flash drive, and a false bottom Arizona Iced tea can.
BARROW was detained at the Billings DEA Office. Agents seized $2,503.22 from BARROW's person along with approximately three (3) ounces of heroin wrapped in a plastic bag.
Further investigation revealed that BARROW was R.B.'s main drug connection out of Utah. BARROW had historical distributed at least 100 grams of methamphetamine and 100 grams of heroin to R.B. during the course of the conspiracy.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BARROW will likely serve all of the time imposed by the court. In the federal system, BARROW does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
Today's sentencing is a product of diligent work by the very dedicated agents who have been joined together under the banner of Project Safe Bakken. As the work of this team - which includes law enforcement professionals from all branches of local, state, and federal law enforcement - goes forward, the people of Montana and North Dakota can expect more cases from affected communities. That is the mission and commitment of Project Safe Bakken." said U.S. Attorney Michael W. Cotter.
This investigation was a part of Project Safe Bakken, which is a cooperative effort between the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Bureau of Indian Affairs (BIA), the U.S. Border Patrol, the U.S. Marshal's Service, the Environmental Protection Agency Criminal Investigation Division (EPA-CID), the Department of Homeland Security (DHS), the Montana Division of Criminal Investigation (MDCI), the Montana Highway Patrol, the North Dakota Bureau of Criminal Investigation (BCI), the Billings Police Department, the Yellowstone County Sheriff's Office, and the Idaho State Police.
Wichita Store Owner Pleads GuiltyTo Trafficking Counterfeit Designer GoodsRead the Press Release
WICHITA, KAN. - A woman who owns a retail store in Wichita has pleaded guilty to trafficking in counterfeit designer goods, U.S. Attorney Barry Grissom said today.
Glenda Sue Morgan, 55, Wichita, Kan., pleaded guilty to one count of trafficking in goods bearing counterfeit trademarks. In her plea, she admitted selling the counterfeit goods as “replicas” at her business, The Fabulous Store at 9131 E. 37th North in Wichita. On April 2, 2013, undercover law enforcement officers bought about $500 worth of such items including a “Chanel” bracelet and sunglasses, a “Michael Kors” purse and a “Prada” purse. When investigators served a search warrant they seized 400 replica items with a retail value of about $14,000.
In June 2009, more than $1 million in counterfeit goods was seized by Homeland Security Investigations from the same location. At the time, Morgan forfeited ownership of the items and they were destroyed, but she was not charged criminally.
Sentencing is set for Jan. 17, 2014. She faces a maximum penalty of 10 years in federal prison and a fine up to $2 million. Grissom commended Homeland Security Investigations, the Wichita Police Department and Assistant U.S. Attorney Brent Anderson for their work on the case.