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Wednesday 23 October 2013
Two Area Men Sentenced on Federal Charges Including the Assault of A Federal OfficerRead the Press Release
St. Louis, MO – FREDERICK CRAYTON, St. Louis City, was sentenced this morning to 168 months in prison. He pled guilty in July to federal gun and assault charges involving the April 18, 2013, assault of a federal officer. His brother, DWAYNE CRAYTON, also pled guilty in July to charges of selling crack cocaine to an undercover officer and was sentenced today to 32 months in prison. Both defendants appeared before United States District Judge Audrey G. Fleissig in St. Louis.
According to court documents, on April 15, 2013, Dwayne Crayton sold crack cocaine to an undercover agent. Three days later on April 18, 2013, his brother and Frederick and James Jones arranged to sell three firearms to an ATF undercover agent and two confidential informants. During a struggle involving several firearms, Frederick Crayton assaulted the undercover agent in an attempt to rob the agent of the money that was to be used to buy the three firearms.
Co-defendant James Edward Jones, also of St. Louis City, pled guilty to related charges and awaits sentencing in December.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
Torreon, N.M., Man Sentenced to Ten Years for Using a Firearm During an Assault on a Native WomanRead the Press Release
ALBUQUERQUE – Permanuel Castillo, 23, an enrolled member of the Navajo Nation who resides in Torreon, N.M., was sentenced this afternoon to ten years in federal prison followed by five years of supervised release for using a firearm in relation to a crime of violence.
The charges against Castillo arose out of the Sept. 27, 2012 shooting of his girlfriend. On that day, New Mexico State Police officers responded to a call regarding a shooting at Castillo’s residence, which is located on the Navajo Indian Reservation. During questioning, Castillo initially claimed that his girlfriend had been the victim of a drive-by shooting. After further questioning, Castillo admitted shooting the victim multiple times in the chest but claimed that it was an accident.
Castillo was arrested on Sept. 27, 2012, on tribal charges by officers of the Navajo Division of Public Safety and was held in tribal custody until his arrest on Oct. 24, 2012, on a federal criminal complaint. Castillo subsequently was charged in a three-count indictment with (1) assault with a dangerous weapon, (2) assault resulting in serious bodily injury, and (3) using a firearm during a crime of violence.
On April 30, 2013, Castillo pleaded guilty to Count 3 of the indictment, charging him with using a firearm during a crime of violence, and admitted assaulting the victim by shooting her with a rifle. As a result of the assault, the victim sustained three gunshot wounds to the chest.
This case was investigated by the Albuquerque office of the FBI, the Crownpoint office of the Navajo Nation Division of Public Safety and the New Mexico State Police, and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Three Metro Area Men Indicted for Food Stamp FraudRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Alaa K. Jaber (a/k/a “Ace”), 27, of Hazelwood, Missouri, Rami M. Abou Amra (a/k/a “Lucky”), 35, of Troy, Illinois, and Albraa K. Sabrah (a/k/a “Roy”), 25, of Bridgeton Missouri, were each indicted by the federal grand jury on charges that they stole Supplemental Nutrition Assistance Program or “SNAP” (f/k/a Food Stamp) benefits while working at quick shop stores in East St. Louis, Illinois.
The three indictments allege that during varying times from 2010 through 2012, the defendants illegally paid customers cash in exchange for SNAP benefits. Jaber was charged in five counts; Abou Amra and Sabrah were each charged in three counts. Each count carries a maximum penalty of 5 years in prison, a $10,000 fine, and up to 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the U.S. Department of Agriculture – Office of Inspector General, the Internal Revenue Service – Criminal Investigation, and the U.S. Department of Homeland Security – Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Ranley R. Killian.
Three Charged in Energy Pricing SchemeRead the Press Release
Michael Mateja, 27, of Massachusetts, Matthew Morgan, 39, of Schnecksville, PA, and Samuel Puleo, 26, of Fogelsville, PA, are charged by Information, filed yesterday, with a fraud scheme involving energy contracts, announced United States Attorney Zane David Memeger. According to the information, Mateja and Puleo owned and operated Coastal Energy, LLC, a company that brokered energy contracts between commercial businesses and energy suppliers.
Between June 2011 and February 2013, Mateja and Puleo solicited clients whom they had sign contracts (“Fixed All-Inclusive”) stating that Coastal would negotiate fixed rates for each kilowatt hour. Alternatively, an “Energy Only” contract provides the customer with a rate for kilowatt hours but does not include additional charges for transmission and capacity. According to the information, Mateja and Puleo altered contracts to change the terms from “Fixed All-Inclusive” to “Energy Only” without the clients’ knowledge. The end result that that the total per kilowatt hour price that Coastal’s clients had to pay were higher than the rates they agreed to pay. They are each charged with wire fraud. Mateja and Morgan are also charged with obstruction of justice for an alleged attempt to delete documents located on Coastal’s computers.
If convicted, each defendant faces a maximum possible sentence of at least 20 years in prison, three years supervised release, $250,000 fine, and a $100 special assessment
The case was investigated by Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney David L. Axelrod.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Steelton Resident Involved in Confrontation with Harrisburg Police Charged with Federal Firearm ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Donnell Thomas, 26, of Steelton, Pennsylvania, was indicted today by a federal grand jury in Harrisburg, Pennsylvania. The indictment charges Thomas with Possession of a Firearm by a Convicted Felon, Possession of a Firearm in furtherance of Drug Trafficking, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm with an Obliterated Serial Number.
According to United States Attorney Peter J. Smith, the charges against Thomas are a result of allegations that in February 2013, Thomas attempted to ram a vehicle being driven by uniformed officers from the Harrisburg Police Bureau. He then fled from those officers but was ultimately apprehended after discarding a firearm with an obliterated serial number from the waistband of his pants. Upon his arrest, bags containing an alleged controlled substance were seized from his person and his vehicle.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrisburg Police Bureau and is being prosecuted by Assistant United States Attorney Meredith A. Taylor as part of the on-going cooperative effort by federal, county and Harrisburg law enforcement agencies to fight violent crime in the city.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Statement of Manhattan U.S. Attorney Preet Bharara on the Countrywide, Bank of America, and Rebecca Mairone VerdictRead the Press Release
“Almost a year to the day after we brought suit, a unanimous jury has found Countrywide, Bank of America, and senior executive Rebecca Mairone liable for making disastrously bad loans and systematically removing quality checks in favor of its own balance. As demonstrated at trial, they adopted a program that they called “the Hustle,” which treated quality control and underwriting as a joke.
In a rush to feed at the trough of easy mortgage money on the eve of the financial crisis, Bank of America purchased Countrywide, thinking it had gobbled up a cash cow. That profit, however, was built on fraud, as the jury unanimously found.
In this case, Bank of America chose to defend Countrywide’s conduct with all its might and money, claiming there was no case here. The jury disagreed. This Office will never hesitate to go to trial to expose fraudulent corporate conduct and to hold companies accountable, particularly when it has caused such harm to the public.
I want to thank the members of the jury for their service in this important trial. And I commend the Assistant U.S. Attorneys in the Office's Civil Division for their dedication, skill, and tireless efforts.”
Stamford Resident Charged with Running Fraud Scheme to Obtain Hundreds of Computer Networking PartsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that CRAIG A. STANLAND, 40, of Stamford, has been charged by criminal complaint with operating a scheme through which he fraudulently obtained hundreds of computer networking parts from Cisco Systems, Inc.
STANLAND was arrested on October 1, 2013. Following his arrest, he appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $100,000 bond. The criminal complaint was unsealed on October 21.According to the criminal complaint, STANLAND operated a service contract fraud scheme for approximately a year leading up to his arrest. As alleged, STANLAND purchased or controlled approximately 14 service contracts for Cisco networking parts. Pursuant to these service contracts, STANLAND – using the aliases Alan Johnston of Opex Solutions, Kyle Booker of KLB Networks, Steve Jones of SHO Networks, Robert Johnson of Adaptations, and Paul Smith of PS Solutions, among others – made hundreds of false service requests to Cisco to replace purportedly defective computer networking parts. Based on these requests, Cisco shipped replacement parts to various addresses at STANLAND’s direction, including to his home in Stamford, to his wife’s business in Brooklyn, N.Y., and to two post office boxes in Greenwich. Although STANLAND was supposed to return each allegedly defective part to Cisco, he either returned no parts at all or instead sent to Cisco third-party, off-brand parts.
It is alleged that STANLAND fraudulently obtained more than 400 parts from Cisco through this scheme. The retail cost of the parts ranged from approximately $500 to $8,600.
The criminal complaint charges STANLAND with mail fraud, which carries a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation with valuable assistance from the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney David T. Huang
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[email protected]St. Louis Man Charged in Federal Court with Robbery of Cahokia Gas StationRead the Press Release
Case Is One of Many Brought as a Result of United States Attorney Wigginton’s Metro-East Armed Robbery Initiative
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 23, 2013, Carvin G. Brooks, 33, of St. Louis, Missouri, was indicted by a federal grand jury sitting in East St. Louis, Illinois, with count 1, interference with commerce by robbery (Hobbs Act) in connection with a robbery of a BP Gas Station that occurred in Cahokia, Illinois, on October 9, 2013.
If convicted of a violation of the Hobbs Act, Brooks faces a term in prison of up to 20 years, a fine of up to $250,000, or both, and a term of supervised release of up to 5 years, as well as a mandatory assessment of $100.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
A tip from Crimestoppers led to the arrest of the defendant. This case is being investigated the Cahokia Police Department and is assigned to Special Assistant United States Attorney Neal C. Hong for prosecution.
St. Charles County Man Indicted on Federal Child Enticement ChargesRead the Press Release
St. Louis, MO – MICHAEL ENGLER was charged for allegedly soliciting sex from a minor on Craigslist. But that minor was an undercover officer working with the FBI’s Crimes Against Children Task Force.
According to a federal criminal complaint filed October 17th, when an undercover officer posing as an 18-year-old posted a “male looking for a male” ad on Craigslist, Engler responded. When the undercover officer told Engler he was "14," Engler still wanted to meet the child. According to court documents, when the "14-year-old" expressed hesitation, Engler told him he knew about boys experimenting and told him he was in a Boy Scouts "venturing program" for kids aged 14 – 20. On October 15, Engler agreed to meet with the officer posing as the 14-year-old boy saying he would teach him about oral sex. Engler was arrested on October 16 when he showed up at the designated meeting spot behind an ice rink at Brentwood.
Engler, St. Charles, MO, was indicted by a federal grand jury today on one felony count of attempting to persuade, induce, entice and coerce a minor to engage in sexual activity.
If convicted, this charge carries a penalty range of ten years to life in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis County Police Department in conjunction with the Federal Bureau of Investigation, the United States Secret Service and the St. Charles County Cybercrime Unit. Assistant United States Attorney Jennifer Winfield is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Augustine Sex Offender Pleads Guilty in Federal Court to International Transportation of Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announced today that Charles Lee Gorish (67, St. Augustine) pleaded guilty to transporting images and videos of child pornography from Florida to Canada. Gorish faces a mandatory minimum penalty of not less than 15 years and up to 40 years in federal prison. Gorish has been in custody since his arrest in St. Augustine on September 7, 2012. A sentencing hearing has not yet been set.
According to court documents, Gorish, using a fake name, sent a package by FedEx from St. Augustine to an individual in Ontario, Canada. The package was intercepted by Canadian law enforcement officers. It contained, among other things, two micro SD media cards with more than 600 images and videos depicting child pornography, and thousands of images of child erotica. Canadian officials notified the St. Johns County Sheriff=s Office (SJCSO), the Federal Bureau of Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations regarding the seizure of this package. Further investigation revealed that Gorish is a registered sex offender. He was convicted in Hillsborough County, Florida on February 24, 1992, for lewd and lascivious conduct on a minor child.
On September 7, 2012, FBI agents and SJCSO personnel executed a federal search warrant at Gorish=s residence in St. Augustine. During an interview, Gorish admitted, among other things, that he downloaded the files depicting the sexually explicit images of young boys on the SD cards from the Internet, over a period of years. Gorish was subsequently arrested.
This case was investigated by the Canadian Border Services Agency, Ottawa Police Services, St. Johns County Sheriff's Office, the Federal Bureau of Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another 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 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.
Smith County Man Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 39-year-old Tyler, Texas, man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mark Anthony Hicks pleaded guilty on June 4, 2013 to possession of child pornography and was sentenced to 24 months in federal prison today by U.S. District Judge Leonard E. Davis.According to information presented in court, on Feb. 28, 2013, federal and local law enforcement agents executed a search warrant at Hicks’ residence in Tyler, Texas. A computer hard drive was seized during the search and found to contain more than 100 images and nearly 30 videos of child pornography. Hicks was indicted by a federal grand jury on Mar. 27, 2013 and charged with child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by United States Secret Service and the Longview Police Department and prosecuted by Assistant U.S. Attorney L. Frank Coan, Jr.Shiprock Man Sentenced to Fifty-Seven Months for Aiding and Abetting an Armed Robbery on the Navajo Indian ReservationRead the Press Release
ALBUQUERQUE – Neilson McKensley, 49, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to 57 months in federal prison followed by three years of supervised release for his conviction for aiding and abetting an armed robbery in Indian Country.
McKensley was arrested on Nov. 13, 2012, on a criminal complaint charging him with being an accomplice to an armed robbery of a residence in Shiprock on Oct. 26, 2012. He subsequently was indicted on that same charge. McKensley has been in federal custody since his arrest.
According to court records, McKensley assisted Randy Coolidge, 46, in robbing the residence of an acquaintance in the early hours of Oct. 27, 2012, by driving Coolidge to the residence. After putting duct tape over his face to conceal his identity, Coolidge approached the residence armed with a pistol. When Coolidge tried to push his way into the residence, the victim attempted to take the pistol away from Coolidge. As the two men fought over the pistol, the pistol discharged and Coolidge was shot in the chest and stomach. Coolidge subsequently died of his wounds. The victim then realized that McKensley, whose face also was covered with black duct tape and who was armed with a steel pipe, was standing by his door. After attempting unsuccessfully to drag Coolidge from the residence, McKensley left Coolidge behind and drove away. Officers initiated the investigation leading to McKensley’s arrest after Coolidge’s body was found shortly thereafter.
On May 6, 2013, McKensley pleaded guilty to the indictment and admitted driving Coolidge to the victim’s residence knowing that Coolidge intended to take items of value from the victim by force and violence. McKensley also admitted that he intended to help Coolidge rob the victim.
This case was investigated by Albuquerque and Farmington offices of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Mark T. Baker.
Sex Offender Sentenced to 15 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Fordland, Mo., man who was on parole after being convicted of child molestation was sentenced in federal court today for downloading child pornography to his cell phone.
Thomas E. Wilson, 27, of Fordland, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Wilson was convicted of child molestation in Webster County Circuit Court in 2006 and sentenced to seven years in state prison. He was released on parole in January 2011, and was still on parole at the time of the federal offense. Wilson’s parole was revoked; his federal sentence will be served consecutively to the state sentence, followed by federal supervised release for the rest of his life.
Wilson pleaded guilty on June 10, 2013. He was arrested after an Ozark, Mo., police officer noticed him sitting in his car in the parking lot of a closed business on Nov. 15, 2012. When the officer examined Wilson’s cell phone, he discovered images of child pornography. More than 150 images of child pornography were identified in a forensic examination of the phone.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Ozark, Mo., Police Department.
Project Safe Childhood
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 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."Seven Individuals Charged in Connection with Multi-Million Dollar Mortgage Modification SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Christy Romero, the Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”), and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging GUY SAMUEL, the co-owner of a company that purported to provide mortgage modification services, and four former employees of the company, ANTHONY BLACKWELL, ANGEL GONZALEZ, JONATHAN LYONS, and AREN GOLDFADEN, for their alleged participation in a multimillion-dollar scheme that victimized more than 500 financially struggling homeowners across the country. The defendants were arrested earlier this morning and will be presented in Manhattan federal court this afternoon before U.S. Magistrate Judge Frank Maas. The case is assigned to U.S. District Judge George B. Daniels.
Also unsealed today were the guilty pleas of SCOTT SCHREIBER and DARRELL KEYS in connection with their participation in the scheme. SCHREIBER pled guilty pursuant to an Information before U.S. District Judge Robert P. Patterson on October 16, 2013, and KEYS pled guilty pursuant to an Information before U.S. District Judge Robert W. Sweet on September 19, 2013.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants told one lie after another, purporting to help struggling homeowners looking for an end to their financial troubles but instead defrauding them out of millions. This Office has zero tolerance for those who would target already distressed borrowers in hopes of turning a profit at their expense, and we will continue to work to hold these and like-minded defendants accountable.”
Special Inspector General of SIGTARP Christy Romero said: “Samuel and his coconspirators stand charged today with ripping off struggling homeowners desperately trying to keep a roof over their heads in the midst of the nation’s housing crisis. They allegedly claimed their ‘business’ was affiliated with TARP’s housing program, HAMP, and instructed victims to stop paying their mortgages immediately, transfer thousands of dollars in upfront frees to their company in exchange for false promises of a guaranteed mortgage modification, and cease all communication with their mortgage lenders. After allegedly swindling more than 500 struggling homeowners nationwide out of $2.3 million in ill-gotten proceeds, Samuel refused to provide refunds to victims for whom he and others did little if any work. Instead, Samuel purportedly spent hundreds of thousands of dollars on vacations, entertainment, and personal expenses. I commend U.S. Attorney Bharara and his team for their efforts in prosecuting this case, and let this be a warning to anyone allegedly engaged in fraud related to TARP; if guilty, you will be held accountable and brought to justice by SIGTARP and our law enforcement partners.”
FBI Assistant-Director-in-Charge George Venizelos said: “Struggling homeowners became easy prey for these defendants, who allegedly lured their victims into a false sense of security by promising to save them from financial burden in exchange for a fee. Those charged allegedly conspired to divert these funds into their own pockets and hid behind the façade of a legitimate federal assistance program with which they were not affiliated. This type of criminal activity is not only devastating to victims, but poses a serious threat to the integrity of our marketplace. Today we remind everyone of our commitment to identify sophisticated schemes that take advantage of vulnerable homeowners; those responsible will not go unpunished.”
According to the allegations contained in the Indictment, the Informations unsealed today, and statements made in related proceedings:
From approximately January 2009 to June 2011, the defendants perpetrated a scheme to defraud homeowners who were in danger of losing their homes because they could not afford to pay their residential mortgages. Through a company located in Long Island, New York (“Company-1”), and its successor companies (the “Mortgage Modification Companies”), the defendants and other employees falsely promised to help financially struggling residential mortgage holders refinance their mortgages for lower interest rates and monthly payments. Despite the defendants’ claims, however, the Mortgage Modification Companies delivered little or no service to their customers, diverting most, if not all, of the customers’ payments to the Mortgage Modification Companies’ owners and employees rather than using those funds to assist customers in procuring mortgage modifications. Through their scheme, the Mortgage Modification Companies obtained at least $2.3 million from more than 500 homeowners throughout the United States.
The Mortgage Modification Companies charged customers thousands of dollars in up-front fees—in violation of New York State law—and made fraudulent claims about the companies’ services, including that the Mortgage Modification Companies guaranteed that they would either: (i) secure a mortgage modification that would result in a significant reduction in the customer’s interest rate and/or monthly payments; or (ii) provide the customer’s money back. Through the Mortgage Modification Companies, the defendants and other employees also falsely claimed to be affiliated with the federal government’s Home Affordable Modification Program (“HAMP”), a federally-funded mortgage assistance program that is part of the Troubled Asset Relief Program and is available to homeowners free of charge.
SAMUEL, the co-owner and operator of the Mortgage Modification Companies, purchased on behalf of those companies tens of thousands of “leads” containing names and contact information for homeowners who had fallen behind or were in danger of falling behind in making mortgage payments on their homes. SAMUEL, BLACKWELL, who held himself out as an attorney for the Mortgage Modification Companies despite not having a valid law license for most of the relevant period, and GONZALEZ, a sales manager, instructed the companies’ sales representatives—who were responsible for calling, and answering calls from, struggling homeowners—to make materially false or misleading representations to convince prospective clients to pay upfront fees to the companies. Those false or misleading representations included that the Mortgage Modification Companies were associated with HAMP; that a mortgage modification was guaranteed and would take only approximately thirty to sixty days; and that the Mortgage Modification Companies would issue a full refund of the upfront fee to any client whose mortgage was not successfully modified in the stated time period. At the direction of SAMUEL, BLACKWELL, and GONZALEZ, the Mortgage Modification Companies routinely refused to provide refunds to customers despite the fact that those customers did not obtain mortgage modifications as promised.
SAMUEL, BLACKWELL, and GONZALEZ also personally met with and spoke directly to customers and told similar lies. They sought to cover up their fraudulent scheme by, among other things, directing sales representatives to assuage customers by falsely claiming that work was being done on the customer’s behalf and that the company just needed more time to obtain a mortgage modification, when, in fact, little or no work was being done to provide a mortgage modification to the customers. SAMUEL also made materially false and misleading statements in a deposition conducted by the New York State Attorney General’s Office in connection with an investigation of complaints by the Mortgage Modification Companies’ customers.
LYONS, GOLDFADEN, and KEYS worked as sales representatives for the Mortgage Modification Companies. SCHREIBER was the co-owner of Company-1.
SAMUEL, 32, of Richmond Hill, New York; BLACKWELL, 47, of Manhattan, New York; GONZALEZ, 31, of Rosedale, New York; LYONS, 51, of Rockville Center, New York; and GOLDFADEN, 36, of East Rockaway, New York, are each charged with one count of conspiracy to commit wire fraud, and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison.
SCHREIBER, 30, of Brooklyn, New York, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud, and he faces a maximum sentence of 40 years in prison. KEYS, 51, of Uniondale, New York, pled guilty to one count of conspiracy to commit wire fraud, and he faces a maximum sentence of 20 years in prison.
Mr. Bharara praised SIGTARP and the FBI for their outstanding work in the investigation. Mr. Bharara also thanked the New York State Attorney General’s Office for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Janis Echenberg is charge of the case.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Seven Arrested on Federal Drug and Gun Charges During Early Morning Round-upRead the Press Release
Seven More Arrested This Morning Will Face Criminal State Charges
CHARLOTTE, N.C. – A total of 14 defendants were arrested earlier today and face federal and state criminal charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Seven of the defendants have been charged with federal drug and gun offenses, and seven face state criminal charges.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Andrew Murray, District Attorney for Mecklenburg County; and Chief Rodney D. Monroe, of the Charlotte-Mecklenburg Police Department (CMPD).
The defendants were apprehended during an early morning round-up conducted by ATF, the U.S. Marshals and CMPD. Those arrested and charged by federal criminal complaints include, in alphabetical order:
• Donuell Johnson a/k/a “Rock,” 29, of Charlotte.
• Waycus Luckett, a/k/a “Lucky,” 31, of Charlotte.
• Erecai Lynch, 26, of Charlotte.
• David Ray McCullough, 37, of Charlotte.
• Christopher Roseboro, 33, of Charlotte.
• Brandon Tate, 26, of Charlotte.
• Terrence Tate, 21, of Charlotte.
Click on the links below to view a chart of federal charges and penalties for each defendant:
PenaltiesFederal arrest warrants have also been issued against Rodney Reid, 37, Jimareo Sherrill, 21, and Quandarius Shine, 23, all of Charlotte, who are still wanted by law enforcement.
Five additional defendants previously arrested on state charges have now been charged with federal offenses in connection with this investigation, bringing the total number of those charged federally to 15. They are: Jerry Lee Edwards, 27; Isiah Ezechukwu, a/k/a “Donte,” 26; Denis Joel Argueta Gonzalez, 20; Jamil Weaks, 19; and Darryl Whiteside, Jr., 26, all of Charlotte.
Seven more defendants arrested during this morning’s round-up face state criminal charges.
Over the course of the investigation law enforcement seized 10 firearms, including two loaded SKS rifles and stolen firearms brought into North Carolina from out of state.
Today’s arrests are the result of a four-month investigation targeting drug trafficking and violent crime in and around the Sugar Creek/Interstate 85 corridor. The agencies involved in this initiative are dedicated to working together to identify violent and repeat offenders for federal prosecution. This investigation, which began in early summer, is part of U.S. Attorney General Eric Holder’s Anti-Violence Initiative, which calls for federal, state and local agencies to target violent crime hot spots and collaborate on developing strategies to reduce crime and violence in those communities.
In making today’s announcement U.S. Attorney Tompkins stated, “This morning’s arrests are the result of a joint law enforcement investigation targeting an area of Charlotte that is afflicted by crime and drug-fueled violence. I want to thank our law enforcement partners who united to identify and remove violent felons from our streets and let this be a warning that we will not sit on the sidelines while our neighborhoods are polluted with drugs and violence.”
“Today’s law enforcement operation in the Interstate 85 corridor area in Charlotte should send the clearest message possible. As long as those individuals who insist on returning here again and committing violent crimes and violations of gun and drug laws, the ATF/CMPD Violent Crimes Task Force and our law enforcement partners will continue to identify you and put you behind bars where you belong,” said ATF Special Agent in Charge Wayne L. Dixie. “Our commitment to providing a safe and secure community for the citizens of Charlotte should not continue to be challenged, because we have demonstrated that we will utilize all of our joint resources and rise to that challenge if necessary.”
“We will continue to work to improve the quality of life for the citizens in this community by working with our committed partners in reducing crime,” said Charlotte-Mecklenburg Police Chief Rodney D. Monroe.
“We’re proud to stand beside our U.S. Attorney’s Office and law enforcement partners today and every day in our efforts to seek justice in our community,” said Mecklenburg County District Attorney Andrew Murray.
The seven federal defendants arrested today are currently in federal custody. Their initial appearances will be held in U.S. District Court before U.S. Magistrate Judge David Keesler.
The charges contained in these complaints are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being conducted by the ATF and CMPD. U.S. Attorney Tompkins also thanked the U.S. Marshals for their invaluable assistance in making today’s arrests.
Assistant U.S. Attorney Ann Claire Phillips of the U.S. Attorney’s Office in Charlotte is leading the prosecution.
Rising Sun Man Sentenced to over 17 Years in Prison for Sexually Exploiting A Minor to Produce Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Michael Dale Irwin, age 27, of Rising Sun, Maryland, today to 210 months in prison, followed by lifetime supervised release, for the sexual exploitation of a minor to produce child pornography. Judge Bennett also ordered that upon his release from prison, Irwin must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police (MSP); and Cecil County State’s Attorney Ellis Rollins.
According to Irwin’s plea agreement, on March 12, 2013, a witness reported to Maryland State Police that Irwin had sent an image to her cellular phone documenting his sexual abuse of a prepubescent minor female. The witness contacted MSP when she recognized Irwin in the image. Although the messages were set to “auto delete” and were no longer on the witness’ phone, with the consent of the witness MSP began monitoring calls and text messages between Irwin and the witness and directed all communication by the witness with Irwin. After Irwin sent the witness a video depicting a six to eight year old female engaged in sexually explicit conduct, troopers arrested Irwin at his place of employment and seized his phone, which had been used to text and call the witness. MSP recovered the images and video documenting Irwin’s sexual abuse of a prepubescent minor female and obtained the sexually explicit text messages that he had previously sent to the witness describing in graphic detail the sexual acts he performed on the child. HSI special agents in Baltimore conducted the forensic examination on Irwin’s phone and HSI’s victim witness specialist provided substantial assistance to the victims and their families.
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 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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police and the Cecil County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who prosecuted the case.
Richmond Man Sentenced to More Than 12 Years in Federal Prison for Holding Undercover Agent at Gunpoint During Attempted RobberyRead the Press Release
OAKLAND – Khusar Mobley was sentenced today to 147 months’ imprisonment, for conspiracy to commit robbery; assault on a federal officer; robbery; and brandishing a firearm during a crime of violence, United States Attorney Melinda Haag announced.
Mobley, 20, of Richmond, was convicted after a four-day jury trial on June 20, 2013. During the trial, evidence showed that Mobley held a loaded gun to the head of an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. As the agent attempted to push the gun away, Mobley – with his finger on the trigger – demanded that the agent empty his pockets. When nearby government agents came to the rescue, Mobley attempted to pull the trigger several times, but he was prevented from doing so by a heroic person who jammed his thumb under the trigger of the gun.
Mobley’s co-defendants – Otis Mobley and D’Marce Hutcherson – pleaded guilty and were sentenced to 114 months’ and 108 months’ imprisonment respectively in May 2013.
“The defendant’s conduct in this case should remind us all of the grave danger that law enforcement officers face every day when they do their jobs of keeping the public safe,” said United States Attorney, Melinda Haag. “The substantial sentence that the court imposed today should demonstrate that the U.S. Attorney’s Office will prosecute violent offenders to the full extent of the law and hold them accountable for their crimes.”
“This case shows how firearms used by violent criminals terrorize our communities and put the public at risk,” stated Bureau of Alcohol, Tobacco, Firearms, and Explosives, Special Agent in Charge Joseph M. Riehl. “We are grateful for the safety of our agent who worked in an undercover capacity and was robbed at gunpoint. I would like to thank the cover team and the undercover agent for their brave response to a dangerous situation. I would also like to thank the United States Attorney’s Office for their diligent work in prosecuting this case. Let this sentencing be a message to those who pose a threat to our community that ATF will hold them accountable.”
The sentence was handed down by The Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge. The defendant was also sentenced to a five-year period of supervised release. Mr. Mobley is already in custody and will begin serving his sentence immediately.
James C. Mann and Natalie Lee are the Assistant U.S. Attorneys who prosecuted the case with the assistance of Vanessa Vargas.
(Mobley indictment )
Reeds Spring Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Reeds Spring, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Seth Eugene Henderson, 40, of Reeds Spring, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Henderson was sentenced as an armed career criminal due to his prior felony convictions.
On June 26, 2013, Henderson pleaded guilty to being a felon in possession of a firearm. Henderson admitted that he was in possession of a loaded Hi-Point 9mm pistol on Dec. 19, 2012. Henderson was the passenger in a stolen truck that eluded law enforcement officers during a pursuit. Henderson, carrying the pistol, fled from the vehicle and was chased by a sheriff’s deputy. After a short chase, the officer subdued Henderson with his Taser and arrested him.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Henderson has two prior felony convictions for distributing a controlled substance as well as prior felony convictions for manufacturing or possessing a controlled substance with the intent to distribute, burglary and possession of a chemical with the intent to manufacture a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Stone County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Philadelphia Woman Sentenced to More Than Three Years for Identity TheftRead the Press Release
SAN JOSE – Vernina Adams was sentenced today to 38 months in prison for wire fraud and aggravated identity theft, United States Attorney Melinda Haag announced.
On January 9, 2013, pursuant to a plea agreement with the government, Adams pleaded guilty to one count of wire fraud and one count of aggravated identity theft. Adams admitted that beginning in March 2010, and continuing to approximately June 2010, she carried out a scheme to defraud Paymate, which was a credit card processing company for people who bought and sold goods on the Internet located in Woodside, Calif.
As part of her guilty plea, Ms. Adams, 31, of Philadelphia, Pennsylvania, admitted that she had created several fictitious businesses on the Internet using the names of other people without authorization, and also opened bank accounts for each of those fictitious businesses, again using the names of real people without authorization. Adams also admitted that she had opened Paymate accounts in the names of those fictitious Internet businesses. She then used her own credit cards, as well as credit cards belonging to her relatives and friends, to pretend to purchase goods and services in amounts ranging from $1,000 to $7,000 from the fictitious businesses. Paymate processed those payments.
After Paymate deposited funds from the fraudulent sales into the bank accounts associated with the fictitious businesses, Adams immediately withdrew the fraudulently-acquired funds from various automated teller machines in Pennsylvania. She then contacted the credit card companies and reported that she had not received the goods or services. Adams also instructed her friends and relatives to do the same. The credit card companies then initiated a “charge-back” and recovered the amounts fraudulently charged from Paymate. When Paymate attempted to reclaim the funds from the bank accounts associated with the fictitious businesses, there were insufficient funds in the bank accounts because Adams had already withdrawn all of the money from the purported sales.
Adams, was indicted on July 25, 2012. She was charged with five counts of wire fraud, in violation of 18 U.S.C. § 1343, and two counts of aggravated identity theft, in violation of 18 U.S.C. §§ 1028A(a)(1)(A) and 1028A(c)(5). Under the plea agreement, Adams pleaded guilty to one count of wire fraud and one count of aggravated identity theft.
The sentence was handed down by The Honorable Lucy H. Koh, U.S. District Court Judge. Adams was also sentenced to a three-year period of supervised release and ordered to pay $32,500 in restitution to Paymate. Adams will begin serving the sentence on January 24, 2014.
Susan Knight is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Tracey Andersen. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.
(Adams indictment )
Philadelphia Man Charged with Bank FraudRead the Press Release
Robert Von Ryan, 37, of Philadelphia, was charged yesterday by information with one count of bank fraud, announced United States Attorney Zane David Memeger. According to the information, while guarding the cars of Philadelphia Eagles football players, the defendant took bank account information belonging to one of the players and used the bank information to transfer more than $225,000 from the account.
If convicted the defendant faces a maximum possible sentence of 30 years imprisonment, a $1,000,000 fine, five years of supervised release and a $100 special assessment.
The case was investigated by the United States Secret Service, and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Owners of Tax Preparation Business Arrested in Delaware, Charged with Filing Thousands of Phony Tax ReturnsRead the Press Release
TRENTON, N.J. – The two owners of a tax preparation business that claimed millions of dollars in fraudulent tax refunds on behalf of inmates at various New Jersey prisons were arrested this morning in Laurel, Del., U.S. Attorney Paul J. Fishman announced.
Special agents of the IRS-Criminal Investigations (IRS-CI) arrested Kamal J. James, aka “Bro Messiah Aziz El,” and Crystal G. Hawkins, aka “Sis. Crystal Gabri El,” at Hawkins’ residence on a criminal complaint charging them with one count of conspiracy to defraud the United States. The pair operated Release Refunds, a purported tax preparation business – previously based in Brick, N.J., and now in Seaford, Del. – through which they solicited New Jersey prison inmates as clients and then filed thousands of fraudulent tax returns on their behalf. James’ and Hawkins’ conduct allegedly resulted in hundreds of thousands of dollars in illicit profits and an actual tax loss of approximately $1.7 million.
James and Hawkins appeared in Trenton federal court this afternoon before U.S. Magistrate Judge Douglas E. Arpert. During the proceeding, the government alleged that marijuana plants and a firearm were found in the Laurel home during the arrests. James was detained following the proceeding and Hawkins is expected to be released on a $250,000 bond.
According to the complaint unsealed today:
Between October 2011 and October 2013, James and Hawkins conspired to defraud the United States out of millions of dollars by creating and filing income tax returns that were based on bogus income and withholding information. James and Hawkins used their purported tax preparation business as a vehicle to carry out the scheme.
To execute the scheme, James and Hawkins sent Release Refunds “promotional” flyers to inmates at various New Jersey prisons offering tax return preparation services. The pair asked inmates interested in Release Refunds’ services to provide basic identification information and to sign Income Tax Returns and other IRS documents, but not to include any information about their income or withholdings. James and Hawkins then filled in the missing income information on the return forms, fabricating the inmates’ earnings to trigger fraudulent and inflated refunds.
During the course of the investigation, an undercover IRS-CI agent posing as an inmate in a New Jersey prison submitted a completed Release Refunds form and sent it to James and Hawkins. They then sent the “inmate” blank income tax forms and other IRS documents and instructions to sign the documents. James and Hawkins did not request any financial information from the undercover agent before preparing three fraudulent tax returns – including false income information that James and Hawkins provided – to be filed on behalf of the agent for tax years 2010 through 2012. The fraudulent returns resulted in several thousand dollars in refunds and a $1,485 fee for the defendants.
In total, James and Hawkins caused approximately 2,432 fraudulent tax returns to be filed during the relevant time period, claiming approximately $4,402,288 in improper refunds, of which the United States paid approximately $1,779,910.16.
If convicted, the defendants face a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the amount of the gain or loss from the offense.U.S. Attorney Fishman credited special agents of IRS-CI, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation.
The government is represented by Assistant U.S. Attorneys Nicholas P. Grippo and Jennifer Davenport of the U.S. Attorney’s Office Criminal Division in Trenton and Trial Attorney Tino Lisella of the Justice Department’s Tax Division. Assistant U.S. Attorney Sarah Wolfe represented the government at today’s proceeding.The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel:Kamal J. James: Bruce Throckmorton Esq., Trenton
Crystal G. Hawkins: Assistant Federal Public Defender Andrea Bergman Esq., Trenton
James, Kamal et al. Complaint
Owner, Executives and Physcians at Closed Sacred Heart Hospital Indicted in Alleged Medicare Referral Kickback ConspiracyRead the Press Release
CHICAGO ― The owner and three other executives of the now-closed Sacred Heart Hospital and four physicians affiliated with the former west side facility were indicted on federal charges alleging that they collectively paid and received hundreds of thousands of dollars in illegal kickbacks in exchange for the referral of hospital patients who were insured by Medicare and Medicaid. Sacred Heart allegedly paid physicians bribes and kickbacks to induce patient referrals and increase the patient census, which, in turn, increased hospital revenue.
Sacred Heart Hospital was a 119-bed acute care facility located at 3240 West Franklin Blvd., in Chicago. The hospital closed and filed for bankruptcy this summer after Medicare payments were suspended in the aftermath of criminal charges that were first filed in April. The indictment charges only conduct involved in the alleged kickback conspiracy while a broader investigation that was outlined in the earlier criminal complaint continues.
The eight defendants were charged in a 17-count indictment that was returned by a federal grand jury late yesterday and announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois. Five of the eight defendants were charged and arrested on April 16 this year, while three new defendants were charged in the indictment for the first time. A fifth physician associated with Sacred Heart was indicted separately for illegally prescribing prescription medications. No new arrests occurred in connection with the indictments.
Mr. Fardon announced the charges with Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Service Office of Inspector General, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation.
The five defendants charged previously in the conspiracy case are: EDWARD J. NOVAK, 58, of Park Ridge, Sacred Heart’s owner and chief executive officer; ROY M. PAYAWAL, 64, of Burr Ridge, executive vice president and chief financial officer; and Drs. PERCY CONRAD MAY, JR., 75, of Chicago, SUBIR MAITRA, 73, of Chicago, and SHANIN MOSHIRI, also known as “Shawni Moshiri,” 58, of Chicago. All five of these defendants remain free on various bonds after they were arrested in April.
The three new defendants are: Dr. RAJIV KANDALA, 41, of Chicago; ANTHONY J. PUORRO, 57, formerly of Chicago, who was Sacred Heart’s chief operating officer; and NOEMI VELGARA, 64, of Chicago, who was Sacred Heart’s vice president of geriatric services and was responsible for overseeing the Golden L.I.G.H.T. medical clinics, including managing employees responsible for marketing, and recruiting and transporting patients.
All eight defendants will be ordered to appear for arraignment in U.S. District Court.
Four defendants ― Novak, Payawal, Puorro, and Velgara ― were each charged with one count of conspiracy to violate the federal healthcare anti-kickback statute by offering and paying kickbacks and bribes, directly and indirectly, from Sacred Heart to Drs. May, Maitra, Moshiri, Kandala, and other physicians to induce them to refer patients to the hospital for services that would be reimbursed by Medicare and Medicaid. Sacred Heart’s chief operating officer before Puorro, identified as “Administrator A,” is named as an unindicted co-conspirator.
In addition, Novak and Payawal were each charged with eight substantive counts of paying kickbacks for patients, while Drs. May, Maitra, Moshiri, and Kandala were charged with two counts each of accepting kickbacks for patient referrals. The indictment also seeks forfeiture of illegal proceeds from Novak, Payawal, and the four physicians, including the unspecified total amount of Medicare and Medicaid reimbursements made on claims submitted on behalf of hospital patients whose referral involved kickbacks, and the total amount of kickbacks paid to the four physicians.
According to the indictment, Sacred Heart’s owner, executives and administrators conspired between 2004 and April 2013 to pay physicians bribes concealed as consulting, employment and personal services compensation, rent, and instructional stipends in return for referrals of Medicare and Medicaid patients. Although styled as payments for legitimate services, the payments actually contained disguised bribes paid to and for the benefit of Drs. May, Maitra, Moshiri, and Kandala in exchange for patient referrals.
The indictment alleges that Novak, Payawal, Puorro, and Administrator A caused Sacred Heart to pay May hundreds of thousands of dollars in bribes disguised as rent, and Moshiri more than $150,000 in bribes disguised as payments for purportedly teaching podiatric surgery residents. Novak, Payawal, and Puorro allegedly caused Sacred Heart to pay Maitra at least $68,000 in bribes disguised as payments for purportedly teaching medical students at the hospital; and Kandala at least $32,000 in bribes disguised as compensation for consulting and instructional services purportedly provided to the hospital and its staff.
Payawal, Puorro, and Velgara allegedly agreed to have Sacred Heart offer to pay bribes to the hospital’s transportation staff to recruit and refer patients to the hospital, and those three defendants, together with Novak, also caused Sacred Heart to pay individuals employed as “marketers” to recruit patients.
As part of the same investigation, a fifth physician associated with Sacred Heart was indicted separately this month for allegedly illegally prescribing hydrocodone or lorazepam to four different patients without having a valid license and registration to prescribe controlled substances. The defendant, Dr. KENNETH S. NAVE, 51, of Chicago, who also was arrested and charged last April, allegedly illegally used the Drug Enforcement Administration registration number of another physician when he prescribed the prescription narcotics between October and December 2012. Nave pleaded not guilty at his arraignment this week.
Each count in the eight-defendant Novak indictment carries a maximum penalty of five years in prison and a $250,000 fine and restitution is mandatory. Each count in the Nave indictment carries a maximum penalty of four 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 Joel Hammerman, Ryan Hedges and Terra Reynolds.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The case falls under the umbrella of the Medicare Fraud Strike Force, which expanded operations to Chicago in February 2011, and is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Justice Department and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Dozens of defendants have been charged in health care fraud cases since the strike force began operating in Chicago.
To report health care fraud to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: stopmedicarefraud.gov.
Indictment
Owner of Allied Components LLC Admits Transmitting Military Blueprints to India Without A LicenseRead the Press Release
Also Provided Faulty Aircraft Parts to Department of Defense
Grounded 47 F-15 FightersTRENTON, N.J. – The owner and general manager of Allied Components LLC, a Sparta, N.J., company that supplies defense hardware items to the U.S. Department of Defense (DoD), today admitted that he e-mailed to India sensitive military technical data and provided faulty aircraft parts to the DoD, U.S. Attorney Paul J. Fishman announced.
Robert Luba, 47, of Sparta, pleaded guilty today before U.S. District Judge Joel A. Pisano to an information charging him with one count of making a false claim upon the DoD by providing non-conforming “wing-pins,” manufactured in India, for the F-15 fighter aircraft, when he had contracted to provide a U.S.-made product. He also pleaded guilty to one count of violating the Arms Export Control Act for transmitting information about a component of a nuclear-powered submarine to India without the approval of the U.S. Department of State.
“The conduct admitted by Luba shows a callous disregard for the safety of our armed forces,” U.S. Attorney Fishman said. “By recklessly providing sub-standard parts for sophisticated weapons systems and sharing sensitive information with a foreign state, Luba not only jeopardized the lives of men and women on the front lines of our national defense, he put all Americans at risk, all in the name of making a buck.”“The Defense Criminal Investigative Service is committed to protecting the integrity of the Defense acquisition process from personal and corporate avarice,” Craig Rupert, Special Agent in Charge, DCIS Northeast Field Office, said. “Ensuring U.S. taxpayers’ dollars and preventing contract fraud is in our nations’ interest and remains a priority.”
“HSI takes the illegal export of defense items very seriously, as they are crucial to the protection of our national security,” Andrew McLees, special agent in charge of HSI Newark, said. “We will continue to work with DCIS and other federal partners to ensure the safety of our U.S. military and homeland.”
According to documents filed in the case and statements made in Court:
Luba was the owner and general manager of Allied Components, which had contracts to supply the DoD with defense hardware items and spare parts. In July 2011, Luba signed a Military Critical Technical Data Agreement certifying that he acknowledged his responsibilities under applicable U.S. export control laws.
In October 2011, Luba began a business relationship with a company, One Source USA LLC. Luba used One Source USA as a source of defense hardware items and spare parts, which Allied Components would in turn provide to the DoD. Luba’s principle contact at One Source USA was Hannah Robert. Luba learned that Robert and One Source USA manufactured their defense hardware items and spare parts at a production facility in India. Luba admitted that he provided these foreign-made defense items to the DoD under contracts in which he had promised to supply American-made products.
On Feb. 7, 2012, Luba submitted a bid for a contract with the DoD to supply American-made wing pins for use in the F-15 combat aircraft and was awarded the contract. On April 2, 2012, Luba received an international Federal Express delivery of the wing pins from India at his Sparta residence. Despite knowing that the wing pins were made in India, Luba shipped these foreign-made wing-pins to the DoD and accepted payment for them.
On Oct. 10, 2012, the DoD contacted Luba with an urgent e-mail, reporting that the wing pins under this contract, and a second contract with Allied Components, were not of the hardness required under the contract. Luba e-mailed Robert requesting a certification of the materials used in the manufacture of the wing pins, as well as inspection records, to provide to the DoD. One Source USA sent Luba material certifications and inspection records for the wing pins, which listed only a New Jersey address for the company. On Oct. 12, 2012, Luba sent these false and misleading certifications and inspection records to a contracting officer at the DoD.
The U.S. Air Force ultimately grounded 47 F-15 fighter aircraft for inspection and repair as a result of the non-conforming wing pins, resulting in a loss to the government of about $166,000.Luba also admitted that he had a contact in India associated with One Source USA with whom he communicated in connection with Allied Components’ business with the DoD. Luba would e-mail this contact — identified in court papers only as “R.P.” — technical data for spare parts needed by the DoD so that R.P. and Robert could decide how much they would charge, and Luba could decide whether he could bid on the DoD contracts. The technical blueprints that Luba e-mailed to R.P. in India included technical data protected under the export control laws. Luba failed to obtain the necessary license from the U.S. Department of State in connection with these e-mails. These e-mails included a the technical drawing for a hardware item known as the “Torpedo Tube, Open Breech Door, Gagging Collar A,” for installation in a nuclear-powered military submarine.
Robert, the owner of One Source, was indicted on Oct. 10, 2013, by a federal grand jury on separate charges of conspiring to violate and violating the Arms Export Control Act. The indictment alleges that Robert used the password-protected website of a Camden County, N.J., church to transmit the blueprints for hundreds of defense hardware items to her conspirator in India, without the church’s knowledge. Robert’s arraignment on those charges will take place on Oct. 28, 2013, at 12:00 p.m., before Judge Pisano in Trenton. Robert is on home detention pending trial.
Count One of the information to which Luba pleaded guilty is punishable by a maximum penalty of five years in prison and a $250,000 fine. Count Two is punishable by a maximum penalty of 20 years in prison and a $1 million fine. As part of his plea agreement, Luba also agreed to pay back approximately $173,000 to the U.S. Department of Defense, which includes the cost of repair for the grounded F-15s. Sentencing is currently scheduled for Feb. 19, 2014. Luba was released on an unsecured appearance bond.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: John P. McDonald Esq., Somerville, N.J.Luba Information
Ocean County, N.J., Man Sentenced to 13 Years in Prison for Distributing Infant Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., man was sentenced today to 13 years in prison for using a computer in his home to distribute images of child pornography, including images of infants, U.S. Attorney Paul J. Fishman announced.
Arthur Frazer Jr., 35, of Lanoka Harbor, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
Frazer admitted distributing images of infant child pornography via email using a home computer in December 2010. He also admitted to possessing more than 600 images of child pornography on his computer and accessories, which were seized from his residence in February 2012. Frazer acknowledged that among the images of child pornography he possessed and distributed were images which depicted minors engaging in sexually explicit conduct with other minors and adults, including material portraying sadistic or masochistic conduct or other depictions of violence. Frazer was previously charged by complaint with distribution of child pornography in February 2012 and has been in custody since his arrest.
In addition to the prison term, Judge Pisano sentenced Frazer to seven years of supervised release and ordered him to pay restitution of $7,000.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing.
The government is represented by SpecialAssistant U.S. Attorney Joseph Muoio of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense Counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton
Oakland Man Pleads Guilty to Robbing and Attempting to Rob Multiple Banks in the East BayRead the Press Release
OAKLAND – Amanuel Moreno pleaded guilty in federal court in Oakland today to five counts of bank robbery and two counts of attempted bank robbery, announced United States Attorney Melinda Haag.
In pleading guilty, Moreno admitted to robbing and attempting to rob the following banks:
DATE
BANK
LOCATION
STOLEN AMOUNT
06/29/2012
Bank of the West
24299 Southland Drive, Hayward
$25
12/06/2012
Bank of the West
4900 Telegraph Avenue, Oakland
$506
12/06/2012
Chase Bank
2270 Otis Drive, Alameda
Attempt
12/13/2012
Wells Fargo Bank
950 South Holland Drive, Hayward
$1,541
12/18/2012
Chase Bank
32101 Union Landing, Union City
Attempt
12/18/2013
U.S. Bank
1585 East 14th Street, San Leandro
$724
01/16/2013
Bank of the West
4900 Telegraph Avenue, Oakland
$3,321
Moreno, 21, of Oakland, was arrested on January 25, 2013, by local law enforcement and remained in local custody pursuant to a probation violation. He has been in federal custody since July 5, 2013. The superseding indictment charging Moreno with five counts of bank robbery and two counts of attempted bank robbery was filed on August 1, 2013. Under the plea agreement, Moreno pleaded guilty to all seven counts.
Moreno’s sentencing hearing is scheduled for February 6, 2014, before The Honorable Yvonne Gonzalez Rogers, U.S. District Judge, in Oakland. The maximum statutory penalty for each count of bank robbery and attempted bank robbery, in violation of 18 U.S.C. § 2113(a), is 20 years in prison. However, any sentence following this conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Oakland Police Department, the Hayward Police Department, the Alameda Police Department, the Union City Police Department, and the San Leandro Police Department.
(Moreno superseding indictment )
New London Heroin Dealer Sentenced to 70 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ORLANDO SANTIAGO, 38, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 70 months of imprisonment, followed by four years of supervised release, for distributing heroin. He was also ordered to pay a $1,000 fine.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut.
According to court documents and statements made in court, on multiple occasions between October 2102 and February 2013, SANTIAGO was intercepted over a court-authorized wiretap ordering heroin from his drug supplier. Investigators also observed SANTIAGO after he traveled to a residence on Hawthorne Drive in New London to complete a number of these transactions.
SANTIAGO was arrested on April 3, 2013. On July 18, he pleaded guilty to one count of conspiracy to possess with the intent to distribute 100 grams or more of heroin.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant United States Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Jersey Man Used Counterfeit Amex Card for Retail Shopping SpreeRead the Press Release
PITTSBURGH - A resident of Oaklyn, New Jersey, has pleaded guilty in federal court to a charge of access device fraud, United States Attorney David J. Hickton announced today.
Raymond Hasaan Matthews, 37, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, it was represented to the court that Matthews used a counterfeit American Express credit card in November 2011 at Casa D'Oro Jewelers to purchase two watches totaling approximately $15,605.00, as well as at other stores such as Dicks Sporting Goods and Home Depot where he purchased additional merchandise.
Judge McVerry scheduled the sentencing for January 24, 2014, at 1:30 p.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
Naturalized U.S. Citizen Charged with Immigration FraudFor Failing to Disclose Terrorism ConvictionRead the Press Release
A naturalized United States citizen, who was convicted in Israel for participating in a terrorist bombing, was charged with immigration fraud, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was William Hayes, Acting Special Agent in Charge of Immigration and Customs Enforcement, Homeland Security Investigations.
Special agents arrested Rasmieh Yousef Odeh, 66, at a Chicago-area residence after the unsealing of an indictment filed in federal court in Detroit. The indictment charges procurement of citizenship unlawfully. The indictment alleges that Odeh was convicted in Israel for her role in the 1969 bombings of a supermarket and the British Consulate in Jerusalem, which were carried out on behalf of the Popular Front for the Liberation of Palestine ("PFLP"), a designated terrorist organization.
According to the indictment, Odeh and others placed multiple bombs at the British Consulate and in a supermarket. One of the bombs placed at the supermarket detonated, killing two and injuring others. A bomb placed at the Consulate caused structural damage to the facility. Odeh was sentenced by Israeli military authorities to life imprisonment, but was released after ten years as part of a prisoner exchange, and she then returned to the West Bank.
The indictment alleges that in 1995, she immigrated to the United States, and naturalized as a citizen in 2004. In her immigration documents filed in the United States, the indictment alleges, Odeh omitted her arrest, conviction and imprisonment overseas, which were material facts for the United States government in determining whether to grant her citizenship.
“The United States will never be a safe haven for individuals seeking to distance themselves from their pasts,” said William Hayes, acting special agent in charge for HSI Detroit. “When individuals lie on immigration documents, the system is severely undermined and the security of our nation is put at risk.”
"An individual convicted of a terrorist bombing would not be admitted to the United States if that information was known at the time of arrival," McQuade said. "Upon discovery that someone convicted of a terrorist attack is in the United States illegally, we will seek to use our criminal justice system to remove that individual."
If convicted of the charge, Odeh will be stripped of her United States citizenship. She also faces a maximum sentence of 10 years for naturalization fraud.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in court.
This case was investigated by special agents of Immigration and Customs Enforcement, Homeland Security Investigations with the assistance of the Federal Bureau of Investigation.
Indictment Document- pdf
More Than 30 People Charged with Heroin Trafficking, Many Affiliated with Lakeshore Boyz GangRead the Press Release
Criminal charges were filed against 32 people for their roles in a ring that sold heroin on the Northeast Side of Cleveland and in Euclid, law enforcement officials announced today.
The indictments and arrests were announced by Cuyahoga County Prosecutor Timothy McGinty, United States Attorney Steven M. Dettelbach, Cleveland Mayor Frank G. Jackson, Euclid Mayor Bill Cervenik, FBI Assistant Special Agent in Charge Todd Wickerham and Cleveland Police Chief Michael McGrath.
The following people are indicted in federal court: Derek A. Warner, 20, of Cleveland; Willie James Lavel Dunning, 29, of Cleveland and Nassor M. Williams, 28, of East Cleveland. All three men are charged with multiple counts of distribution of heroin. Warner and Dunning are also charged with being felons in possession of firearms.
The following people are indicted in Cuyahoga County Common Pleas Court: Timothy B. Bennett, 23, of Euclid; Frederick Brown, 30, of Euclid; Calvin Burks, 25, of Cleveland; Kevin Carswell, 26, of Cleveland; George D. Chambliss, 22, of Euclid; William George, Jr., 25, of Euclid; Cassius D. Foster, 28, of Cleveland; Monte Glenn, 29, of Cleveland; Curtis Harris IV, 21, of Euclid; Derek Dion Jackson, 19, of Euclid; Edward M. Jewell, Jr., 22, of Cleveland; Chas D. Johnson, 25, of Euclid; Davaunte M. Livest, 20, of Cleveland; Gino D. Martin, 25, of Cleveland; Brandon D. McBee, 23, of Cleveland; Sir Kimberly McGraw, 36, of Cleveland; Ramel K. McHaney, 28, of Cleveland; Montel Spencer, 28, of Cleveland; Luke O. Stewart, 20, of Cleveland; Mose D. Stewart, 25, of Warren; Maurice Thornton, 22, of Euclid; Louis R. Tinker, 30, of Cleveland; Michael D. Walker, 27, of Cleveland; Antonio Welch, 31, of Cleveland; Byron R. White, 31, of Cleveland; Ronald A. White, Jr., 24, of Shaker Heights; Maurice A. Wilson, 25, of Cleveland; Perez D. Worley, 22, of Cleveland and Julius L. Wright, 29, of East Cleveland.
Some of those indicted and still at large are affiliated with the Lakeshore Boyz street gang. Anyone with information about their whereabouts is encouraged to call the FBI at 216.522.1400.
According to law enforcement officials, the 29 defendants who were indicted on state charges belonged to a loosely aligned group of retail-level heroin and cocaine dealers who operated mostly on Cleveland’s far Northeast Side and in the city of Euclid.
The sales targeted in the state’s indictments took place between February and August of this year. Many of the sales took place within 1,000 feet of a school, an additional violation that elevates each offense one felony level and will add to the severity of any sentences.
In addition to the trafficking, defendant Brandon McBee, aka “Slim,” was indicted for felonious assault. On August 13, during an undercover heroin buy in Cleveland that was to culminate with McBee’s arrest, he attempted to flee and rammed his car into a police vehicle. McBee’s vehicle was badly damaged and he required EMS treatment.
“These are the retailers of death and destruction to neighborhoods and families,” McGinty said. “Everyone will be better off with them in prison.”
“The arrests of the 32 individuals is testament to our commitment to the residents of our communities to get drug dealers off of our streets. Along with our law enforcement partners and the community we will continue to do our best to stop drug traffickers from selling their poison in our neighborhoods,” McGrath said.
“The heroin sales that have taken place throughout our communities will not be tolerated,” Cervenik said. “We have heard the calls from our residents who have asked us to get rid of the drug dealers. Today, I'm happy to say that they won't be on our streets; instead, they'll be spending time in our jails.”
“These arrests are a fine example of how the FBI and our law enforcement partners will aggressively pursue and bring to justice those individuals who place our community at risk,” Wickerham said.
“This case is a demonstration of law enforcement working together to improve neighborhoods in Northeast Ohio,” Dettelbach said.
The cases are the result of a yearlong investigation by the Northern Ohio Law Enforcement Task Force, which is jointly led by the FBI and Cleveland Division of Police and includes investigators from the FBI, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Immigration and Customs Enforcement, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department.
The federal cases are being prosecuted by Assistant United States Attorneys Adam Hollinsgworth and Edward Feran, while the state cases are being prosecuted by Assistant Cuyahoga County Prosecutor Deb Naiman.
An indictment is only a charge and not evidence of guilt. A defendant is entitled to a fair trial at which time it will be the government’s burden to prove guilt beyond a reasonable doubt.
McAllen Area Ambulance Company Owner and Former Biller Indicted on Multiple Health Care CrimesRead the Press Release
McALLEN, Texas ‐ Frank Gonzalez, 30, and Graciela Escamilla, 51, both of Mission, have been charged in a federal indictment for their alleged roles in a scheme to defraud Medicare and Texas Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
The indictment, returned Tuesday, Oct. 15, 2013, was unsealed following their arrests on Friday, Oct. 18, at which time they made their initial appearance in federal court. Today, both appeared for an arraignment and detention hearing and were permitted release upon posting a $50,000 bond. Trial is set for Dec. 3, 2013.
Gonzalez, the owner of River Valley Transport (dba Med-Alert EMS), and Escamilla, the owner of RioPlex Billing Solution, are both charged with one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of aggravated identity theft. Gonzalez is also charged with one count of mail fraud.
The indictment alleges that from June 2007 to February 2011, Gonzalez engaged in and directed a scheme to submit false and fraudulent claims to Medicare and Texas Medicaid for ambulance transportation services in the McAllen area that were not provided. Escamilla, acting as a biller for Gonzalez and Med-Alert EMS, allegedly participated in the scheme to defraud and conspired with and aided Gonzalez in the submission of false and fraudulent billings and theft of the identity of a beneficiary.
According to allegations in the indictment, from June 2007 to February 2011, Gonzalez and Escamilla sent or caused others to send approximately 1,524 false and fraudulent claims totaling approximately $638,090 to Medicare and Texas Medicaid for ambulance transportation services of dialysis patients allegedly provided to Medicare and Texas Medicaid beneficiaries. The billings were allegedly false and fraudulent because none of the patients were transported by ambulance as claimed. The indictment further alleges that Medicare and Texas Medicaid paid out more than $335,000 on the false and fraudulent claims.
The indictment also alleges that to conceal their fraud, phony ambulance transportation records were created, signatures of individuals were forged on documents and Gonzalez and Escamilla illegally used the identity of a patient on their unlawful billings.
Conspiracy to commit health care fraud and each of the seven counts of health care fraud carry a maximum punishment of 10 years in federal prison, while mail fraud carries a possible 20-year sentence. Those charges also carry as possible punishment a $250,000 fine. If convicted of aggravated identity theft, both defendants also face a mandatory two‐year additional prison term which must be served consecutive to any other prison sentence imposed.
The investigation leading to the charges was conducted by the U.S. Department of Health and Human Services‐Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorneys Michael Day and Rex Beasley are prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.Manhattan U.S. Attorney Announces Charges Against Owners of Three Pharmacies, Pharmacists, and Others for Illegal Distribution of Millions of Dollars Worth of Oxycodone and Other PainkillersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Carl J. Kotowski, the Special Agent-in-Charge of the New Jersey Division of the U.S. Drug Enforcement Administration (“DEA”), today announced charges against nine individuals – PAUL WISEBERG, ROBERT KALABA, GERALD WISEBERG, STEPHANIE TOMASINI, LANA WISEBERG, EMMANUEL ANTONIO, and three pharmacists, DANIEL PODELL, HOWARD HIRSH, and LAWRENCE ZASLOW – for their alleged participation in a multi million-dollar oxycodone distribution ring. The alleged conspiracy involved the distribution of oxycodone and other controlled substances from three pharmacies in New York and New Jersey to customers in Florida who had no legitimate medical need for the drugs.
All the defendants were arrested this morning. KALABA, PODELL, HIRSH, and ZASLOW will be presented in Manhattan federal court later today. PAUL WISEBERG, GERALD WISEBERG, LANA WISEBERG, TOMASINI, and ANTONIO will appear in the Southern District of Florida later today. In addition to the arrests, multiple search warrants were executed and bank accounts restrained in connection with today’s charges.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these nine defendants, including three licensed pharmacists, created and operated a ring for the illegitimate distribution of prescription painkillers on the East Coast. Prescription drug abuse is our nation’s fastest-growing drug epidemic, and it is especially egregious when, as alleged in this Indictment, health care professionals perpetuate this danger to society.”
DEA Special Agent-in-Charge Carl J. Kotowski said: “Today, DEA and its law enforcement partners delivered another blow to alleged rogue pharmacists who choose to sacrifice their ethics for the almighty dollar. They will now have to deal with the consequences of their alleged decisions.”
According to the Indictment unsealed today in Manhattan federal court:
From at least November 2011 up to and including October 2013, PAUL WISEBERG, LANA WISEBERG, and KALABA, none of whom is a medical professional, purchased and operated pharmacies in New York and New Jersey (the “Pharmacies”), through which they ordered bulk quantities of highly addictive painkillers such as oxycodone, hydromorphone, and morphine sulfate. PAUL WISEBERG and KALABA then sold and distributed those pain killers via a mail order program at significantly marked-up prices to individuals, mostly in Florida, who had no legitimate medical need for the painkillers.
On average, the Pharmacies would charge from approximately $6 to $9 per pill of oxycodone. A 28-day prescription for oxycodone, which could contain approximately 158 pills, could cost a patient between $948 and $1,400. The same prescription at a retail pharmacy would typically cost less than $200.
PAUL WISEBERG, LANA WISEBERG, and KALABA are not registered with the DEA, and as such, could not themselves obtain oxycodone and other controlled substances from distributors. They relied on ANTONIO and PODELL to obtain hundreds of thousands of oxycodone pills and other controlled substances from distributors. PODELL, a licensed pharmacist, signed the necessary forms, and ANTONIO interacted with the distributors to arrange for the shipments of bulk quantities of painkillers to the Pharmacies.
GERALD WISEBERG and TOMASINI recruited pain clinics in Florida that had patients who were willing to pay substantially marked-up prices for the painkillers, and that would thereafter have the prescriptions sent directly to the Pharmacies. At one of the Florida pain clinics, patients were told to mail the prescriptions enclosing money orders and that no insurance or checks would be accepted. They were further instructed not to call or visit the Pharmacies.
PODELL, HIRSH, and ZASLOW, all licensed pharmacists, filled prescriptions for hundreds of thousands of highly addictive painkillers, knowing that the prescriptions were not issued for a legitimate medical purpose. The drugs were then mailed to the customers in Florida. In several instances, prescription drugs were mailed to addresses different from those set forth in the prescriptions. In addition, prescriptions for multiple people were also sometimes sent to the same address.
The Indictment also alleges that PAUL WISEBERG, KALABA, GERALD WISEBERG, TOMASINI, and ANTONIO conspired to launder the proceeds of the narcotics conspiracy by both concealing the nature and source of the proceeds, and promoting the distribution of the narcotics.
Mr. Bharara praised the investigative work of the DEA New Jersey Division’s Tactical Diversion Squad, which consists of DEA Agents, Diversion Investigators, and Task Force Officers from the Elizabeth Police Department, Essex County Sheriff’s Office, Toms River Police Department, Clinton Township Police Department, Marlboro Township Police Department, and West Orange Police Department, and the DEA New Jersey Division Diversion Group I. Mr. Bharara also thanked the Internal Revenue Service-Criminal Investigation, participating in the investigation as a member of the El Dorado Task Force, the DEA West Palm Beach Tactical Diversion Squad, the DEA Baltimore Tactical Diversion Squad, and the New Jersey Division of Consumer Affairs, which is part of the New Jersey Office of the Attorney General.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Carolina A. Fornos and Daniel Tehrani are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Paul Wiseberg et al. Indictment
Luzerne County Man Pleads Guilty to Receiving and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 38-year-old Luzerne County resident pleaded guilty today to receiving and distributing child pornography before U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney Peter J. Smith, the defendant, Michael Shaw, of Luzerne, Pennsylvania, admitted to using a computer to download and trade images of child pornography during 2012 through June 5, 2013.
The charge against Shaw resulted from an investigation by special agents and task force officers of the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, detectives from the Luzerne County District Attorney’s Office, and local police.
Shaw faces a mandatory minimum sentence of five years in prison and a possible maximum sentence of 20 years in prison, and a fine of $250,000. Judge Mannion ordered that Shaw remain in custody pending his sentencing.
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 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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Louisiana Sergeant Pleads Guilty to Assault of DetaineeRead the Press Release
The Justice Department announced that former Jefferson Parish, La. Sheriff’s Office Sergeant Gary J. Shine pleaded guilty today before Federal District Court Judge Ivan L.R. Lemelle to assaulting a detainee at the Jefferson Parish Correctional Center in Gretna, La., thereby depriving the detainee of his civil rights.
During the plea hearing, Shine admitted that on Oct. 21, 2012, while he was working as a sergeant, he struck an inmate with his knee, while the inmate’s hands were cuffed behind his back. Shine admitted that he also punched the inmate in the head. Shine’s actions caused bruising. Shine acknowledged that the inmate did not pose a threat to Shine or any other person, and that there was no legal justification for Shine to strike the inmate.
“It is a federal crime for law enforcement officers to willfully use excessive force,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “Today’s guilty plea demonstrates the Justice Department’s commitment to ensuring that official misconduct is addressed fully and fairly.”
“The vast majority of our law enforcement officials serve with honor and integrity,” said Kenneth Polite, U.S. Attorney for the Eastern District of Louisiana. “However, when someone abuses the power and privileges of his office, as Gary Shine did here, he will be held accountable.”
At sentencing, which is set for Jan. 22, 2014, Shine faces a statutory maximum sentence of 10 years of incarceration.
This case was investigated by the FBI and was prosecuted by Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Stephen C. Parker for the Eastern District of Louisiana.
Kideys Sentenced to 60 Months and 1.4 Million RestitutionRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
Ian T. Kideys, 49, of La Jolla, California, was sentenced by District Judge Robert L. Miller Jr. to 60 months of imprisonment, 3 years of supervised release and $1.4 million in restitution after pleading guilty to the felony offense of wire fraud.Kideys was also sentenced in a separate matter to 60 months of imprisonment after pleading guilty to bankruptcy fraud. Both sentences will run concurrently.According to documents filed in this case, from 2009 through 2010, in the wake of the real estate market collapse, Ian Kideys operated US Mortgage Bailout and US Mortgage Bailout.com, which sought out mortgage loan modification business from internet users. US Mortgage Bailout made a variety of false representations while obtaining customers, including that it had attorneys on staff, had helped thousands of homeowners avoid foreclosures, and succeeded in obtaining loan modifications for its customers 90 percent of the time. US Mortgage Bailout obtained some mortgage relief for its customers through fraudulent representations to lenders, but otherwise simply collected money — thousands of dollars from each customer. Each customer received a money-back guarantee; few got any money back. Mr. Kideys also defrauded creditors and the U.S. Trustee in his personal bankruptcy case by leading them to believe he had deposited $283,000 and concealing his receipt of $228,721.28. This case was the result of an investigation by the Department of Housing and Urban Development.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Jury Convicts Columbia Man of Illegally Possessing FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was convicted in federal court today of illegally possessing a firearm.
Victor Lee McNeary, Jr., 38, of Columbia, was found guilty of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that McNeary was in possession of a Smith & Wesson .380-caliber handgun on Dec. 11, 2011. According to court documents, Columbia police officers responded to a disturbance at Swan Lake Restaurant, 10 Southampton Drive, at approximately 1 a.m. on that day. An officer was informed that McNeary had been in possession of a handgun but had left the scene. Officers found McNeary at a McDonald’s restaurant and questioned him about the disturbance. When an officer searched McNeary and found the handgun in his coat pocket, McNeary was arrested.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McNeary has six prior felony convictions for robbery, two prior felony convictions for armed criminal action, two prior felony convictions for tampering and a prior felony conviction for attempted burglary.
According to a witness, McNeary started a fight inside the club and was escorted out. He started another fight in the parking lot that was broken up, and McNeary was told to leave. Instead, McNeary tried to run back into the club and tried to pick a fight with one of the security members. McNeary started walking towards his Cadillac that was parked across the street and continued to yell and scream, along with his girlfriend who was also yelling and screaming. As McNeary got closer to his car he started yelling that he was going to get a gun. McNeary entered the vehicle through the passenger side and pulled a small black semi-automatic handgun from the vehicle. McNeary left shortly after by himself and the police were called.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for more than four hours over two days before returning the guilty verdict to U.S. District Judge Gary A. Fenner, ending a trial that began Monday, Oct. 21, 2013.
Under federal statutes, McNeary is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life 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 Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Boone County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
Jerseyville Man Charged with Commercial Sex Trafficking of A ChildRead the Press Release
A Federal Grand Jury has returned a two-count indictment against Timothy S. Griesemer, 39, of Jerseyville, Illinois charging him with Commercial Sex Trafficking of a Child and Inducement of a Child to Engage in Prostitution, United States Attorney Stephen R. Wigginton announced today. The alleged violations took place on October 10, 2013 in Jersey County. Griesemer had been charged in a two-count federal Criminal Complaint for the alleged offenses on October 11, 2013. The Court has ordered that Griesemer be held without bond pending trial.
The offenses charged in the indictment allege that, on or about October 10, 2013, Griesemer attempted to recruit, induce, entice and obtain a child under the age of 14 years knowing that the person would be caused to be engaged in a commercial sex act.
A trial date is set for December 2, 2013. If convicted of Commercial Sex Trafficking of a Child, Griesemer faces a term in prison of not less than fifteen (15) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life. If convicted of Inducement of a Child to Engage in Prostitution, Griesemer faces a term in prison of not less than ten (10) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.”
This investigation was conducted by the Illinois State Police, the Jerseyville Police Department and the United States Secret Service Southern Illinois Cyber-Crime Unit. The case is assigned to Assistant United States Attorney Ali Summers.
International Wildlife Investigation results in conviction of Haines Big Game Guide for illegal take, false labeling and illegal importation of wildlifeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Haines, Alaska, resident was sentenced in federal court in Juneau on five felony Lacey Act counts involving illegal take of wildlife, false labeling, and illegal importation of wildlife.
Ronald L. Martin, 72, of Haines, Alaska, a big game guide in Haines for over 30 years, pled guilty and was sentenced yesterday before U.S. District Court Judge Timothy M. Burgess, after admitting to multiple illegal hunts, falsification of numerous documents related to those illegal hunts and the importation of illegal wildlife from Canada into the United States. Martin was sentenced to pay a $40,000 fine and was placed on probation for four years. During the term of probation, Martin cannot hunt in the United States and is banned from hunting anywhere in the world for two years. Additionally, the plea agreement bars Martin from providing any guiding related services as part of his federal probation conditions. Martin was also ordered to forfeit all illegal wildlife seized in the investigation and a 27’ enclosed trailer used in illegally importing wildlife into the U.S.
Prior to the defendant’s plea in federal court, Martin had pled and was sentenced in Alaska State court on one count of guiding clients for brown bear over bait, and one count of guiding clients over an unregistered bear bait site. As part of that State conviction, Martin was fined $40,000 with $30,000 suspended, and forfeited the following items to the State of Alaska: a PA-18 Piper Supercub airplane, a F250 Ford pickup truck, a Honda ATV – Foreman, and a Kimber .338 Caliber rifle with a Leopold Scope. Martin’s hunting license was also revoked until May 2016 and he is prohibited from guiding, outfitting, or transporting hunters, to include not accompanying or assisting hunters in the field. Martin is further prohibited from acting as consultant, expediting, booking, or renting hunting equipment, and cannot apply for a hunting license until 2018. Martin was also required to surrender his guide license for life.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the federal case, the case arose from a joint United States-Canadian wildlife investigation called “Operation Bruin.” The investigation documented 10 illegal brown bear hunts, three illegal black bear hunts, and four illegal mountain goat hunts totaling a value of approximately $189,000. The violations which occurred during the hunts involved Martin allowing his Canadian and U.S. clients to take brown bears over bait, hunting without the required licenses or tags, and the failure to have a licensed guide with the non-resident alien clients during guided hunts.
The investigation revealed that Martin’s clients and Martin would file false documents to conceal the illegal nature of the guided hunts and would then smuggle the wildlife from the U.S. to Canada, all of which violated the Lacey Act and Canada’s Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA). The investigation showed the violations occurred between May 2002 through November 2011, in and around the Haines, Alaska area.
The investigation also documented that Martin illegally imported Dall sheep from Yukon, Canada, into the U.S. during the fall of 2011 by failing to obtain a Yukon Wildlife Export permit and illegally smuggled the sheep horns from Canada into the U.S. by concealing the horns and meat in his trailer.
Recently in Operation Bruin, Haines big game guide John Katzeek and three of his Canadian clients were indicted in U.S. District Court for the District of Alaska. The four individuals were charged with Lacey Act, conspiracy and smuggling violations related to the illegal take, commercialization and smuggling of Alaska big game animals.
Starting in November 2012, Environment Canada and Canadian Crown prosecutors in Alberta, and Yukon Territory, Canada, charged approximately 17 subjects with 55 violations under the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. These charges pertained to the illegal guided hunts noted previously, and the illegal import of unlawful wildlife from the U.S. into Canada.On March 22, 2013, Lyle Whitmarsh, a client of Martin, was convicted in Alberta provincial court of one count of illegally possessing and importing a brown bear into Canada. Whitmarsh was sentenced to pay a penalty of $4,000 for violating section 6(1) of the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. In addition to the $4,000 penalty, Lyle Whitmarsh is prohibited for two years of importing wildlife into Canada and is also required to forfeit the brown bear hide and skull seized during the investigation. $3,600 of the penalty will go into the Environmental Damages Fund (EDF).
On October 16, 2013, John (Jack) Whitmarsh, brother of Lyle and a client of Martin’s, was also convicted in Canada of two counts of illegally possessing and importing into Canada a brown bear. John Whitmarsh was sentenced to pay a penalty of $15,000 for violating section 6(1) and 8(a) of the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. In addition to the $15,000 penalty, John Whitmarsh is prohibited for two years of importing wildlife into Canada and traveling outside of Alberta and Canada for the purposes of hunting. He is also required to forfeit the brown bear hide and skull seized during the investigation. $13,500 of the penalty will go into the Environmental Damages Fund (EDF).
Some trial dates have been set for the remaining 15 Canadian defendants charged under Canadian law.
Stanley Pruszenski, the U.S. Fish & Wildlife Service Special Agent in Charge of the Alaska Region, congratulates all the agencies involved in the successful investigation and prosecution of the large scale abuses of U.S. and international wildlife law in this case. The Fish and Wildlife Service is committed to protecting America's wildlife resources that are at risk from illegal take, commercialization, and smuggling. This case is an excellent example of how these types of investigations and prosecutions can only be successfully accomplished with cooperation and close working relationships between our U.S. and international partners.Ms. Loeffler commends the U.S. Fish and Wildlife Service, Alaska Wildlife Troopers; Environment Canada Wildlife Enforcement Directorate; Yukon Conservation Officer Service; Alberta Fish and Wildlife; Parks Canada; British Columbia Conservation Officer Service and the Public Prosecution Service of Canada for their investigative work in the prosecution of Martin.
Indictment: Wichita Man Transported Child Pornography Across State LinesRead the Press Release
KANSAS CITY, KAN. - A Wichita truck driver has been charged in federal court with transporting child pornography across state lines, U.S. Attorney Barry Grissom said today.
Joshua David Bellah, 40, Wichita, Kan., is charged with one count of interstate transportation of child pornography. The crime is alleged to have occurred Oct. 11, 2013, when he drove from Oklahoma to Kansas with two laptop computers containing child pornography.
Bellah initially was charged in a criminal complaint filed Oct. 15 in U.S. District Court. An affidavit supporting the complaint alleged the investigation began when Immigration and Customs Enforcement’s Homeland Security Investigations received information from the National Center for Missing and Exploited Children, the Dallas Police Department, the FBI and HSI. Investigators learned that Bellah had created various email accounts using free services including Yahoo. He used one or more email accounts to exchange and distribute child pornography for a brief time before abandoning the accounts and creating a new one for the same purpose.On Oct. 11, 2013, investigators executed a search warrant at his home and seized three laptops, a smartphone, two USB drives and several disks. They found child pornography depicting victims who appeared to be as young as five years old.
If convicted, he faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000. Immigration and Customs Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER INDICTMENTS
Hunter R. Wheeler, 23, who is in federal custody, is charged with three counts of distributing methamphetamine, one count of possession with intent to distribute methamphetamine, and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to haveoccurred in September and October 2013, in Douglas County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $8 million on each distribution count, a penalty of not less than 10 years and not more than life on the charge of possession with intent to distribute more than 50 grams of methamphetamine, and a penalty of not less than five years on the charge of unlawful possession of a firearm. The Lawrence Police Department investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Michael A. Rehard, 25, is charged with one count of distributing methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in July and October 2013 in Overland Park, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million on the distribution count and on the possession count, and a penalty of not less than five years and not more than life and a fine up to $250,000 on the firearm charge. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Abelardo Fernandez-Casas, 38, Pratt, Kan., is charged with one count of possession of an unlawfully obtained Social Security card, one count of using a false Social Security number, and one count of making false statements in order to obtain a loan from the People’s Bank of Pratt, Kan. The crimes are alleged to have occurred in 2009 and 2012 in Pratt, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the charge of possessing an unlawfully obtained Social Security card, a maximum penalty of five years and a fine up to $250,000 on the charge of using a false Social Security number, and a maximum penalty of 30 years and a fine up to $1 million on the charge of making false statements to obtain a loan. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Raul Marquez-Ramirez-Ramirez, 57, Wichita, Kan.; Angel L. Lopez, 30, Wichita, Kan.; Emma Velo, 32, Wichita, Kan.; and Tyler Sims, 30, Wichita, Kan., are charged with one count of conspiracy to distribute methamphetamine. In addition, Marquez-Ramirez is charged with three counts of distributing methamphetamine, one count of possession with intent to distribute marijuana and one count of unlawful possession of a firearm in furtherance of drug trafficking; Lopez is charged with three counts of distributing methamphetamine; and Velo is charged with one count of possession with intent to distribute marijuana and one count of unlawful possession of a firearm in furtherance of drug trafficking.
Upon conviction, the crimes carry the following penalties:
Conspiracy: Not less than 10 years and not more than life and a fine up to $10 million.
Distribution of more than 50 grams of methamphetamine: Not less than 10 years and not more than life and a fine up to $10 million.
Distribution of more than five grams of methamphetamine: Not less than five years and not more than 40 years and a fine up to $5 million on each count.
Possession with intent to distribute more than five grams of methamphetamine: Not less than five years and not more than 40 years and a fine up to $5 million on each count.
Possession with intent to distribute marijuana: Not less than five years and not more than 40 years and a fine up to $5 million on each count.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
The Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Kyle Lennin, 28, who is in custody in the Shawnee County Jail, is charged with one count of conspiracy to distribute methamphetamine and one count of threatening a prospective federal witness. The conspiracy is alleged to have taken place from February to March 2012 in Saline County, Kan., and the threat is alleged to have occurred Aug. 29, 2013.
If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million on the conspiracy count, and a penalty of not less than 20 years and a fine up to $250,000 on the charge of threatening a prospective witness. The Salina Police Department investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Jason A. Young, 28, is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking, one count of possession with intent to distribute marijuana, and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred July 27, 2013, in Kansas City, Kan.
If convicted, he faces a penalty of not less than five years in federal prison and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking, a maximum penalty of five years and a fine up to $250,000 on the marijuana charge, and a maximum penalty of 10 years and a fine up to $250,000 on the remaining firearm charge.
The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Indictment Charges Cop and Former Cop in Civil Rights CaseRead the Press Release
An indictment, unsealed today, charges former Philadelphia Police Officer Joseph Harvey, 39, of Philadelphia, PA, with deprivation of civil rights under color of law, and Philadelphia Police Officer Sean Cahill, 34, of Philadelphia, PA, with making a material false statement, announced United States Attorney Zane David Memeger. Both defendants were arrested this morning.
According to the indictment, Harvey, while acting under color of law as a police officer with the Philadelphia Police Department, instructed M.C. to remove all of her clothing, thereby willfully depriving M.C. of the right, secured and protected by the United States Constitution and the law of the United States, to be free from an unreasonable seizure by a police officer. The indictment further alleges that defendant Cahill falsely claimed that he was with Harvey, and that Harvey was never alone with M.C. at the time that M.C. alleged she was instructed by Harvey to undress.
If convicted, Harvey faces a maximum term of one year in prison, a $100,000 fine, and a $100 special assessment; Cahill faces a maximum term of five years in prison, a $250,000 fine, up to three years’ supervised release, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department Internal Affairs Bureau, with assistance from the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Michelle L. Morgan, and Trial Attorney Sheldon Beer of the United States Department of Justice, Civil Rights Division, Criminal Section.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Harrisburg Man Charged Federally for Attempting to Arrange Son’s Escape from PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment today charging William Trickett Smith, Sr., age 76, with attempting to arrange a prison escape, lying to federal agents about it, and trying to persuade someone else to lie to federal agents.
According to United States Attorney Peter J. Smith, the charges stem from events surrounding the arrest and extradition of the defendant’s son, William Trickett Smith, II. In 2007, Smith II was arrested in Pennsylvania, and charged in Peru for the murder of his wife. Peruvian authorities sought his extradition.
The indictment alleges that during 2009 and 2010, Smith Sr., Harrisburg, devised a plan to have his son escape from custody after Smith Sr. filed a false private criminal complaint by paying off a magisterial district justice to schedule a hearing that would require Smith II to be transported and paying off a constable who would be picked to transport him. The Indictment alleges that when the plan failed because the criminal complaint was not approved by the district attorney, Smith Sr. then allegedly devised another plan for his son’s escape by paying off a prison guard. That plan also failed because Smith II was moved to a different prison. The indictment alleges that in 2010, Smith Sr. lied about his plans and actions when questioned by the Federal Bureau of Investigation and also tried to persuade another individual to lie to the FBI about Smith Sr.’s actions.
The case was investigated by the Federal Bureau of Investigation, the United States Marshals Service, the Dauphin County District Attorney’s Office, the Pennsylvania Department of Corrections-Office of Professional Responsibility and the Perry County Prison. The case is being prosecuted by Assistant U.S. Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Group of Five Charged in $200 Million Tax Fraud SchemeRead the Press Release
PHILADELPHIA – A superseding indictment, charging five people in a complex, multi-million dollar tax fraud scheme, was unsealed today following the arrest of one of the defendants. The indictment alleges that the conspirators caused more than $200 million in losses to the United States through a massive scheme. Named in the 49-count indictment are: Samyak Veera, 39, of Singapore, Aviel Faliks, 39, of New York City, Chandrakant Shah, 65, of India, Donald Stevenson, 56, of North Palm Beach, Florida, and Eric Merl, 61, address unknown. Faliks was arrested this morning in New York City. John Ivsan, 44, Andrew Ahn, 39, and Helen Del Bove, 53, have pleaded guilty in related cases and are awaiting sentencing. The indictment and informations filed against these defendants were also unsealed today. The charges were announced by United States Attorney Zane David Memeger, Assistant Attorney General for the Department of Justice Tax Division Kathryn Keneally, and Chief of the Internal Revenue Service Criminal Investigations Richard Weber.
The defendants named in the superseding indictment are charged with conspiracy to defraud the United States, conspiracy to commit wire fraud, and corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws. In addition to those charges, Veera is also charged with 11 counts of tax evasion and 19 counts of wire fraud; Faliks is also charged with five counts of tax evasion and eight counts of wire fraud; Shah is also charged with 11 counts of tax evasion; and Merl is also charged with four counts of making materially false statements to government officials. The indictment contains a notice of forfeiture for up to $150 million from Veera and Faliks.
Between at least 2003 and 2011, the defendants allegedly designed and implemented a scheme to evade more than $200 million in corporate taxes by purchasing companies with taxable gains and using fraudulent losses to wipe out the gains. The defendants then allegedly pocketed the corporations’ cash, filed fraudulent returns, and, in some instances, fraudulently sought and obtained refunds from the IRS for prior years. According to the superseding indictment, the defendants implemented their fraud scheme through four basic steps: (1) initial purchasers - including MidCoast Financial Inc., a company owned by Chandrakant Shah and operated by Samyak Veera - purchased target corporations with cash assets and large anticipated corporate income tax liabilities; (2) the initial purchasers next transferred these target corporations to straw buyers controlled on paper by Andrew Ahn and Aviel Faliks; (3) the defendants then evaded the corporations' income taxes through the use of fraudulent transactions designed to create the illusion that the corporations had incurred capital and ordinary losses; and (4) finally, the defendants distributed proceeds of the scheme through disguised means.
Defendant Donald Stevenson was the head of the acquisition team at MidCoast Financial and its successor and allegedly led the effort to identify ripe targets for the conspiracy. Helen Del Bove provided bookkeeping services to Veera, Ahn, and Faliks, tracking the target corporations purchased, the gains that needed to be eliminated, and the losses used to wipe them out. She allegedly provided this information to a tax return preparer so that the false returns could be prepared and filed. It is further alleged that Del Bove attempted to destroy key evidence after the IRS began to investigate the transactions. Eric Merl and John Ivsan both served as counsel to Veera and MidCoast Financial and other entities used to implement the fraud. Later, after the IRS began to look into MidCoast Financial's transactions, it is alleged that Merl and Stevenson started and operated Private Capital Resource Group Inc. (PCRG), a new company to carry on the scheme. Aviel Faliks allegedly served as the straw buyer of the target corporations identified by PCRG, but he also played an instrumental role in setting up the fraudulent options transactions used to wipe out the corporations' gains.
If convicted of all charges, the sentencing guidelines call for a minimum sentence of at least 188 months imprisonment for Veera, Shah, and Stevenson, at least 151 months for Faliks, and at least 121 months for Merl. For Ivsan, Ahn, and Del Bove, the maximum years of imprisonment are ten years, eight years, and three years, respectively.
The case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Patrick J. Murray and Nancy E. Potts, and Tax Division Trial Attorney Andrew P. Young.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Goodwin Urges Public to Continue Prescription Drug Fight in Seventh Federal Takeback EventRead the Press Release
Latest installment of highly successful take-back initiative set for Saturday, October 26, 10 a.m. to 2 p.m.
CHARLESTON, W.VA. - U.S. Attorney Booth Goodwin today asked West Virginians to continue their overwhelming support for the federal Prescription Drug Take-Back initiative, which so far has removed more than 11 tons of unwanted prescription drugs from homes and medicine cabinets in the Mountain State, and more than 1,409 tons nationwide. The seventh national Prescription Drug Take-Back event is scheduled for Saturday, October 26, 2013, from 10 a.m. to 2 p.m. Begun in September 2010 as a way to fight the scourge of prescription drug abuse in West Virginia and around the country, the Prescription Drug Take-Back program is organized by federal law enforcement authorities in cooperation with state and local police departments in all 50 states.
With the latest installment of the take-back initiative set to kick off, U.S. Attorney Goodwin looked back at the progress made over the past three years. “When we started this event in 2010, we didn’t know what to expect,” Goodwin said. “We saw the need for a place to dispose of unwanted prescription drugs, but the response was hard to predict. In the three years since, West Virginians and Americans have stepped up beyond our wildest expectations. Through these take-back events, tens of thousands of West Virginians are doing their part to fight prescription drug abuse---our state’s worst crime problem.”
“From zero to more than 1,409 tons nationwide in three years is a remarkable accomplishment,” Goodwin continued. “Those of us who were there at the beginning are thrilled by how far this has come, and we welcome the many public officials who’ve decided they want to be part of the success.”
“I’ve prosecuted over 250 drug dealers since taking office,” Goodwin said. “But I’ve always said we can’t simply prosecute our way out of this problem. It’s essential to stop people from becoming addicted in the first place, and addicts often get started with pills that have been forgotten in a friend or relative’s medicine cabinet.”
The Prescription Drug Take-Back initiative is coordinated by the United States Drug Enforcement Administration, an agency of the United States Department of Justice.
Saturday from 10 a.m. to 2 p.m., West Virginians can drop off their unwanted prescription drugs at more than 130 drop-off locations statewide, including police stations, designated shopping centers, and local pharmacies. At all locations, drop-offs are accepted with no questions asked. For a full list of take-back locations, go to www.dea.gov.
Fourteen Indicted for Deliberately Defrauding Federal Unemployment Insurance ProgramRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that fourteen individuals were indicted on October 23, 2013, by a federal Grand Jury. The indictments charge each person with, among other things, Embezzling Public Funds, namely unemployment insurance payments administered by the Illinois and Missouri Departments of Employment Security. The total amount of fraudulent overpayments alleged in the 14 indictments is $351,005.87.
“Cheating on unemployment compensation is a crime," said United States Attorney Wigginton. "Those who defraud the unemployment insurance program undermine support for an important public program and hurt and insult every law-abiding citizen of Southern Illinois. No person is above the law, thus I will continue my efforts to see that persons who defraud the United States of America, and all of us, are made to face justice."
The individuals charged include:
Elizabeth Asbury, 41, of Hartford
Clarence Budde III, 41, of New Baden
Gary Cuddy, 31, of Olney
Sheila Davison, 45, of Cahokia
Steven Gordon, 39, of Effingham
Michael Hill, 48, of East St. Louis
Trudie Lindsey, 56, of East St. Louis
Kenneth Loving, 42, of East St. Louis
Melonetria McCallum, 37, of O’Fallon
Robert Pickett, 43, of Venice
Quintin Redd, 46, of Fairview Heights
Regina Skjerseth, 43, of Sage Creek
Rickey Watson, 48, of Belleville
Nicholas Zezoff, 41, of Granite CityThese cases were investigated by the U.S. Department of Labor and the Illinois Department of Employment Security and the Missouri Division of Employment Security, and are being prosecuted by Special Assistant United States Attorney Stuart J. Zander.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Founder and Leader of SSB Bloods Gang Pleads Guilty to Racketeering and Is Sentenced to 30 Years in PrisonRead the Press Release
Founded the Gang and Directed Gang Activities While Incarcerated
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Andre Ricardo Roach, a/k/a “Squeaky,” “Redrum,” and “Rum,” age 35, of Prince George’s County, Maryland, today to 30 years in prison, followed by three years of supervised release, after Roach pleaded guilty to conspiracy to participate in a racketeering enterprise, the South Side Brims (SSB) Bloods gang. Roach admits that in 2005, he founded the SSB gang, which operates from Western Maryland to the lower Eastern Shore. This case is the culmination of a long-term joint investigation by federal, state and local authorities throughout Maryland.
The guilty plea and sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Secretary Gary Maynard of the Maryland Department of Public Safety and Correctional Services; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Frederick County Sheriff Charles A. “Chuck” Jenkins; Captain Thomas J. Ledwell, Chief of the Frederick Police Department; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief William J. McMahon of the Howard County Police Department; Anne Arundel County Police Chief Kevin Davis; Annapolis Police Chief Michael A. Pristoop; Chief Ross C. Buzzuro of the Ocean City Police Department; Chief Michael Phillips of the Fruitland Police Department; Garrett County Sheriff Robert E. Corley; Allegany County Sheriff Craig Robertson; Cumberland Police Chief Charles H. Hinnant; Washington County Sheriff Douglas Mullendore; Dorchester County Sheriff James W. Phillips; Queen Anne’s County Sheriff R. Gary Hofmann III; Wicomico County Sheriff Michael A. Lewis; Worcester County Sheriff Reggie T. Mason, Sr.; Salisbury Police Chief Barbara Duncan; Chief Mark A. Magaw of the Prince George’s County Police Department; Wicomico County State’s Attorney Matthew Maciarello; Frederick County State’s Attorney J. Charles Smith; Baltimore City State’s Attorney Gregg L. Bernstein; Washington County State’s Attorney Charles P. Strong, Jr.; Garrett County State’s Attorney Lisa Thayer Welch; Allegany County State’s Attorney Michael O. Twigg; and Queen Anne’s County State’s Attorney Lance G. Richardson.
According to Roach’s plea agreement, in 2005, a member of a Bloods subgroup or set called the Fruit Town Brims, was incarcerated in the Maryland Division of Corrections. This Bloods member recruited Roach to join this sub-set. Roach, who was also incarcerated, moved up in the gang hierarchy and in June 2005, was granted permission to start a new set in Maryland called the South Side Brims. It was common for Roach to send out open letters to the entire set through Monique Marie Hagler, a/k/a “Platinum,” “Plat,” and “Diamond,” who operated as the First Lady of the SSBs Enterprise in Maryland. In these written communications, Roach directed the activities of the SSBs Enterprise and served as the leader/organizer and founder of the Enterprise.As First Lady, Hagler took direction from Roach and sent out orders and commands to the SSB members. Hagler operated as the official record keeper, and maintained and disseminated lists identifying members of the organization. During the course of the conspiracy, Roach coordinated regularly with Hagler and others to maintain the illegal activities, promote the business of the enterprise and maintain discipline and order within the SSBs. For example, Hagler sent communications to gang members demanding payment of dues used to support members of the SSB enterprise and their activities, including criminal defense lawyers, firearms, bail and to assist gang members recently released from prison to help them get on their feet.
Roach admitted that during the course of the conspiracy he and other SSBs conspired to distribute controlled substances, including cocaine, heroin, marijuana, ecstacy, and diverted pills, to customers of the SSBs in Frederick County, Howard County, Anne Arundel County and Queen Anne County, and other locations in Maryland. Roach and his co-conspirators used cellular telephones to conduct the narcotics trafficking. The amount of controlled substances reasonably foreseeable to Roach during the conspiracy is between five and 15 kilograms of cocaine.
During the course of the conspiracy, Roach, along with other SSB members and associates, participated in the planning and commission of several violent acts in furtherance of the SSBs enterprise, including a murder, several attempted murders, home invasion robberies, witness intimidation, violence against gang members who violated gang rules and other acts of violence.
Thirty four SSB members and associates, including Roach and Monique Hagler, age 29, of Suitland, Maryland, have pleaded guilty to their roles in the conspiracy. Hagler is awaiting sentencing, but 30 defendants have been sentenced, with sentences ranging from time served to 30 years in prison.
United States Attorney Rosenstein praised the FBI; Maryland State Police; ATF; Delaware State Police; Baltimore City, Baltimore County, Cumberland, Frederick, Howard County, Prince George’s County, Salisbury, Fruitland, Annapolis, Anne Arundel County and Ocean City Police Departments; Allegany County Sheriff’s Office; Allegany County Criminal Investigations; the Frederick, Washington, Queen Anne’s, Dorchester, Wicomico and Worcester County Sheriffs Offices; and the State’s Attorney’s Offices of Baltimore City, Frederick, Wicomico, Washington, Allegany, Garrett and Queen Anne’s Counties for their investigation of this Organized Crime Drug Enforcement Task Force case. Mr. Rosenstein also recognized the Maryland Department of Public Safety and Correctional Services and the Drug Enforcement Administration for their assistance in the investigation.Mr. Rosenstein thanked Assistant U.S. Attorneys Andrea L. Smith and A. David Copperthite, who are prosecuting this case.
Former Treasurer of Catholic Charity Charged in Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the arrest of Hershel F. Smith, Jr., 80, of Ponte Vedra, Florida. Smith is charged with devising a scheme to defraud a charity from 2005 to 2012. The indictment charges nine counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Smith made his initial appearance yesterday before U.S. Magistrate Judge John O’Sullivan.
According to the indictment, Smith was the Treasurer of Malta Projects of Southeastern Florida, Inc., (Malta Projects), a nonprofit corporation associated with the Order of Malta, a lay religious order of the Roman Catholic Church. Among other things, the Order of Malta and its associated organizations administer and fund charitable activities to serve the sick and the poor.
According to the indictment, Smith devised a scheme to unlawfully enrich himself by making material omissions and materially false and fraudulent representations regarding monies Smith withdrew from the Malta Projects bank account for his own benefit and for unauthorized purposes. Smith was an authorized signer of the Malta Projects bank account and also received the bank statements. According to the indictment, from December 2, 2005 through September 18, 2012, Smith withdrew money, through interstate wire transfers, interstate electronic payments and other means, from the Malta Projects bank account for purposes unrelated to Malta Projects and for his personal benefit. Smith concealed his conduct by providing false financial summaries to Malta Projects as well as to the Order of Malta, American Association (American Association). Smith also submitted altered bank statements to the American Association.
If convicted, Smith faces a maximum sentence of 20 years in prison on each count.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
An indictment is only an accusation and defendants are presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former St. Tammany Coroner Peter Galvan Pleads Guilty to Conspiracy to Steal Funds from Coroner's OfficeRead the Press Release
PETER GALVAN, 54, a resident of St. Tammany Parish, and the former St. Tammany Parish Coroner, pled guilty today to one count of conspiring to steal government funds from the St. Tammany Parish Coroner’s Office, announced U.S. Attorney Kenneth Allen Polite, Jr.
U.S. Attorney Polite stated: “Today’s guilty plea ensures that Peter Galvan will be punished for abusing the public trust for his personal gain.”
Special Agent in Charge of the Federal Bureau of Investigation, New Orleans Field Office, Michael Anderson stated: "This conviction clearly highlights the significant importance of the continuous engagement of the local citizenry to support law enforcement's priority mission to address fraud, corruption and betrayals of public trust."
Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Gabriel Grchan stated: “We have worked hard with our federal partners to obtain the guilty plea entered today by Peter Galvan. IRS Criminal Investigation is committed to pursuing the prosecution of public officers who misuse taxpayer dollars for their personal gain.”
According to the Factual Basis, the Bill of Information to which GALVAN pled guilty, and other documents filed in federal court:
GALVAN, a former elected official, earned annual or sick leave to which he was not entitled. However, with the assistance of another coroner’s office employee, GALVAN received yearly payments for unused annual and sick leave, totaling $111,376 over a five year period.
GALVAN, as a physician, individually contracted with the City of Slidell, Louisiana to provide medical services for inmates of the Slidell City Jail. The contract was not with the St. Tammany Parish Coroner’s Office, but with GALVAN personally. However, GALVAN conspired with another individual employed with the St. Tammany Parish Coroner’s Office to service this contract while the other individual was supposed to be working for and was being paid by the St. Tammany Parish Coroner’s Office. The Coroner’s Office employee was paid at least $50,000 in public funds to fulfill GALVAN’s personal contract.
Additionally, GALVAN conspired with another employee of the coroner’s office to purchase a $9,170 generator for GALVAN’s personal vessel, a life raft and life jackets for his personal vessel valued at $4,841, and a Global Positioning Satellite Receiver for his personal use valued at $2,395, all with St. Tammany Parish Coroner’s Office funds.
Finally, GALVAN used his St. Tammany Parish Coroner’s Office credit card to make purchases of meals and other personal items with his public credit card totaling $15,606 which were unrelated to the office’s business.
GALVAN faces a statutory maximum of five years in jail, a $250,000 fine and restitution of twice his gain or twice the victims’ loss, whichever is greater. He is scheduled for sentencing on January 29, 2014 by U.S. District Court Judge Susie Morgan.
The investigation of the St. Tammany Coroner’s Office is continuing.
Mr. Polite praised the investigative work of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, and the State of Louisiana Legislative Auditor.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Carter K. D. Guice, Jr. and Chandra Menon are in charge of the prosecution.
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Former Sheriff’s Deputies Head to Federal PrisonRead the Press Release
McALLEN, Texas – Two former deputy sheriffs from Duval County have been sentenced to prison for conspiracy to distribute cocaine, announced United States Attorney Kenneth Magidson. Ruben Silva, 35, of Freer, and Victor Carrillo, 28, of Benavides, pleaded guilty Aug. 30, 2012.
Today, U.S. District Judge Micaela Alvarez sentenced Silva and Carillo to respective terms of 105 and 70 months in federal prison. They were each also ordered to serve three years of supervised release following completion of their prison terms. Silva was also ordered to pay a $5,000 fine. In handing down the sentences, the court noted their special status as police officers in uniform and carrying their duty weapons in announcing a higher sentence.
At the plea hearings, Silva admitted he conspired with Carillo, Jerry Tovar and Jose Luis Tovar to distribute 10 kilograms of cocaine which they would steal from a drug supplier. Both Silva and Carrillo participated in the conspiracy by performing a “pretend” traffic stop using their official Duval County Sheriff’s vehicles and while in uniform, making the owner of the narcotics believe law enforcement had seized the drugs. Silva received $5,000 as payment for his role in the drug distribution conspiracy and Carrillo received $1,000 from that payment. Following the “pretend” traffic stop, Jerry Tovar received approximately six kilograms of cocaine at his residence in Mission from a source working with the Drug Enforcement Administration (DEA).
During the investigation, federal and state investigative agents discovered the Tovar criminal organization, led by Jose Luis Tovar.
He was negotiating with who he believed were illegal drug traffickers to transport large amounts of narcotics, when in reality these “drug traffickers” were undercover federal agents. During the ongoing drug trafficking negotiations, Jose Luis Tovar brokered a deal for these “drug traffickers” to illegally purchase six firearms through the Tovar criminal organization. These firearms included two uzi type weapons and an assault rifle capable of accepting a 100-round magazine. Both brothers were previously convicted felons who were prohibited from possessing firearms.
Jose Luis Tovar was sentenced as head of the Tovar criminal organization brokering the gun trafficking. Jerry Tovar was sentenced for his role in gun trafficking and for a separate conspiracy to distribute more than five kilograms of cocaine. Jerry Tovar and Jose Luis Tovar, both of Mission, were sentenced in December 2012 to 210 and 135 months, respectively. Jose Luis Tovar was also ordered to pay $20,000 in fines.
Previously released on bond, Silva was taken into custody following the sentencing today where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future and Carillo was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is being jointly investigated by the DEA, Texas Rangers, Texas Department of Public Safety, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Border Patrol. Assistant U.S. Attorney (AUSA) Jason C. Honeycutt and former Southern District of Texas AUSA Cory J.H. Crenshaw prosecuted the case.
Former Henderson Teacher Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 43-year-old Henderson, Texas, man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Brent Malone, a former Henderson high school English teacher, pleaded guilty on June 11, 2013 to possession of child pornography and was sentenced to 121 months in federal prison today by U.S. District Judge Leonard E. Davis.According to information presented in court, on Jan. 10, 2013, federal and local law enforcement agents executed a search warrant at Malone’s residence in Henderson, Texas. A laptop computer and two DVDs were seized during the search and found to contain more than 1,200 images and 40 videos of child pornography. Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct. Malone was indicted by a federal grand jury on Mar. 27, 2013 and charged with child pornography violations.
This case was investigated by United States Secret Service and the Longview Police Department and prosecuted by Assistant U.S. Attorney Gregg A. Marchessault.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Former Employee of Amherst Technology Firm Indicted for Stealing Trade SecretsRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has filed a seven-count indictment charging Yi Liu, 40, of Lexington, South Carolina, with stealing trade secrets from Sprung-brett RDI, a technology firm located in the University of Buffalo’s Technology Incubator on Sweet Home Road in Amherst. Liu was also charged with unlawfully accessing a Sprung-brett computer, the interstate transportation of the stolen trade secrets and wire fraud for attempting to obtain pay from Sprung-brett to which he was not entitled.
The charges carry a maximum penalty of 60 years in prison, a $3,500,000 fine or both.
Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that according to the indictment, Liu, who holds a Ph.D.in mechanical engineering from the University of Waterloo (Ontario), left Sprung-brett’s employ in February of 2011. For seven months following his departure, the defendant retained the laptop computer that Sprung-brett had provided to him while he was employed by the company. During this time, Liu allegedly downloaded electronic files onto an external hard drive that comprised Sprung-brett trade secrets about “electric actuation system technology,” technology that the company was developing for possible use in nuclear submarines and on Air Force fighters. The indictment further states that the defendant later disclosed those trade secrets.
“Protecting scientific and technological innovations developed by businesses and entrepreneurs is of primary importance not just to those who create the idea, but to our region and country,” said U.S. Attorney Hochul. “This Office will protect the intellectual property of our residents, and will vigorously prosecute those who attempt to steal it.”
At the time of Liu’s arrest, FBI agents searched his Lexington, South Carolina home and his office and workspace at the Apex Tool Group in Lexington. Agents seized computers and documents that are currently being analyzed.
The indictment is the result of an investigation by the Buffalo Office of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig and the Columbia, South Carolina Office of the Federal Bureau of Investigation, under the direction of Special Agent in Charge David Thomas.Former Bristol-Myers Squibb Executive Sentenced to Prison for Trading on Inside InformationRead the Press Release
TRENTON, N.J. – A former executive with global pharmaceuticals giant Bristol-Myers Squibb Co. (BMS) was sentenced today to a year and a day in prison for trading on inside information regarding a public company that BMS was in the process of acquiring, U.S. Attorney Paul J. Fishman announced.
Robert Ramnarine, 46, of East Brunswick, N.J., previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with securities fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:Ramnarine was employed by BMS from 1997 to August 2012. From March 2008 on, he held a variety of high-level, executive positions at the company, including director of Pensions and Savings Investments (March 2008-June 2011), executive director of Pensions and Savings Investments (June 2011-July 2012) and assistant treasurer for Capital Markets (July 2012-August 2012). As a result of holding these positions, Ramnarine was involved in evaluating potential acquisition targets for BMS, including publicly traded companies, and was privy to inside company information concerning such transactions. He was legally banned from disclosing confidential information and material, nonpublic information he learned through his employment or from using such information for his personal benefit or the benefit of others.
During May and June 2012, Ramnarine traded on material, nonpublic information regarding the company’s anticipated acquisition of Amylin Pharmaceuticals Inc., a publicly traded company. The material, nonpublic information available to Ramnarine enabled him to reap substantial profits by engaging in lucrative trading in stock options of Amylin shortly before BMS announced its plans to acquire Amylin in late June 2012. As part of his plea, Ramnarine admitted for purposes of sentencing that his relevant criminal conduct includes $311,361 in illicit gains he made from trading in stock options of Amylin and several other BMS acquisition targets – ZymoGenentics Inc. and Pharmasset Inc., a company for which BMS submitted a bid through a confidential auction process, but which was subsequently acquired by Gilead Sciences.
In addition to the prison term, Judge Thompson sentenced Ramnarine to serve two years of supervised release and ordered him to pay a $10,000 fine. Ramnarine also forfeited $324,777 to the U.S. Securities and Exchange Commission (SEC).U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentence. He also thanked the SEC’s Market Abuse Unit and Philadelphia Regional Office, under the direction of Daniel M. Hawke, for its assistance, and Bristol-Myers Squibb Co., for its cooperation during the investigation.
The government is represented by Deputy Chief Gurbir S. Grewal and Assistant U.S. Attorney Mala Ahuja Harker of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Douglas R. Jensen Esq., New York