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4 December 2013
San Antonio Bookeeper Sentenced to Federal Prison in Connection with A Million Dollar Bank Fraud and Identity Theft SchemeRead the Press Release
In San Antonio this afternoon, 50-year-old Sandra Sanchez Gonzalez was sentenced to 57 months in federal prison followed by three years of supervised release and ordered to pay a $1,074,096.36 in restitution for her role in a bank fraud and identity theft scheme announced United States Attorney Robert Pitman.
On August 1, 2013, Gonzalez pleaded guilty to one count of bank fraud and one count of aggravated identity theft. By pleading guilty, Gonzalez admitted that while employed by Allegro, LTD., from September 2006 until July 2011, she stole money from Allegro by forging the owner’s signature on company checks and also fraudulently obtained credit cards under the company name to pay for personal expenses. Gonzalez also admitted to stealing company funds by creating fictitious company pay stubs that incorrectly reflected that her son was employed by Allegro.
This investigation was conducted by agents with the U.S. Secret Service. Assistant United States Attorney Tom Moore prosecuted this case on behalf of the Government.
Rio Rico Tax Return Preparer and Assistant Sentenced for Filing False ReturnsRead the Press Release
TUCSON, Ariz. – On Dec. 3, 2013, Imelda Arredondo, 37, of Rio Rico, Ariz., and Yadira Moreno, 35, of Nogales, Ariz., were sentenced by U.S. District Judge Cindy K. Jorgenson. Each pleaded guilty to conspiring to defraud the United States by filing false federal income tax returns. Moreno was sentenced to 12 months and 1 day imprisonment. Arredondo, who also pleaded guilty to aggravated identity theft, was sentenced to 15 months imprisonment for conspiring with Moreno to defraud the government and a consecutive two year term of imprisonment for aggravated identity theft.
Arredondo, a tax return preparer in Rio Rico, filed false individual federal income tax returns with the Internal Revenue Service for the tax years 2008 through 2010 which included false refunds in the amount of at least $186,561. Arredondo used her clients’ tax returns to file and receive the inflated federal tax refunds by falsely inflating her clients’ wages, adding false dependents, and using false filing status all without her clients’ knowledge or permission. Moreno, Arredondo’s sister, was her tax preparation assistant.
Arredondo was ordered to pay $191,702 in restitution, including $172,353 to the U.S. Treasury. Moreno was ordered to pay $113,213 in restitution, including $93,864.47 to the U.S. Treasury.
The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigation Division. The prosecution was handled by Jane L. Westby, Assistant U.S. Attorney, District of Arizona, Tucson, and Danny N. Roetzel, Trial Attorney, Department of Justice, Tax Division.
CASE NUMBER: CR-4:13-CR-00151-CKJ-1
RELEASE NUMBER: 2013-092_Arredondo&MorenoFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Retirement of Criminal Chief John Marshall AlexanderRead the Press Release
OXFORD, Miss. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi, announced that:
On November 30, 2013, John Marshall Alexander, Chief of the Criminal Division for the United States Attorney’s Office for the Northern District of Mississippi, retired after more than 31 years of distinguished service. A 1981 graduate of the University of Mississippi School of Law, Mr. Alexander began his career at the U. S. Attorney’s Office in March, 1982. During his time with the U. S. Attorney’s Office, Mr. Alexander served as the Judicially appointed United States Attorney in 2010-2011 and as Criminal Chief from 2007 until his retirement. Also, Mr. Alexander served as the Project Safe Neighborhoods Coordinator, Anti-Gang Coordinator, Triggerlock Coordinator and Public Information Officer. In his various capacities, Mr. Alexander received numerous commendations and awards, including the Attorney General’s Special Achievement Award for Superior Performance of Duty. Mr. Alexander has extensive trial experience and, as Criminal Chief, he either tried or oversaw numerous cases which garnered national attention. Mr. Alexander intends to enjoy his retirement “for a while” until he finalizes his plans.
In honor of Mr. Alexander’s 31 years of service, a retirement reception will be held on Tuesday, December 17, 2013, at 2 o’clock p.m, at The Atrium of the First Baptist Church,800 Van Buren Avenue, Oxford, Mississippi. The public is invited to attend.
Ranking Midlothian Police Officer Charged with Federal Civil Rights Violations Involving Alleged Use of Excessive ForceRead the Press Release
CHICAGO ― A south suburban Midlothian police officer was indicted on federal civil rights charges alleging that he used excessive force against two different victims in separate beating incidents in 2010 and 2011. The defendant, STEVEN G. ZAMIAR, was indicted on two counts of violating the victims’ civil right to be free from the use of unreasonable force by a law enforcement officer. The two-count indictment was returned by a federal grand jury yesterday and was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Zamiar, 46, of Midlothian, joined the Midlothian Police Department in 2000. He was a detective sergeant at the time of the alleged beating in 2010 and was deputy chief when the alleged beating occurred in 2011. He was later demoted to lieutenant, and was placed on paid administrative leave this past September. He will be arraigned on a date yet to be scheduled in U.S. District Court.
According to the indictment, on Sept. 6, 2010, when he was a detective sergeant, Zamiar used excessive force, resulting in bodily injury, against Victim A. On Nov. 24, 2011, when he was deputy chief of the Midlothian Police Department, Zamiar allegedly used excessive force, resulting in bodily injury, against Victim B. During the November 2011 incident, Zamiar allegedly used, attempted to use, and threatened to use a dangerous weapon.
Each count carries a maximum penalty of 10 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Patrick Otlewski.
An indictment contains merely charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Postmaster Embezzled $13K+ from Rural Valley, Pa., Post OfficeRead the Press Release
PITTSBURGH - A resident of Export, Pennsylvania, pleaded guilty in federal court to a charge of misappropriation of postal funds, United States Attorney David J. Hickton announced today.
Lawrence F. Stoken, III, 47, pleaded guilty to 1 count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that while employed as the Postmaster at the Rural Valley, Pennsylvania Post Office, Lawrence F. Stoken, III embezzled approximately $13,255.90 from the sale of stamps and postal money orders during the period from October 2011 to March 2013.
Judge Cercone scheduled sentencing for April 17, 2014 at 10:00 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation that led to the prosecution of Stoken.
Pine Ridge Man Sentenced for AssaultsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of Assault with a Dangerous Weapon and Assault by Striking, Beating or Wounding was sentenced on December 2, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jon Craig Dillon, age 25, was sentenced to 37 months of imprisonment, 3 years of supervised release, and $100 to the Federal Crime Victims Fund for Assault with a Dangerous Weapon. For Assault by Striking, Beating or Wounding, Dillon was sentenced to 6 months of imprisonment and 3 years of supervised release, to run concurrently to the first sentence, and $25 to the Federal Crime Victims Fund.
Dillon pled guilty to the charges on August 2, 2013. The conviction stems from Dillon assaulting his female companion numerous times in 2012. The assaults resulted in injuries to the kidney and the head, choking injuries, and extensive bruising covering her body.
This case was investigated by the Bureau of Indian Affairs, Office of justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Dillon was immediately turned over to the custody of the U.S. Marshals Service.
Pill Dealer Sentenced to 10+ Years in Federal Prison for Operating A Logan-based Pain Pill Distribution SchemeRead the Press Release
Scheme involving thousands of prescription pain pills ends in jail time for Logan brothers
CHARLESTON, W.Va. – A Logan County man who organized an oxycodone trafficking scheme that included out-of-state trips to Florida to obtain thousands of powerful pain pills was sentenced yesterday to 10 years and one month in federal prison, announced U.S. Attorney Booth Goodwin. Michael Ray Fortuna, 45, of Peach Creek, previously pleaded guilty in January to conspiracy to distribute oxycodone. Fortuna’s sentence was handed down by United States District Judge Thomas E. Johnston in Charleston.
Fortuna told police that he organized a pill distribution scheme that included his brother and co-defendant Ronald Fortuna, 36, also of Peach Creek, as well as other associates. Ronald Fortuna was sentenced in November to two years in prison for conspiracy to distribute oxycodone.
During the scheme, Michael Fortuna obtained oxycodone from pill sources located in Florida and, in some instances, he or others at his direction, including his brother, traveled to Florida and brought oxycodone pills back to Logan County to sell.
On April 29, 2011, investigators from the United States Postal Inspection Service seized a package addressed to Michael Fortuna. Investigators executed a federal search warrant on the package and discovered that it contained 1,789 30-milligram oxycodone tablets and bore a fictitious return address. Investigators approached Michael Fortuna as he arrived at the Peach Creek Post Office in Logan to retrieve the package. Michael Fortuna later told investigators that he had received a total of three packages containing oxycodone pills from Florida that month. Police determined that the package containing the oxycodone tablets had been mailed by Patrick Warren Napier, of Dingess, Mingo County, W.Va. Napier, 41, was sentenced to four years in prison after pleading guilty earlier this year to conspiracy to distribute oxycodone.
Fortuna also told investigators that he mailed cash to his source of supply located in Florida to pay for the illegal oxycodone deliveries. In particular, Michael Fortuna mailed a package that contained at least $30,000.
In late June or early July 2011, Ronald Fortuna boarded a plane en route to Florida with Guy R. Miller and another acquaintance to obtain oxycodone. On July 3, 2011, investigators from the Multi-Agency Diversion Task Force in Palm Beach County, Florida arrested one of Ronald Fortuna’s acquaintances at the West Palm Beach Airport as the men boarded a return flight to West Virginia. Fortuna’s acquaintance was found to be in possession of 1,377 30-milligram oxycodone tablets. The individual cooperated with law enforcement and later told police that he, Ronald Fortuna, and Miller were instructed to travel to Florida to pick up prescription pain pills. He identified Michael Fortuna as the head of a drug trafficking organization who obtained oxycodone from Palm Beach County, Fla. and later distributed the pills in Logan County, W.Va. The cooperating source also admitted that he had been recruited to carry oxycodone pills on his person during a return flight to West Virginia.
Ronald Fortuna told police that he regularly sold oxycodone tablets from his Peach Creek residence from at least the summer of 2009 until late summer 2011. During the scheme, Ronald Fortuna distributed a total of approximately 2,500 30-milligram oxycodone tablets.
Guy Miller previously pleaded guilty in November to distribution of oxycodone. Miller, 39, who also previously pled guilty to federal charges in connection with a Logan arson scheme, faces a minimum of seven years in prison when he is sentenced on February 19, 2014.
The United States Postal Inspection Service, the US 119 Task Force, the Drug Enforcement Administration and the Logan County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joshua Hanks handled the 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.
Pharmacist Sentenced to Prison for Filling Fake Prescriptions in Exchange for Cash to Support Gambling AddictionRead the Press Release
PITTSBURGH - A Pittsburgh-area pharmacist pleaded guilty in federal court to a charge of violating federal narcotic laws and was also sentenced pursuant to that plea of guilty, United States Attorney David J. Hickton announced today.
Charles Brian Griffin, 27, pleaded guilty to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that from March 2011 until February 2012, Griffin conspired together with others to distribute and possess with intent to distribute oxycodone, a Schedule II controlled substance.
Specifically, the Court was advised that during this time period, Griffin worked as a pharmacist at Walgreens, primarily in its Washington, Pa., store. As a pharmacist, Griffin had access to controlled substances, namely oxycodone. Griffin, working together with a co-conspirator, knowingly filled large fraudulent oxycodone prescriptions provided to him by this co-conspirator. In exchange for doing this, the co-conspirator provided Griffin with tens of thousands of dollars in cash, which Griffin used to support his gambling addiction. In total, Griffin, working together with his co-conspirator, fraudulently diverted more than 8,000 30mg oxycodone pills over the course of this conspiracy.
After entering his plea of guilty, Judge Diamond sentenced Griffin to a term of imprisonment of 40 months, to be followed by three years of supervised release. The Court did not impose a fine on Griffin. The law provided for a total sentence of up to 20 years in prison, a fine of no more than $1,000,000, or both.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Charles Brian Griffin.
Operators of Loan Modification Scam That Targeted Struggling Homeowners Arrested in $12 Million SchemeRead the Press Release
SANTA ANA, California – An attorney this morning became the third defendant taken into custody in relation to a scheme that offered bogus loan modification assistance to struggling homeowners.
Ronald Rodis, 49, of Irvine, surrendered this morning to federal agents on charges alleging that he participated in, and lent his name and the law license he formerly possessed to, the fraudulent operation. Rodis lost his license to practice law in California when he resigned from the State Bar in 2009.
Federal agents yesterday arrested Bryan D’Antonio, 47, of Brea, and Charles Wayne Farris, 53, of Aliso Viejo, for their roles in the operation of the Rodis Law Group and America’s Law Group, businesses that allegedly offered bogus loan modification assistance.
All three defendants were named in a federal indictment unsealed yesterday following an investigation by the FBI and IRS-Criminal Investigation.
As a result of the scheme, more than 1,800 financially distressed homeowners cumulatively lost at least $12 million in fees they paid to the companies, the indictment alleges. Many homeowners also lost their homes to foreclosure.
During a nine-month period that began in October 2008, the Rodis Law Group and America’s Law Group allegedly defrauded distressed homeowners by making false promises and guarantees regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders, falsely representing that a “team of attorneys” would represent the homeowners and advising homeowners to cease making their mortgage payments.
“Posing as successful lawyers, these defendants offered struggling homeowners false hopes and bogus promises of quality legal representation,” said United States Attorney André Birotte Jr. “The market offering loan modifications is rife with fraud, which is why we have redoubled our efforts to investigate and prosecute those who engage in financial crimes that target distressed homeowners.”
Bill Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office, said: “The unconscionable act of scamming homeowners already facing foreclosure is far too common. This indictment should send a clear message to anyone contemplating similar crimes, and should also remind potential victims to be cautious before paying fees to those offering financial rescue, regardless of whether the solicitor holds a law degree.”
The Rodis Law Group, and its successor company, America’s Law Group, allegedly advertised loan modification assistance on radio stations nationwide. According to the indictment, many of these radio advertisements featured Rodis’ voice telling homeowners that a team of experienced attorneys who were “highly skilled in negotiating lower interest rates and even lowering your principal balance” would negotiate with mortgage lenders. Farris and D’Antonio hired and trained salespeople who allegedly told homeowners that Rodis Law Group was “100% successful,” “routinely lowered monthly payments,” and obtained reduced principal balances. According to the indictment, once the defendants and their co-conspirators convinced homeowners to pay a fee of several thousand dollars, little to no effort was made to obtain loan modifications. After making their payments, homeowners who tried to get updates on the status of their cases were often unable to contact anyone at either company.
“These arrests send a strong message to those who would prey on vulnerable homeowners during these tough financial times,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “If you defraud homeowners, you will be found and brought to justice.”
The indictment further alleges that D’Antonio committed these crimes after having been convicted of mail and wire fraud in 2003 for his role in a previous telemarketing scheme. The previous scheme resulted in a civil case by the Federal Trade Commission and ultimately a 2001 court order that permanently banned D’Antonio from participating in future telemarketing operations. The indictment in this case alleges that D’Antonio committed criminal contempt of court by directing the telemarketing activities of Rodis Law Group and America’s Law Group and by misrepresenting the services they provided.
“The defendants found a way to defraud financially distressed homeowners out of $12 million in fees from their loan modification scam,” said Joel P. Garland, Acting Special Agent in Charge for IRS Criminal Investigation’s Los Angeles Field Office. “Be assured that IRS Criminal Investigation, together with our partners and the U.S. Attorney’s Office, will hold those who engage in similar behavior fully accountable.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
D’Antonio, Farris and Rodis are each charged with 10 felony counts – nine counts of wire fraud and one count of conspiracy. Each of these counts carries a statutory maximum penalty of 20 years in federal prison. In addition, D’Antonio is charged with 13 counts of criminal contempt for violating the 2001 court order. Criminal contempt of court has no statutory maximum penalty.
Rodis is expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana.
Following their arrests yesterday, D’Antonio and Farris were arraigned and entered not guilty pleas. A trial for both men was scheduled for January 28 before United States District Judge David O. Carter. At yesterday’s hearing, D’Antonio was ordered detained (held without bond), and Farris was released on a $60,000 bond.
This indictment was brought as part of the President’s Financial Fraud Enforcement Task Force’s Mortgage Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, please visit www.StopFraud.gov.
Release No. 13-137
North Hills Man Violated Federal Drug LawsRead the Press Release
PITTSBURGH - A North Hills man pleaded guilty in federal court to charges of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Ryan Raithel, 33, of Wexford, Pa., pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from in and around July 2011, and continuing to in and around May 2013, Raithel conspired to distribute and possess with intent to distribute oxycodone and oxymorphone, Schedule II controlled substances. Additionally, on or about Aug. 10, 2012 Raithel possessed with the intent to distribute and did distribute a quantity of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
Judge Schwab scheduled sentencing for May 14, 2014. The law provides for a total sentence of up to 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, acting together with the Economy Borough and Cranberry Township Police Departments, conducted the investigation that led to the prosecution of Ryan Raithel.
North Dakota Woman Sentenced for Conversion of Tribal FundsRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on December 3, 2013, former Executive Director of the Eastern Shoshone Housing Authority, Joanne Lynn Seesequasis, a 45 year old Eastern Shoshone Tribal member, was sentenced by Chief United States District Judge Nancy D. Freudenthal to three years of probation, and was ordered to pay a $100.00 special assessment and $45,544.66 in restitution. Ms. Seesequasis previously pled guilty to the offense of Conversion of Tribal Funds. This case was investigated by the Housing and Urban Development Office of Inspector General.
Nashua Man Pleads Guilty to Bank RobberyRead the Press Release
CONCORD, N.H. – Bradford Mullane, 32, of Nashua, New Hampshire, has entered a guilty plea in the United States District Court for the District of New Hampshire to one count of bank robbery, announced United States Attorney John P. Kacavas.
Mullane walked into a TD Bank in Nashua, New Hampshire, on July 15, 2013, where he presented a handwritten note demanding money, and made off with more than $1,200 in stolen funds. Mullane, who faces a maximum sentence of twenty years in prison and criminal fines of up to $250,000, will be detained pending sentencing, which is presently scheduled for March 12, 2014.
This prosecution arose from an investigation by the Nashua, New Hampshire Police Department. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
Mission Man Charged with Simple Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Simple Possession of a Controlled Substance.
Steven Plank, age 29, was indicted on November 14, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 27, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 1 year in custody and/or a $100,000 fine, 1 year of supervised release, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
Plank is accused of possessing hydrocodone, a schedule III controlled substance.
The charge is merely an accusation and Plank is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Plank was released on bond pending trial. A trial date has not been set.
Miami Home Health Company Owner and Recruiter<br /> Sentenced for Role in $48 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter of a Miami health care company was sentenced to serve 108 months in prison today for his participation in a $48 million home health Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Emilio Amador, 46, was sentenced by U.S. District Judge Federico A. Moreno in the Southern District of Florida. In addition to his prison term, Amador was sentenced to serve three years of supervised release and ordered to pay $24 million in restitution, jointly and severally with co-defendants.
In September 2013, Amador pleaded guilty before Judge Moreno to one count of conspiring to receive health care kickbacks and two counts of receiving health care kickbacks.
According to court documents, Amador was a patient recruiter who worked for Caring Nurse Home Health Care Corp., a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
From approximately January 2006 through June 2011, Amador would recruit patients for Caring Nurse, and in doing so would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse in return for allowing Caring Nurse to bill the Medicare program on behalf of the patients Amador had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
According to court documents, Amador also pleaded guilty to his involvement with fraudulent billings for Nation’s Best Care Home Health Corp. as relevant conduct. Amador was the owner, operator and president of Nation’s Best. The fraudulent billings for Nation’s Best totaled approximately $30 million.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez, 44, and Raymond Aday, 49, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. The sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2012 indictment, which alleged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for those fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
Miami Home Health Company Owner and Recruiter Sentenced for Role in $48 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter of a Miami health care company was sentenced to serve 108 months in prison today for his participation in a $48 million home health Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Emilio Amador, 46, was sentenced by U.S. District Judge Federico A. Moreno in the Southern District of Florida. In addition to his prison term, Amador was sentenced to serve three years of supervised release and ordered to pay $24 million in restitution, jointly and severally with co-defendants.
In September 2013, Amador pleaded guilty before Judge Moreno to one count of conspiring to receive health care kickbacks and two counts of receiving health care kickbacks.
According to court documents, Amador was a patient recruiter who worked for Caring Nurse Home Health Care Corp., a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
From approximately January 2006 through June 2011, Amador would recruit patients for Caring Nurse, and in doing so would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse in return for allowing Caring Nurse to bill the Medicare program on behalf of the patients Amador had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
According to court documents, Amador also pleaded guilty to his involvement with fraudulent billings for Nation’s Best Care Home Health Corp. as relevant conduct. Amador was the owner, operator and president of Nation’s Best. The fraudulent billings for Nation’s Best totaled approximately $30 million.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez, 44, and Raymond Aday, 49, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. The sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2012 indictment, which alleged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for those fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Marijuana Dealer Found Guilty in Manhattan Federal Court of Three MurdersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced that KEVIN VENTURA was found guilty yesterday in Manhattan federal court of murder in connection with an arson and a marijuana distribution conspiracy, two counts of murder in connection with a marijuana distribution conspiracy, conspiracy to commit murder-for-hire, and murder-for-hire. VENTURA was convicted after a twelve-day jury trial before U.S. District Judge John G. Koeltl.
Manhattan U.S. Attorney Preet Bharara said: “This case is a prime example of how federal resources can successfully be brought to bear on ‘cold case’ murders in New York. We are proud to work with our partners at ICE’s Homeland Security Investigations and the NYPD to bring justice to victims and their families after so many years of waiting.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “The defendant in this case protected his drug smuggling empire through violence, including arson and murder, and terrorized New York City neighborhoods for years. The verdict holds the defendant accountable for his crimes and demonstrates HSI's commitment to working with our law enforcement partners in combating violent drug organizations that value profits more than human lives.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
In the mid-1990s, VENTURA managed the day-to-day operations of his father’s marijuana distribution business in the vicinity of 207th Street and Sherman Avenue in northern Manhattan. On April 11, 1995, VENTURA and a number of his associates in the marijuana business went to a discount store at 3856 10th Avenue that was operating a rival marijuana business, intending to set a fire in the store to shut down the competition. One of VENTURA's associates shot and killed the store clerk, Noel Montanez, while VENTURA set fire to the store.
In the summer of 1996, VENTURA hired two brothers to kill VENTURA’s cousin, Eugene Garrido, in exchange for $10,000, because of a dispute over the family marijuana business. On August 19, 1996, one of the two brothers shot and killed Garrido in the lobby of his apartment building at 34 Bogardus Place in northern Manhattan. A bystander, Carlos Penzo, who attempted to stop the fleeing shooter, was also shot and died from his injuries approximately a week later.
VENTURA, 42, of New York, New York, faces a mandatory minimum sentence of life in prison. He is scheduled to be sentenced by Judge Koeltl on March 14, 2014 at 2:30 p.m.
Mr. Bharara praised the investigative work of ICE HSI and also thanked the New York City Police Department for its assistance in the case.
This case is being prosecuted by the Office’s Violent Crimes Unit. Assistant United States Attorneys Margaret Garnett and Ryan P. Poscablo are in charge of the prosecution.
U.S. v. Kevin Ventura S3 Indictment
Louisville Physician Charged with Multiple Counts of Unlawful Distribution of Controlled Substances, Healthcare Fraud and Money LaunderingRead the Press Release
LOUISVILLE, Ky. – A Louisville physician was charged today, by a federal grand jury, with multiple counts of unlawful distribution of controlled substances, healthcare fraud and money laundering announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the fourteen count indictment, George Kudmani, age 68, operated an obstetrician/gynecological medical practice located at 9702 Stonestreet Road, in Louisville, Kentucky. The practice did not employ any other individual with medical training. On average, Kudmani would see more than 35 patients per day. A typical first-time patient would pay $75 for a gynecological exam, and each visit thereafter, the patient would typically pay $35 in cash and receive a Schedule II-V controlled substance prescription without a physical examination.
The indictment charges Kudmani with eleven counts of knowingly and intentionally distributing and dispensing controlled substances, not for a legitimate medical purpose and beyond the bounds of a professional medical practice, between January 2009 and September 2012. The controlled substances allegedly prescribed include, Oxycodone, Alprazolam, Clonazepam, Hydrocodone, Phentermine and Carisoprodol. Further, Kudmani is charged with two counts of health care fraud for allegedly submitting claims for medically unnecessary services and for writing prescriptions for medically unnecessary controlled substances between January 2009 and September 2012. The fraud charge states that Kudmani would perform medically unnecessary services and bill health care benefit programs for reimbursement.
The other fraud charge states that Kudmani knew patients would have the prescriptions filled at pharmacies and that the pharmacies in turn submitted claims to health care benefit programs for reimbursement.
In addition, Kudmani is charged with one count money laundering for purchasing a 2012 Honda Accord with $15,000 in cash and a $5,971.63 check from money derived from an unlawful activity, that is the unlawful dispensing and distribution of controlled substances and health care fraud.
If convicted at trial, Kudmani faces a maximum potential penalty of 230 years in prison, a fine of $10,250,000, and a 3 year period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and was investigated by the United States Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Kentucky Medical Fraud Control Unit and Louisville Metro Police Department (LMPD).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Legal Permanent Resident Alien Convicted of Possession of Child PornographyRead the Press Release
LAREDO, Texas – Daniel Frias Gomez, 22, a legal permanent resident born and raised in Jalisco, Mexico, has entered a guilty plea to possessing child pornography, announced United States Attorney Kenneth Magidson.
Gomez was apprehended on Sept. 27, 2013, as he applied for admission back into the United States via the Lincoln-Juarez International Bridge, Port of Entry No. 2, in Laredo as a passenger onboard a commercial bus. During the course of inspection, Customs and Border Protection officers discovered multiple electronic devices, including DVDs and memory cards.
Gomez, who had been residing with his immediate family in Iowa, claimed ownership of those devices. A search was conducted and approximately 200 child pornographic images and videos were discovered. Some of the images included variations of pornography, including some involving bestiality.
Gomez made claims that he was approached by an “unknown” male, who offered him pornographic images because he had a PSP device. He ultimately decided to plead guilty as charged.
U.S. District Judge Diana Saldana will set a sentencing date at a later time. At the time of that hearing, Gomez faces up to 10 years in federal prison. He also faces a potential fine of $250,000 and up to life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. Gomez will remain in custody pending that hearing.
Homeland Security Investigations and CBP investigated.
This case, prosecuted by Assistant United States Attorney Suntrease Williams, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lake City Man Indicted on Federal Charges of Possessing Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announced today that a federal grand jury in Jacksonville has returned an indictment against Ronald Charles Waters (65, Lake City) charging him with two counts of possessing child pornography. On each of these counts, he faces up to 10 years in federal prison and a potential life term of supervision. Waters was arrested on November 20, 2013 in Lake City, Florida. He was arraigned in federal court on December 4, 2013.
According to the indictment, on or about May 30, 2013 and on or about November 20, 2013, Waters knowingly possessed computer media containing minors engaged in sexually explicit conduct.
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Jacksonville Sheriff’s Office, and the Lake City Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It 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. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Kyle Man Pleads Not Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Scotty Old Horse, age 18, was indicted on November 19, 2013. Old Horse appeared before U.S. Magistrate Judge Veronica L. Duffy on December 2, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to an incident in Porcupine, South Dakota, when Old Horse resisted a law enforcement officer employed by the Oglala Sioux Tribe Department of Public Safety while engaged in the performance of his official duties.
The charge is merely an accusation and Old Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Old Horse was released on bond pending trial. A trial date has been set for February 4, 2014.
Justice Department Sues to Stop Somerville, N.J., Man from Preparing Tax ReturnsRead the Press Release
The United States filed a lawsuit yesterday in The District of New Jersey to bar Eric Majette of Somerville, N.J., from preparing federal tax returns, the Justice Department announced today. As alleged in the complaint, Majette owned and operated a tax preparation business named “Berrisford Group” with offices in Plainfield and Somerville.
According to the complaint, from 2006 until 2011, Majette prepared and filed tax returns that contained false or inflated itemized deductions for items such as medical and dental expenses, gifts, and business expenses that resulted in his customers receiving larger tax refunds than they were entitled. The complaint further alleges that Majette encouraged his customers to submit false documents, such as fraudulent charitable contribution receipts, to the Internal Revenue Service (IRS).
Earlier this year, Majette pleaded guilty to corruptly endeavoring to obstruct and impede the internal revenue laws and to preparing a false tax return. He was sentenced to serve 30 months in prison and one year of supervised probation upon release, and ordered to pay $123,440 in restitution. The civil complaint filed yesterday alleges that between 2009 and 2012, Majette prepared 1,853 tax returns for customers and 93 percent of these returns claimed tax refunds. According the complaint, the IRS examined 428 of these returns and determined that they understated the customers’ correct tax liability by a total of $838,837, an average of $1,960 per return. The complaint estimates that the total harm caused by the 1,723 tax refunds claiming returns could be as much as $3 million.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013 . The IRS has some tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional. In the past decade, the department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm.
Related Materials:
United States v. Eric Majette
ComplaintJury Convicts Man of Second-Degree Murder While Armed in 2010 Killing of Acquaintance-Defendant Chased and Stabbed Victim After Argument at Gas Station-Read the Press Release
WASHINGTON – Richard Williams, 43, was found guilty by a jury today of second-degree murder while armed in the slaying of an acquaintance along the border of the District of Columbia and Prince George’s County, Md., U.S. Attorney Ronald C. Machen Jr. announced.
Williams, who has no fixed address, was found guilty following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury found him guilty of one count of carrying a dangerous weapon after having been convicted a felony, and two counts of committing offenses while on release in a pending criminal case. The Honorable Robert E. Morin scheduled sentencing for Jan. 31, 2014. Williams faces up to 70 years in prison for the murder count alone, and up to 30 years for each of the other three charges.
According to the government’s evidence, Williams and the victim, Sean West, 37, knew each other and often spent time together at a gas station in Oxon Hill, Md., just over the border from the District of Columbia. On Aug. 27, 2010, at about 11:30 p.m., they got into an argument and shoving match at the gas station, for reasons that remain unclear. A mutual acquaintance broke up the fight, and Mr. West walked across the street into the 4300 block of Wheeler Road SE, headed home.
Williams, however, proceeded to run after Mr. West. Upon catching up to him, he stabbed Mr. West once in the chest. Mr. West ran back across the street, into Oxon Hill, and collapsed inside a liquor store. He died about two hours later.
Williams fled the scene on foot and was arrested on Oct. 18, 2010. At the time of the murder, the defendant, a previously convicted felon, had a pending misdemeanor case for which he had been released on bond. He has been held without bond since his October 2010 arrest.
In announcing the verdict, U.S. Attorney Machen expressed appreciation for the work of those who investigated the case from the Metropolitan Police Department. He also commended those who worked on the case from the Prince George’s County, Md., Police Department and the District of Columbia Office of the Chief Medical Examiner. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialist Josh Ellen, Paralegal Specialist Sandra Lane, Victim/Witness Advocate Marcia Rinker, and Assistant U.S. Attorney Michael Liebman, who prosecuted the matter.
13-413Judge Sentences Drug Dealer to 14 Years in Federal PrisonRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pa., has been sentenced in federal court to 14 years in prison to be followed by five years supervised release, on his conviction of violating the federal narcotic laws, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Richard Hayes, 33.
According to information presented to the court, on Feb. 23, 2011, U.S. postal inspectors in Pittsburgh executed a search warrant for a suspicious package mailed from Rialto, Calif., to Pittsburgh which contained in excess of 20 pounds of marijuana. When Hayes attempted to pick up the package, he was arrested. Inside his wallet, agents found two receipts for other packages mailed from Rialto to Pittsburgh one day earlier.
On Feb. 24, 2011, inspectors located one of the other packages, secured a search warrant, and found nearly nine pounds of cocaine inside. The wholesale value in Pittsburgh of nine pounds of cocaine would be between $160,000 - $180,000, with a retail or "street" value well exceeding a half million dollars.
Assistant United States Attorney Gregory J. Nescott prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Richard Hayes.
Indictment: Wichita Restaurant Owner's Income Came from Drugs, Counterfeit ChecksRead the Press Release
WICHITA, KAN. - A Wichita restaurant owner has been charged with drug trafficking, firearms violations, bank fraud and money laundering, U.S. Attorney Barry Grissom said today.
Gerald Beasley, 58, Andover, Kan., was charged in June with one count of unlawful possession of a firearm after a felony conviction. A 23-count superseding indictment returned by a grand jury Wednesday in U.S. District Court in Wichita includes the following charges:
Three counts of unlawful possession of a firearm after a felony conviction.
Three counts of unlawful possession of a firearm in furtherance of drug trafficking.
One count of maintaining a drug involved premises at 1122 N. Piatt in Wichita.
One count of maintaining a drug involved premises at Tiara’s Place, a restaurant at 1339 N. Hillside in Wichita.
One count of possession with intent to distribute heroin.
One count of possession with intent to distribute cocaine.
One count of possession with intent to distribute crack cocaine.
One count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
One count of conspiracy to possess with intent to distribute 280 grams or more of crack cocaine.
One count of conspiracy to possess with intent to distribute one kilogram or more of heroin.
One count of conspiracy to commit bank fraud.
Five counts of bank fraud.
Two counts of money laundering.
One count of conspiracy to commit money laundering.The indictment alleges investigators monitored Beasley’s telephone calls and examined his tax records, bank records and real estate purchases to obtain evidence that he derived his income from criminal activities including drug trafficking and counterfeit checks. Law enforcement officers served search warrants in June and seized more than $229,000 from bank accounts and $346,000 in cash from residences and a business location. They also seized firearms, ammunition, controlled substances and drug trafficking paraphernalia.
Other allegations in the indictment include the following:- Tiara’s Place restaurant, owned by Beasley, reported $104,864 in gross receipts for July 1, 2003, through Dec. 31, 2012. The restaurant’s total gross income reported to the Internal Revenue Service during the same period was $493,707.
- Law enforcement officers determined Beasley operated a counterfeit check and identity theft operation locally and in other states. He made counterfeit checks, recruited people to cash the checks and then split the cash proceeds with the check passers. He provided cars he owned or rented for their use while passing counterfeit checks.
- Beasley unlawfully possessed firearms and ammunition despite being prohibited from doing so because of a prior felony conviction.
The government is seeking the forfeiture of all money and property representing the proceeds of the crimes including the following real estate owned by Beasley: 660 N. Estelle, 1322 N. Estelle, 1815 E. 23rd, 907 N. Wabash, 2341 N. Piatt, 618 Hedgewood (Andover), 2001 Colt Court (Andover), 2826 E. 23rd, 1648 N. Estelle, 907 and 907 1/2 N. Cleveland, 655 N. Estelle, 1118 N. Piatt, 1728 McFarland, 2244 N. Kansas, 1339 N. Hillside, 1343 N. Hillside, 3623 E. Funston, 1122 N. Piatt, and 1304 N. Grove.
Upon conviction, the alleged crimes carry the following penalties:
Unlawful possession of a firearm after a felony conviction, a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years -- consecutive to a sentence on the underlying drug charge -- and a fine up to $250,000.
Maintaining a drug involved premises: A maximum penalty of 20 years and a fine up to $500,000.
Possession with intent to distribute heroin: Not less than five years and not more than 40 years and a fine up to $5 million.
Possession with intent to distribute cocaine and crack cocaine: A maximum penalty of 20 years and a fine up to $1 million.
Conspiracy to possess with intent to distribute cocaine, crack cocaine and heroin: Not less than 10 years and a fine up to $4 million.
Conspiracy to commit bank fraud and bank fraud: A maximum penalty of 30 years and a fine up to $1 million.
Money laundering: A maximum penalty of 20 years and a fine up to $500,000.The following agencies worked on the case: Wichita Police Department, the Sedgwick County Sheriff’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service and the Sedgwick County District Attorney’s Office. Assistant U.S. Attorney Debra Barnett and Special Assistant U.S. Attorney Michelle Jacobs are prosecuting.
OTHER INDICTMENTS
Sherrie Landell, 41, Erie, Kan., is charged with one count of embezzlement by an employee of a bank and two counts of making false entries in bank records. The indictment alleges Landell embezzled while she was an employee of Exchange State Bank, 408 N. 5th St. in St. Paul, Kan.
If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. The U.S. Secret Service investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.Ricardo Garcia-Chihuahua, 37, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Nov. 7, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Richard W. Smith, 59, Augusta, Kan., is charged with one count of possession with intent to distribute anabolic steroids, one count of possession with intent to distribute Alprazolam, one count of possession with intent to distribute Diazepam, one count of possession with intent to distribute Meprobamate, one count of possession with intent to distribute Nitrazepam, one count of possession with intent to distribute Phenobarbital, one count of possession with intent to distribute Medazepam, one count of possession with intent to distribute Temazepam, one count of possession with intent distribute Oxycodone, one count of unlawful possession of a firearm in furtherance of drug trafficking, one count of unlawful possession of a firearm by a user of controlled substances and one count of unlawful possession of a stolen firearm. The crimes are alleged to have occurred March 15, 2013, in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute anabolic steroids: A maximum penalty of 10 years in federal prison and a fine up to $500,000.
Possession with intent to distribute Alprazolam, Diazepam, Meprobamate, Nitrazepam, Phenobarbital, Medazepam and Temazepam: A maximum penalty of five years and a fine up to $250,000.
Possession with intent to distribute Oxycodone: A maximum penalty of 20 years and a fine up to $1 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Unlawful possession of a firearm by a user of controlled substances: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a stolen firearm: A maximum penalty of 10 years and a fine up to $250,000.Homeland Security Investigations, the Wichita Police Department and the Kansas Department of Revenue investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Codaniel A. Jones, 33, Independence, Kan., is charged with two counts of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm after a felony conviction, one count of unlawful possession of a firearm in furtherance of drug trafficking, one count of unlawful possession of a firearm by a user of controlled substances and one count of possession of marijuana. The crimes are alleged to have occurred in August and September 2013 in Montgomery County, Kan.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute methamphetamine: A maximum penalty of 20 years and a fine up to$1 million.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years in federal prison and a fine up to $250,000.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.Juan Vargas, 43, Yucaipa, Calif., is charged with possession with intent to distribute approximately five kilograms of methamphetamine. The crime is alleged to have occurred Nov. 9, 2013, in Thomas County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Howard Harden, 51, Liberal, Kan., and Ebony James, 20, Wichita, Kan., are charged with conspiracy to distribute crack cocaine. The crime is alleged to have occurred May 23, 2013, in Clark County, Kan.
If convicted, they face a penalty of not less than five years and not more than 40 years and a fine up to $2 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Fernando Fernandez, Jr., 23, Wichita, Kan., one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred Nov. 10, 2013, in Sedgwick County, Kan.
If convicted he faces a maximum penalty of 10 years and a fine up to $250,000. The Wichita Police Department Investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Jacob Engstrom, 26, Wichita, Kan., and Tessa Bowler, 30, Wichita, Kan., are charged with conspiracy to distribute methamphetamine. In addition, Engstrom is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking and two counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in February 2012 and May 2012 in Sedgwick County, Kan.
If convicted, they face a penalty of not less than 10 years and a fine up to $4 million on the conspiracy count. In addition, if convicted, he faces a penalty of not less than five years – consecutive to the penalty for the drug count -- and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on the other firearm charge. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Anel V. Garcia-Estrada, 22, and Sandra Luz Estrada De Garcia, 44, are charged one count of conspiracy to commit money laundering and 17 counts of money laundering. The crimes are alleged to have occurred in 2010 and 2011 in Sedgwick County.
The indictment alleges the defendants conducted interstate financial transactions using funds derived from drug trafficking.
If convicted, they face a maximum penalty of 20 years and a fine up to $500,000 on each count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Jose Armando De Luna, 34, Wichita, Kan., is charged in a superseding indictment with one count of distributing methamphetamine, three counts of unlawful possession of ammunition after a felony conviction, one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking, two counts of unlawful possession of firearms after a felony conviction, and one count of unlawful possession of sawed off shotguns. The crimes are alleged to have occurred in September 2013 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Distribution of methamphetamine: A maximum penalty of 20 years in federal prison and a fine up to $1 million.
Unlawful possession of firearms or ammunition after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Possession with intent to distribute amphetamine: Not less than five years and not more than 40 years and a fine up to $2 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Unlawful possession of a sawed off shotgun: A maximum penalty of 10 years and a fine up to $250,000.The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Alan Metzger is prosecuting
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges Theft of Government FraudsRead the Press Release
Arvita Phillips-Henderson, 68, of Philadelphia, PA, was charged yesterday by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant applied for Supplemental Security Income from the Social Security Administration, and Housing Benefits from the Department of Housing and Urban Development, under her true Social Security Number while working. She, later, collected retirement benefits under a second Social Security Number. The defendant’s alleged actions resulted in a loss to the government of more than $87,000.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, a three year period of supervised release, restitution to the government of $87,827.25, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, and the Philadelphia Housing Authority Office of Audit and Compliance. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Houston Man Ordered to Prison for Wells Fargo RobberyRead the Press Release
HOUSTON - Willie Wright III, 32, of Houston, has been sentenced for his role in the robbery of the Wells Fargo Bank on Kirby Drive in Houston in December 2012, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Nancy Atlas sentenced Wright to 46 months for aggravated bank robbery as well as a consecutive seven years for brandishing a firearm during a crime of violence for a total of 130 months in federal prison.
On Friday Dec. 28, 2012, Wright, along with Aaron Derrow, 43, Terrance Jackson, 35, and Justin Levar Taylor, 33, all of Houston, robbed the Wells Fargo Bank at 5202 Kirby Drive in Houston. All of the men were wearing various disguises, and Wright, Derrow and Taylor were armed with pistols. Jackson and Derrow jumped over the teller counter while Wright and Taylor controlled the lobby. Derrow threatened a male teller with his gun while filling a bag with money. After getting the money, the two jumped back over the teller counter and all four ran out of the bank to their getaway vehicle, a stolen white Toyota pickup truck. All were apprehended a short time later at a residence several miles away.
Derrow and Jackson both also pleaded guilty to aggravated bank robbery and will be sentenced later this month. Derrow also entered a plea of guilty to brandishing a firearm during a crime of violence. Taylor will be sentenced in January 2014 and was convicted of aggravated bank robbery and brandishing a firearm during a crime of violence.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Hoover Restaurant Owner Charged with Trafficking MarijuanaRead the Press Release
BIRMINGHAM -- The owner of Jubilee Joe's Restaurant in Hoover faces federal drug trafficking, firearms and money laundering charges, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeffrey L. Fulton.
An eight-count indictment returned by a federal grand jury in October against KASHIF MOHAMMED SIDDIQUI, 32, of Birmingham, was unsealed today following his arrest. The indictment charges Siddiqui with conspiracy to distribute marijuana in Jefferson and Shelby counties between September 2012 and January 2013. The indictment also charges Siddiqui with two counts of distributing marijuana, once on Sept. 6, 2012, and again on Oct. 17, 2012.
The indictment further charges Siddiqui with transferring a Bushmaster .223-caliber semi-automatic rifle in furtherance of a drug-trafficking crime on Oct. 17, 2012, and with selling or loaning a Glock .45-caliber pistol to a convicted felon on Oct. 20, 2012. The indictment also charges Siddiqui with conspiring to conduct a financial transaction involving proceeds of illegal activity on Nov. 19, 2012; and with both possessing with intent to distribute marijuana and possessing a Colt .223-caliber semi-automatic rifle in furtherance of a drug-trafficking crime on Jan. 3, 2013.
The conspiracy and marijuana distribution charges each carry a maximum penalty of five years in prison and a $250,000 fine. Transferring a firearm in furtherance of a drug-trafficking crime and providing a firearm to a known felon both carry a maximum sentence of 10 years in prison and a $250,000 fine. The money-laundering conspiracy charge carries a maximum penalty of 20 years in prison and a fine of either $500,000 or double the amount laundered, whichever is greater. The charge of possessing a firearm in furtherance of a drug-trafficking crime carries a $250,000 fine and a prison term of five years to life in prison, which must be served after completion of any other sentence imposed for the crime.
ATF investigated the case, which Assistant U.S. Attorney E. Wilson Hunter is prosecuting.
The public is reminded that an indictment contains only charges. It is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Hoover Restaurant Owner Charged with Trafficking MarijuanaRead the Press Release
BIRMINGHAM -- The owner of Jubilee Joe's Restaurant in Hoover faces federal drug trafficking, firearms and money laundering charges, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeffrey L. Fulton.
An eight-count indictment returned by a federal grand jury in October against KASHIF MOHAMMED SIDDIQUI, 32, of Birmingham, was unsealed today following his arrest. The indictment charges Siddiqui with conspiracy to distribute marijuana in Jefferson and Shelby counties between September 2012 and January 2013. The indictment also charges Siddiqui with two counts of distributing marijuana, once on Sept. 6, 2012, and again on Oct. 17, 2012.
The indictment further charges Siddiqui with transferring a Bushmaster .223-caliber semi-automatic rifle in furtherance of a drug-trafficking crime on Oct. 17, 2012, and with selling or loaning a Glock .45-caliber pistol to a convicted felon on Oct. 20, 2012. The indictment also charges Siddiqui with conspiring to conduct a financial transaction involving proceeds of illegal activity on Nov. 19, 2012; and with both possessing with intent to distribute marijuana and possessing a Colt .223-caliber semi-automatic rifle in furtherance of a drug-trafficking crime on Jan. 3, 2013.
The conspiracy and marijuana distribution charges each carry a maximum penalty of five years in prison and a $250,000 fine. Transferring a firearm in furtherance of a drug-trafficking crime and providing a firearm to a known felon both carry a maximum sentence of 10 years in prison and a $250,000 fine. The money-laundering conspiracy charge carries a maximum penalty of 20 years in prison and a fine of either $500,000 or double the amount laundered, whichever is greater. The charge of possessing a firearm in furtherance of a drug-trafficking crime carries a $250,000 fine and a prison term of five years to life in prison, which must be served after completion of any other sentence imposed for the crime.
ATF investigated the case, which Assistant U.S. Attorney E. Wilson Hunter is prosecuting.
The public is reminded that an indictment contains only charges. It is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Homestead Man Conspired to Distribute HeroinRead the Press Release
PITTSBURGH - A Homestead resident pleaded guilty in federal court to a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Hakeem Kirby, 21, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from in and around May 2012, and continuing thereafter to in and around March 2013, in the Western District of Pennsylvania and elsewhere, Kirby conspired to distribute and possess with the intent to distribute 100 grams or more of heroin, a Schedule I controlled substance.
Judge Bissoon scheduled sentencing for April 24, 2014. The law provides for a total sentence of up to 40 years in prison, a fine of not more than $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution of Hakeem Kirby.
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in St. Paul, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Mexican citizen charged with illegal re-entry into U.S.
Alonzo Cid-Escatel, age 36, a citizen of Mexico found in Pipestone, Minnesota, is charged with one count of illegally re-entering the United States after previously being deported.
If convicted, Cid-Escatel faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.Minneapolis man charged with possessing with intent to distribute methamphetamine
Isreal Landa-Leon, age 28, of Minneapolis, is charged with one count of possession with intent to distribute methamphetamine.
If convicted, Landa-Leon faces a potential maximum penalty of 40 years in prison. This case is the result of an investigation by the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Arizona man charged with filing a false tax return
Brian Christopher Neary was charged with one count of filing a false tax return. If convicted, Neary faces a potential maximum penalty of three years in prison. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney David J. MacLaughlin.Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
Garland, Texas, Man Sentenced to 120 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Evan Richards, 22, of Garland, Texas, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to 120 months in federal prison, after pleading guilty earlier this year to an Information charging one count of transporting and shipping child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, a detective with the Garland Police Department, working online in an undercover capacity, identified a computer using a peer-to-peer program and the Internet to share images of child pornography. The investigation revealed that the computer belonged to Richards. A search warrant was executed at Richards’ residence on September 18, 2012, and law enforcement seized his computer. Richards admitted that he downloaded images and videos that he made available for sharing and that he believed there were approximately 2000 child pornography files on his computer. He admitted downloading child pornography for three to four years using file-sharing software.
Richards has been in custody since he entered his guilty plea in January 2013.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Garland Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.
Ft. Lauderdale Attorney Convicted of Conspiracy to Commit Wire Fraud, Mail Fraud, and Money Laundering in Connection with $1 Billion MBC FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that a Miami federal jury convicted local attorney Anthony Livoti, Jr. of conspiracy to commit wire and mail fraud, conspiracy to commit money laundering, and mail fraud, in violation of 18 U.S.C. Sections 1349, 1956(h), and 1341, respectively, after nearly a three-month trial before U.S. District Robert N. Scola.
The verdict was the result of Livoti’s participation in a scheme to defraud approximately 30,000 victims who invested in the viatical and life settlement company Mutual Benefits Corp. (MBC). The Indictment alleged that Livoti and others, including Steven Steiner a/k/a Steven Steinger, and Michael McNerney, raised more than $1.25 billion from these investor-victims before being shut down by federal regulators in May 2004. Livoti is scheduled to be sentenced by Judge Scola on February 21, 2014, at 8:30 a.m.
According to the evidence presented at trial, from approximately 1994 to May 2004, MBC purchased life insurance policies from the elderly, as well as persons suffering from AIDS and chronically ill. Thereafter, MBC sold fractionalized interests in insurance policy death benefits, known as “viatical settlements,” to approximately 30,000 investorv-victims. MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Evidence presented at trial established that MBC misrepresented many important facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, MBC’s fraudulent methods used to acquire life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors.
Defendant Anthony Livoti, Jr., an attorney licensed by the State of Florida, was MBC’s premium trustee, and as a result was entrusted with millions of dollars of investor money placed in bank accounts under his control. Livoti was also the designated “trustee” of thousands of the insurance policies sold by MBC. Evidence showed that Livoti assisted MBC with the marketing of its fraudulent investment by meeting with investors in his Fort Lauderdale law office and encouraging them to purchase MBC investments.
Witnesses testified that new investor money was regularly used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. In Ponzi-like fashion, Livoti and his co-conspirators were using new investor money to pay for earlier investor obligations. As the fraud continued, eventually investor money was required to prevent the MBC Ponzi from collapsing. Ultimately, investors lost more than $750 million.
Evidence at trial also showed that co-defendant Joel Steinger was the principal executive in charge of most major decisions made at MBC. Steinger’s trial in this case is currently set to begin April 2, 2014 before Judge Scola.
Defendant Steven Steiner, Joel Steinger’s brother, was also a founding principal of MBC, actively involved in MBC’s sales staff, and encouraged investors to buy MBC’s investments. On September 3, 2013, Steiner pled guilty to charges in this Indictment. His sentencing is set for December 16, 2013. Steiner was also found guilty by a federal jury in a related case, United States v. Steven Steiner, Case No. 11-20578-Cr-Williams. On August 16, 2013, U.S. District Judge Kathleen M. Williams sentenced defendant Steven Steiner to 15 years in prison in connection with money laundering and obstruction of justice related to the use and concealment of more than $15 million dollars in proceeds derived from the MBC fraud.
Michael McNerney pled guilty in this case and was sentenced to five years in prison for his criminal conduct. McNerney, an attorney licensed by the State of Florida, assisted MBC with the marketing of its fraudulent investment by meeting with investors in his Fort Lauderdale law offices and encouraging them to purchase MBC investments.
U.S. Attorney Wifredo A. Ferrer stated, “For nearly ten years, Anthony Livoti, Jr. used the prestige of his law license to further this massive, multi-million dollar fraud scheme. It is outrageous that an attorney would prey on investors by promising them their money was safe and secure when in reality he was misappropriating their funds.”
“This is another case of an attorney who instead of doing the right thing was motivated by his personal greed and assisted in defrauding thousands of investors out of hundreds of millions of dollars,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “An important part of the FBI’s mission is to investigate such financial frauds and hold perpetrators accountable, regardless of how elaborate or complex their scheme is.”
Mr. Ferrer commended the investigative efforts of the FBI and the Miami Regional Office of the Securities and Exchange Commission, which previously brought a civil action against MBC and its principals. This case was tried by Assistant U.S. Attorneys Karen Rochlin and Roger Cruz.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Spokane Indian Reservation Resident Sentenced to 30 Years for Child Sexual Abuse ConvictionsRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that United States District Court Judge Thomas O. Rice sentenced Valentin Cardenas Gonzales, age 75, formerly of Ford, Washington, to a 30 year term of imprisonment and a life term of court supervision upon release from Federal prison. As a condition of any such court supervision, Gonzales is required to register as a sex offender and will be subject to specific terms and conditions to prevent his access to or contact with children.
Gonzales faced several Federal charges relating to his involvement with three minor children from the Spokane Indian Reservation. Following a trial in September 2013, a jury returned guilty verdicts on two charges of Aggravated Sexual Abuse of a Minor and two charges of Abusive Sexual Contact with a Minor. Those guilty verdicts culminated with today's sentence.
Michael C. Ormsby stated: "I commend the efforts of the law enforcement officers with the Spokane Tribal Police Department and the Special Agents with the FBI who worked on this case. Their tireless efforts resulted in the successful prosecution of Valentin Cardenas Gonzales and prevented the minor victims from any possibility of being re-victimization. Prosecuting sexual abuse and sexual contact crimes are a priority for the United States Attorney's Office in the Eastern District of Washington. Today's sentence plainly reflects the seriousness of these sorts of crimes."
The Spokane Tribe of Indians has issued an order excluding Gonzales from entering or residing within the boundaries of the Spokane Indian Reservation. He was served with a copy of that order during the sentencing proceedings in Federal court today. While not a member of the Spokane Tribe, Gonzales had been residing on the Reservation when he committed the crimes.
This investigation was conducted by the Federal Bureau of Investigation and the Spokane Tribal Police Department. This case was prosecuted by K. Jill Bolton, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-002-TOR
Former Medical Doctor Sentenced to 20 Years in Prison<br /> for Engaging in Illicit Sexual Conduct with Minors in KenyaRead the Press Release
A former medical doctor was sentenced today to serve 20 years in prison for engaging in illicit sexual conduct with minors in Kenya.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of Columbia Ronald C. Machen Jr., and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
John D. Ott, 68, pleaded guilty in May 2013 before the Honorable Reggie B. Walton in the U.S. District Court for the District of Columbia to one count of engaging in illicit sexual conduct in a foreign place. Upon completion of his prison term, Ott will be placed on supervised release for the rest of his life. In addition, he will be required to register as a sex offender for the rest of his life.
According to court documents and proceedings, Ott was a former medical doctor who worked for non-governmental organizations and hospitals in Kenya. Court records show that Ott also started an orphanage in Kenya. Ott admitted that between approximately January 2004 and September 2012, he engaged in illicit sexual conduct in Muhuru Bay, Sori and Kendu Bay, Kenya, with at least 14 minors, who ranged in age from approximately nine to 17 years old when the illicit sexual conduct began. Ott admitted that he frequently paid for schooling and provided other financial support, including housing, for minors with whom he engaged in illicit conduct.
Ott has been in federal custody since he was arrested in December 2012, following his deportation from Tanzania.
The investigation was conducted by the FBI’s Washington Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs as well as by personnel at the U.S. Embassy in Dar es Salaam, Tanzania, and the U.S. Customs and Border Protection National Targeting Center.
The case was prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ari Redbord of the District of Columbia.
This case was brought as part of Project Safe Childhood, a nationwide initiative, launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Former Medical Doctor Sentenced to 20 Years in Prison for Engaging in Illicit Sexual Conduct with Minors in KenyaRead the Press Release
WASHINGTON – A former medical doctor was sentenced today to 20 years in prison for engaging in illicit sexual conduct with minors in Kenya, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr., and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office.
John D. Ott, 68, pled guilty in May 2013 before the Honorable Reggie B. Walton in the U.S. District Court for the District of Columbia to one count of engaging in illicit sexual conduct in a foreign place. Upon completion of his prison term, Ott will be placed on supervised release for the rest of his life. In addition, he will be required to register as a sex offender for the rest of his life.
According to filed court documents and proceedings, Ott was a former medical doctor who worked for non-governmental organizations and hospitals in Kenya. Court records show that Ott also started an orphanage in Kenya. Ott admitted that between approximately January 2004 and September 2012, he engaged in illicit sexual conduct in Muhuru Bay, Sori and Kendu Bay, Kenya, with at least 14 minors, who ranged in age from approximately nine to 17 years old when the illicit sexual conduct began. Ott admitted that he frequently paid for schooling and provided other financial support, including housing, for minors with whom he engaged in illicit conduct.
Ott has been in federal custody since he was arrested in December 2012, following his deportation from Tanzania.
The case was prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ari Redbord of the District of Columbia. The investigation was conducted by the FBI’s Washington Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs as well as by personnel at the U.S. Embassy in Dar es Salaam, Tanzania and by the U.S. Customs and Border Protection National Targeting Center.
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 U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
13-411Former Bank VP Heads to Federal PrisonRead the Press Release
HOUSTON - Shawn Nelson, 39, of Houston and a former vice-president at Members Choice Credit Union (MCCU), has been ordered to serve more than three years in prison for embezzling approximately $340,000 from the bank, announced United States Kenneth Magidson. Nelson entered a guilty plea on June 27, 2013.
Today, U.S. District Court Judge Keith P. Ellison, who accepted the guilty plea, handed Nelson a 37-month sentence. In handing down the sentence, Judge Ellison described Nelson’s misconduct as “grievous” and further ordered him to pay restitution of $340,000 – the amount Nelson stole from MCCU over a nine-year period. Following completion of his prison term, Nelson will be on supervised release for three years.
As part of his guilty plea, Nelson admitted he was a vice-president of Lending at MCCU. From 2001 through 2010, Nelson opened loan accounts in the names of his friends and family members, without their authorization. He then withdrew money from these accounts, again without their authorization. By the time the fraud was discovered, Nelson had stolen about $340,000 from the credit union.
Nelson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prison facility to be determined in the near future.
U.S. Secret Service investigated. The case was prosecuted by Assistant United States Attorney (AUSA) Sharad S. Khandelwal, while AUSA Kristine Rollinson is handling forfeiture matters.
Florida Man Pleads Guilty to Money Laundering, Involvement in Illegal Gambling RingRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that CRAIG CAFFRO, 48, of Florida, pleaded guilty yesterday before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of money laundering and one count of operating an illegal gambling business. As part of his guilty plea, CAFFRO has agreed to forfeit $50,000.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, CAFFRO and 19 other individuals were charged with various offenses related to their involvement in multiple illegal gambling businesses in southern Connecticut controlled by the Gambino organized crime family, including a large-scale, Internet-based sports bookmaking operation based in Stamford that had penetrated New Haven County and parts of metropolitan New York.
The investigation, which included the use of court-authorized wiretaps, revealed that Dean DePreta headed a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. CAFFRO served as the bookmaking operation’s point person with the www.44wager.com website, and received regular payments from DePreta and co-defendant Richard Uva to pay for use of the website. At CAFFRO’s direction, one of these payments was laundered through the bank account of the elderly mother of one of CAFFRO’s associates living in New Jersey.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011. As of this date, 19 defendants have agreed to forfeit approximately $1.5 million in illegal proceeds.
CAFFRO is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 26, 2014, at which time he faces a maximum term of imprisonment of 20 years.
DePreta and Uva each pleaded guilty to racketeering conspiracy. On October 9, 2013, DePreta was sentenced to 71 months of imprisonment and ordered to forfeit $300,000. On October 24, 2013, Uva was sentenced to 46 months of imprisonment and ordered to forfeit $250,000.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
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(203) 821-3722 [email protected]Final Defendant Sentenced in Major Federal Gang and Drug Operation on the Ft. Apache Indian ReservationRead the Press Release
PHOENIX – On Dec. 2, 2013, approximately 18 months following a large gang and drug sweep on the Ft. Apache Indian Reservation, the last of over 20 defendants was sentenced in federal district court. Brandon Kasey, 24, of Whiteriver, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 48 months imprisonment, with credit for time served, followed by three years of supervised release. A list of related defendants and court numbers is below.
This community impact investigation was led by the Federal Bureau of Investigation’s Northern Arizona Safe Streets Task Force. The investigation resulted in the successful federal prosecution of over 20 defendants for various charges, including drug trafficking and firearms violations, as well as gang-related assault charges and domestic violence charges. The individual sentences ranged from probation up to 15 years imprisonment.
The investigation resulted in the seizure of a number of vehicles; in excess of $100,000 in cash; over 100 firearms, mostly military style weapons; and the dismantling of Whiteriver’s most organized street gang, the Diamond Creek Boyz.
The Federal Bureau of Investigation received substantial assistance from the Arizona Department of Public Safety, the Bureau of Indian Affairs, the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Flagstaff Police Department.
Name
CR #
Eric Altaha
12-8122- PCT-PGR
12-08114-PCT-NVW
Tashina Bonito
12-8137- PCT-NVW
David Boshane
12-8117- PCT-JAT
Ardy Cosay
12-8127- PCT-NVW
Arnold Cosay
12-8116- PCT-PGR
Robert Dayaye
12-8017- PCT-NVW
12-8098- PCT-GMSAmie Gloshay
12-8121- PCT-JAT
Feather Grimes
12-8139- PCT-GMS
Richard Grimes
12-8139- PCT-GMS
Robert Hinton
12-8098- PCT-GMS
Avalon Holden
12-8120- PCT-NVW
Jamie Johnson
12-8123- PCT-DGC
Renny Johnson
12-8123- PCT-DGC
Brandon Kasey
12-8098- PCT-GMS
12-8129- PCT-FJMCharles Larzelere
12-8124- PCT-JAT
Dakota Lupe
12-8125- PCT-GMS
Duane Massey
12-8128- PCT-GMS
12-8202- PCT-GMSMarcelena Minjarez
12-8126- PCT-DGC
Thomas Pacheco
12-8118- PCT-DGC
Estiven Quintana
12-8098- PCT-GMS
12-8115- PCT-GMS
12-8035- PCT-GMSChad Tessay
12-8110- PCT-JAT
Garrett Thompson
12-8189- PCT-GMS
RELEASE NUMBER: 2013-091a_Ft.ApacheTakedown
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Federal Jury Convicts Defendants in Greece Triple MurderRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal jury found three defendants guilty of committing a triple murder in the town of Greece on March 9th, 2010. Richard Anderson, Andrew Wright and Aston Johnson were convicted of the murders of victims Christopher Green, Robert Moncriffe and Mark Wisdom.
“Today’s verdict brings to a successful conclusion one of the one of the most vicious episodes in recent memory,” said U.S. Attorney Hochul. “As this case demonstrates, the violence associated with narcotics trafficking can occur anywhere. It also shows the ability of law enforcement to solve crimes and track killers across multiple jurisdictions and regions of the country. This office will not rest until all other violent criminal organizations are brought to justice.”
Specifically, Anderson, Wright and Johnson were convicted of possessing and discharging firearms and murdering the three victims in furtherance of a marijuana conspiracy. Each defendant faces a maximum of life in prison on each of the three murders. Anderson, Wright and Johnson were also convicted under a separate federal statute of intentionally killing the three victims while engaged in the marijuana conspiracy. They face maximum life in prison on each of those murder charges as well.
The defendants were also convicted of conspiring to possess with intent to distribute and to distribute at least 1000 kilograms of marijuana. Because of prior drug felony convictions, Richard Anderson and Andrew Wright face mandatory terms of life imprisonment on the conspiracy conviction. Aston Johnson faces a mandatory minimum term of imprisonment of 20 years and a maximum of life in prison on the conspiracy. In addition, the three men were also convicted of possessing three firearms in their drug storage house in Phoenix, Arizona, in furtherance of the marijuana conspiracy. They face a consecutive mandatory minimum term of imprisonment of five years and a maximum of life in prison on that conviction.
The federal jury trial lasted 10 weeks. The Government called a total of 65 witnesses to testify and introduced over 530 items of evidence. The trial was prosecuted by Assistant U.S. Attorneys Everardo (Andy) Rodriguez and Frank Sherman.
The verdict is the result of an investigation conducted by the Greece Police Department under the direction of Chief Todd Baxter; the Federal Bureau of Investigation under the direction of Special Agent in Charge Brian P. Boetig; the New York State Police, under the direction of Major Mark Koss; the Rochester Police Department under the direction of Chief James Sheppard; the U.S. Marshal?s Service under the direction of Marshal Charles Salina; the Monroe County District Attorney?s Office, under the direction of District Attorney Sandra Doorley; the Monroe County Sheriff?s Department, under the direction Sheriff Patrick O?Flynn; the Monroe County Crime Analysis Center; the United States Postal Inspection Service, under the direction of Raymond Williams; the U.S. Immigration and Customs Enforcement, under the direction of Special Agent in Charge James C. Spero; the U.S. Border Patrol, under the direction of Patrol Agent in Charge Tom Pocorobba, Jr,; the New York/New Jersey High Intensity Drug Trafficking area; the Franklin County, Ohio Sheriff?s Department; the Arizona Department of Public Safety; and the Los Angeles Police Department.
Richard Anderson will be sentenced on March 10, 2014 at 2:30 p.m.; Aston Johnson will be sentenced on March 11, 2014 at 2:15 p.m. and Andrew Wright will be sentenced on March 12, 2014 at 11:00 a.m., all before U.S. District Judge Charles J. Siragusa who presided over the trial of the case.Federal Grand Jury Charges Christian County Man with Sexual Exploitation of A MinorRead the Press Release
Springfield, Ill. – A federal grand jury has returned an indictment charging a former Taylorville school bus driver, James Marshall Owens, 43, of Owaneco, Ill., with two counts of sexual exploitation of a minor and one count of receiving child pornography. The indictment, returned yesterday, also seeks criminal forfeiture of various computers and a telephone belonging to Owens.
The indictment alleges that for each of the two counts of sexual exploitation of a minor, Owens enticed individuals under the age of 18 to engage in sexual activity for which a person could be charged with a criminal offense. The indictment alleges that Owens committed the offenses from about Aug. 16, 2012, to May 23, 2013, and from about December 2012 to February 2013. Further, the indictment alleges that Owens received child pornography on or about May 27, 2013.
If convicted, the statutory penalty for each count of sexual exploitation of a minor is a mandatory minimum of 10 years in prison and up to life in prison. For receiving child pornography, the penalty is five to 20 years in prison. The defendant may also be ordered to remain under supervised release for life following any term of imprisonment.
The charges are being investigated by the Federal Bureau of Investigation, the Illinois State Police, and the Christian County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Gregory K. Harris with the cooperation of the Christian County State’s Attorney’s Office.Owens was previously charged in state court following his arrest in May 2013, and has remained in the custody of law enforcement since his arrest. A date for Owens to make his initial appearance in federal court will be determined by the U.S. Clerk of the Court.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
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 U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Agents Arrest Operators of Loan Modification Scam That Targeted Struggling HomeownersRead the Press Release
Federal agents arrested yesterday Bryan D’Antonio, 47, of Brea, Calif., and Charles Wayne Farris, 53, of Aliso Viejo, Calif., for operating the Rodis Law Group and America’s Law Group, businesses that allegedly offered bogus loan modification assistance to struggling homeowners. Attorney Ronald Rodis, 49, of Irvine, Calif., surrendered today to federal agents on charges alleging that he participated in, and lent his name and the law license he formerly possessed to, the fraudulent operation. All three defendants were named in a federal indictment unsealed yesterday following an investigation by the FBI and IRS-Criminal Investigation.According to the indictment, as a result of the scheme run by D’Antonio, Farris and Rodis, more than 1,800 financially distressed homeowners lost a total of at least $12 million in fees they paid to the companies. Many homeowners also lost their homes to foreclosure. During a nine month period that began in October 2008, the Rodis Law Group and America’s Law Group allegedly defrauded distressed homeowners by making false promises and guarantees regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders, falsely representing that a “team of attorneys” would represent the homeowners and advising homeowners to cease making their mortgage payments.
“These arrests send a strong message to those who would prey on vulnerable homeowners during these tough financial times,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “If you defraud homeowners, you will be found and brought to justice.”
The Rodis Law Group, and its successor company, America’s Law Group, allegedly advertised loan modification assistance on radio stations nationwide. According to the indictment, many of these radio advertisements featured Rodis’ voice telling homeowners that a “team of experienced attorneys,” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance,” would negotiate with mortgage lenders. Sales staff hired and trained by Farris and D’Antonio allegedly told interested homeowners that Rodis Law Group was “100% successful,” “routinely lowered monthly payments” and obtained reduced principal balances. According to the indictment, once the defendants and their co-conspirators convinced homeowners to pay a fee of several thousand dollars, little to no effort was made to obtain loan modifications. After making their payments, homeowners who tried to get updates on the status of their cases were often unable to contact anyone at either company.
The indictment further alleges that D’Antonio committed these crimes after having been convicted of mail and wire fraud for his role in a previous telemarketing scheme. The previous scheme resulted in a civil case by the Federal Trade Commission and ultimately a court order, entered in 2001, which permanently banned D’Antonio from participating in future telemarketing operations. The indictment in this case alleges that D’Antonio committed criminal contempt of court by directing the telemarketing activities of Rodis Law Group and America’s Law Group and by misrepresenting the services they provided.
“Posing as successful lawyers, these defendants offered struggling homeowners false hopes and bogus promises of quality legal representation,” said U.S. Attorney for the Central District of California André Birotte Jr. “The market offering loan modifications is rife with fraud, which is why we have redoubled our efforts to investigate and prosecute those who engage in financial crimes that target distressed homeowners.”“The unconscionable act of scamming homeowners already facing foreclosure is far too common,” said Assistant Director in Charge of the FBI’s Los Angeles Field Office Bill Lewis. “This indictment should send a clear message to anyone contemplating similar crimes, and should also remind potential victims to be cautious before paying fees to those offering financial rescue, regardless of whether the solicitor holds a law degree.”
D’Antonio, Farris and Rodis are each charged with 10 felony counts – nine counts of wire fraud and one count of conspiracy. Each of these counts carries a statutory maximum penalty of 20 years’ imprisonment. In addition, D’Antonio is charged with 13 counts of criminal contempt for violating the 2001 court order. Criminal contempt of court has no statutory maximum penalty.
This indictment was brought in coordination with the President’s Financial Fraud Enforcement Task Force’s Mortgage Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.govAn indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Deaths of Smuggled Aliens Lands Mexican National in Federal Prison for 10 YearsRead the Press Release
CORPUS CHRISTI, Texas – Idelfonso Garcia-Benitez, 20, of Michoacan, Mexico, has been ordered to prison for smuggling of a group of 14 Illegal aliens that left seven dead, announced United States Attorney Kenneth Magidson today along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI).
“The tragic loss of life in this case shows the very real risks that people face when they put their fate in the hands of a human smuggler,” said Moskowitz. “Smugglers place personal profit ahead of public safety and border protection. They are driven by greed with little regard for the health and well-being of their human cargo, and sadly, that can be a deadly combination.”
The indictment charged Garcia-Benitez with one count of conspiring to transport aliens, 14 counts of transporting an alien and one count of illegal re-entry after deportation. On Aug. 22, 2013, he entered a guilty plea to all counts as charged without a written plea agreement.
Today, U.S. District Judge Janis Graham Jack, who accepted the guilty plea, handed Garcia-Benitez a total sentence of 120 months in federal prison and ordered him to pay $2,161,529.16 in restitution. In handing down the sentence, Judge Jack noted the loss of life and monetary costs that resulted from the crime. As an illegal alien, he is expected to face deportation proceedings following his release from prison.
On March 20, 2013, at approximately 11:00 p.m., a Kingsville Police Department officer observed a pick-up truck violate state traffic law by disregarding a stop sign. The officer attempted to conduct a traffic stop on this vehicle, but the vehicle fled, leading to a brief pursuit.
The driver crashed into a vehicle barrier on General Cavazos Avenue in Kleberg County that had been deployed by the Kingsville Naval Air Station. A total of 15 illegal aliens were discovered at the scene. Of those, Garcia-Benitez was identified as the driver. Seven were killed.
Garcia-Benitez was arrested at the scene of the accident. He has been in custody since that time, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by HSI and prosecuted by Assistant United States Attorney Jeffrey S. Miller.
Construction Executive Steven Pumper Sentenced to Eight Years in Prison for Paying Bribes to Public OfficialsRead the Press Release
A Cuyahoga Falls man was sentenced to more than eight years in prison and ordered to pay more than $2 million in restitution for paying bribes to public officials as part of the Cuyahoga County corruption investigation, law enforcement officials said.
Steven W. Pumper, 49, was sentenced to 97 months in prison by U.S. District Judge Sara Lioi. She also ordered Pumper to pay restitution in the amounts of $1.7 million to Phillips Health Care, $186,000 to Cuyahoga County, $117,000 to Maple Heights City Schools and $15,000 to Parma City Schools.
Pumper previously pleaded guilty to a nine-count information for charges including conspiracy to commit bribery of programs receiving federal funds, obstruction of justice, bribery, mail fraud, structuring and mail fraud.
Pumper, the former president and CEO of DAS Construction, admitted to paying bribes to public officials in return for official actions on his behalf. For example, Pumper provided $33,000 in cash to then-Cuyahoga County Commissioner Jimmy Dimora, and also provided free improvements to Dimora’s home worth tens of thousands of dollars. These actions were done in return for Dimora’s support on several projects in which Pumper was involved, including securing funding for development projects.
In another example, Pumper provided a political donation to the Cuyahoga County Democratic Party that was specifically to be used by the campaign of Parma School Board member J. Kevin Kelley. In return, Kelley helped Pumper’s company secure a $96,000 contract from the school district.
Dimora is currently serving a 28-year prison sentence while Kelley is scheduled to be sentenced later this month.
This case was prosecuted by Assistant U.S. Attorneys Ann C. Rowland and Antoinette T. Bacon following an investigation by the Federal Bureau of Investigation’s Cleveland office and the Internal Revenue Service – Criminal Investigation.
Childersburg City Councilwoman Pleads Guilty to Bank Fraud and Money LaunderingRead the Press Release
BIRMINGHAM -- A Childersburg City Councilwoman pleaded guilty today in federal court to bank fraud and laundering nearly $1 million from SouthFirst Bank in Childersburg, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell, and IRS Criminal Investigation Supervisory Special Agent in Charge Veronica Hyman-Pillot.
Federal prosecutors charged BONNY JEAN CARTER in October with the nearly $1million embezzlement from SouthFirst Bank. According to the charge and her guilty plea before Senior U.S. District Judge Inge P. Johnson, Carter, 61, worked as an account clerk at SouthFirst Bank. In that position, between October 2002 and March 2013, Carter embezzled funds held by SouthFirst Bank by converting the money to personal savings accounts. Carter recorded journal entries to transfer money from various SouthFirst Bank general ledger accounts into personal accounts held in her daughter's name. She also skimmed amounts from checks made payable to SouthFirst Bank by depositing the funds into those personal accounts. Additionally, Carter issued debit transactions from SouthFirst Bank’s operating expense account to pay personal debts she owed.
As part of a plea agreement Carter entered with the government in October, she is responsible for repaying $951,787 to SouthFirst Bank. Her sentencing is scheduled March 11.
The maximum penalty for bank fraud is 30 years in prison and a $1 million fine, and the maximum penalty for money laundering is 10 years in prison and a $250,000 fine.
The U.S. Secret Service and Internal Revenue Service investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
Childersburg City Councilwoman Pleads Guilty to Bank Fraud and Money LaunderingRead the Press Release
BIRMINGHAM -- A Childersburg City Councilwoman pleaded guilty today in federal court to bank fraud and laundering nearly $1 million from SouthFirst Bank in Childersburg, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell, and IRS Criminal Investigation Supervisory Special Agent in Charge Veronica Hyman-Pillot.
Federal prosecutors charged BONNY JEAN CARTER in October with the nearly $1million embezzlement from SouthFirst Bank. According to the charge and her guilty plea before Senior U.S. District Judge Inge P. Johnson, Carter, 61, worked as an account clerk at SouthFirst Bank. In that position, between October 2002 and March 2013, Carter embezzled funds held by SouthFirst Bank by converting the money to personal savings accounts. Carter recorded journal entries to transfer money from various SouthFirst Bank general ledger accounts into personal accounts held in her daughter's name. She also skimmed amounts from checks made payable to SouthFirst Bank by depositing the funds into those personal accounts. Additionally, Carter issued debit transactions from SouthFirst Bank’s operating expense account to pay personal debts she owed.
As part of a plea agreement Carter entered with the government in October, she is responsible for repaying $951,787 to SouthFirst Bank. Her sentencing is scheduled March 11.
The maximum penalty for bank fraud is 30 years in prison and a $1 million fine, and the maximum penalty for money laundering is 10 years in prison and a $250,000 fine.
The U.S. Secret Service and Internal Revenue Service investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
California Couple Convicted of Federal Credit Card Fraud and Identity Theft ChargesRead the Press Release
ATLANTA - Elton Lee Flenaugh and Deje D. Silas have been convicted of federal credit card fraud and identity theft charges.
“This case highlights the need for aggressive federal investigation and prosecution of credit card fraud and identity theft crimes,” said United States Attorney Sally Quillian Yates. “We commend the U.S. Secret Service for synchronizing local law enforcement activities in multiple cities to bring this brazen, multi-state scheme to a halt, and these defendants to justice.”
“The defendants’ criminal actions reflect how advancements in digital technology can alternatively have a negative effect on our communities. The Secret Service will continue to collaborate with its law enforcement partners and the public and private sectors to actively investigate and arrest those that commit crimes that prey on unsuspecting victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to United States Attorney Yates, the charges, and other information presented in court: Flenaugh and Silas had a romantic relationship dating back several years. On February 9, 2013, Flenaugh and Silas were scheduled to fly from Atlanta to Los Angeles. During the pre-flight security screening process, alert TSA security officers noticed a suspicious package in Flenaugh’s carry-on bag and, upon further inspection, found nearly 100 fraudulent credit cards secreted inside of a double-sealed manila envelope, which had been hidden inside of an empty, foil-lined Lay’s potato chip bag. 33 of the cards were embossed in Silas’ name, 28 were embossed in three different aliases used by Flenaugh, and 21 were blank and had not yet been embossed. Subsequent searches by the Atlanta Police Department revealed fraudulent driver’s licenses inside of the protective case attached to Silas’ cell phone, and underneath the removable insole of one of Flenaugh’s shoes in the carry-on bag.
Additional investigation revealed fraudulent credit cards, licenses, and stolen credit card account and identity information of hundreds of people. These were found in personal items seized from and during searches of Google e-mail accounts controlled by Flenaugh and Silas, an Apple iPad seized from them at the airport, and a 2007 BMW M6 automobile registered to one of Flenaugh’s aliases.
The investigation showed that the scheme began at least by early 2012 and continued until Flenaugh and Silas’ arrests in February 2013. The scheme involved obtaining credit and debit card account information of hundreds of people, which were then used to manufacture fraudulent credit cards. The cards were made to appear as if they had been issued by major financial institutions such as Chase Bank, U.S. Bank, and Capital One. The defendants also obtained personal identifying information -- including Social Security numbers, dates of birth, and credit information -- of dozens of people, which were used to create fraudulent driver’s licenses to use with the fraudulent credit cards. The fraudulent credit cards were then embossed with the names used on the fraudulent driver’s licenses. The issuing banks and the names embossed on the fraudulent credit cards were merely a front to make them appear legitimate. The magnetic stripes on those cards were encoded with the actual debit and credit card account information of account holders at dozens of financial institutions throughout the country, but primarily at credit unions located in California, Florida, Georgia, Oregon, and Washington.
In at least three instances identified to date, Flenaugh and Silas opened fraudulent credit card accounts in one of the stolen identities and made thousands of dollars in unauthorized charges. As part of his plea agreement with the United States, Flenaugh agreed that he is responsible for losses between $200,000 and $400,000.
Elton Lee Flenaugh, a/k/a Josh Ford a/k/a Ali Waheed, 34, of Richmond, Ca., and Deje D. Silas, 21, of San Francisco, Ca., were originally arrested and charged by the Atlanta Police Department at the airport on February 9th, and taken into custody by the Clayton County Sherriff’s Office.
On March 4, 2013, the U.S. Secret Service took Flenaugh into federal custody at the Clayton County Jail after Clayton County authorities indicated that Flenaugh had posted bond and would be released from custody in Clayton County. A federal complaint was filed against him later that day. On March 7, 2013, the court ordered Flenaugh detained as a flight risk and as a danger to the community, and he has remained in custody since then. A federal grand jury indicted Flenaugh on the instant charges on April 2, 2013.
Flenaugh pleaded guilty today to one count of possession of 15 or more counterfeit or unauthorized access devices, and one count of aggravated identity theft. The charge against him for possession of counterfeit or unauthorized access devices carries a maximum sentence of 10 years in federal prison, and the aggravated identity theft charge carries a mandatory minimum sentence of two years in federal prison, which is required to be imposed consecutive to any sentence imposed on the possession charge. Each of the charges also authorizes a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Silas remained in Clayton County custody until May 8, 2013, when she agreed to waive indictment and appeared in federal court on a Criminal Information pursuant to a negotiated plea agreement. On May 21, 2013, she pleaded guilty to one count of conspiracy to possess 15 or more counterfeit or unauthorized credit cards. On August 28, 2013, the court sentenced Silas to three years, five months in federal prison in connection with the scheme. Silas is currently serving her sentence.
Sentencing for Flenaugh is scheduled for Feb. 27, 2014, at 2:00 p.m. before Senior United States District Judge Orinda D. Evans.
This case is being investigated by Special Agents of the United States Secret Service. Valuable assistance has been provided by the Hartsfield-Jackson Atlanta International Airport division of the Atlanta Police Department, the Office of the Chief Counsel of the Transportation Security Administration, the City of Atlanta Department of Aviation, the Miami-Dade State’s Attorney’s Office, the San Francisco Field Office of the Federal Bureau of Investigation, the Investigations Division of the California Department of Motor Vehicles, and the Oakland Police Department.
Assistant United States Attorney David M. Chaiken is prosecuting the case.
Anyone who believes they may be the victim of identity theft is strongly encouraged to request and review their credit reports from the three nationwide consumer credit reporting companies; Equifax, Experion, and Trans Union, to be sure everything on the reports are authorized, and that they request a fraud alert from the companies. It is also suggested that they immediately close any accounts that have been compromised or opened fraudulently. Those who do online banking or manage other accounts online, check these accounts regularly and be sure passwords are strong. To report identity theft, contact the Federal Trade Commission at: http://www.consumer.ftc.gov/articles/0277-create-identity-theft-report or the FTC Identity Theft Hotline at 1-877-438-4338 or TTY 1-866-653-4261.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Berlin Man Admits Running Investment Fraud SchemeRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that FRANK METE, 55, of Berlin, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to fraud and tax evasion offenses stemming from an investment fraud scheme.
According to court documents and statements made in court, from approximately 2009 to November 2012, METE operated an investment fraud scheme in which he held himself out as a broker of hard money loans between investors and purported individual borrowers who were willing to borrow money at interest rates of 15 to 18 percent. In fact, there were no such borrowers. In order to induce the investors to extend loans to the purported borrowers through him as the broker, METE created false promissory notes, mortgage documents and other false records using the names of the fictitious borrowers. After receiving from the victim investors checks that were made out to the purported borrowers, he forged the signatures on the checks and deposited the funds into several bank accounts he opened in the borrowers’ names.
Through this scheme, METE defrauded investors of approximately $1,191,610.50. He used the funds to pay for various personal expenses.
METE also failed to file federal income tax returns from 2009 to 2012, causing a tax loss to the government of approximately $357,324.
METE pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years.
This case is assigned to U.S. District Judge Robert N. Chatigny. A sentencing date has not been scheduled.
METE has been detained in state custody on unrelated charges since November 8, 2013.This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Eric J. Glover.
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(203) 821-3722 [email protected]Bergen County Woman Sentenced to 10 Years in Prison for Murder-For-Hire Plot Against RivalRead the Press Release
NEWARK, N.J. – A Bergen County, N.J., woman was sentenced today to 120 months in prison for trying to hire a hitman to kill a romantic rival by shooting her in the head, U.S. Attorney Paul J. Fishman announced.
Nicole Faccenda, 44, of Lyndhurst, N.J., previously had pleaded guilty on Aug. 8, 2012 before U.S. Magistrate Judge Patty Shwartz to an information charging her with one count of using the mail and facilities of commerce with the intent of carrying out a murder-for-hire plan. Faccenda was charged in October 2011 with offering to pay someone to kill her ex-boyfriend’s new girlfriend. U.S. District Judge Faith S. Hochberg imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Faccenda had been in a long-term relationship with a man who had fathered her child. The relationship ended when the man began seeing with another woman, with whom he also had a child. On Oct. 19, 2011, Faccenda contacted a person she knew and trusted in Florida and asked for help in finding someone to carry out a hit on her ex-boyfriend’s new girlfriend. She said she had a black dress ready to wear to the intended victim’s funeral and would “spit on the casket.”
The acquaintance contacted federal authorities, and the next day, spoke again with Faccenda – a conversation that was recorded by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The acquaintance told Faccenda he had found someone to do the murder. The acquaintance and an undercover ATF task force officer posing as a hitman then met with Faccenda at a Mahwah, N.J., supermarket parking lot to arrange the killing.
Faccenda agreed to pay the undercover hitman $5,000 in advance and $5,000 after the girlfriend was killed. In a number of recorded conversations, Faccenda said she wanted the new girlfriend to be gone, and her boyfriend to be miserable. She said she wanted the girlfriend shot in the head and that the boyfriend could be shot in the foot. If something happened to the girlfriend’s children, she said, “Oh, well, I’m sorry.”
On Oct. 24, 2011, Faccenda met with her acquaintance from Florida in a Secaucus, N.J., gas station parking lot and gave him an envelope with $2,000 for the purported hitman. Over the next few hours, she provided information, including a name, photo, work schedule and license plate number of the intended victim. Two days later, on Oct. 26, 2011, the friend called Faccenda and told her the victim had been shot in the head in what appeared to be a robbery. Faccenda was arrested at work by ATF agents a short time later.
In addition to the prison term, Judge Hochberg sentenced Faccenda to three years of supervised release and ordered her to pay restitution of $19,292.
U.S. Attorney Fishman credited special agents of the ATF under the direction of Acting Special Agent in Charge George Belsky with the investigation leading to today’s sentencing.
The government is represented by Special Litigation Counsel Serina M. Vash of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Peter Willis Esq., Jersey City, N.J.
Bergen County Woman Sentenced to 10 Years in Prison for Murder-For-Hire Plot Against RivalRead the Press Release
NEWARK, N.J. – A Bergen County, N.J., woman was sentenced today to 120 months in prison for trying to hire a hitman to kill a romantic rival by shooting her in the head, U.S. Attorney Paul J. Fishman announced.
Nicole Faccenda, 44, of Lyndhurst, N.J., previously had pleaded guilty on Aug. 8, 2012 before U.S. Magistrate Judge Patty Shwartz to an information charging her with one count of using the mail and facilities of commerce with the intent of carrying out a murder-for-hire plan. Faccenda was charged in October 2011 with offering to pay someone to kill her ex-boyfriend’s new girlfriend. U.S. District Judge Faith S. Hochberg imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Faccenda had been in a long-term relationship with a man who had fathered her child. The relationship ended when the man began seeing with another woman, with whom he also had a child. On Oct. 19, 2011, Faccenda contacted a person she knew and trusted in Florida and asked for help in finding someone to carry out a hit on her ex-boyfriend’s new girlfriend. She said she had a black dress ready to wear to the intended victim’s funeral and would “spit on the casket.”
The acquaintance contacted federal authorities, and the next day, spoke again with Faccenda – a conversation that was recorded by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The acquaintance told Faccenda he had found someone to do the murder. The acquaintance and an undercover ATF task force officer posing as a hitman then met with Faccenda at a Mahwah, N.J., supermarket parking lot to arrange the killing.
Faccenda agreed to pay the undercover hitman $5,000 in advance and $5,000 after the girlfriend was killed. In a number of recorded conversations, Faccenda said she wanted the new girlfriend to be gone, and her boyfriend to be miserable. She said she wanted the girlfriend shot in the head and that the boyfriend could be shot in the foot. If something happened to the girlfriend’s children, she said, “Oh, well, I’m sorry.”
On Oct. 24, 2011, Faccenda met with her acquaintance from Florida in a Secaucus, N.J., gas station parking lot and gave him an envelope with $2,000 for the purported hitman. Over the next few hours, she provided information, including a name, photo, work schedule and license plate number of the intended victim. Two days later, on Oct. 26, 2011, the friend called Faccenda and told her the victim had been shot in the head in what appeared to be a robbery. Faccenda was arrested at work by ATF agents a short time later.
In addition to the prison term, Judge Hochberg sentenced Faccenda to three years of supervised release and ordered her to pay restitution of $19,292.
U.S. Attorney Fishman credited special agents of the ATF under the direction of Acting Special Agent in Charge George Belsky with the investigation leading to today’s sentencing.
The government is represented by Special Litigation Counsel Serina M. Vash of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Peter Willis Esq., Jersey City, N.J.
Austin Attorney Marc G. Rosenthal Sentenced to Federal Prison in Connection with South Texas Bribery SchemeRead the Press Release
In Brownsville last night, United States District Judge Andrew Hanen sentenced 51–year-old Austin attorney Marc Garrett Rosenthal to 20 years in federal prison followed by three years of supervised release and ordered him to pay $13,288,984.00 restitution for his role in a South Texas bribery scheme announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division, Drug Enforcement Administration Special Agent in Charge Javier Pena, Houston Field Division, Internal Revenue Service-Criminal Investigation Acting Special Agent In Charge Bernard Butler and Brownsville Police Chief Orlando Rodriguez.
In February, jurors convicted Rosenthal of conspiring to bribe a State District Judge, bribe witnesses in both state and federal court cases, file fraudulent personal injury cases in both state and federal courts and deprive the citizens of Cameron County, Texas, of the right to honest services of an elected official.
“Marc Rosenthal and the public officials with whom he conspired not only betrayed their professional ethical obligations but actively sought to corrupt the very legal processes that were designed to do justice,” stated United States Attorney Robert Pitman. “Sadly, innumerable honorable acts performed by honest lawyers and public officials are undone in the eyes of the public when the Marc Rosenthals of our profession violate the public trust for personal gain.”
Evidence presented at trial revealed that from November 2005 until December 2009, Rosenthal and others, including 404th Judicial District Court Judge Abel Corral Limas and former state legislator and attorney Jose Santiago “Jim” Solis, participated in a scheme in which Rosenthal directly, or facilitated by Solis, paid money and other considerations to Limas which resulted in favorable court rulings for Rosenthal & Watson clients.
The evidence also revealed that Rosenthal directed others to pay certain individuals, including funeral home directors and a public employee, for the referral of plaintiff’s personal injury cases; make arrangements to manipulate the random case assignment system at the Cameron County District Clerk’s Office so that cases were filed in Courts preferred by Rosenthal & Watson; and, pay witnesses to provide false testimony and statements.
Rosenthal was convicted of one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; five counts of mail fraud; three counts of tampering with witnesses or proceedings; one count of extortion; and, three counts of mail fraud, aiding and abetting and deprivation of honest services. At sentencing, Judge Hanen set aside two of the counts of conviction, both mail fraud counts.
This investigation was conducted by the FBI, DEA, IRS-Criminal Investigation and the Brownsville Police Department. Former Southern District of Texas Assistant United States Attorney Michael Wynne and Southern District of Texas Assistant United States Attorney Oscar Ponce prosecuted this case on behalf of the Government.