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Friday 6 September 2013
Federal Jury Convicts Jeffrey Scott Braden of Meth Manufacturing Conspiracy Charge and Related OffensesRead the Press Release
Braden was the only defendant of 42 indicted to go to trial
KNOXVILLE, Tenn. - Following a three-day trial in U.S. District Court, Knoxville, a jury convicted Jeffrey Scott Braden of Lake City, Tenn., of conspiracy to manufacture 50 grams or more of methamphetamine, possession of equipment, chemicals, products and materials which may be used to manufacture methamphetamine and possession of ammunition by a previously convicted felon. Braden was one of 42 individuals indicted in the meth manufacturing conspiracy, and the indictment followed a long-term investigation designed to address the fact that Anderson County was the leading county in the state of Tennessee in meth lab seizures. Thirty-eight other individuals have pleaded guilty, two others have signed plea agreements which are on file with the court, and one defendant remains a fugitive. The initiative was named “Operation Meth-odical Destruction.”
Sentencing is set for 2:00 p.m., Feb. 20, 2014, in U.S. District Court in Knoxville, Tenn., before The Honorable Judge Thomas A. Varlan, Chief U.S. District Judge. Braden faces a sentence of life in prison without the possibility of parole because he has several prior felony drug convictions.
The evidence presented at trial included Braden’s confessions to repeatedly manufacturing methamphetamine, testimony about seized chemicals and meth lab components in which Braden was a “cook,” testimony of co-conspirators, and proof of his prior criminal history as a convicted felon.
After the verdict was returned, U.S. Attorney William Killian said, “There was a large-scale meth manufacturing problem in Anderson County, and federal, state and local law enforcement agencies teamed up to combat it. It has been addressed. This conviction and the life sentence which Braden faces serves as a lesson to anyone in this district that serious punishment awaits those who repeatedly manufacture methamphetamine.”
Law enforcement agencies participating in the joint investigation which led to the indictment and the subsequent conviction of Braden included the Drug Enforcement Administration, Anderson County Sheriff’s Department and Tennessee Bureau of Investigation. Assistant U.S. Attorney David P. Lewen, Jr., represented the United States at trial.
Federal Inmate Sentenced to 20 Additional Years for Assault on Prison StaffRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
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Four Others Appear for Pleas and Sentencing
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II
announced that a federal prisoner will serve an additional 20 years of time as a result of his attack on officials at a prison in Preston County, West Virginia.TARVIS LEVITICUS DUNHAM, age 42, a former inmate at the United States Penitentiary in Hazelton, West Virginia, was sentenced to 240 months imprisonment to run consecutive to the 300-month sentence he is currently serving. DUNHAM was convicted on January 29, 2013, after a six-day trial on one count of “Obstructing Justice by Retaliating Against a Witness,” and five counts of “Assaulting, Resisting and Impeding Certain Officers or Employees of the Bureau of Prisons.” Trial evidence indicated that in 2011 DUNHAM attempted to retaliate against a case manager for producing a record and document during disciplinary proceedings conducted by the Bureau of Prisons relating to an incident that occurred the year befere. DUNHAM forcibly assaulted the case manager and when other Correctional Officers attempted to restrain DUNHAM, he forcibly assaulted them by kicking and biting them. He also refused to comply with their orders before they were able to restrain and handcuff him. DUNHAM was transferred to another United States Penitentiary that same day. A week after the incident, the staff at USP Lee recorded a telephone call between DUNHAM and his mother where DUNHAM told his mother that he “about near killed that woman.”
This case was prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Federal Bureau of Investigation and the Special Investigative Services Unit at USP Hazelton.GARY MOORE, age 37, an inmate at USP Hazelton, entered a plea of guilty to “Possession of a Prohibited Object” when staff at the satellite camp at USP Hazelton found a cell phone during a random search. MOORE was sentenced to 3 months imprisonment to run consecutive to his current 199-month sentence.
SEAN WILLIAMS, age 35, an inmate at USP Hazelton, entered a plea of guilty to “Indecent Exposure.” BATTLE was sentenced to 90 days imprisonment to run consecutive to the 188-month sentence that he is already serving.
ALBERT MEIER, age 24, an inmate at USP Hazelton, entered a plea of guilty to “Possession of a Prohibited Object” when staff at USP Hazelton observed MEIER talking on a cell phone. MEIER ignored commands from staff and attempted to run, with the staff eventually finding the cell phone in his pants. MEIER faces up to 1 additional year of imprisonment.
The MOORE, WILLIAMS and MEIER cases were prosecuted by Assistant United States Attorney Flower and investigated by the Special Investigative Services Unit at USP Hazleton.
DAVID SOKOLOWSKI, age 42, of Point Marion, Pennsylvania, was sentenced to six days imprisonment for “Assault of a VA Police Officer” on February 15, 2012, at the Louis A. Johnson VA Medical Center. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by VA Police.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the September 2013 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.Clemente Aquino-Guzman. Possession of Methamphetamine with Intent to Distribute and Illegal Alien in Possession of a Firearm. Aquino-Guzman, 34, is accused of possessing methamphetamine with intent to distribute and possession of a firearm by an illegal alien. If convicted Aquino-Guzman faces a maximum penalty of 20 years imprisonment, forfeiture of the firearm, and a $1,000,000 fine. The Federal Bureau of Investigation and Muskogee (Creek) Nation Lighthorse Tribal Police Department are the investigative agencies.
Mario Beltran. Felon in Possession of Firearms and Ammunition and Possession of Marijuana with Intent to Distribute. Beltran, 32, of Tulsa, is accused of possessing a Sterling Arms .22 caliber pistol, a Jimenez Arms 9mm pistol, and forty-six rounds of ammunition after two prior felony convictions. He is also charged with possession of marijuana with intent to distribute. If convicted, Beltran faces a maximum sentence of 10 years in prison for the firearms count, 5 years in prison for the marijuana with intent to distribute count, forfeiture of the firearms and ammunition, and a fine of up to $250,000 per count. This case was investigated by the Tulsa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Michael W. Couch. Embezzlement from a Labor Organization. Couch, 43, of Broken Arrow, is accused of embezzling $12,852.47 between January 2007 to March 2010 from the Sheet Metal Workers Local 270 Union where he served as business manager/financial secretary-treasurer. If convicted, Couch faces a maximum imprisonment of 5 years and a fine up to $250,000. The Department of Labor is the lead agency.
Jessica Jo Glore. Unlawful User of a Controlled Substance in Possession of a Firearm and Ammunition. Glore, 27, of Tulsa, is accused of possessing a Cobra .380 pistol and ammunition. If convicted, Glore faces a maximum 10 years imprisonment, forfeiture of the firearm and ammunition, and up to a $250,000 fine. The Federal Bureau of Investigation is the lead agency.
Freddie Allen Hayes. Felon in Possession of Firearms and Ammunition. Hayes, 28, of Tulsa, is accused of possessing a Cobra .380 caliber pistol, Mossberg 20 gauge shotgun, and ammunition after prior felony convictions for possession and distribution of cocaine and aggravated battery. If convicted, Hayes faces a maximum penalty of 10 years imprisonment, forfeiture of the firearms and ammunition, and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the lead agency.
Sharon Hopper. Theft of Government Property. Hopper, 68, of Hominy, is accused of stealing approximately $14,828 in Supplemental Security Income (SSI) from the Social Security Administration from February 2010 to December 2011. If convicted, Hopper faces a maximum penalty of 10 years imprisonment and a $250,000 fine. The Office of the Inspector General, Social Security Administration is the lead agency.
Brian Lee Larkins. Receipt and Transportation of a Firearm While Under Indictment, Possession of an Explosive While Under Indictment, and Possession of Methamphetamine with Intent to Distribute. Larkins, 40, of Tulsa, is charged with receipt and transportation of a Fegyver es Gepgyar .038 caliber pistol and possession of 305 meters of Primacord while under indictment, and possession of methamphetamine. Primacord is a detonating cord used with explosives. If convicted of Counts 1-2, Larkins faces a maximum penalty of 10 years imprisonment, forfeiture of the firearm and wire, and/or up to $250,000 fine. If guilty of Count 3, Larkins faces a maximum penalty of 20 years imprisonment and/or a $1,000,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Federal Bureau of Investigation are the lead investigative agencies.
Domingo Pablo Lence-Perea. Drug Conspiracy and Posessession of Methamphetamine with Intent to Distribute. Lence-Perea, 58, of Kaufman, Texas, is accused of drug conspiracy and possession of 500 grams or more of Methamphetamine with intent to distribute. If convicted, Lence-Perea faces a minimum 10 years to life imprisonment, forfeiture of at least $96,200, and/or up to a $10,000,000 fine. The Drug Enforcement Administration is the lead agency.
Juan Luis Moreno-Cardoso. Alien in the United States After Deportation. Moreno-Cardoso, 27, was arrested in Tulsa County and charged with having returned to the United States unlawfully after being deported in May 2012 near Del Rio, Texas. If convicted, Moreno-Cardoso faces a maximum 20 years imprisonment and/or fine up to $250,000. The U.S. Immigration and Customs Enforcement is the lead agency.
Tonni Mulrain-Williamson. Assault on Government Employee While in Performance of Duties. Mulrain-Williamson, 36, of New York, New York, is charged with physical assault of an United States Postal Service employee at the Northeast Station located in Tulsa while the employee was performing official duties. If convicted, Mulrain-Williamson faces a maximum penalty of 8 years imprisonment and a fine up to $250,000. The United States Postal Inspections Service is the lead agency.
Patricia Perez Cano. Alien in the United States After Deportation. Perez Cano, 39, was arrested in Tulsa County and charged with having returned to the United States unlawfully after being deported in September 2011 near Del Rio, Texas. If convicted, Perez Cano faces a maximum of 20 years imprisonment and/or fine up to $250,000. The U.S. Immigration and Customs Enforcement is the lead agency of this case.
Shelly Roanhorse. False Statement. Roanhorse, 47, of Broken Arrow, is accused of providing falsified information on Form LM-3 Labor Organization Annual Report on behalf of the American Federation of Government Employees Local 3601. Roanhorse served as the Local 3601 treasurer and between April 2011 and June 2012 is accused of embezzling at least $4,840. If convicted, Roanhorse faces a maximum imprisonment of 5 years and a fine up to $250,000. The Department of Labor is the lead agency.
Christine Sawyer. Theft of Government Property. Sawyer, 50, of Oilton, is accused of stealing $4,900 in Social Security Supplemental Income (SSI) from the Social Security Administration (SSA) from July 2011 to September 2012. If convicted, Sawyer faces a maximum penalty of 10 years imprisonment and a $250,000 fine. The Office of the Inspector General, Social Security Administration is the lead agency in this case.
Ronald Everett Spivey and Kimberly Marie Haven. Coercion and Enticement of a Minor, Sex Trafficking of Children, and Interstate Trafficking and Racketeering. Spivey, 47, of Oklahoma City, and Haven, 27, are accused of working together in a sex trafficking business with the intent to recruit and prostitute children under the age of 17 years. Spivey is also charged with enticing and coercing a female, whom he believed to be 17 years of age, to engage in prostitution in another state. If convicted, Spivy would face a minimum of 10 years imprisonment and up to $500,000 fine, and Haven would face a maximum of 5 years imprisonment and up to $250,000 fine. The Tulsa Police Department is the lead agency.
Darlene Washington. Theft of Government Property. Washington, 61, of Bristow, is accused of stealing approximately $71,925 in Social Security Supplemental Income (SSI) from the Social Security Administration (SSA) from June 2007 to November 2011. If convicted, Washington faces a maximum penalty of 10 years imprisonment and a $250,000 fine. The Office of the Inspector General, Social Security Administration is the lead agency.
Brandon G. Watters. Willfully Making a Threat Concerning Explosive Materials. Watters, 29, of Columbia, Tennessee, is charged with threatening to bomb the Miami Nation Enterprises Building in Miami, Oklahoma in July 2013. If convicted, Watters faces a maximum penalty of 10 years imprisonment and a $250,000 fine. The Bureau of Indian Affairs is the investigative agency.
Angela G. Webster. Embezzlement from a Labor Organization. Webster, 36, of Tulsa, is accused of embezzling at least $13,015.39 from Carpenters Local Union 943 where she served as the office secretary with financial duties from May 2010 to March 2011. If convicted, Webster faces a maximum penalty of 5 years imprisonment and a fine up to $250,000. The Department of Labor is the lead agency.
Christopher Weigers. Attempted Arson and Interstate Transportation in Aid of Racketeering Enterprise (ITAR). Weigers, 39, of Catoosa, is accused of attempted arson and interstate transportation in aid of racketeering enterprise. If convicted of the attempted arson charge, Weigers faces a minimum of 5 years up to 20 years imprisonment and a $250,000 fine. If convicted of the ITAR charge, the maximum penalty is 5 years imprisonment and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Fire Department are the lead investigative agencies.Federal Escapee Pleads Guilty to EscapeRead the Press Release
And The Robbery Of Dunmore Bank
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Romeal Price, age 36, of Brooklyn, New York, pleaded guilty Thursday to escape and bank robbery before Senior United States District Court Judge James M. Munley.
According to United States Attorney Peter J. Smith, Price appeared in Federal Court in Scranton and admitted escaping from the Catholic Social Services Residential Reentry Center on June 18, 2013. At the time, he was serving the remaining few months of a 15-year federal prison sentence from 2001. Price further admitted that 10 days later while a fugitive, he robbed the Pennstar Bank, 1230 O’Neill Highway, Dunmore, Pennsylvania, of approximately $11,000. Following the robbery, Price fled to New York City. On July 17, 2013, deputies of the United States Marshals Service arrested Price in a New York City apartment without incident.
The case was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Dunmore Police Department. The case is being prosecuted by Assistant U.S. Attorney John Gurganus.
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 25 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.
Father and Son Plead Guilty to Million-Dollar Bulk Mail Fraud Through New Jersey-Based International Mailing CompanyRead the Press Release
NEWARK, N.J. – The father and son operators of Clevett Worldwide Mailers LLC, a Succasunna, N.J., bulk mailing house, today admitted to defrauding clients of more than $1 million through a fraudulent bulk-mailing scheme in which they shredded millions of pieces of mail rather than delivering them, U.S. Attorney Paul J. Fishman announced.
Harold Clevett, 68, of Middlesex, N.J., and Mark Clevett, 37, of Randolph, N.J., pleaded guilty before U.S. District Judge Kevin McNulty to one count of conspiracy to commit wire fraud charged in an indictment against them.
According to documents filed in this case and statements made in court:
Mark Clevett owned, and both Clevetts operated, Clevett Worldwide Mailers, which contracted with international and domestic customers to handle large mailings. Customers sent their mail jobs to Clevett Worldwide Mailers for sorting, addressing and delivery to the post office. The company received fees from their customers for each piece of mail and for the total weight of the mail that it handled.
During their guilty plea proceedings, both father and son admitted that rather than sending their clients’ mail as contracted, they directed their employees to throw away all or part of it, and even called in a shredding company to destroy unsent mail.
Mark and Harold Clevett also acknowledged they charged their customers for the full amount of the mailings, even sending some of their customers fraudulent postal forms to make it appear as though the mailings were delivered. The pair admitted that between 2007 and June 2011, they discarded and shredded nearly 3 million pieces of customer mail and reaped nearly $1 million in illicit profits.
The wire fraud conspiracy charge to which the Clevetts pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. Sentencing for both defendants is scheduled for Dec. 18, 2013.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s pleas.The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Michael Robertson of the U.S Attorney’s Office in Newark.
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Defense counsel:
Harold Clevett: Brian J. Neary Esq., Hackensack, N.J.
Mark Clevett: Don Larsen Esq., Montville, N.J.
Clevett, Harold and Mark Indictment
Equality Woman Sentenced to 7 Years in Prison for Methamphetamine Manufacturing Related OffenseRead the Press Release
Jeanette L. Margenthaler, 42, of Equality, Illinois, was sentenced today in United States District Court in Benton to 7 years in prison for unlawfully possessing pseudoephedrine with the intent that it be used to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Margenthaler pled guilty to an indictment charging her with that offense on May 16, 2013. The indictment alleged that the offense occurred in Saline County on January 8th.
In addition to the 7 year term of imprisonment, Margenthaler was ordered to pay the United States fines and special assessments totaling $300 and was placed on a 3 year term of supervised release to follow her incarceration. Under federal law, parole has been abolished meaning that Margenthaler will be required to serve at least 85% of her sentence.
Margenthaler, who has been held without bond since her arrest February 8th, was again remanded to the custody of the United States Marshal to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force with the assistance of the Gallatin County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Eight Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Six given prison sentences for drug convictions
ELKINS, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II announced that eight individuals recently appeared in Federal Court in Elkins for sentencing.
WILLIAM TRENT RICHARDSON, age 21, of French Creek, West Virginia, was sentenced to 74 months imprisonment, three years of supervised release and a fine of $3,000 for “Maintaining a Drug-Involved Premise” from February 2 to September 13, 2012, to manufacture, store, distribute and use methamphetamine. The Court also ordered RICHARDSON to make restitution in the amount of $2,496 to the Drug Enforcement Administration for the clean-up of the methamphetamine lab.
DANIEL RAY PHARES, age 44, of Elkins, was sentenced to 70 months imprisonment and three years of supervised release for “Manufacturing Marijuana.” The Court also ordered the forfeiture of $950.01 as proceeds of the illegal activity, as well as a .22 rifle and ammunition.
ALAN LEE STANLEY, age 33, of Buckhannon, West Virginia, was sentenced to 57 months imprisonment and three years of supervised release for “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.”
MICHELLE LEE STOCKING, age 23, of Moorefield, West Virginia, was sentenced to 51 months imprisonment and two years of supervised release for “Possession of Materials Used in the Manufacturing of Methamphetamine.”
KAYLA LYNN EVANS, age 39, of Moorefield, was sentenced to 41 months imprisonment and three years of supervised release for “Possession of Materials Used in the Manufacturing of Methamphetamine.”
SHALAE STUDER, age 22, of Elkins, was sentenced to 33 months imprisonment and three years of supervised release for “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.”
KYLE LEE HEFT, age 35, of Mahoney City, Pennsylvania, was sentenced to 10 months imprisonment and 20 years of supervised release for “Failure to Update Sex Offender Registry.”
RICHARDSON, PHARES, STANLEY, STOCKING, EVANS, STUDER and HEFT were remanded to the custody of the United States Marshal pending designation to a Federal institution.
RICHARD MAURICE HADDIX, age 33, of Elkins, was sentenced to 5 years probation for “Wire Fraud.” The Court also ordered HADDIX to pay restitution in the amount of $102,260.
These cases were prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the West Virginia State Police; Upshur County Sheriff’s Department; Elkins Police Department; Randolph County Sheriff’s Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Buckhannon Police Department; Moorefield Police Department; the Potomac Highlands Drug and Violent Crimes Task Force consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations; the United States Forest Service Law Enforcement; and the Northern District of West Virginia and the Middle District of Pennsylvania United States Marshals Service.East St. Louis Man Sentenced for Narcotics and Firearms OffensesRead the Press Release
Lee H. Grinston, 27, of East St. Louis, was sentenced in U.S. District Court to 63 months in federal prison on September 6, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On May 17, 2013, Grinston pled guilty to charges of Possession With Intent to Distribute Crack Cocaine, Distribution of Crack Cocaine (two counts), Felon in Possession of a Firearm, and Possession of a Firearm With an Obliterated Serial Number.
All of the charges against Grinston arose from his arrest in the 800 block of 32nd Street in East St. Louis on April 3, 2012. At his change of plea hearing last May, Grinston admitted that he had sold crack cocaine twice on April 3, 2012, and that he had an additional 10 grams of crack cocaine in his possession when he was arrested. Grinston also admitted that he possessed a handgun with an obliterated serial number on April 3, 2012, and that he is a convicted felon.
The investigation which resulted in Grinston’s arrest and conviction was conducted by the Metropolitan Enforcement Group of Southern Illinois (MEGSI).
The case is assigned to Assistant United States Attorney Robert L. Garrison.
District Man Sentenced to 22 Years in Prison for Two Attacks, Including One That Ended in Murder-Crimes Took Place over Three-Day Period in 2010-Read the Press Release
WASHINGTON – Monquel Cook, 23, of Washington, DC, was sentenced today to a 22-year prison term for his role in the killing of a man during a robbery, as well as a separate attempted robbery of two other men, U.S. Attorney Ronald C. Machen Jr. announced.
Cook pled guilty in April 2013, in the Superior Court of the District of Columbia, to one count of second-degree murder while armed and two counts of assault with intent to rob. The plea, which was contingent upon the Court’s approval, called for a sentencing range of 14 to 22 years of incarceration. The Honorable John Ramsey Johnson accepted the plea today and sentenced Cook to the 22-year term. Upon completion of his prison term, Cook will be placed on five years of supervised release.
According to the government’s evidence, the first of the two attacks occurred on Aug. 19, 2010. At about 11:30 p.m., Cook and his cousin, Jovon Clay, entered an apartment in the 2300 block of Good Hope Road SE. The men were familiar with a female occupant of the apartment, and they entered with the intent to rob anyone inside. Once inside the apartment, Clay brandished a 9mm handgun and demanded that a man who was there give them his belongings.
The male refused, however, and was able to get Cook in a headlock. At this time, another man entered the apartment. Clay took this man to the couch, had him lie face down, and searched his pockets. Clay then returned to the other victim, who still had Cook in a headlock. Cook screamed for Clay to shoot the victim, and Clay fired multiple rounds, hitting the man in the leg. Cook then searched the man’s pockets for money, but found none. Both Cook and Clay then fled the apartment.
The murder took place at about 6:30 p.m. on Aug. 22, 2010, Cook and Clay decided to rob the victim, Michael Wilson, 47, whom they believed had a large amount of cash and narcotics in his home. The two men waited for Wilson inside Wilson’s building located in the 4200 block of South Capitol Street SE. When Wilson returned home, the two men forced their way into the apartment. Clay had the same 9mm firearm used in the Aug. 19 crimes, and pointed it at Mr. Wilson. Cook, meanwhile, searched the apartment for money and/or narcotics.
While Cook started looking around the apartment, Mr. Wilson approached Clay and began a struggle with him, during which Clay dropped the firearm. Cook ran over and joined the fight. During the struggle, Mr. Wilson was shot several times. Also during the struggle, Cook was grazed behind his ear by either a bullet or a bullet fragment. After shooting Mr. Wilson, Cook and Clay fled the apartment.
Mr. Wilson struggled out of his apartment to the front door of his building, where he collapsed, and he died a short time later. Cook and Clay stopped a short distance away to call for an ambulance. Cook told police that he had been shot while walking in an alley; however, swabbings of blood found outside of Mr. Wilson’s door and leading to a trail in the rear of the building matched the DNA profile obtained from the Cook’s swab sample.
Clay, 21, of Washington, D.C., earlier pled guilty to charges of second-degree murder, assault with intent to rob while armed, and conspiracy to distribute narcotics.
In announcing the sentence, U.S. Attorney Machen commended the Metropolitan Police Department for its work on the investigation. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Marcia Rinker. Finally, he commended the work of Assistant U.S. Attorneys Jeffrey Pearlman, who investigated and indicted the case, and Michelle Bradford who prosecuted the case after indictment.
13-308District Man Sentenced to 22 Years in Prison for Two Attacks, Including One That Ended in Murder-Crimes Took Place over Three-Day Period in 2010-Read the Press Release
WASHINGTON – Monquel Cook, 23, of Washington, DC, was sentenced today to a 22-year prison term for his role in the killing of a man during a robbery, as well as a separate attempted robbery of two other men, U.S. Attorney Ronald C. Machen Jr. announced.
Cook pled guilty in April 2013, in the Superior Court of the District of Columbia, to one count of second-degree murder while armed and two counts of assault with intent to rob. The plea, which was contingent upon the Court’s approval, called for a sentencing range of 14 to 22 years of incarceration. The Honorable John Ramsey Johnson accepted the plea today and sentenced Cook to the 22-year term. Upon completion of his prison term, Cook will be placed on five years of supervised release.
According to the government’s evidence, the first of the two attacks occurred on Aug. 19, 2010. At about 11:30 p.m., Cook and his cousin, Jovon Clay, entered an apartment in the 2300 block of Good Hope Road SE. The men were familiar with a female occupant of the apartment, and they entered with the intent to rob anyone inside. Once inside the apartment, Clay brandished a 9mm handgun and demanded that a man who was there give them his belongings.
The male refused, however, and was able to get Cook in a headlock. At this time, another man entered the apartment. Clay took this man to the couch, had him lie face down, and searched his pockets. Clay then returned to the other victim, who still had Cook in a headlock. Cook screamed for Clay to shoot the victim, and Clay fired multiple rounds, hitting the man in the leg. Cook then searched the man’s pockets for money, but found none. Both Cook and Clay then fled the apartment.
The murder took place at about 6:30 p.m. on Aug. 22, 2010, Cook and Clay decided to rob the victim, Michael Wilson, 47, whom they believed had a large amount of cash and narcotics in his home. The two men waited for Wilson inside Wilson’s building located in the 4200 block of South Capitol Street SE. When Wilson returned home, the two men forced their way into the apartment. Clay had the same 9mm firearm used in the Aug. 19 crimes, and pointed it at Mr. Wilson. Cook, meanwhile, searched the apartment for money and/or narcotics.
While Cook started looking around the apartment, Mr. Wilson approached Clay and began a struggle with him, during which Clay dropped the firearm. Cook ran over and joined the fight. During the struggle, Mr. Wilson was shot several times. Also during the struggle, Cook was grazed behind his ear by either a bullet or a bullet fragment. After shooting Mr. Wilson, Cook and Clay fled the apartment.
Mr. Wilson struggled out of his apartment to the front door of his building, where he collapsed, and he died a short time later. Cook and Clay stopped a short distance away to call for an ambulance. Cook told police that he had been shot while walking in an alley; however, swabbings of blood found outside of Mr. Wilson’s door and leading to a trail in the rear of the building matched the DNA profile obtained from the Cook’s swab sample.
Clay, 21, of Washington, D.C., earlier pled guilty to charges of second-degree murder, assault with intent to rob while armed, and conspiracy to distribute narcotics.
In announcing the sentence, U.S. Attorney Machen commended the Metropolitan Police Department for its work on the investigation. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Marcia Rinker. Finally, he commended the work of Assistant U.S. Attorneys Jeffrey Pearlman, who investigated and indicted the case, and Michelle Bradford who prosecuted the case after indictment.
13-308District Man Pleads Guilty to Armed Robbery Outside Restaurant-Security Footage and Citizens’ Tips Helped Lead Police to Defendant-Read the Press Release
WASHINGTON - James E. Wade, 30, of Washington, D.C., pled guilty today to an armed robbery charge stemming from a hold-up that took place last spring outside a Northwest Washington restaurant, U.S. Attorney Ronald C. Machen Jr. announced.
Wade pled guilty in the Superior Court of the District of Columbia. He is to be sentenced Nov. 7, 2013 by the Honorable Robert I. Richter. He faces a statutory maximum of 30 years in prison.
According to the proffer of evidence, signed by the defendant as well as the government, on May 17, 2013, at approximately 9:20 p.m., the two victims were dining at a table in front of a restaurant in the 1400 block of 12th Street NW when Wade approached them. He was brandishing what appeared to be a handgun. Wade demanded the victims’ property, and the two men turned over their cash, wallet, and cell phone. After taking the property, Wade fled.
Footage from the restaurant’s security camera was released to the public through various media outlets, along with a number for the Metropolitan Police Department (MPD). The police received many calls from citizens on the tip line identifying the suspect in the video as Wade. Others who were familiar with Wade also identified him as the perpetrator of the robbery. On June 8, 2013, police officers located Wade and placed him under arrest.
U.S. Attorney Machen expressed his appreciation to those who investigated the case for the MPD as well as the citizens who came forward with information. He also commended the work of Assistant U.S. Attorney Scott Sroka, who investigated and prosecuted the case.
13-307District Man Pleads Guilty to Armed Robbery Outside Restaurant-Security Footage and Citizens’ Tips Helped Lead Police to Defendant-Read the Press Release
WASHINGTON - James E. Wade, 30, of Washington, D.C., pled guilty today to an armed robbery charge stemming from a hold-up that took place last spring outside a Northwest Washington restaurant, U.S. Attorney Ronald C. Machen Jr. announced.
Wade pled guilty in the Superior Court of the District of Columbia. He is to be sentenced Nov. 7, 2013 by the Honorable Robert I. Richter. He faces a statutory maximum of 30 years in prison.
According to the proffer of evidence, signed by the defendant as well as the government, on May 17, 2013, at approximately 9:20 p.m., the two victims were dining at a table in front of a restaurant in the 1400 block of 12th Street NW when Wade approached them. He was brandishing what appeared to be a handgun. Wade demanded the victims’ property, and the two men turned over their cash, wallet, and cell phone. After taking the property, Wade fled.
Footage from the restaurant’s security camera was released to the public through various media outlets, along with a number for the Metropolitan Police Department (MPD). The police received many calls from citizens on the tip line identifying the suspect in the video as Wade. Others who were familiar with Wade also identified him as the perpetrator of the robbery. On June 8, 2013, police officers located Wade and placed him under arrest.
U.S. Attorney Machen expressed his appreciation to those who investigated the case for the MPD as well as the citizens who came forward with information. He also commended the work of Assistant U.S. Attorney Scott Sroka, who investigated and prosecuted the case.
13-307Defendant Sentenced for Role in Fast Food Business RobberyRead the Press Release
A Detroit resident was sentenced today to 9 ½ years’ imprisonment for charges involving armed robbery and possession of a firearm in furtherance of a violent crime, United States Attorney Barbara L. McQuade announced today. Ms. McQuade was joined in the announcement by Acting Special Agent in Charge John Robert Shoup, of the Federal Bureau of Investigation.
Jamal Muhammad, 29, of Detroit, was sentenced today by U.S. Chief District Court Judge Gerald E. Rosen after previously pleading guilty on May 3, 2013. Muhammad received two and a half years for robbing the Hungry Howies Pizzeria in Ferndale, Michigan, to be followed by a mandatory minimum seven years consecutive sentence for the possession of the firearm in furtherance of the robbery offense.
During 2008, there were a rash of robberies of fast food establishments in Detroit and its surrounding suburbs of Oak Park, Ferndale, Dearborn, and Redford. The businesses included a Subway, several Little Caesars, a Hungry Howies, a Long John Silvers, and a Wendy's to name a few. Guns were usually brandished during the robberies which typically involved two armed robbers entering the establishment, pulling firearms, and demanding cash from the registers and/or safe while an accomplice waited outside in the getaway vehicle. On one occasion the patrons inside a Wendy's restaurant, located in Detroit at Livernois and Eight Mile Road, were robbed of their personal possessions too. The police agencies in these respective cities noted similarities between the various robberies including the manner of dress of the robbers. There were two unique "hoodies" worn during the robberies. One had a skeletal-like design on the chest area, and the other had a web-like design on its chest area. Hence, law enforcement dubbed them the "Spiderman Crew." In addition, the hood of each hoodie zipped from the back portion of the hood all the way down below the front chest portion. Each hoodie, once zipped, had a built in mask that enclosed and hid the wearer's face behind a built-in dark mesh material.
Muhammad was not a participant in the Wendy's robbery mentioned above, which was the final robbery of the group. However, two group members arrested following the Wendy’s robbery were also involved in the Hungry Howie’s robbery with Muhammad. The robbery participants were apprehended in Detroit, while in possession of the hoodies and the robbery proceeds, after a brief chase and traffic stop moments after the Wendy’s robbery. The robbers present inside the getaway vehicle were Elisha Whitehead, Anthony Sampson, and Elan Andrews. Whitehead pleaded guilty to robberies of the Detroit Wendy’s, the Ferndale Hungry Howie’s, a Dearborn Little Caesar’s and a Detroit Long John Silver’s. Sampson pleaded guilty to robberies of the Detroit Wendy’s, a Detroit Popeye’s and a Ferndale Subway. Both are awaiting sentencing, while Andrews is awaiting an October trial date for robberies of the Detroit Wendy’s, Ferndale Hungry Howie’s, a Ferndale Subway and Little Caesar’s restaurants in Oak Park, Redford and Dearborn.
The case was the result of multi-agency cooperation between the Federal Bureau of Investigation, the Oakland County Sheriff’s Department, the Michigan State Police, the Oak Park Police, the Ferndale Police, the Dearborn Police, the Redford Police, the Detroit Police Department, and the Wayne County Prosecutor’s Office. The case was prosecuted by Assistant United States Attorney Terrence R. Haugabook with collaboration from Assistant Wayne County Prosecutor Joe Jansen.Defendant in Los Zetas Money Laundering Case, His Son, and A Business Associate Charged with Attempting to Bribe A Federal JudgeRead the Press Release
Federal authorities have charged 52-year-old Veracruz, Mexico businessman Francisco Colorado Cessa, his son, 25–year-old Francisco Colorado Cessa, Jr., and a business associate, 52–year-old Ramon Segura Flores for attempting to bribe a federal judge announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez, San Antonio Division.
On May 9, 2013, a federal jury convicted Colorado Cessa of conspiring to commit money laundering for his role in a complex scheme to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States. Yesterday afternoon, Colorado Cessa was sentenced to the statutory maximum of 20 years in federal prison.
A federal criminal complaint filed yesterday charges Colorado Cessa, Colorado Cessa, Jr. and Segura Flores with conspiracy to bribe a federal judge. The complaint alleges that over the past couple of months the defendants conspired to pay a $1.2 million bribe to a federal judge in order to secure a reduced sentence for Colorado Cessa. According to the criminal complaint, at no time before or during this investigation was the judge involved in the alleged criminal activity.
“We have said from the beginning that this case represents our commitment to keep the violence and corruption associated with Mexican drug cartels out of the United States. The sentences handed down yesterday emphasize our determination to seek the most severe penalties for importing the brand of corruption that has become endemic in Mexico. The latest allegation, if proven, demonstrates that individuals associated with the most violent drug cartel believe that they can corrupt what we hold as the bedrock of American justice – the United States Courts. This community should rest assured that we will stop at nothing to send the message that we are one step ahead of them and if they continue to try to function as they do in Mexico, we will find them, we will stop them, and we will do whatever it takes to ensure that they are punished to the full extent of the law,” stated United States Attorney Robert Pitman.
FBI agents arrested Colorado Cessa, Jr., and Segura Flores yesterday evening without incident. All three remain in federal custody at this time. Initial appearances are scheduled for 2:00 pm this afternoon before United States Magistrate Judge Andrew Austin in Austin.
Upon conviction, the defendants face up to five years in federal prison and a maximum $250,000 fine. This case is being investigated by the FBI.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Crowley Man Sentenced to 84 Months in Prison for Transporting Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Tylerton James Clement, 20, of Crowley, La., was sentenced to 84 months in prison and five years of supervised release by U.S. District Court Judge Richard T. Haik for making a video of minors having sex and transporting the file. He is also required to register as a sex offender.
According to the evidence presented at the guilty plea, two other males, under the age of 18, picked up two 13-year-old females on April 3, 2011 and gave them drugs. The males then took the girls to a hotel in Crowley where they engaged in sex acts while the girls were under the effects of the drugs. Clement arrived at the hotel some time later and made a video of the sexual acts with his phone. He admitted to being 18 years old at the time that the video was made and admitted to transporting the video to Texas. Clement pleaded guilty on January 7, 2013.
“This defendant engaged in despicable behavior and abused two minors,” Finley said. “At the time of this incident, Clement was 18, old enough to know that he shouldn’t use his cellphone to video sex acts with children. This sentence should serve as a deterrent to anyone who is thinking about taking advantage of or sexually exploiting children. My office along with our federal, state and local partners will continue to investigate and prosecute these cases; we are going to do everything that we can to protect the children of this District”
“Recording the rape of drugged children is an abhorrent crime, demonstrating a complete lack of conscience or empathy by the defendant,” said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans. “HSI and our law enforcement partners are engaged in a full court press across the United States and around the world to stop the sexual exploitation of children. This defendant will have many years to spend in prison thinking about his crime and the pain he so selfishly caused others.”
“I applaud the efforts of the entire investigative and prosecutive team for bringing swift justice to this individual who engaged in such outrageous exploitative conduct of children,” said Mike Anderson, FBI Special Agent In Charge, New Orleans Division.
The U.S. Immigrations and Customs Enforcement, FBI, U.S. Postal Service, Louisiana State Police and Crowley Police Department investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp Tips may be submitted anonymously.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
Chinese National Pleads Guilty to Illegally Exporting Radiation-hardened Computer Circuits Used in Satellite Communications to ChinaRead the Press Release
DENVER – Philip Chaohui HE, aka Philip Hope, who was residing in Oakland, California, pled guilty September 3, 2013, before Senior U.S. District Court Judge Wiley Y. Daniel to conspiracy to violate the Arms Export Control Act and to Smuggle Goods from the United States, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar C. Kibble announced. HE is scheduled to be sentenced by Judge Daniel on December 18, 2013 at 10:00 a.m. He is in federal custody.
According to court documents, including the stipulated facts contained in the plea agreement, HE attempted to illegally export to China radiation-hardened computer memory circuits used in satellite communications with a value of almost $550,000. HE, the only employee of Oakland, California-based Sierra Electronic Instruments (SEI), purchased 312 radiation-hardened circuits from a Colorado manufacturer. The circuits purchased by HE are categorized as defense articles within the International Trafficking in Arms Regulations (ITAR). Lawfully exporting defense articles requires licensing from the U.S. State Department’s Directorate of Defense Trade Controls.
On April 28, 2011, an unindicted co-conspirator caused two wire transfers totaling about $489,720 to be sent to HE’s bank account in California. On or about May 9, 2011, HE provided payment in full, $549,654, at the time HE placed the order with the Colorado manufacturer. According to the indictment, on or about May 17, 2011, HE provided false certification to the Colorado manufacturer that his company was purchasing the integrated circuits for end-use in the United States only, and HE further acknowledged that the items were controlled by U.S. Export Laws and could not be transferred, transshipped or otherwise disposed of in any other country, without the prior written approval of the U.S. Department of State.
On December 11, 2011, HE drove to the Port of Long Beach, California, and met with two men in front of a docked ship bearing a Chinese flag. The Chinese-flagged ship was registered to Zhenhua Port Machinery Company LTD, a subsidiary of the China state-owned corporation China Communications Construction. The ship had recently arrived from Shanghai, China, and was scheduled to return on December 15, 2011.
HE concealed 200 integrated circuits in several plastic infant formula containers placed inside five boxes which were sealed and labeled as “milk powder” written in Chinese. HE transported the boxes in the trunk compartment of his vehicle. Neither HE, nor his company SEI had a license to export defense articles of any description.
“We have specific laws designed to protect sensitive American technology from getting into the wrong hands overseas,” said U.S. Attorney John Walsh. “Defendant HE attempted to smuggle export-controlled radiation-hardened computer chips to China, and faces serious punishment for his criminal activity.”
“The Arms Export Control Act is designed to prevent having our technology illegally exported and ultimately used against us,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Our HSI special agents in Colorado Springs, San Francisco and Los Angeles worked together with our law enforcement partners to investigate Philip HE and eliminate the threat he posed to this country.”
For conspiring to violate the Arms Export Control Act (AECA) and to Smuggle Goods from the U.S., HE faces not more than 5 years in federal prison, and a fine of up to $250,000.
The Defense Security Service (DSS) and the Defense Criminal Investigative Service (DCIS) provided critical assistance to HSI with this investigation. Assistance was also provided by the U.S. Attorneys Offices located in the Northern and Central Districts of California.
HE is being prosecuted by Assistant U.S. Attorney Matthew Kirsch.
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Chattanooga Man Sentenced to Prison for Child EnticementRead the Press Release
ROME, Ga. - Jason Antti, who traveled to Georgia to have a sexual encounter with a fictitious 11-year-old and 14-year-old girl has been sentenced on charges of child enticement.“This office will continue to aggressively pursue individuals who seek to exploit young children,” said United States Attorney Sally Quillian Yates. “Engaging in sexual acts with children is a vile and violent act, and perpetrators will be held accountable for this reprehensible conduct.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s various Child Exploitation Task Forces scattered throughout the country are designed to identify, investigate, and present for prosecution those individuals like Mr. Antti who choose to prey on our nation’s children. Mr. Antti, having been sentenced in federal court, will now have to answer for his predatory criminal conduct.”
According to United States Attorney Yates, the charges and other information presented in court: In June 2012, a special agent with the FBI’s Northwest Georgia Internet Crimes Against Children Task Force, working online and undercover, posted an ad on Craigslist. The agent posed as a stepfather looking for people interested in having sexual relations with his two young step-daughters. Antti responded to the ad. When Antti was told that the girls were only 11 and 14 years old, he replied that he had a fantasy to engage in sex acts with very young children. Antti then described in detail the sexual acts he intended to perform with the two young girls.
During subsequent on-line exchanges between the defendant and an undercover agent, Antti indicated that he would be traveling to Georgia from Chattanooga, Tenn. He agreed to meet the undercover agent and both girls at the Econolodge in Chickamauga, Ga. On the afternoon of June 8, 2012, Antti drove to the Econolodge in his gray BMW and was arrested. Agents recovered two boxes of condoms from his vehicle.Antti, 41, of Chattanooga, Tenn., has been sentenced by United States District Judge Robert L. Vining, Jr., to 15 years in prison today, followed by 15 years of supervised release. He was convicted of these charges on April 18, 2013, upon his plea of guilty. The defendant will be required to register as a sex offender when he is released from prison.
This case was investigated by the Federal Bureau of Investigation, the Rossville Police Department, the Murray County Sheriff’s Office, and the Walker County Sheriff’s Office.
Assistant United States Attorney Suzette A. Smikle prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Charles City Man Pleads Guilty to Gun ChargesRead the Press Release
Randy Patrie, age 40, from Charles City, Iowa, pled guilty today in federal court in Cedar Rapids. Patrie was convicted of being a felon in possession of 22 firearms and two sawed-off shotguns.
In a plea agreement, Patrie admitted that, on May 2, 2013, he burglarized a federally licensed firearms dealer in rural Floyd, Iowa, stealing approximately 20 firearms. On July 4, 2013, officers searched Patrie’s house in Charles City, and found him in possession of all of the stolen firearms, along with a number of other firearms, including two sawed-off shotguns. Patrie has been convicted of the following felony offenses:
1. September 24, 1991, Attempted Burglary in the 2nd degree;
2. May 4, 1994, Felon in Possession of a Firearm;
3. May 28, 1996, Delivery of Methamphetamine; and
4. May 27, 2003, Burglary 3rd.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Patrie remains in custody of the United States Marshal pending sentencing. If the court finds that Patrie qualifies as an Armed Career Criminal based upon his prior convictions, Patrie faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life in prison without the possibility of parole, a $500,000 fine, $200 in special assessments, and eight years of supervised release following any imprisonment.The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms and Explosive, the Iowa Division of Criminal Investigation, the Charles City Police Department, and the Floyd County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-2016.
Cairo Woman Sentenced to Prison for Tax-Related FraudsRead the Press Release
Monica D. Nicholson, 44, of Cairo, Illinois, was sentenced for conspiring with others to submit false income tax reruns to the Internal Revenue Service for fraudulent tax refunds and for conspiring to commit the unlawful use of means of identification of other persons, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Nicholson received a total sentence of one-hundred and five months in prison, followed by three years of supervised release, and was ordered to pay restitution totaling $283,688.
“The enormity of this theft most certainly justifies the sentence received.” noted United States Attorney Wigginton. “People who steal from the government are, in fact, stealing from every one of us – the law abiding citizens of the United States.”
Evidence showed that Nicholson participated in a scheme to help others to obtain payment of false refunds from the IRS by causing others to file false 2007, 2008, 2009, 2010, and 2011, federal income tax returns claiming refunds to which they knew they were not entitled. Nicholson solicited, instructed, and assisted others in falsely claiming federal income tax refunds through the submission of false federal income tax returns. Nicholson gathered others’ identifying information, claimed fraudulent dependents, and transmitted this information over the telephone to a tax return preparer located in Memphis, Tennessee. As part of this conspiracy, the participants or those whose names appear as taxpayers on the fraudulent income tax returns (the filers) were required to pay Nicholson between approximately $200 and $300 per tax return from the tax refund received. During the 2011 and 2012 tax filing seasons, approximately 50 federal income tax returns were filed. The total refunds claimed by the 50 tax returns were approximately $406,228. Of the federal tax returns filed, the IRS paid out approximately $283,688 in fraudulent tax refunds. Monica D. Nicholson purchased dependents’ Social Security numbers from the guardians and/or parents of the dependents for filers who did not have legitimate dependents. The typical fee was $1,000 per Social Security number and this fee was paid from the fraudulent income tax refund received from the IRS.
The investigation was conducted by the U.S. Postal Inspection Service and the Internal Revenue Service/Criminal Investigations. The prosecution was handled by Assistant United States Attorney Norman Smith.
If you suspect or know of an individual or company that is not complying with the tax laws, you may report this activity by contacting the local Internal Revenue Service/Criminal Investigation Office at (618) 622-2160 or by mailing information to: Internal Revenue Service, Fresno, CA 93888.
Buffalo Man Sentenced for Food Stamp FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Riyadh Almadrahi, 35, of Lackawanna, N.Y., who was convicted of food stamp fraud, was sentenced by U.S. District Judge Richard J. Arcara to 15 months in prison and ordered to pay restitution in the amount of $143,700 to the United States Department of Agriculture.
Assistant U.S. Attorney Robert C. Moscati, who handled the case, stated that Almadrahi participated in the operation of a deli known as Zip's Food and Beverage at 896 Niagara Street in Buffalo. The defendant and others exchanged customer's food stamp benefits for cash in violation of the rules governing the food stamp program. In less than a two year period, Almadrahi acquired approximately $143,700 through these fraudulent transactions.
The sentencing is the result of an investigation on the part of Special Agents of the United States Department of Agriculture, Office of Inspector General; Special Agents of the Federal Bureau of Investigation under the direction of Acting Special Agent in Charge Steven L. Lanser; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; and the New York State Police, Special Investigations Unit, under the direction of Lieutenant Joseph Scioli.Brooklyn Resident Pleads Guilty in Connection with $13 Million Kickback and Health Care Fraud SchemeRead the Press Release
A Brooklyn, N.Y., resident pleaded guilty today for his role as a patient recruiter in a $13 million kickback and health care fraud scheme, the fourth defendant to plead guilty in the scheme based at the Cropsey Medical Care PLLC clinic in Brooklyn.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Loretta E. Lynch of the Eastern District of New York; Assistant Director in Charge George Venizelos of the FBI’s New York Field Office; and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) made the announcement.
Gregory Konoplya, 57, pleaded guilty before U.S. Magistrate Judge Roanne Mann of the Eastern District of New York to one count of conspiracy to pay and receive illegal health care kickbacks. At sentencing before U.S. District Judge Nina Gershon, scheduled for Dec. 4, 2013, Konoplya faces a maximum penalty of five years in prison.
Court documents state that Konoplya, working through an ambulette company in Brooklyn, recruited patients to attend Cropsey Medical. An ambulette is a vehicle that is licensed by New York State’s Medicaid program to transport beneficiaries to and from medical facilities when such transportation is medically necessary. From 2009 to 2012, Konoplya paid employees of Cropsey Medical a per beneficiary cash kickback so that Cropsey Medical would accept Konoplya’s beneficiaries as patients and so that Konoplya’s ambulette company could bill Medicaid for the transportation of beneficiaries to and from Cropsey Medical. Once Konoplya’s beneficiaries were transported to Cropsey Medical, they were paid cash kickbacks to induce them to continue to attend the clinic and to receive medically unnecessary physical therapy, diagnostic testing and other services. Such purported medical services were then billed by Cropsey Medical to Medicare and Medicaid.
According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
The case was investigated by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Fraud Section Trial Attorney Sarah M. Hall and Assistant U.S. Attorneys Shannon Jones and Ilene Jaroslaw of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Brooklyn Resident Pleads Guilty in Connection with $13 Million Kickback and Health Care Fraud SchemeRead the Press Release
BROOKLYN, NY – Brooklyn resident Gregory Konoplya, 57, pleaded guilty today in federal court in the Eastern District of New York to conspiracy to pay and receive illegal health care kickback payments, in connection with his role in a $13 million health care fraud scheme. Konoplya is the fourth defendant to plead guilty in connection with the scheme, which was based at the Cropsey Medical Care PLLC clinic in Bensonhurst, Brooklyn.
Today’s guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Thomas O’Donnell, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
“Gregory Konoplya tried to take taxpayers for a ride with his fraudulent ambulette service,” stated United States Attorney Lynch. “He used illegal cash kickbacks to recruit Medicaid beneficiaries to obtain medical services, including rides in his ambulettes, which the beneficiaries did not need. Konoplya is the latest defendant to be convicted in connection with the government’s ongoing investigation of the Cropsey Medical Care clinic, which submitted more than $13 million in fraudulent claims to Medicare and Medicaid. We will continue to do our part to root out health care fraud to help protect the integrity of Medicare and Medicaid.” U.S. Attorney Lynch extended her grateful appreciation the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General for their work on the investigation.
Konoplya pleaded guilty before U.S. Magistrate Judge Roanne Mann of the Eastern District of New York. At sentencing, Konoplya faces a maximum penalty of five years in prison, a fine of over $850,000, restitution of up to $429,000 and forfeiture of up to the same amount, $429,000.
According to court documents, from 2009 to 2012, Konoplya, working through an ambulette company in Brooklyn, recruited patients to attend a Brooklyn clinic called Cropsey Medical Care PLLC. An ambulette is a vehicle licensed by New York State’s Medicaid program to transport beneficiaries to and from medical facilities when such transportation is medically necessary. Konoplya paid employees of Cropsey Medical a per-beneficiary cash kickback so that Cropsey Medical would accept Konoplya’s beneficiaries as patients and Konoplya’s ambulette company could bill Medicaid for the transportation of beneficiaries to and from Cropsey Medical. Once Konoplya’s beneficiaries were transported to Cropsey Medical, they were paid cash kickbacks to induce them to continue to attend the clinic and receive medically unnecessary physical therapy, diagnostic testing and other services. Such purported medical services were then fraudulently billed by Cropsey Medical to Medicare and Medicaid.
According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
The case was investigated by the FBI and HHS-OIG, brought as part of the Medicare Fraud Strike Force, and supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorney Sarah M. Hall and Assistant U.S. Attorneys Shannon Jones and Ilene Jaroslaw of the Eastern District of New York.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Bolivian Police Officer Arrested on Extortion ChargesRead the Press Release
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, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Vernot Foret, Director Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, and Richard M. Blom, Chief, Doral Police Department, announce the arrest of defendant Francisco Mario Ormachea Aliaga, 42, of Bolivia, on a criminal complaint charging him with traveling in interstate commerce with the intent to promote, manage, establish, carry on, and facilitate an unlawful activity, that is, extortion, in violation of Florida Statute section 836.05, and Title 18, United States Code, Section 1951(a), and thereafter performing and attempting to perform an act to promote, manage, establish and carry on, and to facilitate the promotion, management, establishment, and carrying on of such unlawful activity, in violation of Title 18, United States Code, Section 1952(a)(3). Ormachea made an initial appearance before U.S. Magistrate Judge Barry L. Garber on Tuesday, September 3, 2013, and is scheduled to be arraigned on September 17, 2013.
According to the allegations in the complaint, the FBI was contacted by a Bolivian businessman with initials “H.R.” on August 29, 2013. H.R. told the FBI that someone who identified himself as “the Colonel” had contacted H.R. to request a meeting in the United States. Subsequent investigation revealed that the caller, who had referred to himself as “the Colonel,” was Ormachea.
On August 29, 2013, Ormachea departed La Paz, Bolivia on a commercial flight to Lima, Peru, and then flew on another commercial flight to Miami International Airport. At Miami International Airport, Ormachea presented a valid Bolivian passport containing a valid United States tourist visa to United States Customs and Border Protection, who admitted him into the United States.
On August 30, 2013, H.R. met with Ormachea. The FBI monitored and recorded this meeting. During the meeting, Ormachea discussed the issues surrounding the criminal case against H.R. in Bolivia. Ormachea offered to dispose of the criminal charges pending against H.R. in Bolivia for a fee of $30,000. Ormachea agreed to take a payment of $10,000 immediately and receive the remainder of the payment later.
On Saturday, August 31, 2013, H.R. met with Ormachea again. The FBI monitored and recorded this meeting. During the course of the meeting, Ormachea stated that, in exchange for $30,000, he would drop the charges against H.R. and charge someone else instead. If, however, H.R. did not pay, Ormachea said that he would pursue H.R.’s arrest in the United States, extradition to Bolivia, and prosecution there. H.R. gave Ormachea $5,000 in previously-recorded bills as an initial payment towards the $30,000 required to resolve the charges against him. After the meeting, Ormachea departed by car.
FBI surveillance teams in coordination with local law enforcement conducted a traffic stop of Ormachea shortly thereafter. Ormachea was detained and $5,000 was recovered from his person. A review of the seized U.S. currency revealed that it matched the previously recorded bills.
Law enforcement officials interviewed Ormachea at the Miami Field Office of the FBI. After receiving and waiving his Miranda warnings in writing, Ormachea acknowledged meeting with H.R. on two occasions but denied attempting to extort H.R. Ormachea acknowledged that he is a member of the Bolivian National Police Corps, but stated that he was not traveling in his official capacity as a diplomat of Bolivia.
Mr. Ferrer commended investigative efforts of the FBI, ATF, CBP and the Doral Police Department. This case is being handled by Assistant U.S. Attorneys John Byrne and Jaime Raich.
A complaint is merely an accusation and a defendant is presumed innocent until proven guilty.
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.
Bismarck Man Convicted of Felon in Possession ChargeRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Sept. 6, 2013, Dylan A. Romero, 34, Bismarck, N.D., was found guilty by a federal jury on a charge of possession of firearm by a convicted felon.
In August 2012, law enforcement officials received information that a prohibited person, known as “Twist,” was interested in obtaining a handgun. “Twist,” identified as Dylan Romero, contacted an undercover ATF agent and arrangements were made for Romero to obtain a handgun and $600 for an ounce of cocaine. The undercover ATF agent met with Romero on Sept. 26, 2012, in Bismarck. Romero provided the agent with an ounce of fake cocaine and Romero took the gun, which was locked and disabled. Law enforcement officials immediately arrested Romero.
Romero was prohibited from possessing a firearm due to eight felony convictions, including the following: 1998 burglary, 2001 possession of controlled substance (cocaine), 2009 delivery of imitation controlled substance, and 2009 possession of marijuana with intent to deliver.
The charge of possession of firearm by a convicted felon carries a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Metro Area Narcotics Task Force, the Bismarck Police Department, the Burleigh County Sheriff’s Office, the North Dakota Parole and Probation Office, and the North Dakota Bureau of Criminal Investigation.
Sentencing for Romero has been scheduled for Dec. 16, 2013, in U.S. District Court in Bismarck, N.D., at 9:45 a.m.
Assistant U.S. Attorney David Hagler is prosecuting the case.
Bergen County, N.J., Loan Officer Pleads Guilty to Role in $2 Million Mortgage FraudRead the Press Release
CAMDEN, N.J. – A loan officer admitted today to conspiring to defraud financial institutions as part of an approximately $2 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on town homes and other real estate in three states, U.S. Attorney Paul J. Fishman announced.
Raffi Oghlian, 38, of Westwood, N.J., pleaded guilty today, before U.S. District Judge Jerome B. Simandle in Camden federal court, to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Oghlian worked for a period in 2008 as a loan officer at MJS Lending Inc., in Hasbrouck Heights, N.J., which was in the business of making mortgage loans.
During his guilty plea proceeding, Oghlian admitted that he conspired with others to profit from the sale of over-priced homes in Newark, N.J., and Atlanta, as well as properties in Naples, Fla., owned by developers seeking to sell off inventory. He acknowledged that as part of the conspiracy, he and his conspirators obtained mortgage loans for unqualified borrowers using fraudulent loan applications and other documents.
Oghlian’s conspirators recruited “straw buyers” to purchase those properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. Oghlian created false and fraudulent loan applications that contained false information, concerning, among other things, the straw buyers’ employment, income, assets and intended use of the properties. Oghlian also admitted creating false documents to support the phony loan applications.
Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Oghlian’s co-conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. For his part on the conspiracy, Oghlian earned fees as the loan officer of the seven transactions in which he participated.
In all, the conspiracy caused approximately $2 million to be released from MJS Lending.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for March 13, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and IRS – Criminal Investigation, Newark field office, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their roles in the ongoing investigation.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
13-359Defense counsel: John Klotz Esq.,Clifton, N.J.
Oghlian Information
Austin Horse Trainer Sentenced to Federal Prison in Multi-Million Dollar Money Laundering Conspiracy Involving Los Zetas Drug Trafficking Proceeds, Extortion, and BriberyRead the Press Release
In Austin, Eusevio Maldonado Huitron, a 50-year-old horse trainer residing in Austin was sentenced this morning to 97 months in federal prison followed by three years of supervised release for his role in a complex conspiracy to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, Richard Weber, Chief, Internal Revenue Service Criminal Investigation and DEA Special Agent in Charge Javier Pena.
United States District Judge Sam Sparks this morning also sentenced co-defendant Raul Ramirez, age 21 of El Paso, TX, to one year plus one day in federal prison after pleading guilty prior to trial to the conspiracy charge. Other co-defendants who pleaded guilty to various federal charges prior to trial received probation sentences today including: Zulema Trevino, age 39 (3 years); Alexandra Garcia Trevino, age 22, of Oceanside, CA, (2 years); 33-year-old horse trainer Adan Farias of Norco, CA, (3 years); and 29–year-old Felipe Alejandro Quintero of Los Alamitos, CA, (3 years). Judge Sparks also ordered that Farias, Quintero and Ramirez each pay a $3,600 fine. Sentencing for 27-year-old Carlos Miguel Nayen Borbolla of Santa Anna, CA, was postponed.
Yesterday, Judge Sparks sentenced 46-year-old Jose Trevino Morales of Balch Springs, TX, and Francisco Colorado Cessa, a 52-year-old Veracruz, Mexico businessman, each to 240 months in federal prison; and, Fernando Solis Garcia, a 30-year-old horse trainer and purchasing agent from Ruidoso, NM, to 160 months in federal prison followed by three years of supervised release for their roles in the money laundering scheme. Jose Trevino Morales is the brother of purported Los Zetas leaders, Miguel Trevino Morales (aka “40”) and Oscar Omar Trevino Morales (aka “42”).
On May 9, 2013, a federal jury convicted Jose Trevino Morales, Francisco Colorado Cessa, Fernando Solis Garcia, and Eusevio Maldonado Huitron of one count of conspiracy to commit money laundering. Evidence presented during trial revealed that Los Zetas are a powerful drug cartel based in Mexico and generate multi-million dollar revenues from drug trafficking. Since 2008, Miguel and Oscar Trevino Morales would direct portions of the bulk cash generated from the sale of illegal narcotics to Jose Trevino and his wife, Zulema Trevino, for purchasing, training, breeding and racing American quarter horses in the United States.
Testimony also revealed a shell game by the defendants involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate. Furthermore, the defendants implemented a scheme to structure cash deposits in amounts under $10,000 in order to circumvent mandatory bank reporting requirements.
Over 400 quarter horses (which were seized by federal authorities in June 2012 as part of the above-mentioned money laundering operation) have been sold for approximately $9 million. Most of the horses were sold at Heritage Place Auction Facility in Oklahoma City, Oklahoma in the past year including A Dash of Sweet Heat, which sold for $1 million. Approximately 100 broodmares were sold prior to auction for approximately $35,000. The federal government still retains possession of five quarter horses, including Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, Texas, on October 24, 2009; Mr. Piloto, $1 million All American Futurity winner at Ruidoso Downs on Labor Day 2010; Dashin Follies; Separate Fire; Y516, a yearling seized in Lexington, OK; and four embryos transferred from donor mares, Dashin Follies and Separate Fire.
U.S. Attorney Pitman noted that the proceeds from the sale of these quarter horses are being held in escrow pending the resolution of a forfeiture action. The Government also seeks the forfeiture of real property in Lexington, OK; farm and ranch equipment located at that site; and funds contained in multiple bank accounts allegedly used in the defendants’ scheme. The Government also seeks a monetary judgment in the amount of $60 million representing property involved in and derived from the conspiracy.
Authorities continue to seek the apprehension of seven co-defendants in this case including purported leaders of the Los Zetas, Miguel Trevino Morales (aka “40”) and his brother, 39-year-old Oscar Trevino Morales (aka “42”), as well as 32–year-old Victor Manuel Lopez, 41-year-old Sergio Guerrero Rincon, 41-year-old Luis Gerardo Aguirre, Erick Jovan Lozano Diaz and Gerardo Garza Quintero.
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Customs and Border Patrol, as well as local law enforcement agents in Irving, TX, Lorena, TX, Bruceville-Eddy, TX, Fort Worth, TX and Laredo, TX. The investigation received assistance from the Texas Army National Guard, Cleveland County (OK) Sheriff’s Office, and the Oklahoma and New Mexico Racing Commissions. The U.S. Attorney’s Office for the Eastern District of Texas prosecuted several members of the Los Zetas drug cartel on drug trafficking charges related to this conspiracy and provided substantial assistance to this investigation. The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) provided assistance with the forfeiture action in this case.
Andria March Sentenced in Syracuse to ProbationRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the imposition of sentence in United States District Court in Syracuse on Andria March for the offense of bankruptcy fraud.
Andria March, 33, of North Tonawanda, NY pled guilty in April, 2013, to a single count of bankruptcy fraud, relating to a bankruptcy petition she had filed in the federal courts in Syracuse in 2009. Today in Syracuse, Senior District Judge Frederick J. Scullin sentenced the defendant to a term of probation of two years, and required her to perform 50 hours of community service as a condition of that probation.
As part of her plea, the defendant acknowledged that, in 2009 when she filed a bankruptcy petition in Syracuse, NY, she had intentionally failed to disclose money that she had used to purchase a pre-paid lease on a 2010 Mercedes Benz 300. Prior to sentencing, the defendant had paid into the bankruptcy court the money that she had previously failed to disclose.
This case is the result of an investigation by the Federal Bureau of Investigation in Syracuse, NY. Further questions or inquiries may be directed to Executive Assistant United States Attorney John Duncan, at (315) 448-0672.
Anchorage Men indicted in Federal Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two defendants were arraigned this week in Anchorage on charges involving a drug trafficking conspiracy and possession of methamphetamine with intent to distribute. Albert Diaz Gumataotao, III, 24, of Anchorage, Alaska, and David Alan Gonzales, 54, of Anchorage, Alaska, are charged in the two-count indictment. According to information presented to the court, Gumataotao and Gonzales allegedly possessed 52 grams of pure methamphetamine on March 28, 2013.Special Assistant U.S. Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of life in prison, a fine of ten million dollars, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Ms. Loeffler commends the U.S. Postal Inspection Service and the Anchorage Police Department for the investigation of this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Thursday 5 September 2013
Williams and Lavan SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that SONYA LEWIS WILLIAMS, 47, of Baton Rouge, Louisiana, was sentenced to 37months for her convictions on counts of health care fraud and money laundering.
The indictment arose from a health care fraud scheme involving two companies known as Fusion Services, L.L.C. (“Fusion”), and Grace Social Services, L.L.C. (“Grace”), which operated in Alexandria, Louisiana and the surrounding areas. WILLIAMS established the two companies for the purpose of using unlicensed social workers to visit Medicare beneficiaries in their homes several times a week to perform case management, counseling, and social interaction services. WILLIAMS submitted false claims for reimbursement from Medicare indicating that the beneficiaries had received individual, face-to-face psychotherapy from a licensed clinical social worker when no such services had been provided. Medicare paid Fusion and Grace approximately $349,715 as a result of the billings. Much of the profits were transferred from company bank accounts into WILLIAMS’ personal accounts.
In addition to the term of imprisonment, Chief Judge Brian A. Jackson ordered restitution in the amount of $1,223,471 to the Department of Health and Human Services/Centers for Medicare and Medicaid Services. This amount included the total profits from Fusion and Grace, as well as two identical companies that WILLIAMS operated in the Baton Rouge area, Alpha Social Services, L.L.C., and Breitling Investment Company, L.L.C.
This is the second sentencing involving WILLIAMS’ companies. On August 15, 2013, LILLIE LAVAN, age 57, of Pineville, Louisiana, was sentenced by Judge Jackson to 27 months imprisonment, followed by one year of supervised release, for her conviction on one count of health care fraud. LAVAN was a Licensed Clinical Social Worker who worked with Fusion in the Alexandria area. LAVAN participated in creating false and misleading medical records for Fusion indicating that Medicare beneficiaries had received individual, face-to-face psychotherapy when, in fact, no such services had been provided. Judge Jackson also ordered LAVAN to pay restitution in the amount of $115,010 to the Department of Health and Human Services/Centers for Medicare and Medicaid Services.
Acting United States Attorney Walt Green. stated, “Those who abuse our federal health care programs through fraud and corruption should understand our commitment to bring them to justice.”
Department of Health and Human Services Special Agent-in-Charge Mike Fields said, “Our office is committed to the relentless pursuit of those whose sole interest in health care is to raid the Medicare Trust Fund to satisfy their own greed.”
FBI Special Agent-in-Charge Michael Anderson said, “The continued close collaboration of federal law enforcement partners will ensure that justice will be fully served upon those individuals who seek to defraud the health care system.”
“Sonya Williams was sentenced today for her money laundering activities which were a result of a health care scheme,” said Gabriel Grchan, Special Agent-in-Charge IRS Criminal Investigation. “IRS will continue to work with the Health Care Fraud Strike Force to unravel such complex financial crimes and assist in the prosecution of those individuals who engage in illegal business practices.”
The investigation was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, and AdvanceMed, the Medicare Program Safeguard Contractor which assists with health care fraud investigations. The case was prosecuted by Assistant United States Attorneys Catherine M. Maraist and Leetra Harris.
Waterbury Man Sentenced to 10 Years in Federal Prison for Firearms ConvictionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that FRANCISCO TELLADO, 37, of Waterbury, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by six years of supervised release, for illegally possessing a firearm and for violating the conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on August 24, 2012, TELLADO used a 9 millimeter handgun to shoot his brother and his cousin in Naugatuck. He was subsequently apprehended in Waterbury.
TELLADO has prior state felony convictions for criminal possession of a firearm and possession of narcotics, and a prior federal conviction for conspiring to distribute crack cocaine. He was released from federal prison on November 1, 2011 and was serving a six-year term of supervised release at the time of the shootings.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On January 23, 2013, TELLADO pleaded guilty to one count of possession of a firearm by a convicted felon and admitted to having violated the terms of his supervised release.
Judge Chatigny sentenced TELLADO to 96 months of imprisonment for illegally possessing a firearm and a consecutive 24 months of imprisonment for violating his supervised release.
TELLADO was also charged with state offenses as a result of these shootings and, in February 2013, was sentenced to 10 years of incarceration. Judge Chatigny ordered the 10-year federal sentence to be served concurrent with the state sentence.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Waterbury Police Department and the Naugatuck Police Department. This case was prosecuted by Assistant United States Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Two Men in Unrelated Cases Sentenced to Federal Prison for Child Exploitation CrimesRead the Press Release
DENVER – Two men were sentenced this week to serve federal prison sentences for child exploitation crimes, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. The cases of the two men were unrelated.
Michael Burch, age 31, of Seattle, Washington, was sentenced by Senior U.S. District Court Judge Wiley Y. Daniel to serve 121 months in federal prison, followed by 10 years on supervised release, for the crime of travel with intent to engage in illicit sexual conduct, namely engaging in a sex act with a person under 18 years of age. Burch appeared at the sentencing hearing in custody, and was remanded at the hearing’s conclusion.
According to the stipulated facts in Burch’s plea agreement, after numerous internet chats and several phone calls, on August 22, 2012 Burch left Seattle, Washington by commercial bus, arriving in Grand Junction at 3:20 a.m. on August 24, 2012. He thought he was meeting a single mother with two girls, one age 4 and the other age 14. In fact, the single mother he was communicating with was actually an undercover agent. Once Burch arrived in Grand Junction he was placed under arrest.
Paulo dos Santos Silva, Jr., age 38, and a citizen and national of Brazil, was also sentenced by Senior U.S. District Court Judge Wiley Y. Daniel to serve 148 months in federal prison, followed by 5 years on supervised release, for the crime of attempted coercion and enticement. Silva appeared at his sentencing hearing in custody, and was remanded at the hearing’s conclusion.
According to the stipulated facts in Silva’s plea agreement, after multiple sexually explicit internet chats and a phone call, on February 15, 2012, Silva flew from Brazil to Grand Junction to meet a single mother with two girls, ages 4 and 14. In fact, the single mother was actually an undercover agent. At approximately 11:00 a.m., after arriving at the Grand Junction Airport, Silva was arrested.
“Anyone who travels great distances to have sex with children is an especially dangerous predator,” said Kumar C. Kibble, special agent in charge of HSI Denver. “To protect the most innocent and vulnerable members of our communities, our special agents in Homeland Security Investigations take an extremely active role to identify and ultimately remove these predators from society.”
These cases were investigated by ICE Homeland Security Investigations (HSI).
Burch was prosecuted by Assistant U.S. Attorney Valeria Spencer. Silva was prosecuted by Assistant U.S. Attorney Alecia Riewerts Wolak.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Two Indicted in $275 Million Investment Fraud Scheme Involving the Sale of Medical Accounts Receivable to Hedge Funds and Other InvestorsRead the Press Release
Guilty Pleas of Two Conspirators Also Unsealed Today
Baltimore, Maryland – A federal grand jury has indicted Richard Shusterman, age 50, of Highland Beach, Florida, and Jonathan E. Rosenberg, age 44, of West Orange, New Jersey, on charges of conspiracy and wire fraud, in connection with a scheme to defraud equity investors and asset-based lenders in medical accounts receivable of more than $275 million. The indictment was returned on September 4, 2013 and unsealed today upon the arrest of the defendants.
The guilty pleas of Robert Feldman, age 65, of Beach Haven, New Jersey and Douglas A. Kuber, age 53, of Livingston, New Jersey, were also unsealed today. Feldman and Kuber pleaded guilty to conspiracy to commit wire fraud on September 3, 2013 and October 11, 2012, respectively.
The indictment and guilty pleas were 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 Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“The indictment alleges that the defendants perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $275 million,” said U.S. Attorney Rod J. Rosenstein.
According to the 10 count indictment, Richard Shusterman, was a shareholder and president of International Portfolio, Inc. (IPI). Robert Feldman was part owner of IPI, and was also the president of United Consulting, Inc. Shusterman and Feldman represented that IPI was a company that had experience in the field of medical accounts receivable, including their purchase, valuation, collection, and resale. Beginning on June 21, 2006, Shusterman and Feldman, through United Consulting and IPI, engaged in the business of buying and selling consumer debt, including medical debt portfolios.
According to the indictment, Jonathan E. Rosenberg and Douglas A. Kuber, operated Account Receivable Services, LLC (ARS). ARS invested in medical accounts receivable purchased from IPI using funds borrowed from investors interested in asset-based lending. Rosenberg was also president of two other companies that recruited investors for medical accounts receivable portfolios purchased from IPI.
From December 2006 through June 2008, IPI paid more than $25 million to purchase over $4.1 billion in medical accounts receivable, comprising more than 3,872,514 past due patient accounts which the hospitals and other entities selling the accounts had been unsuccessful in collecting. Beginning in June of 2007, Shusterman, Rosenberg, Feldman, and Kuber began promoting an investment model to individual investors and investment fund managers.
To implement the investment model, the conspirators allegedly agreed that Shusterman, through IPI, would batch accounts receivable from IPI’s inventory into discrete debt portfolios with specified total outstanding account balances. These portfolios would then be offered for sale to investors. In addition, Shusterman and IPI would manage all the collection efforts for each debt portfolio IPI sold.
The indictment alleges that Shusterman, Rosenberg, Kuber and Feldman made fraudulent representations and omissions regarding purchase prices, collection results, and resale values of IPI medical debt portfolios in order to persuade investors to invest in those portfolios. The indictment alleges that Shusterman, Rosenberg, Kuber and Feldman negotiated and agreed upon two different purchase prices for each IPI debt portfolio that hedge funds and other investors financed on behalf of ARS. The conspirators set higher purchase prices for the IPI debt portfolios ARS financed through hedge funds and other investors. IPI agreed to kickback the loan proceeds in excess of the true purchase prices to Rosenberg and Kuber. The defendants allegedly characterized the kickbacks as a refund for any unqualified accounts in the portfolio, such as when a debtor was deceased or bankrupt. The indictment alleges that between June 2007 and March 2009, Shusterman paid Kuber and Rosenberg kickbacks totaling approximately $8,318,718.
Further, the indictment alleges that in order to induce existing investors to maintain and increase their participation in the investment scheme and to persuade new investors to join, Shusterman, Rosenberg, Feldman and Kuber falsely represented the actual amount of collections and rates of liquidation of IPI debt portfolios. In fact, because IPI debt portfolios did not generate sufficient collections to meet the minimum debt service payments due to the investors, Shusterman, Rosenberg, Feldman, and Kuber allegedly caused IPI to wire money disguised as “direct payments” to ARS entities to fund interest payments owed to hedge funds and other investors who loaned money for the acquisition of IPI debt portfolios. Specifically, the indictment alleges that between July 2008 and March 2010, the defendants made false and misleading collection reports stating that a total of approximately $56,180,158 in “direct payments” were collected during the liquidation of IPI debt portfolios, in order to deceive hedge funds such as Platinum Partners and other investors. The indictment alleges that in February 2010, Shusterman, Rosenberg, Feldman and Kuber attempted to induce Eton Park Capital Management to invest by portraying four portfolios financed by Platinum as receiving approximately $28.7 million in collections. In fact, the total net collections were approximately $2 million.
Finally, in order to induce investors to buy and/or maintain their investment positions in IPI debt portfolios, and to further conceal substantially lower than projected collection results, Shusterman, Rosenberg, Feldman and Kuber fraudulently repurchased and resold investors’ IPI debt portfolios at artificially inflated prices that neither corresponded to a particular debt portfolio’s actual collection results, nor to an asking price from a purchaser in the debt-buying industry. According to the indictment, Shusterman, Rosenberg, Feldman, and Kuber represented to investors that the IPI debt portfolios sold to them or used as collateral were comprised of medical accounts receivable that IPI had purchased directly from hospitals and medical providers after those institutions had exhausted their efforts to collect from their debtor patients. In fact, the indictment alleges that Shusterman and Feldman intentionally sold to some investors IPI debt portfolios that IPI had previously sold to and repurchased from a different investor, and sometimes multiple investors.
The indictment also seeks the forfeiture of $278,105,193, alleged to be the proceeds of the scheme.
Shusterman and Rosenberg each face a maximum sentence of 20 years in prison for the conspiracy and for each of nine counts of wire fraud. Shusterman was arrested in Baltimore and is scheduled to have his initial appearance in U.S. District Court in Baltimore today at 3:30 p.m. Rosenberg was arrested in Newark, New Jersey and is expected to have his initial appearance in U.S. District Court there today.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Robert Feldman and Douglas Kuber, each pleaded guilty to conspiracy to commit wire fraud and face a maximum sentence of 20 years in prison. Feldman is scheduled for sentencing on December 3, 2013. No sentencing date has been set for Kuber.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Martin J. Clarke and Joyce K. McDonald, who are prosecuting the case.
St. Cloud Man Pleads Guilty to Robbing TCF BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 36-year-old St. Cloud man pleaded guilty to robbing the TCF Bank located at 1001 Fourth Street in St. Cloud. Fehd El Mehdi Kourima specifically pleaded guilty to one count of bank robbery. Kourima, who was indicted on June 10, 2013, entered his plea before United States District Judge Paul A. Magnuson.
In his plea agreement, Kourima admitted that on May 5, 2013, he stole approximately $1,000. At approximately 12:30 p.m. that day, he entered the bank, which is located inside a grocery store, approached a teller, and presented a note that read, “Put as many $100 bills as you can into this envelope in fifteen seconds and no one gets hurt.” After receiving the money, Kourima left the premises and ran to a vehicle parked outside. Kourima was arrested later that day.
For his crime, Kourima faces a potential maximum penalty of 20 years in federal prison. Judge Magnuson will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the St. Cloud Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Katharine T. Buzicky and Nathan P. Petterson.South Jersey Man Sentenced to 97 Months in Prison for Multi-Million-Dollar, Internet-Based Tax Fraud ConspiracyRead the Press Release
WILMINGTON, Del. – Gary Crawford, age 42, of Bridgeton, New Jersey, was sentenced to 97 months in prison today for his role in a conspiracy to file hundreds of false federal income tax returns seeking First Time Home Buyer Credits for the 2008 tax year. Crawford also was order to pay $1,020,388.00 in restitution to the United States Treasury, and was sentenced to three years of supervised release, which will commence following his prison term.
According to statements made at today’s hearing and documents filed in court, Crawford and his co-conspirators used at least 47 Internet service accounts to file at least 358 fraudulent returns seeking the payment of $3,060,770 in tax refunds which were transferred into at least 30 bank accounts and more than 100 prepaid debit card accounts. All of the Internet service accounts and virtually all of the financial accounts were in names other than Crawford’s. The United States Treasury actually paid out $2,265,254 in refunds on 293 fraudulent returns filed by Crawford and his co-conspirators.
The tax fraud scheme was uncovered in 2009, when the IRS’s Fraud Detection Center flagged a large number of false, electronically filed 2008 personal income tax returns seeking First Time Home Buyer Credits by individuals claiming to have purchased homes in Salem and Penns Grove, New Jersey. The First Time Home Buyer Credit permitted a taxpayer to receive a credit of up to $8,000 if the individual purchased a qualifying home between April 8, 2008 and December 1, 2009. To receive the credit, the taxpayer must have been employed and have owed taxes against which the credit could be applied. The IRS confirmed that the individuals listed in the fraudulent returns had not actually purchased homes and, in many cases, had not been employed by the companies listed in their tax returns during 2008.
Following the sentencing hearing, United States Attorney Charles M. Oberly, III, stated, Tax frauds, such as that committed by Gary Crawford, hurt all those who pay their taxes and claim legitimate refunds. Fortunately, the IRS has programs in place to flag schemes like Crawford’s. When identified, such criminal activity will be prosecuted by this office and incarceration sought whenever justified.”
IRS Criminal Investigation Special Agent in Charge Akeia Conner said, “Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law. IRS Criminal Investigation and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to undermine the integrity of the U.S. tax system.”
This case is being investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorneys Edward J. McAndrew and Ilana H. Eisenstein.
Siranush Tulumdzhyan and La Medical Group, Inc. Sentenced for Conspiracy to Commit Health Care Fraud ViolationsRead the Press Release
SIRANUSH TULUMDZHYAN, age 28, of Van Nuys, CA, was sentenced today by U.S. District Court Judge Eldon Fallon for her role in a health care fraud scheme, announced U.S. Attorney Dana J. Boente. TULUMDZHYAN was sentenced to 3 years probation with 6 months in a half-way house. TULUMDZHYAN was ordered to pay restitution to Medicaid in the total amount of $31,589.
LA MEDICAL GROUP, INC., a Louisiana corporation that she operated as a medical clinic, also was also sentenced today to three 3 years supervised release. LA MEDICAL GROUP, INC. was ordered to pay restitution to Medicaid in the total amount of $494,268. The Government seized $269,057 from LA MEDICAL GROUP, INC.
According to the bill of information, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicaid. Patients went to the medical clinic for medical tests that were not performed or medically necessary. Patients were moved between Metairie Health Care to LA MEDICAL to repeatedly perform the same unnecessary tests. Metairie Health care has already been sentenced for the same activity. According to the bill of information, if the patients refused the diagnostic tests at LA MEDICAL, prescriptions for narcotic drugs were withheld. Thereafter, bills for the unnecessary services were submitted to Medicaid. TULUMDZHYAN was the owner of LA MEDICAL and also an unlicensed and unqualified diagnostic technician, according to the bill of information.
The investigation was conducted by Special Agents of the Federal Bureau of Investigation; the U. S. Department of Health and Human Services, Office of Inspector General; and the Louisiana Department of Justice, Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U. S. Attorney Patrice Harris Sullivan.
Sex Offender Who Used Soldier’s Identification SentencedRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that David P. Oswald, age 47, was sentenced to 140 months in prison today by Chief Judge Christina Reiss of the U.S. District Court in Rutland, Vermont. Oswald lived in Vermont for six years, from 2006 - 2012, as Bobby Lee Triplett, a U.S. Army Veteran from North Carolina. Oswald adopted the false identification in order to avoid his obligation to register as a sex offender after a 2005 conviction in Washington State for a sex assault on a child.
After Sgt. Triplett’s car was stolen in Washington State with his military identification in it, Oswald acquired the identification documents and moved to Vermont. In late 2006 he obtained from the Vermont Department of Motor Vehicles a non-driver’s photo identification card as Triplett, which he then used with other documents to obtain a U.S. Passport identifying him as Triplett. Living as Triplett in Williston, Vermont, Oswald obtained a voter registration card, befriended a retired police officer, purchased 10 firearms, acquired a collection of child pornography over the internet, and joined the Vermont State Guard.
In 2011 Oswald had a heart attack, and again posing as Sgt. Triplett, obtained approximately $50,000 worth of cardiac care at Fletcher Allen Health Care in Burlington. The hospital, believing that Oswald was U.S. Army Veteran Triplett, billed the U.S. Veteran’s Affairs. Meanwhile, Sgt. Triplett was on his fourth deployment to the Middle East with the Army. When he returned, he reported to the V.A. in 2012 that he had never been to Vermont. The ensuing investigation by Agent Will Nelson with the V.A.’s Office of Inspector General resulted in Oswald’s September, 2012 arrest in Jonesville, Vermont. Agents found a loaded semi-automatic pistol in his car, along with child pornography and multiple additional firearms in a camper in which he had been staying. When confronted by federal agents and U.S. Marshals, Oswald initially insisted that he was Triplett.
In Court today for sentencing on four federal felonies, Chief Judge Reiss observed that the offenses were particularly aggravated, as Oswald had, among other things, victimized an Army soldier “while he was defending our country” overseas. Chief Judge Reiss imposed a sentence of 140 months in prison, followed by a lifetime of supervised release. She also ordered over $50,000 in restitution to the V.A. and Fletcher Allen Health Care.
The case was investigated by the V.A. Office of Inspector General, the U.S. Marshal’s Service, and the Bureau of Alcohol, Tobacco and Firearms. The V.A. Police Department in White River Junction, Vermont also assisted. Oswald was represented by Assistant Federal Defender David McColgin of Burlington. The United States was represented by Assistant U.S. Attorney Bill Darrow.
Rochester Tax Preparer Pleads Guilty to Tax ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jorge O. Laurido, 54, of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to four counts of assisting in the preparation of false tax returns. Each charge carries a maximum penalty of three years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendant prepared and filed false income tax returns for tax filers in Rochester. Specifically, the defendant filed tax returns for the years 2007 through 2010 that falsely represented the taxpayers earned amounts of self-employment income. This allowed Laurido's clients to be eligible for larger Earned Income Credits. The false returns resulted in the taxpayers receiving larger refunds than they were entitled to. The Internal Revenue Service determined that the false tax returns prepared and filed by the defendant resulted in losses totaling $116,139.00.
Sentencing is scheduled for December 5th, 2013 at 4:00 p.m. before Judge Geraci.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigation, under the direction of Special Agent In Charge Toni Weirach.Port Deposit Man Sentenced to 12 Years in Prison for Receipt of Child PornographyRead the Press Release
DVD Depicts Ragan Having Sex With a Boy
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael Dean Ragan, Jr., age 31, of Port Deposit, Maryland, yesterday to 12 years in prison followed by 35 years of supervised release for receipt of child pornography. Judge Hollander further ordered that upon his release from prison, Ragan will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to the plea agreement, on January 30, 2011, law enforcement seized Ragan’s laptop computer, desktop computer, camera, hard drive and other digital media during a search in an unrelated counterfeit currency investigation. Ragan later pleaded guilty to state counterfeit charges. Approximately 335 images and 17 videos of minors and prepubescent minors engaged in sexually explicit conduct, including acts of sadism, masochism of other depictions of violence, were found on the seized items.
In addition, a video on a DVD depicted Ragan engaged in sexually explicit conduct with a minor. The video was taken without the boy’s knowledge. Ragan also admitted to being an administrator on a website dedicated to viewing, sharing and distributing child pornography. Ragan received a video on May 26, 2010 depicting two minor males engaging in sex.
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Secret Service and Maryland State Police for their work in the investigation, and thanked the Maryland State Police for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Owners of Home Health Companies and Patient Recruiter Plead Guilty in Miami for Role in $20 Million Health Care Fraud SchemeRead the Press Release
The owners and operators of several Miami home health care agencies and a patient recruiter pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Trust Care Health Services Inc. (Trust Care).
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; Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami office; and Acting Special Agent in Charge Michael J. DePalma of the Internal Revenue Service—Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
Roberto Marrero, 60; Sandra Fernandez Viera, 49; and Enrique Rodriguez, 59, all of Miami, pleaded guilty before U.S. Magistrate Judge Edwin G. Torres in the Southern District of Florida to conspiracy to commit health care fraud and conspiracy to receive and pay health care kickbacks.
Marrero and Fernandez Viera were owners and operators of Trust Care, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Rodriguez worked as a patient recruiter on behalf of Trust Care and Marrero and Fernandez Viera.
According to court documents, Marrero and Fernandez Viera operated Trust Care for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Marrero largely controlled Trust Care and, in light of that role, oversaw the schemes operating out of the company. Fernandez Viera’s primary role, among others, involved managing and supervising personnel at Trust Care. Both Marrero and Fernandez Viera were responsible for negotiating and paying kickbacks and bribes, interacting with patient recruiters, and coordinating and overseeing the submission of fraudulent claims submitted to the Medicare program.
Marrero, Fernandez Viera and their co-conspirators paid kickbacks and bribes to patient recruiters, including Rodriguez, in return for the recruiters providing patients to Trust Care for home health and therapy services that were medically unnecessary and/or not provided. Marrero, Fernandez Viera and their co-conspirators at Trust Care also paid kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for home health and therapy prescriptions, medical certifications and other documentation. Marrero, Fernandez Viera and their co-conspirators used these prescriptions, medical certifications and other documentation to fraudulently bill the Medicare program for home health care services, which Marrero and Fernandez Viera knew was in violation of federal criminal laws.
Rodriguez offered and paid kickbacks and bribes to Medicare beneficiaries in return for those beneficiaries allowing Trust Care to bill Medicare for services that were medically unnecessary and/or not provided. Rodriguez solicited and received kickbacks and bribes from the owners and operators of Trust Care, including Marrero and Fernandez Viera, in return for his patient recruiting. Rodriguez knew that in many instances the patients he recruited for Trust Care did not qualify for the services billed to Medicare.
From approximately March 2007 through at least October 2010, Trust Care submitted more than $20 million in claims for home health services. Medicare paid Trust Care more than $15 million for these fraudulent claims.
Marrero, Fernandez Viera and Rodriguez also acknowledged their involvement in similar fraudulent schemes at several other Miami health care agencies in addition to Trust Care with estimated total losses of approximately $50 million, including Global Nursing Home Health Inc., Lovable Home Health Services Corp., New Concepts In Health Inc., Ubieta Health System Inc., R&M Health Care Inc., Vital Care Home Health Services Inc., Centrum Home Health Care Inc. and A&B Health Services Inc.
At sentencing, scheduled for Nov. 12, 2013, the defendants face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud and five years in prison for conspiracy to receive and pay health care kickbacks.
The case was investigated by the FBI and HHS-OIG, with the assistance of IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s 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, are taking steps to increase accountability and decrease the presence of fraudulent providers.To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owners of Home Health Companies and Patient Recruiter Plead Guilty in Miami for Role in $20 Million Health Care Fraud SchemeRead the Press Release
The owners and operators of several Miami home health care agencies and a patient recruiter pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Trust Care Health Services Inc. (Trust Care).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami office; and Acting Special Agent in Charge Michael J. DePalma of the Internal Revenue Service—Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
Roberto Marrero, 60; Sandra Fernandez Viera, 49; and Enrique Rodriguez, 59, all of Miami, pleaded guilty before U.S. Magistrate Judge Edwin G. Torres in the Southern District of Florida to conspiracy to commit health care fraud and conspiracy to receive and pay health care kickbacks.
Marrero and Fernandez Viera were owners and operators of Trust Care, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Rodriguez worked as a patient recruiter on behalf of Trust Care and Marrero and Fernandez Viera.
According to court documents, Marrero and Fernandez Viera operated Trust Care for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Marrero largely controlled Trust Care and, in light of that role, oversaw the schemes operating out of the company. Fernandez Viera’s primary role, among others, involved managing and supervising personnel at Trust Care. Both Marrero and Fernandez Viera were responsible for negotiating and paying kickbacks and bribes, interacting with patient recruiters, and coordinating and overseeing the submission of fraudulent claims submitted to the Medicare program.
Marrero, Fernandez Viera and their co-conspirators paid kickbacks and bribes to patient recruiters, including Rodriguez, in return for the recruiters providing patients to Trust Care for home health and therapy services that were medically unnecessary and/or not provided. Marrero, Fernandez Viera and their co-conspirators at Trust Care also paid kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for home health and therapy prescriptions, medical certifications and other documentation. Marrero, Fernandez Viera and their co-conspirators used these prescriptions, medical certifications and other documentation to fraudulently bill the Medicare program for home health care services, which Marrero and Fernandez Viera knew was in violation of federal criminal laws.
Rodriguez offered and paid kickbacks and bribes to Medicare beneficiaries in return for those beneficiaries allowing Trust Care to bill Medicare for services that were medically unnecessary and/or not provided. Rodriguez solicited and received kickbacks and bribes from the owners and operators of Trust Care, including Marrero and Fernandez Viera, in return for his patient recruiting. Rodriguez knew that in many instances the patients he recruited for Trust Care did not qualify for the services billed to Medicare.
From approximately March 2007 through at least October 2010, Trust Care submitted more than $20 million in claims for home health services. Medicare paid Trust Care more than $15 million for these fraudulent claims.
Marrero, Fernandez Viera and Rodriguez also acknowledged their involvement in similar fraudulent schemes at several other Miami health care agencies in addition to Trust Care with estimated total losses of approximately $50 million, including Global Nursing Home Health Inc., Lovable Home Health Services Corp., New Concepts In Health Inc., Ubieta Health System Inc., R&M Health Care Inc., Vital Care Home Health Services Inc., Centrum Home Health Care Inc. and A&B Health Services Inc.
At sentencing, scheduled for Nov. 12, 2013, the defendants face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud and five years in prison for conspiracy to receive and pay health care kickbacks.
The case was investigated by the FBI and HHS-OIG, with the assistance of IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s 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, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Home Health Care Company Sentenced to 10 Years in Federal Prison for Role in Health Care Fraud ConspiracyRead the Press Release
Defendant Also Ordered to Pay More Than $25 Million in Restitution
DALLAS — Cyprian Akamnonu, 64, of Cedar Hill, Texas, was sentenced this morning by U.S. District Judge Sam A. Lindsay to the statutory maximum of 10 years in federal prison and ordered to pay $25,466,779 in restitution, following his guilty plea in October 2012 to one count of conspiracy to commit health care fraud. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In handing down the sentence and in response to a plea for leniency, Judge Lindsay stated, “For persons out there who are inclined to commit health care fraud, a low sentence in this case would have no deterrent effect.” Judge Lindsay also ordered that Akamnonu, who is in custody, forfeit the following property to the government: four vehicles, 21 parcels of real estate located in Dallas, Cedar Hill and Grand Prairie, Texas and funds in several business and personal bank accounts.
According to documents filed in the case, Akamnonu and his wife/business partner/co-defendant, Patricia Akamnonu, R.N., co-owned Ultimate Care Home Health Services. Akamnonu admits that from January 2006 through November 2011, he conspired with co-defendants Dr. Jacques Roy and others to defraud Medicare in connection with the delivery of, and payment for, health care benefits, items and services.
A trial date of January 13, 2014, is set for Akamnonu’s co-defendants, Dr. Roy, Patricia Akamnonu, Cynthia Stiger, Wilbert James Veasey, Teri Sivils and Charity Eleda.
According to documents filed in the case, at Akamnonu’s direction, his wife Patricia, and others, recruited Medicare beneficiaries to Ultimate to receive home health care services for which they did not qualify and did not need. Akamnonu and others would approach people throughout Dallas-area neighborhoods to see if they were qualified Medicare beneficiaries, and if they were, they would attempt to sign them up for home health services.
Once a beneficiary was recruited, Akamnonu would take paperwork to Sivils and other employees of Medistat Group Associates, PA., to be signed on behalf of Dr. Roy, certifying that the Medicare beneficiary was under Dr. Roy’s care, homebound and in need of skilled nursing services, thus allowing Ultimate to bill Medicare for the skilled nursing services. Akamnonu and Dr. Roy had an agreed-upon, fraudulent arrangement in which Ultimate provided Dr. Roy with the beneficiaries to bolster Medistat’s patient roster in exchange for Roy’s certification for skilled nursing services of any beneficiary sent to him. In addition, Sivils signed Ultimate’s paperwork on behalf of Dr. Roy because Akamnonu paid her cash kickbacks in exchange for doing so.
At Akamnonu’s direction, nurses would perform cursory visits to the beneficiaries at their homes that bore little relationship to the skilled nursing services for which the beneficiaries had been certified. Then, at Akamnonu’s direction, Ultimate would bill Medicare for skilled nursing services that were not necessary and were never in fact provided.
During this five-year period, more than 72% of Ultimate’s beneficiaries were certified by Dr. Roy or another Medistat physician acting at his direction. Ultimate billed more than $40 million to Medicare for skilled nursing services for these beneficiaries and Dr. Roy, in turn, incorporated these patients into his own practice and billed more than $2.3 million for services related to them.
The case is being investigated by the FBI, the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorneys Michael C. Elliott, Mindy Sauter, P. J. Meitl and John DeLaGarza are in charge of the prosecution.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, please visit: www.stopmedicarefraud.gov.
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in San Francisco against Daniel Rosenbledt of Hillsborough, Calif. Rosenbledt is the 36th individual to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Rosenbledt conspired with others not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Mateo and San Francisco counties, Calif. Rosenbledt was also charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs, and to divert to co-conspirators money that would have otherwise gone to mortgage holders and others.
Court papers stated Rosenbledt conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in San Mateo County beginning as early as April 2008 and continuing until about January 2011. Rosenbledt was also charged with similar conduct in San Francisco County beginning as early as November 2009 and continuing until about January 2011.
“The Antitrust Division remains committed to vigorously pursuing conspirators who collude at foreclosure auctions at the expense of lenders and distressed homeowners,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “A competitive process benefits those homeowners who are looking for the best possible outcome during a difficult situation.”
The filing stated that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Mateo and San Francisco County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“For those who engage in illegal anticompetitive practices at foreclosure actions, we will hold you accountable for your actions and bring you to justice,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The FBI and the Antitrust Division are committed to rooting out those who undermine the real estate market and take advantage of legitimate home buyers and sellers.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges today are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Alameda and Contra Costa counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm or call the FBI tip line at 415-553-7400.
Today's charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were
subsequently dismissed on the government’s motion.**
Nigerian National Sentenced to 100 Months for Involvement in Scheme to Defraud Lawyers Out of MillionsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Nigerian national charged in connection with a multi-national scheme that bilked more than $70 million from U.S. and Canadian lawyers was sentenced to serve 100 months in federal prison.
According to United States Attorney Peter J. Smith, Emmanuel Ekhator, age 42, of Mississauga, Canada, and Benin, Nigeria, was sentenced Wednesday by District Court Judge Yvette Kane following his plea of guilty to criminal conspiracy to commit mail fraud and wire fraud. Ekhator was ordered to pay $11,092,028 restitution to victims and serve a three-year term of supervised release following his incarceration. Judge Kane also directed the forfeiture of properties in Canada and the contents of several bank accounts in Nigeria.
According to the information the prosecutor provided to the court during the guilty plea proceeding, Ekhator was part of an attorney collection scam. Conspirators contacted U.S. and Canadian law firms by e-mail claiming to be individuals or businesses outside North America who were owed money by entities in the U.S. and asking for legal representation to collect the money. Often, the prospective “clients” said the monies owed came from a real estate transaction, tort claim, or divorce settlement. Once the law firm agreed to represent the out-of-country “client”, the law firm would be contacted by the U.S. entity purportedly owing money with an offer to pay the “client” by check. The “client” would instruct the law firm to deposit the check in the law firm’s trust account, retain the law firm’s fee, and wire the remaining funds to accounts in Asia. The check that was then mailed to the law firm would be a counterfeit check, a fact that would be discovered only after funds from the law firm’s trust account had been wired to the Asian bank.
The counterfeit checks, which appeared to be drawn on legitimate accounts from well-established financial institutions, often included a telephone number for the financial institution. Lawyers attempting to determine the validity of the check would call the number only to reach another conspirator who would falsely verify the check.
Ekhator’s co-defendant, Yvette Mathurin, has been charged in connection with this aspect of the conspiracy and is awaiting extradition from Canada. Investigation continues against other members of the large, multi-national conspiracy. Another co-conspirator, Kingsley Osagie, was arrested as he arrived in the Atlanta area from Nigeria and is currently awaiting trial in the Middle District of Pennsylvania. Other co-conspirators are pending extradition from several foreign countries.
As part of the agreement between lawyers for Ekhator and the government, the lawyers told the court that Ekhator’s involvement in the scheme makes him responsible for losses of more than $7 million and up to $20,000,000. Ekhator also admitted to being a leader in the criminal enterprise and that sophisticated means were used to commit the crime.
Ekhator was arrested in Nigeria in August 2010, and extradited to the United States in August 2011.
This case was investigated by a task force including the United States Postal Inspection Service, the Federal Bureau of Investigation, the United States Secret Service, the Toronto Police Services, the Royal Canadian Mounted Police and the Nigerian Economic and Financial Crimes Commission. It was prosecuted by Assistant U.S. Attorney Christy H. Fawcett.
Newark Man Federally Charged with Convenience Store Robbery SpreeRead the Press Release
NEWARK, N.J. – A man who allegedly committed six armed robberies of Newark convenience stores – including the same grocery twice within a week – has been federally charged in connection with the spree, U.S. Attorney Paul J. Fishman announced.
Larry McRae, 26, of Newark, is charged by complaint with six Hobbs Act robberies and one count of discharging a firearm in furtherance of a crime of violence. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.
According to the complaint unsealed today:
From June 30, 2012 through Sept. 15, 2012, McRae entered the convenience stores on six different occasions, robbing the store clerks at gunpoint. During the robbery of the Moroni Deli on Sept. 15, 2013, he discharged one round from a handgun as he exited the store. McRae was apprehended by members of the Newark Police Department later that morning and has been in state custody since that time.
The dates and locations of the robberies were as follows:
Date
Location
Moroni Deli
Sept. 5, 2012
P&T Grocery
Sept. 1, 2012
P&T Grocery
Aug. 29, 2012
New B&C Meat Market
June 30, 2012
Arvelo Mini Market
June 30, 2012
Angel Mini Market
Each of the Hobbs Act robbery charges carries a maximum potential penalty of 20 years in prison. The discharging a firearm in furtherance of a crime of violence charge carries a mandatory minimum penalty of 10 years in prison to run consecutive to any sentence that he receives for the Hobbs Act robbery charge and a maximum potential penalty of life in prison. Each of the seven counts also carries a maximum $250,000 fine.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and the Newark Police Department, under the leadership of Director Samual A. DeMaio and Chief Sheilah A. Coley for their excellent work on the case.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and the allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-355
Defense counsel: Assistant Federal Public Defender John Yauch Esq., Newark
McRae, Larry Complaint
New York Man Charged with EscapeRead the Press Release
Jermaine Heylinger, 41, of Jamaica, New York, was charged today by Indictment with one count of escape, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of five years imprisonment, a $250,000 fine, 3 years supervised release and a $100 special assessment.
The case was investigated by the United States Marshal Service and is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Jersey U.S. Attorney’s Office Seeks to Forfeit Assets of Unlicensed Money Transmitter TrustcashRead the Press Release
NEWARK, N.J. – The New Jersey U.S. Attorney’s Office today filed a civil asset forfeiture complaint seeking the forfeiture of hundreds of thousands of dollars held in bank accounts previously seized by special agents of the U.S. Secret Service from an Atlanta-based unlicensed money transmitting business, U.S. Attorney Paul J. Fishman announced.
The complaint alleges that the assets are property involved in, or traceable to, deposits made into and through TCash Ads Inc. and its affiliate, Trustcash Holdings Inc. (“TCash”), in operating the illegal virtual currency service.
According to the complaint filed in Newark federal court:
TCash is an online payment processing service that enables individuals to anonymously purchase goods and virtual currency credits from entities who are registered with the service. Users can enter any number of national bank locations and deposit cash into a TCash account. TCash accounts can be used to pay any TCash-registered entity, including virtual currency exchanges and off-shore accounts in Canada, Cyprus, the Philippines, China, Nepal, Australia and elsewhere.
The service’s website offers deposit, charge, and mobile payment as methods to process payments, advertising that it is “a leader in payment processing, and offers a powerful suite of payment services…” The website also indicates that if a customer uses a credit card, it will be billed as “TCash Ads Inc,” and that the service has the ability to accept payments from credit cards, e-checks, online bank accounts and cash and to provide customer anonymity.From as early as 2008 through 2012, TCash facilitated the transmission of millions of dollars, including transactions involving individuals in New Jersey.
Federal law requires every financial institution that operates as a money transmitting or service business (MTB) to be licensed in the state in which it is operating and to be registered with the Treasury Department through the Financial Crimes Enforcement Network (FinCEN). TCash does not possess the appropriate license in any state in which it appears to operate – including New Jersey, Georgia, California, Texas, New York and Delaware – and is not registered with FinCEN.
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Civil forfeiture cases are “in rem” proceedings – meaning they are proceedings against things, not persons or entities who allegedly committed underlying unlawful acts. The law permits persons claiming an interest in the property an opportunity to appear and present their cases that they are innocent owners of the property and the property should not be forfeited.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of James Mottola, Special Agent in Charge of the Newark Office, and support from FinCEN, a bureau within the U.S. Department of the Treasury, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Evan S. Weitz of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit and Aaron Mendelsohn of the office’s Economic Crimes Unit in Newark.13-353
Defense counsel: Douglas R. Jensen Esq., New York
TCash Complaint
Neptune Township, N.J., Man Indicted for Shooting of Cab Driver and Several Armed Robberies in Monmouth CountyRead the Press Release
TRENTON, N.J. – A federal grand jury in Trenton, N.J., returned an indictment today charging a Neptune Township, N.J., man with shooting a cab driver during a 24-hour run of armed robberies in New Jersey shore-area towns, U.S. Attorney Paul J. Fishman announced.
Quam Wilson, 23, is charged in the 11-count indictment with five counts of committing a Hobbs Act robbery, five counts of using a firearm during a crime of violence and one count of possession of a firearm by a previously convicted felon.
Wilson was initially arrested and charged by federal criminal complaint with the conspiracy and firearms counts on March 13, 2013. He appeared on June 3, 2013, before U.S. Magistrate Judge Lois H. Goodman, who remanded him to federal custody pending trial. Wilson will be arraigned on the indictment on a date to be determined.
According to the indictment unsealed today and other documents filed in this case:
Wilson engaged in a crime spree that began at approximately 5:00 a.m. on Nov. 13, 2012, when he shot and robbed a cab driver in Asbury Park. The victim, who survived, sustained a single gunshot wound to the head and was taken to Jersey Shore University Medical Center. Wilson took the cab driver’s identification and debit card during the robbery.
Wilson then proceeded to a Shell gas station located in Ocean Township at approximately 7:00 a.m. There, he approached a gas station attendant and, while brandishing a handgun, robbed him of cash and fled the area.
Later that morning, Wilson attempted to obtain money from the cab driver’s bank account from several area banks. Suspecting that a theft was taking place, a bank employee confiscated the identification and debit card from Wilson and contacted police.
At approximately 9:00 p.m. that same day, Wilson committed an armed robbery at a taxi stand in Long Branch, again while brandishing a handgun.
During the early morning hours of the next day, Nov. 14, 2012, Wilson robbed an Exxon gas station in Red Bank at gunpoint.
A short time later, Wilson entered a Quick Check convenience store in Neptune Township. Again, he pointed a handgun at a cashier and demanded money.
Wilson was arrested at approximately 10:00 p.m. by several police officers in Asbury Park, where he had been hiding in an attic.
Each count of Hobbs Act robbery (Counts One, Three, Five, Seven and Nine) carries a maximum potential penalty of 20 years in prison. The charge of using a firearm during a crime of violence (Counts Two, Four, Six, Eight and Ten) carries a maximum potential penalty of life in prison and a mandatory minimum sentence of 10 years in prison for a conviction on Count Two (which charges discharging a firearm in connection with robbing the cab driver), and 25 years for each subsequent count of conviction, each of which must run consecutively to one another and to any other prison term. The charge of possession of a firearm by a convicted felon (Count Eleven) carries a maximum potential penalty of 10 years in prison. Each of the counts also carries a maximum $250,000 fine.U.S. Attorney Fishman praised special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, with the investigation. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, Asbury Park Police Department, Ocean Township Police Department, Long Branch Police Department, Neptune Township Police Department and the United States Marshals Service Fugitive Task Force for their excellent work in the investigation and apprehension of Wilson.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Edward Bertuccio Esq. Eatontown, N.J.
Wilson, Quam Indictment
Moses Lake Power Lifter Sentenced to 30 Months for Importing Anabolic Steroids into the United States from IndiaRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ryan Shawn Kennelly, age 39, of Moses Lake, Washington, was sentenced for the crime of importing anabolic steroids into the United States from India. On September 5, 2013, Senior United States District Judge Fred Van Sickle sentenced Kennelly to a 30 month term of imprisonment, to be followed by a 3 year term of court supervision following release from Federal prison.
On March 8, 2013, Kennelly pleaded guilty to the charge of importing anabolic steroids into the United States. He has been in Federal custody since he was arrested in February, 2013.
According to information disclosed during the court proceedings, in December 2010, an overseas package for Kennelly arrived at the U.S. Post Office in Kennewick, Washington. Kennelly contacted the post office to find out if his international package arrived. After obtaining a Federal warrant to search the package, U.S. Postal Inspectors seized 1,503 anabolic steroid (methandrostenolone) tablets. The tablets had been mailed to Kennelly from Mumbai, India. The local Grant County Interagency Narcotics Enforcement Team (INET) had previously seized over 1 kilogram of powder anabolic steroids during a search of Kennelly's Moses Lake, Washington residence in October 2010.
Michael C. Ormsby said: "This case evidenced once again the strong working partnership established between Federal and local law enforcement officers in the Eastern District of Washington. The United States Attorney's Office, together with Federal and local law enforcement officers, is committed to investigate and prosecute aggressively crimes involving the importation of controlled substances into the United States. This case is an outstanding example of that commitment"
The investigation was conducted by the United States Postal Inspectors and Grant County Interagency Narcotics Enforcement Team. The case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
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Monroe County Man Charged with Possessing GBLRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old East Stroudsburg resident was charged today with unlawfully possessing gamma butyrolactone (GBL), a controlled substance analogue.
According to United States Attorney Peter J. Smith, his office filed a criminal Information today against Michael Koepfler for possessing GBL, which has a similar chemical composition to, and has the same effect on humans who ingest it, as GHB.
The charge against Koepfler stems from an investigation by Homeland Security Investigators. It is alleged that Koepfler possessed the substance in April 2011.
The case is being prosecuted by Assistant U.S. Attorney Francis
P. Sempa.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 one year 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.
Monroe County Man Charged with False ERISA DocumentsRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the filing of an Information charging Charles A. Poalillo, Jr., age 80, of Monroe County, Pennsylvania, with filing false documents related to taking over a million dollars from pension funds.
According to United States Attorney Peter J. Smith, Poalillo was the former owner of Penn Hills Lodge, Inc., a Pocono honeymoon resort located in Analomink, Pennsylvania. While he operated Penn Hills Lodge and related businesses, Poalillo borrowed approximately $1 million from two pension funds. He is being charged with falsely reporting the security of these assets to the United States Department of Labor. Pursuant to a guilty plea agreement filed with the Information, Poalillo is agreeing to attempt to make full restitution by the time of sentencing.
The United States Department of Labor’s Employee Benefits Security Administration and the Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, conducted the investigation. The Monroe County District Attorney’s Office initiated the investigation and assisted the federal authorities. Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
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 these particular cases, the maximum penalty under the federal statute is five years of imprisonment and 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.
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