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Thursday 26 September 2013
Miami Home Health Company Recruiter Pleads Guilty in $48 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter of a Miami health care company pleaded guilty 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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Emilio Amador, 46, pleaded guilty before U.S. District Judge Federico A. Moreno to one count of conspiracy to receive health care kickbacks and two counts of receiving health care kickbacks. He faces a maximum penalty of five years in prison for each count when he is sentenced on Dec. 4, 2013.
According to court documents, Amador was a patient recruiter who worked for Caring Nurse Home Health Care Corp. (Caring Nurse), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately January 2006 through approximately 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. (Nation’s Best) as relevant conduct. Amador was the owner, operator and president of Nation’s Best. The billings for Nation’s Best were approximately $30 million.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality Home Health Care, Inc. (Good Quality), another fraudulent home health care agency, were sentenced to 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2013 indictment. From in or around January 2006 through in or around 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 these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under 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 1,500 defendants who collectively have falsely billed the Medicare program for more than $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 Recruiter Pleads Guilty in $48 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter of a Miami health care company pleaded guilty 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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Emilio Amador, 46, pleaded guilty before U.S. District Judge Federico A. Moreno to one count of conspiracy to receive health care kickbacks and two counts of receiving health care kickbacks. He faces a maximum penalty of five years in prison for each count when he is sentenced on Dec. 4, 2013.
According to court documents, Amador was a patient recruiter who worked for Caring Nurse Home Health Care Corp. (Caring Nurse), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately January 2006 through approximately 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. (Nation’s Best) as relevant conduct. Amador was the owner, operator and president of Nation’s Best. The billings for Nation’s Best were approximately $30 million.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality Home Health Care, Inc. (Good Quality), another fraudulent home health care agency, were sentenced to 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2013 indictment. From in or around January 2006 through in or around 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 these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under 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 1,500 defendants who collectively have falsely billed the Medicare program for more than $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.
Mexican Man Pleads Guilty to Re-entering the United States After Having Been Previously RemovedRead the Press Release
Defendant Sentenced to Time Served
ALBANY, NEW YORK—IGNACIO HERNANDEZ-LOPEZ, age 39, a citizen of Mexico, pled guilty and was sentenced today in United States District Court in Albany before United States District Court Judge Mae A. D’Agostino to one count of re-entry by a previously removed alien, announced United States Attorney Richard S. Hartunian. HERNANDEZ-LOPEZ was sentenced to time served.
HERNANDEZ-LOPEZ, a citizen of Mexico, was involuntarily removed from the United States to Mexico on March 17, 2004. On August 16, 2013, HERNANDEZ-LOPEZ, who did not have permission to re-enter the United States, was encountered by Immigration and Customs Enforcement officers in Whitehall, New York.
This case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement (ICE), Albany, New York.
Medina Man Sentenced to 14 Years in Prison for Child Pornography CrimesRead the Press Release
A Medina man was sentenced to 14 years in prison for crimes related to child pornography, law enforcement officials said today.
Richard J. Miezin, 48, was previously found guilty of receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, as well as making false statements and representations to the Federal Bureau of Investigation during their investigation.
Miezin knowingly distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct from April 27, 2010, through February 25, 2011, according to court documents.
“This sentence should send a message to those who would victimize children,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“Victims of child pornography are repeatedly harmed when images of their abuse are distributed over the Internet,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “Individuals like Richard Miezin, who choose to engage in such despicable behavior, will be brought to justice.”
“Protecting our children from this type of exploitation is one of my highest priorities,” said Medina County Sheriff Tom Miller. “I remain committed to combating those who would seek to victimize the most innocent among us.”
This case is the result of was a joint effort of the Medina County Sheriff’s Office and the Akron Office of the FBI’s Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Carol M. Skutnik.
Targeting child predators is a priority of this newly established task force with the Medina County Sheriff and FBI. This task force will utilize all available investigative, technical and community resources to protect the children in our communities.
Medical Clinic Owners and Patient Recruiters Charged in Miami for Role in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including two medical clinic owners, have been arrested in connection with a health care fraud scheme involving defunct home health care company Flores Home Health Care Inc. (Flores Home Health).
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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
In an indictment returned on Sept. 24, 2013, and unsealed this afternoon, Isabel Medina, 49, and Lerida Labrada, 59, were charged with conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison upon conviction. Together with Mayra Flores, 49, and German Martinez, 36, Medina and Labrada also face charges for allegedly conspiring to defraud the United States and to receive health care kickbacks as well as receipt of kickbacks in connection with a federal health care program, which carry a maximum penalty of five years in prison upon conviction.
According to the indictment, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Medina and Labrada were also the owners and operators of Miami medical clinics which allegedly provided fraudulent prescriptions to the owners and operators of Flores Home Health.
Flores Home Health was allegedly operated for the purpose of billing the Medicare program for, among other services, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for allegedly fraudulent claims for home health services.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under 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 A. Brendan Stewart 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 1,500 defendants who collectively have falsely billed the Medicare program for more than $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.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
Medical Clinic Owners and Patient Recruiters Charged in Miami for Role in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including two medical clinic owners, have been arrested in connection with a health care fraud scheme involving defunct home health care company Flores Home Health Care Inc. (Flores Home Health).
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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
In an indictment returned on Sept. 24, 2013, and unsealed this afternoon, Isabel Medina, 49, and Lerida Labrada, 59, were charged with conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison upon conviction. Together with Mayra Flores, 49, and German Martinez, 36, Medina and Labrada also face charges for allegedly conspiring to defraud the United States and to receive health care kickbacks as well as receipt of kickbacks in connection with a federal health care program, which carry a maximum penalty of five years in prison upon conviction.
According to the indictment, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Medina and Labrada were also the owners and operators of Miami medical clinics which allegedly provided fraudulent prescriptions to the owners and operators of Flores Home Health.
Flores Home Health was allegedly operated for the purpose of billing the Medicare program for, among other services, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for allegedly fraudulent claims for home health services.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under 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 A. Brendan Stewart 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 1,500 defendants who collectively have falsely billed the Medicare program for more than $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.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
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.
Mechanicsburg Man Sentenced for Tax EvasionRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Thomas C. Holloway, age 46, of Mechanicsburg, Pennsylvania, was sentenced today by Chief U.S. District Court Judge Christopher C. Conner for attempted income tax evasion for 2008. Holloway was sentenced to six months in prison, six months home confinement and one year of supervised release. Judge Conner further ordered that $80,000 in restitution be paid to the IRS.
According to United States Attorney Peter J. Smith, Holloway previously was employed by Spherion (an IT firm based in Mechanicsburg and formerly known as Intellimark and Technisource) between 2001 and 2009 and he embezzled company funds which were not reported on his income tax returns. Holloway previously was charged by local authorities with theft by deception in connection with the embezzlements and was sentenced in 2010 in state court to probation and ordered to pay $125,000 in restitution to Spherion. The current tax charges allege that the tax loss to the IRS was $80,000 for the years 2003-2009.
The case was investigated by the Criminal Investigation Division of the IRS and was prosecuted by Senior Litigation Counsel Bruce Brandler.
****Marshall County Man Charged with Sexual Exploitation of A MinorRead the Press Release
Peoria, Ill. — A federal grand jury has returned an indictment that charges Brian A. Miller, 35, of Varna, Ill., with 25 counts of sexual exploitation of a minor. The indictment, returned late yesterday, also seeks the criminal forfeiture of Miller’s cell phone and data storage device, alleging that said items were used in the commission of the alleged offenses and that the equipment was manufactured and transported in interstate and foreign commerce.
Miller was previously arrested and charged with one count of the same offense in a criminal complaint filed Aug. 29, 2013. At a hearing on Sept. 9, before U.S. Magistrate Judge John A. Gorman, Miller waived his detention hearing and was ordered to remain detained in the custody of the U.S. Marshals Service.
The affidavit filed in support of the criminal complaint alleges that Miller used a cell phone to take images of minors from a hole in the wall of his home while the minors were using a shower. The indictment returned today alleges that from about Jan. 1, 2010 through June 16, 2012, on 25 occasions, Miller used minors to produce images of child pornography.
If convicted, the statutory penalty for sexual exploitation of a minor in the production of child pornography is not less than 15 years in prison and up to 30 years in prison. The offense also carries a term of supervised release of up to life following any term of imprisonment.
The charge is the result of an investigation by the U.S. Secret Service; the Marshall County Sheriff’s Office, the Peoria County Sheriff’s Office and the Bloomington Police Department. Assistant U.S. Attorney Kirk D. Schoenbein is prosecuting the case.
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.
Manhattan U.S. Attorney and FBI Announce Charges Against New York Accountant in Connection with the Fraud at Bernard L. Madoff Investment SecuritiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Cheryl Garcia, the Acting Special Agent-in-Charge for the New York Regional Office of the U.S. Department of Labor’s Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations (“DOL-OIG”), and Jonathan Kay, the Regional Director for the New York Regional Office of the United States Department of Labor, Employee Benefits Security Administration (“DOL-EBSA”) announced that PAUL J. KONIGSBERG was arrested today for his role in the scheme to falsify books and records at Bernard L. Madoff Investment Securities (“Madoff Securities”), through which Bernard L. Madoff ran his multibillion-dollar Ponzi scheme. KONIGSBERG was also charged in connection with his role in creating a fictitious, no-show job through which a co-conspirator received hundreds of thousands of dollars in compensation from Madoff. KONIGSBERG was presented in Manhattan federal court this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Paul Konigsberg threw aside his ethical duties as an accountant in favor of his role as a false bookkeeper, which included allegedly participating in a scheme of back-dating client account statements to show fictitious trades and conjuring profits and losses of millions of dollars. With today’s indictment, he will be made to answer for his alleged conduct as yet another player on Madoff’s team.”
FBI Assistant Director-in-Charge George Venizelos said: “Sadly, as is often the case in a financial fraud, there was someone to help ‘cook the books’ in the Madoff scheme. Paul Konigsberg was arrested by FBI agents for his alleged role in the multibillion-dollar Ponzi scheme run by Bernard Madoff. Konigsberg allegedly falsified books and records and created a no-show job so a co-conspirator could receive thousands of dollars in compensation. The FBI will continue to investigate and arrest those involved with the Madoff scheme in an attempt to bring some justice to the victims of this devastating fraud.”
DOL-OIG Acting Special Agent-in-Charge Cheryl Garcia said: “Today’s arrest highlights our commitment to work with our law enforcement partners to investigate those who allegedly defraud employee benefit plans and seek to conceal their crimes by falsifying documents required by the Employee Retirement Income Security Act.”
DOL-EBSA New York Regional Director Jonathan Kay said: “Accurate reporting is an essential part of maintaining employee benefit plan integrity. EBSA’s efforts in this case exemplify our commitment to protecting employee benefits and working in coordination with fellow federal agencies.”
In a separate action, the United States Securities and Exchange Commission (“SEC”) announced civil charges against KONIGSBERG.
According to a superseding indictment unsealed today in Manhattan federal court:
KONIGSBERG, a lawyer and Certified Public Accountant, was the senior tax partner of Konigsberg Wolf & Co., P.C. (“Konigsberg Wolf”) and a minority shareholder of Madoff Securities International Limited (“Madoff International”), Madoff’s London-based affiliate. KONIGSBERG was the only person outside of the Madoff family to hold an ownership interest in either Madoff Securities or Madoff International.
Beginning in at least the early 1990s, Madoff began to steer many of his investors towards KONIGSBERG’s accounting practice, particularly certain long-time investors in whose accounts Madoff executed the most glaringly fraudulent transactions. By December 2008, when Madoff’s scheme collapsed, Konigsberg Wolf provided accounting services in connection with more than approximately 300 Madoff Securities accounts. As their accountant, KONIGSBERG typically received duplicate copies of his client’s Madoff Securities account statements, and sometimes the only copy.
After the death of one long-time Madoff client – who had recruited investors and had been promised by Madoff corresponding annual commission payments in the form of guaranteed returns – Madoff encouraged the client’s widow to use KONIGSBERG as her accountant. KONIGSBERG, Madoff, and Frank DiPascali, Jr. – who pled guilty for his role in the fraud and is cooperating with the Government – agreed on an investment “strategy” for the widow’s account. Under the “strategy,” the widow’s money would be “invested” in United States Treasury bonds and cash equivalents for the first 11 months of each year, and then in December, DiPascali would fabricate back-dated options trades in order to generate the promised returns. For instance, one of the widow’s accounts was invested in Treasuries and money market funds in January through November of 2003, resulting in net equity at the end of November 2003 of approximately $860,000. In January 2004, however, DiPascali back-dated fake options trades purportedly executed in December 2003 to generate an additional approximately $825,000, nearly doubling the value of the account. Each December, over the course of several years, KONIGSBERG spoke with DiPascali to ensure that DiPascali arranged for the back-dated trades necessary to ensure the widow’s promised returns.
Similarly, in May 2003, KONIGSBERG requested that another co-conspirator who worked at Madoff Securities (“CC-1”) create back-dated trades in a second client’s account, retroactive to December 2002, in order to generate losses for tax purposes. A Madoff Securities worksheet reflecting the specific composition of the back-dated trades bears the notation “Paul OK’d this,” and an associated note reads, “Jan losses were for 2002 Tax & were put on in May 2003.” The Madoff Securities computer system confirms that in May 2003, CC-1 back-dated the precise trades that “Paul OK’d” to December 2002.
From time to time, moreover, Madoff “amended” the holdings of certain of his oldest clients, replacing statements reflecting one set of securities with revised statements, for the exact same time period, reflecting entirely different holdings and values. Because the existence of multiple, vastly different account statements for the same time risked exposing the fraud, Madoff could only ask certain trusted clients to return their statements in favor of the “amended” ones. Because KONIGSBERG serviced many of Madoff’s most important accounts, he frequently returned statements in favor of the “amended” ones. For example, in late 2002 or early 2003, KONIGSBERG sent back an entire year’s worth of statements for one client in favor of new ones. The new statements reflected millions of dollars in additional profitable trading activity for the client. Likewise, in 2008, KONIGSBERG sent back several months’ worth of statements for a different client, in favor of new ones reflecting millions of dollars in losses.
In addition to being paid for his accounting services by the dozens of clients referred to him by Madoff, for over a decade, KONIGSBERG also received payments directly from Madoff Securities of approximately $15,000 to $25,000 per month for KONIGSBERG’S work in connection with one client in particular. That client, one of Madoff’s oldest and largest, deposited and withdrew tens of billions of dollars into Madoff Securities over the years, and Madoff executed glaringly fraudulent trades in his accounts, such as back-dating an entire year’s worth of statements into accounts that did not previously exist.
Beginning in approximately 1992, Madoff offered KONISBERG, the defendant, an additional cash payment of approximately $20,000 per year. Rather than receiving this money in the form of trading profits, KONIGSBERG instructed Madoff to pay a relative of KONIGSBERG’s (“CC-2”), who had previously worked at Madoff Securities. CC-2 received salary, health, and retirement benefits from Madoff Securities, despite the fact that in recent years CC-2 earned hundreds of thousands of dollars at an overseas hedge fund. Between approximately 1992 until December 2008, CC-2 received more than approximately $320,000 in cash compensation on account of CC-2’s “no show” job at Madoff Securities, plus health and retirement benefits to which CC-2 was not entitled.
KONIGSBERG, 77, was arrested in New York, New York. He is charged in two counts of conspiracy, one count of falsifying the books and records of a broker-dealer, one count of falsifying the books and records of an investment advisor, and one count of making false statements in a document required to be kept by ERISA. He faces a maximum sentence of 40 years in prison. He is also subject to mandatory restitution and criminal forfeiture, and faces criminal fines up to twice the gross gain or loss derived from the offense.
Mr. Bharara praised the work of the FBI, the DOL, and the Internal Revenue Service – Criminal Investigation. He also thanked the SEC.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which U.S. Attorney Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov .
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Matthew L. Schwartz, Randall W. Jackson, John T. Zach, and Christopher D. Frey are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Paul Konigsberg S11 Indictment
Local Chiropractor Pleads Guilty to Fraudulent Billing ClaimsRead the Press Release
Springfield, Ill. –Christopher Leone, owner of Leone Family Chiropractic, 1019 S. 6th Street, Springfield, Ill., today waived indictment and pleaded guilty to submitting fraudulent bills for services to private insurance companies and the Medicare program. Leone appeared today before U.S. Magistrate Judge Byron G. Cudmore. Sentencing is scheduled on Feb. 3, 2014, before U.S. District Judge Sue E. Myerscough. Leone has agreed to pay restitution in the amount of $48,624 on or before the sentencing hearing.
Leone, 41, is the owner of C.D. Leone Chiropractic, P.C., doing business as Leone Family Chiropractic. Leone was directly responsible and in control of the practice’s business aspects, including billing patients and the submission of claims for services to insurance companies, when the fraudulent claims were submitted. The business specializes in chiropractic treatment for the spine and nervous system and also offers other wellness treatments, including physical therapy.
Beginning in about 2005 to February 2011, Leone admitted he billed private insurance companies for a total of approximately $48,624 and the Medicare program for services specifically coded for physical therapy that required the physician or therapist have direct (one-on-one) patient contact. Leone admitted that neither he nor a therapist had direct patient contact, and in fact, the patients performed all physical therapy treatment on their own without any supervision by Leone or any other employee.
The Illinois State Police, Medicaid Fraud Control Bureau, and the Federal Bureau of Investigation conducted the investigation. The government is represented by Assistant U.S. Attorney Patrick D. Hansen.
For the offense of submitting false demands for payment against the United States of less than $1,000, the penalty is up to one year in prison and a fine of up to $100,000. The defendant may also be required to pay restitution to victims of the offense.
Justice Department Resolves Citizenship Status Discrimination <br /> Charge Against Pennsylvania Employer Huber NurseriesRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Huber Nurseries, based in Manheim, Pa., resolving allegations that Huber engaged in citizenship status discrimination by preferring to hire temporary visa holders over recent lawful permanent residents from Nepal. The underlying charge was filed by Philadelphia Legal Assistance on behalf of the lawful permanent residents.
The Department of Justice investigation was initiated on Aug. 15, 2012 when six lawful permanent residents from Nepal were denied employment by the Pennsylvania nursery. The department concluded that Huber unlawfully preferred to hire twelve foreign national workers under the H-2A visa program and subjected the U.S. workers to different selection standards and increased scrutiny. The H-2A temporary agricultural program allows agricultural employers who anticipate a shortage of domestic workers to bring nonimmigrant foreign workers to the U.S. to perform temporary agricultural work. The Immigration and Nationality Act (INA) generally prohibits employers from refusing to hire protected workers, including U.S. citizens, certain lawful permanent residents, refugees and asylees, based on their citizenship status.
Under the terms of the settlement, Huber has agreed to pay $2,250 in civil penalties to the United States and $59,617 in back pay to the six injured parties, who are former refugees. Huber has also agreed to provide its human resources personnel with training on the anti-discrimination requirements of the INA, adopt nondiscrimination policies with respect to recruitment and hiring and maintain and submit records to the Department of Justice for the one-year term of the agreement. Trial Attorney Richard Crespo represented the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) in this matter.
“Work-authorized individuals should not be denied access to jobs because of unlawful discrimination on the basis of immigration status or national origin," said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. "We are pleased to have reached a settlement with Huber and look forward to continuing to work with employers to educate them about anti-discrimination protections and employer obligations under the law."
OSC is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, or to report a possible violation, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Reaches Settlement with Southport Bank to Resolve Allegations of Mortgage Lending DiscriminationRead the Press Release
The Justice Department announced today that Southport Bank of Kenosha, Wis., will pay $687,000 to African-American and Hispanic wholesale mortgage borrowers as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of race and national origin.
The settlement, which is subject to court approval, was filed in conjunction with the Department’s complaint in the U.S. District Court for the Eastern District of Wisconsin. The complaint alleges that Southport charged hundreds of African-American and Hispanic borrowers higher fees than white borrowers on wholesale mortgage loans in violation of the Fair Housing Act (FHA) and Equal Credit Opportunity Act (ECOA). Southport cooperated fully with the Department’s investigation into its lending practices and agreed to settle this matter without contested litigation.
The lawsuit originated from a 2012 referral by the Federal Deposit Insurance Corporation (FDIC) to the Justice Department’s Civil Rights Division. Southport is regulated by the FDIC.
The proceeds of the settlement will be used to compensate the African-American and Hispanic victims of Southport’s alleged discrimination. Under the proposed settlement, a list of individual victims will be identified by the United States. The settlement requires borrowers who are eligible for compensation to be notified by the bank and provides for monitoring of the compensation process by the department.
Southport is not currently engaged in the business of wholesale home mortgage lending, but the settlement provides that if it re-enters that business, the bank will implement policies, practices and monitoring designed to prevent and detect potential fair lending violations.
“Discrimination on the basis of race and national origin in the extension of credit, including by wholesale lenders, must be eliminated,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. “We commend Southport for working cooperatively with the Justice Department in reaching an appropriate resolution of this case.”
“The United States Department of Justice, through both the Civil Rights Division and my office, remains steadfast in its commitment to identifying, investigating, and addressing patterns and practices of racial and national origin bias in the extension and management of mortgage loans” said James L. Santelle, U.S. Attorney for the Eastern District of Wisconsin. “ As reflected by today’s settlement, we are animated not only by the all-important mandates of the Fair Housing Act and the Equal Credit Opportunity Act but also by our much-related interest in ensuring that all Americans are afforded economic opportunities and financial options in this most basic aspect of life—housing. I join the Assistant Attorney General in recognizing the leadership of the Southport Bank of Kenosha for their cooperation in accomplishing this settlement that compensates members of our African-American and Hispanic communities for the discrimination that they suffered.”
The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 26 lending matters under the FHA, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for a minimum of $660 million in monetary relief for impacted communities and more than 300,000 individual borrowers. The Attorney General’s annual reports to Congress subject to ECOA highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/ .
The Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Wisconsin, and the FDIC are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit http://www.stopfraud.gov/ .
A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at http://www.justice.gov/fairhousing.
Justice Department Grant Awarded to Continue Anti-Violence Efforts in SeattleRead the Press Release
An innovative partnership led by the U.S. Attorney’s Office was awarded nearly $500,000 from the Department of Justice to continue efforts to combat gun violence in Seattle, announced U.S. Attorney Jenny A. Durkan. The two-year Project Safe Neighborhoods grant will support a comprehensive strategy to reduce gun crimes, work with at-risk youth, bolster re-entry efforts, and improve data gathering in the East and Southeast police precincts. The U.S. Attorney’s Office will lead a partnership of the King County Prosecuting Attorney’s Office, Seattle Police Department (SPD), Seattle Neighborhood Group, South Seattle Community College, Washington Association of Sheriffs and Police Chiefs, and research partner Michelle Maike.
“We must join together and use all tools to reduce gun violence in neighborhoods that have experienced far too much of it,” said U.S. Attorney Durkan. “That means supporting prevention efforts for at-risk youth, giving those re-entering our neighborhoods skills and support, and continuing our emphasis on prosecuting gun-related crimes. We are moving forward with proven community strategies, critical law enforcement support and extensive data gathering to keep our communities safe.”
The grant funding announced today will continue to fund a Senior Deputy King County Prosecutor to act as a Special Assistant U.S. Attorney, reviewing and prosecuting firearms-related cases. The grant also provides $90,000 for four youth prevention and intervention programs developed by Seattle Neighborhood Group. The programs include a chess club run by SPD Detective Denise “Cookie” Bouldin, a youth-run record label, an urban writing project for teens, and a boxing program developed by a former gang member. The grant also provides $90,000 to South Seattle Community College to provide life skills training, workforce development and other education programs to ex-offenders returning to the target neighborhoods.
Additional funding is aimed at gathering data on the programs and evaluating which strategies are working. SPD will receive $20,000 for its crime analysis unit to purchase new equipment and gather data for the program. An experienced researcher, Michelle Maike, will receive $100,000 to analyze the data and help develop new strategies to combat gun violence. Additionally, $30,000 is targeted towards raising public awareness of the anti-crime efforts in impacted neighborhoods. The Washington Association of Sheriffs and Police Chiefs will help administer the grant.
Jury Convicts Defendant in $25 Million Fraud SchemeRead the Press Release
Defendant Claimed to be a Fortune Teller and Spiritual Adviser
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, (IRS-CI), Frank Adderly, Chief, Fort Lauderdale Police Department, and Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, announce that a Fort Lauderdale federal jury found Rose Marks, 62, of Fort Lauderdale, Florida and New York, New York, guilty of all counts charged in connection with a $25 million fraud scheme.
More specifically, after a month-long trial, the jury convicted Rose Marks of all 14 counts in an indictment which charged conspiracy to commit mail fraud and wire fraud (18 U.S.C. ' 1349), mail fraud (18 U.S.C. ' 1341), wire fraud (18 U.S.C. ' 1343), conspiracy to commit money laundering and money laundering (18 U.S.C. ' 1956 and 1957), and filing false income tax returns (26 U.S.C. ' 7206). At sentencing, the defendant faces a maximum statutory term of 20 years in prison for each of the mail, wire fraud and conspiracy counts, 10 years for the money laundering counts and three years in prison for each of the tax counts, as well as mandatory restitution and possible fines.
Rose Marks was taken into custody after the verdict was returned. Sentencing is scheduled for December 9, 2013 at 3:30 p.m. before U.S. District Judge Kenneth A. Marra in West Palm Beach.
On August 16, 2011, a multi-count indictment was unsealed charging Rose Marks and nine other defendants with conspiracy to commit mail fraud and wire fraud (18 U.S.C. ' 1349), mail fraud (18 U.S.C. ' 1341), wire fraud (18 U.S.C. ' 1343), and money laundering conspiracy (18 U.S.C. ' 1956). The indictment, the result of “Operation Crystal Ball,” focused on a group of individuals, all family members, claiming to be fortune tellers, psychic readers and spiritual advisors. In reality, however, these individuals defrauded more than twenty victims out of $25 million.
According to the evidence at trial, Rose Marks and her co-conspirators held themselves out as fortune tellers, clairvoyants and spiritual advisers. In this way, they falsely represented to their victims that they could remove purported curses or negativity from their lives or that of their loved ones. Rose Marks and her co-conspirators claimed that these curses were the cause of illnesses, family problems, marital and relationship issues and other difficulties faced by their victims.
The evidence and testimony presented at trial showed that to execute the scheme, Rose Marks and her co-conspirators used magic tricks and false statements to induce their victims to give them large sums of money and other valuables, including jewelry and gold coins, to be “sacrificed” and “cleansed” of negativity. The defendants told victims that the money would be used for the “work”, which included meditation and prayer, and that they and their family would continue to suffer terrible consequences, unless the money and valuables was “cleansed.” Although the defendants promised to return the victims’ money and valuables when the “work” was completed, the defendants deposited the victims’ funds into bank accounts they controlled and used the money to pay for their personal expenses and promote their lifestyle.
The following defendants have entered guilty pleas and are awaiting sentencing in connection with the August 16, 2011, Indictment:
Vivian Marks, of Fort Lauderdale, Florida; pled guilty on 2/8/2013; Sentencing is set for 10/7/2013 at 1:30 p.m. in West Palm Beach, Florida.
Ricky Marks, of Fort Lauderdale, Florida and New York, New York; pled guilty on 3/12/2013; sentencing is set for 10/7/2013 1:30 p.m. in West Palm Beach, Florida.
Michael Marks, of Fort Lauderdale, Florida; pled guilty on 11/28/2012; sentencing is set for 10/7/2013 at 1:30 p.m. in West Palm Beach, Florida.
Victoria Eli, of Fort Lauderdale, Florida and Secaucus, New Jersey; pled guilty on 3/15/2013; sentencing is set for 11/4/2013 at 1:30 p.m. in West Palm Beach, Florida.
Nancy Marks, of Fort Lauderdale, Florida and New York, New York; pled guilty on 3/14/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.
Rosie Marks, of Fort Lauderdale, Florida; pled guilty on 2/8/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.
Cynthia Miller, of Fort Lauderdale, Florida; pled guilty on 3/15/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.
Donnie Eli, of Fort Lauderdale, Florida and New York, New York; pled guilty on 2/08/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.Mr. Ferrer commended the investigative efforts of IRS-CI, the Fort Lauderdale Police Department and U.S. Secret Service. This case is being handled by Assistant U.S. Attorneys Roger Stefin and Laurence Bardfeld.
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.
Indictment Charges Man with Passport FraudRead the Press Release
PHILADELPHIA – Ramon Ignacio Rosa-Santos, 32, of Philadelphia, was charged today in an Indictment with passport fraud and falsely claiming to be a United States citizen, announced United States Attorney Zane David Memeger. According to the Indictment, Rosa-Santos, an alien and a native and citizen of the Dominican Republic, falsely represented his identity in an application for an United States passport. Rosa-Santos falsely stated that his name was “J.L.S.,” and that he was born in Puerto Rico, and was, therefore, a United States citizen, which he knew to be false.
If convicted of the offenses, Rosa-Santos faces a total maximum sentence of 15 years imprisonment, a $500,000 fine, five years supervised release, and a $200 special assessment.
This case was investigated by the United States State Department Diplomatic Security Service and Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorney Anita Eve.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Harrisburg Man Charged Federally with Firearm Violation as Result of Drug Transaction DisputeRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment Wednesday charging Anderson Ortiz, age 34, of Harrisburg, Pennsylvania, for possessing a firearm after being convicted of a felony.
According to United States Attorney Peter J. Smith, the charge resulted from a May 31, 2013 incident in Harrisburg in which weapons were fired during an alleged dispute over drugs.
The case was investigated by the FBI and the Harrisburg Police Department as part of an on-going coordinated effort to combat drug violence in Harrisburg.
Prosecution is assigned to Assistant United States Attorney Joseph J. Terz.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Guy Joseph Manzo Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Missoula, on September 24, 2013, before U.S. District Judge Donald W. Molloy, GUY JOSEPH MANZO, a 62-year-old resident of North Babylon, New York, pled guilty to wire fraud. Sentencing has been set for January 8, 2014. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
On January 3, 2011, MANZO, who lives in New York, opened checking and savings accounts with Glacier Bank in Montana using the bank's online account opening services. The checking account number ended in 0308 and the savings account number ended in 0338. On January 12, 2011, MANZO opened a second checking account with Glacier Bank, ending in 0391.
In February 2011, MANZO attempted to fund the checking account ending in 0308 with three bad checks, totaling $9,252. Shortly thereafter, on March 1, 2011, Glacier Bank closed and charged off MANZO's 0308 account in the amount of $318.01. After the account was closed, he continued to write checks against the account. Between March and October 2011, MANZO wrote 36 bad checks against the closed 0308 account for a combined total of $175,042. Thirty-four of these checks, worth $173,000, were made payable to "Citibanks Mastercard." Each of the checks contain MANZO's signature.
In September 2011, MANZO successfully made 21 fraudulent ACH transfers, totaling $16,057.36, from an account with Glacier Bank that did not belong to him. Eleven of those transfers, totaling $887.42, were for his personal benefit. The other ten, totaling $15,071.94, were made for the benefit of his girlfriend (name withheld to protect privacy). Glacier Bank discovered the fraudulent transfers on September 30, 2011.
Finally, between October 2011 and January 2012, MANZO attempted 54 fraudulent ACH transfers, for a combined total of $45,325.61, which were ultimately unsuccessful. Those 54 attempted transfers did not process because they were attempted against closed accounts or accounts that did not exist. It appears MANZO attempted those fraudulent transactions by guessing Glacier Bank customer account numbers. Twelve of the attempted transfers, totaling $1,814.16, were made for the benefit of MANZO himself, and 42, totaling $43,511.45, were made for the benefit of his girlfriend.
On February 15, 2012, a Secret Service agent interviewed MANZO. MANZO confirmed that he had several accounts through Glacier Bank, but stated that the accounts were closed and no longer available for his use. When presented with copies of the checks written on his closed Glacier account, MANZO confirmed his signature and admitted he had negotiated the checks despite knowing the account was closed. MANZO said he wrote the checks to pay creditors in order to maintain his credit score, and explained that as long as creditors had the appearance of being paid, his credit score would stay in the low 700s. MANZO also explained that his girlfriend was battling cancer and that he is on disability for a back injury that he sustained while employed as a plumber. MANZO said he has no other source of income.
MANZO faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the United States Secret Service.
Greenville Shooter SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced MARKIS R. ALLEN, 21, of Greenville, North Carolinato 120 months imprisonment followed by three years supervised release.
On January 16, 2013, a Federal Grand Jury returned an Indictment charging ALLEN with unlawful possession of a firearm by a convicted felon. On March 19, 2013, ALLEN pled guilty to the charge.
According to the investigation, on October 14, 2011, Greenville police officers responded to a shooting. When officers arrived at the location, they found the victim with a gunshot wound. After a description was obtained and distributed, officers found ALLEN behind a residence. Officers found a loaded shotgun concealed down the rear of ALLEN’s pants.The criminal investigation of this case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. Assistant United States Attorney Jane J. Jackson handled the prosecution on behalf of the Eastern District of North Carolina.
Fort Polk Man Pleads Guilty to Sexually Abusing A 13-year Old GirlRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that Eric Britton, 19, of Fort Polk, La., pleaded guilty before U.S. District Judge Patricia Minaldi to sexually abusing a minor.
According to the evidence presented at the guilty plea, Britton admitted that on July 20, 2012, he engaged in sexual intercourse with a 13-year-old female at an unoccupied residence on the Fort Polk military base.
As a result of his guilty plea, Britton faces up to 15 years in prison, a $250,000 fine, and a lifetime of supervised release for sexual abuse of a minor. He will also be required to register as a sex offender. Sentencing has been set for January 9, 2014.
The U.S. Army Criminal Investigation Command and the FBI conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Former Vice President of Alberici Constructors Pleads Guilty to FraudRead the Press Release
St. Louis, MO – Clone Jefferson Oliver pled guilty to participating in a scheme to defraud Alberici Constructors, Inc. by inflating invoices.
CLONE JEFFERSON OLIVER, Apollo Beach FL, former vice-president of construction at St. Louis-based Alberici, pled guilty to six counts of mail fraud, wire fraud and money laundering. United States District Judge Catherine D. Perry has set his sentencing has been set for December 19, 2013.According to court documents, Oliver was the project manager for Alberici on a project to build a water treatment plant in Arlington County, Virginia. Work on the project began in September 2006 and the cost of the project was $238,000,000. Oliver and Kenneth Marc Simmons, a subcontractor on the project, participated in a scheme to defraud Alberici through the preparation and submission of inflated invoices and false change orders for materials provided to the project by Simmons' business, Industrial and Municipal Supply (IMS). When IMS received payment on the bad invoices, Simmons kept a share and then forwarded money in the nature of kickbacks to Oliver. Simmons made many of the payments to a corporation formed by Oliver called Advanced Construction Solutions which had the same initials (ACS) as another supplier to the Arlington project, American Construction Services. The court document refers to Oliver's company as the "fake ACS" while the latter company is referred to as the “real ACS.” Oliver admitted that, in the scheme to overpay IMS, Alberici was overbilled in the amount of $4.8 million from 2006 through 2011.
The real ACS provided welding services to the project. At Oliver's direction the owner of the real ACS billed Alberici for piping actually supplied by IMS in a situation where the real ACS provided only welding services on that piping. IMS invoiced the real ACS for that piping, through inflated invoices of approximately $2,000,000. The real ACS included those billings in the invoices it submitted to Alberici for payment.“IRS Criminal Investigation’s role becomes even more important in kickback schemes due to the complex financial transactions involving fictitious entities and false documents,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. “Those individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
Each count of mail and wire fraud carries a maximum prison term of 20 years in prison and/or fines to $250,000. Oliver is charged in two additional counts of money laundering with each count carrying a maximum prison term of 10 years and/or a fine up to $250,000. If convicted, each defendant would be subject to an order of restitution in favor of Alberici.Oliver will be liable to pay Alberici the full $6.8 million in restitution. He agreed that property and assets he acquired with the stolen money would be forfeited as part of that restitution. This includes two houses in Florida (one in Apollo Beach and one in Zephyrhills), a diamond ring with platinum mounting, a 2010 Mercedes Benz vehicle, a 2007 Sea Ray boat, two SeaDoo Bombardier water craft and several bank accounts.
Co-defendant KENNETH MARC SIMMONS, La Grange GA, pled guilty earlier this month to two felony counts of mail fraud and two felony counts of wire fraud before Judge Perry. His sentencing is scheduled for December 18, 2013.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. Assistant United States Attorneys James E. Crowe, Jr., Anthony Franks and Richard Finneran are handling the case for the U.S. Attorney’s Office.
Former South Dakota Guardsman Sentenced for Embezzling Government PropertyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Black Hawk, South Dakota, man convicted of Theft of Government Property was sentenced on September 25, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Dennis Mallow, age 47, was sentenced to 27 months in custody, 3 years of supervised release, restitution in the amount of $25,473.93, and a $100 special assessment to the Federal Crime Victims Fund. Mallow pre-paid the restitution amount on September 17, 2013.
Mallow was indicted by a federal grand jury in November of 2012 for Theft of Government Property and Theft from Agency Receiving Federal Funds. He pled guilty to the Theft of Government Property charge in May of 2013.
The conviction stems from incidents that took place between October 1, 2009, and September 7, 2012, when Mallow served as a chief warrant officer and supervisory employee of the South Dakota Army National Guard at Camp Rapid in Rapid City, South Dakota. During that time, Mallow used his position as the warehouse supervisor at Camp Rapid to order numerous items, including toolboxes, tools, equipment, gear, and other property of the United States for his personal, unauthorized use. In total, Mallow stole and knowingly converted over $55,000 worth of government property, some of which was recovered.
The investigation was conducted by the Federal Bureau of Investigation and the South Dakota Army National Guard. The case was prosecuted by Assistant U.S. Attorney Wayne Venhuizen.
Mallow was ordered to self-surrender to the U.S. Marshals Service at 2:00 pm on September 26, 2013.Former Opelousas Housing Authority Employee Pleads Guilty to Wire Fraud Conspiracy ChargeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Garnette L. Thomas, 75, of San Augustine, Texas, pleaded guilty before U.S. Magistrate Judge Patrick Hanna to conspiracy to commit wire fraud.According to evidence presented at the guilty plea, Thomas was employed as the Opelousas Housing Authority grant and capital funds coordinator from 2005 to 2009. From 2007 to 2009, Thomas admitted that she conspired with other unnamed conspirators to send and receive fake bids by email in order to circumvent state and federal bid laws. They used the fake bids to make it appear that several companies were placing bids on construction projects, but in fact, there was one company being considered. Thomas, assisted by others, accomplished this by using letterhead and other information to create fake bid documents from other companies who were not placing bids on the contracts. These fake bids were then filed so records showed that more than one company had bid on the projects.
Thomas faces up to five years in prison, three years of supervised release, a $250,000 fine and restitution for conspiracy to commit wire fraud. A sentencing date of January 10, 2014 was set.
The FBI and the U.S. Department of Housing and Urban Development conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.
Former Monroe City Council Members Sentenced for Taking BribesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today thatformer Monroe City Council members Arthur Gilmore Jr., 55, and Robert E. “Red” Stevens, 61, both of Monroe, were sentenced by U.S. District Judge Donald E. Walter. Gilmore received 24 months in prison and 3 years supervised release, and Stevens received 20 months in prison and three years supervised release for accepting cash bribe payments from an FBI cooperating witness in exchange for help with matters pending before the City Council.
After a four-day trial, a federal jury found Gilmore guilty on May 16, 2013 of violating the Racketeer Influenced and Corrupt Organizations Act, more commonly known as RICO. Stevens pleaded guilty on May 2, 2013 to violating the RICO Act. According to evidence in court filings, in 2008 and 2009 the defendants accepted cash bribe payments from a Monroe businessman who was working as a cooperating witness under the direction of the FBI. The payments were in exchange for their assistance with matters pending before the City Council.
“This has been a long process but in the end, after two trials, the jury and the judge heard the evidence and justice prevailed,” Finley stated. “These defendants abused their positions as public officials, and by selling their votes, violated the law and betrayed the community they were elected to represent.”
The FBI-Monroe Resident Agency and the Louisiana State Police investigated the case. First Assistant U.S. Attorney Alexander Van Hook and Counsel to the U.S. Attorney William J. Flanagan prosecuted the case.Former Logan County Bank President Sentenced to Prison for Bank EmbezzlementRead the Press Release
Ordered To Pay $562,293 Restitution to Bank
Springfield, Ill. – U.S. District Judge Richard Mills today ordered the former president of a Logan County bank, Bryson John Russell, 66, of Lincoln, Ill., to serve 30 months (2 ½ years) in federal prison for embezzling more than $500,000 from the Hartsburg State Bank. Russell was ordered to pay restitution to the bank in the amount of $562,293, and was ordered to self-report on a date to be determined by the federal Bureau of Prisons to begin serving his prison sentence. Russell was also ordered to remain on supervised for three years following his release from prison.
On Feb. 27, 2013, Russell waived indictment and entered a plea of guilty to a single count of embezzlement as charged in an information filed by the U.S. Attorney’s Office for the Central District of Illinois. Russell admitted that in 1992, he began taking cash from the bank to pay for personal items and obligations. Russell became bank president in 1989 and was a career employee, having begun work in 1966 at Hartsburg State Bank, Hartsburg, Ill.
At some point, to conceal his activity, Russell began creating bank loans in the names of various bank customers, including relatives. When the various loans were due, Russell created different, larger loans in relatives’ names and other bank customers’ names to pay off the loans, as well as to embezzle additional money. In addition, Russell admitted cashing a customer’s $15,000 certificate of deposit and applying the proceeds to a loan he had created in the customer’s name.
The charges were investigated by the Federal Bureau of Investigation in coordination with the Hartsburg State Bank. Assistant U.S. Attorney Patrick D. Hansen prosecuted the case.
Former Fund Manager Sentenced in Manhattan Federal Court to 30 Months in Prison in Connection with Multimillion-Dollar Commodities Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that THOMAS HAMPTON, formerly the Managing Director of Hampton Capital Markets, LLC (“Hampton Capital” or the “Fund”), was sentenced today in Manhattan federal court to 30 months in prison in connection with an investment scheme in which HAMPTON concealed millions of dollars in losses he incurred trading various securities, including S&P 500 futures contracts tied to the S&P 500 stock index. HAMPTON pled guilty in April 2013 to one count of commodities fraud before U.S. Magistrate Judge James C. Francis. He was sentenced today by U.S. District Judge Robert W. Sweet.
Manhattan U.S. Attorney Preet Bharara said: “Lying to investors is never acceptable and, as Thomas Hampton now knows after being convicted and sentenced for doing so, it is a federal crime that carries stiff penalties.”
According to the charging instruments in this case and statements made in open court and at the plea proceeding:
From September 2010 through September 2011, HAMPTON was the Managing Director of Hampton Capital, an Arizona limited liability company that had more than $4 million in assets under management. Hampton Capital engaged in the business of buying and selling exchange traded funds (“ETFs”). An ETF is an investment fund that holds assets such as stocks, commodities or bonds, and typically tracks – or attempts to replicate the performance of – an underlying benchmark or index, such as the S&P 500 equities market index. Hampton Capital purported to utilize specially designed computer software to trade ETFs based on pricing inefficiencies. In his role as Managing Director, HAMPTON bought and sold various securities, including S&P 500 E-mini futures contracts, on behalf of the Fund.
When the Fund began to suffer substantial losses as a result of HAMPTON’s trading, he concealed those losses from investors by, among other things, falsely representing that the investments continued to earn profits. For example, HAMPTON provided monthly statements to investors as early as April 2011 that falsely reflected a positive return for the Fund instead of disclosing the actual losses suffered. Based on his misrepresentations and omissions, Hampton Capital investors did not seek to redeem or withdraw their investments. In fact, some investors provided additional investment capital. As a result of the scheme, more than 50 investors lost in total almost $5 million.
In addition to his prison term, HAMPTON, 45, of St. Louis, Missouri, was sentenced to three years of supervised release. He was also ordered to pay restitution in the amount of $4,879,627.98, and to forfeit this amount.
Mr. Bharara praised the investigative work of the FBI. He also thanked the U.S. Commodity Futures Trading Commission for their assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jillian B. Berman and Emil J. Bove, III, are in charge of the prosecution.
Former Federal Employee Indicted for $113,000 Scheme to Steal from Co-workersRead the Press Release
Septembe 26, 2013KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former IT specialist for the U.S. Department of Agriculture has been indicted by a federal grand jury for a scheme to steal $113,000 from three co-workers, one of whom is blind.
Paula M. Steen, 49, of Overland Park, Kan., was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, Sept. 25, 2013. Steen was employed by the USDA Farm Service Agency at the USDA Beacon Federal Office Facility, 6501 Beacon Drive, Kansas City, Mo.
The federal indictment alleges that Steen engaged in a scheme to steal from her co-workers at USDA over a four-year period, from Dec. 30, 2008, until she resigned under pressure on Dec. 29, 2012. According to the indictment, the scheme resulted in an attempted loss of at least $113,282 and an actual loss of $103,682.
The indictment alleges that Steen charged $57,693 on the credit accounts of one co-worker (identified in the indictment as “S.S.”), who is legally blind. Steen later repaid $18,278 of that amount to creditors. Steen also attempted to borrow $2,600 in the co-worker’s name, the indictment says, but after submitting the personal loan application to a financial institution, she later withdrew it. According to the indictment, Steen also secured four personal loans from this co-worker totaling $48,171, which she did not repay.
The indictment also alleges that Steen illegally transferred $16,096 from another co-worker’s credit union account to her own creditors and to her own bank account. (This co-worker is identified in the indictment as “R.H.”) Steen also attempted to illegally transfer another $2,000, according to the indictment.
The indictment also alleges that Steen attempted to open a joint credit card account in the name of a third co-worker (identified in the indictment as “J.S.”), using his Social Security number and date of birth without his authorization.
The federal indictment charges Steen with two counts of wire fraud and one count of aggravated identity theft.
The indictment also contains a forfeiture allegation, which would require Steen to forfeit $103,682, which represents the actual loss to the victims of her scheme.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the U.S. Department of Agriculture, Officer of Inspector General.
Former Exel Transportation Services Employees Sentenced in Federal Corporate Hacking CaseRead the Press Release
DALLAS — Joseph Roy Brown, 39, of Collierville, Tennessee, and John Michael Kelly, 43, of Plano, Texas, were sentenced yesterday afternoon, by U.S. District Judge Jorge A. Solis, to twelve months and one day in prison, and a 12-month term of probation, respectively, following their guilty pleas earlier this year to their roles in a corporate hacking conspiracy. Brown was ordered to surrender to the Bureau of Prisons on December 4, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The lead defendant in the case, Michael Musacchio, 62, of Plano, Texas, was sentenced earlier this month by Judge Solis to serve a total of 63 months in federal prison, following his conviction at trial in March 2013 for conspiring to hack into his former employer’s computer network. The issue of restitution is still under consideration by the court. Musacchio was convicted on one felony count of conspiracy to make unauthorized access to a protected computer (hacking) and two substantive felony counts of hacking.
According to the evidence submitted at trial and plea papers filed in the case, from 2000 to September 2004, Musacchio was the president of Exel Transportation Services, a third party logistics or intermodal transportation company that facilitated links between shippers and common carriers in the manufacturing, retail and consumer industries.
In 2004, Musacchio left Exel to form a competing company, Total Transportation Services, where he was the original president and CEO. Two other former Exel employees from the Exel Information Technology (IT) Department, Brown and Kelly, also went to work at Musacchio’s new company. Between 2004 and 2006, Musacchio and Brown, assisted by Kelly, engaged in a scheme to hack into Exel’s computer system to conduct corporate espionage. Through their repeated unauthorized accesses into Exel’s email accounts, co-conspirators Musacchio and Brown were able to obtain Exel’s confidential and proprietary business information and use it to benefit their new employer and themselves as investors.
This was the first investigation of hacking for the purpose of corporate espionage that was conducted by the Justice Department’s Computer Crime and Intellectual Property (CCIP) Section, the U.S. Attorney’s Office for the Northern District of Texas and the FBI.
The FBI Dallas Field Office was in charge of the investigation. Deputy Criminal Chief Assistant U.S. Attorney Linda Groves and Assistant U.S. Attorney Candina Heath, of the U.S. Attorney’s Office for the Northern District of Texas, and Trial Attorney Rick Green of the Criminal Division’s CCIP Section, prosecuted.
Five Santa Fe Residents Arrested on Federal Oxycodone Trafficking ChargesRead the Press Release
ALBUQUERQUE – Five residents of Santa Fe, N.M., were arrested earlier today based on a 16-count federal indictment charging them with Oxycodone trafficking offenses. Two other Santa Fe residents were arrested on federal marijuana trafficking charges and another individual was arrested on state narcotics trafficking charges.
The arrests were announced by Acting U.S. Attorney Steven C. Yarbrough, First Judicial District Attorney Angela R. Pacheco, Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Field Division, Chief Raymond J. Rael of the Santa Fe Police Department, and New Mexico State Police Lieutenant W. Troy Weisler, Commander of the HIDTA Region III Drug Enforcement Task Force.
Today’s arrests were part of a multi-agency law enforcement operation that included the execution of federal search warrants at three residences and a business in Santa Fe. The charges against the defendants are the result of “Operation High Desert Bash,” an investigation initiated in Jan. 2013 by the DEA’s Tactical Diversion Squad in Albuquerque, the Santa Fe Police Department and HIDTA Region III Narcotics Task Force in response to the epidemic increase in prescription drug abuse, addiction and overdose deaths in New Mexico, particularly among teens and young adults. Operation High Desert Bash primarily targeted a drug trafficking organization unlawfully distributing quantities of Oxycodone in Santa Fe County. Oxycodone is an opioid narcotic pain reliever similar to morphine that is medically prescribed to treat moderate to severe pain and can be habit-forming.
Ashraf Nassar, 30, Phillip Anaya, 37, Krystal Holmes, 27, Sarah N. Romero, 34, and Daniel Trujillo, 31, are charged in Count 1 of a 16-count indictment with conspiracy to distribute Oxycodone in Santa Fe County between Dec. 2012 and Sept. 2013. Counts 2 through 4 of the indictment charge Nassar, Anaya and Holmes with substantive Oxycodone distribution offenses, and all five defendants are charged with using telephones to facilitate drug trafficking crimes (commonly referred to as “phone counts”) in Counts 5 through 16. If convicted, the defendants each face a maximum penalty of 20 years in prison and a $1,000,000 fine on each of the Oxycodone charges and a maximum penalty of four years in prison and a $250,000 fine on each of the phone counts. All five are scheduled to make their initial appearances in Albuquerque federal court tomorrow morning.
Clarence Cline, 64, and Stephanie DeStefano, 52, are charged in a federal criminal complaint with conspiracy to cultivate marijuana. According to the complaint, Cline and DeStefano were arrested after officers found approximately 277 marijuana plants and 6.6 kilograms of marijuana that was being prepared for distribution in Cline’s residence and approximately 38 marijuana plants and 3.7 kilograms of marijuana that was being prepared for distribution in DeStefano’s residence. If convicted of the offense charged in the complaint, Cline and DeStefano each face a prison sentence of not less than five years and not more than 40 years, a maximum penalty of 40 years in prison and a $5,000,000 fine. Cline and DeStefano also are scheduled to make their initial appearances in Albuquerque federal court tomorrow morning.
Cynthia Sandoval, 53, was arrested on a state arrest warrant for three counts of felony trafficking in Oxycodone in violation of NMSA § 30-31-20(A)(2)(a). If convicted of the state charges against her, Sandoval faces a maximum penalty of nine years in prison and a $10,000 fine.Officers seized approximately 7300 mg of Oxycodone during the investigation. During today’s law enforcement operation, they seized more than $1,000 in cash and two vehicles in addition to the marijuana plants and marijuana seized from the residences of Cline and DeStefano.
“Prescription drug abuse is our nation's fastest-growing segment of illegal drug abuse and it is devastating communities in New Mexico,” said Acting U.S. Attorney Steven C. Yarbrough. “The prescription drug abuse problem is one that law enforcement alone cannot solve, but instead will require a comprehensive effort from public health, medical providers and other community stakeholders. Although we are committed to being part of such an effort, we will continue to investigate and vigorously prosecute those who contribute to prescription drug abuse.”
“The abuse of prescription drugs, such as Oxycodone, is a serious problem in Santa Fe County and it leads all too often to addiction, shattered lives, and even death,” said First Judicial District Attorney Angela R. Pacheco. “It is in the interest of public safety, especially that of our young people, that the law enforcement community work together to target those who illegally distribute these pharmaceuticals in order to prevent future abuse and prescription drug overdoses throughout New Mexico.”
“Prescription drug abuse is a serious problem that destroys individuals’ lives and negatively affects the overall health and safety of our community,” said DEA Special Agent in Charge Joseph M. Arabit. “To address this problem and its often tragic consequences, DEA will continue to target those who illegally obtain and distribute these potentially dangerous substances.”
“I want to commend the dedicated members of my department, the HIDTA Region III Drug Enforcement Task Force and our fellow federal law enforcement partners for their efforts to rid the area of illegal narcotics and the perpetrators who dispense them,” Santa Fe Police Chief Raymond J. Rael said. “The nearly a year-long operation, spurred by the zealous work of my officers, ensures criminals get the message loud and clear, illegal activity of any kind will not be tolerated in Santa Fe.”
“The diversion and abuse of prescription drugs is a major problem in the Santa Fe area, which poses a major threat to both public health and public safety in the area,” added Lt. W. Troy Weisler, Commander of the HITDA Region III Drug Enforcement Task Force. “The individuals involved in the illegal distribution of prescription drugs are often involved in other criminal activities as well. Today’s operation will have a significant impact on narcotics trafficking in the area as well as the property and violent crime associated with it.”
These cases were investigated by the Tactical Diversion Team of the DEA’s Albuquerque office, the Santa Fe Police Department and the HIDTA Region III Drug Enforcement Task Force. The federal cases are being prosecuted by Assistant U.S. Attorneys Shammara H. Henderson and Joel R. Meyers. The state case will be prosecuted by the First Judicial District Attorney’s Office.
Operation High Desert Bash was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The HIDTA Region III Drug Enforcement Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and Santa Fe County Sheriff’s Office. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Five Miami Residents Arrested for Alleged Roles in $48 Million Home Health Care Fraud SchemeRead the Press Release
Five Miami residents have been charged for their alleged roles 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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the case was unsealed following the defendants’ arrests yesterday.
On Sept. 24, 2013, a federal grand jury in Miami returned an 11-count indictment charging Marianela Martinez, 45; Mireya Amechazurra, 49; Lissett Jo-Moure, 55; Omar Hernandez, 48; and Celia Santovenia, 49, each with one count of conspiracy to receive health care kickbacks and two counts of receiving kickbacks in connection with a Federal health care program. Each charge carries a maximum penalty of five years in prison upon conviction.
According to the indictment, the defendants participated in a scheme involving Caring Nurse Home Health Care Corp. (Caring Nurse) and Good Quality Home Health Inc. (Good Quality), Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. The defendants allegedly referred Medicare beneficiaries to Caring Nurse and/or Good Quality in exchange for kickbacks, knowing that Caring Nurse and/or Good Quality would in turn bill Medicare for home health services purportedly rendered for the recruited Medicare beneficiaries.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality, were sentenced to 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 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 1,500 defendants who collectively have falsely billed the Medicare program for more than $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.
Financing Consultant Sentenced to for Securities Fraud SchemeRead the Press Release
BOSTON - A self-described financing consultant to small and emerging companies was sentenced yesterday for his role in a kickback scheme.
James L. Prange, 63, of Greenbush, Wis., was sentenced by United States District Court Judge Nathaniel M. Gorton to 30 months in prison, two years of supervised release, a $15,250 fine and forfeiture.. In May 2013, Prange was convicted by a jury of conspiracy to commit securities fraud, wire fraud and mail fraud.
Prange was sentenced for his role in a scheme to pay secret kickbacks to an investment fund representative who had agreed to use the fund’s money to buy stock in three companies that had hired Prange’s firm, Northern Equity, to help them raise capital. The kickbacks were concealed through the use of sham consulting agreements and other fraudulent documents. Prange and the company executives were unaware that the purported investment fund representative was actually an undercover agent with the Federal Bureau of Investigation.
The conviction and sentence followed a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities Exchange Commission.
Executives of three publicly traded companies who were also charged as part of the undercover operation were sentenced in the last two months. In August, Karen L. Person, 62, of Las Vegas, Nev., the chief executive officer of SBCO, Inc., and John C. Jordan, 62, of Cameron Park, Calif., the chief executive officer of Vida Life International Ltd., were each sentenced to 30 months in prison for their roles in the scheme. Person pleaded guilty to conspiracy to commit securities fraud and Jordan was convicted after trial on multiple counts of conspiracy to commit securities fraud and wire fraud. In July, Steven Berman, 50, of Ohio, the former chief executive officer of China Wi-Max Communications, Inc., and Richard Kranitz, 69, a Wisconsin securities attorney who served as an adviser and a member of the board of directors of China Wi-Max, were each sentenced to 18 months after pleading guilty to conspiracy to commit securities fraud.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in bringing these, and charges against 10 other defendants who participated in the kickback scheme. Eight of those defendants have already pleaded guilty to charges arising out of their involvement in the scheme.United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Sarah E. Walters, Stephen E. Frank, and Vassili Thomadakis of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Federal Jury Convicts Fort Worth Man Who Robbed Credit Union in BurlesonRead the Press Release
FORT WORTH, Texas — After a one-day trial and less than 30 minutes of deliberation, a federal jury has convicted Bentley Mark Jenkins, 46, of Fort Worth, Texas, on one count of bank robbery. Jenkins faces a maximum statutory sentence of 20 years in federal prison and a $250,000 fine. He will remain in custody pending sentencing, which is set for January 10, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to evidence presented at trial and documents filed in the case, on February 9, 2013, Jenkins, wearing a towel over his head, presented a note to a teller at the Educational Employees Credit Union, located at 750 NE Alsbury Boulevard in Burleson, Texas. That note stated, “give me all hundreds and fifty and no body gets hurt.” A teller gave Jenkins all the hundreds and fifties he had in the cash drawer, but Jenkins became agitated and shouted, “more, more, more.” Feeling threatened, the teller gave Jenkins the twenties that he had in his cash drawer. Jenkins then grabbed all of the cash from the teller drawer and fled the credit union.
Burleson Police arrested Jenkins, following a car and foot chase. Jenkins was searched and a large amount of cash was found on his person and in a vehicle he was operating.
Paragraph Seven.
The case was investigated by the FBI and the Burleson Police Department. Assistant U.S. Attorney John Bradford prosecuted.
Federal Inmate Sentenced to Life in Federal Prison for the Murder of A Fellow InmateRead the Press Release
Ocala, Florida - U.S. District Judge Anne C. Conway today sentenced Boyd Wallace Higginbotham, Jr. (55) to life in federal prison for murdering fellow inmate Steven Pritchard. A federal jury found Higginbotham guilty of first degree murder following a trial that concluded on August 22, 2013.
Both Higginbotham and Pritchard were inmates at United States Penitentiary II at the Coleman Federal Correctional Complex, in Sumter County, Florida. Higginbotham was serving a sentence on a felon in possession of a firearm conviction. Pritchard was serving a sentence on a bank robbery conviction.
According to evidence presented at trial, Higginbotham and Pritchard had been having an escalating dispute over several days. On February 20, 2008, Higginbotham and Pritchard were both at the same table in the penitentiary mess hall during lunch when Pritchard made threatening comments to Higginbotham in front of other inmates. Higginbotham got up, walked away from the table, and took his tray to the tray return area. Higginbotham then walked up behind Pritchard, grabbed him around the neck, and repeatedly stabbed him with a homemade knife. He stabbed him in the chest, abdomen, back, and forearm. Pritchard was air lifted to the trauma unit at the Orlando Regional Medical Center. On March 6, 2008, Pritchard died as a result of complications from the stab wounds.
This case was investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. It was prosecuted by Assistant United States Attorney Sam Armstrong.
Federal Court Bars Kansas City, Mo., Man from Preparing Tax Returns for OthersRead the Press Release
The Justice Department announced today that a federal district judge in Kansas City, Mo., permanently barred Mark Steven Hall from preparing federal income tax returns for others. According to the court’s civil injunction order filed in the U.S. District Court for the Western District of Missouri, from 2006 to 2010 Hall worked as an employee or independent contractor for various accounting firms. Beginning in the 2010 tax season Hall prepared federal tax returns from his home in Kansas City.
The court found that Hall understated his customers’ tax liabilities by claiming false expenses and deductions. The court found that in some cases, Hall used a formula to claim charitable deductions without any regard to whether his customers had the necessary supporting documentation. In other instances, the court found that even where Hall’s customers provided him with documentation of charitable donations, Hall inflated those customers’ reported charitable contributions.
Similarly, the court found that although one customer provided Hall with all bank statements, invoices, ledgers, check stubs and receipts for his small business, Hall did not use those documents in preparing the return.
The court reasoned that a permanent bar on all future tax preparation was warranted because without a permanent ban, Hall “would likely find other ways to manipulate the tax system for his customers.” The court found that there was a high probability that Hall’s customers received erroneous refunds due to his conduct.
Return preparer fraud is one of the Internal Revenue Service's 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 . In the past decade, the Justice 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. Mark Steven Hall
OrderEric and Ryan Jensen Charged with Introducing Tainted Cantaloupe into Interstate CommerceRead the Press Release
DENVER – Eric Jensen, age 37, and Ryan Jensen, age 33, brothers who owned and operated Jensen Farms, located in Granada, Colorado, presented themselves to U.S. Marshals in Denver today, where taken into custody on federal charges brought by the U.S. Attorney’s Office with the Food and Drug Administration – Office of Criminal Investigation, United States Attorney John Walsh and Food and Drug Administration (FDA) Office of Criminal Investigations Special Agent in Charge Patrick Holland announced. The Information charges the brothers with introducing adulterated food into interstate commerce. The defendants are scheduled to make their initial appearance this afternoon at 2:00 p.m. before U.S. Magistrate Judge Michael E. Hegarty. At that hearing they will be advised of their rights as well as the charges pending against them.
According to the six-count Information filed under restriction on September 24, 2013, as well as other court records, Eric and Ryan Jensen allegedly introduced adulterated cantaloupe into interstate commerce. Specifically, the cantaloupe bore a poisonous bacteria, Listeria monocytogenes. The Information further states that the cantaloupe was prepared, packed and held under conditions which rendered it injurious to health.
Court documents state that the defendants set up and maintained a processing center where cantaloupes were taken from the field and transferred to a conveyor system for cleaning, cooling and packaging. The equipment should have worked in such a way that the cantaloupe would be washed with sufficient anti-bacterial solutions so that the fruit was cleaned of bacteria in the process.
In May of 2011 the Jensen brothers allegedly changed their cantaloupe cleaning system. The new system, built to clean potatoes, was installed, and was to include a catch pan to which a chlorine spray could be included to clean the fruit of bacteria. The chlorine spray, however, was never used. The defendants were aware that their cantaloupes could be contaminated with harmful bacteria if not sufficiently washed. The chlorine spray, if used, would have reduced the risk of microbial contamination of the fruit.
Investigation by the FDA and the Center for Disease Control (CDC) determined that the defendants failed to adequately clean their cantaloupe. Their actions allegedly resulted in at least six shipments of cantaloupe contaminated with Listeria monocytogenes being sent to 28 different states. The CDC tracked the outbreak-associated illness and determined that people living in 28 states consumed contaminated cantaloupe, resulting in 33 deaths and 147 hospitalizations. Further, one woman pregnant at the time of her outbreak-related illness had a miscarriage. Ten additional deaths not attributed to Listeriosis occurred among persons who had been infected by eating outbreak-related cantaloupe.
“As this case so tragically reminds us, food processors play a critical role in ensuring that our food is safe,” said U.S. Attorney John Walsh. “They bear a special responsibility to ensure that the food they produce and sell is not dangerous to the public. Where they fail to live up to that responsibility, and as these charges demonstrate, this office and the Food and Drug Administration have a responsibility to act forcefully to enforce the law.”
“U.S. consumers should demand the highest standards of food safety and integrity,” said Special Agent in Charge Patrick J. Holland of the FDA-Office of Criminal Investigations, Kansas City Field Office. “The filing of criminal charges in this deadly outbreak sends the message that absolute care must be taken to ensure that deadly pathogens do not enter our food supply chain.”
Both defendants have been charged with six counts of adulteration of a food and aiding and abetting. If convicted, each faces not more than one year in federal prison, and a fine of up to $250,000 per charge.
This case was investigated by the FDA Office of Criminal Investigations, the Center for Disease Control and the State of Colorado Department of Public Health and Environment.
The defendants are being prosecuted by Assistant U.S. Attorney Jaime Pena.
These charges are only allegations and the defendants are presumed innocent unless and until proven guilty.
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Eleven Individuals Arrested in A Scheme to Fraudulently Obtain Commercial Driver’s Licenses from the New York State Department of Motor VehiclesRead the Press Release
A complaint was unsealed yesterday in federal court in Brooklyn, New York, charging eleven individuals with conspiracy to commit mail fraud as part of an extensive scheme to enable applicants for New York State commercial driver’s licenses to cheat on required tests. The defendants were arraigned before United States Magistrate Judge Ramon E. Reyes, Jr. at the United States Courthouse in Brooklyn, New York on September 25, 2013 and five defendants were detained.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Douglas Shoemaker, Regional Special Agent-in-Charge, U.S. Department of Transportation-Office of Inspector General (DOT-OIG), and Catherine Leahy Scott, New York State Inspector General (NYS-OIG).
As set forth in the complaint, drivers of certain commercial vehicles, such as large buses and heavy transportation trucks, must possess a New York State commercial driver’s license (CDL), which is issued by the DMV pursuant to the regulations set forth by the United States Department of Transportation. Before obtaining a CDL, all applicants must pass tests covering various subjects related to safely driving large vehicles. The DMV offers CDL exams in a written format containing multiple choice questions, or an audio format comprised of true or false questions. Both versions require applicants to fill out a paper answer sheet.
One cheating method that the defendants allegedly used was to provide applicants with a coded pencil that contained a series of dots and dashes inscribed on the sides of the pencil. These symbols reflected the correct true or false answers to the audio version of the CDL exam. Another cheating method that the defendants allegedly orchestrated enabled applicants to cheat on written CDL tests at various DMV offices in Queens, Long Island and Manhattan. Defendants employed as DMV security guards surreptitiously signaled applicants to leave the DMV offices with their uncompleted tests in hand. Other defendants then met the applicants outside the DMV offices and arranged for another defendant to complete the exams. Applicants then re-entered the DMV with the completed exams and submitted them for grading. The security guards received cash bribes for their role in the scheme.
As alleged in the complaint, the defendants charged each applicant approximately $1,500 to $2,500 for assistance in cheating on the CDL exam. Between April 2013 and September 2013, the defendants enabled over 60 people to fraudulently obtain or attempt to obtain CDLs.
“Today’s arrests demonstrate the Office’s commitment to aggressively prosecute and investigate those who compromise the public safety on our roads,” stated Ms. Lynch. “As alleged in the complaint, with their wide-spread cheating scheme the defendants enabled unqualified drivers to take to our roads and highways behind the wheel of large buses and heavy trucks. In doing so, they jeopardized the safety of other drivers, their passengers and even pedestrians. Together with our law enforcement partners, we will seek to punish those individuals who endanger the public by committing such crimes.” Ms. Lynch expressed her grateful appreciation to the New York State Attorney General’s Office; the New York City Police Department, Internal Affairs Bureau; New York County District Attorney’s Office; and the New York State Department of Motor Vehicles for their cooperation and assistance in the investigation.
“The alleged fraudulent scheme of issuing commercial driver’s licenses’ to unworthy drivers puts all of us at risk,” said HSI New York Special Agent-in-Charge Hayes. “These arrests today make our roads safer but also show the great lengths that people will go to circumvent the process of obtaining a commercial driver’s license by breaking the law.”
“This investigation demonstrates our commitment to ensuring that U.S. DOT’s CDL regulations fulfill their purpose of advancing safety on the roads by requiring that only qualified individuals obtain CDLs,” stated U.S. DOT-OIG Regional Special Agent-in-Charge Shoemaker. “Working with our law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to prevent, detect and prosecute to the fullest extent of the law fraud schemes which adversely affect the public trust throughout New York and elsewhere.”
New York State Inspector General Scott said: “Truck drivers – many of whom are charged with transporting hazardous chemicals – are trained to drive several tons of cargo often through busy streets and highways. Bus drivers take our children to school every day. These are among the serious responsibilities of anyone who acquires a commercial driver’s license. Our investigation uncovered numerous people who paid others thousands of dollars for answers to a test they could not answer without cheating, a scheme which undermined the system designed to ensure the security of our roads and communities. I am very pleased to report today that my office along with our federal partners, the Department of Motor Vehicles and the District Attorney’s Office have shut down this operation, and we will take all steps to ensure that everyone who has gamed the system will be off the road.”
The charges contained in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a maximum sentence of twenty years’ imprisonment. Additionally, if convicted, the defendants may be fined up to $250,000.
The government’s case is being prosecuted by Assistant United States Attorneys Michael Warren and Soumya Dayananda.
The Defendants:
AKMAL NARZIKULOV
Age: 28
Residence: Brooklyn, New YorkFIRDAVS MAMADALIEV
Age: 22
Residence: Brooklyn, New York
DALE HARPER
Age: 48
Residence: Bronx, New YorkJOACHIM PIERRE LOUIS
Age: 32
Residence: Brooklyn, New YorkLATOYA BOURNE
Age: 32
Residence: Brooklyn, New YorkMARIE DANIEL
Age: 47
Residence: Queens Village, New YorkLUC DESMANGLES
Age: 27
Residence: Brooklyn, New YorkBEAYEAH KARMARA
Age: 25
Residence: Staten Island, New YorkJOSE PAYANO
Age: 44
Residence: Brooklyn, New YorkTANAEL DANIEL
Age: 36
Residence: Brooklyn, New YorkINOCENTE RENE GONZALEZ-MARTINEZ
Age: 57
Residence: Bronx, New YorkEl Departamento de Justicia Realiza Acuerdo Conciliatorio con Southport Bank en Resolución de Alegatos de Discriminación en el Otorgamiento de Préstamos HipotecariosRead the Press Release
WASHINGTON - El Departamento de Justicia anunció ayer que Southport Bank of Kenosha, Wis., pagará $687,000 a prestatarios de hipotecas mayoristas afroestadounidenses e hispanos como parte de un acuerdo conciliatorio en resolución de alegatos de que exhibió un patrón o una práctica de discriminación basado en raza y origen nacional.
El acuerdo conciliatorio, que está sujeto a aprobación del tribunal, fue presentado junto con la demanda del Departamento en el Tribunal Federal de Distrito del Distrito Este de Wisconsin. La demanda alega que Southport le cobró a cientos de prestatarios afroestadounidenses e hispanos cargos más altos que a prestatarios blancos en préstamos hipotecarios mayoristas, en violación de la Ley de Vivienda Justa [Fair Housing Act (FHA)] y la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)]. Southport cooperó plenamente con el Departamento en la investigación de sus prácticas de otorgamiento de préstamos y aceptó realizar este acuerdo sin litigio contencioso.
La demanda se originó por una remisión en el 2012 por parte de la Corporación Federal de Seguros de Depósito [Federal Deposit Insurance Corporation (FDIC)] a la División de Derechos Civiles del Departamento de Justicia. Southport es regulado por la FDIC.
Los fondos del acuerdo conciliatorio se utilizará para indemnizar a las víctimas afroestadounidenses e hispanas de la supuesta discriminación por parte de Southport. Bajo el acuerdo conciliatorio propuesto, los Estados Unidos identificarán una lista de víctimas. El acuerdo conciliatrio exige que los prestatarios elegibles para indemnización sean notificados por el banco y dispone el monitoreo del proceso de indemnización por el departamento.
Southport no se dedica actualmente al negocio de los préstamos hipotecarios mayoristas para vivienda, pero el acuerdo dispone que, si volviera a dedicarse al negocio, el banco deberá implementar políticas, prácticas y monitoreo diseñados para prevenir y detectar violaciones potenciales de las normas de otorgamiento justo de préstamos.
"La discriminación basada en raza y origen nacional al otorgar crédito, inclusive por parte de prestamistas mayoristas, debe eliminarse", señaló Jocelyn Samuels, Secretaria de Justicia Auxiliar Interina de la División de Derechos Civiles del Departamento de Justicia. "Felicitamos a Southport por su colaboración con el Departamento de Justicia para lograr una resolución adecuada del caso".
"El Departamento de Justicia de los Estados Unidos, a través de tanto la División de Derechos Civiles como mi oficina, continúa inquebrantable en su compromiso de identificar, investigar y combatir patrones y prácticas de parcialidad racial y basada en el origen nacional en el otorgamiento y la administración de préstamos hipotecarios", señaló James L. Santelle, Fiscal Federal para el Distrito Este de Wisconsin. Como refleja el acuerdo conciliatorio de hoy, nos impulsan no solo todos los mandatos importantes de la Ley de Vivienda Justa y la Ley de Igualdad de Oportunidades de Crédito, sino también nuestro interés muy relacionado en asegurar que todos los estadounidenses tengan las mismas oportunidades económicas y opciones financieras en este aspecto tan básico de la vida—la vivienda. Me uno a la Secretaria de Justicia Auxiliar Interina en reconocer el liderazgo del Southport Bank of Kenosha por su cooperación para que se lograra este acuerdo conciliatorio que indemniza a miembros de nuestras comunidades afroestadounidenses e hispanas por la discriminación que sufrieron".
La coacción asociada a las leyes de otorgamiento justo de préstamos por parte del Departamento de Justicia es llevada a cabo por la Unidad de Préstamos Justos de la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Desde que se estableció la Unidad de Préstamos Justos en febrero de 2010, ha entablado o resuelto 26 casos de préstamos bajo la FHA, la ECOA y la Ley de Alivio Civil para los Miembros de las Fuerzas Armadas [Servicemembers Civil Relief Act]. Los acuerdos conciliatorios en estos casos proveen un mínimo de $ 660 millones de dólares en asistencia monetaria para comunidades impactadas y más de 300,000 prestatarios individuales. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso sujetos a ECOA destacan los logros del Departamento en el otorgamiento de préstamos justos y están disponibles en www.justice.gov/crt/publications/.
La División de Derechos Civiles, la Fiscalía Federal para el Distrito Este de Wisonsin y la FDIC son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero. El Presidente Obama estableció la Fuerza de Tarea Interagencia de Coacción contra el Fraude Financiero para llevar a cabo una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros. La fuerza de tarea incluye a representantes de una amplia gama de dependencias federales, autoridades reguladoras, inspectores generales y miembros de las fuerzas del orden público estatales y locales, quienes, trabajando juntos, aprovechan un poderoso espectro de recursos de coacción penal y civil. La fuerza de tarea está trabajando para mejorar la labor en todo el poder ejecutivo federal, y con asociados estatales y locales, para investigar y enjuiciar los delitos financieros importantes, asegurar un castigo justo y eficaz para quienes cometan delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar fondos para las víctimas de delitos financieros. Para obtener más información sobre la fuerza de tarea, visite www.StopFraud.gov.
Para obtener una copia de la demanda, así como información adicional sobre la labor del Departamento de Justicia para hacer valer las leyes de otorgamiento justo de préstamos, visite el portal del Departamento de Justicia en http://www.justice.gov/fairhousing.
Douglas Robert Brooks Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 26, 2013, before U.S. District Judge Donald W. Molloy, DOUGLAS ROBERT BROOKS, a 51-year-old resident of Missoula, was sentenced to a term of:
Prison: 180 months
Special Assessment: $100
Supervised Release: lifetime
BROOKS was sentenced in connection with his guilty plea to accessing with the intent to view child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
In 2000, BROOKS was convicted of sexual assault.
On November 19, 2012, a state probation officer advised the Missoula Police Department that a confidential informant (CI) had information about BROOKS. The CI stated that BROOKS had shown him child pornography on BROOKS' computer in BROOKS' residence. A search warrant for his residence was obtained and a computer and thumb drive were seized, both of which were then forensically examined.
The examiner located files depicting pornographic images of children.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BROOKS will likely serve all of the time imposed by the court. In the federal system, BROOKS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Montana State Probation and Parole, the Missoula Police Department, the Bozeman Police Department, and the Internet Crimes Against Children (ICAC) Task Force.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
District Man Pleads Guilty to Second-Degree Murder in Death of Girlfriend’s Four-Year-Old Son-Defendant Beat Child While Babysitting-Read the Press Release
WASHINGTON – Peter I. Hendy, II, 33, of Washington, D.C., pled guilty today to a charge of second-degree murder in the death of his girlfriend’s four-year-old son, U.S. Attorney Ronald C. Machen Jr. announced.
Hendy pled guilty in the Superior Court of the District of Columbia. The Honorable Ronna L. Beck scheduled sentencing for Nov. 22, 2013.
According to a proffer of facts presented at today’s plea hearing, on Aug. 5, 2013, Hendy was babysitting his girlfriend’s son, Kamari Zavon Taylor, at an apartment in Northeast Washington while she went to work. Sometime around noon, he called his girlfriend and reported that he had disciplined the four-year-old boy. He told her that he had given Kamari a “body shot” and that the child’s legs were wobbly.
According to Hendy’s own admissions, he became upset when Kamari disobeyed his restriction about how far the boy could ride his scooter. According to Hendy, when he admonished the child, Kamari responded that he did not have to listen to him. Hendy admitted to punching Kamari in the mid-section four to five times, including one direct punch to the stomach.
Once back inside, according to Hendy, the child fell to the floor and could not stand. When offered food or water, Kamari declined the food but drank the water. Hendy carried the child to bed and then went outside to sell marijuana.
After an hour, he returned to the apartment. He noted that Kamari had a “blank look” on his face and appeared “spent.” Hendy then went outside again for another hour to sell marijuana. When he returned, Kamari was not breathing. Hendy called 911 at about 2:05 p.m. and reported that his girlfriend’s son was unconscious and not breathing. The 911 operator advised Hendy to give the child cardiopulmonary resuscitation, and he did.
When they arrived, members of the District of Columbia Fire and Emergency Medical Services Department found Kamari to be unconscious and unresponsive. The child was taken to Children’s National Medical Center and pronounced dead.
The District of Columbia Office of the Medical Examiner determined that Kamari died from multiple injuries to the torso. The forcefulness of the defendant’s punches caused the child’s liver to lacerate in three places. There was also bruising on his stomach, consistent with multiple fist prints. Finally, Kamari had a couple of broken ribs.
In announcing the plea, U.S. Attorney Machen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the D.C. Office of the Medical Examiner for its assistance. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney, Victim/Witness Advocate Marcia Rinker, Intern Brian Edgerton, and Assistant U.S. Attorney Cynthia G. Wright, who is prosecuting the case.
13-338Defendant in $15 Million Mortgage Fraud Conspiracy Convicted by Federal JuryRead the Press Release
LAS VEGAS, Nev. – Following a two-week jury trial, the 10th person charged in a Las Vegas mortgage fraud scheme that caused approximately $15 million in losses to the lenders and financial institutions, was convicted today of conspiracy and fraud charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Jabari L. Marshall, 36, of Las Vegas, was convicted of one count of conspiracy to commit mail fraud and wire fraud, and is scheduled to be sentenced on Jan. 9, 2014. He faces up to 20 years in prison and a $250,000 fine. Nine co-defendants pleaded guilty before trial. Eight of those are awaiting sentencing and one has been sentenced.
“The number of homes and dollar amount of the loans involved in this crime is staggering,” said U.S. Attorney Bogden. “All of the persons charged in this conspiracy have now been convicted and are facing significant prison sentences. As each of those convicted fraudsters can now attest, mortgage fraud is a very serious offense that will send you to prison.”According to the indictment and evidence presented to the jury during the trial, from about 2005 to 2007, the defendants were involved in a mortgage fraud scheme which involved the use of straw buyers and the submission of false information to financial institutions in order to obtain mortgage loans. Once the mortgage loans were approved, the defendants caused money from the loan transactions to be disbursed to their own use and benefit. The defendants typically rented the homes and re-sold them for a profit, using the same scheme. They then defaulted on the loans, causing approximately $15 million in losses to the lenders. Defendant Lloyd Gardley was considered to be the leader of the conspiracy. Lloyd Gardley, Candis Gardley, and Marshall recruited straw buyers, loan officers and others into the scheme. Marshall also provided false Social Security numbers and false documents for some of the loans. The other defendants included two loan officers, two real estate agents, an escrow assistant, an accountant, and an individual who provided false verifications of rent.
The evidence showed that the defendants used this fraudulent scheme to purchase 30 homes in Las Vegas between 2005 and 2007. The total value of the mortgages was approximately $35 million. Some of the homes were “flipped” or sold twice within short periods of time.
The case was investigated by the United States Postal Inspection Service and prosecuted by Assistant U.S. Attorneys Brian Pugh and Sarah E. Griswold.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.David Elmer Muskrat Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on September 26, 2013, before Chief U.S. District Judge Dana L. Christensen, DAVID ELMER MUSKRAT, a 35-year-old resident of Poplar and an enrolled member of a federally-recognized tribe, was sentenced to a term of:
Prison: 210 months
Special Assessment: $100
Supervised Release: 4 years
MUSKRAT was sentenced in connection with his guilty plea to second degree murder.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On September 1, 2012, MUSKRAT was driving around Poplar, which is within the exterior boundaries of the Fort Peck Indian Reservation, looking for "X.X.", the now-deceased victim. Along the way, he expressed to more than one person his intent to kill X.X. if he found him. MUSKRAT was coming around a corner in Poplar and spotted X.X. walking down the street. MUSKRAT accelerated his SUV into X.X. and hit him with the vehicle. X.X. died. MUSKRAT fled the scene in the SUV.
This case is one of many examples of serious felonies the Montana U.S. Attorney's Office rigorously prosecutes in Indian Country every year. It is also a living example of the power of interagency collaboration. Five agencies devoted time, effort, and resources to this case, including the Federal Bureau of Investigation, the Fort Peck Criminal Investigators, the Fort Peck Department of Law and Justice, the Poplar Police Department, and the Roosevelt County Sheriff's Office, all of which resulted in justice being achieved for the victim in this case." U.S. Attorney Michael W. Cotter.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MUSKRAT will likely serve all of the time imposed by the court. In the federal system, MUSKRAT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Fort Peck Criminal Investigators, the Fort Peck Department of Law and Justice, the Poplar Police Department, and the Roosevelt County Sheriff's Office.
Daniel Aaron Roy Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 25, 2013, before U.S. District Judge Donald W. Molloy, DANIEL AARON ROY, a 33-year-old resident of Missoula, was sentenced to a term of:
Prison: 144 months
Special Assessment: $100
Supervised Release: 5 years
ROY was sentenced in connection with his guilty plea to conspiracy to distribute methamphetamine and use of a firearm in furtherance of a drug trafficking crime.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
In early 2013, information was obtained from two confidential informants that ROY was distributing large quantities of methamphetamine. One of the CI's indicated that he/she was aware that ROY received some type of settlement in which he obtained about $20,000 around November of 2012, and that around that same time ROY began making monthly trips, via rental vehicles, to Washington to obtain pound quantities of methamphetamine to bring back to Montana for distribution. A CI stated that ROY had a storage unit where he kept a safe and that after making methamphetamine runs, ROY would leave the bulk of his methamphetamine in the safe and return to the storage unit as needed to replenish his supply. ROY had also bragged to a CI about keeping money in his safe as "go" money in case he is stopped by the cops to allow him to get out of town. A CI further indicated that ROY kept firearms inside the storage unit and inside his trailer that were given to him as payment for a bad drug debt.
Law Enforcement issued a subpoena to a rental car agency and was able to determine that ROY had rented vehicles consistent with some of the time frames indicated by the CI.
Around January 23, 2013, information was obtained that ROY was planning on making a trip to obtain methamphetamine from a different source of supply in California. On January 25, 2013 a Montana State search warrant was obtained and a tracker was placed on a rental car prior to ROY obtaining the rental. After ROY rented the car, he traveled to his storage unit, where he removed a large black plastic storage container and placed it into the storage unit (viewed/recorded by pole camera). ROY then drove to his trailer and eventually left town in the rental car later that evening.
On February 1, 2013, via the tracker, it was determined that ROY was coming back toward Missoula. Two search warrants were applied for and granted. The first was for the vehicle ROY had rented and the second search warrant was for ROY's trailer and his storage unit.
On the morning of February 2, 2013, Missoula County Sheriff's Office Deputies conducted a traffic stop on ROY's rental vehicle on Interstate-90 in Missoula County. Following the traffic stop, the search warrants were executed on ROY's rental vehicle, storage locker, and residence. During the search of the vehicle, two safes were located in the trunk of the vehicle. The keys to these safes were on the key ring in ROY's possession along with the key to his storage unit. One safe contained approximately 452 grams of suspected methamphetamine and a Witness 40 caliber S&W handgun with a loaded magazine. The second smaller safe contained documents belonging to ROY, along with drug paraphernalia (spoon, baggies, and cut straw), 26 grams of suspected methamphetamine, and numerous pharmaceutical pills. ROY also had a small amount of suspected methamphetamine on his person. A search of the storage unit resulted in the seizure of $4,012 U.S. currency, user quantities of suspected heroin, user quantities of suspected methamphetamine, six firearms, ammunition, and user quantities of suspected marijuana. The suspected methamphetamine, scale, packaging materials, and numerous other items of drug paraphernalia were located within the black plastic container that TFOs observed ROY placing in the storage locker days before.
A search of the residence resulted in the seizure of approximately four grams of marijuana, miscellaneous packaging materials, a Bud Light hide-a-can, a digital scale, suspected marijuana, and approximately 95 grams of suspected Psilocybin (hallucinogenic mushrooms).
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ROY will likely serve all of the time imposed by the court. In the federal system, ROY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Drug Enforcement Administration and the High Intensity Drug Trafficking Area (HIDTA) Task Force.
Dallas Criminal Defense Lawyer Sentenced to 24 Months in Federal Prison on Money Laundering ConvictionRead the Press Release
Defendant Laundered Tens of Thousands of Dollars of Supposed Drug Trafficking Proceeds
DALLAS — Patrick Robert Simon, 34, of Dallas, Texas, was sentenced this morning by U.S. District Judge Jorge Solis to 24 months in federal prison, following his guilty plea in January 2013 to a criminal Information charging one count of money laundering, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Solis ordered that Simon, a criminal defense lawyer, surrender to the Bureau of Prisons on January 8, 2014.
According to documents filed in the case, during Fall 2009, Simon met with an individual to discuss this individual’s desire to put aside proceeds from his drug trafficking activities for his family’s use during his upcoming imprisonment for that drug trafficking. Simon discussed a few ways that he could create an apparently legitimate income stream for the individual’s family, and the fees that he would charge for doing it.
After numerous meetings and continued negotiations, on March 16, 2010, the individual met with Simon at Simon’s law office to transfer the cash. Simon explained the scheme. Simon stated that the individual was going to hire Simon’s firm to handle the appeal of his drug trafficking conviction. Simon stated that he would use his attorney trust fund to write a check every month to the individual’s designee. Simon explained that because it was a legal transaction, he would not have to report it. The three of them agreed that the checks would be written for $7500, unless a different amount was specified later. The individual gave $110,000 cash to Simon. Simon had a money counter on hand for the purpose of counting the cash. Simon accepted the cash and attempted to use the money counter, but the machine malfunctioned and Simon counted the cash by hand.
During the time that Simon was counting the cash, the three repeatedly discussed the individual’s participation in the drug trade and that the money being counted was from his drug trafficking activities. Simon also instructed the individual on a code to use in all future communications to discuss the scheme. For example, Simon instructed them that if they needed Simon to increase the amount of the monthly check, they were to call Simon and tell him that a specified college football team was playing well, and Simon would increase the monthly check by $1,000 (to $8,500). Similarly, if they wanted to decrease the amount of the monthly check, they were to call Simon and tell him that a specified professional football team was playing poorly, and Simon would decrease the monthly check by $1,000 (to $6,500). Since the cash delivery, and in execution of the money laundering scheme, Simon paid the individual’s designee on a monthly basis.
The case was investigated by Internal Revenue Service Criminal Investigation. Deputy Criminal Chief Assistant U.S. Attorney Jay Dewald prosecuted.
Cresco Man Pleads Guilty to Unlawfully Possessing Two GunsRead the Press Release
A man who fired a shotgun out of a car window in Calmar, Iowa, pled guilty in federal court in Cedar Rapids on September 25, 2013, to unlawfully possessing the shotgun and a rifle.
Daniel Wildman, 24, from Cresco, Iowa, was convicted of one count of being a felon and an unlawful user of marijuana in possession of firearms.
In a plea agreement, Wildman admitted he drove from Ossian, Iowa, to Calmar, Iowa, in the early morning on October 12, 2012, in order to find two individuals who had confronted Wildman earlier that morning about money one of them believed Wildman owed him. Wildman found the two individuals, who were with a third person, and defendant parked his car so that the driver’s side window was facing the three people. Wildman then stuck a shotgun out the driver’s window and fired it three or four times, hitting a nearby house with bird shot. No people were hit or injured. Wildman drove away from the scene of the shooting and returned to a farm in Ossian. Police eventually caught Wildman in a nearby cornfield. Police also searched an outbuilding where Wildman was staying in his RV, finding both the shotgun Wildman fired and a 9mm rifle. In the plea agreement, Wildman admitted he was a convicted felon and an unlawful user of marijuana and he unlawfully possessed both guns.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Wildman remains detained pending sentencing. Wildman faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Winneshiek County Sheriff’s Office, the Iowa Division of Narcotics Enforcement, the Iowa Division of Criminal Investigation, and the Calmar Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-2018.
of the press release can be pasted over the following paragraphs.
Colorado Man Charged with Attempting to Interfere with the Administration of IRS LawsRead the Press Release
DENVER – Byron Thomas Warnes, age 60, of Silverthorne, Colorado, was charged by an Information in Denver yesterday, Thursday, September 25, 2013, for attempting to interfere with the administration of IRS laws, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Warnes waived his right to be indicted by a federal grand jury.
According to the Information, Warnes was self-employed as a real estate agent and broker doing business under the name “Gold Mountain Realty” (“GMR”). He was also the co-founder, 50% beneficial owner and one of two principals of Aspen Ridge, LLC (“Aspen Ridge”), a Colorado limited liability company involved in real estate investment and development. One of Aspen Ridge’s real estate projects concerned the purchase in October 2005 and contemplated development of approximately 291 acres of undeveloped land commonly known as the “Pine Air Addition,” situated in and about Hot Sulphur Springs, Grand County, Colorado. Warnes and Aspen Ridge’s other principal ultimately did not develop this land but rather granted conservation easements to Grand County with respect to most of the acreage, leading to the acquisition and sale of State of Colorado tax credits associated with the granting of these easements.Beginning in or about 1994, the IRS conducted an audit examination to determine Warnes’s income and federal income tax liability for the year 1992. In February 1997, as a result of that audit, the IRS determined that Warnes owed a total of approximately $232,242 in federal taxes, interest and penalties for the 1992 year and made a tax assessment of this amount and the IRS recorded a federal tax lien for this and other federal tax assessments against Warnes.
From about January 2005, and continuing through August 2008, the exact dates being unknown, Warnes directly and through others known and unknown did corruptly endeavor to obstruct and impede the due administration of the internal revenue laws by:
- Cashing or converting to cashier’s checks, real estate commission checks rather than depositing them into personal or business bank accounts.
- Depositing the resulting cash and/or cashier’s check into a personal bank account for use to pay for personal expenses.
- Converting the resulting cashier’s checks into smaller blocks of cash or using them to purchase similar bank instruments in smaller denominations.
- The negotiation and conversion of these real estate commission checks, in the manner described above, such that he ultimately received cash from these real estate commission checks in sub-$10,000 amounts, thereby avoiding and circumventing bank currency reporting requirements for transactions involving more than $10,000 in cash.
- Circumventing the bank cash reporting requirements, by enlisting family members to negotiate, on his behalf, for cash checks made payable to him in amounts greater than $10,000 and providing to him in return the resulting cash, or, alternatively, using their names and social security account numbers to negotiate these checks and obtain the resulting cash.
- Deeding some of the sub-divided acres of the Pine Air Addition into the names of two of his family members.
- Filing an individual federal income tax return with the IRS for the year 2005 under-reporting by approximately $98,000 the real estate commissions that he had made for that year.
- Failing to file federal income tax returns for years subsequent to 2005, thereby failing to disclose to the IRS the income that he was receiving during those years.
“Those who interfere with the administration of the IRS and IRS laws may face criminal consequences,” said U.S. Attorney John Walsh.
“Interfering with the tax law or those administering tax laws is unacceptable; rest assured we will hold those accountable and bring them to justice,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field office.
Warnes was charged with one count of attempting to interfere with the administration of IRS laws. If convicted of that count he faces not more than 3 years in federal prison, and a fine of up to $250,000.
This case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Kenneth Harmon.
The charges contained in the information are allegations, and the defendant is presumed innocent unless and until proven guilty.####
- Cashing or converting to cashier’s checks, real estate commission checks rather than depositing them into personal or business bank accounts.
Colombian Drug Trafficker Pleads Guilty to Drug Trafficking ChargesRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Camilo Torres-Martinez, aka Fritanga (41, Colombia), yesterday pleaded guilty to conspiracy to import into the United States five kilograms or more of cocaine; conspiracy to manufacture and distribute five kilograms or more of cocaine, intending that it would be unlawfully imported into the United States; and conspiracy to possess with intent to distribute five kilograms or more of cocaine, while on board a vessel subject to the jurisdiction of the United States. He faces a mandatory minimum sentence of 10 years' imprisonment and a maximum penalty of life in federal prison for each count. Torres-Martinez was extradited from Colombia to the Middle District of Florida to face these charges.
According to court documents, Torres-Martinez admitted that from 2001 until June 2012, he organized and coordinated cocaine transportation operations. Torres-Martinez and his drug trafficking organization transported large quantities of cocaine in vessels dispatched off the Northern coast of Colombia. The cocaine was transported from the coast of Colombia to Honduras, for ultimate introduction into, and distribution in, the United States. The drug trafficking organization utilized speedboats and fishing vessels to transport the drugs.
On November 8, 2004, the U.S. Coast Guard interdicted a 40-foot speedboat in international waters in the Carribean Sea. Coast Guard personnel recovered a total of 2,652 kilograms of cocaine. On July 6, 2005, the U.S. Coast Guard interdicted a Honduran-flagged fishing vessel, the Ocean Mistery, in international waters in the Carribean Sea. Coast Guard personnel recovered a total of 2,483 kilograms of cocaine. Both of these drug transport operations were organized by Torres-Martinez.
This case was investigated by OCDETF's Panama Express Strike Force, comprised of agents and analysts from the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, United States Coast Guard Investigative Service, and Joint Interagency Task Force South. It is being prosecuted by Assistant United States Attorney Maria Chapa Lopez.
Brandon Wade Havens Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 26, 2013, before U.S. District Judge Donald W. Molloy, BRANDON WADE HAVENS, a 28-year-old resident of Helena, was sentenced to a term of:
Prison: 180 months
Special Assessment: $200
Supervised Release: 5 years
HAVENS was sentenced in connection with his guilty plea to conspiracy to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
Investigation by the Federal Bureau of Investigation revealed that HAVENS had runners who traveled from California to Montana. One of his runners cooperated with law enforcement and made several recorded telephone calls to HAVENS regarding the purchase of cocaine, and at HAVENS' direction, made a payment to HAVENS' bank account for past monies due for cocaine and heroin.
HAVENS was arrested on November 11, 2012 on a state warrant in Missoula. HAVENS admitted to trafficking cocaine from Washington to Montana in 2010/2011. HAVENS estimated he distributed a total of 12.5 pounds of cocaine equally to five individuals. HAVENS met another individual in California in the summer of 2011, from whom he began purchasing cocaine and heroin. HAVENS purchased cocaine from California for the last 18 months, and heroin for the last 12 months.
In the last year, HAVENS increased his quantities to 7-9 ounces of heroin, and 10-12 ounces of cocaine, every two weeks. On two occasions, HAVENS paid one of his runners $1,000 to drive the drugs from California to Montana. The amount of heroin HAVENS admitted to trafficking is well above one kilogram.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HAVENS will likely serve all of the time imposed by the court. In the federal system, HAVENS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Bergen County, N.J., Man Charged with Distributing Images of Child Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – Special agents of the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) arrested a Bergen County man at his home this morning after discovering alleged child pornography on his computer, U.S. Attorney Paul J. Fishman announced.
Joshua Babilonia, 23, of Fair Lawn, N.J., is charged by complaint with one count of distributing images of child sex abuse over the Internet. Babilonia appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on a $50,000 bond. He is subject to electronic monitoring and is to have no access to children as a condition of his release.According to the criminal complaint unsealed today:
On May 27, 2012, Babilonia distributed videos depicting child sexual abuse on the Internet via peer-to-peer file sharing software, through which other users had access. Special agents of the ICE HSI executed a search warrant on Sept. 13, 2012, at his residence in Fair Lawn, seizing digital evidence that contained numerous videos depicting child sexual abuse, including material involving prepubescent minors and sadistic or masochistic conduct. The digital evidence seized included three files previously downloaded from Babilonia by law enforcement agents working in an undercover capacity on the peer-to-peer network.
Babilonia faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a maximum $250,000 fine.U.S. Attorney Fishman thanked special agents of ICE HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark, for the investigation.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-392Defense counsel: Assistant Federal Public Defender Patrick McMahon Esq., Newark
Babilonia, Joshua Complaint
Ben Avon Heights Man Charged with Receiving, Possessing Sexual Images of MinorsRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of receipt and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment named Charles Appel, 71, as the sole defendant.
According to the indictment, Appel, on Feb. 21, 2011, received by United States mail a video which depicted the sexual exploitation of a minor. He is further charged with possessing, on Oct. 11 and 12, 2012, images and videos on DVD’s and in computer graphics files which depicted the sexual exploitation of minors.
The law provides for a maximum total sentence of 40 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bank Robber Sentenced to Federal Prison for Series of Robberies in Texas and MichiganRead the Press Release
In San Antonio, 34-year-old Michael Albert Amirante was sentenced to 63 months in federal prison for robbing several banks in Texas and Michigan announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division.
In addition to the prison term, United States District Judge Orlando Garcia ordered that Amirante pay $11,352 restitution to the financial institutions he robbed and be placed under supervised release for a period of three years after completing his prison term.
In January, Amirante pleaded guilty to three counts of unarmed bank robbery. By pleading guilty, Amirante admitted that he robbed the San Antonio Federal Credit Union (SACU) branch on Bandera Road on August 30, 2012; the First Convenience Bank branch in Duncanville, TX, on April 18, 2012; and, the First Convenience Bank branch in Mesquite, TX, on May 29, 2012. Amirante also admitted to robbing the Fifth Third Bank in Lansing, MI, on December 21, 2011.
Amirante has been in federal custody since being arrested by FBI agents on August 30, 2012, following the SACU robbery. This investigation was conducted by FBI agents in San Antonio, Dallas and Lansing together with the San Antonio, Duncanville, Mesquite and Lansing Police Departments. Assistant United States Attorney Michael Hardy prosecuted this case on behalf of the government.
Aryan Brotherhood of Texas Gang Leader Sentenced in Houston for Role in Racketeering ConspiracyRead the Press Release
A high-ranking member of the Aryan Brotherhood of Texas (ABT) was sentenced today to serve 360 months in prison for his role in the ABT’s criminal enterprise, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Charles Lee Roberts, aka “Jive,” 68, of Beaumont, Texas, was sentenced today by U.S. District Judge Sim Lake in the Southern District of Texas. In addition to his prison term, Roberts will serve five years of supervised release.
On May 10, 2013, Roberts pleaded guilty to one count of conspiracy to commit racketeering offenses (RICO).
According to court documents, Roberts and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Roberts and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
Roberts admitted to being a senior leader of the ABT, trafficking in methamphetamine and heroin, and being involved in several homicides on behalf of the ABT.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Roberts is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice–Office of Inspector General; Harris County, Texas, Sheriff’s Office; Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.