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20 November 2013
South Dakota Man Sentenced for Bank Robbery in New EnglandRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Nov. 20, 2013, Colt D. Schneider, 20, Rapid City, S.D., was sentenced by U.S. District Judge Daniel Hovland on a charge of bank robbery and a charge of use and carry of a firearm during and in relation to a crime of violence. Schneider was found guilty of the charges by a federal jury on Aug. 22, 2013.
On the charge of bank robbery, Judge Hovland sentenced Schneider to serve one day with the Bureau of Prisons. On the charge of use and carry of a firearm during and in relation to a crime of violence, Judge Hovland sentenced Schneider to seven years with the Bureau of Prisons, which will run consecutively to the bank robbery sentence, to be followed by three years of supervised release. Schneider was sentenced to pay a $200 special assessment to the Crime Victim’s Fund and restitution of $4,053.35.
On Oct. 18, 2012, at approximately 8:20 a.m., two men wearing black ski masks and carrying guns entered American Bank Center in New England, N.D. After obtaining money from a bank employee, the men fled the scene.
During the investigation it was discovered that shortly before the robbery, a man who matched the physical characteristics of one of the bank robbers had stopped at a gas station in New England and had purchased gas. Law enforcement obtained the video from the gas station and distributed a picture of the suspect. A detective with the Rapid City (S.D.) Police Department recognized the man as Colt Schneider. Further investigation led to the identity of the other man – Johnner Joe Ward, Jr. The police found that Schneider and Ward worked for a construction company in Rapid City and that they had worked on a construction job in New England a few months before the robbery.On Nov. 2, 2012, Ward was arrested in Midland, Texas. On Feb. 22, 2013, Ward pleaded guilty to charges of bank robbery and use and carry of a firearm during and in relation to a crime of violence. Ward was sentenced on Aug. 26, 2013, to a total of 11 years in federal prison on the charges of bank robbery and use and carry of a firearm during and in relation to a crime of violence.
On Nov. 10, 2012, Schneider was arrested in Sarasota, Fla. He was returned to North Dakota and stood trial on August 20-22, 2013.
The case was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, North Dakota Bureau of Criminal Investigation, Hettinger County Sheriff’s Department, North Dakota Highway Patrol, Dickinson Police Department, Bismarck Police Department, Rapid City Police Department, Midland (Texas) Police Department, Bradenton (Florida) Police Department, and Florida Game & Fish.
Assistant U.S. Attorney David Hagler prosecuted the case.
Roswell Man Sentenced to Prison for Unlawful Possession of FirearmsRead the Press Release
ALBUQUERQUE – Harley Harkness, 41, of Roswell, N.M., was sentenced today to 30 months in federal prison for his unlawful possession of firearms. Harkness will be on supervised release for two years after he completes his prison sentence.
Harkness was arrested in March 2013, on a criminal complaint charging him with unlawful possession of firearms and possession of a stolen firearm. According to the criminal complaint, Harkness committed these offenses on Jan. 13, 2013. At the time, Harkness was prohibited from possessing firearms or ammunition because he previously had been convicted of the following offenses in the 5th Judicial District Court for the State of New Mexico: residential burglary and tampering with evidence in Oct. 2001 and battery against a household member in Oct. 2003.
Court filings reflect that the federal charges against Harkness arose out of a domestic violence incident on Jan. 13, 2013. On that day, Roswell Police Department officers responded to a domestic violence call from Harkness’s wife who reported that Harkness hit her and pointed a firearm at her. When the officers executed a search warrant at the Harkness residence in Roswell, they found a .22 caliber rifle, two loaded pistols and ammunition.
In June 2013, Harkness pled guilty to a felony information charging him with being a felon in possession of a firearm and admitted that he unlawfully possessed the rifle and two pistols on Jan. 13, 2013, in Chaves County, N.M.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roswell Police Department and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.Rochester Woman Charged with Stolen Identity and Refund Fraud CrimesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Kelly N. Borger, 31, of Rochester, N.Y. and West Hollywood, California, was charged by criminal complaint with conspiracy to submit false claims, wire fraud, and aggravated identity theft. The charges carry a maximum sentence of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, Borger conspired with Michael Carney to prepare and file false income tax returns. The defendant sold Carney stolen personal identity information – including names and social security numbers – that Carney used to create fake W-2s and false income tax returns totaling over $500,000. Carney then paid the defendant for the stolen identity information with a portion of the fraudulently obtained refunds by depositing money into bank accounts that Borger controlled, including the bank account of her business, Alpha Females, Inc.
Michael Carney was convicted in California for his role in the crimes.
Borger made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson. The defendant was released on bail and is due back in court on January 9, 2014 at 9:00 a.m.
The criminal complaint is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni M. Weirauch, Special Agent in Charge.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Ringleader in Two Credit Card Fraud Schemes Sentenced to over 17 Years in PrisonRead the Press Release
Over 250 Victims Impacted by the Schemes
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced ringleader, Oluwaseun Sanya, age 28, of Beltsville, Maryland late on November 19, 2012, to 212 months in prison, followed by three years of supervised release, for two separate credit card fraud schemes, one of which he committed while awaiting sentencing after pleading guilty to the first scheme. Judge Messitte also ordered Sanya to pay restitution of $251,712.87 and entered a forfeiture order for the same amount. Sanya also forfeited a Range Rover and Maserati luxury sports car as part of this case.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
On July 31, 2012, Sanya pled guilty in federal court in Maryland to conspiring to commit access device fraud. Sanya admitted that, at least beginning in 2010, he oversaw a credit card skimming operation in which he recruited employees at restaurants and businesses to steal customer credit card information. The stolen data was then loaded onto gift cards, or encoded onto other credit or debit cards. These cards were used to buy merchandise at area businesses, and the merchandise was later returned in exchange for cash. Sanya’s actions in this scheme impacted 250 or more victims. Upon pleading guilty, Sanya was released from custody pending sentencing upon condition that he not commit any crimes.However, Sanya admitted that while on release pending sentencing, he again committed credit card fraud and aggravated identity theft. Beginning in at least September 2012, Sanya drove Latasha Bufford, Chazokam Okoye and Shanese Crawford to stores along the east coast and directed them to use stolen credit card account numbers which were re-encoded onto counterfeit gift cards, to purchase legitimate gift cards. Security officials at the Wegman’s grocery store chain detected the fraudulent activity and internally circulated store security video of the women using the stolen credit card information to purchase gift cards.
On September 15, 2012, the women entered a Wegman’s store in Abingdon, Maryland, where they attempted to buy gift cards using several counterfeit credit cards at different registers throughout the store. A store theft prevention employee recognized the women and alerted law enforcement. The women traveled in a vehicle driven by Sanya to another Wegman’s store in the area, and upon leaving that store, were stopped by local law enforcement. Sanya encouraged the women to lie about their criminal activity, and falsely claimed to officers that he was in the midst of an undercover operation on behalf of federal law enforcement. Inside the vehicle, police officers seized roughly $11,000 worth of legitimate gift cards that the women had purchased at Sanya’s direction using 33 counterfeit credit cards, which were also seized. During the previous two weeks alone, at Sanya’s direction, the women had used counterfeit credit cards to make over $30,000 in additional fraudulent purchases. In addition, on September 15, 2012, Sanya possessed at least one stolen credit card number. Sanya was arrested and has been detained since that time.
Dimitria Limnios, age 22, of Glen Burnie, Maryland, and Monet Griffin, age 24, of Baltimore, Maryland, previously pleaded guilty to their participation in the first fraud scheme. Limnios and Griffin face a maximum penalty of seven and a half years for conspiracy to commit access device fraud. Limnios has agreed to pay at least $148,191.04 in restitution and forfeiture. Griffin has agreed to pay at least $27,409.57 in restitution and forfeiture. Sentencing dates for Limnios and Griffin are yet to be determined.
Chazokam Okoye, age 22, of Silver Spring, Maryland, previously pleaded guilty to her participation in the second fraud scheme and was sentenced to four months in prison, followed by four months of home detention. Okoye was also ordered to perform 50 hours of community service and to forfeit $30,000. Latasha Bufford, age 25, of Haymarket, Virginia, and Shanese Crawford, age 24, of Accokeek, Maryland, also pleaded guilty. Judge Messitte has scheduled Crawford’s sentencing for January 9, 2014 at 9:30 a.m. No date has been set for Bufford’s sentencing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and the Montgomery County and Baltimore County Police Departments for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Sujit Raman and Thomas Windom, who prosecuted these cases.
Renton Man who Sold Fake Dale Chihuly Art Online Sentenced to Five Months in Prison for Wire FraudRead the Press Release
A 35-year-old Renton, Washington man was sentenced today in U.S. District Court in Seattle to five months in prison, three years of supervised release, including five months in a halfway house, and $75,389 in restitution for wire fraud in connection with his scheme to advertise and sell fake Chihuly artwork, announced U.S. Attorney Jenny A. Durkan. MICHAEL LITTLE bought various pieces of generic glasswork and artwork over the internet and falsely claimed to buyers that it was authentic Dale Chihuly work. LITTLE continued his sales scheme even after eBay removed some of the postings, and PayPal reversed one of the purchases after being alerted to the fraud. U.S. District Judge Robert S. Lasnik imposed the sentence.
“This defendant was persistent and creative in his fraud that recycled ordinary glass into costly works of art,” said U.S. Attorney Jenny A. Durkan. “Fraud schemes like this one target all artists and damage confidence in the online marketplace.”
According to records in the case, between 2011 and April 2013, LITTLE offered for sale or sold various pieces of glass art and paintings that he represented were the original work of Dale Chihuly. LITTLE marketed the works via eBay. The artworks bore a signature that appeared to be Chihuly’s and LITTLE provided paperwork that he said authenticated the pieces as the work of Dale Chihuly. However, an expert in Chihuly’s work examined the pieces at the request of a number of the purchasers and determined they were fakes. The papers that were supposed to authenticate the works were forged. LITTLE told various stories to potential buyers about how he had acquired the Chihuly work, including that his family had purchased the pieces after winning the lottery. As early as 2011, PayPal had reversed one purchase, and eBay had removed some of LITTLE’s postings after being alerted to the fraud. Despite the warning, LITTLE persisted in posting and selling the art in person, online and through a Renton auction house.
The case was investigated by Seattle-Tacoma Border Enforcement Security Task Force (BEST Seattle), led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). BEST Seattle is comprised of members from HSI; U.S. Customs and Border Protection’s Office of Field Operations; the U.S. Secret Service; the U.S. Coast Guard Investigative Service; the FBI; the U.S. Postal Inspection Service; and the Port of Seattle Police Department. BEST Seattle investigates smuggling and related crimes and combats criminal organizations seeking to exploit vulnerabilities at the Seattle and Tacoma seaports and adjacent waterways.
The case is being prosecuted by Assistant United States Attorney Matthew Diggs.
Prominent Tri-State Cardiologist Sentenced to 78 Months in Prison for Record, $19 Million Billing Fraud Scheme, Exposing Patients to Unnecessary Medical TreatmentRead the Press Release
Dr. Jose Katz Also Ordered to Pay $19 Million in Restitution
NEWARK, N.J. – A well-known cardiologist and the founder, CEO and sole owner of two large medical services companies in New Jersey and New York was sentenced today to 78 months in prison and ordered to pay $19 million in restitutionfor conspiring in a multimillion-dollar health care fraud scheme that subjected thousands of patients to unnecessary tests and potentially life-threatening, unneeded treatment, as well as treatment by unlicensed or untrained personnel. The sentence was announced today by New Jersey U.S. Attorney Paul J. Fishman.
Jose Katz, 69, of Closter, N.J., previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of conspiracy to commit health care fraud and one count of Social Security fraud arising from a separate scheme to give his wife a “no show” job and make her eligible for Social Security benefits. Judge Linares imposed the sentence today in Newark federal court.
“Katz prized illegal profits over patients to a staggering degree, committing record-breaking fraud and compromising care,” said U.S. Attorney Fishman. “Prison is an appropriate consequence for ripping off the government and insurance companies through the shocking exposure of patients to unneeded or untrained treatment.”
As part of his plea agreement with the government, Katz agreed that the loss amount sustained by Medicare, Medicaid and other insurers victimized by the fraudulent billings was $19 million. U.S. Department of Health and Human Services, Office of Inspector General and FBI records indicate the loss amount suffered by the victims is the largest recorded in New Jersey, New York and Connecticut for an individual practitioner convicted of health care fraud.
According to documents filed in this case and statements made in court:
Katz was the founder, CEO and sole equity-holder of Cardio-Med Services LLC (Cardio-Med), and Comprehensive Healthcare & Medical Services LLC (Comprehensive Healthcare). From 2004 through 2012, Cardio-Med had offices in Union City, Paterson and West New York, N.J., and Comprehensive Healthcare had offices in Manhattan and Queens, N.Y. Both Cardio-Med and Comprehensive Healthcare provided cardiology, internal medicine and other medical services to individual patients. During that time period, Katz conspired to bill Medicare Part B, Medicaid, Empire BCBS, Aetna and others for unnecessary tests and unnecessary procedures based on false diagnoses and for medical services rendered by unlicensed practitioners.
Between July 2006 and February, 2009, Katz spent more than $6 million for advertising on Spanish-language television and radio stations. The ads attracted hundreds of patients to Cardio-Med and Comprehensive Healthcare every day. Overall, Katz was able to bill Medicare and Medicaid more than $75 million for his services from 2005 through 2012.
Over the course of the conspiracy, Katz ordered and performed essentially the same battery of diagnostic tests for nearly all the patients he treated, regardless of their symptoms. Katz also instructed his non-physician employees to order and perform diagnostic tests for patients of other doctors working at his offices, even though he had not examined those patients and the other physicians had not ordered the tests.
Most significantly, Katz admitted that he falsified patient charts with fictitious and boilerplate symptoms and falsely diagnosed a majority of his Medicare and Medicaid patients with coronary artery disease and debilitating and inoperable angina. He also admitted to making the diagnoses to justify prescribing and administering an unnecessary treatment for those patients called enhanced external counter pulsation, or EECP. Katz even prescribed EECP treatments for some patients with contraindications for the treatment, therefore subjecting those patients to a substantial risk of serious injury or death.
From 2005 through 2012, Medicare and Medicaid paid Katz more than $15.6 million just for his EECP treatments, most of which were fraudulent.
In addition, Katz ordered conspirator Mario Roncal, 62, of Woodland Park, N.J. – who had a medical degree from San Juan Bautista School of Medicine in San Juan, Puerto Rico, but did not have a license to practice medicine in any of the 50 states – to treat patients, knowing he was not licensed. At Katz’s direction, Roncal held himself out to fellow employees and to patients as “Dr. Roncal,” examined new patients as well as Katz’s follow-up patients, ordered diagnostic tests, diagnosed patients with medical conditions and diseases and recommended and prescribed courses of treatment and surgery – including falsely diagnosing patients with angina and prescribing EECP treatments for those patients.
To conceal this illegal and unlicensed practice of medicine, Roncal forged Katz’s signature on paperwork associated with Roncal’s unlawful medical services, including on patient charts. During the conspiracy, Katz used his own billing numbers to bill Medicare Part B and Medicaid for the illegal services Roncal provided as though they were provided by Katz.
Roncal was indicted on March 2, 2012, for conspiracy to commit health care fraud. He entered a guilty plea on Jan. 4, 2013 and awaits sentencing.
Katz also admitted to a Social Security fraud scheme in which, from 2005 through 2012, he kept his wife on Cardio-Med’s payroll though she performed little or no work. During the course of the scheme, Katz sent false W-2 forms for calendar years 2005 through 2011 to the U.S. Social Security Administration purportedly reflecting $1,251,604 in earnings for his wife, making her eligible for an estimated $263,000 in Social Security benefits to which she was not entitled.
In addition to the prison term and restitution, Judge Linares sentenced Katz to serve three years of supervised release.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates; the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan; IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and criminal and civil investigators with the U.S. Attorney’s Office for the investigation leading to today’s sentence. He also thanked the Medicaid Fraud Division of the Office of the New Jersey State Comptroller for its assistance.
The government is represented by Assistant U.S. Attorney Scott B. McBride of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Blair R. Zwillman Esq., Parsippany, N.J.Combatting Health Care Fraud in NJ
Previously Convicted Drug Trafficker Sentenced to Serve A Total of 258 Months in Federal Prison on Firearms ConvictionsRead the Press Release
DALLAS— Erik Willis, 31 of Purdon, Texas, was sentenced this afternoon by U.S. District Judge Jorge A. Solis to serve a total of 258 months in federal prison following his conviction at trial in July 2013 on three felony firearms offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically,Willis, who represented himself at trial, was convicted on two counts of being a felon in possession of a firearm and one count of possessing an unregistered firearm. Judge Solis sentenced him to 120 months on each count of conviction, for a total of 360 months, but two of the three sentences will run concurrently. In addition, when Willis was convicted, he was on federal supervised release, so he received an additional 18-month sentence for this violation.
At trial, the government presented evidence that on April 27, 2011, Willis, who had been previously convicted in 2005 of possession with intent to distribute more than 100 kilograms of marijuana, fled after choking a Garrett Police officer during a traffic stop. A subsequent search of his truck yielded two guns and marijuana.
Then, on May 6, 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Texas Rangers and the Navarro County Sherriff’s Office searched Willis’s property in Purdon after receiving information he had stockpiled weapons and drugs. During the search, officers located three and a half pounds of marijuana, $150,000 in cash and 13 firearms, including a “street sweeper” destructive device. Willis’s house was heavily fortified, containing a hidden room, steel curtains, money counters, industrial door locks and surveillance equipment.
The case was investigated by ATF, the Texas Rangers, the Navarro County Sheriff’s Office and the Garrett Police Department. Assistant U.S. Attorneys Cara Foos Pierce and Taly Haffar prosecuted.
Phillip Dennis Keith Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney(s Office announced that on November 20, 2013, in Billings, after a federal district court trial before District of Wyoming U.S. District Judge Scott W. Skavdahl, PHILLIP DENNIS KEITH, a 66-year-old resident of Billings, was found guilty of false statements to a federally insured banking institution. A sentencing date will be set at a later time. He is currently released on special conditions.
At trial, the following evidence and testimony was presented to the jury:
Representatives of Wells Fargo Bank, Rocky Mountain Bank, and First Citizen's Bank (now Western Security Bank) explained that KEITH pledged one of his liquor licenses as collateral for loans at all three banks, falsely telling each bank that the liquor license was free and clear of liens. KEITH needed the loans to complete his development of the 12th Planet Nightclub at the Rimrock Mall.
Assistant U.S. Attorneys Kris A. McLean and Brendan P. McCarthy prosecuted the case for the United States.
KEITH faces possible penalties of 30 years in prison, a $1,000,000 fine and 5 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Philadelphia Man Charged for Role in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
PHILADELPHIA - David Anthony Holman, 46, of Philadelphia, was charged today by Information with one count of conspiracy to commit loan and wire fraud and one count of loan fraud for his participation in an alleged mortgage fraud ring, announced United States Attorney Zane David Memeger. Holman is the 13th defendant charged in the alleged scheme involving a real estate company known as “KREW” in Philadelphia. The information also seeks the criminal forfeiture of over $225,000 from Holman.
According to the information, between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia, the defendants and KREW Settlement Services handled more than 100 fraudulent mortgage loans, obtaining more than $20 million in fraudulent loan proceeds. Holman is alleged to have directly participated in helping to secure a $225,250 mortgage loan from First Tennessee Bank (via its subsidiary, First Horizon Home Loan Corporation) on 29 W. Pomona Street in Philadelphia by recruiting another person to serve as the “straw buyer” for that property. It is further alleged that Holman directed the straw buyer to make false statements in the loan application and in verbal statements to the lender.
The other 12 co-conspirators charged in this district with participating in the same mortgage fraud ring include: Kevin Joseph Franklin, Roderick L. Foxworth, Sr., Eric Sijohn Brown, and Walter Alston Brown, Jr., who owned and operated KREW; Cynthia Evette Brown, Francine Shanique Cross, Willie G. Manley Jr., Eric Ponder, Rashika J. Moon, Dontaya S. Devore, Mark Murphy, and Gregory Christopher Thornton, who worked with or for KREW.
If convicted, Holman faces a maximum possible sentence of 35 years in prison, five years of supervised release, a fine of $1.25 million or twice the value of the property involved in the transactions, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.KREW is an acronym of the first names of these four owner/operators.
A 14th co-conspirator, John William Polosky, a mortgage broker who is alleged to have knowingly brokered fraudulent loan packages for the KREW co-conspirators, has been charged in the Western District of Pennsylvania.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Panama City Man Sentenced to 37 Months in Federal Prison for Tax FraudRead the Press Release
PANAMA CITY, FLORIDA – Anthony Q. Atkinson, 31, of Panama City, Florida, was sentenced today to serve 37 months in federal prison for filing fraudulent tax returns using the personal identifying information of other individuals. The sentence imposed by the court was announced by United States Attorney for the Northern District of Florida, Pamela C. Marsh.
Atkinson and others were involved in a tax scheme whereby they conspired to file false federal income tax returns with the Internal Revenue Service claiming refunds to which the defendants knew they were not entitled. As part of the scheme, conspirators would provide the personal identifying information of other individuals to Atkinson, who would then file false tax returns for each of those individuals. The returns transmitted in this scheme have notable similarities, including fabricated taxable interest income and names of financial institutions, false amounts of Social Security income, and fabricated amounts of tax withholdings. As a result of the scheme, Atkinson and others caused the United States Treasury to pay approximately $23,496 in fraudulent income tax refunds, which Atkinson was ordered to pay back to the Internal Revenue Service as restitution.
Atkinson was also sentenced to serve a 3-year term of supervised release, and ordered to pay a $900 special monetary assessment.
This conviction results from an investigation by agents of the U.S. Internal Revenue Service and was prosecuted by Assistant United States Attorney Kathryn Risinger.New Hampshire Man Indicted for Armed RobberyRead the Press Release
BOSTON – A New Hampshire man was charged yesterday with robbing a bank in Methuen.
Rafael Beamud, Jr, 32, of Salem, NH was indicted with armed robbery and possession of a firearm in furtherance of his crime.
On Feb. 21, 2013, Beamud walked into TD Bank and approached the teller while holding a firearm. Beamud threw plastic bags on the counter, ordered the teller to empty the cash drawers and to “make sure there’s no dye pack.” He also ordered the teller not to trip the alarm or he would shoot. The teller placed the money from the drawers into one of the plastic bags, and Beamud left the bank, leaving one of the plastic bags behind. The bag was processed for fingerprints which lead to Beamud’s identification. In April 2013, Beamud was arrested.
If convicted, on the charge of armed robbery, Beamud faces a maximum penalty of 25 years in prison, five years of supervised release and a $250,000 fine; on the charge of possession a firearm during the commission of his crime, Beamud faces a mandatory minimum term of seven years in prison and a maximum term of life in prison, five years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chief Joseph Solomon of the Methuen Police Department, made the announcement today. The case is being prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The details in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Navajo Man Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Ronald Martinez, 40, an enrolled member of the Navajo Nation who resides in Borrego Pass, N.M., entered guilty pleas this afternoon to two aggravated child sex abuse charges. Under the terms of his plea agreement, Martinez will be sentenced to 42 months in federal prison followed by a term of supervised release to be determined by the court. Martinez will be required to register as a sex offender after he completes his prison sentence.
Martinez was arrested in April 2013, on an indictment charging him with two counts of aggravated sexual abuse and two counts of abusive sexual contact. According to the indictment, between 1996 and 2002, Martinez aided and abetted sexual contact and abuse with two child victims who had not attained the age of 12 years on the Navajo Indian Reservation.
Today, Martinez pleaded guilty to the two aggravated child sexual abuse charges. According to Martinez’s plea agreement, in Sept. 2011, a 17-year-old reported being sexually abused by Martinez when the victim was five or six years old. The victim also reported that Martinez also abused another child during that same period in time. Martinez admitted abusing the two child victims by directing another child to sexually abuse and to sexually assault the two child victims. Martinez also admitted threatening the two child victims so that they would not reveal the abuse. Martinez also admitted that the child who abused the child victims did so after being threatened by Martinez.
Martinez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Mingo Child Molester Gets 30-year Federal Prison Sentence for Producing Child PornographyRead the Press Release
Defendant Paul Jenkins sexually assaulted at least three minor children
CHARLESTON, W.Va. – A Mingo County pedophile who sexually assaulted a minor child, videotaped the abuse and copied the video onto a recordable DVD that was later discovered inside of a rental computer in July 2012 was sentenced today to the statutory maximum of 30 years in federal prison followed by a lifetime of supervised release, announced U.S. Attorney Booth Goodwin. Paul Silas Jenkins, 33, of Williamson, previously pleaded guilty in August to production of child pornography. Jenkins’ sentence was handed down by United States District Judge John T. Copenhaver, Jr. in Charleston.
U.S. Attorney Goodwin said, “Pedophiles like Mr. Jenkins who victimize children and steal their innocence are downright sickening, plain and simple.” Goodwin continued, “Today’s sentence assures that this child molester will spend a very long time in prison, where he belongs.”
Between some time in 2010 and December 2011, Jenkins established a relationship with a minor between the age of 12 and 16 years old. During that time, Jenkins made the minor perform sexual acts with him and then produced a video of the conduct. Jenkins copied the video containing child pornography onto a recordable DVD. The DVD was discovered inside a rented computer that was returned to a Rent-A-Center located in Pike County, Kentucky in July 2012.
United States District Judge John T. Copenhaver, Jr. said at sentencing that Jenkins “ravaged and raped” the young victim in this case. Judge Copenhaver further stated that the defendant was a “danger to the community.”
The Court ordered that Jenkins’ 360-month prison term to be served concurrently with his state conviction on two counts of second degree sexual assault of two other minor children.
The FBI and the West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Jennifer Rada handled the prosecution.
This case was brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia. Since January 2012, twenty-six defendants have been sentenced to a total of more than 156 years in federal prison.
Martinsburg Woman Charged with Bankruptcy ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
MARTINSBURG, WV – A Martinsburg, West Virginia woman has been indicted by a federal grand jury for allegedly making misrepresentations in bankruptcy proceedings, and for causing others to provide false testimony, according to United States Attorney William J. Ihlenfeld, II.
SANDRA KUHNS, age 60, of Martinsburg, was named in a five-count Indictment charging her with one count of “Willfully Causing False Testimony in Bankruptcy” and four counts of “False Bankruptcy Declaration.” KUHNS faces up to 5 years in prison on each charge. This case will be prosecuted by Assistant U.S. Attorney Andrew R. Cogar and was investigated by the Federal Bureau of Investigation.
In addition, the following indictments were also returned:
MARVIN JUNIOR THOMPSON, age 58, of Burlington, West Virginia, was named in a one-count Indictment charging him with “Felon in Possession of a Firearm.” The U.S. Attorney’s Office is seeking to forfeit the Howa Model Vanguard, .300 caliber Bolt Action rifle possessed by THOMPSON, who faces up to 10 years in prison if convicted. This case will be prosecuted by Assistant U.S. Attorney Paul T. Camilletti and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
DENNIS LYNN SMITH, age 55, of Upper Tract, West Virginia, was named in a four-count Indictment charging him with “Attempted Manufacture of Methamphetamine,” “Possession of Material Used to Manufacture Methamphetamine,” “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine,” and, “Maintaining Drug-Involved Premise.” SMITH faces up to 20 years in prison. This case will be prosecuted by Assistant U.S. Attorney Andrew R. Cogar and was investigated by the West Virginia State Police.
JOSE GARCIA DELGADO, age 22, of York, Pennsylvania, was named in a one-count count Indictment charging him with entering the United States, after having been previously deported, without obtaining the express consent of the Secretary of Homeland Security or the Attorney General of the United States to reapply for admission to the United States. DELGADO faces up to 2 years in prison and deportation. The case will be prosecuted by Assistant U.S. Attorney Paul T. Camilletti and was investigated by Immigration and Customs Enforcement.All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Manhattan U.S. Attorney Charges 16 Defendants with Defrauding Federal Program for Low-Income Pregnant Women, Mothers, and Young ChildrenRead the Press Release
In Parallel State Prosecution, New York State Attorney General Charges 10 Additional Defendants
Preet Bharara, the United States Attorney for the Southern District of New York, James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), Nirav Shah, the Commissioner of the New York State Department of Health (“NYS DOH”), and Eric T. Schneiderman, the New York State Attorney General, today announced charges against 16 defendants for defrauding the federal Special Supplemental Nutrition Program for Women, Infants and Children (“WIC”) out of millions of dollars. All of the defendants, who were owners or employees of nine different grocery stores in Manhattan, Queens, and Brooklyn, New York, were charged with participating in fraud schemes from 2011 to the present in which they exchanged WIC vouchers for cash while keeping a portion of that cash for themselves. Ten of the defendants charged today are married couples or family members. Twelve defendants were arrested this morning and are expected to be presented in Manhattan federal court before U.S. Magistrate Judge Kevin Nathaniel Fox this afternoon. An additional defendant was also arrested and will be presented at a later date. Defendants QIGUANG ZHANG, HUILAN LIU, and LAN LU JIANG are still at large. In a parallel state prosecution, today the New York State Attorney General’s Office arrested 10 additional individuals who were owners and employees of stores located in Brooklyn, Queens, and Manhattan.
A civil forfeiture complaint was also filed this morning in the Southern District of New York against 19 businesses in the New York City area, real property located at 6101 Fifth Avenue, Brooklyn, New York, and 19 bank accounts. The 19 bank accounts were seized by law enforcement, as they contained proceeds of the WIC fraud described herein and were used to promote and conceal the WIC fraud.
Manhattan U.S. Attorney Preet Bharara said: “As alleged in the complaints unsealed today, the defendants defrauded a vital federal program that provides a lifeline to women, mothers, and young children in need throughout New York. This Office will continue its work to prosecute corruption and protect taxpayer-funded programs, particularly at this time of scarce government resources and where it involves vulnerable victims.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “Business owners and their employees arrested today allegedly committed a series of fraud against the American taxpayer. We will continue to work hard to ensure that social programs meet the needs of their intended beneficiaries.”
New York State Department of Health Commissioner Nirav Shah said: "New York State takes an aggressive stance against any and all fraud. This case is a testament to the effectiveness of the collaborative investigation by the State Health Department, the NYS Office of the Attorney General, the US Department of Homeland Security, and the U.S. Attorney’s Office – Southern District of New York. We are committed to protecting public funds through fraud prevention, detection and prosecution to support this critical program which serves 500,000 women, infants and children throughout New York State.”
New York State Attorney General Eric Schneiderman said: “These crimes are a betrayal of the trust of the people of New York and those who rely on the WIC program to ensure the health and well-being of their children. This joint investigation by my office in conjunction with the New York State Department of Health, the United States Department of Homeland Security and the United States Attorney’s Office for the Southern District of New York sends a clear message that fraud against New York State benefits programs will not be tolerated. The conduct charged here is particularly egregious in light of the fact that the defendants stole monies intended to provide nutrition for infants, young children and pregnant mothers. My office is dedicated to seeking justice against perpetrators who defraud the public and to preserving the integrity of important benefits programs such as WIC.”
The following allegations are based on the Complaints unsealed today in Manhattan federal court:
The “WIC” Program and the Defendants’ Scheme to Defraud
WIC is a federally funded program through which the U.S. Department of Agriculture provides grants to states for supplemental foods, health care referrals, and nutrition education for low-income pregnant women, mothers of young children, and children up to age five who are found to be at nutritional risk. Grants are administered in New York by the New York State Department of Health, Division of Nutrition (the “NYS DOH”). Participants in the WIC program receive vouchers which may only be used to purchase certain specified food items such as infant formula, milk or juice. Participants can exchange these vouchers for food items specified on the vouchers at grocery stores run by licensed vendors.
Only vendors who are licensed by the state may accept WIC vouchers. Because the purpose of the program is to provide food to low-income women, mothers, and children at nutritional risk, WIC vendors are prohibited from exchanging WIC vouchers for cash, but instead must provide specified food items in exchange for WIC vouchers.
The 16 defendants named in the three Complaints unsealed today are the owners, operators, or employees of nine grocery stores located in Manhattan, Queens, and Brooklyn, New York. The schemes to defraud charged in these Complaints involve store owners and employees purchasing WIC vouchers for cash—typically paying 80-85 percent of the face value of the WIC vouchers—and then redeeming those WIC vouchers from the NYS DOH for their full face value. Grocery stores involved in these schemes accepted WIC vouchers regardless of whether they were licensed by the state. In the aggregate, the corrupt owners, operators, and employees of these nine grocery stores have redeemed approximately $30 million worth of WIC vouchers.
The “Six-Store Network” Complaint
TUNG CHA YO, SUNG MAN CHAN, YING ZHENG, QIGUANG ZHANG, FENG ZHENG, SAU WA YEUNG, SAU CHAN, ZHAOJUN LIN, HUILAN LIU, and YU WANG were the owners, operators, or employees of six grocery stores located in Manhattan, Brooklyn, and Queens, New York, only two of which had WIC licenses that were active and in use in 2013. YO and SAU CHAN are married to one another. YEUNG is the mother of SAU CHAN and SUNG MAN CHAN. SUNG MAN CHAN is married to FENG ZHENG, whose sister is YING ZHENG.
Owners or employees at each of those six grocery stores purchased WIC vouchers for cash from confidential informants on numerous occasions between March and November 2013. All of those checks were funneled to one of the stores that had a WIC license, which redeemed them, received payment from the WIC program, and then distributed the proceeds to the other members of this network of stores.
Since 2009, these defendants have opened and closed grocery stores in different names at the same locations. In many instances, the defendants obtained WIC licenses, redeemed significant volumes of WIC checks using those licenses, and then terminated those licenses only to use a different store to obtain a WIC license and repeat this pattern. Based on figures obtained from the NYS DOH, it is estimated that these six stores and their predecessors redeemed more than $19 million from the WIC program since 2009.
All of these defendants are charged with conspiracy to commit theft of government funds, which carries a maximum term of five years in prison. TUNG CHA YO, SAU WA YEUNG, and ZHAOJUN LIN are charged with theft of government funds, which carries a maximum term of 10 years in prison. TUNG CHA YO, SUNG MAN CHAN, YING ZHENG, and QIGUANG ZHANG are also charged with conspiracy to commit money laundering and money laundering, which both carry a maximum term of 20 years in prison.
The “Two-Store” Network Complaint
GIGI DONG, SHUMIN DONG, LAN LU JIANG, and ANIY LI were the owners, operators, or employees of two grocery stores located in Brooklyn, one of which had a WIC license that was active and in use after March 2013. SHUMIN DONG and GIGI DONG are married to one another. Owners or employees at both of those stores purchased WIC vouchers for cash from confidential informants on numerous occasions between March and November 2013. All of those checks were funneled to the store that had a WIC license, which redeemed them and received payment from the WIC program.
These defendants engaged in a fraudulent scheme similar to the scheme described in the first Complaint, only this time alternating their WIC license between stores at two locations. Based on figures obtained from the NYS DOH, it is estimated that these two stores and their predecessors redeemed more than $9 million from the WIC program since 2009.
All of these defendants are charged with conspiracy to commit theft of government funds, which carries a maximum term of five years in prison.
B & B Grocery Commits WIC Fraud
YONG LIN and QIAO FANG ZHENG operate a grocery store located in Brooklyn, New York. LIN and ZHENG are married to one another. LIN obtained a WIC license in February 2010, and over $1.3 million worth of WIC vouchers were redeemed through that store until the license was terminated in February 2012. ZHENG then obtained a new WIC license in the name of a different store at the same location, and redeemed over $540,000 worth of WIC vouchers. ZHENG purchased WIC vouchers for cash from confidential informants on numerous occasions between April and September 2013.
Both of these defendants are charged with conspiracy to commit theft of government funds, which carries a maximum term of five years in prison.
A chart listing the age, place of residence, and charges for each of the 16 charged defendants is attached.
Manhattan U.S. Attorney Bharara praised the investigative work of ICE HSI, the United States Department of Agriculture, Office of the Inspector General, the New York State Department of Health, Division of Nutrition, as well as the New York State Attorney General’s Office.
The Office’s General Crimes Unit is handling the case. Special Assistant U.S. Attorney Jason Wong and Assistant U.S. Attorneys Patrick Egan and Richard Cooper are in charge of the prosecution. Assistant U.S. Attorney Carolina A. Fornos of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
The charges contained in the Complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
WIC Fraud Complaints
WIC Fraud Civil Forfeiture ComplaintManhattan U.S. Attorney Announces Arrests of Five Defendants for Conspiring to Import 100 Kilograms of North Korean Methamphetamine into the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, Administrator of the United States Drug Enforcement Administration (“DEA”), today announced the arrests of five defendants – SCOTT STAMMERS and PHILIP SHACKELS, citizens of the United Kingdom; YE TIONG TAN LIM, a citizen of the People’s Republic of China; KELLY ALLAN REYES PERALTA, a citizen of the Philippines; and ALEXANDER LNU, a/k/a “Alexander Checov,” a/k/a “Alexander Semencov,” a resident of Thailand (“ALEXANDER”). STAMMERS, SHACKELS, LIM, REYES PERALTA, and ALEXANDER are each charged with conspiring to import 100 kilograms of North Korean-produced methamphetamine into the United States.
Each of the defendants was arrested in Thailand in September. The five defendants were extradited from Thailand, arrived in the Southern District of New York yesterday evening, and are expected to be presented in U.S. Magistrate Court later today.
Manhattan U.S. Attorney Preet Bharara said: “Methamphetamine is a dangerous, potentially deadly drug, whatever its origin. If it ends up in our neighborhoods, the threat it poses to public health is grave whether it is produced in New York, elsewhere in the U.S., or in North Korea. This investigation shows our determination to close a potential floodgate of supply.”
DEA Administrator Michele M. Leonhart said: “Like many international criminal networks, these drug traffickers have no respect for borders, and no regard for either the rule of law or who they harm as a result of their criminal endeavors. This investigation continued to highlight the emergence of North Korea as a significant source of methamphetamine in the global drug trade. I wish to thank the Thai Government for their outstanding efforts and partnership in completely dismantling this sophisticated and dangerous international criminal enterprise.”
According to the allegations in the Indictment against STAMMERS, SHACKELS, LIM, REYES PERALTA, and ALEXANDER:
In 2012, LIM and REYES PERALTA – members of a Hong Kong-based criminal organization – sold over 30 kilograms of methamphetamine that had been produced in North Korea. STAMMERS and SHACKELS were responsible for storing the methamphetamine after it had been sold by LIM and REYES PERALTA. This North Korean methamphetamine was later seized by law enforcement agents in Thailand and in the Philippines. The North Korean methamphetamine tested at more than 99% pure.
In 2013, LIM and REYES PERALTA again agreed to provide North Korean methamphetamine, this time agreeing to supply 100 kilograms of the methamphetamine to confidential sources working at the direction of the DEA (the “CSes”) for importation to the United States. As LIM explained, his criminal organization is the only one currently able to obtain methamphetamine from North Korea: “Because before, there were eight [other organizations]. But now only us, we have the NK product. . . . [I]t’s only us who can get from NK.” LIM further explained that, because of recent international tensions, the North Korean government had destroyed some methamphetamine labs, leaving behind only the labs of LIM’s organization: “And all the, the NK government already burned all the labs. Only our labs are not closed. . . . To show Americans that they [the North Korean government] are not selling it any more, they burned it. Then they transfer to another base.” LIM explained that his organization had stockpiled one ton of North Korean methamphetamine in the Philippines for storage, “[b]ecause we already anticipated this thing would happen . . . [whereby] we cannot bring out our goods right now.”
As a prelude to the 2013 100-kilogram methamphetamine deal described above, LIM and REYES PERALTA arranged to have a sample of the methamphetamine delivered to SHACKLES, who sent that sample (along with a second sample from another supplier) to an address from which the methamphetamine samples would be sent to the United States. These two methamphetamine samples tested at more than 98% and more than 96% pure.
LIM and REYES PERALTA agreed to deliver the 100 kilograms of North Korean methamphetamine in Thailand, from where they understood it would be shipped to the United States by boat. LIM and REYES PERALTA arranged for a “dry run,” sending a shipping container of tea leaves from the Philippines to Thailand in order to test delivery channels that would later be used for the shipment of methamphetamine.
STAMMERS, SHACKELS, and ALEXANDER agreed to provide security, transportation, and storage for the 100 kilograms of methamphetamine once it arrived in Thailand. ALEXANDER, the Sergeant-at-Arms of the Outlaw Motorcycle Club (“OMC”) in Thailand, was to be the “ground commander,” supervising an armed crew of OMC members providing security for the methamphetamine. STAMMERS and SHACKELS were to arrange for the 100 kilograms to be taken to a warehouse, counted, re-packaged, and delivered to a marina in Thailand, to be transferred to a boat that would deliver the methamphetamine to the United States.
In September 2013, LIM and REYES PERALTA traveled to Thailand in order to receive payment for the 100 kilogram methamphetamine deal. STAMMERS, LIM, PERALTA REYES, SHACKELS, and ALEXANDER were each arrested by Thai law enforcement on September 25, 2013.
STAMMERS, 44, LIM, 53, REYES PERALTA, 41, SHACKELS, 30, and ALEXANDER, 43, have each been charged with conspiracy to import methamphetamine into the United States. The case is assigned to United States District Judge Andrew L. Carter, Jr.
If convicted, each of the defendants faces a mandatory minimum sentence of ten years’ imprisonment and a maximum term of life imprisonment.
Mr. Bharara praised the outstanding work of the Special Operations Division of the DEA. Mr. Bharara also thanked DEA’s Bangkok, Manila, Ghana, Pretoria, Bucharest, Nassau, and Copenhagen Country Offices; the Thai Police Narcotics Suppression Bureau and Crime Suppression Division; the Royal Thai Immigration Bureau; the Royal Thai Attorney General's Office; the Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General's Office; the Romanian National Police; Interpol; and the U.S. Department of Justice Office of International Affairs
This prosecution is being handled by the Office's Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard, Aimee Hector and Anna M. Skotko are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
US v Stammers et al S8 13 Cr 579 Indictment
Man Who Arranged Sham Marriages Between Nigerians and U.S. Citizens Found Guilty of Immigration FraudRead the Press Release
LOS ANGELES – A Los Angeles man was found guilty today of six felony immigration-related offenses for illegally arranging sham marriages that allowed Nigerian nationals to fraudulently obtain legal permanent residency in the United States.
Alake “Terry” Ilegbameh, 46, a resident of the Baldwin Hills district of Los Angeles, was found guilty of six counts of conspiracy to violate immigration laws.
Ilegbameh was convicted by a federal jury following a six-day trial before United States District Judge Michael W. Fitzgerald, who is scheduled to sentence the defendant on February 24. At sentencing, Ilegbameh faces a statutory maximum penalty of 30 years in federal prison.
Prosecutors proved at trial that Ilegbameh arranged sham marriages for the purpose of obtaining permanent resident status for six Nigerian immigrants. Ilegbameh recruited American citizens who agreed to marry an African immigrant for money – typically offering the U.S. citizens $1,000 or more – and Ilegbameh actively participated in schemes to make the resulting marriages appear legitimate to immigration officials.
As part of the scheme, Ilegbameh instructed the Nigerians and the Americans in the sham marriages how to make their relationships appear genuine by opening joint bank accounts or other accounts, obtaining identification with matching addresses, and taking photographs together. Ilegbameh made arrangements for the couples to see immigrations attorneys, who would file visa petitions and applications for adjustment of status containing false statements to U.S. Citizenship and Immigration Services (USCIS). After Ilegbameh concluded that federal agents were conducting an investigation, he instructed some of the Americans involved in the marriages to lie to investigators and he threatened them that they would go to jail if they withdrew from the sham marriages.
“Hollywood likes to glamorize marriage fraud, but as this defendant discovered, in real life these schemes don’t have happy endings,” said Claude Arnold, special agent in charge for Homeland Security Investigations (HSI) Los Angeles. “Immigration benefit fraud is a serious crime. Not only do these activities undermine the integrity of our nation’s legal immigration system, they also pose a significant security vulnerability.”
The investigation into Ilegbameh’s activities was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Release No. 13-134
Man Charged with Armed Robberies in Belleville and East St. LouisRead the Press Release
Cases Are Part of United States Attorney’s Initiative Against Armed Robberies
A federal grand jury sitting in East St. Louis has indicted Timothy R. Collier, 47, with two counts of Interference with Commerce by Robbery, which is a violation of the Hobbs Act, and two counts of Use of a Firearm During a Crime of Violence, in connection with the armed robbery of East St. Louis Jewelry and Loan that occurred on April 25, 2013, and the armed robbery that occurred at Arena Liquor in Belleville on July 12, 2013, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today.
The offenses in the indictment allege that on April 25, 2013, Collier took numerous items of jewelry and a firearm from the presence of the owner of East St. Louis Jewelry and Loan, by means of actual and threatened force, by brandishing and discharging a firearm and shooting the owner of East St. Louis Jewelry and Loan in the chest and head. The indictment also alleges that on July 12, 2013, Collier took United States Currency from the presence of an employee of Arena Liquor, by means of actual and threatened force, by brandishing a firearm.
If convicted of a violation of the Hobbs Act, Collier faces a term in prison of up to 20 years on each count, a fine of up to $250,000, or both, and a term of supervised release of up to 3 years. If convicted of the offense of Use of a Firearm During a Crime of Violence for the armed robbery of the East St. Louis Jewelry and Loan, Collier faces a minimum term in prison of 10 years up to a maximum term of Life, consecutive to, meaning in addition to, any term of imprisonment imposed on the Hobbs Act violations, as well as a fine of up to $250,000 and a term of supervised release of up to 5 years. Additionally, if convicted of a second offense of Use of a Firearm During a Crime of Violence for the armed robbery of Arena Liquor, Collier faces a term in prison of 25 years up to a maximum term of life in prison, again, consecutive, that is, in addition to the term of imprisonment imposed on the counts of conviction.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case is being investigated by the Illinois State Police, the Federal Bureau of Investigation, the Belleville Police Department, and the East St. Louis Police Department as part of the Metro East Armed Robbery Initiative. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Long Island Nurse Practitioner and Brooklyn Podiatrist Plead Guilty to Illegally Distributing OxycodoneRead the Press Release
Rools Deslouches, a Brentwood, New York, nurse practitioner, pled guilty today in the United States District Court for the Eastern District of New York to illegally distributing the highly addictive painkiller oxycodone to customers, whom the defendant knew were drug dealers and addicts, without performing any meaningful medical examination. When sentenced, Deslouches faces up to 20 years in prison and a $1,000,000 fine. Deslouches also agreed to forfeit more than $150,000 in illegal proceeds from his criminal activity.
Defendant Owusu Sold Oxycodone Prescriptions
Written in the Names of Individuals Never ExaminedIn a separate case, Stephen Owusu, a Brooklyn, New York, podiatrist, pled guilty today in the United States District Court for the Eastern District of New York to the illegal distribution of oxycodone to individuals who were not his patients in exchange for cash. When sentenced, Owusu faces up to 20 years in prison and a $1,000,000 fine. Owusu also agreed to surrender his DEA registration number, which had permitted him to issue controlled substance prescriptions.
The guilty pleas were announced by Loretta E. Lynch, the United States Attorney for the Eastern District of New York, and Brian R. Crowell, Special Agent in Charge of the United States Drug Enforcement Administration (DEA), New York Division.
“Instead of providing needed medical services to their communities, Deslouches and Owusu fueled the prescription drug crisis that has swept across our district and our nation. On the defendants’ watch, drug dealers and drug addicts found easy access to oxycodone pills,” stated Ms. Lynch. “Today’s convictions should serve as a warning to those who would violate their oath as medical professionals to do no harm: if you illegally distribute prescription drugs, you will be held accountable.” Ms. Lynch extended her grateful appreciation to the DEA, Suffolk County Police Department, and the New York State Police for their assistance in this case.
“Medical professionals who traffic narcotics are significantly responsible for the pain pill and heroin addiction we see in NY. These traffickers are one of our top priorities,” stated DEA Special Agent in Charge Crowell. “Lines of individuals filled the waiting room outside of Deslouches’ office to pay between $200 to $400 per visit to leave with a prescription; while Owusu sold over 450 prescriptions for oxycodone for $300 per prescription. Neither Deslouches nor Owusu practiced medicine, but they did practice in drug dealing. Law enforcement continues to focus our resources on those who divert prescription medication for abuse and profit.” SAC Crowell commends the US Attorney’s Office Eastern District of New York, DEA Long Island District Office, and TDS, which includes agents and officers from the DEA, Nassau County Police Department, New York State Police, Rockville Centre PD, and Port Washington PD.
According to court filings, the investigation revealed that Deslouches ran a cash-only business, where his customers paid him between $200 and $400 for oxycodone prescriptions. Further, the investigation determined that between October 2011 and February 2012, Deslouches issued 4,349 oxycodone prescriptions for a total of 422,107 pills to over 288 individuals. Approximately one-third of those individuals had criminal records for narcotics-related offenses.
According to court filings, the investigation revealed that between March 2009 and July 2011, Owusu sold over 450 prescriptions for oxycodone to individuals who were not his patients, for $300 a prescription. Those pills were then later sold to narcotics users in street level narcotics transactions.
Deslouches and Owusu’s convictions resulted from the Eastern District of New York’s Prescription Drug Initiative (Initiative), which is a joint effort led by the United States Attorney’s Office for the Eastern District of New York, the DEA, and the five District Attorneys in Kings, Nassau, Queens, Richmond, and Suffolk Counties, working in conjunction with the New York City Police Department and the Nassau and Suffolk County Police Departments, as well as the Department of Health and Human Services, the Internal Revenue Service, New York/New Jersey HIDTA, the New York State Department of Health, and the New York State Medicaid Inspector General. The Initiative is a broad and comprehensive approach to the epidemic of prescription drug trafficking and abuse, involving not only criminal investigation and prosecution at the federal, state, and local level, but also the targeted use of civil law enforcement, regulatory action, and community outreach. The Initiative has expanded information-sharing among federal and state enforcement agencies to better identify and target suspected traffickers, and ensure greater use of criminal, civil, forfeiture, injunctive, and other tools. Since the inception of the Initiative, the United States Attorney’s Office for the Eastern District of New York has prosecuted approximately 68 defendants on charges relating to the distribution of oxycodone and other prescription drugs. Among the defendants prosecuted, are 12 health care professionals, including medical doctors, pharmacists, a nurse practitioner, and a podiatrist, and seven of these defendants have pled guilty or been convicted after trial and the others are pending trial.
Deslouches’s plea was entered before United States District Judge Sandra J. Feuerstein, and Owusu’s plea was entered before United States Magistrate Judge William D. Wall, at the United States Courthouse in Central Islip, New York.
Deslouches’s case is being prosecuted by Assistant United States Attorney Michael P. Canty, and Owusu’s case is being prosecuted by Assistant United States Attorney Lara Treinis Gatz.
The Defendants:
ROOLS DESLOUCHES
Brentwood, New York
Age: 42STEPHEN OWUSU
Valley Stream, New York
Age: 57John Ryan Hugs Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on November 20, 2013, before U.S. District Judge Donald W. Molloy, JOHN RYAN HUGS, a 33-year-old resident of St. Xavier, was sentenced to a term of:
Probation: 4 years
Special Assessment: $10
HUGS was sentenced after a federal district court trial in which he was found guilty of assault by beating, striking, or wounding. Assistant U.S. Attorney Lori Harper Suek prosecuted the case for the United States.
The investigation was conducted by the Federal Bureau of Investigation.
Individual Indicted for Hobbs Act and CarjackingRead the Press Release
SAN JUAN, Puerto Rico — Today, William Santiago-Reyes was arrested for carjacking, possession of a firearm during and in relation to a crime of violence, and two Hobbs Act violations, one which resulted in murder, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. William Santiago-Reyes was indicted on November 5, 2013.
On or about May 5, 2012, the defendant did unlawfully take approximately $18,970.07 from the Plaza Loíza Supermarket, located in Carolina, PR, from the person and presence of employees and representatives of Plaza Loíza, by threatening the employees and representative victims with a firearm, that is a Colt revolver 38 caliber, and shooting and killing a security guard referred to as NMB, who had been contracted to pick up the money that was the object of the robbery at Plaza Loíza, and safely deliver it to its destination.
According to the information contained in the indictment that was unsealed today, on May 3, 2012, Santiago-Reyes, with the intent to cause death or serious bodily harm, did intentionally take a motor vehicle from the victim TRR, that is, a 2003 Mitsubishi Lancer, which had been transported, shipped or received in interstate commerce, by force, violence and intimidation with a gray revolver of unknown make and caliber.
On May 4, 2012, Santiago-Reyes did unlawfully take approximately $397.00 from Island Finance, located in Trujillo Alto by threatening the employees at gunpoint.
“This defendant carried out two Hobbs Act violations, one which resulted in the death of an innocent security guard, and a carjacking against a defenseless victim,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend our law enforcement partners who tirelessly investigated this matter, for their persistence and dedication to the cause of justice. This individual will no longer have the ability to terrorize the law-abiding citizens of Puerto Rico and will be prosecuted to the full extent of the law.”
Hueytown Man Sentenced to 18 Years in Prison for Armed Pharmacy RobberiesRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Hueytown man to 18 years in prison for a series of armed pharmacy robberies in 2011 and 2012, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Abdul K. Kallon sentenced ANTHONY YOUNG, 22, in accordance with a binding plea agreement Young entered with the government. The agreement specified an 18-year prison sentence for Young's pleas of guilty to three pharmacy robberies in the Birmingham metro area and to brandishing a firearm during one of the robberies. Cash and controlled substances, including narcotic painkillers, were taken in all three robberies.
Brandishing a firearm during a crime of violence carries a minimum sentence of seven years in prison and a maximum of life, and the sentence must be served after completion of any other sentence imposed for the crime. Judge Kallon sentenced Young to 11 years in prison for the pharmacy robberies, followed by seven years for brandishing the gun during a robbery.
Young pleaded guilty in August to robbing Moore's Pharmacy on Ensley Avenue in Birmingham on July 30, 2011, Campbell's Pharmacy on Veterans Memorial Drive in Adamsville on Aug. 27, 2011, and Helena Hometown Pharmacy on Alabama Highway 17 in Helena on March 13, 2012. He admitted to brandishing a gun during the Helena robbery.
Two co-defendants in the case, Birmingham cousins Willie and Sterling Edwards, pleaded guilty earlier this year to their roles in the pharmacy robberies. Willie Edwards, 40, pleaded guilty to robbing Moore's Pharmacy and to brandishing a gun during the robbery. Judge Kallon sentenced him in April to 20 years and one month in prison.
Sterling Edwards, 21, pleaded guilty to the Helena Hometown pharmacy robbery and to a second robbery at Campbell's pharmacy, on Oct. 13, 2011. He also pleaded guilty to brandishing a gun during the Helena robbery. Judge Kallon sentenced Sterling Edwards in July to 11 years and nine months in prison.
The robbers in all four crimes entered the pharmacies and demanded the narcotics Lortab or Oxycontin, according to court documents.
The FBI and Birmingham, Adamsville and Helena police departments investigated the case. Assistant U.S. Attorneys Joseph P. Montminy and Robin B. Mark prosecuted the case.
Hogsett Announces Federal Indictment of Spencer County School OfficialRead the Press Release
EVANSVILLE – U.S. Attorney Joseph H. Hogsett announced today the filing of federal charges against Melissa Isaacs, age 49, of Spencer County. According to a four count indictment returned by a grand jury this week, Isaacs allegedly used her position with the North Spencer County School Corporation to engage in a four year scheme to defraud Hoosier taxpayers of approximately $63,000 in school funds.
“When Hoosiers steal from Hoosiers, we all lose – no matter if the theft takes place in a back alley or a back office,” Hogsett said. “That is why, together with our law enforcement partners, we are committed to doing all we can to hold accountable those who seek to enrich themselves by embracing a culture of corruption.”
The indictment alleges that Isaacs served as the Extracurricular Treasurer for the North Spencer County School Corporation from June 5, 2007, through February 25, 2013. During that period of time, the defendant collected and distributed funds for a variety of school programs, including school lunches, textbook rental fees, the athletic fund, as well as funds for other extracurricular programs operating within the school system.
Isaacs allegedly used her position to embezzle, steal, and intentionally misapply funds from these programs from July 2009 until February of this year. This included the alleged theft of textbook rental fees, extracurricular funds, school lunch fees, as well as fraudulent claims for compensation. The indictment provides a detailed breakdown of the alleged thefts by year, which include: 2009-10 School Year: $19,368.91
2010-11 School Year: $13,703.74
2011-12 School Year: $12,542.37
2012-13 School Year: $18,241.62Hogsett said this case was the result of outstanding law enforcement work by the Federal Bureau of Investigation, the Indiana State Board of Accounts, as well as the Spencer County Prosecutor’s Office. All of these agencies are partners in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Hoosiers with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.
According to Senior Litigation Counsel Bradley A. Blackington, who is prosecuting the case for the government, Isaacs could face up to ten years in federal prison on each count if convicted, as well as significant fines and federally-supervised release at the end of her prison term.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, returned the following indictments yesterday. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Crystal man charged with robbing Roseville bank
Jake Charles Cogswell, age 30, of Crystal, was charged with one count of armed bank robbery and one count of brandishing a firearm in furtherance of a crime of violence. If convicted, Cogswell faces a potential maximum 25 years in prison on the bank robbery count. In addition, he faces a mandatory consecutive seven years on the brandishing a firearm count. This case is the result of an investigation by the Federal Bureau of Investigation and the Roseville Police Department. It is being prosecuted by Assistant United States Attorney Nathan P. Petterson.Gadsden Man Sentenced to 17 1/2 Years in Prison for 2008 Bank RobberyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Gadsden man to 17 years and six months in prison for his role in the 2008 robbery of the Wachovia Bank in Lenlock, Ala., announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A federal jury in July convicted MARCUS TYSHUN PORTER, 33, of joining in a conspiracy and acting as a lookout during the July 16, 2008, Wachovia Bank robbery. U.S. District Judge Abdul K. Kallon sentenced Porter to prison and ordered him to pay $277,773 restitution to the bank.
Two of Porter’s co-conspirators, WILLIS LEACH, 32, of Gadsden, and JESSE KEY, 43, of Birmingham, pleaded guilty to robbery charges in June. Key also pleaded guilty to carjacking. A third man, GABRIEL RICE, 25, of Gadsden, was charged and pleaded guilty to the robbery and carjacking in 2008.
Immediately after robbing the bank, Key and Rice forced two women at gunpoint to drive them back to Gadsden, where they met Porter and split proceeds of the robbery.
In October, Judge Kallon sentenced Key to 14 years, six months in prison, and Leach to five years and 10 months in prison. In 2009, U.S. District Judge Sharon Lovelace Blackburn sentenced Rice to 17 years in prison.
“The last of the men responsible for these violent crimes is finally on his way to prison," Vance said. “This case is part of a larger investigation involving a string of bank robberies occurring in Gadsden and the surrounding area since 2007. The FBI and the entire Etowah County law enforcement community have continued to work over the past five years to solve these crimes,” she said.
The FBI investigated the case, and Assistant U.S. Attorney L. James Weil Jr. and Special Assistant U.S. Attorney E. Wilson Hunter prosecuted it.Former Union County, N.J., Vendor Admits to Paying Bribes and Defrauding County of More Than $120,000Read the Press Release
NEWARK, N.J. – The owner of a company that sold maintenance and cleaning supplies today admitted paying bribes to a Union County official and to defrauding the county of more than $120,000 in connection with the purchases, U.S. Attorney Paul J. Fishman announced.
Richard Greer, 54, of Marlboro, N.J., pleaded guilty to an information charging one count of conspiracy to commit mail fraud. Greer entered his guilty plea before U.S. District Judge William H. Walls in Newark federal court.
According to documents in this case and statements made in court:
From 2006 to 2011, Greer owned and operated Positive Attitude LLC, a commercial vendor that sold, among other products, maintenance and cleaning supplies to Union County. Aniello Palmieri, 57, of Toms River, N.J., was the director of the Division of Facilities Management for Union County, and oversaw the purchasing of building materials, tools, hardware, janitorial supplies and other supplies used by the various bureaus of the division.
Greer made cash bribe payments to Palmieri of $500 per month in exchange for ensuring continued Union County business for Positive Attitude. Greer generated fictitious invoices to Union County for many industrial cleaning products to cover the monies paid to Palmieri, often including a profit for himself above the kickback he paid to Palmieri. Positive Attitude received $120,000 to $200,000 in fraudulent proceeds from the fictitious invoices. Greer used the mails to facilitate this scheme by having Union County send the checks in payment for these purchases to his company in Marlboro.
The conspiracy to commit mail fraud charge to which Greer pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. The plea agreement requires that Greer pay restitution of $185,000. Greer is scheduled to be sentenced on March 11, 2014.
On Oct. 2, 2013, Palmieri and Frank Donald Vicendes III, 48, of Berkeley Heights, a Union County vendor, also admitted to engaging in a similar bribery scheme and to defrauding Union County of more than $120,000 in connection with sale of supplies to Union County. Palmieri and Vicendes entered their guilty pleas to mail fraud before Judge Walls in Newark federal court. Palmieri and Vicendes face the same penalties as Greer and are scheduled to be sentenced on Jan. 8, 2014, and Jan. 7, 2014, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and the N.J. State Police, under the direction of Col. Joseph R. Fuentes, superintendent of the state police, for the investigation leading to the guilty pleas. He also thanked the N.J. Attorney General’s Office under the direction of Acting Attorney General John Hoffman and Elie Honig, director of the N.J. Division of Criminal Justice, for their work in this investigation.
The government is represented by Assistant U.S. Attorney Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark, and Special Assistant U.S. Attorney Michael A. Monahan, the deputy chief of the Corruption Bureau, Division of Criminal Justice, in the N.J. Office of the Attorney General.
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Defense counsel: Marc A. Agnifilo Esq., New York
Greer Information
Palmieri Information
Vicendes InformationFormer Teller at Taupa Lithuanian Credit Union Charged for His Role in CollapseRead the Press Release
A former employee of Taupa Lithuanian Credit Union was criminally charged for his role in a conspiracy that led to the Cleveland institution’s collapse earlier this year, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Michael Ruksenas, 33, of Naples, Florida, was charged via criminal information with one count of conspiracy to commit theft or embezzlement from a credit union. His role in the conspiracy resulted in a loss to Taupa of more than $480,000, according to the charges
“This defendant is part of a group that took advantage of the trust of hundreds of people for their own personal gain,” Dettelbach said.
“Michael Ruksenas is accused of being a willful beneficiary of a financial scam being committed on members of the Taupa Lithuanian Credit Union,” Anthony said. “The FBI will continue efforts to see that fraudsters such as Mr. Ruksenas are brought to justice.”
From 2007 through this year, Ruksenas, Alex Spirikaitis (not charged herein) and others engaged in a conspiracy to commit theft or embezzlement from the credit union, according to the information.
Ruksenas worked as a teller from 1999 through 2006 at Taupa, which was located at 767 East 185th Street in Cleveland. Spirikaitis routinely reviewed the daily share draft report, circled names of certain members listed on the report with NSF checks, and instructed Ruksenas in his capacity as teller to honor and pay the NSF checks Spirikaitis had circled, according to the information.
After Ruksenas learned Spirikaitis honored overdrafts from certain accounts, he withdrew funds from his two accounts. Spirikaitis then transferred funds from Taupa directly into Ruksenas’ personal accounts to cover Ruksenas’ overdrafts, according to the information.
Also, Ruksenas worked as a home health aide for one of Spirikaitis’ relatives from 2007 through 2009, during which time Spirikaitis used credit union funds to purchase Ruksenas a Jeep Cherokee, according to the information.
As a result of the conspiracy, Taupa and the National Credit Union Association (which insures credit unions) lost approximately $481,502, according to the information.
On July 12, 2013, the NCUA and the Ohio Department of Commerce took possession of Taupa and placed it into receivership due to its insolvency. Taupa had about 1,150 members and assets of approximately $24 million, according to the information.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Oil and Gas Company Executive Pleads Guilty to $700,000 Embezzlement and Tax CrimesRead the Press Release
TULSA, Okla. — A former oil and gas company manager has pleaded guilty to wire fraud involving the embezzlement of $693,300 and for tax crimes, announced United States Attorney Danny C. Williams, Sr. for the Northern District of Oklahoma.
James Rhea Cooley, 45, of Tulsa, was charged with one count of wire fraud and three counts of willfully making and subscribing a false federal income tax return. Cooley worked as the Regional Human Resources Manager at Newfield Exploration Mid-Continent Inc. where he was authorized to approve invoices for services provided to the company.
According to court documents filed in the case, from August 2008 to January 2011, Cooley devised and executed a scheme to defraud his then-employer. In 2008, he created the consulting company, Total HR Service and Consulting, created a website, and opened a bank account. He would then falsify invoices for services that had not been performed, and deposit the payment check from Newfield Exploration Mid-Continent Inc. into the nonexistent consulting company’s bank account. Cooley would then spend the embezzled funds for personal expenses.
Cooley also agreed to a criminal forfeiture money judgment in the amount of $693,300.
The case was investigated by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Charles M. McLoughlin and Catherine Depew on behalf of the United States.
Sentencing has been set for February 25, 2014 before U.S. District Judge James H. Payne.
Former Mayoral and Congressional Candidate Sentenced to 15 Years in Prison in BP Oil Fraud SchemeRead the Press Release
A 46-year-old Livonia man was sentenced today to 15 years in prison on three counts of mail fraud, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Jeffrey Frost, Special Agent in Charge of Secret Service, Detroit Field Office.
U.S. District Judge Stephen J. Murphy, III, imposed sentence on Duane Montgomery, who ran for Mayor of Detroit in 2009, and for a congressional seat in 2010. Montgomery was convicted by a federal jury in Detroit on August 5, 2013.
At the trial, which began on July 16, 2013, the jury heard evidence that Montgomery submitted a series of false claims to British Petroleum, the Gulf Coast Claims Facility (funded by BP), and the National Pollution Fund Center, administered by the U.S. Coast Guard, seeking compensation for purported damages to a boat he claimed to have been operating in the Gulf of Mexico at the time of the Deepwater Horizon oil spill. The claims centered around his assertion that tar balls resulting from the oil spill destroyed his engines while he was engaged in pollution monitoring for the corporation he owned, Engineering Technological Researchers, Inc., and that the company lost hundreds of thousands of dollars in revenue as a result. Montgomery’s last claim to the National Pollution Fund Center sought more than $2.5 million for denying his previous claims of $861,512. Before Montgomery’s final claim, the Gulf Coast Claims Facility had issued an emergency interim payment to the him in the amount of $43,900.
In imposing sentence, the judge cited Montgomery’s long history of using the judicial system as a tool of harassment, his prior criminal history, his ownership and possession of various weapons, including body armor and silencers, even after a prior felony conviction, and his elaborate and nearly constant evasion of the truth, not only to the various funds from which he sought money, but also to the Court and jury throughout the prosecution of this case.
United States Attorney Barbara L. McQuade said, “This defendant’s scheme to defraud sought to exploit private and public funds designated for the victims of the worst ecological disaster in our nation’s history.”
McQuade commended the United States Secret Service Detroit Field Office and the Department of Homeland Security’s Office of Inspector General for the investigation leading to this successful prosecution.
The defendant has been incarcerated since the Court revoked his bond after the jury’s guilty verdict in August of 2013.
Former Labor Union President Sentenced to 30 Months in Federal Prison for Wire FraudRead the Press Release
PANAMA CITY, FLORIDA – Danny L. Hubbard, 49, of Panama City, was sentenced today to serve 30 months in federal prison for committing wire fraud by stealing approximately $91,600 from the American Federation of Government Employees (AFGE) Local 1380.
AFGE Local 1380 is a labor union that represents federal employees who work at the Naval Support Activity in Panama City, Florida. Hubbard became the acting president of AFGE Local 1380 in or around November 2006 and served as the president through 2008. While president, Hubbard wrote checks to himself or to cash, a local convenience store, and Boomtown Casino in Biloxi, Mississippi. Additionally, he conducted other numerous financial transactions and withdrew $6,650 from the union’s savings account. The funds disbursed as a result of Hubbard’s actions were not used for AFGE Local 1380’s official business or for the union. He did not obtain approval from AFGE Local 1380’s executive board or membership before disbursing the funds to himself, cash, or other third-party entities. He was ordered to pay restitution in the amount of $91,600 as a result of his scheme to defraud.Hubbard was also sentenced to serve a 3-year term of supervised release, and ordered to pay a $2,400 special monetary assessments.
This conviction results from an investigation by agents of the U.S. Department of Labor and was prosecuted by Assistant United States Attorney Kathryn Risinger.Former Jefferson Parish Sheriff’s Deputy Pleads Guilty to Civil Rights, Bank Fraud and Aggravated Identity Theft ViolationsRead the Press Release
Former Jefferson Parish Sheriff’s Deputy Mark Hebert, 48, pled guilty today to one civil rights violation, five bank fraud violations and one aggravated identity theft violation, announced Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division, U.S. Attorney Kenneth A. Polite Jr. for the Eastern District of Louisiana, Special Agent in Charge Michael J. Anderson of the FBI New Orleans Field Office and Sheriff Newell Normand from the Jefferson Parish Sheriff’s Office.
According to the plea agreement and other documents, Hebert engaged in a scheme to defraud J.P. Morgan Chase Bank (Chase Bank) from Aug. 2, 2007 through Nov. 21, 2007. The scheme began when Hebert, in his capacity as a Jefferson Parish Sheriff’s Deputy, responded to an automobile accident involving Albert Bloch and stole Bloch’s VISA debit card, as well as other items. While Bloch was hospitalized following the accident, Hebert used that debit card to make unauthorized purchases of merchandise, including two Global Positioning System units, and to withdraw funds from Bloch’s Chase Bank account via Automatic Teller Machines (ATMs). After Chase Bank cancelled the debit card due to Bloch filing a dispute with the bank, Hebert continued his scheme to defraud by negotiating and attempting to negotiate forged checks drawn from Bloch’s account. Hebert then obtained the replacement debit card sent to Bloch and used that card to make further unauthorized transactions at Chase Bank ATMs. Bloch has not been seen since 2007.
By pleading guilty, Hebert admitted that he violated Bloch’s civil rights when he responded in his official capacity to Bloch’s automobile accident and unreasonably seized and converted Bloch’s property, including funds that Bloch had on deposit with Chase Bank. Hebert also admitted that on at least five occasions he executed his bank fraud scheme against Chase Bank by unlawfully using Bloch’s original ATM card, replacement ATM card and Chase Bank checks. In addition, Hebert admitted that on at least one occasion he used Bloch’s driver’s license number and social security number in order to execute his bank fraud scheme and thereby committed aggravated identity theft.
“When the defendant officer responded to an automobile accident and stole the victim’s credit cards and used them to commit fraud, he violated not only the law, but the core law enforcement values of trust and respect for civil rights,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division will continue to work with our partners in the U.S. Attorney Offices and FBI to ensure that civil rights violations are identified and where appropriate prosecuted.”
“Mark Hebert’s guilty plea occurred as a result of the successful collaboration of local and state law enforcement agencies in our continued fight to eradicate corruption in our community,” said U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana. “The U.S. Attorney’s Office and its law enforcement partners are delivering the same message in a unified voice: we will not tolerate abuse of power and official position. If you violate the public trust in Southeast Louisiana, you will be held accountable.”
“In as much as I am very disappointed in the behavior of former JPSO officer Mark Hebert as outlined in his guilty plea today, I am extremely proud of the persistence of my criminal investigators and the efforts of the U. S. Attorney's Office in this investigation,” stated Jefferson Parish Sheriff Newell Normand. “My office will not tolerate any form of corruption.”
A sentencing hearing has been scheduled before the Honorable Jane Triche-Milazzo on March 24, 2014. For each of the five counts of bank fraud, Hebert faces a maximum statutory sentence of 30 years in prison and a $1,000,000 fine. For the count of aggravated identity theft, Hebert faces a maximum statutory sentence of two years in prison and a $250,000 fine. For the count charging a civil rights violation, Hebert faces a maximum statutory penalty of one year in prison and a $100,000 fine.
The investigation of this matter was conducted by the Jefferson Parish Sheriff’s Office Detective’s Bureau and the FBI. The case is being prosecuted by Assistant U.S. Attorney Steve Parker, Assistant U.S. Attorney Tony Sanders and Civil Rights Division Trial Attorney Shan Patel.
Former Hedge Fund Manager Indicted for Defrauding Investors and Obstructing the SECRead the Press Release
GAINESVILLE , Ga.– Stanley J. Kowalewski has been arrested in South Carolina after being indicted by a federal grand jury in Atlanta for defrauding investors of hedge funds of up to $8 million, and for obstructing the U.S. Securities and Exchange Commission’s subsequent investigation of his activities.
“Kowalewski is charged with stealing from the investors who trusted him and then repeatedly lying to them and the SEC about his self-dealing,” said United States Attorney Sally Quillian Yates. “The victims of his greed include pension funds, schools, hospitals, and other non-profits who lost over $8 million in hard-earned money, which Kowalewski diverted to his own personal use.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Investment fraud cases such as this remain a focus of the FBI’s criminal investigators in that these cases generate many victims and large loss amounts. The FBI will continue to work with its many law enforcement partners in an effort to hold accountable those individuals who would victimize unsuspecting investors by diverting their funds for personal gain.”
“Theft of employee benefit assets jeopardizes the benefits of workers. This case reaffirms the Labor Department’s commitment to protect workers’ benefits by identifying criminal activity wherever and whenever it occurs,” said Isabel Colon, Regional Director of EBSA’s Atlanta Regional Office.
According to United States Attorney Yates, the charges and other information presented in court: Kowalewski was the sole owner and Chief Executive Officer of SJK Investment Management, LLC, in Greensboro, N.C. Beginning in 2009, Kowalewski solicited investment money from pension funds, school endowments, hospitals, non-profit foundations, and other investors which he placed in two SJK “hedge fund of funds,” an onshore fund and an offshore fund called the Absolute Return Funds. Almost immediately after receiving the first investor money, Kowalewski began diverting the proceeds to pay for personal and business overhead expenses.
In December 2009, Kowalewski formed a new SJK fund called the Special Opportunities Fund, which he did not disclose to investors. He diverted millions from the Absolute Return Funds to the Special Opportunities Fund without disclosing the transfers to investors. After he secretly transferred the funds, Kowalewski diverted millions from the Special Opportunities Fund to himself through various self-dealing transactions, including having the Special Opportunities Fund buy three homes that Kowalewski owned and in which his family, his parents, and his brother-in-law’s family lived. Kowalewski also bought a multi-million-dollar beach house and directed that the Special Opportunities Fund pay him $4 million as a fee to which he was not entitled. Kowalewski created and altered documents in an effort to make these transactions appear legitimate.
Also as part of the scheme, Kowalewski overvalued the assets held by the Special Opportunities Fund and used those fraudulent valuations to calculate the returns for investors in the Absolute Return Funds. As a result, the monthly statements distributed to SJK investors showed fraudulently inflated returns. Investors lost over $8 million as a result of Kowalewski’s fraudulent scheme.
On March 30, 2010, the SEC initiated a proceeding to determine whether there had been violations of the federal securities laws in connection with SJK. As part of its investigation, the SEC subpoenaed Kowalewski to testify under oath. During his sworn testimony, Kowalewski testified that, after the Special Opportunities Fund had purchased his three homes, the Fund had leased the properties to him and his relatives, each for a yearly rental payment. He testified further that Michael J. Fulcher, the Chief Financial Officer of SJK, had drafted, and Kowalewski had signed, the leases at or near the time of the homes’ sales. According to the indictment, however, Kowalewski and his relatives had never leased the homes back from the Special Opportunities Fund. Prior to Kowalewski’s sworn testimony, Kowalewski and Fulcher conspired to obstruct the SEC proceeding by creating the leases and backdating them, in an effort to document the claimed lease relationships and to conceal the self-dealing transactions by Kowalewski. The leases were not created and signed at the time of the homes’ sales but in November 2010, a few weeks before Kowalewski testified. Kowalewski provided the fraudulent leases to the SEC as part of the investigation and then testified falsely about them to conceal his actions and obstruct the SEC’s investigation. The indictment also alleges Kowalewski lied in his sworn testimony when he testified that he had disclosed the Special Opportunities Fund to investors and that attorneys and other professionals had approved of his self-dealing transactions.
The indictment charges Kowalewski, 41, of Pawleys Island, S.C., with 22 counts of wire fraud, one count of conspiracy, and one count of obstructing the SEC proceeding. Each wire fraud count carries a maximum sentence of 20 years in prison. The conspiracy and obstruction charges each carry a maximum sentence of 5 years in prison. On April 19, 2013, Fulcher pleaded guilty to one count of conspiring with Kowalewski to obstruct the SEC proceeding, which charge carries a maximum sentence of five years in prison. Each of these charges carries a fine of up to $250,000. Fulcher’s sentencing date has not yet been scheduled. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment contains only allegations. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation, Investigators with the Atlanta Regional Office of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), and Special Agents of the Atlanta Regional Office of the U.S. Department of Labor’s Office of the Inspector General. The Atlanta Division Office of the U.S. Securities and Exchange Commission previously brought a civil action against Kowalewski. In that case, Kowalewski was ordered to pay over $16 million in disgorgement and civil penalties.
Assistant United States Attorneys Stephen H. McClain and Russell Phillips are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Department of Energy Lab Director Charged with Obstructing JusticeRead the Press Release
PITTSBURGH – An Upper St. Clair man has been indicted by a federal grand jury in Pittsburgh on a charge of obstruction of justice, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Nov. 19, named Anthony V. Cugini, 54, as the sole defendant.
According to the indictment, in connection with a Department of Energy investigation regarding misuse of his position as Director of the National Energy Technology Laboratory (NETL), Anthony V. Cugini attempted to conceal and destroy evidence by directing witnesses to delete and redesignate NETL computer files and records, to "protect him" during the investigation, and to provide false information in response to investigative inquiries.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The U.S. Department of Energy, Office of Inspector General 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.
Former Business Manager Embezzles at least $130,000 from Brookside Physician's OfficeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former business manager for a Brookside physician’s office pleaded guilty in federal court today to a fraud scheme in which she embezzled at least $130,000 from her employer.
Eileen Kisner, also known as “Anne,” 56, of Kansas City, pleaded guilty before U.S. District Judge Howard F. Sachs to mail fraud.
Kisner was the business manager at Brookside Family Medicine from 2002 to 2010. During that time, she used her employer’s credit cards for her personal use and benefit when she was not authorized to do so. The balances on the credit cards were paid by funds from the company’s bank account. Kisner pleaded guilty today to a mail fraud count that charges her with mailing a $224 check from the company’s account to pay for her personal car insurance on a family car, a Sierra. Kisner was not authorized to pay funds from Brookside’s bank account for the car insurance.
Kisner admitted today that she stole between $130,000 and $182,032 from Brookside Family Medicine by incurring unauthorized expenses during her employment, and those expenses were paid with funds from Brookside’s accounts. The court will determine the applicability of a specific loss amount within that range at Kisner’s sentencing hearing.
Under federal statutes, Kisner is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.
Florida Woman Sentenced to 14 Years in Federal Prison After Illinois Jury Finds Her Guilty of Telemarketing FraudRead the Press Release
Kathryn G. Garten, 52, of Orlando, Florida, was sentenced on November 19, 2013, in United States District Court, to 14 years in federal prison for her role in a nationwide telemarketing scheme which defrauded persons throughout the United States and Canada, including victims in seven counties in the Southern District of Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. A jury in the Southern District of Illinois convicted Garten of conspiracy to commit mail and wire fraud in August 2013. She was remanded to federal custody immediately after the verdict was announced and appeared for her sentencing in a prison uniform.
“Ms. Garten came to her trial driving a new, expensive, luxury automobile. She left after her trial in chains. Yesterday she appeared in an orange prison uniform and left for her sentence in a Marshal’s van.” observed United States Attorney Wigginton. “The lesson is simple – do not try to defraud innocent victims in order to line your pockets. Scammers beware - my office, the Federal Trade Commission, and the United States Postal Inspection Service will not tolerate fraud on our citizens.”
Garten was a telemarketer who worked for National Solutions and related companies located in Orlando, Florida. The scheme operated under more than a dozen business names including Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timeshares MA, Landmark Timeshares, Propertys Direct, Quicksale Propertys, Sun Property Networks, Sun Property’s, Universal Propertys, VIM Timeshares, Propertys DRK, Quick Sale Advisers, Quick Sale International, City Resorts, Resort Advisers, American Timeshares, Exit Week, and Resort Advisors International.
Telemarketers for National Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. The company solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that were to be refunded to the owner at closing. Many timeshare owners were told that their closings would occur within a matter of days.
Despite collecting fees from these victims, the National Solutions companies were not successful in selling a single timeshare unit and indeed made little effort even to market the properties for sale. Instead, Garten and her co-conspirators simply pocketed the advanced fees.
Garten’s participation in the scheme began in April 2008 and continued through July 13, 2011, when the Federal Trade Commission raided the business pursuant to a court order. From 2007 to 2011, over 2,500 timeshare owners across the country were scammed by the National Solutions businesses to the tune of more than $6 million.
In pronouncing the sentence, the United States District Judge rejected the contention that Garten was merely a minor participant in a larger scheme: “This was a very serious crime,” he remarked, “and she was a big part of it. She’s richly deserving of punishment, and she’s going to get it.” he said. Were it not for her age, he offered, the sentenced would have been higher, noting that the 168-month sentence fell at the very bottom of the range recommended by the United States Sentencing Guidelines.
As part of her sentence, Garten was also ordered to pay $909,278.00 in restitution to the identifiable victims of the crime. When she completes her prison sentence, she will remain on supervised release for five years.
This prosecution, one of many in the Southern District of Illinois, follows an investigation by the Midwest Region Office of the Federal trade Commission and the St. Louis Field Office of the Chicago Division of the United States Postal Service. The case was prosecuted by Assistant United States Attorney Nathan Stump and Special Assistant United States Attorney Theresa Dawson.
Federal Jury in Del Rio Convicts San Antonio-Area Woman in Crystal Methamphetamine Smuggling OperationRead the Press Release
Maria Landin, age 46, of Helotes, TX, faces between 10 years and life in federal prison after a jury in Del Rio convicted her this afternoon for her role in a scheme to smuggle into the United States 878.2 grams of pure crystal methamphetamine, announced United States Attorney Robert Pitman.
Jurors convicted Landin of one count of conspiracy to import a controlled substance. Sentencing for Landin, who remains in federal custody, is scheduled for May 5, 2014.
Evidence and testimony presented during trial revealed that on November 11, 2012, Landin hired two individuals—Paul McKinney and Anthony Cole, both of Corpus Christi, TX--to go and pick up the crystal methamphetamine in Piedras Negras, Mexico, and return to her residence in Helotes, Texas, for distribution in the San Antonio area. On November 12, 2012, McKinney and Cole were apprehended at the Eagle Pass Port of Entry, Bridge #2, while in possession of the crystal methamphetamine.
Testimony further revealed that the co-conspirators met at Landin’s residence in Helotes, where McKinney and Cole were given a cellular phone, cash, and instructions on how to make contact in Mexico with the source of the methamphetamine. Landin also instructed the two couriers to conceal the drugs on their bodies using tape. After retrieving the methamphetamine, Cole and McKinney became lost in Mexico. Landin assisted Cole and McKinney by providing them with directions back to the Port of Entry. Inspection at the port revealed two bundles of methamphetamine taped to Cole’s legs. The methamphetamine had a street value of approximately $100,000.
Cole and McKinney, who remain in federal custody, have already pleaded guilty to the conspiracy charge and are awaiting sentencing in March 2014.
This investigation was conducted by Special Agents from Homeland Security Investigations (HSI), and U.S. Customs and Border Protection (CBP). The case was prosecuted by Assistant United States Attorneys Patrick Burke and Katherine Nielsen.
Federal Jury Convicts Brunswick, Georgia Woman in $4 Million Medicaid Fraud SchemeRead the Press Release
BRUNSWICK, GA SCHELLA LOGAN HOPE, 47, of Brunswick, Georgia, was convicted earlier this month by a federal jury of various health care fraud, aggravated identity theft, and money laundering offenses for her role in a $4 million scheme upon the Georgia Medicaid program. Chief United States District Court Judge Lisa Godbey Wood presided over HOPE’s 5-day jury trial.
According to evidence presented during the trial, HOPE was a licensed dietician who ran a business located in Brunswick, Georgia, known as Hope Nutritional Services. From 2005 through 2011, HOPE stole the identities of thousands of needy children between the ages of 0 and 5 that were enrolled in Head Start programs located throughout the state of Georgia. Once HOPE obtained the identities of these children, HOPE fabricated patient files, falsified prescriptions from doctors, and submitted $4 million worth of claims to Medicaid for nutritional services that were not provided. HOPE then used the money she stole from Medicaid to pay for luxury automobiles, designer clothing, and vacations, among other things.
Coconspirator Arlene Murrell pled guilty before HOPE’s trial to her role in the scheme. Murrell testified against HOPE at trial, and detailed how she helped HOPE commit the fraud.
HOPE was convicted of 58 counts of Conspiracy to Commit Health Care Fraud; Health Care Fraud; Aggravated Identity Theft; and Money Laundering. Upon her convictions for these offenses, Chief Judge Wood remanded HOPE to the custody of the United States Marshals pending sentencing in the case.
United States Attorney Edward J. Tarver stated, “Defendant Hope preyed upon American taxpayers stealing the identities of low-income Georgia families and then billing Medicaid for over $4 million in nutrition services that were never provided. This United States Attorney’s Office will continue its efforts to prosecute all who seek to defraud American taxpayers by scamming federal programs. Because of Ms. Hope’s criminal efforts to feed her extravagant lifestyle, she will have to rely upon the federal prison system for her own nutritional services.”“The Head Start Program provides many of our nation’s children with invaluable services and opportunities,” said Derrick L. Jackson, Special Agent in Charge of the US Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “To use the Head Start Program as a vehicle to submit false and fraudulent claims to the Medicaid system is unacceptable and the OIG will continue to pursue these kinds of egregious cases.“
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “Those who defraud our publicly funded healthcare programs such as Medicaid and Medicare are taking valuable services and resources away from those in need. This guilty verdict reaffirms that the FBI will continue to provide significant investigative resources toward identifying, investigating and presenting for prosecution such individuals that, by engaging in such criminal conduct, put themselves before others."
Georgia Attorney General Sam Olens said, “Fraud of taxpayer monies will not be tolerated in any form. Head Start is a program intended to offer assistance to children from low income families. The fact that this Defendant used the Head Start Program and children in need to assist in her scam is especially appalling.”
“The Georgia Department of Community Health has made it a top priority to ferret out fraud, waste and abuse in our Medicaid program. Our collaborative work with state and federal agencies enables us to ensure Medicaid program dollars are being used to provide health care services to Georgia’s most vulnerable populations,” said Clyde L. Reese III, Esq., commissioner of the Georgia Department of Community Health.
At sentencing, HOPE faces 10 years in prison for each of the 17 health care fraud offenses; 20 years in prison for the various money laundering offenses; and 2 years consecutive prison sentences for each of the various aggravated identity theft offenses. HOPE also faces up to 3 years of supervised release, and may be ordered to pay restitution to the victims in this case.
The convictions of HOPE and Murrell resulted from a joint investigation by the United States Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; Georgia’s Department of Community Health; and the Georgia Attorney General’s Medicaid Fraud Control Unit.
Assistant United States Attorneys Brian T. Rafferty and David Stewart, along with Assistant Attorney General Robin Daitch, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on November 20, 2013: Marvin L. Bennett, 37, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about October 21, 2013. The Indictment also seeks the forfeiture of a firearm and ammunition. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
Eddie L. Carlisle, 25, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about September 14, 2013. The Indictment also seeks the forfeiture of a firearm and ammunition. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Preston R. Craig, 40, of Fort Wayne, Indiana, is charged in a four count Indictment with possessing with intent to distribute cocaine on or about October 25, 2013, profit from maintaining a drug involved premises from on or about October 23, 2013, to on or about October 25, 2013, possession of a firearm in furtherance of a drug trafficking crime on or about October 25, 2013, and being a felon in possession of a firearm on or about October 25, 2013. The Indictment also seeks the forfeiture of a firearm and ammunition. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Bryant Davis, 39, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about October 21, 2013. The Indictment also seeks the forfeiture of firearms. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
Robert D. Pearl, Jr., 40, of Marathon, Florida, is charged in a two count Indictment with access device fraud and aggravated identity theft from on or about October 2011, and continuing until on or about March 2012. These charges were filed as a result of an investigation by the United States Postal Inspection Service and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
Edward Williams, 31, of Fort Wayne, Indiana, is charged in a two count Indictment with being a felon in possession of a firearm on or about October 11, 2013 and possession with the intent to distribute cocaine base “crack” on or about October 11, 2013. The Indictment also seeks the forfeiture of firearms, ammunition and magazine. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Federal and State Authorities Make Arrests in El Paso Crack Cocaine Distribution InvestigationRead the Press Release
Federal and state authorities have arrested seven individuals, all of whom are believed to be associated with the Folk Nation gang operating in El Paso, charged in connection with a crack cocaine distribution conspiracy announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent In Charge Joseph A. Arabit, El Paso Police Chief Greg Allen and El Paso County District Attorney Jaime Esparza.
Those arrested yesterday and charged federally include: Terry Golden (aka “G”), age 44; Lachundria Aguirre (aka “Lala”), age 22; Terry Devorn Pearson (aka “P”), age 30; Ricardo Lucio (aka “Lucio”), age 46; Dominic Martin, age 36; Bryant Berryman, age 27; and, Juan Escalera, age 33. Authorities arrested four additional individuals yesterday based on state charges.
Golden, Aguirre, Pearson and Lucio were charged in a federal grand jury indictment, returned on November 13, 2013, and unsealed today, with one count of conspiracy to possess a controlled substance with intent to distribute. According to the indictment, Golden, Aguirre, Pearson and Lucio conspired with each other between October 2013 and September 2013, to possess with intent to distribute more than 28 grams of crack cocaine.
Martin, owner of the In The Cutt Barbershop and Salon in El Paso, and Berryman and Escalera are charged in separate criminal complaints filed yesterday. Martin and Berryman are charged with possession of a controlled substance with intent to distribute; Escalera, with re-entry after deportation. According to one criminal complaint, Martin himself, and also through an associate, sold a total of approximately 27 grams of crack cocaine to individuals acting in an undercover capacity earlier this year. Berryman is alleged to have been in possession of cocaine following a traffic stop on October 2, 2013. Escalera is alleged to have illegally re-entered the United States after being formally deported on January 9, 2007.
“This investigation, which was conducted jointly between DEA, the El Paso Police Department and other federal, state and local law enforcement agencies, targeted a gang-affiliated drug trafficking network responsible for the distribution of crack and powder cocaine in the El Paso area. The arrests of gang members and their associates further our efforts to stem the local drug trade and prevent gang-related violence and other crime,” stated DEA Assistant Special Agent In Charge Steve Whipple, El Paso Division. “DEA and our law enforcement partners will continue to work together to pursue those who threaten the safety of the communities in which we work and live,” he added.
All of the defendants who face federal charges remain in custody at this time. Upon conviction, each indicted defendant faces between five and 40 years in federal prison; Martin and Berryman each face up to 20 years in federal prison; and, Escalera faces up to two years in federal prison.
These charges resulted from a DEA El Paso Division Strike Force II investigation. The Strike Force is made up of investigators from the DEA, Homeland Security Investigations (HSI), U.S. Border Patrol, U.S. Marshals Service, El Paso Police Department and the El Paso County Sheriff’s Department. Agents from the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Postal Inspection Service, U.S. Customs and Border Protection and Child Protective Services assisted in making the arrests.
According to Lt. Tyler Grossman of the El Paso Police Department, “Forty-seven confirmed gang members have been arrested over the past year, utilizing 4,000 man hours, which was made possible through the Stonegarden Grant. The Stonegarden Grant calls for cooperation of agencies to fight border violence and these arrests are proof of the successful partnership demonstrated by EPPD, DEA, FBI, US Marshals, Border Patrol and others.”
In addition to the arrests, this operation has resulted in the seizure of 190 grams of crack cocaine, 30 grams of cocaine, two firearms and more than $24,000 in U.S. currency.
An indictment, or a criminal complaint, is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Father, Two Sons Sentenced to A Total of 85 Years in Prison for Involvement in Oxycodone and Money Laundering ConspiraciesRead the Press Release
“Doctor Shopping” Trips to Florida Involved Over $3M Worth of Drugs
KNOXVILLE, Tenn.-- Jackie Mize, 64, and his two sons, Kelvin Mize, 35, and James Mize, 40, all of Claiborne County, Tenn., were recently sentenced in the U.S. District Court for the Eastern District of Tennessee at Knoxville, by the Honorable Thomas A. Varlan, U.S. District Judge. Jackie and Kelvin Mize were each sentenced to serve 30 years in prison while James Mize received a sentence of 25 years. An order of forfeiture awarding the United States a money judgment of $3M was entered as to each defendant.
The sentences were imposed after all three individuals were convicted by a jury on June 14, 2013, of conspiracy to distribute oxycodone and conspiracy to commit money laundering. The evidence presented at trial showed that Jackie Mize, his two sons and others made regular “doctor shopping” trips to Florida over an 18-month period to acquire prescriptions for oxycodone and other controlled substances, had the prescriptions filled at pharmacies there, and used and sold the pills in and around Claiborne County. The evidence further demonstrated that the drug conspiracy involved over 75,000 oxycodone tablets and more than 25,000 doses of Xanax.
The indictment and subsequent convictions of the Mizes were the result of a lengthy investigation conducted by agents of the Eighth Judicial District Drug Task Force, Drug Enforcement Administration and Internal Revenue Service-Criminal Investigations.
U.S. Attorney Bill Killian said, “I want to thank the agents from all of these law enforcement agencies for their tireless efforts in bringing the Mizes to justice. These lengthy sentences should demonstrate that the U. S. Attorney’s Office will continue to work with its colleagues in the state judicial districts to severely punish those persons who are involved in spreading the epidemic of opiate addiction in the Eastern District of Tennessee.”
“These sentences send a clear message that drug and money laundering violations are serious crimes. IRS Criminal Investigation is proud to work with our law enforcement partners, by providing our financial investigative expertise, to stop the flow of illegal drugs into our communities,” stated Christopher A. Henry, Special Agent in Charge.
Essex County, N.J., Contractor and Three Employees Charged in Related Tax Fraud SchemesRead the Press Release
Company Worked Extensively on Palmer Square Project in Princeton, N.J.
NEWARK, N.J. – The owner of three Parsippany, N.J.-based construction companies surrendered to federal agents this morning on charges that he failed to collect and turnover federal and state payroll taxes totaling more than $1 million, evaded personal income taxes on more than $1.4 million in income, and falsified reports with respect to union benefit fund contributions, U.S. Attorney Paul J. Fishman announced.
Also, three employees of the construction companies were arrested on charges including filing false income tax returns, bankruptcy fraud, and a mail fraud scheme to defraud the state of New Jersey with respect to unemployment compensation benefits. All four defendants are scheduled to make their initial appearances later today before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the three complaints filed in this case:
First Complaint: Frank Chimento, Jr., 67, of West Caldwell, N.J., was the owner of Chimento Construction, Chimento Construction Services, and FAC Construction, three interrelated and commingled companies specializing in commercial masonry and concrete work (the “Chimento Companies”). From 2008 through 2011, the Chimento Companies’ primary construction job was the Palmer Square project located in Princeton, N.J.
Chimento Companies allegedly operated a cash payroll for a significant portion of the wages paid to employees during the period 2006 through 2011. Allegedly at Chimento Jr.’s direction, a conspirator (CC-1) who is not named in the complaints conducted structured cash transactions at several separate financial institutions to obtain cash to fund the payroll and in an attempt to avoid currency transaction reports from being filed. CC-1 would then purportedly prepare envelopes containing cash payroll based on the hours and wage rate information provided by Chimento Jr., who, as owner, was responsible for collecting, accounting for and paying over to the IRS withholdings from employees for Social Security, Medicare, and income taxes (collectively referred to as “payroll taxes”).
The complaint also alleges that as early as August 2009, the Chimento Companies have been parties to a collective bargaining agreement (CBA) with the International Union of Bricklayers and Allied Craftworkers, Administrative District Council of New Jersey, consisting of Local Unions 2, 4, and 5 (BAC/ADC), located in Bordentown, N.J. Among other things, the CBA provided that the Chimento Companies must make specified contributions to various BAC benefits funds for each hour of covered work performed by employees of the Chimento Companies. Chimento Jr. was required to complete remittance reports identifying the employees that had performed covered work under the CBA and the number of hours that they worked. According to the complaint, from August 14, 2009, through April 30, 2012, Chimento Jr. failed to make required contributions and caused false statements and representations to be made in remittance reports.
Joseph Carsillo, 45, of East Hanover, N.J., was the project superintendent for the Chimento Companies at Palmer Square. He has worked for the Chimento Companies since 2007. According to the Complaint, Carsillo conspired with Chimento Jr. to defraud the United States with respect to payroll taxes due and owing for the companies’ employees. Carsillo was responsible for keeping track of employees’ hours and would furnish that information to CC-1, which was used to determine the cash wages due to each employee.
According to the complaint, Carsillo received total cash wages from the Chimento Companies of approximately $167,466 during the years 2009 through 2011, which he failed to include on his personal tax returns for those years.Second Complaint:
Frank Chimento III, 45, of Verona, N.J., has worked for the Chimento Companies for more than 10 years and was one of the employees that received cash wages.
In 2007, Chimento III briefly operated his own excavation business. An analysis of his bank accounts showed payments in 2007 from the Chimento Companies totaling $85,860. Chimento III filed with the IRS a 2007 Individual Income Tax Return that was not correct as it did not include $45,860 he received from his employment with the Chimento Companies.
He also allegedly willfully did not file individual income tax returns from 2008 through 2011 although he received a Form 1099 for $100,000 in cash wages in 2008, and a total of $351,788 in cash wages during the years 2009 through 2011.
Third Complaint:
Carl J. Corso, 58, of Hamilton Township, N.J., started working for the Chimento Companies on August 12, 2009.
In addition to payroll checks, Corso requested and received cash wages from the Chimento Companies with regard to his employment in 2009 through 2011. Corso disclosed to his return preparer only the wages he received by payroll check and deliberately omitted the cash payments from his personal tax returns despite knowing that the cash should have been included on these returns.
Corso is also charged with a scheme to defraud the N.J. Department of Labor and Workforce Development (NJDOL-WD) with respect to unemployment compensation benefits. On Nov. 1, 2009, Corso advised the NJDOL-WD that he was no longer working and reactivated an earlier application for unemployment benefits and was awarded a weekly benefit of $526. He collected a total of $19,988 through the U.S. mail.
The three complaints charge the following offenses:
U.S. v. Frank Chimento Jr. and Joseph Carsillo
Defendant
Counts
Maximum Potential Penalty per Count
Count 1: Conspiracy to defraud the United States
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 2-15: Failure to collect and pay over payroll taxes
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 16-19: Mail fraud
20 years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 20-29: False statements in ERISA documents
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 30-34: Individual Income Tax Evasion
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
Joseph Carsillo
Count 1: Conspiracy to defraud the United States
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 35-37: Filing False Individual Income Tax Returns
Three years in prison; $250,00 fine or twice the gross gain or loss from the offense
Count 38: Bankruptcy Fraud
Five years in prison; $250,000 fine or twice the gross gain or loss from the offense
U.S. v. Frank Chimento III
Counts
Maximum Potential Penalty per Count
Count 1: Filing False Individual Income Tax Return
Three years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 2-5: Willful Failure to File an Individual Tax Return
One year in prison; $100,000 fine
U.S. v. Carl J. Corso
CountsMaximum Potential Penalty per Count
Count 1: Mail Fraud
20 years in prison; $250,000 fine or twice the gross gain or loss from the offense
Counts 2-9: Filing a False Individual Tax Return
Three years in prison; $250,000 fine or twice the gross gain or loss from the offense
U.S. Attorney Fishman praised special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia New York Regional Office, for the investigation leading to today’s charges. He also thanked the N.J. Department of Labor and Workforce Development, under the leadership of Commissioner Harold J. Wirths for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaints are merely accusations and the defendants are considered innocent unless and until proven guilty.
13-442Chimento, Frank Jr., and Carsillo, Joseph Complaint
Chimento, Frank III Complaint
Corso, Carl ComplaintEnfield Woman Admits Role in Scheme to Defraud Mass MutualRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that THERESA SUTHERLAND, 33, of Enfield, pleaded guilty yesterday before Senior U.S. District Judge Alfred V. Covello in Hartford to conspiracy and identity theft offenses stemming from a scheme to defraud Mass Mutual.
According to court documents and statements made in court, SUTHERLAND was employed by Mass Mutual Financial Group as a claims examiner in the company’s Enfield office. Mass Mutual offers full-time employees up to $8,500 in college tuition reimbursement and up to $5,000 reimbursement for the expenses associated with the adoption of a child. In pleading guilty, SUTHERLAND admitted that she and other Mass Mutual employees defrauded the company by submitting numerous fraudulent claims for tuition reimbursement and adoption expenses. In association with the fraudulent claims for adoption expenses, SUTHERLAND and her co-conspirators submitted birth certificates and Social Security numbers of actual children who were not their own.
SUTHERLAND and her co-conspirators received approximately $240,000 in fraudulent reimbursements during the conspiracy, and SUTHERLAND specifically received more than $75,000.
SUTHERLAND pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of aggravated identity theft, which carries a mandatory consecutive two-year term of imprisonment. Judge Covello has scheduled sentencing for February 11, 2014.
Four other former employees of Mass Mutual have been charged as a result of this ongoing investigation. Tamika A. Barnett, 31, of West Palm Beach, Fla., and Marena Bennett-Smith, 41, of Chicopee, Mass., have pleaded guilty and await sentencing.
As to the two defendants who are awaiting trial, Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Connecticut Financial Crimes Task Force, which includes members of the U.S. Secret Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation, Connecticut State Police, and the Greenwich, Hartford, Monroe, Stamford, Shelton, Stratford and Waterford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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(203) 821-3722 [email protected]Electric Company Owner Indicted in Navy Exchange Procurement Fraud SchemeRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Noe Rodriguez, age 33, of Boyds, Maryland, on charges arising from a scheme in which he allegedly failed to comply with federal wage, hour and records regulations under the Davis-Bacon Act. The indictment also charges Rodriguez with identity fraud and aggravated identity theft and charges Rodriguez and Maria Murillo, age 36, also of Boyds, with misuse of a social security number. The indictment was returned on November 18, 2013, and unsealed today upon the arrests of the defendants and the execution of a search warrant.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Bill Jones, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Washington Regional Office; Acting Special Agent in Charge Alfred C. McGeachy of the Naval Criminal Investigative Service, Washington Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
Rodriguez owned RDZ Electric, LLC, a company that provided electrical work on construction projects in the Washington, D.C. metropolitan area. Murillo acted as secretary of RDZ, and resided with Rodriguez. RDZ provided electrical work during the construction of the Navy Exchange (NEX) at the National Military Medical Center located in Bethesda, Maryland. The NEX was owned by the Department of the Navy.
RDZ was required to comply with federal wage, hour and records regulations under the Davis-Bacon Act. The Act required subcontractors such as RDZ to pay workers employed at the project site wages determined by the Department of Labor. The Department of Labor determined that the electrician’s prevailing wage rate at the NEX project was $50 an hour; and the electrical laborer’s wage rate was determined to be $16 an hour.
The indictment alleges that between August 2011 and June 2012, RDZ employed numerous electrical workers at the NEX project. Rodriguez allegedly listed no more than eight workers on RDZ=s certified payrolls, when in fact more than 30 workers were employed by RDZ and performed electrical work on the project. The indictment alleges that Rodriguez falsely certified on the payrolls that all RDZ employees were paid the Davis-Bacon prevailing wage, when in fact they were paid wages at least $1 million less than should have been paid pursuant to the Davis-Bacon prevailing wage rate.
The indictment alleges that Murillo used the social security number assigned to another person to open a bank account and Rodriguez allegedly provided a false social security number on his Maryland driver’s license renewal application, knowing that the social security number belonged to his minor son.
The indictment seeks forfeiture of at least $1 million, a vehicle, and all monies paid into four bank accounts controlled by Rodriguez between August 1, 2011 and June 1, 2012, for work performed by RDX on the NEX project.
Rodriguez faces a maximum sentence of five years in prison for each of five counts of making a false statement; a maximum of 15 years in prison for using another person’s identifying information to commit fraud; and a mandatory minimum of two years in prison consecutive to any other sentence for aggravated identity theft. Rodriguez and Murillo each face five years in prison for misuse of a social security number. The defendants had their initial appearances today in U.S. District Court in Greenbelt and were detained. A detention hearing is scheduled for Thursday, November 21, 2012 at 12:30 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorney’s Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice=s commitment to helping ensure the integrity of the government procurement process.United States Attorney Rod J. Rosenstein praised the U.S. Department of Labor - OIG, Naval Criminal Investigative Service and Social Security Administration - OIG for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze, who is prosecuting the case.
Easton Man Charged with FraudRead the Press Release
Randall McMahon, 27, of Easton, PA, was charged today by Information with one count of wire fraud and one count of bank fraud, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 50 years imprisonment, a five-year period of supervised release, a $1.25 million fine, a $200 special assessment, and the imposition of full restitution.
The case was investigated by the United States Secret Service, the United States Postal Inspection Service, Homeland Security Investigations, and the Lehigh County Auto Theft and Insurance Fraud Task Force. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Click here to view the indictment
1An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Department of Justice Announces New Policy to Address Domestic Violence, Sexual Assault and Stalking in the WorkplaceRead the Press Release
Deputy Attorney General James M. Cole today announced the release of a new Department of Justice policy for employees addressing the effects of domestic violence, sexual assault, and stalking in the workplace. The Department of Justice has long been at the forefront of addressing domestic violence in the workplace.
“With approximately 114,000 employees in 53 components, the Justice Department is a diverse workplace and it is our hope that this policy will serve as a model for other employers to address domestic violence, dating violence, sexual assault, and stalking,” said Deputy Attorney General Cole. “This new policy, and the steps it requires components to take, will improve the safety of the department’s workplaces and will help us better support victims.”
On April 18, 2012, President Obama issued a memorandum entitled “Establishing Policies for Addressing Domestic Violence in the Federal Workforce,” which required the Office of Personnel Management to issue guidance on the development of agency-specific policies to address domestic violence in the workplace. All federal agencies are required to develop an agency-specific policy based on the guidance. The department welcomed the chance to build upon the existing policy first created by Attorney General Janet Reno in 1999, which established support and resources for department employees who experience domestic violence. This order unequivocally stated that domestic violence perpetrated in the workplace was unacceptable and would not be tolerated.
Today, the department adopted a robust workplace policy that fully responds to the president’s call to federal agencies, and addresses not only domestic violence in the workplace, but also sexual assault and stalking.
“The impact of domestic and sexual violence is far reaching,” said Acting Director Bea Hanson of the Office on Violence Against Women. “And it is clear that we all have a part to play in creating a work environment that is safe for all of us. As we introduce this new policy, we must educate ourselves on how we can support co-workers who may be experiencing domestic violence, sexual assault, or stalking. And I am proud that the Office on Violence Against Women has led the charge in supporting organizations that work to address domestic violence, sexual assault and stalking in the workplace.”
The Office on Violence Against Women (OVW), a component of the U.S. Department of Justice, provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing 22 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges. More information is available at www.ovw.usdoj.gov.
If you, or someone you know, are a victim of domestic violence, please call the National Domestic Violence Hotline at 800-799-SAFE (7233), 800-787-3224 (TTY). For more information on resources that may be available to you, visit: http://www.ovw.usdoj.gov/statedomestic.htm.
Dearborn Man Sentenced for Clean Air Act ViolationsRead the Press Release
A Dearborn man was sentenced to 14 months in federal prison after having pleaded guilty to criminal violations of the Clean Air Act, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Randall Ashe, the Special Agent-in-Charge of the U.S. Environmental Protection Agency’s criminal investigation division in Chicago.
Khalil Mahmoud Saad, 40, was sentenced yesterday before United States District Judge Paul D. Borman in Detroit.
According to court records, in November 2011, Saad was hired as a demolition contractor to tear down a vacant commercial warehouse building located at 10401 Ford Road, Dearborn, Michigan, and dispose of the demolition debris. An asbestos consultant hired by the defendant inspected the building before the demolition began, and identified more than one-thousand linear feet of asbestos-containing pipe insulation, as well as asbestos-containing insulation on a large boiler. Federal law required that all of the asbestos materials had to be removed properly before any activity began that would break up, dislodge or similarly disturb the material. Rather than pay for the removal of the asbestos, Saad hired workers in April 2012 to tear down the warehouse building and failed to follow proper procedures such as failing to adequately wet regulated asbestos-containing material and ensure that it remained wet until collected or treated in preparation for disposal, both violations of the Clean Air Act’s asbestos regulations.
“The temptation is great to save money by cutting corners when tearing down buildings by failing to properly abate asbestos, but that conduct contaminates our clean air and exposes people to hazardous materials,” McQuade said. “We hope that prosecutions like this one will encourage people to comply with the law and keep our air clean.”
“Exposure to asbestos can lead to serious, even fatal diseases, and unsafe asbestos removal and demolition practices put the health of both the workers and the public at risk,” said Ashe. “For that reason, it is critical that those in charge of demolition operations strictly comply with the federal asbestos laws. The Defendant chose to ignore those legal requirements, potentially putting others at risk. Today’s sentence demonstrates that those who knowingly engage in such conduct will be prosecuted to the fullest extent of the law."
The case was prosecuted by the United States Attorney’s Office in the Eastern District of Michigan, by Assistant United States Attorneys Jennifer Gorland, Jennifer Blackwell and Special Assistant United States Attorney James Cha. The case was investigated by agents of the Environmental Protection Agency’s Criminal Investigation Division.
Congressman Trey Radel Pleads Guilty to Misdemeanor Drug Charge-Admits Purchasing Drugs from Undercover Officer-Read the Press Release
WASHINGTON – Congressman Trey Radel, 37, pled guilty today in the Superior Court of the District of Columbia to a misdemeanor charge of possession of cocaine, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Karl C. Colder, Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration (DEA).
Radel, who represents the 19th Congressional District of Florida, appeared before the Honorable Senior Judge Robert S. Tignor. As a first-time offender, Radel was able to ask the Court, under District of Columbia law, to defer entering a judgment of guilty and place him on probation. Judge Tignor placed Radel on one year of probation. If the probation is successfully completed, the Court could then dismiss the case without an adjudication of guilt.
According to a statement of offense submitted as part of the plea, Radel came to the attention of the FBI and DEA in the fall of 2013, during an investigation into cocaine trafficking in the Washington, D.C. metropolitan area. Agents learned that Radel would purchase cocaine for his personal use and sometimes share it with others.
The statement of offense says that, on Oct. 29, 2013, Radel met with an undercover police officer at a restaurant in the Dupont Circle area of Washington, D.C. At this time, Radel agreed to buy about 3.5 grams of cocaine from the undercover officer. He and the undercover officer went outside, and Radel handed over $260. The undercover officer provided Radel with a package of cocaine. Federal agents then approached Radel and the cocaine was recovered.
Radel agreed to speak with the agents about what had taken place and invited them to his apartment. There, he voluntarily admitted that he had purchased the cocaine. He also retrieved and provided to the agents a vial of cocaine that he had in his apartment.
“Today’s guilty plea emerges from a broader narcotics investigation that brought to light information that a sitting Member of Congress was routinely using and buying cocaine. Once this information was confirmed, law enforcement could not ignore this illegal conduct,” said U.S. Attorney Machen. “Mr. Radel’s guilty plea is similar to those entered every year by hundreds of other drug offenders in the District of Columbia who possess illegal narcotics. We appreciate his willingness to promptly accept responsibility for his conduct.”
“Today’s announcement demonstrates that illegal drugs continue to be present in our communities, and do not discriminate by age, gender, socio-economic group or profession,” said Assistant Director in Charge Parlave. “Along with our law enforcement partners at the DEA, the FBI remains focused on stopping the movement and sale of drugs on our neighborhood streets.”
“Drug traffickers and abusers respect no boundaries or limits and our neighborhoods and communities often pay the price,” said Special Agent in Charge Colder. “DEA and our law enforcement partners will continue to relentlessly pursue these drug trafficking networks and their criminal associates at every level. They pose a direct threat to the safety and security of our community here in the D.C. metro area. We want young people to see the price people pay for drug abuse and trafficking in cases like this so they will resolve to live drug-free lives.”
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Special Agent in Charge Colder commended the work of those who investigated the case. They also expressed appreciation for the work of the Fairfax County, Va., Police Department and the U.S. Attorney’s Office for the Eastern District of Virginia. Finally, they commended those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Nihar R. Mohanty and Jennifer Kerkhoff, who are prosecuting the matter.
13-400Colombian Drug Trafficker Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Hubert Rivas-Granados, 47, a former resident of Houston, Texas, and a citizen of Colombia illegally in the United States, was sentenced today in federal court for his participation in an interstate organization involved in the distribution of numerous kilograms of cocaine. Rivas-Granados was convicted by a jury of conspiracy to possess with intent to distribute cocaine in July of 2013. Judge Callie V. S. Granade imposed a sentence of 324 months imprisonment, after which she ordered that Rivas-Granados would be delivered to the appropriate immigration official for consideration of deportation. If for some reason Rivas-Granados is not deported, the judge ordered that he would serve a four-year term of supervised release, which will include drug abuse testing and treatment. The judge also ordered that Rivas-Granados pay the mandatory special assessment of $100.
Evidence adduced during the sentencing hearing established that Rivas-Granados occupied a leadership role in the conspiracy, which operated between Texas and Mobile from 2009 through 2011, to distribute more than 100 kilograms of cocaine here. The drug operation was disrupted with a series of arrests resulting from the investigation and federal indictments that have sent several members of the operation to federal prison for lengthy sentences.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Cheswick Man Indicted on Federal Child Exploitation ChargesRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Nov. 19, named Mark Philip Campbell, 49, as the sole defendant.
According to the indictment, from on or about Feb. 27, 2013, to on or about Sept. 15, 2013, Campbell received images and a video containing material depicting the sexual exploitation of minors. The indictment further alleges that from on or about Feb. 27, 2013, to on or about Oct. 24, 2013, Campbell knowingly possessed images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000 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 Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police 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.
Carlsbad Man Sentenced to Ten Years in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Eric Lee Crabb, 42, of Carlsbad, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to ten years in prison followed by five years of supervised release for his methamphetamine trafficking conviction. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Division, and Commander Carroll Caudill of the Pecos Valley Drug Task Force.
Crabb was arrested on Jan. 14, 2013, on a federal criminal complaint alleging methamphetamine trafficking charges. He has been in federal custody since that time. According to the complaint, Crabb was arrested outside a Carlsbad motel on Dec. 27, 2012, for violating the conditions of his supervised release. Officers found that Crabb was in possession of methamphetamine when they searched him following his arrest. Officers found additional methamphetamine when they searched Crabb’s motel room and vehicle.
On April 11, 2013, Crabb entered a guilty plea to a felony information charging him possession of methamphetamine with intent to distribute. In entering his guilty plea, Crabb admitted giving officers permission to search his motel room and vehicle on Dec. 27, 2012. Crabb also admitted that the 136.16 grams of pure methamphetamine seized by the officers during those searches belonged to him and that he intended to distribute the drugs.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force, and was prosecuted by Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program 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.