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Thursday 17 October 2013
Genovese Crime Family Associate Admits Racketeering Conspiracy and Tax EvasionRead the Press Release
NEWARK, N.J. – An Ocean County, N.J. man who is a reputed associate of the Genovese Crime Family today admitted his role in a racketeering conspiracy and tax evasion scheme and agreed to forfeit $400,000 to the United States, U.S. Attorney Paul J. Fishman announced.
John Breheney, a/k/a “Fu,” 49, of Little Egg Harbor, N.J., pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to violate the Racketeer Influenced and Corrupt Organizations, or RICO, statute, by participating in the activities of the Genovese Crime Family of La Cosa Nostra through a pattern of racketeering activity and through the collection of unlawful debt.
Breheney and 11others alleged to be members or associates of the Genovese Crime Family were arrested on May 22, 2012, and charged by complaint. The racketeering activities consisted of engaging in an illegal sports betting business conducted, in part, through an offshore website, and cargo theft. Breheney admitted that he earned income through his criminal activities and then concealed this income from the IRS by making false tax returns and failing to pay taxes on this income.
According to documents filed in this case and statements made court:
Breheney was an associate of the Genovese Crime Family of La Cosa Nostra. This alleged criminal enterprise through smaller groups, sometimes referred to as “crews,” that engaged in a variety of criminal activities in northern New Jersey and elsewhere. Each crew was headed by a “captain,” “capo,” or “skipper.” Each captain’s crew consisted of “soldiers” and “associates.” The captain was responsible for supervising the criminal activities of his crew and providing the crew with support and protection. In return, the captain often received a share of the crew’s earnings.Joseph Lascala, 81, of Monroe, N.J., was an alleged “capo” and a made member of the Genovese Crime Family, directing various criminal activities of a group of associates referred to in the criminal complaint as the “Lascala Crew.” These activities included the theft of goods and cargo, the receipt of stolen property in interstate commerce, extortion, illegal gambling, and the collection of unlawful debt. Breheney reported to Lascala and his underlings.
Members and associates of the Lascala Crew and others conspired with individuals who owned and operated an offshore website to run an illegal gambling business that operated in northern New Jersey and elsewhere.
High-level associates of the Lascala Crew, such as Breheney, acted as “agents” of the business. Before the advent of computerized betting, these agents would be referred to as “bookmakers” or “bookies.” Through the use of a username and password, the agents accessed the Website and tracked the bets or wagers placed by bettors. This “electronic portfolio” was referred to as the agent’s “package.” After bettors received their own username and password from the agent or sub-agent, they placed bets, usually on sporting events. The bettors, however, did not use a credit card to either access the website or to pay gambling losses or to receive gambling winnings. Instead, the bettors either paid money for losses to, or received money for winnings from, the agent, such as Breheney, his sub-agent, or their conspirators in New Jersey. If a bettor was unable or unwilling to repay gambling losses, then the agent or sub-agent converted these losses in debts that the bettor was required to repay. The agent or sub-agent often tacked exorbitant amounts of interest onto these debts and they used extortionate means to collect these debts, including the express or veiled threat that the agent, sub-agent, or their co-conspirators had the backing of the Genovese Crime Family.The Lascala Crew also profited by operating social clubs in northern New Jersey and elsewhere where members and associates profited through card games and other illegal games of chance. In addition, they also profited by engaging in cargo theft and the receipt and sale of stolen goods in interstate commerce.
Breheney admitted that he conspired with this criminal enterprise to engage in a pattern of racketeering activity, including illegal gambling and theft from interstate shipments, and the collection of unlawful debt. He also admitted that he failed to report approximately $101,166 in taxable income that he had received in 2007 and thus cheated the IRS out of approximately
$30,982 in taxes in that year. Finally, Breheney agreed to a forfeiture money judgment of $400,000, representing money he had derived through his participation in the racketeering activities.The racketeering count to which Breheney pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and $250,000 fine, and the tax evasion charge is punishable by up to five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 5, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Bayonne Police Department, under the direction of Chief Ralph Scianni; special agents of IRS-Criminal Investigation under the direction of Special Agent in Charge Shantelle P. Kitchen; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s arrests. He also thanked the Waterfront Commission of New York Harbor, the U.S. Department of Labor, and the N.J. State Commission of Investigation, for their significant contributions to the investigation.
The government is represented by Assistant U.S. Attorneys Serina M. Vash, of the National Security Unit, and Anthony Moscato of the Organized Crime/Gangs Unit in Newark.
As for other alleged members of the Lascala Crew, the charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense Counsel: Anthony J. Pope, Jr. Esq. NewarkBreheney Information
Four Conspirators Charged with Using Medical Patients' Identities to Steal over $750,000 of MerchandiseRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment today charging four defendants with conspiring to steal merchandise using stolen personal identifying information of medical patients:Denise W. Wearing, age 36, of Philadelphia, Pennsylvania;
Michelle Jernell Cole, age 27, of Baltimore;
Chanell Y. Cole, age 30, of Owings Mills, Maryland; and
Yolana Gail Welch, age 39, of Philadelphia.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
Michelle Cole worked at two medical practices located in Laurel, Columbia and Glen Burnie, Maryland. Her sister, Chanell Cole, worked at a doctor’s office in Baltimore. According to the three count indictment, from January 2010 to April 2013, the Cole sisters used their employment to obtain personal identifying information of over 46 patients, which the defendants used to take over and control the victims’ credit accounts at Macy’s and Bloomingdales. The defendants allegedly used the fraudulently accessed accounts to obtain jewelry, clothing, furniture, televisions and other merchandise and had the fraudulently obtained merchandise delivered to their own residences and to residences of friends and family members. They defendants kept the merchandise for their personal use, sold the items for cash, or returned the items in exchange for gift cards and sold gift cards for cash.
The indictment alleges that during the course of the scheme, the defendants defrauded over 100 victims, obtaining over $750,000 of merchandise using the victims’ accounts.
All of the defendants face a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. The initial appearances of the defendants are not yet scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation and thanked Macy’s fraud investigators for their assistance. Mr. Rosenstein praised Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.
Four Conspirators Charged with Using Medical Patients' Identities to Steal over $750,000 of MerchandiseRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment today charging four defendants with conspiring to steal merchandise using stolen personal identifying information of medical patients:Denise W. Wearing, age 36, of Philadelphia, Pennsylvania;
Michelle Jernell Cole, age 27, of Baltimore;
Chanell Y. Cole, age 30, of Owings Mills, Maryland; and
Yolana Gail Welch, age 39, of Philadelphia.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
Michelle Cole worked at two medical practices located in Laurel, Columbia and Glen Burnie, Maryland. Her sister, Chanell Cole, worked at a doctor’s office in Baltimore. According to the three count indictment, from January 2010 to April 2013, the Cole sisters used their employment to obtain personal identifying information of over 46 patients, which the defendants used to take over and control the victims’ credit accounts at Macy’s and Bloomingdales. The defendants allegedly used the fraudulently accessed accounts to obtain jewelry, clothing, furniture, televisions and other merchandise and had the fraudulently obtained merchandise delivered to their own residences and to residences of friends and family members. They defendants kept the merchandise for their personal use, sold the items for cash, or returned the items in exchange for gift cards and sold gift cards for cash.
The indictment alleges that during the course of the scheme, the defendants defrauded over 100 victims, obtaining over $750,000 of merchandise using the victims’ accounts.
All of the defendants face a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. The initial appearances of the defendants are not yet scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation and thanked Macy’s fraud investigators for their assistance. Mr. Rosenstein praised Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.
Fort Scott Man Sentenced to 20+ Years on Federal Drug Trafficking ChargesRead the Press Release
KANSAS CITY, KAN. – A Fort Scott man has been sentenced to more than 20 years in federal prison on drug trafficking charges, U.S. Attorney Barry Grissom said today.
Jonathan Brumback, 43, Fort Scott, Kan., was sentenced to 250 months in federal prison and ordered to forfeit $27,000 in proceeds from the crime. In his plea, he admitted that on Aug. 1, 2012, he sold approximately a gram of methamphetamine to a buyer working undercover for the Kansas Bureau of Investigation. The transaction took place at his shop in Ft. Scott. On Aug. 4, 2012, he sold more than six grams of methamphetamine to a buyer working undercover. The transaction took place at his residence in Ft. Scott. On Aug. 5, investigators served search warrants at his home and shop, where they found approximately half a pound of methamphetamine and $24,000 in cash.
On Aug. 20, 2012, an undercover agent purchased a quarter pound of methamphetamine for a little more than $5,000 from one of Brumback’s co-defendants, Rogelio Amada Lamas. The price included $3,000 that Brumback owed for methamphetamine he purchased from Lamas.
Co-defendants include:
Rogelio Amada Lamas, who is scheduled for sentencing Dec. 9.
Johana Villanueva-Renteria, who is set for sentencing Oct. 22.Grissom commended the Fort Scott Police Department, the Kansas Bureau of Investigation, Assistant Attorney General Steven Wilhoft with Kansas Attorney General Derek Schmidt's Office and Assistant U.S. Attorney Scott Rask for their work on the case.
Former Waiter Sentenced to 38-Month Prison Term, Used Stolen Credit Card Information to Buy Artwork and Jewelry-Defendant Also Carried Out Separate Check-Kiting Scheme-Read the Press Release
WASHINGTON - Kevin T. Washington, 48, of Gaithersburg, Md., was sentenced today to a 38-month prison term and ordered to pay restitution of approximately $39,000 to various businesses and banks that were defrauded in a pair of schemes, announced U.S. Attorney Ronald C. Machen, Jr., Cathy L. Lanier of the Metropolitan Police Department and Kathy A. Michalko, Special Agent In Charge of the Washington Field Office of the U.S. Secret Service.
Washington pled guilty in August 2013 in the Superior Court of the District of Columbia to felony credit card fraud, first-degree felony fraud, and misdemeanor credit card fraud. He was sentenced by the Honorable Robert I. Richter.
According to the plea agreement, in September and October of 2012, Washington obtained the credit card numbers of four different victims while working as a waiter at a restaurant in Georgetown. One victim had treated his niece, who had been attending college in the area, to a meal at the restaurant. Shortly thereafter, he discovered thousands of dollars in fraudulent charges from an art gallery. That victim’s card was used to purchase artwork totaling approximately $46,000 from a Georgetown art gallery, including two Pablo Picasso etchings, as well as Henri Matisse and Damien Hirst etchings.
Members of the Metropolitan Police Department’s Financial Crimes Unit enlisted assistance from the Fairfax County, Va. Police Department and together they were able to recover the artwork from a store in Fairfax County where Washington had pawned them. That store suffered roughly $3,000 in losses.
During this same time period, September through October 2012, Washington used the credit card number of another victim who had dined at the restaurant to purchase diamond stud earrings, a wedding band, a diamond cross and a 16-inch gold chain from a jewelry store in Northwest Washington. He also used another victim’s credit card number for storage services and the fourth victim’s credit card number for car repair services. All told, the purchases on these three victims’ cards totaled about $11,300.
Finally, beginning in March 2012 and continuing through February 2013, Washington fraudulently obtained approximately $24,000 in cash in a check-kiting scheme. The investigation showed that Washington opened accounts at six different banks and subsequently deposited bad checks with the intent of artificially inflating his account balances. Washington would then withdraw large sums of money, knowing that the checks would be returned due to insufficient funds or for having been written on closed accounts.
In announcing the sentence, U.S. Attorney Machen, Chief Lanier and Special Agent in Charge Michalko praised the investigative work of the MPD detective assigned to the Financial Crimes and Fraud Unit and the Special Agent assigned to the Secret Service‘s Washington Field Office. They also expressed appreciation for the assistance provided by the Fairfax County Police Department. Finally, they commended the efforts of Assistant U.S. Attorney Stephanie G. Miller, who prosecuted the case.
13-346Former Town Creek, Ala., Police Officer Sentencedfor Assaulting ArresteeRead the Press Release
Brandon Shane Mundy, a former police officer of numerous law enforcement agencies, the most recent being the Town Creek, Ala., Police Department was sentenced today by U.S. District Court Judge R. David Proctor to serve five years in prison and three years of supervised release, and to pay $3,745 in restitution for violating the civil rights of a man during the course of an arrest. Mundy previously pleaded guilty on April 25, 2013, to one count of willfully depriving the man of his constitutional right to be free from excessive force by a law enforcement officer acting under color of law. According to information presented to the court, on Nov. 22, 2009, Mundy was involved in a vehicle pursuit and fired shots at a man’s vehicle before later ramming the vehicle and causing it to wreck in a ditch. While another police officer reached the man and placed him under arrest without resistance, Mundy arrived and unjustifiably and repeatedly beat the man in the head with an object that was either a baton or a flashlight causing the man to suffer physical injury. After Mundy lost control of the object, he continued to strike the man in the head with his fist.
“When law enforcement officers abuse their power and violate the civil rights of those in custody, they will be held accountable,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in acts of criminal misconduct.”
“Every police officer is sworn to serve and protect, and virtually all of them take that oath seriously. This officer did not, and assaulted a citizen in violation of his oath,” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama. “My office continues to aggressively prosecute police misconduct and takes a zero tolerance policy in this regard.”
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Elizabeth Holt of the Northern District of Alabama and Civil Rights Division Trial Attorney Daniel H. Weiss.
Former Teacher Sentenced to Five Years in Prison for Receipt of Child Pornography-Exchanged Sexually Explicit Images with Student-Read the Press Release
WASHINGTON – John Solano, 30, a former teacher from Washington, D.C., was sentenced on Oct. 7, 2013 to five years in prison for receiving child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Solano pled guilty in July 2013 to receipt of pornography. He was sentenced in the U.S. District Court for the District of Columbia by the Honorable Rosemary M. Collyer. Solano has been incarcerated since his arrest on March 8, 2013. Upon completion of his prison term, Solano will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a period of 15 years.
According to the government's evidence, Solano, who was then a teacher at McKinley Tech High School in Northeast Washington, engaged in inappropriate sexual communications with several current and former students. Specifically, in December 2012, Solano engaged in inappropriate and sexually explicit text message communications with a 16-year-old student. During the course of that correspondence, at Solano’s request, the student sent and Solano received images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-345Former Sutherland Global Services Employees Sentenced for FraudRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul announced today that Brian Wergin, 31, and Bohdan “Don” Luzecky, 46, both of Rochester, N.Y., who were both convicted of mail fraud, were sentenced by U.S. District Court Judge Frank P. Geraci, Jr. Wergin was sentenced to 21 months in prison and ordered to pay $281,964.34 in restitution. Luzecky was sentenced to 27 months in prison and to pay restitution in the amount of $235,499.34.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that while employed at Sutherland Global Services where they were assigned to provide technical support to Intuit, Inc., the defendants utilized Sutherland computers to place false and fraudulent orders for free, replacement discs of Intuit software, including TurboTax and Quicken. Between December 2009 and October 2011, the defendants ordered more than 6,500 discs to which they were not entitled. After receiving the software discs at addresses in Rochester and Atlanta, GA, the defendants sold the software online, including through eBay.com, to customers throughout the United States. Wergin and Luzecky then kept the proceeds for themselves, knowing that they were not authorized to obtain or sell the software.
The sentencings are the culmination of an investigation on the part of Inspectors of the United States Postal Inspection Service, under the direction of Inspector Kevin Niland, Boston Division, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.Former Social Security Administrator Pleads Guilty to Aggravated Identity Theft, Mail Fraud, Unauthorized Sale of Stolen Stocks, Tax ChargesRead the Press Release
PROVIDENCE, R.I. – Randolph Hurst, 50, of West Warwick R.I., a former Assistant District Manager for the Social Security Administration in Rhode Island, pled guilty in U.S. District Court in Providence on October 9, 2013, to stealing the identity of a Coventry man and using the victim’s identity to fraudulently sell more than $160,000 worth of stock certificates belonging to the victim. Hurst also pled guilty to failing to pay $61,999 in taxes owed to the IRS.
Appearing before U.S. District Court Judge William E. Smith, Hurst pled guilty to one count each of aggravated identity theft, transportation of stolen securities and tax evasion; two counts of mail fraud; and three counts of filing a false tax return. Hurst faces up to 45 years in federal prison and a fine of up to $1.4 million dollars when he is sentenced on January 10, 2014.
A co-defendant in this matter, Justin Silveira, 29, of Coventry, pled guilty on October 9, 2013, to two counts of perjury and one count of obstruction of justice. Silveira admitted to the court that he lied to a grand jury which was investigating this matter. At sentencing on January, 10, 2014, Silveira faces up to 20 years in federal prison and a fine of up to $750,000.
The guilty pleas were announced by United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; Cheryl Garcia, Acting Special Agent in Charge of the New York region of the U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations; John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation; and Scott E. Antolik, Special Agent in Charge of the Boston field office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
At the time of his guilty plea, Hurst admitted to the court that in September 2010 he stole personal identifying information belonging to the victim and used it to open a joint account at Summit Brokerage Services in Providence in his name and in the name of the victim, without the victim’s permission. Hurst admitted that two days after opening the account he provided documentation to Summit purportedly authored and signed by the victim, requesting the deposit of two stock certificates owned by the victim. The victim never authorized the deposit of the stock certificates and was unaware that an account had been opened in his name.
Hurst admitted to the court that in October 2010, without the victim’s knowledge, he requested that Summit sell the stocks and issue a check in his name and in the victim’s name for $157,747.49, which represented a portion of the proceeds of the sale of the stocks. The check was sent by courier to the Coventry address of Justin Silveira. On October 22, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife. Hurst admitted to the court that on the same date the check was deposited he requested a second check from Summit in the amount of $3,980.46, in his name and in the victim’s name, for the remaining proceeds from the sale of the stock, and that it be sent to the same address in Coventry. On November 8, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife.
Hurst admitted to the court that he and his wife spent the proceeds of the sale of the stock, $161,727.95, on personal items and expenses.
The cases are being prosecuted by Assistant U.S. Attorney Dulce Donovan.The matter was investigated by federal agents from the FBI; U.S. Department of Labor Office of Labor Racketeering and Fraud Investigations; Internal Revenue Service – Criminal Investigation; and Social Security Administration, Office of the Inspector General/Office of Investigations.
This law enforcement action is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.
Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Former R.I Doctor to Pay $1.2 Million for Fraudulent Billings to Medicare and MedicaidRead the Press Release
PROVIDENCE, RI – Dr. Hafeez Kahn, a former Rhode Island physician with practices located in Smithfield and East Providence, R.I., will pay the government $1.2 million dollars, twice the amount of money a Settlement Agreement states he fraudulently billed the Medicare and Medicaid programs, it was announced today by the United States Attorney’s Office, the Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the Rhode Island Attorney General’s Office.
According to the Agreement, between August 2006 and December 2010, Dr. Kahn and two corporations he owned, U.S. Care Inc. and U.S. Care Pain Clinic LLC, overbilled the health care programs for services provided to some patients and falsely submitted claims for services never performed.
According to the Agreement, Kahn must make an immediate payment of $500,000 within 10 days and annual payments of $175,000 plus interest for the next five years beginning on or before September 1, 2014.
The matter, investigated by the United States Attorney’s Office, HHS-OIG, and the Rhode Island Attorney General’s Office Medicaid Fraud Control Unit, was handled by Assistant U.S. Attorney Mary Rogers and R.I. Assistant Attorney General James F. Dube.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Former PHA Manager Indicted on Embezzlement ChargesRead the Press Release
PHILADELPHIA - Sondra Wong Nelson, 36, of Philadelphia was charged by Indictment, unsealed October 3, 2013, with one count of theft from a federally funded organization and two counts of falsely altering a postal money order, announced U.S. Attorney Zane David Memeger. According to the indictment, between January 2012 and June 2010, during her tenure as a Supervisory Asset Manager at the Philadelphia Housing Authority (PHA), Nelson embezzled close to $8,000 in rent money from PHA tenants and deposited those funds into her personal bank account.
Many of the PHA tenants living in the scattered sites paid their monthly rent at the management offices in the form of money orders made payable to PHA. The indictment alleges that defendant Nelson, in her role as Supervisor Asset Manager at PHA, took many of these money orders, substituted her name for PHA as the payee on the money orders, and deposited the altered money orders in her personal bank account. It is further alleged that as part of her corrupt scheme, defendant Nelson accessed PHA's internal computer database and manipulated the database to falsely reflect that the embezzled rent payments had been received by PHA, even though she knew that she had deposited those funds in her personal bank account.
If convicted, the defendant faces a maximum sentence of 20 years in prison, three years of supervised release, a fine of up to $750,000, and a $300 special assessment.
The case was investigated by the Federal Bureau Investigation, the U.S. Department of Housing and Urban Development's Office of Inspector General, the United States Postal Inspection Service, and the Philadelphia Housing Authority Office of Inspector General. It is being prosecuted by Assistant United States Attorney Sozi Pedro Tulante.
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, 215-861-8525Former Los Angeles-area Pastor Sentenced for Role in $11 Million Medicare Fraud SchemeRead the Press Release
A pastor and owner of a Los Angeles-area medical supply company was sentenced today for his role in a power wheelchair fraud scheme that defrauded Medicare out of more than $11 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney André Birotte Jr. of the Central District of California; Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office; and Special Agent in Charge Joseph Fendrick of the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse made the announcement.
Charles Agbu, 58, of Carson, Calif., was sentenced by U.S. District Judge George H. Wu to serve 87 months in prison and was ordered to pay $5,788,725 in restitution to Medicare. In December 2012, Agbu pleaded guilty to conspiracy and money laundering charges based on his role as owner and operator of Bonfee Inc., a fraudulent durable medical equipment (DME) supply company that Agbu operated with his daughter and co-defendant, Obiageli Agbu, and members of his family from a nondescript office building in Carson. Agbu admitted that he paid patient recruiters and doctors to provide him with fraudulent prescriptions for expensive, highly specialized power wheelchairs and other DME that he, Obiageli Agbu and their co-conspirators used in submitting more than $11 million false claims to Medicare. Agbu billed the power wheelchairs to Medicare at a rate of approximately $6,000 per wheelchair even though he paid approximately $900 wholesale per wheelchair. In many cases, the Medicare beneficiaries to whom Agbu and his co-conspirators claimed they supplied the power wheelchairs and DME did not have any legitimate medical need for the medical equipment, and, in some cases, never received the medical equipment from Agbu’s company. At the time Agbu engaged in this fraud, he was a pastor at Pilgrim Congregational Church in South Central Los Angeles.
On Sept. 30, 2013, and Oct. 2, 2013, Agbu’s co-defendants, Alejandro Maciel, 43, of Huntington Park, Calif., and Dr. Emmanuel Ayodele, 65, of Los Angeles, were sentenced to serve 41 and 37 months in prison and ordered to pay $5,388,755 and $6,355,949 in restitution to Medicare, respectively. Two other co-defendants, Dr. Juan Van Putten and Candelaria Estrada, have pleaded guilty to Medicare fraud charges and are scheduled for sentencing on Dec.12, 2013, and Oct. 31, 2013, respectively. Obiageli Agbu was convicted by a jury on nine counts of conspiracy to commit health care fraud and health care fraud on July 19, 2013. Her sentencing date has not been set.
The case is being investigated by the FBI, HHS-OIG and the California Department of Justice and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case is being prosecuted by Trial Attorneys Jonathan T. Baum and Alexander Porter of the Criminal Division’s Fraud Section.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Former Lee County Commissioner Pleads Guilty to Wire FraudRead the Press Release
Fort Myers, Florida - Acting United States Attorney A. Lee Bentley, III announces that on October 3, 2013, former Lee County Commissioner Tammara Ann Hall, a/k/a Tammy Hall (53, Cape Coral), pleaded guilty to wire fraud. She faces a maximum penalty of 20 years in federal prison. Her sentencing hearing is scheduled for January 13, 2014.
According to the plea agreement, Hall was a Lee County Commissioner running for re-election in the November 2010 general election. Between November 2009 and November 2010, Hall diverted and embezzled approximately $33,756 of donor contributions to the Tammy Hall campaign fund, and used the money for personal expenditures unrelated to the campaign. Hall completed Florida Department of State campaign fund quarterly reports and failed to disclose that she had diverted campaign contributions to pay for personal expenses. She falsely represented the nature of the expenditures, which she made for personal purposes, or omitted certain campaign contribution checks from the quarterly reports. Hall stole from her campaign fund by transferring funds electronically from the campaign bank account to her personal bank account. She wrote checks from the campaign bank account and then deposited the checks into her personal bank account. She also deposited certain donor campaign contribution checks directly into her personal bank account. Hall used interstate wires to accomplish the electronic transfer of funds from her campaign account to her personal account at Wachovia Bank.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former Ladue Financial Advisor Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – GREG J. CAMPBELL was sentenced to 38 months in prison, restitution in the amount of $1,851,956 and ordered the forfeiture of his home in Ladue. He earlier pled guilty to diverting over $1.8 million from client retirement accounts to finance his luxury home, cars and lifestyle. He was sentenced October 9 by United States District Judge Audrey G. Fleissig.
According to court documents, from June 2006 until October 2011, Campbell was employed as a financial advisor at Merrill Lynch. Campbell managed clients' Loan Management Accounts (LMAs), which were lines of credit collateralized by securities. Beginning in September 2007 and continuing until the end of his employment in October 2011, Campbell fraudulently diverted more than $1.4 million from LMAs to his own personal accounts and the accounts of others and for his own personal use. He used the money for a down payment on a personal residence, mortgage payments, lease payments on luxury vehicles and living expenses.
In November 2011, Campbell began working as a Senior Wealth Manager for Four Seasons Wealth Management (Four Seasons) in Clayton. Four Seasons was a company that offered securities and advisory services to clients through LPL Financial, LLC, a securities broker-dealer (LPL). Campbell was employed at Four Seasons until October 2012 and managed clients' individual retirement accounts (IRAs). Between November 2011 and October 2012, Campbell diverted funds from his clients' IRAs to his own personal accounts. Campbell took various steps to conceal his fraud. He changed the mailing addresses on clients' accounts, without their knowledge, to an address to which he had access so that clients would not receive account statements. In at least one instance, Campbell falsely stated on distribution documents that he was the client's grandson, when he was not related to the client. During his tenure at Four Seasons, Campbell fraudulently diverted more than $360,000 from client accounts. Campbell used fraudulently diverted funds to pay for personal expenses, including renovations to his personal residence, mortgage payments, vehicle lease payments and living expenses.
Campbell, Ladue, MO, pled guilty last June to two felony counts of wire fraud.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney's Office.
Former Hartford Resident Sentenced to 10 Years in Federal Prison for Sex Trafficking of A MinorRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that KAMAR JAMES, also known as “Sean Steppa,” “Sean Lawson” and “Akamar Lawson,” 31, a citizen of Jamaica last residing in Hartford, was sentenced on October 9 by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor.
According to court documents and statements made in court, in 2011, JAMES recruited a minor victim whom JAMES knew to be under the age of 18 to engage in prostitution. On multiple occasions, JAMES transported the minor victim from Connecticut to streets in New York City where the victim would meet men who would pay her for sexual encounters. JAMES also posted pictures of the minor victim on the Internet to advertise the victim’s prostitution services. He then transported the victim to hotels in the New York City area when the victim engaged in pre-arranged prostitution encounters. The victim turned over all of the proceeds from the prostitution encounters to JAMES.
Judge Bryant ordered JAMES to pay restitution of $12,750 to his victim.
JAMES has been detained since his arrest on February 3, 2012. On June 27, 2013, he pleaded guilty to one count of sex trafficking of a minor.
This matter was investigated by the Federal Bureau of Investigation and the Hartford Police Department, with the assistance of U.S. Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney David E. Novick.
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[email protected]Former Director and Treasurer of Chicago Black Nurses Association Sentenced for Fraud SchemeRead the Press Release
Springfield, Ill. – Both a former program director and treasurer of the Chicago Chapter of the National Black Nurses Association have been sentenced to prison terms for their respective roles in a scheme that defrauded state grant programs of at least $377,573, from 2005 to 2009. On Oct. 8, 2013, U.S. District Judge Sue E. Myerscough sentenced Margaret A. Davis, former association director, to 41 months (3 years, 5 months) in prison and ordered that Davis pay restitution in the amount of $377,573. On Oct. 15, 2013, Tonja Cook, former treasurer, was sentenced to 19 months (1 year, 7 months) in prison and to pay restitution in the amount of $137,111. Both women were ordered to report to the federal Bureau of Prisons on Jan. 2, 2014.
Davis, 62, pled guilty on Feb. 27, 2013, to mail fraud and money laundering in the scheme that defrauded state grant programs from 2005 to 2009. Cook, 46, pled guilty on Nov. 26, 2012, to one count of mail fraud for her role in assisting Davis in the scheme.
In court documents and during Davis’s sentencing hearing, the government presented evidence that established that Davis, with Cook’s assistance, commingled and converted a substantial amount of grant funds to her personal use, to the use and benefit of her family and friends, and to the use and benefit of public officials and political organizations. Davis also used grant funds to support a not-for-profit healthcare advocacy organization known as the African American Aids Network, which Davis controlled. Cook also received some funds which she used for her personal expenses and benefit.From December 2005 to June 2009, Davis solicited and received 15 different grants and contracts totaling $1,062,000 on behalf of the Chicago Chapter of the Black Nurses Association from Illinois state agencies including the Department of Commerce and Economic Opportunity; Department of Public Health; Department of Human Services; and the State Board of Education. The grants were purportedly to provide funds for numerous healthcare advocacy-related and nursing student assistance programs, including recruitment of 200 students from one Illinois senatorial district to participate in the “Young Enough to Make a Difference Project;” educational activities to promote public awareness of HIV/AIDS, breast and cervical cancer, prostate cancer, and pandemic flu; and, implementation of two nursing student internship programs.
Davis converted more than $200,000 in grant funds to cash at a currency exchange located near her residence. More than $100,000 in grant funds were made payable to her organization, the African American Aids Network, although Davis failed to disclose her interest in the organization to the State of Illinois, concealed the amount of grant and contract funds to be disbursed, and forged the name of a co-signatory on the organization’s bank account checks.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Former Detroit Mayor Kwame Kilpatrick, Contractor Bobby Ferguson and Bernard Kilpatrick Sentenced on Racketeering, Extortion, Bribery, Fraud and Tax ChargesRead the Press Release
Former Detroit Mayor Kwame M. Kilpatrick, 43, contractor Bobby Ferguson, 44, and Bernard Kilpatrick, 72, have all been sentenced for their roles in the wide-ranging Detroit public corruption scandal, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by John Robert Shoup, Acting Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation, Randall Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division, Richard Weber, Chief of IRS
Criminal Investigation and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development - Office of Inspector General.Kwame Kilpatrick was sentenced to 28 years in federal prison for using his position as Mayor of Detroit and Michigan State House Representative to execute a wide ranging racketeering conspiracy involving extortion, bribery and fraud.
Bobby Ferguson was sentenced to 21 years in federal prison for being the catalyst at the center of an extortion scheme that netted him millions of dollars in city contracts.
Bernard Kilpatrick was sentenced to 15months on a charge of subscribing false tax returns. The jury was unable to reach a unanimous decision on the racketeering conspiracy charge.
United States Attorney Barbara L. McQuade stated, “This case is not so much about punishing for the past as it about shaping the future. These sentences will deter other officials from stealing from the people and will attract honest public servants to office.”
In March, Kwame Kilpatrick was convicted by a jury of 24 counts of extortion, mail fraud, tax violations and racketeering. The jury deliberated for about 14 days before returning the verdicts, concluding a five-month long trial before United States District Judge Nancy G. Edmunds.
The evidence presented at trial established that Kwame Kilpatrick and contractor Bobby Ferguson participated in a racketeering conspiracy to financially enrich themselves, their associates and their families by using the power and authority of Kwame Kilpatrick=s position as Mayor of Detroit, as well as his position as a member of the Michigan House of Representatives, to commit extortion, bribery and fraud, and to defraud donors to nonprofit entities under the control of Kwame Kilpatrick and his associates, including the Kilpatrick Civic Fund, Kilpatrick for Mayor, and the Kilpatrick Inaugural Committee.
At the heart of the conspiracy was a scheme to use the power and authority of Kwame Kilpatrick=s office as Mayor of Detroit to extort municipal contractors by coercing them to include Ferguson in public contracts, and to rig the awarding of public contracts to ensure that Ferguson obtained a portion of the revenue from those contracts. Ferguson obtained at least $73 million in revenues from municipal contracts through this scheme, a portion of which he shared with his co-conspirators.
Evidence showed that during Kwame Kilpatricks tenure as a Representative of the Michigan House and as the Mayor of Detroit, Kwame Kilpatrick and Bobby Ferguson obtained more than half a million dollars from the State of Michigan and donors to nonprofit entities they controlled, including the Kilpatrick Civic Fund, Kilpatrick for Mayor, and the Kilpatrick Inaugural Committee, under the false pretense that the money would be used to better the community or for campaign expenses when, in reality, the money was used for personal or other impermissible expenses, including vacations to luxury resorts, spa treatments, yoga lessons and golf clubs.
Further evidence showed that during Kwame Kilpatricks tenure as mayor, he solicited and accepted payments and property valued at over one million dollars from persons seeking business with the City or its General Retirement System or Police and Fire pension funds.
Evidence was also presented that in return for the proceeds from the public contracts Ferguson received, Ferguson kicked back significant sums of cash, items of value or other benefits to Kwame Kilpatrick. Further evidence was presented that during his tenure as Mayor, Kwame Kilpatrick used more than $840,000 cash, derived from the conspiracy, to make deposits into his bank accounts, pay his credit card bills, purchase cashiers checks and clothing, and to repay loans.
As a result of the lengthy and wide-ranging investigation into corruption in the City of Detroit, the government has obtained convictions from thirty-two other individuals.
The investigation of this case was conducted by agents of the FBI, EPA-CID and IRS-CID. The case was prosecuted by Assistant U.S. Attorneys Mark Chutkow, R. Michael Bullotta, Jennifer Blackwell and Eric Doeh.
Florida Man Who Illegally Mailed Nearly 20,000 Oxycodone Pills to West Virginia Sentenced to 14 Years in PrisonRead the Press Release
Ryan Moore received more than $330,000 cash in connection with pill distribution plot
BECKLEY, W.Va. – A Florida man who illegally mailed packages containing thousands of powerful prescription painkiller pills to individuals located in West Virginia was sentenced to 14 years in federal prison, announced U.S. Attorney Booth Goodwin. Ryan D. Moore, of Hillsborough County, Fla., previously pleaded guilty in May to conspiracy to distribute oxycodone and conspiracy to commit money laundering. From at least October 15, 2010 and April 27, 2012, Moore mailed packages containing a total of approximately 17,000 30-milligram oxycodone tablets to individuals located in West Virginia. Moore, 32, sent more than one hundred express mail packages from U.S. Postal Service facilities located near Tampa, Fla. to a post office box at Glen Fork, W.Va. Moore also mailed packages to a location in Calvin, Nicholas Co. All of the packages mailed by Moore contained oxycodone tablets.
U.S. Attorney Booth Goodwin said, “When tens of thousands of painkillers are illegally mailed in just over a year’s time, it says something about the extent of this district’s pill problem. My office’s commitment to prosecute pill dealers will continue.”
Moore received at least $330,000 in cash as payment for the packages that contained oxycodone tablets. The cash was deposited by known individuals into Moore’s bank accounts during the scheme. Moore knew that the cash payments deposited into his bank account were proceeds collected from illegal pill transactions.
Moore mailed packages containing oxycodone pills to two Wyoming County residents, Christopher and Jennifer Brooks, from at least March 2010 until April 27, 2012. Christopher Brooks, 36, and Jennifer Brooks, 29, both of Glen Fork, W.Va., previously pleaded guilty in February to conspiracy to distribute oxycodone and money laundering charges. Mr. and Ms. Brooks received at least 130 express mail packages containing a total of approximately 17,000 30-milligram oxycodone tablets between October 15, 2010 and April 27, 2012. As payment for the oxycodone pills, Mr. and Ms. Brooks deposited at least $300,000 cash into bank accounts that were owned by Moore.
Mr. Brooks was sentenced to 10 years in federal prison in August. Also in August, Mrs. Brooks was sentenced to seven years in prison for her role in the scheme.
Moore also mailed packages containing oxycodone to convicted Nicholas County pill dealer, Keith Keiffer. Keiffer, 32, of Calvin, Nicholas County, W.Va., received at least 15 express mail packages that contained a total of approximately 1,400 30-milligram oxycodone tablets from Moore. Keiffer, in exchange for the oxycodone tablets, deposited thousands of dollars’ cash into Moore’s bank accounts. Keiffer was sentenced to four years in federal prison in July.
Moore’s sentence was imposed by United States District Judge Irene C. Berger.
The Internal Revenue Service - Criminal Investigation, the U.S. Postal Inspection Service, the Drug Enforcement Administration and the Wyoming County Sheriff’s Department conducted the investigation. Assistant United States Attorney Haley Bunn handled prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Felon Convicted of Drug Trafficking and Possessing FirearmsRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces that on October 10, 2013, a federal jury today found Charlie Vernon, Jr. (Tampa, 53) guilty of possessing with the intent to distribute more than an ounce of crack cocaine and being a felon in possession of firearms and ammunition. Vernon faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for January 6, 2014. Vernon was indicted on February 28, 2013.
According to testimony and evidence presented at trial, officers from the Tampa Police Department executed a search warrant at Vernon’s residence on February 1, 2013. They recovered two ounces of crack cocaine, various quantities of powder cocaine and marijuana, and paraphernalia to package and distribute those drugs, including scales, baggies, crack pipes, and cutting instruments. In addition, officers also found four firearms and more than 800 rounds of ammunition. Prior to February 2013, Vernon had previously been convicted of three felonies for drug trafficking offenses and, as such, was prohibited from possessing any firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Matthew Jackson and Natalie Adams.
Federal Jury Finds Two Men GuiltyOf Gang Crimes in Dodge CityRead the Press Release
WICHITA, KAN. – A federal jury today found two men guilty of gang crimes including murder in Dodge City, U.S. Attorney Barry Grissom said today.
Pedro Garcia, 27, Dodge City, Kan., and Gonzalo Ramirez, 28, Dodge City, Kan., both members of the Norteno street gang, were convicted on all counts, including:
- Count one (both defendants): Conspiracy by members of the Norteno gang to commit crimes in violation of the federal Racketeer Influenced and Corrupt Organizations Act.
- Count two (both defendants): Conspiracy to commit murder. On June 8, 2009, the defendants conspired to murder Israel Peralta, Mariano Sorano, Faustino Peralta and Roberto Arco.
- Count three (both defendants): Murder. On June 8, 2009, the defendants murdered Israel Peralta.
- Count four (both defendants): Attempted murder. On June 8, 2009, the defendants attempted to murder Mariano Sorano, Faustino Peralta and Roberto Arco.
- Count five (both defendants): Assault with a dangerous weapon. On June 8, 2009, the defendants used firearms to assault Israel Peralta, Mariano Sorano, Faustino Peralta and Roberto Arco.
- Count six (both defendants): Possession and discharge of a firearm during a violent crime. One June 8, 2009, the defendants discharged firearms in furtherance of a crime of violence.
- Count seven (both defendants): Assault with a dangerous weapon. On June 8, 2009, the defendants used a firearm to assault Isidro Raleas-Velasquez.
- Count eight (both defendants): Conspiracy to commit assault with a dangerous weapon. On June 8, 2009, the defendants conspired to assault Isidro Raleas-Velasquez with a firearm.
- Count nine (both defendants): Possessing and brandishing a firearm during a violent crime. On June 8, 2009, the defendants possessed and brandished firearms in furtherance of a crime of violence.
- Count ten (Ramirez only): Conspiracy to murder. On Oct. 4, 2008, the defendants conspired to murder Rumalda Hipolito and Abel Hernandez.
- County eleven (Ramirez only): Attempted murder. On Oct. 4, 2008, the defendants attempted to murder Rumalda Hipolito and Abel Hernandez.
- Count twelve (Ramirez only): Assault with a dangerous weapon. On Oct. 4, 2008, the defendants assaulted Rumalda Hipolito and Abel Hernandez with a firearm.
- Count 13 (Ramirez only): Possession and discharge of a firearm during a violent crime. On Oct. 4, 2008, the defendants possessed and discharged firearms in furtherance of an aggravated assault.
During the June 8, 2009, incident, the defendants and other gang members fired at a group of men gathered at a trailer park located at 201 E. McArtor in Dodge City. Peralta was killed in the shooting.
On the same date, the defendants and other gang members robbed Isidro Raleas-Valasquez and Alonzo Diego at their home in the 1000 block of Ave. E. They struck Raleas-Vasquez in the head with a gun and stole money from the victims.
In the Oct. 4, 2008, incident, the Ramirez used a firearm to attack a group of men they believed to be members of the rival Sureno gang at a residence in the 1100 block of 4th Ave. in Dodge City.During trial, prosecutors presented evidence that members of the Nortenos committed crimes including murder, attempted murder, conspiracy, assault, robbery and distribution of narcotics for the purpose of enriching themselves and creating a climate of fear in order to intimidate rival gang members and the general public.
Sentencing is set for Jan. 6, 2014. The crimes carry the following penalties:
Conspiracy: A maximum penalty of 20 years and a fine up to $250,000.
Violent crimes in furtherance of racketeering: A maximum penalty of 20 years and a fine up to $250,000; or a maximum penalty of 10 years and a fine up to $250,000 depending on the type of violent crime.
Murder in furtherance of racketeering: A maximum penalty of life in prison, and a fine up to $250,000.
Possession or discharge of a firearm in furtherance of a crime of violence: Not less than five years nor more than life and a fine up to $250,000..
Conspiracy to commit assault with a dangerous weapon in furtherance of racketeering: A maximum penalty of three years and a fine up to $250,000.Grissom commended the Dodge City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff's Office, the Ford County Attorney’s Office and the Kansas Bureau of Investigation, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.
Federal Judge in El Paso Sentences Michigan Businessman for Role in Scheme to Defraud the El Paso Independent School DistrictRead the Press Release
In El Paso yesterday, U.S. District Judge Frank Montalvo sentenced 61-year-old Gary Lange of Haslett, Michigan, to two years in federal prison and ordered him to pay more than $2.89 million in restitution for scheming to secure and maintain a lucrative El Paso Independent School District special education services contract announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist.
In February 2009, Lange pleaded guilty to one count of conspiracy to commit mail fraud and deprivation of honest services. By pleading guilty, Lange admitted that from February 2003 to October 2007, he conspired with his business partner Joseph O’Hara of Albany, NY, former El Paso Independent School District Associate Superintendent Tomas Gabaldon and former El Paso Independent School District Trustee Sal Mena to fraudulently secure and maintain a contract to provide software to the special education department of EPISD and to provide services to obtain federal and state reimbursement funds for special education programs. Lange further admitted that he facilitated O’Hara in paying $100,000 in bribes to Gabaldon and a $5,000 kickback to Mena in 2005 for their help in securing the contract for O’Hara’s company, Strategic Government Solutions, Inc. SGS failed to provide working software to EPISD as required by the contract and it submitted improper claims for reimbursement funds.
“The sentencing of Mr. Lange once again demonstrates the continued commitment of the FBI to bring to justice those individuals who erode the public’s confidence in those entrusted to manage our educational institutions. The FBI will continue to aggressively pursue individuals who place their personal interests above those of the taxpayers of El Paso,” stated FBI Special Agent in Charge Douglas E. Lindquist.
Gabaldon and O’Hara have been sentenced to four years and three years, respectively, in federal prison and ordered to pay the restitution to EPISD for their roles in the scheme. Mena, who also pleaded guilty to a conspiracy charge, is scheduled to be sentenced at 9:00am on December 10, 2013, before Judge Montalvo.
The case was investigated by the Federal Bureau of Investigation along the U.S. Department of Education—Office of Inspector General. Assistant United States Attorneys Chris Skillern, Donna Miller and Laura Gregory prosecuted this case on behalf of the Government.
Federal Inmate Gets 19 Additional Years in Prison for Second Murder for Hire SchemeRead the Press Release
Tampa, Florida – On October 7, 2013, U.S. District Judge William J. Castagna sentenced Alexander Shevgert, an inmate at Coleman Federal Prison and former resident of Sarasota, to an additional 19 years in federal prison for a murder for hire scheme in which he attempted to murder three family members. Shevgert pleaded guilty on July 12, 2013.
According to court documents, between July 2011 and May 2012, Shevgert, while incarcerated at Coleman Federal Prison, solicited others to effect the murders of three family members identified herein as G.K., V.K. and GK. At the time, Shevgert was serving a 25 year prison sentenced for conspiracy to travel across state lines with intent to kill, injure, and harass another person, and traveling across state lines with intent to kill, injure an harass another person. Two of the three individuals that Shevgert wanted murdered were victims from the previous case. Shevgert believed that if he was able to effect the murders of the victims he might have a greater chance of success during an appeal of the previous case. He thought it would be more believable that he was not guilty of harming the victims in the first case if the victims were harmed again while he was incarcerated. Further, Shevgert wanted to ensure that the three victims, G.K. V.K. and G.K were not available to testify at any further proceedings.
After soliciting other inmates to help arrange for the murders, law enforcement was notified, and an investigation was conducted. An undercover detective, posing as a “hit man,” exchanged phone calls, emails, and met with Shevgert. During the exchanges, Shevgert discussed and arranged the murders of the victims. As payment for the murders, Shevgert provided the hit man with detailed information regarding a friend of his, identified herein as J.S. Shevgert believed “J.S.” had a substantial amount of valuable personal property at his home. Shevgert instructed the the hit man to commit a robbery of J.S. He told the “hit man” to steal his property and sell the stolen items as payment for the murders. Shevgert advised the hit man that it did not matter to him if J.S. was murdered during the robbery.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
Father and Son, Who Owned/Operated A Physician House Call Company and Billed for Services Not Rendered, Are Convicted on Conspiracy and Health Care Fraud ChargesRead the Press Release
Dr. Nicolas Padron Pleaded Guilty to Role in Conspiracy
DALLAS — A federal jury has convicted two local men on conspiracy and health care fraud charges related to their operation of a physician house call company in North Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
On October 4, 2013, following a five-day trial before U.S. District Judge David C. Godbey, Lawrence Dale St. John, 66, and his son, Jeffrey Dale St. John, 41, both of Grand Prairie, Texas, were convicted on conspiracy and health care fraud charges related to their operation of A Medical House Calls, a physician house call company.
Specifically, each defendant was convicted on one count of conspiracy to commit health care fraud and 13 substantive counts of health care fraud. Each count carries a maximum statutory sentence of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. Judge Godbey remanded Jeffrey St. John into custody; Lawrence St. John was already in custody. Sentencing is set for January 27, 2014.
Co-defendant Dr. Nicolas Alfonso Padron, 54, of Garland, Texas, pleaded guilty on September 10, 2013, to one count of conspiracy to commit health care fraud. Dr. Padron, who joined A Medical as its medical director in December 2009, testified, as did a number of nurse practitioners, physician assistants and company staff, that services billed had never been performed.
In a separate case, Dr. Padron also entered a guilty plea to one count of conspiracy to unlawfully distribute a controlled substance stemming from his operation of Padron Wellness Clinic, a “pill-mill,” that he operated in Dallas. Dr. Padron has been in custody since his arrest in June 2012 on a related federal criminal complaint.
A Medical provided physician visits to Medicare beneficiaries in their homes rather than at a doctor’s office. A Medical, which was also known as A+ Medical House Calls and ANM Physician House Calls, was owned by Lawrence St. John; Jeffrey St. John ran its daily operations. A Medical had locations in Mesquite, Texas; Dallas; and Carrollton, Texas. Its primary purpose was to certify and re-certify Medicare beneficiaries for home health services, regardless of the true condition of the patient.
Once A Medical established a Medicare beneficiary for physician home visit services, A Medical would submit billing for fraudulent care plan oversight claims. The company didn’t provide primary care physician services to Medicare beneficiaries.
According to documents filed in the case and evidence presented at trial, from May 2010 to January 2012, the defendants conspired together and with others to defraud the Medicare program. A Medical, at the direction of Lawrence and Jeffrey St. John, submitted claims to Medicare using Dr. Padron’s unique Medicare number, with Dr. Padron’s permission, regardless of the claim’s merit.
The defendants conspired together to bill Medicare for care plan oversight by Dr. Padron for numerous beneficiaries when Dr. Padron was out of town, including dates when he was out of the country and on a cruise.
In total, the defendants billed taxpayers for $1.4 million of services that were either not medically necessary or not rendered at all. Through the fraudulent certifications, Medicare was billed an additional $9.7 million by home health agencies.
The investigation was conducted by U.S. Department of Health and Human Services - Office of Inspector General, the FBI and the Medicaid Fraud Control Unit of the Office of the Attorney General of Texas. Assistant U.S. Attorneys Kate Pfeifle and J. Nicholas Bunch are in charge of the prosecution.
Fairfax Woman Convicted of Sex Trafficking A 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Stephanie Chapman, 28, of Fairfax, Va., was convicted today by a federal jury on charges of conspiracy to commit sex trafficking of a child, sex trafficking of a child, and interstate transportation of a minor for the purposes of prostitution.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after the verdict was accepted by United States District Judge Liam O’Grady.
Chapmanfaces a maximum penalty of life in prison, with a mandatory minimum term of ten years of imprisonment, when she is sentenced on January 24, 2014.
Chapman was indicted on July 11, 2013, by a federal grand jury. According to court records and evidence adduced at trial, between February 27, 2013 and March 12, 2013, Chapman and her boyfriend, Ronnie Holmes, met a 15-year-old girl and recruited her to be a prostitute for them. During that time, Chapman and Holmes took sexually suggestive photographs of the girl, sent the photographs to potential customers, posted the photographs on Backpage.com, drove the girl to meet with customers at locations in Virginia, Maryland, and the District of Columbia, and took half of the money paid to the girl after she engaged in sex with customers for money.
Chapman’s co-defendant, Ronnie Holmes, previously pleaded guilty to sex trafficking of a child.
This case was investigated by the Federal Bureau of Investigation and the Fairfax County Police Department. Special Assistant United States Attorney Stacey Luck and Assistant United States Attorney Michael J. Frank are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.District Man Sentenced to Two Years in Prison for Producing and Selling False Identification DocumentsDefendant Is Among Seven People to Plead Guilty Following Federal Investigation of Ring in Northwest WashingtonRead the Press Release
WASHINGTON – Rocio Sanchez-Flores, also known as “Amador,” or “Taliban,” has been sentenced to two years in prison for his role in a ring that produced and sold false identification documents in the Columbia Heights area of Northwest Washington.
The sentencing, which took place Oct. 16, 2013 in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr. and Scot Rittenberg, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Washington.
Sanchez-Flores, 30, was among seven defendants indicted in October 2012 in the U.S. District Court for the District of Columbia, following an investigation into sales of fraudulent identity documents near the Columbia Heights Metrorail station at 14th and Irving Streets NW. Like Sanchez-Flores, the other six defendants pled guilty to charges in the case.
Sanchez-Flores, of Washington, D.C., pled guilty in March 2013 to a conspiracy charge. He was sentenced by the Honorable Emmet G. Sullivan. As part of his plea agreement, Sanchez-Flores agreed to the forfeiture of $5,000.
Others pleading guilty to conspiracy include Jorge Castaneda, 39, also known as “Francisco Mendoza” and “George,” of Washington, D.C.; Victor Bedillo, 42, of Silver Spring, Md.; Juan Guarneros, also known as “Lobo,” 54, of Washington, D.C.; Javier Lopez, also known as “Pumba,” 46, of Washington, D.C.; Juan Lopez-Medina, also known as “Juanito,” 44, of Washington, D.C. , and Carlos Armando Rivas-Rivas, also known as “Paisa,” 42, of Silver Spring, Md. Except for Guarneros, all also pled guilty to a charge of transfer of fraudulent identity documents. Guarneros pled guilty to a charge of production of fraudulent documents.
Castaneda was sentenced in September 2013 to a 27-month prison term. The remaining five defendants were sentenced in June 2013. Bedillo was sentenced to nine months of incarceration. Guarneros was sentenced to 10 months of incarceration. Javier Lopez was sentenced to 18 months in prison. Lopez-Medina was sentenced to 10 months of incarceration, and Rivas-Rivas was sentenced to 405 days of incarceration.
All of the defendants also acknowledged that, because they are not U.S. citizens, they consent to removal from the country upon completion of their sentences.
According to a statement of offense, signed by the defendants as well as the government, members of the group participated in the ring from in or around March 2010 until October 2012, when authorities made arrests. The defendants produced and sold false documents, including permanent resident cards, employment authorization cards, Social Security cards, and State licenses and identification cards. Depending on the type and quality of fraudulent identity documents, the defendants charged customers between $40 and $200 per transaction.
Potential customers typically provided their photographs, names, dates of birth and the kinds of fraudulent documents they wanted to purchase. Documents were manufactured at Sanchez-Flores’s home in the 1500 block of Ogden Street NW.
Jorge Castaneda also was charged in a second case involving a separate group of individuals who sold fraudulent identity documents in the Columbia Heights area. Authorities arrested seven other members of that conspiracy, which was led by Maria Campos-Sanchez, 30, also known as “Betty.” Campos-Sanchez received a 24-month prison term, and the other defendants’ sentences were nine months of incarceration or higher.
The cases were investigated by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Washington, D.C. field office. The cases are being prosecuted by Assistant U.S. Attorneys Frederick Yette, T. Patrick Martin and Mona Sahaf, of the U.S. Attorney’s Office for the District of Columbia.
13-342District Man Sentenced to 23 Years in Prison for 2012 Murder in Northeast Washington-Defendant Shot Victim in Broad Daylight at A Busy Metro Bus Stop-Read the Press Release
WASHINGTON – Detrek Baker, 24, of Washington, D.C., was sentenced on Oct. 4, 2013 to 23 years in prison for the April 2012 slaying of a man at a Northeast Washington bus stop, U.S. Attorney Ronald C. Machen Jr. announced.
Baker pled guilty in April 2013, in the Superior Court of the District of Columbia, to a charge of second-degree murder. He was sentenced by the Honorable Herbert B. Dixon, Jr. Upon completion of his prison term, Baker will be placed on five years of supervised release.
According to the government’s evidence, on Saturday, April 28, 2012, the victim, James Sherrod, Jr., and a friend, both 22, walked to the U5 Metro bus stop in front of Mayfair Manor, in the 700 block of Kenilworth Terrace NE. Baker, who was carrying a red, black, and grey single-strap book bag, was standing at the bus stop along with several other young men.
For nearly an hour, the victim, Baker, and others stood at the bus stop, talking. At about 1:40 p.m., without provocation or warning, Baker pulled out a gun and shot Mr. Sherrod in the head. When the victim collapsed, Baker stood over him and fired additional bullets into his body.
Immediately after the shooting, Baker ran toward 800 Kenilworth Avenue NE. Eyewitnesses observed him pause beside one of the trash dumpsters there while running away; later they directed the police to those dumpsters. Inside one of the dumpsters was a red, black, and grey single-strap book bag and a .357 revolver. Inside the revolver were five spent casings and one live round. Two bullets were recovered from Mr. Sherrod’s body during an autopsy; police determined that those bullets were fired from the .357 revolver found in the dumpster.
Individuals at the bus stop as well as several members of the community spoke with law enforcement. They reported what they had observed at the bus stop. These eyewitnesses were instrumental not only in helping the police identify Baker as the shooter within hours of the murder, but also in strengthening the evidence against him, ultimately resulting his guilty plea.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Ethel Gregory, Marian Russell, and Kendra Johnson; Lead Paralegal Specialist Sharon Newman; Victim/Witness Advocate Marcia Rinker, and Intelligence Specialists Lawrence Grasso, Shannon Alexis, Sharon Johnson, and William Hamann. Finally, U.S. Attorney Machen recognized former Assistant U.S. Attorney J.P. Cooney and Assistant U.S. Attorney Kimberley Nielsen, who investigated and prosecuted the case.
13-344Detroit Tax Preparer Sentenced for Aiding in Fraudulent ReturnsRead the Press Release
A former tax preparer was sentenced today to a term of imprisonment of one year and one day and was ordered to pay restitution to the IRS in the amount of $74,000 after having been convicted of one count of willfully aiding in the preparation and filing of fraudulent income tax returns, United States Attorney Barbara L. McQuade announced.
Ms. McQuade was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation.
Anthony Womack, 57, of Detroit, was sentenced by U.S. District Judge Gerald Rosen in Detroit. Mr. Womack pleaded guilty to the charge on July 15, 2013.
From approximately 2008 through 2010, Womack prepared tax returns in Southfield, Michigan, under the name “Tax Consultants Inc.” Womack prepared and filed federal income tax returns for 2008 through 2010, which he knew were fraudulent, with the Internal Revenue Service in the name of various taxpayers. The returns were filed with inflated charitable contributions, false unreimbursed employee expenses, and false education credits. Womack caused a tax loss of more than $96,000 to the United States by his fraudulent conduct. In addition, Womack did not claim the income from his tax preparation business on his personal income tax returns.
Erick Martinez, Special Agent in Charge stated, “IRS, criminal investigators uncovered Mr. Womack’s illegal activity and he is now paying the price for his actions.”
The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Deltona Man Sentenced to 15 Years in Prison for Firearm and Narcotics CrimesRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Albert Thompson, III (31, Deltona) to 15 years in federal prison for possessing a firearm as a convicted felon, possessing controlled substances with intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime. The court also ordered Thompson to forfeit three firearms as part of his sentence. Thompson pleaded guilty on July 23, 2013.
According to court documents, on October 23, 2012, officers from the Sanford Police Department responded to a residence in Sanford to investigate a shooting incident. The responding officers located Thompson at the residence along with other individuals. Further investigation led to the discovery of Thompson’s rental vehicle on the premises. Officers executed a search warrant on the vehicle and recovered two loaded firearms and an assortment of controlled substances including marijuana, oxycodone pills, crack/cocaine, and cocaine as well as a narcotics cutting agent and two scales suitable for weighing narcotics. Forensic analysis of the evidence revealed that Thompson’s DNA was present on one of the seized firearms and that his fingerprints were located on the exterior and interior of the rental vehicle.
Thompson has multiple prior felony convictions and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the Sanford Police Department and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
It is another case prosecuted as a part of the Department of Justice's "Project Safe Neighborhoods" program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Delaware Man Sentenced to 10 Years in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – James Powell, 49, of Bridgeville, Del., was sentenced on Oct. 1, 2013, to 10 years in prison on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Powell pled guilty to the charges in April 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Reggie B. Walton. Powell was convicted in Prince George’s County, Maryland in 1997 of third-degree sexual abuse in a case that involved a child and was therefore subject to a 10-year mandatory minimum sentence. Following completion of his prison term, Powell will be placed on 20 years of supervised release. He also will be required to register as a sex offender for 25 years after his prison term.
According to the government's evidence, on Sept. 10, 2012, Powell contacted an undercover officer with the FBI's Child Exploitation Task Force, who had entered a social network site frequented by individuals with a sexual interest in children. Over the next few days, Powell engaged in online e-mail, instant message, and text message conversations with the undercover officer, whom Powell believed was the father of an under-aged girl. During this period of time, Powell arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child. During the course of their communications, Powell also sent the undercover officers two images of child pornography.
On Sept. 12, 2012, Powell traveled from Delaware to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested. He has been in custody ever since.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agent of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-343Deland Man Sentenced to More Than Seven Years for Possession of Child PornographyRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Colby William Ochsenhirt (35, DeLand) to seven years and five months in federal prison for possession of child pornography. He pleaded guilty on May 29, 2013.
According to court documents, the investigation began when an Internet website reported to the National Center for Missing and Exploited Children (NCMEC) that a specific Internet Protocol (IP) address was engaged in a "video chat" depicting child pornography. Law enforcement officials determined the location of the IP address and interviewed Ochsenhirt. During the interview, Ochsenhirt admitted that he viewed the child pornography video and that he did not know whether the video was live streaming or not, meaning that he did not know if the child was being victimized at the time that he viewed it. Ochsenhirt admitted that he sought videos of children being victimized in live time and had been doing so for five to six months. Search warrants were executed upon computers and hard drives located at Ochsenhirt’s home and place of employment. Forensic analysis revealed that Ochsenhirt possessed more than 1,700 images and 240 videos containing child pornography.
“Possessing child pornography is not a victimless crime. It haunts the children depicted in it, who live daily with the knowledge that countless strangers use an image of their worst experiences for their own gratification,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. “Our local law enforcement partners play an essential role in helping us arrest and prosecute these child predators.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Volusia County Sheriff’s Office, and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Davenport Man Sentenced for Bank RobberyRead the Press Release
DAVENPORT, IA - On October 18, 2013, Ceneca Romale Johnson, age 32, from Davenport, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 262 months in prison, for bank robbery, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey ordered Johnson to serve five years of supervised release following imprisonment, and pay $100 towards the Crime Victims Fund. No fine was imposed. In June of 2013, Johnson pled guilty to robbing the Southeast National Bank in Davenport, Iowa, while armed with an imitation pistol. Johnson was apprehended a short distance from the bank by officers of the Davenport, Iowa, Police Department that same day. The stolen money was recovered.
This case was investigated by the Davenport, Iowa, Police Department and the Federal Bureau of Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Credit Union Supervisor Pleads Guilty to Embezzling More Than $437,000Read the Press Release
PROVIDENCE, R.I. – Crystal Ferreira, 27, of Fall River, Mass., faces up to 30 years in federal prison when she is sentenced in January, having pled guilty on October 4, 2013, to embezzling more than $437,000 from a Columbus Credit Union branch office in East Providence where she was employed as a supervisor, announced United States Attorney Peter F. Neronha; East Providence Police Chief Joseph H. Tavares; and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
At the time of her guilty plea to one count of embezzlement from a federally insured credit union, Ferreira admitted to the court that beginning in May 2012 she began taking large sums of money from the credit union’s vault, ATM, and cash shipments delivered to the credit union. According to information presented to the court, on September 18, 2012, during an investigation by East Providence Police into an unrelated robbery of the credit union, Ferreira admitted that she had been embezzling funds. She told police she embezzled the funds in response to a demand for cash being made to her by two men she said threatened her, her co-workers and their families. She later recanted the story of the demand for cash and the threats.
Ferreira admitted to the court that beginning in May 2012, she first took $10,000 from the vault, and replaced it with money from the ATM. She took another $10,000 a few weeks later. On another day, Ferreira admitted to the court, on several occasions she placed as much bundled cash as she could in shopping bags which she later removed from the credit union. In addition, Ferreira admitted to embezzling two bulk money shipments of $65,000 each which were delivered to the branch office but which she never entered into the computer system. A Credit union audit determined that Ferreira embezzled $437, 250.
Ferreira is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on January 9, 2014. At sentencing, Ferreira faces statutory penalties of up to 30 years in federal prison to be followed by up to 5years supervised release and a fine of up to $1,000,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams and Special Assistant U.S. Attorney Benjamin S. Towbin.
The matter was investigated by East Providence Police with the assistance of the FBI.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Convicted Felon Living in Fort Worth Is Sentenced to 78 Months in Federal Prison on Federal Firearm ConvictionRead the Press Release
AMARILLO, Texas — A Fort Worth, Texas, resident, Bounthieng Sommay, 39, was sentenced on Tuesday, October 15, 2013, by U.S. District Judge Mary Lou Robinson, to 78 months in federal prison following his guilty plea in August 2013 to one count of being a convicted felon in possession of a firearm, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Sommay, a Laotian immigrant in the U.S. illegally, has been in federal custody since May 15, 2013, when he was arrested in the Dallas/Fort Worth area on various charges outlined in a federal indictment.
According to the factual resume filed in the case, on March 5, 2013, FBI special agents executed a search warrant at Sommay’s residence, as well as at his relatives’ residence, both located on Cane River Road in Fort Worth. At Sommay’s residence, agents found a .45 caliber semi-automatic handgun and ammunition. At his relatives’ residence, agents found two firearms, one having an obliterated serial number. Sommay admitted he owned all of the firearms.
Sommay is a convicted felon, having been convicted in South Dakota in 2008 for possession with the intent to distribute controlled substances.
At the sentencing hearing, Judge Robinson also ordered that Sommay forfeit the firearms to the government.
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Potter County Attorney’s Office. Assistant U.S. Attorney Vicki Lamberson is in charge of the prosecution and Assistant U.S. Attorney John de la Garza is handling the forfeiture.
Concord Resident Pleads Guilty to Multiple Fraud ChargesRead the Press Release
CONCORD, N.H. – Betty Dugan, 54, of Concord, New Hampshire has pled guilty in United States District Court for the District of New Hampshire to charges that she knowingly used false information to obtain benefits from government programs that are solely intended to provide financial assistance to impoverished individuals and families, announced United States Attorney John P. Kacavas.
From January 2003 to April 2012, Dugan received benefits totaling more than $250,000 from the Social Security Administration’s Supplemental Income program, the United States Department of Housing and Urban Development’s Section 8 Housing program, the United States Department of Agriculture’s Food Stamp program, and the United States Department of Health and Human Services’ Financial Assistance to Needy Families and Aid to Permanently Disabled Persons programs.
Dugan admitted that she obtained the benefits by falsely reporting to the affected government agencies that her husband was not a member of her household and that he did not contribute any income to the household when, in fact, her husband was a member of the household and his annual salary ranged from $69,500 to $89,000.
Dugan is facing a up to 10 years in prison and a fine of up to $250,000. She is scheduled to be sentenced on January 21, 2014.
The case was investigated by the Social Security Administration, Office of Inspector General; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Department of Agriculture, Office of Inspector General; the New Hampshire Housing and Finance Authority and; the New Hampshire Department of Health and Human Services. It is being prosecuted by Assistant United States Attorney Robert Kinsella.
Computer Technology Firm CEO Pleads Guilty to Bank Fraud, Money LaunderingRead the Press Release
PROVIDENCE, R.I. – Sojin Lim, 60, of East Greenwich, R.I., Chief Executive Officer and Vice President of General Technologies Corporation, d/b/a CompUtopia, pled guilty in U.S. District Court in Providence on October 15, 2103, to one count each of bank fraud and money laundering, having defrauded the Rockland Trust Company of more than $5 million dollars, announced United States Attorney Peter F. Neronha; John G. Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service Criminal Investigation; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Lim admitted that she devised a scheme to defraud Rockland Trust Company in order to satisfy a demand for repayment of a $5 million dollar line of credit with Citizens Bank. Lim admitted to the court that she falsified bank documents and overstated company revenues in order to secure funding from Rockland Trust to finance repayment of the line of credit.
According to information presented to the court, in the spring of 2011, Lim and CompUtopia were informed that their line of credit would no longer be carried by Citizens Bank and that CompUtopia was required to seek funding elsewhere. Lim admitted to the court that she devised a scheme to obtain the funding from Rockland Trust Company by providing false, fraudulent and fictitious information and documentation. Lim falsely stated CompUtopia’s accounts receivables as $7,066,268.04, when in fact CompUtopia’s accounts receivables were substantially less. In June 2011, based on the information and documents provided to Rockland Trust Company, the bank deposited $4,878,378.85 in an account which benefited CompUtopia. In April 2012, the Rockland Trust Company loan was increased to $5,350,000.
According to information presented to the court, in late June 2011, Lim paid Citizens Bank $5,342,997.72 from funds provided by Rockland Trust and from a $464,610.37 loan taken against personal assets. CompUtopia filed for receivership in June 2012.
At sentencing on January 14, 2014, Lim faces statutory penalties of up to 30 years in federal prison; a fine of $250,000; and 5 years supervised release for bank fraud; and up to 10 years in federal prison; a fine of $250,000; and 3 years supervised release for money laundering.
The case is being prosecuted by Assistant U.S. Attorneys John P. McAdams and Sandra R. Hebert.
The matter was investigated by Internal Revenue Service Criminal Investigation, the FBI and Rhode Island State Police.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Columbia Sex Offender Pleads Guilty to Failure to RegisterRead the Press Release
On September 16, 2013, Devereaux L. Davis, a thirty-six year old Columbia, Illinois, man pled guilty in federal district court, in East St. Louis, for failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Davis is scheduled for sentencing on January 22, 2014, at which time he faces a prison term of up to ten (10) years, a fine up to $250,000, or both, a term of supervised release of five (5) years after his prison term, and a mandatory special assessment of $100.
The violation occurred in 2009, when Davis failed to register within three days of his move from Illinois to Missouri, as required under both Illinois law and the Sex Offender Registration and Notification Act. Davis had been previously convicted of Aggravated Criminal Sexual Abuse on September 15, 2005, in Monroe County, Illinois. He acknowledged that he understood the conditions of maintaining his sex offender registration requirements by signing an Illinois Sex Offender Registration Act Notification Form on August 14, 2008.
Davis first registered as a sex offender in the State of Missouri on June 25, 2009, only after his arrest on July 17, 2009, in Granite City, Illinois, for failure to register. Davis fled the bi-state area between 2010 and March, 2013. He returned to Missouri and was arrested in St. Louis in April, 2013, on a felony warrant out of Granite City, Illinois. In an interview conducted by the United States Marshal Service for non-compliance, Davis admitted to having lived in Missouri for approximately one year, after signing the Illinois registration notification form and moving out of the state when the violation occurred. Davis had not registered as a sex offender in Missouri, nor had he updated his sex offender registration form in Illinois.
Due to his failure to register in Missouri and his failure to update his registration in Illinois, the defendant was charged federally with Failure to Register as a Sex Offender pursuant to the Sex Offender Registration and Notification Act.
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 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.”
The case was investigated by the United States Marshal Service and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Columbia Business Operators Indicted in $2 Million Conspiracy to Distribute Synthetic DrugsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner and operators of Bocomo Bay, a Columbia, Mo., retail business, have been indicted by a federal grand jury for their roles in a conspiracy to distribute more than $2 million of synthetic marijuana, commonly referred to as K2.
Kevin E. Bay, 44, and John Hawkins, 61, both residents of Columbia, were charged in a 21-count indictment returned under seal by a federal grand jury on Oct. 2, 2013. Bay is the owner of Bocomo Bay; Bay and Hawkins operate the business together. The indictment was unsealed and made public today following the initial court appearances of Bay and Hawkins, who self-surrendered to federal authorities this morning and were released on bond.
The federal indictment alleges that Bay and Hawkins participated in a conspiracy to distribute controlled substance analogues, also known as synthetic marijuana or K2, from March 1, 2011, to Oct. 2, 2013. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
The indictment also alleges that Bay and Hawkins participated in a conspiracy to distribute drug paraphernalia from Nov. 1, 2008, to Oct. 2, 2013. Bay is also charged with participating in a money-laundering conspiracy from March 1, 2011, to Oct. 2, 2013. The indictment alleges that Bay conducted financial transactions that involved the proceeds of the illegal drug-trafficking conspiracy. Bay is also charged with seven counts of money laundering.
In addition to the conspiracies, Bay and Hawkins are charged together in four counts of distributing a controlled substance analogue, one count of possessing a controlled substance analogue with the intent to distribute and five counts of distributing drug paraphernalia.
Hawkins is also charged with one count of being a felon in possession of firearms. The indictment alleges that Hawkins, who has previously been convicted of a felony, was in possession of a Taurus 9mm pistol and a Taurus .22-caliber revolver on Aug. 29, 2011.
The federal indictment also contains forfeiture allegations, which would require Bay and Hawkins to forfeit to the government $2,068,686 (obtained from the drug-trafficking and drug paraphernalia conspiracies) as well as items that were seized by law enforcement officers from Bocomo Bay and from the residence shared by Bay and Hawkins: $638,202, four one-ounce platinum bars, five one-ounce palladium bars, five one-ounce gold bars, a ¼-ounce gold bar, a 10-ounce gold bar, 33 silver bars of various weights (up to 100 ounces), a counterfeit Rolex watch, 10 pieces of miscellaneous jewelry, 2,039 miscellaneous gold and silver coins, 76 firearms (including an Uzi submachine gun, handguns, rifles and shotguns) and miscellaneous ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by the Drug Enforcement Administration.
Synthetic Designer Drugs
Over the past several years, smokable herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular, particularly among teens and young adults, because they are easily available and, in many cases, they are more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These synthetic cannabinoids are sold at a variety of retail outlets, in head shops and over the Internet. Brands such as K2, Spice, Blaze, and Red X Dawn are labeled as incense to mask their intended purpose. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
While many of the designer drugs being marketed today are not specifically prohibited in the Controlled Substances Act, the Controlled Substance Analogue Enforcement Act allows these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance. This analogue provision specifically exists to combat these new and emerging designer drugs.Chester County Woman Charged in Fraud SchemeRead the Press Release
Barbara Stanley, 60, of Nottingham, Pennsylvania was charged by Indictment , filed October 15, 2013, with a scheme to defraud the government regarding worker compensation benefits, announced United States Attorney Zane D. Memeger. Stanley is charged with five counts of wire fraud, two counts of theft of Government funds, one count of false statements, and three counts of false or fraudulent statements regarding workers= compensation benefits. The indictment alleges that between July 2006 and December 2010, Stanley continued to collect workers= compensation payments from the Department Of Labor=s Office of Workers= Compensation Programs even after she had recovered from her alleged work related injury. Defendant=s misrepresentations resulted in the defendant receiving an overpayment of approximately $164,428.20, which she knew she was not entitled to receive.
The indictment further alleges that Stanley received $50,094 in Office of Personnel Management disability retirement benefits that she knew she was not entitled to receive. She wrongfully converted to her own use at least $37,639.64 of those funds, resulting in total losses to the government of approximately $202,067.84
If convicted of all charges, the defendant faces a maximum possible statutory sentence of more than 100 years in prison, a $2.75 million fine, and three years supervised release.
The case was investigated by the United States Postal Service Office of the Inspector General, the Department of Labor Office of the Inspector General, and the Office of Personnel Management Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
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An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Camden County Man Sentenced to 63 Months in Prison for Illegal Sale of 14 GunsRead the Press Release
CAMDEN, N.J. – A Camden County, N.J., man was sentenced today to 63 months in prison for selling guns without a license and illegally possessing firearms, U.S. Attorney Paul J. Fishman announced.
Eric J. Reed, 45, of Pennsauken, N.J., previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of dealing firearms without a license and one count of transferring a firearm to a previously convicted felon.
According to documents filed in this case and statements made in court:
Between May 2012 and August 15, 2012, Reed bought 14 firearms – five pistols, seven handguns and two rifles – from Pennsylvania gun shops and gun shows, which he then transferred for resale to his nephew, Ammie Steward, a/k/a “Beav,” a/k/a “B,” 38, of Pennsauken, a previously convicted felon who served a substantial prison term for manslaughter. Steward then resold the firearms.
Reed purchased the firearms in Pennsylvania after fraudulently obtaining a Pennsylvania driver’s license, then sold the weapons to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Reed also admitted to using a power tool to obliterate the serial numbers on the 14 guns. A number of the firearms were sold along with ammunition magazines and seven of the guns were sold along with high-capacity magazines. On at least one occasion, Reed purchased and gave to Steward for resale a firearm (a Kel Tec PLR-16 .223-cal. pistol) along with a box of ammunition. On a separate occasion, Reed purchased and then transferred to Steward for resale a rifle with a bayonet. All 14 weapons are now in the custody of law enforcement.
In addition to the prison term, Judge Bumb sentenced Reed to serve three years of supervised release. Steward has pleaded guilty to related charges and awaits sentencing.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge Thomas J. Cannon, with the investigation leading to today’s guilty plea. He also thanked the Pennsauken Police Department, under the direction of Chief John J. Coffey.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.13-402
Defense counsel: Ralph Jacobs Esq., Philadelphia
Cahokia Woman Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 16, 2013, Karashia A. Tabbs, 45, of Cahokia, Illinois, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. Sentencing has been set for January 23, 2014, in United States District Court in East St. Louis, Illinois. Tabbs will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During her plea hearing, Tabbs admitted that she had submitted false and fraudulent bills in relation to her alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Tabbs admitted to falsely billing the program between June and November of 2012, when the person for whom she was supposed to be caring for was actually residing in the state of Texas.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or you may call 800.447.8477.
Bucks County Lawyer Indicted on Tax and Identity Theft ChargesRead the Press Release
PHILADELPHIA - Randolph Scott, 70, of Doylestown, PA, an attorney whose practice included estate and probate matters, was charged by Indictment on October 3, 2013, with defrauding a client’s estate of more than $1.7 million. Scott maintained a law office – Randolph Scott Associates – in Warrington, PA. He is charged with one count of mail fraud, two counts of aggravated identity theft, one count of tax evasion, one count of attempting to interfere with administration of internal revenue laws and three counts of failure to file income tax returns.
According to the indictment, between December 2005 and October 2011, while representing the estate of John C. Bready, Scott diverted approximately $1,758,193 of estate funds to his law office accounts. Because the estate was valued at more than $6 million at the time of Bready’s death in 2005, federal law required that a federal estate tax return be filed which would have resulted in approximately $520,351 being paid to the Internal Revenue Service. The indictment alleges that Scott purposefully failed to file the required form in order to maintain sufficient money in the estate to pay its beneficiaries and to avoid detection of the theft.
The indictment further alleges that after the estate’s executor died in 2009, Scott failed to disclose the death so that the investment account manager would continue to send the executor’s checks to Scott’s law firm. Scott would then allegedly forge the executor’s signature and deposit the checks into his law firm’s account. It is further alleged that Scott has the successor executor sign a document renouncing the position of successor executor so that Scott could continue to forge the signature of the deceased executor and divert money belonging to the estate. In addition to the charges, the indictment contains a notice of forfeiture seeking $1,758,193.
If convicted of all charges, Scott faces a mandatory minimum of two years in prison, consecutive to any other term of imprisonment imposed on the mail fraud count, resulting in 31 years maximum incarceration, possible restitution to the IRS in the amount of $520,351, possible restitution to the estate in the amount of $1,758,193, three years of supervised release, a $1.4million fine, and a $500 special assessment.
The case was investigated by the IRS Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Judy G. Smith.
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, 215-861-8525Bristol Man Who Admitted to Stealing More Than A Dozen Firearms Sentenced to 10 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – David Welch, 42, of Bristol, who admitted to a federal court judge that he stole more than a dozen firearms from a Rhode Island residence, was sentenced on October 1, 2013, to 120 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Welch to serve 3 years of supervised release upon completion of his prison term. In July, Welch pled guilty to being a felon in possession of a firearm, admitting to the court that in December 2012 he broke into a Portsmouth, R.I., home and stole more than a dozen firearms.
At the time of his guilty plea, Welch admitted that five firearms, a revolver and four semi-automatic handguns, seized by law enforcement from his residence during a court authorized search on December 27, 2012, were among the firearms stolen from the Portsmouth home. Welch admitted that he stole the firearms for the purpose of selling some or all of them. Welch admitted that prior to his arrest he had already sold or transferred several of the stolen firearms. Two of those firearms were later recovered by law enforcement.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Portsmouth, Bristol, Newport and North Kingstown Police Departments and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Bridgeport, Illinois Mayor Sentenced on Charges of Mail Fraud and Obstruction of JusticeRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on October 17, 2013, Max R. Schauf, 56, of Bridgeport, Illinois, was sentenced to 18 months in prison, a $5,000 fine and 3 years of supervised release, after pleading guilty to three counts of mail fraud and one count of obstruction of justice in United States District Court in Benton, Illinois. The court also ordered Schauf to pay $54,288.74 in restitution to the City of Bridgeport.
On November 6, 2012, Schauf, the then Mayor of the City of Bridgeport, in Lawrence County, Illinois, was indicted along with Paul R. Kramer, of Vincennes, Indiana. At his plea, Schauf admitted that from July of 2008 until March of 2011, he had engaged in a scheme to defraud the City of Bridgeport, as well as its residents by submitting false and fraudulent invoices, contracts and bills for services and equipment. Schauf also admitted that on November 10, 2011, he had obstructed justice by telling another person to give false and misleading information to the Federal Bureau of Investigation (FBI) regarding the investigation into his (Schauf’s) fraudulent activities.
Schauf’s co-defendant, Paul R. Kramer, pled guilty on March 20, 2013, to two counts of Making False Statements to the FBI and is scheduled to be sentenced in United States District Court on October 31, 2013. He faces up to 5 years of imprisonment, a $250,000 fine, and up to years of supervised release on each count.
The case was investigated by agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
Boston Scientific and Subsidiaries to Pay $30 Million for Guidant’s Sale of Defective Heart Devices for Use in Medicare PatientsRead the Press Release
Boston Scientific Corp. and its subsidiaries, Guidant LLC, Guidant Sales LLC and Cardiac Pacemakers Inc. (Guidant), have agreed to pay $30 million to settle allegations that, between 2002 and 2005, Guidant knowingly sold defective heart devices to health care facilities that in turn implanted the devices into Medicare patients, the Justice Department announced today. Boston Scientific acquired Guidant, a medical device manufacturer, in 2006.
“Medicare patients who depend on cardiac defibrillators should not have to worry about whether their devices will work when they are needed,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “This settlement, along with the prior criminal prosecution of Guidant, demonstrates that there will be significant consequences when companies engage in conduct that threatens health and safety and violates the law.”
The Guidant devices at issue are implantable defibrillators, used in patients at risk of cardiac arrest due to an irregular heartbeat. The devices are surgically implanted into patients’ chests, and when the devices detect an irregular heartbeat, they send an electrical pulse to the heart to “shock” it back to its normal rhythm. The government’s complaint alleged that two lines of implantable cardiac devices manufactured and sold by Guidant, known as the Prizm 2 and the Renewal 1 and 2, contained a defect that resulted in “arcing.” Arcing occurs when the device detects the irregular heartbeat and delivers a shock, but instead of the current traveling to the heart, the current “arcs” back to the device itself. This causes the device to short circuit, rendering the device ineffective.
The government alleged that Guidant learned as early as April 2002 that the Prizm was defective, and as early as November 2003 that the Renewal 1 and 2 were similarly defective. Nevertheless, although Guidant took corrective action to fix the defects, the company continued to sell its remaining stock of the old, defective versions of the devices. The government alleged further that, as Guidant learned about the cause of the defect, it took steps to hide the problem from patients, doctors and the Food and Drug Administration (FDA). Instead of disclosing the problem, Guidant issued a misleading communication to doctors regarding the nature of the defect and did not fully disclose the problem with the devices to doctors and the FDA until May 2005, after first being contacted by a New York Times reporter. Subsequently, the company recalled the devices after a front-page article about the defects appeared in The New York Times.
“The United States is fortunate that innovative health care companies regularly develop and market remarkable medical devices that improve patients’ lives,” said John R. Marti, Acting U.S. Attorney for the District of Minnesota. “But in this case, Guidant valued profits more than patient safety by selling defective cardiac defibrillators. This office, along with several other components within the U.S. Department of Justice, will continue to vigorously investigate and take appropriate action against health care companies that place public safety at risk.”
In February 2010, Guidant pleaded guilty to criminal charges of misleading the FDA and failing to submit a labeling change to the FDA relating to the defective devices. In 2011, the government joined a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by James Allen, who had received one of the defective devices. Under the Act, a private citizen, known as a “relator,” can sue on behalf of the government and share in any recovery. As part of the resolution, Allen will receive $2.25 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $16.7 billion through False Claims Act cases, with more than $11.9 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the Justice Department’s Civil Division, Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Minnesota, with assistance from the Department of Health and Human Services’ Office of Inspector General and Office of General Counsel and the FDA’s Office of Criminal Investigations and Office of Chief Counsel.
Except for the conduct admitted in connection with the criminal plea, the claims resolved today are allegations only, and there has been no determination of liability. The civil case is United States ex rel. Allen v. Guidant LLC et al., No. 11-CV-22 (D. Minn.).
Associate of Former Moberly Correctional Center Inmate Sentenced on Federal Conspiracy ChargesRead the Press Release
St. Louis, MO –ANTHONY JOHNSON and his two associates referred to themselves as the "Hilton" family. Between July 2009 and March 2011, Johnson engaged in a conspiracy to steal identification information of unsuspecting victims, open new credit accounts using the stolen identities and use the fraudulent credit accounts to deposit money into the accounts of inmates at the Moberly Correctional Center (MCC). According to court documents, once they obtained credit accounts they wire transferred money into the accounts of inmates, which was then sent to Johnson's co-defendants and other people outside of MCC.
Co-defendant Timothy Moore, Memphis, TN, was sentenced October 16 to 37 months in prison for conspiracy to commit identity theft.
Anthony Johnson, was sentenced in May to 60 months in prison and ordered to pay restitution in excess of $80,000. Co-defendant Cedric Walton, Memphis, TN, was sentenced in August to 18 months in prison. All defendants were sentenced by United States District Judge Henry Autrey.
This case was investigated by the Postal Inspection Service, the Federal Bureau of Investigation, the Moberly, Missouri Police Department and the Missouri Department of Corrections. Assistant United States Attorney Reginald Harris handled the case for the U.S. Attorney's Office.
Armed Robber Exiled to 25 Years in PrisonRead the Press Release
Robbed An Armored Car Employee
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Alton May, age 49, of Washington, D.C., today to 25 years in prison, followed by five years of supervised release, for the robbery of an armored car employee. Judge Titus enhanced May’s sentence upon finding that he is a career offender based on previous drug and assault convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to May’s plea agreement, on May 3, 2011, he and a co-defendant, both armed with handguns, robbed an armored car employee at a convenience store in Glenarden, Maryland. The employee was at the convenience store to refill the ATM machine located in the store. The employee gave May and his co-defendant the money bag and one of the robbers also stole the employee’s handgun. The robbers fled on foot to an apartment complex behind the store where they got into May’s car and proceeded to his residence. On the way, they took the money from the bag and threw the bag in a dumpster. Once they arrived at May’s residence they located and destroyed a GPS tracking device which was in the money. May and his co-defendant threw the cash, three handguns and two baseball caps used in the robbery onto the roof of the building, then jumped out of the window. The GPS device allowed law enforcement to track the money from the convenience store to the dumpster and to May’s residence, where they recovered the cash, guns and hats from the roof. One of the guns recovered was the one stolen from the armored car employee. Officers also recovered pieces of the broken GPS tracker in May’s apartment and an individual in the area identified May as one of the people he saw jump out of the window of May’s apartment.
May initially fled to New York, but was arrested in Montgomery County on November 7, 2011, when he fled from officers who were attempting to perform a traffic stop on the car May was driving.
United States Attorney Rod J. Rosenstein commended the FBI, ATF, Prince George’s County Police Department, Montgomery County Police Department and Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnson and Leah J. Bressack, who prosecuted the case.
Wednesday 16 October 2013
New Castle Woman Gets Probation with Home Detention for Stealing Sons' Social Security BenefitsRead the Press Release
PITTSBURGH – A Lawrence County woman was sentenced today in federal court to three years probation with five months home detention on her conviction of theft of government property, United States Attorney David J. Hickton announced today.
Senior United States District Court Judge Donetta W. Ambrose imposed sentence upon Toni Ann Badger, 55, of New Castle, Pa.
According to information presented to the court, Badger converted to her own use the Supplemental Security Income benefits of her sons while acting as their representative payee. From July 1, 2005 to April 1, 2009, Badger converted benefits totaling $57,052.00, knowing that she was not entitled to such benefits.
Prior to imposing sentence, Judge Ambrose took into consideration the defendant's lack of criminal history and her acceptance of responsibility.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Special Agents of the Social Security Administration, Office of Inspector General, who conducted the investigation that led to the successful prosecution of Badger.
Man Caught in Forged Check Scheme Also Evaded TaxesRead the Press Release
PITTSBURGH – A resident of Allegheny County pleaded guilty in federal court to charges of bank fraud and tax evasion, United States Attorney David J. Hickton announced today.
Kevin R. Gallagher pleaded guilty to two counts before United States District Court Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that from November 2010, and continuing until January 2012, Gallagher knowingly executed a scheme to defraud First Niagra Bank. In connection with the scheme to defraud, Gallagher fraudulently obtained corporate checks of his employer, A&S Steel Buildings Corporation, made payable to subcontractors and forged the signatures of the subcontractor payees. It was a part of the scheme that Gallagher deposited the forged checks, which totaled $179,695, into his personal bank account at First Niagra Bank. Gallagher also willfully evaded income tax owed by him for tax year 2011. The total amount of tax loss to the federal government as a result of Gallagher's tax evasion is $53,151.
Judge McVerry scheduled sentencing for Jan. 23, 2014, at 9:30 a.m. The law provides for a maximum total sentence of not more than 35 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Gallagher on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the United States Internal Revenue Service, Criminal Investigation, conducted the investigation that lead to the prosecution of Gallagher.
Former Financial Aid Advisor Sentenced for Stealing over $62,000 in Student Financial AidRead the Press Release
BOSTON – A former financial aid advisor at a Brockton training school was sentenced today for stealing $84,298 in student financial aid.
Ayana Bean, 39, of Hyde Park, was sentenced to 12 months and a day in prison for theft or bribery concerning programs receiving federal funds.
Sullivan and Cogliano Training Centers (SCTC) is a for-profit career training school that offers certificate programs in information technology and other careers. The office of Federal Student Aid within the U.S. Department of Education administers financial aid to eligible students attending educational institutions around the country. Whenever an educational institution, such as SCTC, disburses federal financial aid funds by crediting a student’s account, and the total amount of all federal financial aid funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges, the institution must pay the resulting credit balance directly to the student, often in the form of what is known as a federal financial aid refund check.In July 2010, Bean was employed by SCTC as a financial aid advisor. As part of her responsibilities, Bean also had access to SCTC students’ federal financial aid refund checks. On Aug. 15, 2012, a SCTC student contacted SCTC about the status of her federal financial aid refund check. SCTC staff determined that Bean had stolen the student’s check, forged the student’s endorsement, and deposited the check into a personal bank account. A subsequent investigation revealed that Bean had mishandled and stolen approximately 100 federal financial aid refund checks between June 2011 and August 2012. ATM surveillance images show Bean depositing some of the checks into her personal bank accounts.
In December 2005, Bean was convicted in Suffolk Superior Court on multiple counts of uttering false and forged records and larceny. In that case, Bean stole just under $240,000 worth of federal financial aid refund checks from two local colleges. Bean was sentenced to two years in prison; she served six months of that sentence followed by three years of probation.
United States Attorney Carmen M. Ortiz; Brian Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General; and Chief Emanuel Gomes of the Brockton Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Maxim Grinberg of Ortiz’s Major Crimes Unit.
Elizabeth, Pa., Man Sentenced to A Year in Prison for Making Counterfeit CurrencyRead the Press Release
PITTSBURGH - A resident of Elizabeth, Pa., has been sentenced in federal court to one year and one day on his conviction of conspiracy to make counterfeit United States currency and making counterfeit United States currency, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Justin S. Holliday, 29, of as the sole defendant.
According to information presented to the court, Holliday was charged with conspiracy and the making of counterfeit currency, during the period June 21, 2012, through June 24, 2012.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Holliday.