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6 November 2013
Local Doctor Pleads Guilty to Making False Statement to AgentRead the Press Release
St. Louis, MO – DR. ERICK FALCONER pled guilty to making a false statement to federal agents regarding his purchases of misbranded Botox® from a foreign unlicensed drug wholesaler, some of which had counterfeit exterior packaging.
According to court documents, during the summer of 2009, Dr. Falconer received a facsimile transmission from an unlicensed drug wholesaler that offered low prices for assorted prescription drugs, including “Botox (Turkish)” for $354.99 a vial, listing a 1-800 telephone number and an individual’s “g-mail” address for contact purposes. The facsimile was sent to his medical practice, The Youthful Body, Inc., in Florissant, Missouri. During this same time frame, the FDA-approved version of Botox® was sold through licensed drug wholesales at higher prices in the United States, typically $525 a vial. From August 2009 through February 2013, Dr. Falconer and his corporation made over fifty separate purchases of these counterfeit drugs, which he provided to his patients without informing them of the source of the drugs. During an interview in February 2013 with special agents of the U.S. Food and Drug Administration (“FDA”), Dr. Falconer told the agents he had only made three purchases of the illegal drugs from this unlicensed foreign wholesaler. On April 26, 2013, FDA issued an alert regarding “fraudulent versions of Botox found in the United States” with counterfeit exterior cartons.
Falconer, of St. Louis, Missouri, pled guilty to one felony charge of making a false statement before United States District Judge Carol E. Jackson. Sentencing has been set for February 4, 2014.
Dr. Falconer faces a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Food and Drug Administration, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services.
Jamesville Man Sentenced to 540 Months for Producing Child PornographyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today MEREDITH CLIFTON COOK, 47, was sentenced by Federal District Court Judge Louise W. Flanagan to 540 months imprisonment followed by a lifetime of supervised release and a fine of $50,000 for two counts of producing child pornography.
Investigation of this case was conducted by the Federal Bureau of Investigation with the assistance of the Martin County Sheriff’s Office. Prosecution was coordinated with the Martin County District Attorney’s Office. Assistant United States Attorneys Jay Exum and Ethan Ontjes handled the case for the United States.
U.S. Attorney Thomas G. Walker commented, “This is one of the worst cases of child sexual abuse and exploitation ever discovered in our district,” said Walker. “To sexually abuse the most helpless of children and then share that abuse with the world is conduct that cannot and should not be tolerated.”
Two separate offices of the Federal Bureau of Investigation – one in Charlotte, the other in Houston, Texas – developed leads in June of 2011 that an individual later determined to be COOK was engaged in trading child pornography over a peer-to-peer network frequented by child pornography traffickers. Investigators traced the account to Jamesville, North Carolina, leading to a search in November of 2011. Investigators discovered that COOK had amassed a massive library of multiple hundreds of thousands of child pornography images and videos and that he had been actively talking about his interest in the sexual abuse of infants online. After the initial search, investigators discovered that COOK had recorded his own sexual abuse of multiple children and redistributed the images over the internet. The victims were all younger than 7 years of age.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.Illegal Alien from the Domincan Republic SentencedRead the Press Release
Defendant Who Illegally Re-Entered the United States Sentenced to Ten Months Imprisonment
ALBANY, NEW YORK—HERMIS ANTONIO ADAMES, age 35, a citizen of the Dominican Republic, was sentenced today to ten months of imprisonment for illegally reentering the United States after removal by Chief United States District Court Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and Michael T. Phillips, Field Office Director, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. Following ADAMES’ sentence he will be remanded to the Department of Homeland Security for removal proceedings. Today’s sentencing followed ADAMES’ July 9, 2013, guilty plea.
ADAMES, a citizen of the Dominican Republic, was involuntarily removed from the United States to the Dominican Republic on May 6, 2009. On April 3, 2013, ADAMES, who did not have permission to re-enter the United States, was encountered by Immigration and Customs Enforcement officers in Albany, New York.
This case was investigated by the Department of Homeland Security, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, Albany, New York.
Hilliard Woman Sentenced to 5-1/2 Years in Prison for Role in Mortgage Fraud SchemesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Deborah L. Kistner, 50, Hilliard, Ohio was sentenced to 66 months in prison, five years of supervised release and ordered to repay victims $9,644,601.84 for deceiving lenders while securing fraudulent real estate loans in three different conspiracies between July 2006 and July 2010. Her husband, Mark A. Kistner, 52, was sentenced to five years of probation, ordered to forfeit his retirement account worth about $300,000 and make restitution of $381,764.92.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) and other agencies participating in the mortgage fraud task force announced the sentences imposed by U.S. District Judge Gregory L. Frost.
“Over five years, Kistner participated in an ongoing, multi-million dollar mortgage fraud in which banks and lending institutions were defrauded out of several million dollars in mortgage loans,” Assistant U.S. Attorney Laura Fulton told the court prior to sentencing. " Her role as a title agent mandated that she be a ‘gatekeeper’ for banks funding these mortgages, and she violated that position of trust.”
The Hilliard couple pleaded guilty on January 18, 2013, four days after their trial started. Deborah Kistner pleaded guilty to three counts of conspiracy to commit bank fraud, three counts of conspiracy to commit money laundering, and one count of bank fraud. Mark Kistner pleaded guilty to one count of conspiracy to commit money laundering.
Deborah Kistner operated Premiere Title Company in Hilliard. She deceived lenders in connection with the purchases of real estate in Ohio and Florida. She conspired with others to secure inflated loans for real estate and kept the excess proceeds or used them to pay others involved in the conspiracy. Deborah Kistner intentionally failed to provide lenders with critical purchase contract language and accurate settlement statements.
Deborah and Mark Kistner also schemed to defraud lenders and launder the money they received through simultaneous “short sale” closings where the lenders would agree to absorb losses on existing mortgage loans while Deborah Kistner actually sold those properties on the same day for a profit and laundered the profits through bank accounts controlled by Mark Kistner.
Stewart commended the cooperative investigation of this case by IRS and FBI agents, and Assistant U.S. Attorney’s Laura Fulton and Dan Brown, who prosecuted the case.
Health Care Service Provider and Others Indicted for Medicaid FraudRead the Press Release
NORFOLK, Va. – W. Wayne Perry, Jr., 54, of Suffolk, Va., was indicted by a federal grand jury today on one count of health care fraud, twenty-four counts of false statements relating to health care matters, one count of alteration of records and four counts of aggravated identity theft. Angela Perry, 51, of Suffolk, Va., was indicted on the same charges. Allison Hunter-Evans, 46, of North Chesterfield, Va., was indicted on one count of alteration of records.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, made the announcement.
W. Wayne Perry, Jr. and Angela Perry each face a maximum penalty of ten years in prison for health care fraud, five years on each of the false statement counts, twenty years for alteration of records, and two years on each of the aggravated identity theft counts, if convicted. Hunter-Evans faces a maximum penalty of twenty years in prison for alteration of records.
According to the indictment, W. Wayne Perry, Jr. is the owner and operator of Community Personal Care, a business located in Norfolk, Va. that is authorized to provide home health care services that are reimbursable by Medicaid, including personal care and respite care services. Angela Perry, his wife, is an officer and agent of the company. Between January 2009 and December 2012, Wayne Perry and Angela Perry orchestrated a false billing scheme where approximately 6,472 fraudulent claims were submitted to the Virginia Medicaid program, falsely representing that personal care and respite care services had been provided to 78 Medicaid recipients by Community Personal Care. The defendants thereby obtained health care benefit payments from the Virginia Medicaid program in the approximate amount of $1,328,744 to which they were not entitled. In order to conceal the fraudulent payments, Wayne Perry and Angela Perry altered the company’s office records, including time sheets. This was done with the assistance of Allison Hunter-Evans, who was then an employee of the Virginia Department of Behavioral Health and Development Services.
This case was investigated by the FBI and the Virginia Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorneys Alan M. Salsbury and Elizabeth M. Yusi are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Harrisburg Woman Charged with ConspiracyRead the Press Release
To Submit False Claims To The IRS
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that Stephanie A. Metz, age 25, of Harrisburg, Pennsylvania, was charged Tuesday with conspiracy to submit 33 fraudulent income tax returns to the IRS requesting $242,095 in fraudulent tax refunds for the years 2010 and 2011.
According to U.S. Attorney Peter J. Smith, Metz provided a co-conspirator with addresses where the fraudulent income tax refund checks could be delivered by mail and was paid a fee for each refund check she delivered to her co-conspirator. For the tax years 2010 and 2011, Metz provided addresses for 33 fraudulent income tax returns requesting $242,095 in fraudulent tax refunds. The IRS paid out $57,216 to the co-conspirator before the scheme was detected in early 2012.
The investigation is part of a project known as Operation Mass Mail involving the filing of hundreds of thousands of false returns using stolen identity information of residents of Puerto Rico. The investigation was conducted by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Harrisburg Man Charged Federally with Use of the Telephone and Text Messaging to Entice A Minor to Engage in Sexual ActivityRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, along with Pennsylvania Attorney General Kathleen Kane and Pennsylvania State Police Commissioner Frank Noonan announced that a federal grand jury in Harrisburg returned an indictment today charging Matthew Baratucci, age 29, of Harrisburg, Pennsylvania, for attempted coercion and enticement of a minor to engage in sexual activity.
According to United States Attorney Peter J. Smith, the charge resulted from Baratucci allegedly soliciting several women via the telephone and text messaging in October 2013, to allow him to engage in sexual activity with minor females aged five through nine years old. Baratucci is also facing state charges related to the alleged incidents.
The case is the result of a joint investigation by the United States Postal Inspection Service, the Pennsylvania Office of Attorney General, the Pennsylvania State Police, and the Lower Paxton Police Department.
Anyone with information about this case or the defendant, Matthew Baratucci, is asked to contact U.S. Postal Inspector Michael Corricelli at 717-257-5581.
Prosecution is assigned to Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the minimum penalty under the federal statute is ten years’ imprisonment and the maximum is life imprisonment, term of supervised release following imprisonment of up to life, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Four Men Indicted for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four southern Missouri men were indicted by a federal grand jury today in separate and unrelated cases for downloading and distributing child pornography over the Internet.
James Hayden McClelland, 20, of Billings, Mo., was charged with one count of receiving and distributing child pornography over the Internet between July 27, 2011, and Aug. 16, 2012.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the FBI and the Southwest Missouri Cyber Crimes Task Force.
Adam Headley, 34, of Springfield, was charged with one count of receiving and distributing child pornography over the Internet between Jan. 1, 2012, and Feb. 13, 2013.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI and the Kirksville, Mo., Police Department.
Luis Eduardo Martinez, 22, of Carthage, Mo., was charged with one count of receiving and distributing child pornography over the Internet between May 16, 2012, and Dec. 19, 2012.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Cassville, Mo., Police Department and the Nixa, Mo., Police Department.
Ricardo Vargas-Villalobos, 24, of Carthage, Mo., was charged with one count of receiving and distributing child pornography over the Internet between May 16, 2012, and Dec. 19, 2012.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Cassville, Mo., Police Department and the Nixa, Mo., Police Department.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Four Individuals Indicted for Theft of Tribal FundsRead the Press Release
United States Attorney Brendan V. Johnson announced that four individuals were indicted by a federal grand jury on October 11, 2013, for stealing funds from the Oglala Sioux Tribe.
Samone Darla Milk, a/k/a Samone Darla Long Pumpkin, age 32, of Martin, South Dakota, was indicted for Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds and two counts of Theft Concerning Programs Receiving Federal Funds.
Heather Marie Garcia, a/k/a Heather Marie Brings Plenty, age 30, Joe Marquios Garcia, age 34, and Wayne Wilson Cortier, age 45, all of Pine Ridge, South Dakota, were indicted for Conspiracy to Commit Theft Concerning Programs Receiving Federal Funds and one count of Theft Concerning Programs Receiving Federal Funds.
All four defendants appeared before U.S. Magistrate Veronica L. Duffy on October 16, 2013, and pled not guilty to the Indictments.The conspiracy count carries a maximum penalty upon conviction of up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The theft counts carry a maximum penalty upon conviction of up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that the defendants made fraudulent claims on the Oglala Sioux Tribe’s Low Income Home Energy Assistance Program. Milk and Heather Garcia were employed by the Tribe at the time of the offenses, and Joe Garcia and Cortier were contractors for the Tribe.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations. Assistant U.S. Attorney Ann M. Hendrickson is prosecuting the case.
All four defendants were released pending trial. A trial has been set for December 17, 2013.Former Tennessee Police Officer Pleads Guilty to Assaulting Handcuffed ArresteeRead the Press Release
Christopher Eugene Reynolds, 39, a former police officer of the Selmer, Tenn., Police Department (SPD), pleaded guilty today in the U.S. District Court for the Western District of Tennessee to violating the civil rights of an arrestee, the Justice Department announced.
During his guilty plea before U.S. District Judge J. Daniel Breen, Reynolds admitted that, while using his authority as a SPD officer, he slammed a handcuffed arrestee to the floor of the McNairy Regional Hospital and struck him in the face. According to information presented in court, Reynolds acknowledged that this assault was unreasonable and did not serve a legitimate law enforcement purpose. The victim was injured as a result of the assault.
“Mr. Reynolds has admitted that he used unjustified and unlawful force against a handcuffed arrestee,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “The Justice Department will continue to prosecute law enforcement officers who violate the constitutional rights of individuals in their custody.”
Sentencing has been scheduled for Feb. 5, 2014. Reynolds faces a maximum statutory penalty of 10 years in prison.
This case was investigated by FBI Special Agent Christopher Miller with the assistance of the Tennessee Bureau of Investigation. The case is being prosecuted by Civil Rights Division Trial Attorney Ryan J. Murguía and Special Litigation Counsel Gerard V. Hogan, with the assistance of Assistant U.S. Attorney Victor L. Ivy of the Western District of Tennessee.
Former Moore Resident Who Sought Benefits Following May Tornado Is Charged with Disaster Benefits FraudRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury has indicted IRA ROBERT SCHILLING, 42, a former resident of Moore, Oklahoma, for committing disaster benefits fraud and making false statements in connection with a claim for benefits following the May 2013 tornados in Moore, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the May 20, 2013, tornado affecting Cleveland County was declared a major disaster and the payment of disaster benefits was authorized. The indictment alleges that on June 16, 2013, Schilling signed a Department of Air Force memorandum requesting evacuation allowances and benefits on behalf of his dependents. In that memorandum, it is alleged, Schilling certified that after a May 20, 2013, storm he evacuated from a home in Moore, Oklahoma, and that he and two of his dependents were residing at the Safe Haven location in Norman, Oklahoma. Specifically, it is alleged that Schilling falsely submitted a travel voucher to the Air Force for costs associated with his relocation from Moore to Norman when he knew that no such costs had been incurred for a dependent-associated relocation. In addition, it is alleged that Schilling sent an email to the Air Force falsely claiming entitlement to extended Safe Haven benefits, including per diem payments, when he knew that he was not entitled to receive those benefits.
If convicted, Schilling faces up to 30 years in prison, a $250,000 fine, and payment of restitution. The public is reminded that the indictment is merely an accusation and that the defendant is each presumed innocent unless and until proven guilty. Reference is made to the indictment for further information.
This case is the result of an investigation by the U.S. Air Force Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Brandon Hale.
Former Mental-Health Clinic Therapist Sentenced for Role in $55 Million Medicare Fraud SchemeRead the Press Release
A former therapist for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to serve 120 months in prison for his participation in a $55 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) Miami office made the announcement.
Jose Rojo, 39, of Miami, was sentenced by U.S. District Judge Marcia G. Cooke in the Southern District of Florida. Rojo was convicted on Aug. 7, 2013, of one count of conspiring to commit health care fraud following a one-month jury trial. In addition to the prison term, Rojo was ordered to pay more than $11 million in restitution, jointly and severally with his co-defendants, and to serve three years of supervised release.
According to the evidence at trial, Rojo and his co-conspirators caused the submission of more than $55 million dollars in fraudulent claims to Medicare through Biscayne Milieu, which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead of providing PHP services, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for services that were never provided. Many of the patients admitted to Biscayne Milieu were not eligible for PHP because they were chronic substance abusers, suffered from severe dementia and would not benefit from group therapy, or had no mental health diagnosis but were seeking exemptions for their U.S. citizenship applications.
The evidence at trial further showed that, as a therapist at Biscayne Milieu, Rojo conducted sham therapy sessions for patients he knew were ineligible for PHP treatment. Often Rojo showed up late for these sessions or not at all, but Medicare was still billed as if a full session took place. Rojo created fraudulent documents to help cover-up Biscayne Milieu’s massive fraud, including bogus treatment plans and phony group therapy notes that were copied from one document to the other. Deliberately inaccurate group therapy notes for different patients on different days – often years apart – were in many respects identical, including having the same descriptions of patients’ statements in group sessions and even the same misspelled words. Further, Rojo provided other therapists at the clinic with fake group therapy notes for a fee. Biscayne Milieu billed Medicare for tens of millions of dollars in PHP treatments for these patients.
Various owners, doctors, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with health care fraud, kickback violations, money laundering and other offenses in two indictments unsealed in September 2011 and May 2012. Biscayne Milieu, its owners, and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial. Antonio and Jorge Macli and Sandra Huarte – the owners and operators of Biscayne Milieu – were each convicted at trial and were sentenced in April 2013 to 30 years, 25 years and 22 years in prison, respectively.
This case was investigated by the FBI with the assistance of HHS-OIG and was brought by the the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant U.S. Attorneys Marlene Rodriguez and James V. Hayes of the Southern District of Florida; Hayes was formerly a trial attorney of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Former Jacksonville Man Sentenced for RobberyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that yesterday in federal court, Judge Louise W. Flanagan sentenced carlos devaughn varnell , 26, of Mississippi, formerly of Jacksonville, North Carolina, to 60 months of imprisonment, followed by 3 years of supervised release.
Investigation of this case was conducted by the Jacksonville Police Department and the Bureau of Alcohol Tobacco, Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette represented the government.
VARNELL was named in an Indictment filed on April 4, 2013, charging him with conspiracy to commit Hobbs Act Robbery and Hobbs Act Robbery; aiding and abetting. On August 15, 2013, VARNELL pled guilty to those charges.
According to the investigation, VARNELL was the driver of a car, stopped by the Jacksonville Police Department on April 30, 2012, shortly after a cab driver reported being robbed at gunpoint by two males. Two firearms were recovered from Varnell’s car, and both Varnell and his passenger were charged with the robbery.Former Fairfield Housing Authority Executive Director Who Embezzled $30k Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ELIZABETH JO GUTIERREZ, 47, of Ridgefield, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to five years of probation, the first six months of which GUTIERREZ must spend in home confinement under electronic monitoring, for embezzling $30,000 from the Fairfield Housing Authority.
The Fairfield Housing Authority administers federal housing programs for the U.S. Department of Housing and Urban Development with the mission of providing affordable housing for eligible low-income families and the elderly.
According to court documents and statements made in court, GUTIERREZ served as the Executive Director for the Fairfield Housing Authority from approximately July 2010 to December 2011. In the summer of 2011, GUTIERREZ issued two checks, each in the amount of $15,000, from the Fairfield Housing Authority’s checking account and subsequently deposited them into her own checking account.
On June 4, 2013, GUTIERREZ pleaded guilty to one count of theft concerning programs receiving federal funds.
GUTIERREZ was ordered to pay restitution in the amount of $30,000.
This matter was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, and was prosecuted by Special Assistant U.S. Attorney Sean Beaty.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former CEO of the Bank of the Commonwealth Sentenced to 23 Years in Prison for Massive FraudRead the Press Release
NORFOLK, Va. – Edward J. Woodard, 70, of Norfolk, Virginia, was sentenced today to 23 years in prison, followed by 5 years of supervised release, for conspiracy to commit bank fraud, false entry in a bank record, unlawful participation in loans, false statements to a financial institution, misapplication of bank funds, and bank fraud. The Court further ordered Woodard to pay $333,569,732.00 in restitution to the Federal Deposit Insurance Corporation.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Royce E. Curtin, Special Agent in Charge of the FBI Norfolk Field Office; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Field Office in Washington, D.C. (IRS-CI); Christy L. Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Fred W. Gibson, Jr., Acting Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG); and Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau (FRB-CFPB OIG), made the announcement after sentencing by United States District Judge Raymond A. Jackson.
“Defendant Woodard’s felonious conduct, motivated by his own greed, destroyed a financial institution, left former bank employees jobless, and defrauded a federal recovery program out of millions of dollars,” stated Acting United States Attorney Dana J. Boente. “Through the diligence and determination of my office, along with our multiple law enforcement partners, Woodard now stands convicted, incarcerated, and publicly accountable for his unlawful deeds.”
SAC Royce Curtin said, “This investigation involved several complex, fraudulent banking schemes resulting in significant losses to financial institutions and American taxpayers. Today’s sentencing sends a clear message that the FBI and our partners will aggressively pursue and bring to justice those individuals involved in these types of dishonest and deceitful frauds to ensure they are punished to the fullest extent of the law.”
“Motivated by greed, Woodard lied, cheated, and stole,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “TARP is not an opportunity to finance banks failing under the weight of fraud, but Woodard used fraudulent bank books and records to try to cheat federal taxpayers out of $28 million in TARP bailout funds to fill the holes he caused in the bank’s books. SIGTARP and our law enforcement partners will hold all those guilty of crimes related to TARP accountable because no one is above the law.”“Today’s sentencing of Mr. Woodard sends a powerful message to the public that bank insiders who abuse their positions of trust and cause irreparable harm to their banks will be brought to justice and held accountable,” stated Fred Gibson, Jr., Acting Inspector General of the FDIC. “We are committed to continuing to work with our Department of Justice and other law enforcement colleagues on such cases, in the interest of ensuring the safety and soundness of the nation’s banks and the viability of the FDIC’s Deposit Insurance Fund—which suffered massive losses when the Bank of the Commonwealth failed.”
“Our office is committed to bringing to justice bank executives, like Mr. Woodard, who engage in illegal activities that undermine the public trust,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. “Today’s sentencing should serve as a warning that fraud affecting the integrity of financial institutions critical to our economy will not be tolerated. I commend the hard work of our agents and their federal law enforcement partners who ultimately exposed Mr. Woodard’s conspiracy.”
A jury found Woodard guilty after a lengthy, ten week, jury trial on May 24, 2013. Evidence presented at trial demonstrated that Woodard, the former Chief Executive Officer and Chairman of the Board for the Former Bank of the Commonwealth (“Bank”), engaged in an illegal reciprocal relationship with certain troubled borrowers to mask the Bank’s deteriorating financial condition. Conspirators Thomas E. Arney, Eric H. Menden, and George P. Hranowskyj all testified at trial that, at the request of Woodard and Executive Vice President Stephen G. Fields, they performed favors such as buying Bank of the Currituck stock, bailing out Woodard’s son on bad investments, and purchasing bank-owned property with fully-funded Bank of the Commonwealth loans. In return, Arney, Menden and Hranowskyj all received preferential treatment such as affording large overdrafts, sometimes for hundreds of thousands of dollars, below-market interest rates, loans to make interest payments on other loans, and easy access to credit. Additionally, Woodard funded three loans totaling $11 million without the approval of the Board of Directors to another troubled borrower who was in bankruptcy and the subject of a federal grand jury investigation. Later, Woodard made false entries in bank records to cover-up the fact that he authorized the funding of these loans without proper approval.
Throughout the conspiracy, Woodard enriched himself and his son at the Bank’s expense. Despite the fact that Arney had not made loan payments in over a year, Woodard nevertheless arranged for Arney to purchase his personal condominium at an inflated price using 100% financing from the Bank and made $56,000. Woodard also ensured that Menden and Hranowskyj purchased his son’s failed investment properties and personal condominium with bank funds earning his son more than $69,000. Finally, Woodard also caused the Bank to pay approximately $100,000 for renovations to his son’s personal residence, thousands of dollars in fraudulent commissions owed and his son’s personal legal fees.
In addition to having a substantial impact on property values in the Hampton Roads area, Woodard’s crimes were a significant factor in the failure of the Bank of the Commonwealth on September 23, 2011. As a result of this failure, the FDIC has sustained at least $333 million in losses.
The Investigation was conducted by the FBI’s Norfolk Field Office, IRS-CI, SIGTARP, FDIC-OIG, and FRB-CFPB OIG. Assistant United States Attorneys Katherine Lee Martin, Melissa E. O’Boyle, and Uzo Asonye prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former ACCESS President Sentenced to Federal Prison in El Paso Corruption CaseRead the Press Release
In El Paso today, former ACCESS Health Source Chief Executive Officer and President Frank Apodaca and El Paso Public Relations consultant Marc Schwartz were each sentenced to eight years in federal prison followed by three years of supervised release for their roles in conspiring to engage in a racketeering scheme focusing on the now-defunct company announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
United States District Judge Frank Montalvo also ordered that the defendants pay restitution in the following amounts: $4.1 million to the El Paso Independent School District (EPISD); $2,286,629.76 to the Ysleta Independent School District (YISD); and, $433,103.11 to El Paso County. Furthermore, Judge Montalvo ordered that each defendant self–surrender to a U.S. Bureau of Prisons designated facility on or before December 18, 2013, to begin serving his prison term.
“The sentences handed down today should reassure the public that we will be relentless in pursuing those who would attempt to corrupt public officials as well as those public officials who violate their public trust for personal gain,” stated U.S. Attorney Robert Pitman.
ACCESS, among other things, was a third party administrator of healthcare benefits for self-insured entities. Between 1998 and 2007, ACCESS contracted with self-insured local (El Paso) government entities, including the County, the City and all of the local school districts, among other entities, to provide administrative services for health insurance programs provided by their employer.
Last year, both pleaded guilty to one count of conspiracy to engage in racketeering activity (RICO). By pleading guilty, Apodaca and Schwartz admitted to participating in a scheme involving ACCESS and others to engage in a pattern of racketeering activity, including mail fraud, wire fraud and bribery with elected and appointed members of the El Paso County Commissioners Court and elected Trustees of EPISD, YISD and the Socorro Independent School District to secure and retain lucrative health care management service contracts. Specifically, Schwartz admitted that he carried out schemes on behalf of Apodaca, former ACCESS CEO and President and National Center for the Employment of the Disabled (NCED) Board member; ACCESS owner and NCED CEO Robert “Bob” Jones; and, El Paso attorney Luther Jones to pay bribes to elected officials, including former Socorro ISD Trustees Raymundo “Ray” Rodriguez, Guillermo “Willie” Gandara, Sr., and Charles “Charlie” Garcia; former YISD Trustees Linda Chavez and Mickey Duntley; former EPISD Trustee Salvador “Sal” Mena; former El Paso County Commissioners Elizabeth “Betti” Flores and Larry Medina; and, former El Paso County Judge Dolores Briones, for performing acts in their official capacity which benefitted ACCESS.
“The sentencing of Frank Apodaca Jr. and Marc Schwartz marks another chapter in a ten year investigation in which public confidence was betrayed by a group of elected officials and vendors who used their influence to promote their own personal greed. It also shows the continued commitment of the FBI to aggressively pursue individuals who violated the public’s trust by holding them personally accountable for their self-serving acts,” stated FBI SAC Douglas E. Lindquist.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
Assistant United States Attorneys Debra Kanof and Jose Luis Gonzalez are prosecuting this case on behalf of the Government.Forest Man Sentenced on Drug ChargesRead the Press Release
Jackson, Miss. – Jerry Lynn Loper, 45, of Forest, was sentenced today by U.S. District Judge William H. Barbour, Jr. to serve 95 months in federal prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced U.S. Attorney Gregory K. Davis. Loper was also ordered to pay a $1500.00 fine and forfeit 9 firearms which were seized.
Loper was indicted following an extensive investigation, dubbed “Operation Brusha”, targeting illegal narcotics distribution in Scott County, Mississippi. The investigation was conducted by the Mississippi Bureau of Narcotics, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the Organized Crime Drug Enforcement Task Force. Assisting agencies included the Mississippi Highway Patrol, Mississippi Bureau of Investigation, Forest Police Department, and Scott County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Erin O. Chalk.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
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Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Five Plead Guilty to Their Involvement in Kidnapping CaseRead the Press Release
Jackson, Miss. – Five defendants entered guilty pleas before U.S. District Judge William H. Barbour Jr. in federal court today for their involvement in the kidnapping of Jashayla Hopson from East Kemper Elementary School on April 30, 2013, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Wanda Faye Dancy, of DeKalb, Mississippi, Shamarius S. Ruffin, of Porterville, Mississippi, and Shaquayla S. Johnigan, also of Porterville, each pled guilty to conspiracy to kidnap. They each face a maximum penalty of five years in prison and a $250,000 fine.
Joyce M. Johnigan and James Shurman Johnigan both of Porterville, Mississippi, pled guilty to a criminal information charging them with misprision of a felony. They each face a maximum penalty of three years in prison and a $250,000 fine.
All five defendants are scheduled for sentencing by U.S. District Judge William H. Barbour Jr. on January 22, 2013 at 9:00 a.m.
The two remaining defendants in this case, Jesse Pollard and Devonta Pollard, are scheduled for trial on November 18, 2013. Jesse Pollard is charged with kidnapping, conspiracy to kidnap and obstruction of justice. She faces a maximum penalty of life in prison and a $750,000 fine. Devonta Pollard is charged with conspiracy to kidnap and faces a maximum penalty of five years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney and Criminal Division Chief John M. Dowdy, Jr.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Felon in Possession of Firearm and Ammunition Sentenced to 67 MonthsRead the Press Release
EUGENE, Ore. – On November 5, 2013, Corey Nicholas Agard, 25 years old, was sentenced by U.S. District Chief Judge Ann Aiken to 67 months in federal prison for unlawful possession of a firearm and ammunition. Upon his release from prison, Agard will be on supervised release for three years.
On June 17, 2011, a Klamath County Sheriff’s Officer arrested Agard when he caught him with a sawed-off Mossberg shotgun and ammunition. Defendant has multiple felony convictions including felon in possession of a firearm, robbery, menacing, second degree burglary, and attempted assault.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Klamath County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Federal Judge Sentences Milwaukee Pimp to 30 Years ImprisonmentRead the Press Release
United States Attorney James L. Santelle announced today that Federal District Court Judge Charles N. Clevert sentenced Milwaukee resident Tyrone McMillian (31) to 30 years imprisonment following his June 6, 2013 conviction by a jury of seven counts of sex trafficking of minors and adults. The six-day jury trial in Judge Clevert’s court included the testimony of one adult and four minors whom McMillian trafficked in the sex trade from 2006 through 2009. The judge also forfeited to the United States McMillian’s interest in a watch he purchased in 2010 for $15,900 cash. McMillian also faces separate charges in federal court for his illegal possession of firearms and ammunition that could add an additional 10 years of prison time to his sentence.
In addition to the trial testimony, prosecutors introduced evidence at McMillian’s sentencing regarding his involvement in a February 2011 theft of more than $325,000 in protein supplements from a warehouse in Dallas, Texas. An affidavit filed by an agent from the Criminal Division of the Internal Revenue Service detailed McMillian’s receipt and expenditure of funds obtained from the subsequent sale of those protein supplements. McMillian used the proceeds to purchase, among other things, a Bentley automobile for $79,500 and more than $40,000 of custom-made jewelry. In addition to the vehicle and jewelry, Milwaukee Police Department officers seized $94,600 in cash during a search of McMillian’s residence on July 6, 2011. The cash, automobile, and jewelry – all presently in the custody of the Internal Revenue Service – are the subject of a separate forfeiture proceeding filed by prosecutors in the U.S. Attorney’s Office.
In making the public announcement of the sentence imposed on McMillian, United States Attorney Attorney Santelle stated: AJudge Clevert’s focus on McMillian’s exploitation of vulnerable juveniles mirrors the mission of this office in the investigation and prosecution of individuals who seduce our children with lies and false promises to bring them into the dirty, destructive business that is the sex trade. The sentence is an appropriate response to McMillian’s criminal conduct and sends a strong message to others who may somehow see the pimp lifestyle as profitable or glamorous, or both.”
Santelle also stated: AThe investigation and prosecution of human trafficking cases in Eastern Wisconsin is among the highest priorities of my office, and we will continue to pursue the perpetrators of this heinous conduct with all of the resources available to us.
The case was investigated by detectives from the Milwaukee Police Department and agents from the Federal Bureau of Investigation working through the Milwaukee Human Trafficking Task Force. The case was prosecuted by Joseph R. Wall and Melvin K. Washington of the U.S. Attorney’s Office.
Federal Grand Jury Returned Eight Count Indictment Today on WoodringRead the Press Release
Includes charge of terrorist attack against railroad carrier
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that Jason Woodring, age 37, of Jacksonville, Arkansas, was indicted today by a federal grand jury on eight counts related to his attacks on the power grid in Central Arkansas. Woodring is currently in federal custody.
Woodring is charged in Count One with a terrorist attack against a railroad carrier for his alleged August 21, 2013, sabotage of a high voltage power line support tower. During the process of dismantling the tower, a power line fell on a nearby railroad track and was later struck by a passing train, severing the power line and causing a brief power outage in Cabot, Arkansas.
In Counts Two, Three and Six of the Indictment, Woodring is charged with the destruction of an energy facility. These charges stem from allegations that he attempted to destroy the support tower and the power lines it carried on August 21, 2013; that he set a fire on September 29, 2013, at an Extra High Voltage (EHV) switching station in Scott, Arkansas; and that he cut down two power poles, pulling down one with a stolen tractor on October 6, 2013, causing a power outage in Jacksonville, Arkansas.
Count Four of the indictment charges Woodring with use of a fire to commit a felony that is prosecutable in a United States court for the EHV station fire. Count Five charges Woodring with maliciously damaging or destroying by fire the EHV station building.
Woodring is charged with possession of an unregistered short-barrelled shotgun with an obliterated serial number in Count Seven of the Indictment. County Eight alleges that Woodring is addicted to methamphetamine and as an illegal drug user he possessed two rifles, three shotguns, and multiple rounds of ammunition.
Lastly, the Indictment includes two forfeiture allegations related to the weapons he possessed. Upon conviction of Count Seven, he would forfeit the short-barrelled shotgun and upon conviction of Count Eight Woodring would forfeit the additional weapons and ammunition.
Woodring faces up to life in prison and/or not more than five years of supervised release after prison for the terrorist attack against a railroad carrier. The charge of destruction of an energy facility carries a possible sentence of not more than 20 years in prison. Use of a fire to commit a felony has a statutory sentence of ten years consecutive to the underlying felony. Malicious use of fire carries a possible sentence of not less than five years but not more than 20 years in prison. Woodring could also face not more than a $250,000 fine for each charge against him. Counts Two through Six each carry not more than three years of supervised release.
This investigation was conducted by the FBI, Joint Terrorism Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission. Assistant United States Attorney Michael Gordon is prosecuting this case for the United States.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Federal Grand Jury Indicts Belle Man on Illegal Firearm Possession ChargeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man was indicted on Nov. 5 by a federal grand jury sitting in Charleston for being a felon in possession of a firearm. According to a single-count indictment, Dorsey Woolwine, Jr., 62, of Belle, W.Va., allegedly possessed 19 firearms near Belle, W.Va. on March 24, 2012.
Woolwine was previously convicted of unlawful wounding in March 2012 in the Circuit Court of Kanawha County. He did not have his rights to possess a firearm restored.
Woolwine faces up to 10 years in prison, if convicted.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
The case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
Fci Danbury Prisoner to Serve an Additional 28 Months for Stabbing Another InmateRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that YVONNE DAVIS, 62, a prisoner at the Federal Correctional Institution (FCI) in Danbury, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 28 months of imprisonment for assaulting another inmate.
According to court documents and statements made in court, on November 25, 2012, DAVIS stabbed another FCI Danbury inmate with a ballpoint pen that had been broken so as to have a sharp edge on it. The victim suffered a laceration to the back of her arm that was five to six inches long and one-half inch deep. The wound required 24 stitches to close.
On August 14, 2013, DAVIS pleaded guilty to one count of assault with a dangerous weapon.
DAVIS is currently serving a 37-month sentence after having been convicted in the Northern District of Texas of being a felon in possession of a firearm. Judge Eginton ordered DAVIS to begin serving the 28-month prison term after she completes her original sentence.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
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(203) 821-3722 [email protected]Eleven Members of Yonkers Gang Charged in White Plains Federal Court with Narcotics Trafficking and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Charles Gardner, the Commissioner of the Yonkers Police Department, and George N. Longworth, the Commissioner of the Westchester County Department of Public Safety, announced today the unsealing of an Indictment charging 11 defendants with a series of crimes, including the distribution of narcotics and the use of firearms in Yonkers, New York.
U.S. Attorney Preet Bharara stated: “Our drive to remove armed drug gangs from Yonkers remains unrelenting, as evidenced by today’s arrests and charges. With motivated and cooperative law enforcement partners involved, we are a step closer to our goals.”
FBI Assistant Director-in-Charge George Venizelos stated: “Combating the scourge of drugs in our cities remains a focus for this office. Like we’ve seen so many times before, these drugs also brought guns and violence. We will continue to work with any law enforcement agency to clean up our cities’ streets.”
Yonkers Police Commissioner Charles Gardner stated: “This operation is yet another example of our successful partnership with federal authorities in targeting a violent street gang on a local level. It should be a warning to any other groups in Yonkers who choose to engage in this activity. I want to thank U.S. Attorney Preet Bharara, the F.B.I. and the Westchester County Department of Public Safety for their efforts in this investigation.”
Westchester Public Safety Commissioner George N. Longworth stated: “This is another example of the tremendous results that occur when federal and local law enforcement work together to maximize our resources to combat drug trafficking and the violence that goes along with it. We remain committed to working with all our law enforcement partners to keep the people of Westchester safe.”
A two-count Indictment, United States v. Joaquin Thatcher, et al., charges 11 members and associates of a violent street gang hailing from Riverdale Avenue, known both as “Two Gunz Up” and simply “Riverdale,” with narcotics and firearms offenses. Specifically, the following 11 members of Two Gunz Up – JOAQUIN THATCHER, a/k/a “Wu,” PAUL FOSTER, a/k/a “Pauly Pistols,” CHARLIE JIMINEZ, a/k/a “350,” a/k/a “Gucci,” TORREL SMITH, a/k/a “Assassin,” CRAIG MAJOR, a/k/a “Millz,” REESE MOORE, a/k/a “Loc,” ANTHONY OLIVER, a/k/a “Ant Pooh,” DAQUON POWELL, a/k/a “DP,” DWAYNE CARR, a/k/a “Weezy,” JIMMIE HUGHES, a/k/a “Jim Jim,” and ALEXANDER MCCRAY, a/k/a “AWOL” – are charged with conspiring to distribute, and possess with intent to distribute, crack cocaine and marijuana from about 2006 up to about October 2013. Eight of these defendants are also charged with using, carrying, possessing, and discharging firearms during the narcotics conspiracy.
The Indictment is the result of a long-term investigation conducted by federal, state, and local law enforcement officers working with the United States Attorney’s Office for the Southern District of New York and supported by the Department of Justice’s Organized Crime and Drug Enforcement Task Force. As part of that investigation, in March 2009, this Office obtained Indictments charging three members of Two Gunz Up and the Elm Street Wolves, an allied Yonkers street gang -- Gregory Fuller, Davon Young, and Thomas Chambliss -- with the January 2008 murder of a narcotics dealer in northern Yonkers. Fuller, Young, and Chambliss were each convicted after trial of murder, conspiracy to distribute crack cocaine, robbery, and firearms offenses and were sentenced to 100, 65 and 45 years of imprisonment, respectively.
In August 2011, 66 Yonkers gang members – 47 members and associates of the Elm Street Wolves, 12 members and associates of the Cliff Street Gangsters and 7 other individuals -- were charged with narcotics trafficking and firearm offenses. Five of the Elm Street Wolves defendants were also charged with the murder of Christopher Cokley, a/k/a “Bracks,” a leading member of the Strip Boyz, a rival Yonkers gang. Each of those defendants has since been convicted, many of them facing mandatory minimum sentences of between 10 and 18 years of imprisonment. Only one of those defendants, Steven Knowles, the leader of the Elm Street Wolves, proceeded to trial. After trial, Knowles was convicted of murder, racketeering, narcotics and firearms offenses and now faces a mandatory term of life imprisonment.
Two Gunz Up, from Riverdale Avenue, has historically been aligned with other street gangs, including the Elm Street Wolves and the Cliff Street Gangsters, in a violent dispute with a number of rival gangs, including the Strip Boyz from the nearby Schlobohm Housing Project on Schroeder Street in Yonkers. In June 2012, 23 members and associates of the Strip Boyz were arrested and charged with narcotics trafficking and firearm offenses. Fifteen of these defendants have pled guilty, with all but one facing mandatory minimum sentences of between 5 and 12 years of imprisonment. The remaining cases are not yet resolved.
All 11 defendants charged in the Indictment unsealed today were arrested today or have previously been taken into custody. They were presented in White Plains federal court this afternoon. The case is assigned to United States District Judge Vincent L. Briccetti.
Mr. BHARARA praised the outstanding investigative work of the FBI and the Yonkers Police Department. He added that the investigation is continuing.
The prosecution is being handled by the Office’s White Plains Division and Violent Crimes Unit. Assistant U.S. Attorneys Scott Hartman and Andrew Bauer 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.
Riverdale Takedown.Indictment
Riverdale Takedown.IndictmentCharleston Man Indicted by A Federal Grand Jury for Child Pornography OffensesRead the Press Release
CHARLESTON, W.Va. – A Charleston man was indicted by a federal grand jury sitting in Charleston on Nov. 5 for child pornography offenses, announced U.S. Attorney Booth Goodwin. Stephen Wayne Laton, Jr., 40, was charged with production of child pornography and possession of child pornography. The two-count indictment alleges that in or around June 2010, Laton Jr. knowingly attempted to persuade, induce, entice, and coerce a minor to engage in sexual activity. The indictment also alleges that on February 6, 2013, Laton Jr. possessed images and videos of child pornography on his personal computer.
Laton faces up to 50 years in prison, if convicted.
The investigation was conducted by the FBI and the West Virginia State Police. Assistant United States Attorney Jennifer Rada is in charge of the prosecution.
The indictment 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.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
Border Patrol Agent and State Prison Guard Sentenced to Lengthy Prison Terms for Bribery, Drug Trafficking, and Murder SchemeRead the Press Release
PHOENIX, Ariz. – On November 5, 2013, Ivhan Herrera-Chiang, 31, a former U.S. Border Patrol agent, and Michael Lopez-Garcia, 30, a former state prison guard, were sentenced by U.S. Senior District Court Judge Paul G. Rosenblatt to prison terms of 15 years and 9 years, respectively, for their involvement in a plot to provide sensitive information to drug traffickers and to arrange for the murder of an informant. Both defendants had previously pleaded guilty to various charges arising from the scheme.
First Assistant U.S. Attorney Elizabeth A. Strange stated, “These defendants engaged in a profound betrayal of the public trust. The U.S. Attorney’s Office, working with our law enforcement partners, will continue to strive to ensure the integrity of every officer entrusted with the safety of the public. These sentences send a powerful message that we will not tolerate corruption within the law enforcement ranks.”
"What began as a drug smuggling investigation quickly became more complex when HSI special agents learned a federal agent was misusing his position of trust to facilitate the commission of crimes," said Matt Allen, special agent in charge of ICE Homeland Security Investigations (HSI) Arizona. "While his actions are atypical of the dedication and integrity demonstrated by the vast majority of those who serve, this sentence should nonetheless send a message about the serious consequences facing those who would exploit their positions and violate that special trust.”
FBI Special Agent in Charge Douglas G. Price, Phoenix Division stated, "When those who are entrusted to uphold the law choose to betray the trust of the America people by committing bribery and drug trafficking it tarnishes the badge of those who honorably serve and protect our country. Today's sentencing illustrates that justice was served in this matter. The FBI will continue to work with of law enforcement partners to combat public corruption at all levels."
“The lengthy sentences given to these defendants are very appropriate given their egregious crimes. When those entrusted to uphold the law sink to the level of criminals they pursue for financial gain, it is a sad day for those of us in the law enforcement community," stated IRS Criminal Investigation Special Agent in Charge Dawn Mertz.
As acknowledged in their plea agreements, the defendants formed a “criminal partnership” to earn money by helping traffickers smuggle drugs and aliens into the United States. As part of this multi-year partnership, Lopez-Garcia personally smuggled nearly two pounds of methamphetamine into the country (by hiding the drugs under his prison guard uniform as he crossed through the Port of Entry) and also attempted to smuggle thirty kilograms of cocaine into the country. Herrera assisted Lopez-Garcia (in return for bribes) by providing him with sensitive information—including sensor maps, combinations to gates located near the Mexican border, computer records concerning prior drug seizures, and the location of Border Patrol units—to which Herrera had access by virtue of his employment as a Border Patrol Agent.
During the final stages of the partnership, Lopez-Garcia attempted to arrange for the murder of a government informant after becoming fearful that the informant might be able to provide incriminating information about his activities. As part of this plan, Lopez-Garcia obtained confidential information concerning the informant’s identity from Herrera and then relayed this information to his Mexican trafficking associates.
The investigation in this case was conducted by the Department of Homeland Security- Office of Inspector General, Homeland Security Investigations, Homeland Security Investigations-OPR, the Federal Bureau of Investigation, Customs and Border Protection-Office of Internal Affairs, and the Internal Revenue Service, Criminal Investigation. The prosecution was handled by Dominic Lanza, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-177-PHX-PGR RELEASE NUMBER: 2013-084_Herrera&Lopez
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Blackfoot Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Blackfoot, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on November 4, 2013, by U.S. District Judge Charles B. Kornmann.
Stewart Bobtail Bear, Sr., age 42, was sentenced to 51 months of imprisonment, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bobtail Bear was indicted for the above charge by a federal grand jury on March 13, 2013. He pled guilty on August 2, 2013.
The conviction stems from an incident occurring on March 24, 2011, when Bobtail Bear was present at a family gathering in Little Eagle. As the evening progressed, various arguments started between different people at the gathering. Due to all these arguments, the victim decided to leave. As the victim was about to enter his car, Bobtail Bear attacked him from behind and struck him in the facial area. The victim received a broken nose as a result of the attack and was required to have surgery. The victim also now has a permanent blind spot in his left eye.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Bobtail Bear was immediately turned over to the custody of the U.S. Marshals Service.
Baltimore Police Officer Admits to Protecting A Heroin Dealer and Illegally Accessing Police Databases in Fraudulent Tax Refund SchemeRead the Press Release
Baltimore, Maryland - Baltimore Police officer Ashley Roane, age 26, of Pikesville, Maryland, pleaded guilty today to extortion and aggravated identity.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to her plea agreement, beginning in the fall of 2012, Roane and her roommate Erica Hughes engaged in a scheme whereby they provided the names and social security numbers of persons arrested by the Baltimore Police to an individual who could file false tax returns to obtain fraudulent tax refunds. Roane obtained the personal information of more than 30 people from law enforcement databases through her position as a Baltimore Police officer. Roane and Hughes provided the information to the individual, who they believed worked as a tax preparer, in addition to being a large scale heroin trafficker in Baltimore. The individual who the defendants believed was filing false tax returns and selling heroin was, in fact, an FBI cooperator.On April 4, 2013, FBI agents watched as Roane arrived in her marked police patrol car for a meeting with the individual to obtain a fraudulent tax refund payment. As directed by the individual, Roane retrieved an envelope containing $2,500 from the source’s vehicle. At a recorded meeting on April 24, 2013, the individual went to Roane’s house and gave Roane an additional $1,500 that the FBI had provided to the individual, purported to be a fraudulent tax refund.
Roane admitted that she also provided protection for the individual’s purported drug trafficking. For example, on March 31, 2013, Roane told the individual that she had performed an unauthorized criminal check of one of the individual’s alleged associates, to determine if the associate was a police informant, and the individual was “clean.” After Roane agreed to provide protection during drug transactions, on April 30, 2013, the FBI set up a controlled purchase by the individual of white powder which resembled a kilogram of heroin. The FBI watched while Roane, in uniform, armed with her service gun, and in a marked police car, provided protection while the individual purportedly retrieved heroin from a vehicle provided by the FBI. Shortly thereafter, at a prearranged meeting, the individual paid Roane $500 for her protection. Roane agreed to provide such protection again in a future transaction involving multiple kilograms of heroin.
During the course of the schemes, Roane and Hughes received $5,250 from the individual in what Roane believed was proceeds of fraudulent tax refunds. Roane also received a total of $1,000 in exchange for providing protection to the individual during what Roane believed were kilogram-level heroin transactions.
Roane and the government have agreed that if the Court accepts the plea agreement, a sentence of between 60 and 111 months is the appropriate disposition of the case. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for February 4, 2014 at 1:00 p.m.
Co-defendant Erica Hughes, age 26, of Pikesville, previously pleaded guilty to aggravated identity theft and is scheduled to be sentenced on January 14, 2014, at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter M. Nothstein, who is prosecuting the case.
Baltimore Felon Exiled to over 24 Years in Prison on Gun and Drug Charges Related to A Robbery ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Antonio Davis, age 33, of Baltimore, today to 295 months in prison, followed by five years of supervised release, for: a robbery and drug distribution conspiracy; conspiring to possess and possessing firearms in furtherance of a drug trafficking crime and a crime of violence; and for being a felon in possession of a gun.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
“The Drug Enforcement Administration, working in partnership with the Baltimore Police Department, continues to actively target extreme violent offenders like Davis in order to combat the drug violence in our city,” stated Assistant Special Agent in Charge Gary Tuggle, of the Drug Enforcement Administration’s Baltimore District Office. “This investigation emphasizes the proactive work that Special Agents undertake every day in an effort to remove violent offenders from the streets of Baltimore,” added ASAC Tuggle.
According to evidence presented at his four day trial, in the Fall of 2012, the DEA and Baltimore Police Department (BPD) received information that Davis, and his co-defendants Rodney Proctor, and Sean Thornton were armed drug traffickers and members of the Black Guerilla Family (BGF) gang. According to the individual providing the information, the defendants earned money by conducting robberies and kidnappings and were active in the Penrose neighborhood of Baltimore City.
On December 12, 2012, at the direction of law enforcement, a DEA confidential source was introduced to Davis, Proctor, Thornton, and Michael Johnson. The source claimed to be a drug dealer and discussed with Davis and his co-defendants robbing his source of supply of cocaine and dividing the stolen cocaine among the robbers. On December 20, 2012, Davis, Proctor, Thornton and Johnson picked up a fifth co-defendant, Jazmen Trusty, to carry out the robbery. As Davis drove the conspirators to the location of the purported robbery, law enforcement stopped their vehicle and arrested the defendants. They seized a latex glove, two black gloves and a black mask from Davis; a stocking cap and a loaded semiautomatic handgun from Proctor, as well as masks and caps from the other co-defendants.
According to trial testimony, at the time of his arrest, Davis had only recently been released on parole, after serving a 16 year sentenced for murder. In addition, Davis had proposed kidnapping the four-year-old child of a known drug trafficker and holding the child for ransom – a plan that was still in motion until the DEA source proposed a more lucrative alternative – the drug robbery. Finally, witnesses testified that Davis discussed the robbery and murder of the DEA source and proposed dumping the body in Harford County. In fact, Davis was picked up on recording equipment, that had been installed in the car he was driving to the robbery, discussing the robbery and murder of the DEA source.
Michael Johnson, age 33, Jazmen Trusty, age 20, Rodney Proctor and Sean Thornton, both age 21, all of Baltimore, previously pleaded guilty to their participation in the conspiracy. Proctor was sentenced to 11 years in prison and Johnson was sentenced to 90 months in prison. Jazmen Trusty is scheduled to be sentencing on November 12, 2013.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and James T. Wallner, who prosecuted the case.
Aracoma Contracting, Llc Enters Federal Guilty Plea for Structuring Millions in Cash Out of Bank of MingoRead the Press Release
Company involved in scheme to bilk BrickStreet Mutual Insurance out of millions in insurance premiums also structured over $2 million in cash out of Bank of Mingo
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin announced that Williamson, W.Va.-based employee leasing firm, Aracoma Contracting, LLC (“Aracoma”), pleaded guilty today to a federal charge in connection with a structuring scheme involving more than $2 million in cash withdrawals from the company’s bank accounts once held at a Mingo County bank. Top Aracoma executive, Jerome Edward Russell, 50, of Williamson, W.Va., pleaded guilty today, on behalf of the company, to conspiracy to structure currency transactions. “Structuring” involves the breaking down of cash transactions in amounts of $10,000 or less for the purpose of avoiding a financial institution’s reporting requirements to the Internal Revenue Service (IRS).
Russell and fellow Aracoma executive, Frelin R. Workman, 58, of Belfry, KY, previously pleaded guilty to their involvement in an honest services mail fraud scheme to defraud BrickStreet Mutual Insurance (BrickStreet) of insurance premiums and tax evasion. Russell and Workman were each previously sentenced in October to 2 ½ years in prison for their roles in the scheme.
Acting on behalf of Aracoma, Russell and Workman formed a longstanding relationship with the Bank of Mingo, and, particularly, one of its employees at the bank’s Williamson branch. From January 2009 through April 2012, Aracoma, through its representatives including Russell and Workman, structured at least $2.2 million out of Bank of Mingo. Russell and Workman also enlisted the assistance of a number of individuals who agreed to appear at the Williamson branch of Bank of Mingo and cash cashier’s checks. The cash from the bank withdrawals was later brought back to Aracoma’s office to be used to pay cash payroll.
During the scheme, Aracoma sent advance forms to the Williamson branch of Bank of Mingo prior to the structured cash withdrawals, so the bank could prepare the cash ahead of time. Bank of Mingo would then prepare cashier’s checks in the names of the identified individual or individuals and pre-count the requested cash. When an individual or individuals from Aracoma appeared at a Bank of Mingo teller window, a bank representative presented them with the cashier’s check in the individual’s name. The check was immediately endorsed and the individual was given the pre-counted cash.
Despite numerous occasions when multiple individuals appeared at the same teller window at the Williamson branch of Bank of Mingo to endorse cashier’s checks that exceeded $10,000 on Aracoma’s line of credit, Bank of Mingo routinely failed to file a currency transaction report, as required by law.
An investigation determined that the cash structured out of Bank of Mingo by Aracoma was used to pay the company’s payroll in cash, therefore avoiding the payment of employment taxes and also to make bribe payments to a former BrickStreet field auditor, Arville Sargent.Sargent, 52, of Chapmanville, previously pleaded guilty in March to honest services mail fraud and tax evasion. As a field auditor, Sargent purposely allowed four “employee leasing” companies, including Aracoma, to falsify documents drastically understating their actual payroll. In exchange for saving those policyholders millions of dollars in insurance premiums rightfully owed to BrickStreeet, Sargent accepted hundreds of thousands of dollars in cash bribes and other things of value, including a Yamaha Rhino all-terrain vehicle.
Sargent was previously sentenced in October to six years in federal prison.
Aracoma Contracting, LLC faces a maximum fine of up to $500,000 fine and a five-year term of probation at a sentencing hearing scheduled for January 15, 2014.
The FBI, the IRS, the West Virginia State Police and the West Virginia Insurance Commission conducted the investigations. This investigation was also handled in coordination with the United States Attorney’s Office for the Western District of Virginia and the IRS’s local Abingdon, Virginia Resident Agency. Assistant United States Attorney Thomas Ryan is in charge of the prosecutions.
Additional Conspiracy and Fraud Charges Filed Against Former Director of the Cleveland and Dayton VA Medical CentersRead the Press Release
A 65-count superseding indictment was filed today charging the former director of the Cleveland and Dayton VA Medical Centers with a scheme to enrich himself and his conspirators by working as a consultant for, and taking money from, a design firm pursuing more than $1 billion in VA contracts and sharing confidential information about VA construction projects while still employed by the VA, law enforcement officials said.
William D. Montague, 61, of Brecksville, was previously charged with conspiracy to commit honest services mail fraud, bribery, money laundering, multiple counts of wire fraud, mail fraud, disclosing public contract information and other charges. The charges unsealed today include conspiracy to commit honest services fraud, Hobbs Act conspiracy, violating the Hobbs Act and additional counts of mail and wire fraud.
“As a Veterans Affairs Medical Center Director, William Montague misled staff and misused his position to enrich himself and businesses pursuing contracts with the Veterans Administration,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The new charges against Montague reflect law enforcement’s continued dedication to root out corruption at any level.”
“VA directors who use their official position for personal enrichment will be held to account,” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland. “Our nation’s veterans deserve public officials and contracts who serve veterans’ needs and not their own.”
Montague served as director of the Cleveland VA Medical Center from 1995 until Feb. 3, 2010. On March 11, 2011, Montague began working as director of the Dayton VA Medical Center, a position he held through Dec. 17, 2011, according to the indictment.
The superseding indictment details interactions between Montague and a company identified as Business 75, an integrated design firm with offices throughout the United States, including New York, Illinois, Virginia, Missouri and California. The company performed work for the VA directly and through its participation in joint ventures and other teaming agreements, according to the indictment.
From January 2010, Montague, Business 75 and employees of the company conspired to defraud the VA of its right to the honest and faithful service of Montague through bribery and kickbacks, and to defraud the VA and other potential VA contractors by means of false and fraudulent pretenses, according to the indictment.
Montague secretly used his position as Dayton VA Medical Center director to enrich himself and his designees (including House of Montague, a company Montague operated) by soliciting and accepting gifts, payments and other things of value from Business 75 in exchange for favorable official actions, according to the indictment.
Montague solicited money and a consulting contract from Business 75 in exchange for information related to VA contracts and projects, which would benefit Business 75, Business 75’s principal and their designees, according to the indictment.
This was done to give Business 75 an advantage in obtaining VA contracts and projects. Montague gave false and misleading information to VA employees about his reasons for requesting VA documents and information, according to the indictment.
For example, on March 1, 2011, Business 75 issued a $20,000 check payable to Montague, which he deposited into the House of Montague’s account. Ten days later, Business 75’s principal sent an email to some employees with Montague’s consulting agreement explaining: “His job is to help us bring in more work from the VA, in part by helping us access key decision makers,” according to the indictment.
On March 14, 2011, Business 75’s principal sent another email to some employees stating that Business 75 will end the current “$15 [million VA] IDIQ contract with just slightly over $12M in sales. $3M in fee, therefore, will be left on the table…[O]ne of MONTAGUE’s jobs will be to fill up the bucket by directing task orders toward our contract, Going forward, we have two $15M buckets to fill (Central and Eastern regions). That’s a lot of shoveling to get to $30M…BILL has the relationships to help us maximize the contracts…On the VA ‘major construction’ front here is the list of medical centers and their approximate construction cost in the pipeline: West Los Angeles, CA: $750M; San Francisco, CA: $125M, Reno, NV: $115M, Alameda, CA: $225M. Montague told us about these before they were advertised, which has allowed us to get an early start in developing the team. If we bring him on board, he can help us pull in one or two of these large projects,” according to the indictment.
According to the indictment, on or about April 5, 2011 at approximately 5:50 p.m., Montague sent Business 75’s principal an email from Montague=s sbcglobal.net email account, with a subject line AMajor Construction.@ The email body indicated, AAs promised.@ On or about June 21, 2011 at approximately 11:12 a.m., Business 75 Principal forwarded the email to Business 75 Employee 7, writing, AThis is confidential. Please don=t distribute. This document is not classified or secret, but it is not intended for public distribution.@ Business 75 Principal attached a file entitled, “Detail of Request.docs.”
On or about July 30, 2011, in response to an email Business 74 employee, BE76, sent on or about July 28, 2011 suggesting that Business 74 “put on hold [Montague’s] quarterly stipends,” Montague sent an email from his sbcglobal.net email account to Business 74 employee, BE76, with a carbon copy to Business 74 employee, BE75, with a subject “Re: VA contract update.” Montague informed Business 74 “I have had dificulty [sic] figuring out what [Business 74] wants or needs. I have just, for example, obtained the priority scored list of all scored projects for next fiscal year. It is unpublished and unavailable elsewhere. This is considered the motherlode [sic] by my other clients, all of whom pay more than $5000 a quarter. These lists would be excellent examples of a project by project system. This is every project in the entire VA in priority order by category. I also have obtained all planned Major projects through 2022,” according to the indictment.
On or about September 12, 2011 at approximately 2:24 p.m., Business 75 Principal sent an email to Business 75 employees in response to a previous email sent by another Business 75 employee on September 6, 2011 at approximately 9:48 p.m., which announced Business 75=s selection as the architect and engineer for the VA West LA VAMC. Business 75 Principal wrote:
AI=m reminded B as I approve Bill Montague’s invoiceBthat it was Bill Montague (our VA consultant) who alerted me to this project at West LA. I think we may have won this with or without Bill=s early warning, but getting in early on a large VA pursuit is critical. We currently are working four large FY13 VA project leads worth over $1B in aggregate based on information that Bill has provided. I would not have been able to find out what was in the Administration=s FY13 budget until early February, when it is sent to Congress. I think we are ahead of virtually all our competitors on these four. Bill has arranged for a meeting with the medical center director at one of the four locations (Lexington). Business 75 Employee 10 will attend this meeting. The risk is that not all four of these leads may make it into the final version of the bill. But so far, Bill=s info has proved accurate. . . . I would not have come up with this information on my own, regardless of how many hours I invested. I just don=t have access to the VA staffers that control the money. He has the relationships within Capital Asset Managements. Our contacts are all within CFM. So in my opinion, BILL=s contacts and experiences broadens [sic] our understanding of VA Processes and expands our relationships.@
On or about September 13, 2011 at approximately 3:46 p.m., in response to an email from Business 75 Employee 6 to Business 75 Principal and Business 75 Employee 5 asking whether Business 75 would expect to keep Montague=s $30,000 per year consulting contract in light of Business 75=s plan to pursue a marketing person to work with Business 75 Principal in the Federal market, Business 75 Principal replied, AYes, I may want both for a period of time. But I do not see BILL=s contract as running on forever . . . Currently, BILL is the interim Medical Director of VA Dayton. As such, he has extraordinary access right now to information. When that position ends, his access and influence will begin to diminish,@ according to the indictment
On or about September 14, 2011 at approximately 3:46 p.m., Business 75 Employee 5 replied to Business 75 Principal=s email, and included Business 75 Employee 11, AInteresting mathB At $30k per year for BILL, we would have to win [$]300,000 in VA fee[s] every year ($30k profit) for us to break even. I think VA West LA is worth $20,000,000,@ according to the indictment.
Montague further engaged in self-dealing by double-billing the VA and his consulting clients for the same travel expenses. For example, the superseding indictment charges that on May 26, 2011, Montague travelled to Washington DC on official VA business. On June 17, 2011, he caused to be submitted a government expense report seeking reimbursement for $1,204 for hotels, hotel taxes, parking, per diems and other expenses. On June 12, 2011, Montague caused to be sent a $2,741 invoice to Business 75 for “consulting services” for work performed at “Wash/Cleve/Dayton.” The invoice included $211 for hotel and $30.60 for hotel taxes incurred on May 26, 2011, according to the indictment.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Nancy L. Kelley following an investigation by the FBI and United States Department of Veterans Affairs – Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment 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.
Aberdeen Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that an Aberdeen, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on November 4, 2013, by U.S. District Judge Charles B. Kornmann.
Katlin Vine Tiger, age 22, was sentenced to 21 months of imprisonment, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Tiger was indicted for the above charge by a federal grand jury on December 11, 2012. He pled guilty on July 29, 2013.
The conviction stems from an incident occurring on August 25, 2012, when Tiger and another person accompanied the victim to a private residence. While they were walking, Tiger and the other male assaulted the victim with their fists until he fell to the ground. Once the victim fell to the ground, they began kicking him about the head and body. As a result of the attack, the victim suffered a severe concussion, loss of consciousness, and facial bruising. At the time of the attack, Tiger was wearing steel-toed boots.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Tiger was immediately turned over to the custody of the U.S. Marshals Service.
5 November 2013
Virginia Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual ConductWith A Minor and Receipt of Child PornographyRead the Press Release
WASHINGTON – Nicholas Hanlon, 28, of Stafford, Va., pled guilty today to one count of traveling interstate to engage in illicit sexual conduct with a minor and two counts of receipt of child pornography.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Earl L. Cook, Chief of the Alexandria Police Department, Alexandria, Va.
Hanlon entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Gladys Kessler is to sentence him on Jan. 23, 2014. Hanlon faces a maximum of 30 years of imprisonment for traveling interstate to engage in illicit sexual conduct and a sentence of not less than five years and not more than 20 years of imprisonment for each of the counts related to his receipt of child pornography, as well as fines of up to $250,000 on each count.
According to the government's evidence, on April 25, 2013, a member of the FBI's Child Exploitation Task Force, a detective from the Alexandria Police Department, was contacted by the parent of an under-aged female who was concerned that the child had been engaged in illicit text message conversations with Hanlon and others. The task force member, in an undercover capacity, began communicating with Hanlon, who believed the officer was the child.
Over the next few days, Hanlon engaged in text messaging with the undercover officer. During this period of time, Hanlon arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On April 25, 2013, Hanlon traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested. Subsequent to his arrest, law enforcement searched Hanlon’s computer and cell phone. Pursuant to that search, law enforcement found evidence that Hanlon had been communicating via text message and email with multiple young girls. Specifically, law enforcement recovered evidence that Hanlon received explicit videos from a female child from Missouri and from a 15-year-old from Virginia.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave, Chief Lanier, and Chief Cook praised the work of the MPD and Alexandria Police Detectives and Special Agents of the FBI Child Exploitation Task Force. Finally, they commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-378Utah Man Pleads Guilty for Threatening CEORead the Press Release
DENVER – Robert Hutchins, age 60, of Sandy, Utah, pled guilty yesterday before Chief U.S. District Court Judge Marcia S. Krieger to interstate communications involving a threat, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Hutchins appeared at the change of plea hearing free on bond. Hutchins is scheduled to be sentenced on February 10, 2014. He was originally indicted by a federal grand jury in Denver on July 10, 2013.
According to the stipulated facts contained in the plea agreement, in 2012, the United States Anti-Doping Agency (USADA) had been investigating allegations that cyclist Lance Armstrong had achieved his prodigious record by cheating; by “doping” and using drugs and other improper means to win. As the investigation heated up in the summer of 2012, Chief Executive Officer of USADA, Travis Tygart, received a barrage of negative public comment, mostly via emails, about USADA’s investigation. In August 2012, it was anticipated that USADA would announce its findings, including that Lance Armstrong would banned from cycling for life. On August 23, 2012, Lance Armstrong released a press statement that he would not challenge USADA’s findings. The negative emails intensified. On August 24, 2012, USADA, as predicted, made the announcement that Lance Armstrong would be banned from cycling for life and disqualified of all his competitive results from August 1, 1998, through August 24, 2012. This disqualification included being stripped of his seven Tour de France titles.
Among the members of the public who were angry over USADA’s methods and conclusions was the defendant, Mr. Hutchins. Beginning in July 2012, Mr. Hutchins sent two emails USADA voicing his displeasure. Those emails, while scathing in tone and full of invective, were not threatening.
On the evening of August 23, 2012, Mr. Hutchins crossed the line and made threats to Travis Tygart. The email was sent to one of USADA’s email addresses with the subject line “Travis Tygert [sic] Hope you have body guards and bullet proof vest.” The email read as follows:
Travis Tygert [sic], Hope you have body guards and bullet proof vest, your [sic] a dead man mother f@%&*#. You just don’t know what you’ve done!!!
You’re a** is f@%&*#.The email was traced to Mr. Hutchins in Sandy, Utah. As a result of the threatening email sent on August 23, 2012, Mr. Travis Tygart hired private security for himself and his family, and moved his family to a secure location while the FBI investigated the source of the threat.
Hutchins faces not more than 5 years in federal prison, and up to a $250,000 fine.
In an unrelated case, Gerrit Kuechle Keats, a Florida doctor, pled guilty on October 7, 2013 to sending threatening communications over the internet to Mr. Tygart for similar reasons. Keats is scheduled to be sentenced by U.S. District Court Judge R. Brooke Jackson on January 23, 2014.
This case was investigated by the FBI.
The defendant is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
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University Place Tax Preparer Sentenced to 30 Months in Prison for Scheme Resulting in more than $4 Million in Tax LossRead the Press Release
A former tax preparer who enriched himself by filing false tax returns for low income people was sentenced today in U.S. District Court in Tacoma to 30 months in prison, three years of supervised release and $2.4 million in restitution for a false claims conspiracy, announced U.S. Attorney Jenny A. Durkan. CLEO J. REED, 62, operated We ‘B’ Tax Service in University Place, Washington from October 2007, until July 2010. During that time period REED filed more than 1300 fraudulent tax returns resulting in a tax loss of $4.2 million. REED took a cut of the fraudulently inflated tax refunds he claimed for his clients. At sentencing U.S. District Judge Benjamin H. Settle ordered REED to serve six months of home detention as part of his supervised release following his prison term.
“This defendant made tax cheats and criminal conspirators of the poor to enrich himself,” said U.S. Attorney Jenny A. Durkan. “By submitting the false returns he raided the federal treasury, taking money away from the very programs that could help these families move from welfare to work.”
According to records filed in the case, REED operated a scheme where he had co-conspirators recruit low income clients for whom he could prepare false tax returns. REED would inflate the wages the clients allegedly earned, so that they could maximize their refund under the Earned Income Tax Credit. REED paid the recruiters a fee for each low income person they brought in to the scheme. REED submitted their tax returns at times without even meeting or speaking to the client. When the tax refund was approved by the Internal Revenue Service, REED kept a portion of the refund as his fee. The large number of returns filed by REED claiming an Earned Income Credit triggered the investigation of his business. Undercover agents posing as clients met with REED and he described how he would falsify their income to boost their tax returns. He also discussed how he put recruiters to work – paying young single mothers to find him other single moms to expand the scheme.
The IRS searched REED’s office on April 15, 2010. He pleaded guilty in March 2013.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and was prosecuted by Assistant United States Attorney Arlen Storm.
Two Defendants Plead Guilty in SchemeTo Steal Trailer-load of GoodsRead the Press Release
WICHITA, KAN. – Two defendants from North Hollywood, Calif., have pleaded guilty in a scheme to steal a load of processed beef from a meatpacker in southwest Kansas, U.S. Attorney Barry Grissom said today.
Oganes Nagapetian, 53, pleaded guilty to one count of conspiracy to commit interstate shipment fraud. His brother, Tigran Nagapetian, 50, pleaded guilty to one count of knowing about the crime and attempting to conceal it from authorities.
In his plea Oganes Nagapetian admitted that in November 2011 he and other conspirators began planning to steal a load of packaged beef valued at $87,500 from the Tyson Fresh Meats, Inc., plant in Holcomb, Kan. First, an unidentified co-conspirator faxed documents from California to a freight broker in Ohio to bid on a contract to haul the load from Holcomb to Vernon, Calif. The conspirators pretended to represent Alan J. Doyle Trucking. On Nov. 3, 2011, Oganes Nagapetian posed as a driver for the company and dropped off a 55-foot refrigerated trailer at the Tyson plant to be loaded with beef and shipped to a meat wholesaler in Vernon, Calif.
Oganes Nagapetian was accompanied by his brother, Tigran Nagapetian. What the defendants did not know was that the freight broker had become suspicious and notified the FBI, which was monitoring the attempt to pick up the load. On Nov. 4, 2011, while waiting for the trailer to be loaded, the defendants became suspicious that they were under surveillance by law enforcement and fled the area in a tractor they had used to drop of the trailer. A Kansas Highway Patrol officer stopped the tractor about an hour later on US 83 in Haskell Country. In the truck, investigators found documents used in the crime. Tigran Nagapetian told troopers that he and his brother were headed to Oklahoma to purchase a trailer, which he knew was not true. He did not make known to law enforcement that Oganes had attempted to steal a trailer of packaged meat.
Sentencing is set for Jan. 27. Oganes Nagapetian faces a maximum penalty of five years in federal prison and a fine up to $250,000. Tigran Nagapetian faces a maximum penalty of three years in federal prison and a fine up to $250,000.
Grissom commended the U.S. Dept. of Agriculture – Office of Inspector General, the FBI, Homeland Security Investigations, the Kansas Highway Patrol, the Los Angeles County Sheriff’s Dept. and its Cargo Cats unit, the Finney County, Kan., Sheriff’s Dept., the California Highway Patrol Cargo Theft Interdiction Program, the National White Collar Crime Center, the National Insurance Crime Bureau and Assistant U.S. Attorney Brent Anderson for their work on the case.Trio from Rio Arriba County Face Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – A federal grand jury has indicted three men from Rio Arriba County, N.M., on heroin trafficking charges.
The five-count indictment, which was filed on Oct. 30, 2013, charges Jose Enrique Ontiveros-Soto, 33, a Mexican national unlawfully in the United States and residing in Arroyo Seco, N.M., Jorge Acosta-Sanchez, 20, of Espanola, N.M., and Guadalupe Alcantar, 19, of Medanales, N.M., with participating in a conspiracy to distribute heroin in Rio Arriba County between Aug. 22, 2013 and Sept. 25, 2013.
The indictment also includes four substantive heroin distribution offenses. Count 2 charges Acosta-Sanchez and Alcantar with distributing heroin on Aug. 22, 2013. Count 3 charges Ontiveros-Soto and Alcantar with distributing heroin on Aug. 28, 2013. Count 4 charges Ontiveros-Soto and Acosta-Sanchez with distributing heroin on Sept. 11, 2013, and Count 5 charges Ontiverso-Soto only with distributing heroin on Sept. 25, 2013.
Ontiveros-Soto and Alcantar were arrested on Nov. 1, 2013, and made their initial appearances in federal court yesterday. This morning, both men were arraigned on the indictment and ordered detained pending trial. Acosta-Sanchez was arrested yesterday and made his initial appearance in federal court this morning. He remains in custody pending a detention hearing scheduled for tomorrow.
If convicted on the charges in the indictment, the defendants each face a prison term of not less than five years and not more than 40 years. Indictments are merely accusations and defendants are presumed innocent unless and until convicted beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA, the New Mexico State Police and the HIDTA Region III Multi-Jurisdictional Task Force, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
The HIDTA Region III Multi-Jurisdictional Task Force (Region III) is comprised of officers from the New Mexico State Police, Santa Fe Police Department and the Santa Fe Sheriff’s Office. Region III was first funded in 1999 to address the heroin problem in Rio Arriba and Santa Fe Counties, an area that leads the nation in per capita heroin-related overdose deaths. It is an investigative/enforcement initiative that targets and dismantles poly-drug (primarily heroin and cocaine) trafficking organizations. Region III is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Topeka Man Pleads GuiltyTo Making Pipe BombRead the Press Release
TOPEKA, KAN. – A Topeka man has pleaded guilty to making a pipe bomb, U.S. Attorney Barry Grissom said today.
Joseph E. Rogers, 36, Topeka, Kan., pleaded guilty to one count of making a destructive device. In his plea, he admitted that on Nov. 12, 2012, officers of the Topeka Police Department stopped him and co-defendant Kyle C. Roe, 29, Topeka, Kan. Roe was immediately taken into custody on an active felony warrant. Roe told police that he had a bomb in his pocket.
When Rogers was interviewed, he told investigators that he had constructed explosive devices for the entertainment value. Rogers talked about using PVC pipe, wrapped in tape and filled with smokeless powder removed from ammunition.
Rogers is set for sentencing Jan. 27. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Co-defendant Kyle C. Rogers pleaded guilty to one count of possessing a destructive device. He is set for sentencing Nov. 26. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Topeka Police Department and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Three More Defendants Sentenced in Staged Automobile Accident SchemeRead the Press Release
92 defendants have been charged to date in Operation Sledgehammer I-VI
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, Florida Department of Financial Services, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce that defendants Aaron Freedlander, 51, licensed Chiropractic Physician, of Broward County, Florida, Luis Ivan Hernandez, 40, clinic owner, in Miami-Dade and Palm Beach County, Florida, and Daviel Castro, 27, staged accident participant, check casher and recruiter, of Palm Beach County, Florida were sentenced yesterday by U.S. District Judge Kenneth A. Marra for their participation in an automobile insurance fraud scheme involving staged automobile accidents. Aaron Freedlander was sentenced to 40 months in prison, followed by two years of supervised release; Luis Ivan Hernandez was sentenced to 108 months in prison, followed by three years of supervised release; and, Daviel Castro was sentenced to 58 months in prison, followed by two years of supervised release. In addition, Freedlander was ordered to pay $900,697.92 in restitution; Hernandez was ordered to pay restitution in the amount of $4,232,248.04; and, Castro was ordered to pay $1,359,208.73 in restitution. Freedlander will also be required to surrender his chiropractic license.
Each of the defendants previously pled guilty to one count of conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 1341, all in violation of Title 18, United States Code, Section 1349; and multiple counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2. In addition, Hernandez and Castro were charged with one count of conspiring to commit money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1), all in violation of Title 18, United States Code, Section 1956(h). Hernandez was also charged with multiple counts of money laundering, and Castro was charged with one substantive count of money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(A)(i), 1956(a)(1)(B)(i), 1956(a)(1)(B)(ii), and 2.
According to court documents, between approximately October 2006 and December 2012, the conspiracy members staged automobile accidents by recruiting individuals to participate in the accidents. Daviel Castro served as an accident participant and also recruited others to participate in staged accidents. The participants were referred to as “Perro” and “Perra” or “Macho” and “Hembra.” Thereafter, the clinic owners, including defendant Luis Ivan Hernandez, caused the submission of false insurance claims through chiropractic clinics that were controlled by members of the conspiracy. To execute the scheme, the true owners of the chiropractic clinics recruited individuals, who had the medical or chiropractic licenses required by the state to open a clinic, to act as “nominee owners” of the clinics. The co-conspirators also hired complicit chiropractors, including Aaron Freedlander, and therapists who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme. Luis Ivan Hernandez was the “true owner” of six of those clinics.
Furthermore, according to court records, once fraud proceeds were received from the insurance companies, the clinic owners, including Luis Ivan Hernandez also recruited individuals including Daviel Castro, to help the clinics launder the insurance proceeds. Sentencing documents showed that Castro cashed checks worth $27,899.35 in laundered proceeds.
Starting with Operation Sledgehammer I in June 2011 and including the defendants charged in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney's Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney's Office.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney's Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney's Office.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Sioux Falls Man Sentenced for Bank RobberyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of robbing a bank at gunpoint was sentenced on November 4, 2013, by Senior U.S. District Judge Charles B. Kornmann.
Nathan Michael Reisetter, age 39, was sentenced to 117 months in custody. He received 57 months for Bank Robbery and 60 months for Possession of a Firearm in Relation to a Federal Crime of Violence, to be served consecutively. He will be under supervised release for 5 years upon his release from custody. He was fined $12,500 and ordered to make restitution of $26,355.
Reisetter was indicted by a federal grand jury on March 19, 2013, on both counts and pled guilty on August 13, 2013.
On January 2, 2013, Reisetter entered First Bank and Trust in Toronto and used a 9mm handgun to intimidate the two tellers present. He handed one of the bank tellers a garbage bag and told her to fill it with money from the vault. Once the Defendant had the bag of money and while still holding the firearm, he directed the tellers to a back room of the bank and fled.
This case was investigated by the Deuel County Sheriff's Office, the South Dakota Division of Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorney John E. Haak prosecuted the case.
Reisetter was immediately turned over to the custody of the U.S. Marshals Service.Shiprock Man Pleads Guilty to Assaulting a Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Victor Tyler, 44, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to an assault with a dangerous weapon charge under a plea agreement with the U.S. Attorney’s Office.
Tyler was arrested on Aug. 20, 2013, based on a criminal complaint charging him with assault with a dangerous weapon. Tyler subsequently was indicted and charged with that same charge and also with assaulting a federal officer with a dangerous weapon and inflicting bodily injury.
This morning, Tyler pleaded guilty to Count 1 of the indictment charging him with assault with a dangerous weapon. In his plea agreement, Tyler admitted that on Aug. 16, 2013, officers of the Navajo Nation Division of Public Safety came to his Shiprock residence in response to his wife’s call for assistance. At the time, Tyler had armed himself with two kitchen knives and locked himself into a bedroom. After two uniformed officers entered the residence, Tyler came out of the bedroom with the knives, ignored the officers’ repeated instructions that he drop the knives, and threw one of the knives at one of the officers. The knife struck the officer in the foot, causing injury to her foot.
Tyler has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Tyler faces a maximum penalty of ten years in prison.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Mark T. Baker.
Seven Panhandle Residents, Who Were Arrested in Law Enforcement Operation in September 2013, Plead Guilty to Federal Charges TodayRead the Press Release
AMARILLO, Texas — Seven defendants, who were arrested in an Organized Crime Drug Enforcement Task Force Operation (OCDETF) in September 2013, appeared in federal court today, before U.S. District Judge Mary Lou Robinson, and pleaded guilty to various drug and drug-related offenses.
Miguel Carrasco, 33, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
Conrad Nava, aka “Chauncy,” 36, pleaded guilty to one count of operating an illegal gambling business. He faces a maximum statutory penalty of five years and a $250,000 fine.
Jessie Herrera, Jr., 34, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
Traci Michelle Ramos, 23, pleaded guilty to one count of distribution and possession with intent to distribute five grams or more of methamphetamine and aiding and abetting. She faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
Curtis Gonzales, 35, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substances. He faces a maximum statutory penalty of not less than 10 years and up to life in prison and a $10 million fine.
Shannon Drell Harris, aka “Shawn,” 43, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine. He faces a maximum statutory penalty of 20 years in prison and a $1 million fine.
Thiraphong Vongphrachanh, 22, pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting. He faces a maximum statutory penalty of not less than five years and up to life in prison and a $250,000 fine.
Last week, three defendants in that OCDETF Operation and a related case pleaded guilty. Floyd Daniel Teafatiller, 32, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine. Arcel Vega Martinez, 40, pleaded guilty to one count of unlawful use of a communications facility. He faces a maximum statutory penalty of not more than four years in prison and a $250,000 fine. Richard Anthony Rios, 36, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
The investigation involved undercover purchases and search warrants. In total, throughout the investigation, approximately $500,000 in cash, three kilograms of cocaine, 20 pounds of methamphetamine and six firearms were seized.
The remaining four defendants are set for trial on January 6, 2014.
The investigation is being led by the DEA and FBI, along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Potter and Randall County Sheriff’s Offices, the Potter and Randall County Attorney’s Offices, the Potter and Randall County District Attorney’s Offices, the Amarillo Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorneys Jeffrey R. Haag, Christy Drake and Vicki Lamberson are in charge of the prosecution.
Rochester Man Sentenced on Drug ChargesRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Mohammed Abdeldayem, a/k/a “Mike,” 34, of Rochester N.Y., who was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, was sentenced to 10 in years prison by U.S. District Judge David G. Larimer.
Assistant U.S. Robert A. Marangola, who handled the case, stated that Abdeldayem, who operated a convenience store on Norton Street in Rochester, was responsible for the distribution of cocaine in Rochester that was trafficked in kilogram quantities from New York City.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Greater Rochester Area Narcotics Enforcement Team, under the direction of Lieutenant Gerald Smith, and the Monroe County District Attorney's Office under the direction of Sandra Doorley.Richland County Man Sentenced to 28 Years in Federal Prison on Methamphetamine Related ChargesRead the Press Release
A Richland County man was sentenced on November 1, 2013, to twenty eight years in federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
“Let us hope that these extremely long, but well deserved, federal sentences can do something to persuade folks that meth is a scourge on Southern Illinois. I cannot understate the terrible effect that meth has on people.” said United States Attorney Wigginton.
Marty Cody Stacy, 47, of Calhoun, IL, was sentenced to 336 months in prison (28 years), eight years of supervised release following his imprisonment, and fined $250. Stacy was convicted following a trial of all five counts in an Indictment. Count 1 charged that from August 2010, to on or about May 30, 2012, in Richland County, Stacy conspired with others known and unknown to the grand jury to manufacture more than 50 grams of methamphetamine. Counts 2-5 charged that Stacy possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine on the dates of May 30, 2012 (Count 2), February 8, 2012 (Count 3), October 25, 2011 (Count 4), and October 11, 2011 (Count 5).
The investigation was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Queens Check Cashing Company and Its Owner Plead Guilty in $19 Million SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Belair Payroll Services, Inc. (“Belair”), a now defunct, multi-branch check cashing company based in Flushing, New York, and its owner, Craig Panzera, 47, pled guilty to failing to follow reporting and anti-money laundering requirements for over $19 million in transactions, in violation of the Bank Secrecy Act (BSA). Panzera also pled guilty to conspiring to defraud the United States by willfully failing to pay income and payroll taxes. As part of the guilty plea, Belair will forfeit $3,267,252.10, and Panzera will pay restitution in the amount of $946,841.17 to the IRS.
The guilty pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Department of Homeland Security, Immigration and Customs Enforcement (ICE) Acting Director John Sandweg; and Chief of the Internal Revenue Service Criminal Investigation (IRS-CI) Richard Weber. The pleas were accepted by United States District Judge Frederic Block.
“As today’s guilty pleas make clear, Panzera used the hard working residential community of Queens as a cover for his illegal schemes. Under the guise of offering much needed financial services to the community, Panzera instead operated Belair as a crooked enterprise, hiding illicit transactions, lining his own pockets and evading taxes,” stated United States Attorney Lynch. “We are committed to working with our law enforcement partners to expose and eradicate money laundering and tax fraud from our communities.” Ms. Lynch thanked the Department of Justice, Criminal Division, Fraud Section, ICE and IRS-CI for their work on the investigation.
According to court filings, from June 2009 through June 2011, numerous checks drawn on bank accounts of shell corporations were presented to Belair employees to be cashed at Belair. The checks appeared to be related to health care services, but in fact, the corporations did no legitimate business. The shell corporations and the corresponding bank accounts on which the checks were written were established in the names of foreign nationals, many of whom were located overseas. Belair accepted the checks and, in return, provided cash in excess of $10,000 per check. Panzera and others at Belair intentionally failed to require or obtain identification documents or information from the individuals presenting the checks. Belair filed CTRs falsely stating that the checks were cashed by the foreign nationals who set up the shell corporations, and with respect to certain CTRs, failed to indicate the full amount of cash provided to the individuals. More than $19 million in checks were cashed through Belair during the course of the scheme. By systematically cashing checks in this manner, Panzera and Belair willfully failed to maintain an effective anti-money laundering program. Prior to the indictment, Belair had operated five check cashing stores in Queens.
The charges in the indictment against Panzera and Belair’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Patricia E. Notopoulos and Trial Attorneys Claiborne W. Porter, Kevin G. Mosley and Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS).
The Defendants:
BELAIR PAYROLL SERVICES, INC.
Flushing, New YorkCRAIG PANZERA
Age: 47
Naples, FloridaE.D.N.Y. Docket No. 11-CR-591 (S-1)
Orlando, Fla., Area Hospice to Pay $3 Million to Resolve Allegations That It Billed Medicare for Patients Not Terminally IllRead the Press Release
Hospice of the Comforter Inc. (HOTCI) has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare program for hospice services provided to patients who were not eligible for the Medicare hospice benefit, the Justice Department announced today. HOTCI is headquartered in Altamonte Springs, Fla., and provides hospice services to patients residing in Seminole, Osceola and Orange counties in Florida.
“This settlement is a result of the Justice Department’s continuing efforts to prevent the abuse of the taxpayer-funded Medicare hospice program, which is intended to provide comfort and care to terminally ill persons during the last six months of their lives,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will pursue those who seek to misuse this important benefit for their own enrichment.”
The government alleged that between December 2005 and December 2010, HOTCI engaged in practices that resulted in billing Medicare for patients who were not terminally ill. Specifically, HOTCI allegedly directed its staff to admit all referred patients without regard to whether they were eligible for the Medicare hospice benefit, falsified medical records to make it appear that certain patients were eligible for the benefit when they were not, employed field nurses without hospice training, established procedures to limit physicians’ roles in assessing patients’ terminal status and delayed discharging patients when they became ineligible for the benefit.
As part of this settlement, HOTCI has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to promptly detect and prevent future conduct similar to that which gave rise to the settlement. In addition, HOTCI’s former Chief Executive Officer Robert Wilson has agreed to a three-year, voluntary exclusion from Medicare, Medicaid and other federal health care programs.
“This settlement represents a fair and appropriate resolution of this troubling matter,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Hospice providers in our district should be on notice that our office will do what it takes to protect our citizens from this kind of misconduct.”
“Hospice care is a sacred trust from which no provider should fraudulently profit,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Claiming tax dollars for people who are not terminally ill ?? and therefore ineligible for hospice care ?? cannot be tolerated.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $16.7 billion through False Claims Act cases, with more than $11.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The allegations settled today arose from a lawsuit filed by a former HOTCI employee, Douglas Stone, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Stone’s share of the recovery has not been determined.
This matter was handled by the Justice Department’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of the Inspector General.
The case is United States ex rel. Stone v. Hospice of the Comforter Inc ., No. 6:11-cv-1498-ORL-22-DAB (M.D. Fla.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Orlando, FLA., Area Hospice to Pay $3 Million to Resolve Allegations That It Billed Medicare for Patients Not Terminally IllRead the Press Release
WASHINGTON – Hospice of the Comforter Inc. (HOTCI) has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare program for hospice services provided to patients who were not eligible for the Medicare hospice benefit, the Justice Department announced today. HOTCI is headquartered in Altamonte Springs, Fla., and provides hospice services to patients residing in Seminole, Osceola and Orange counties in Florida.
“This settlement is a result of the Justice Department’s continuing efforts to prevent the abuse of the taxpayer-funded Medicare hospice program, which is intended to provide comfort and care to terminally ill persons during the last six months of their lives,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will pursue those who seek to misuse this important benefit for their own enrichment.”
The government alleged that between December 2005 and December 2010, HOTCI engaged in practices that resulted in billing Medicare for patients who were not terminally ill. Specifically, HOTCI allegedly directed its staff to admit all referred patients without regard to whether they were eligible for the Medicare hospice benefit, falsified medical records to make it appear that certain patients were eligible for the benefit when they were not, employed field nurses without hospice training, established procedures to limit physicians’ roles in assessing patients’ terminal status and delayed discharging patients when they became ineligible for the benefit.
As part of this settlement, HOTCI has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to promptly detect and prevent future conduct similar to that which gave rise to the settlement. In addition, HOTCI’s former Chief Executive Officer Robert Wilson has agreed to a three-year, voluntary exclusion from Medicare, Medicaid and other federal health care programs.
“This settlement represents a fair and appropriate resolution of this troubling matter,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Hospice providers in our district should be on notice that our office will do what it takes to protect our citizens from this kind of misconduct.”
“Hospice care is a sacred trust from which no provider should fraudulently profit,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Claiming tax dollars for people who are not terminally ill ─ and therefore ineligible for hospice care ─ cannot be tolerated.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $16.7 billion through False Claims Act cases, with more than $11.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The allegations settled today arose from a lawsuit filed by a former HOTCI employee, Douglas Stone, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Stone’s share of the recovery has not been determined.
This matter was handled by the Justice Department’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of the Inspector General.
The case is United States ex rel. Stone v. Hospice of the Comforter Inc., No. 6:11-cv-1498-ORL-22-DAB (M.D. Fla.). The claims settled by this agreement are allegations only; there has been no determination of liability.
North Idaho Man Sentenced for Theft from Coeur D'Alene TribeRead the Press Release
COEUR D’ALENE — Billy E. Moffitt, 27, of Lewiston and Plummer, Idaho, was sentenced today in United States District Court to time served — 159 days — for conspiracy to commit theft from a tribal organization, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill ordered Moffitt to serve three years of supervised release and pay $4,175.26 in restitution, joint and several with co-defendant Angeline George, to the Coeur d’Alene Tribal Housing Authority. Moffitt pleaded guilty to the charge on August 20, 2013.
According to the plea agreement, George was employed by the Coeur d’Alene Tribal Housing Authority and was issued a credit card related to her duties. Between February 2 and February 23, 2013, Moffitt and George drove from the Coeur d’Alene reservation to Spokane, Washington, where George purchased $4,175.26 in money orders from local Money Tree stores. Moffitt or George would then cash the money orders and use the cash for their personal use and benefit.
Angeline George pleaded guilty on August 30, 2013, to conspiracy to commit theft from a tribal organization. She is set for sentencing on December 3, 2013, at the federal courthouse in Coeur d’Alene.
The case was investigated by Coeur d’Alene Tribal Police and the Federal Bureau of Investigation.
Nicholas County Men Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
Nine from Nicholas sentenced to federal prison this year in meth ring take-down
CHARLESTON, W.Va. –Two men were sentenced to federal prison for their participation in a Nicholas County methamphetamine conspiracy, U.S. Attorney Booth Goodwin announced today. Roy Spinks, Sr., of Craigsville, 59, was sentenced to two years in prison. Spinks’ co-defendant, Michael Boley, 31, of Summersville, was also sentenced to two years in prison for conspiracy to manufacture methamphetamine. The sentences were handed down today by United States District Judge John T. Copenhaver, Jr. in Charleston.
Spinks Sr., who previously pleaded guilty in August to making a residence available for the purpose of manufacturing methamphetamine, permitted an associate, Felicia Bess, to cook methamphetamine at his Kyler Road residence in Nicholas County. Boley, who also pleaded guilty in August, cooked methamphetamine at Spinks’ Nicholas residence, as well as at several other locations in and around Nicholas County from October 2010 until June 2011.
Bess, 23, of Summersville, was sentenced in February to three years in prison for her participation in the conspiracy. Also in February, Roy Spinks, Jr., 39, of Craigsville, was sentenced to six years in prison for making a residence available for the purpose of manufacturing methamphetamine. During the conspiracy, Spinks Jr. and Bess worked together to manufacture methamphetamine using a technique known as the “shake and bake” method. Spinks Jr. also told police that he manufactured methamphetamine at several different residences in Nicholas County
In a related matter, Bratten Smith, 28, of Richwood, was sentenced in February to two years in prison. From February 2011 until May 1, 2011, Smith helped Spinks and Bess cook methamphetamine at a residence in Nicholas County. Smith also supplied pseudoephedrine and other ingredients that were used to manufacture methamphetamine. In exchange for the meth-making materials, Smith received methamphetamine for his personal use.
In addition, Shannon Ellison (3 ½ years), Jennifer Curry (2 years), Rachel Petrey (five years and 10 months), and Terry Mullins (four years and three months), all of Nicholas County, were sentenced to federal prison earlier this year for conspiracy to manufacture methamphetamine.
The U.S. Forestry Service, the Central West Virginia Drug Task Force, the West Virginia State Police, the Nicholas County Sheriff’s Department and the Richwood Police Department conducted the investigation. Assistant United States Attorney John Frail handled the prosecutions.
New York City Man Sentenced to Prison for Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a New York City man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 40 months in prison on the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Richard Caba-Batista, age 35, formerly of New York City, previously admitted to participating in a drug-trafficking conspiracy which obtained cocaine in Texas and New York City and distributed the cocaine in the Monroe County and Northampton County areas in 2011.
Caba-Batista also faces deportation proceedings.
In addition to the prison term, Senior Judge Kosik also ordered that Caba-Batista be supervised by a probation officer for four years following his prison sentence if he is not deported.
Previously, Dickson Gutierrez, age 37, and Jhonathan Gutierrez-Esquea, age 33, both formerly of Stroudsburg, were sentenced to 60 months in prison for participating in the same cocaine-trafficking conspiracy. As part of his plea agreement, Dickson Gutierrez also agreed to forfeit to the United States two properties in the Dominican Republic which were purchased with the proceeds of cocaine trafficking activity.
The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.