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31 October 2013
Aloha, Oregon Woman, A Former Credit Union Employee, Sentenced for Money LaunderingRead the Press Release
PORTLAND, Ore. - Janelle Fuston, 25, of Aloha, Oregon, was sentenced yesterday by U.S. District Judge Marco A. Hernandez to five years of probation and 200 hours of community service for the crime of money laundering. She was also ordered to pay $48,243 to the government in the form of a money judgment. Fuston pleaded guilty to the crime of money laundering in April of this year, and the money judgment represents a portion of the approximately $120,000 that Fuston admitted to laundering for her co-defendant and ex-boyfriend, Larry Fuentes.
Between April 2011 and April 2012, Fuston, who was employed at the time by First Tech Federal Credit Union in Beaverton, agreed to launder over $120,000 in Fuentes’s drug proceeds. Defendant Fuston admitted she knew that Fuentes had no legitimate income, that she knew the cash he was providing her constituted drug proceeds, and that she deposited the drug money into multiple accounts held in her name at First Tech Federal Credit Union. She further admitted to establishing one of the accounts at First Tech in her name for the sole purpose of storing those drug proceeds, and to breaking up the drug proceeds into multiple deposits because ATMs could only accept a limited number of bills at a time.
Before their crime was discovered, Fuston and Fuentes spent all but approximately $11,000 of the laundered drug proceeds, enjoying the fruits of their illegal conduct in the form of vacations, tanning salons, and other luxuries. Fuston was fired from her job at First Tech once her conduct was discovered, and her plea agreement provides that she is prohibited from working in the financial industry for ten years following her conviction.
Fuston’s co-defendant, Larry Fuentes, has also pleaded guilty to the crime of money laundering, and is scheduled for sentencing on February 4, 2014.
The investigation of this case was conducted by the High Intensity Drug Trafficking Area Interdiction Task Force, including the Portland Police Bureau’s Drugs and Vice Division, the Department of Homeland Security, and the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Katie Lorenz.
Alleged Lancaster County Fraudster Facing Additional ChargesRead the Press Release
PHILADELPHIA - Debra Lightfoot, a/k/a "A.T.B.," 57, of Lititz, PA, was charged today by superseding indictment with transmitting a threat by interstate communications, and threat of assaulting, resisting, opposing, impeding, intimidating, or interfering with a Government Employee in the course of official duties, announced United States Attorney Zane David Memeger. According to the Superseding Indictment, the defendant threatened an employee of the Social Security Administration while speaking to that employee by telephone. The superseding indictment adds the two new counts to 11 counts of wire fraud, one count of theft of government funds, two counts of Social Security Fraud, and one count of aggravated identity theft. Lightfoot allegedly used a stolen Social Security number to work while collecting disability payments from the Social Security Administration under her true identity. She was arrested on October 7, 2013 on a criminal complaint and is detained pending trial.
If convicted, Lightfoot faces a maximum possible sentence of 248 years imprisonment, a three‑year period of supervised release, restitution to the government of $137,665 and a $1,625 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Albuquerque Man Sentenced to Seven Years for Using a Firearm to Rob a Pharmacy of Prescription PainkillersRead the Press Release
ALBUQUERQUE – James Phillip Tafoya, 43, of Albuquerque, N.M., was sentenced this afternoon to seven years in federal prison followed by three years of supervised release for his conviction for using a firearm in relation to a crime of violence. He also was ordered to pay $930.82 in restitution.
Tafoya was arrested in Jan. 2013, on a three-count indictment charging him with (1) violating the Hobbs Act by robbing a business involved in interstate commerce, (2) using a firearm in relation to a crime of violence, and (3) theft of medical products. Count 1 of the indictment alleged that Tafoya robbed an employee of an Albuquerque-area CVS Pharmacy at gunpoint on Nov. 3, 2012, and stole Oxycodone and Oxycontin. Count 2 alleged that Tafoya used a firearm to perpetuate the robbery, and Count 3 alleged that Tafoya used violence and the threat of violence to unlawfully take pre-retail medical products.
In July 2013, Tafoya pled guilty to Count 2 of the indictment and admitted that on Nov. 3, 2012, he committed armed robbery of the CVS store located at 9640 Menual Blvd NE, in Albuquerque. Tafoya admitted entering the store, displaying and brandishing a firearm in order to intimidate the clerk, and demanding that the clerk give him Oxycodone and Oxycontin. He also admitted knowing that CVS is a business engaged in interstate commerce, and that he used a firearm to knowingly and unlawfully take pre-retail medical products through the threat of violence or force.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Jon K. Stanford. The case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. This initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under the anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from our communities for as long as possible.
Alaska Man Pleads Guilty to Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that Scott Falk, age 29, of Kenai, Alaska, appeared before U.S. Magistrate Judge Veronica L. Duffy on October 21, 2013, and pled guilty to a charge of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor.
The charge carries a maximum penalty upon conviction of 20 years and a $250,000 fine. Falk will be required to register as a sex offender.
As part of a sex-trafficking undercover operation during the 2013 Sturgis Motorcycle Rally in August, Falk was arrested for attempting to obtain sex with a 13-year old girl. Falk responded to a law enforcement-generated internet advertisement which advertised sex with a fictitious 12 or 13 year-old girl and negotiated the terms of the sexual encounter. Falk then met with an undercover agent posing as someone who could provide the young girl, and was subsequently arrested.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce, the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, the Pennington County Sheriff’s office, and the Meade County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.Acoma Pueblo Man Sentenced to Forty Months for Domestic Assault by a Habitual OffenderRead the Press Release
ALBUQUERQUE – Eric Thomas Valley, 42, was sentenced this morning to 40 months in federal prison followed by three years of supervised release for his conviction for domestic assault by a habitual offender. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Police Chief Vincent M. Mariano of the Acoma Tribal Police Department.
Valley, a member and resident of Acoma Pueblo, was arrested in Oct. 2012, based on a criminal complaint alleging that he assaulted his domestic partner, also a member of Acoma Pueblo, by striking her in the head with a wooden rolling pin. The victim sustained numerous injuries, including three lacerations to the head that had to be stapled closed, as a result of the assault. Valley subsequently was charged in a three-count indictment with (1) domestic assault by a habitual offender; (2) assault resulting in serious bodily injury; and (3) assault with a dangerous weapon.
In April 2013, Valley pleaded guilty to Count 1 of the indictment and admitted assaulting his girlfriend on Oct. 10, 2012, on Acoma Pueblo. Valley also admitted that he previously has been convicted on domestic violence offenses on two occasions. Court records reflect that Valley has prior convictions for battery on a household member in Magistrate’s Court in Cibola County, N.M., in June 2005, and battery against a household member in Acoma Tribal Court in May 2009.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services, and the Acoma Tribal Police Department, and was prosecuted by Special Assistant U.S. Attorney David Adams and Assistant U.S. Attorney Kyle T. Nayback.
This case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
25 Sentenced in Operation Prison CellRead the Press Release
CORPUS CHRISTI, Texas – 14 former Texas Department of Criminal Justice (TDCJ) correction officers and 11 others have been ordered to federal prison following their convictions related to a large-scale racketeering case involving the McConnell Unit in Beeville, announced United States Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI) in Houston.
“’Operation Prison Cell’ is a very appropriate name for this investigation in that it describes where those responsible for the corruption, trafficking and violence uncovered in this case will spend a considerable portion of the rest of their lives,” said Moskowitz. “Unfortunately, while we expect convicted criminals to act like criminals, we will not tolerate those entrusted to serve the public to do the same, and these sentences send an unmistakable message to both the corrupted and their corruptors that we will catch you and punish you for your crimes.”
With the exception of Juan Ledezma, who was convicted following a two-day trial, 28 others pleaded guilty to varying counts of racketeering or other charges. U.S. District Judge Hayden Head, who accepted the guilty pleas and presided over the trial, handed down the sentences against 25 of those convicted from Tuesday through today. Four others will be sentenced at a later date.
Former McConnell Unit guards Stephanie Deming, 24, Lela Ysolde Hinojosa, 52, and Arturo Salas, 23, all of Beeville, Christy Nesloney, 27, of Cuero, James Randal Standlea, 25, of Mathis, Desiree Silguero, 43, of McAllen, Emmanuel Cotto, 32, of San Antonio, Megan Brook Morales, 24, of Bulverde, Lakeisha Jeanette Reid, 25, of Austin, Jaime Jorge Garza, 38, of Santa Elena, and Oscar Juraidini, 25, of Brownsville, were all convicted of one count of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), as was contract mental health professional Kimberly Koenig, 32, of Victoria. Nesloney was sentenced today to 28 months in federal prison, while Deming received 27 months, while Reid received a sentence of 24 months in federal prison, while Salas and Juraidini will each serve 22 months. Hinojosa and Morales each received 21-month terms of incarceration, while Garza will be in prison for 15 months. Silguero and Cotto will serve five months to be immediately followed by another five months on home confinement. Standlea and Koenig will be on probation for three years.
Other McConnell Unit Guards Jamar Tremayne Green 30, of Refugio, Casey Simmons, 25, of Kenedy, and Justin Leonard, 24, of Cypress, were convicted of conspiracy to possess with the intent to distribute ecstasy, marijuana and cocaine, respectively. Simmons was sentenced to three years of probation, while Green and Leonard will serve five months in prison plus five months of home confinement.
Seven of the 10 individuals considered “facilitators” in the case were also sentenced today. Yvonne Sandoval, 37, of Corpus Christi, Maria Fernanda Hidalgo, 32, of McAllen, and Lindsey Elaine Savage, 30, of Copperas Cove, were all convicted of RICO and received sentences of 18 months, 12 months plus one day, and 38 months, respectively. Melissa Lozano, 29, of San Antonio, was also convicted on the RICO count and will be sentenced Nov. 25, 2013. The six other facilitators pleaded guilty to one count of money laundering. Juanita Beltran Mendez, 50, of Bishop, will be on probation for five years, while Nancy Star Onega, 27, and Donna Sorise, 57, both of Hialeah, Fla., and Maria Rose Rodriguez, 35, of Alamo, will serve sentences of 60, 71 and 66 months, respectively. Craig Owens, 29, of Kileen, and Karla Sanchez, 26, of Houston, will be sentenced Nov. 25, 2013.
The final four charged in the case – Aaron Trevino, 37, of Lockhart, Christopher Karl Owens, 33, of Killeen, Christopher Smith, 28, of Chester, and Ledezma, 40, of Brownsville – were considered “inmates” in the overall scheme and were at one time or another in TDCJ custody during the conspiracy. Trevino pleaded guilty to the RICO count and received a total of 198 months in federal prison, while Smith entered a plea to money laundering and received time served, approximately 10 months of incarceration. Ledezma, who was found guilty by a Corpus Christi federal jury of conspiracy to possess with the intent to distribute methamphetamine, cocaine and marijuana, will serve a total of 360 months in federal prison for the three counts of conviction. Christopher Owens will be sentenced in January 2014.
There are still two fugitives in the case and warrants remain outstanding for their arrests.
The arrests came as a result of a joint effort between TDCJ-Office of Inspector General and federal authorities to attempt to break the “culture of corruption” that permeated the McConnell Unit Prison during a period between 2005 to the present. State and federal authorities worked together in a determined effort to disrupt and dismantle the violent criminal gangs who were profiting through the corruption of guards at the prison.
Correction officers assisted prisoners incarcerated in the TDCJ McConnell Unit Prison in Beeville by smuggling cellular telephones and drugs into the prison system. The drugs and phones were then sold inside the prison to other inmates. The phones were used by inmates to assist in their coordination of criminal activities outside the prison.
During Ledezma’s trial, the jury heard testimony that Ledezma acted as an intermediary between drug traffickers in south Texas and Mexico. He had connections to drug suppliers and, utilizing the illegally smuggled cell phones, coordinated with other prisoners to organize drug deals inside and outside the prison. Jurors heard that prisoners had made phone calls to Ledezma while in the McConnell Unit. In these calls, Ledezma agreed to help arrange for six pounds of methamphetamine to be purchased in Corpus Christi and distributed in Arkansas. The buyers of the methamphetamine were to pay more than $20,000 per pound of the drug.
The overall investigation was initiated in 2009 when several Aryan Circle Gang Members were apprehended attempting to transport stolen vehicles from Corpus Christi to Brownsville. The vehicles were destined to be smuggled across the border and sold to Mexico Cartel members. The operation was coordinated by inmates incarcerated at the McConnell Unit through the use of the illegal cell phones.
A subsequent investigation led to a December 2010 federal indictment charging 14 alleged members and associates of the Raza Unida Street and Prison Gang with committing violent acts to support racketeering (VICAR). These violent acts included home invasions, shootings and conspiracy to commit murder. During the course of the investigation, agents and officers seized approximately 13 pounds of crystal methamphetamine with an estimated street value of more than $300,000. Additionally, seven assault rifles, 14 pistols, five shotguns, five bullet proof vests and approximately 1,000 rounds of ammunition were seized from the gang. All were subsequently convicted, two of whom were sentenced to life imprisonment.
The overall case is the result of a four-year investigation conducted by the U.S. Attorney’s Office, Homeland Security Investigations, TDCJ-Office of Inspector General, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Corpus Christi Police Department Gang and Organized Crime Units, U.S. Postal Inspection Service and the Bee County District Attorney’s office.
The case is being prosecuted by Assistant U.S. Attorneys Mark Patterson and Michael Hess.
23 Year Old Man Arrested for Sex Trafficking of Local TeenagersRead the Press Release
SAN JOSE - A federal grand jury in San Jose returned an Indictment on October 16, 2013, charging Jamal Raphael Broussard with sex trafficking of children, transportation of minors for prostitution, and coercion and enticement of minors for prostitution, announced United States Attorney Melinda Haag.
According to the six-count Indictment, Broussard, 23, of Hercules, Calif., beginning in August 2010 and continuing at least through May 2013, is alleged to have recruited, enticed, or transported two minor females using force, fraud, or coercion to cause them to engage in commercial sex acts, knowing that they were younger than 18-years-old. Broussard benefited financially by these commercial sex acts. Further, Broussard is alleged to have arranged or induced the travel of these minor victims, sending them from California to multiple states across the country for the purpose of engaging in prostitution.
Broussard was arrested yesterday morning at his home in Hercules, and made his initial appearance in federal court in San Jose in front of The Honorable Nathanael Cousins, U.S. Magistrate Curt Judge. Broussard is currently in federal custody pending further hearings. Broussard’s next scheduled appearance is on November 5, 2013, at 1:30 p.m. for a detention hearing before The Honorable Howard R. Lloyd, U.S. Magistrate Court Judge.
The maximum statutory penalty for each count of sex trafficking of children, in violation of 18 U.S.C. §§ 1591(a) and 1594(a), is lifetime imprisonment, a mandatory minimum 15 years in prison, a fine of $250,000, and restitution. The maximum statutory penalty for each count of transportation of minors for prostitution, in violation of 18 U.S.C. § 2423(a) and (d), is 30 years imprisonment, a mandatory minimum 10 years imprisonment, a fine of $250,000, and restitution. The maximum statutory penalty for each count of coercion and enticement for prostitution, in violation of 18 U.S.C. § 2422(a) and (b), is lifetime imprisonment, mandatory minimum 10 years imprisonment, a fine of $250,000, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Amie Rooney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Nina Burney and Tracey Andersen. The prosecution is the result of a 10-month joint investigation by the Federal Bureau of Investigation and the San Jose Police Department Human Trafficking Task Force.
(Broussard indictment )
30 October 2013
Waterbury Man Sentenced to More Than Nine Years in Prison for Robbing Banks in Waterbury and New BritainRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSE RIVERA, 41, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 117 months of imprisonment, followed by four years of supervised release, for robbing banks in Waterbury and New Britain.
According to court documents and statements made in court, on February 1, 2013, RIVERA, Victor Ramos and others committed an armed robbery of the TD Bank located on Hartford Road in New Britain, stealing approximately $24,480. On February 21, 2013, RIVERA, Ramos and others committed an armed robbery of the TD Bank located on North Main Street in Waterbury, stealing approximately $5,319.
RIVERA carried a firearm during both robberies and, during the Waterbury robbery, physically assaulted a customer causing her injuries.
In addition, RIVERA and Ramos violently stole $100 from a small business in Waterbury on January 28, 2013.
RIVERA has been detained since his arrest on February 21, 2013. On August 7, 2013, he pleaded guilty to one count of bank robbery.
Ramos has been detained since his arrest on June 5, 2013. On August 19, 2013, he pleaded guilty to the same charge.
This matter has been investigated by the Federal Bureau of Investigation, the Waterbury Police Department and the New Britain Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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(203) 821-3722 [email protected]Utah Man Indicted on Federal Hate Crime and Gun Charges Related to Religious-Motivated Attack on SynogogueRead the Press Release
The Department of Justice announced today that a federal grand jury sitting in Salt Lake City returned a superseding indictment charging Macon Openshaw, 21, of Salt Lake City, on gun possession charges and a federal hate crime charge relating to a bias-motivated attack at a local synagogue.
The indictment alleges that between Jan. 1, 2012 and April 30, 2012, Openshaw intentionally defaced and damaged the Congregation Kol Ami synagogue in Salt Lake City by firing several rounds from a Walther .22 caliber handgun at the building, breaking windows and damaging the window frame of the building. Openshaw allegedly performed these actions because of the religious character of the synagogue. This charge carries a statutory maximum sentence of 20 years imprisonment.
The superseding indictment charges Openshaw with one count of using and carrying a firearm in relation to a crime of violence, possession of a firearm with a removed, obliterated or altered serial number and possession of a firearm while subject to a protective order. An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The matter is being investigated by the Salt Lake City Division of the FBI and is being prosecuted by Assistant U.S. Attorney Carlos Esqueda of the U.S. Attorney’s Office for the District of Utah, Central Division, and Trial Attorney Nicholas Durham of the U.S. Department of Justice’s Civil Rights Division.
US Government Intervenes in False Claims Lawsuit Against United States Investigations Services <br /> for Failing to Perform Required Quality Reviews of Background InvestigationsRead the Press Release
The government has intervened in a lawsuit filed under the False Claims Act against United States Investigations Services LLC (USIS) in the U.S. District Court for the Middle District of Alabama, the Department of Justice announced today. The lawsuit alleges that USIS, located in Falls Church, Va., failed to perform quality control reviews in connection with its background investigations for the U.S. Office of Personnel Management (OPM).
The lawsuit was filed by a former employee of USIS, Blake Percival, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties, known as relators, to sue on behalf of the government when they believe false claims for government funds have been submitted. The private party is entitled to receive a share of any funds recovered through the lawsuit. The False Claims Act also permits the government to investigate the allegations made in the relator’s complaint and to decide whether to intervene in the lawsuit, and to recover three times its damages plus civil penalties. The government is intervening now based on the results of its investigation of the relator’s allegations and has requested that the court give it until Jan. 22, 2014, to file its own complaint.“We will not tolerate shortcuts taken by companies that we have entrusted with vetting individuals to be given access to our country’s sensitive and secret information,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Justice Department will take action against those who charge the taxpayers for services they failed to provide, especially when their non-performance could place our country’s security at risk.”
Since 1996, USIS has contracted with OPM to perform background investigations on individuals seeking employment with various federal agencies. Executed in 2006, the contract at issue in the lawsuit required USIS to conduct the investigatory fieldwork on each prospective applicant. It also required that a trained USIS Reviewer perform a full review of each background investigation to ensure it conformed to OPM standards before sending the file back to OPM for processing.
According to the relator’s complaint, starting in 2008, USIS engaged in a practice known at USIS as “dumping.” Specifically, USIS used a proprietary computer software program to automatically release to OPM background investigations that had not gone through the full review process and thus were not complete. USIS allegedly would dump cases to meet revenue targets and maximize its profits. The lawsuit alleges that USIS concealed this practice from OPM and improperly billed OPM for background investigations it knew were not performed in accordance with the contract.
“Thorough, appropriate and accurate background checks are essential in the employment of government personnel,” said George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. “The increase in foreign and domestic terrorism places an increased responsibility on our government to ensure that unsuitable individuals are prohibited from government employment.”
“This is a clarion call for accountability,” said Patrick E. McFarland, Inspector General of OPM. “As recent events have shown, it is vital for the safety and security of Americans to have these background investigations performed in a thorough and accurate manner. We can accept no less. Those responsible for any malfeasance that compromises the integrity of the background investigations process must be held accountable.”
“OPM does not tolerate fraud or falsification,” said Elaine Kaplan, Acting Director of OPM. “We work hard to prevent and detect both through a variety of means including a robust integrity assurance program, multiple levels of review and workforce education and training. We also work hand in hand with our Inspector General and the Department of Justice when we discover fraud so that bad actors are held accountable to the fullest extent of the law.”
This matter was handled by the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Middle District of Alabama in conjunction with OPM’s Office of Inspector General and Federal Investigative Service.
The claims asserted against USIS are allegations only, and there has been no determination of liability.
U.S. Secret Service’s National Threat Assessment Center Provides Training to Law Enforcement, School Personnel and Campus Officials in BridgewaterRead the Press Release
BOSTON – The United States Attorney’s Office, Plymouth County District Attorney’s Office, U.S. Secret Service’s Boston office and Bridgewater State University today hosted researchers from the National Threat Assessment Center (NTAC) to provide law enforcement, school personnel and university officials with information on Managing Threatening Situations and Creating Safe School Climates. Over 200 attended the conference which was held at Bridgewater State University.
During the conference, participants were provided information on the foundations of threat assessment which is a behavior-based approach used by law enforcement and others to identify and assess those individuals who pose a risk of engaging in targeted violence. NTAC also highlighted its research related to school safety and the adaption of the threat assessment approach in both K-12 and higher education settings. They also discussed how privacy laws such as HIPAA and FERPA can impact the ability to identify students of concern, and provided participants with information on types of information that can be shared to assist with a threat assessment investigation.
“We are very grateful to the U.S. Secret Service’s NTAC for sharing their expertise on how to develop a comprehensive plan to prevent targeted violence,” said United States Attorney Carmen M. Ortiz. “It is our hope that the information provided today will provide law enforcement, schools and universities with additional tools on how to establish a culture that promotes and implements effective violence prevention and intervention strategies.”
District Attorney Timothy J. Cruz stated, “I am pleased that we were able to once again present this important information from the National Threat Assessment Center (NTAC) to our local schools and law enforcement personnel. The researchers from the NTAC did a tremendous job and it is our hope that today’s information will help guide schools and local law enforcement as they work to keep our schools safe from targeted violence."For more information on the National Threat Assessment Center and its research, please visit http://www.secretservice.gov/ntac.shtml
For information on the Department of Justice’s Defending Childhood Initiative, please visit http://www.justice.gov/defendingchildhood/ and http://www.futureswithoutviolence.org/section/our_work/child_wellbeing/defending_childhood_initiative
Two District Men Sentenced to Prison Terms for Robbing Man on D.C.-Maryland Border with 14-Year-Old AccomplicesPrince George’s County and Metropolitan Police Departments Investigated the CaseRead the Press Release
WASHINGTON – Amos Jones, 23, and Edwin Holmes, 20, both of Washington, D.C., have been sentenced to prison terms for robbing a man and contributing to the delinquency of two minors who joined in the attack, U.S. Attorney Ronald C. Machen Jr. announced.
Jones and Holmes were found guilty by a jury in August 2013 of charges of robbery and contributing to the delinquency of a minor. The verdicts followed a trial in the Superior Court of the District of Columbia. The Honorable Heidi M. Pasichow sentenced both defendants on Oct. 28, 2013. Judge Pasichow sentenced Jones to 52 months in prison. She sentenced Holmes to a total of 106 months in prison, but suspended all but 40 months provided that he successfully completes two years of supervised probation.
According to the government’s evidence, on Nov. 17, 2012, at about 2 a.m., Jones and Holmes, along with two 14-year-old boys, robbed a man who was walking from a Metro station in the area of Southern Avenue SE, along the border of the District of Columbia and Prince George’s County. After they confronted the victim, and the victim told them he had no money, the assailants forced the man to give up his watch and cell phone.
The victim called 911, and the Prince George’s County, Md. Police Department, which assists with patrols in the area, apprehended all four robbery suspects. Jones had been released just two days prior to the robbery after serving a sentence in a case involving a stolen car.
In announcing the sentence, U.S. Attorney Machen commended the efforts of those who investigated the case for the Metropolitan Police and the Prince George’s County Police Departments. He also acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Anthony Griffith, Richard Cheatham and Antoinette Sakamsa; Information Technology Specialists Anisha Bhatia and Kimberly Smith, and Victim/Witness Advocate James Brennan. Finally, he praised the work of Assistant U.S. Attorneys Tejpal Chawla and Demian S. Ahn, who investigated and prosecuted the case. 13-371
Two Defendants Found Guilty in Manhattan Federal Court in Connection with Murder-For-Hire ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Joseph Anarumo, Jr., Special-Agent-in-Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced that HECTOR RAYMOND PEÑA and JOSE PEÑA were found guilty yesterday of conspiracy to commit murder-for-hire, murder-for-hire, and the use of a firearm in connection with murder-for-hire. HECTOR RAYMOND PEÑA and JOSE PEÑA were convicted after a 10-day jury trial before U.S. District Judge Victor Marrero.
Manhattan U.S. Attorney Preet Bharara said: “Hector Raymond Peña and Jose Peña were cold-blooded contract killers who went to great lengths – even impersonating law enforcement – to commit their brutal murders. Yesterday’s swift convictions by the jury ensure that they will spend the rest of their lives behind bars paying for the lives they took.”
ATF Special Agent-in-Charge Joseph Anarumo, Jr. said: “The Solid Gold investigation exemplifies the power of inter-agency cooperation like no other. The case has endured the test of time and has closed homicides that have – up until this point – been open, cold cases. Now, after approximately 16 years, the resolve and determination of the investigators and prosecution team have finally given closure to the victims’ families. Justice has been done.”
NYPD Commissioner Raymond W. Kelly said: “Although New York City has vastly improved from the murderous days of the 1990s when these defendants committed their vicious acts, the NYPD never let up its investigation and secured the arrests that followed. Yesterday’s verdict represents unrelenting work by detectives with the support of U.S. Attorney Preet Bharara’s office, whose prosecutors also are to be commended for delivering justice.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
HECTOR RAYMOND PEÑA and others were hired by a drug organization to murder Pedro Medina in the spring of 1997. On May 9, 1997, HECTOR RAYMOND PEÑA and others carried out that murder contract by impersonating police officers, abducting Mr. Medina in front of his home, executing him by shooting him in the head twice, and dumping his body on the side of the Harlem River Drive in Manhattan, New York.
HECTOR RAYMOND PEÑA, JOSE PEÑA, and others were hired by a different drug organization to murder members of a robbery crew in the summer of 1997. On June 25, 1997, HECTOR RAYMOND PEÑA, JOSE PEÑA, and others carried out that murder contract by impersonating police officers, abducting Jose Suarez and Juan Carmona, executing them by shooting them in the head, and burning their bodies beyond recognition inside a vehicle they left on the side of the Henry Hudson Parkway in Manhattan, New York.
HECTOR RAYMOND PEÑA and JOSE PEÑA face mandatory minimum sentences of life in prison. They are scheduled to be sentenced by Judge Marrero on February 28, 2014, at 2:00 p.m.
Mr. Bharara praised the investigative work of the Bureau of Alcohol, Tobacco, Firearms & Explosives and the New York City Police Department.
This case is being prosecuted by the Office’s Violent Crimes Unit. Assistant United States Attorneys Laurie A. Korenbaum, Timothy D. Sini, and Micah W. J. Smith are in charge of the prosecution.
Thirteen Members of Pharmacy Burglary Ring Charged with Stealing and Distributing Millions of Dollars’ Worth of Prescription-Controlled Substances and Hundreds of Thousands of Dollars in CashRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Commissioner of the New York City Police Department (“NYPD”) announced today the unsealing of charges against 13 members of a burglary ring (the “Burglary Ring”) alleged to be responsible for more than 125 burglaries and attempted burglaries of pharmacies in Manhattan, the Bronx, Queens, and Brooklyn since 2010. BRYAN ALTAGARCIA, EDWIN ARAUJO, MARTIN AVALO, ALVARADO DOMINGUEZ, ALAN FELIZ, DAVID SANTIAGO, and CARLOS VALLEJO were arrested today in Manhattan and the Bronx, and are expected to be presented and arraigned in Manhattan federal court before U.S. Magistrate Judge Michael H. Dolinger later this afternoon. MIGUEL ARAUJO was arrested today in Boston, and is expected to be presented and arraigned later this afternoon in federal district court in the District of Massachusetts. GUILLLERMO ARAUJO, JOSE GONZALEZ, and ESFRAIN SILVA are already in custody in connection with pending cases. Two other defendants, CHRISTIAN LORA and ANDY MACCOW, remain at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, this group of defendants went to extreme lengths to break into pharmacies across New York City in order to feed their voracious appetite for cash and prescription drugs to peddle. This Office has zero tolerance for those who contribute to the growing prescription drug abuse epidemic, and thanks to our partners at the NYPD and FBI, this ring of alleged offenders has been apprehended and will be prosecuted.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged in the indictment, the defendants participated in a complex burglary scheme to steal controlled prescription drugs and money from numerous victim pharmacies. Allegedly using technology and physical surveillance to perpetuate their illegal activity, this band of thieves thought they could outsmart law enforcement. The defendants’ downfall was that they underestimated the dedication and commitment of the FBI’s Health Care Fraud Task Force and the NYPD. Using traditional investigative techniques and the defendants’ own technology against them, the FBI and its law enforcement partners put an end to their alleged criminal enterprise.”
NYPD Commissioner Raymond W. Kelly said: “Criminals who exploit drug addiction for profit will be pursued and prosecuted as any perpetrator of more immediately devastating offenses. That these individuals are alleged to have used luxury vehicles – from multiple Mercedes-Benzes to a Bentley – purchased from the proceeds of their narcotics sales illustrates the scope of their activity. I commend the detectives in the NYPD’s Major Case Squad and Financial Crimes Task Force, and their partners in U.S. Attorney Bharara’s office on their work in stopping this operation.”
According to the Indictment filed in Manhattan federal court and other information in the public record:
ALTAGARCIA, EDWIN ARAUJO, GUILLERMO ARAUJO, MIGUEL ARAUJO, AVALO, DOMINGUEZ, FELIZ, GONZALEZ, LORA, MACCOW, SANTIAGO, SILVA, and VALLEJO were members of a sophisticated Burglary Ring that stole controlled prescription drugs with a street value in the millions of dollars, and hundreds of thousands of dollars in cash.
The burglaries involved the entry and attempted entry into pharmacies through ceilings, walls, window bars, and doors. In some instances, the victimized pharmacies were in locations that provided cover for the defendants while they penetrated the exteriors of the pharmacies with crowbars, axes, and other tools. In others, the pharmacies were adjacent to commercial establishments that the defendants broke into and then used tools to enter the pharmacies through common walls.
The members of the Burglary Ring wore dark clothing, including hooded sweatshirts, masks, and gloves, and employed sophisticated planning and counter-surveillance techniques to avoid apprehension. They frequently circumvented or disabled burglar alarms and surveillance cameras. By communicating by cellphone with each other and with lookouts who were monitoring police scanners during the burglaries, they were able to escape the pharmacies with the stolen goods and cash before law enforcement was able to apprehend them.
The Indictment unsealed today is a result of a joint investigation by the FBI and NYPD that began in 2011 and continues. In addition to information provided by a cooperating witness who committed burglaries with various defendants, DNA evidence links AVALO, VALLEJO, and SILVA to three of the pharmacy burglaries, and cellphone data links various combinations of the defendants to more than 50 of the pharmacy burglaries. Through sophisticated analysis of cellphone information, law enforcement identified dozens of cellular telephones the burglars used during the burglaries. Extensive evidence demonstrates that the various defendants were the users of those cellphones during more than 50 of those burglaries. In addition, numerous photographs recovered from cellphones belonging to various defendants and searched pursuant to warrants depict the defendants holding large amounts of U.S. currency, wearing expensive jewelry, associating with one another, and possessing high-end luxury automobiles.
The Indictment seeks the forfeiture of several luxury cars used by the defendants to commit the burglaries and purchased with proceeds of narcotics trafficking, including a Bentley, which was captured on surveillance video being used by some of the defendants as a getaway vehicle during several recent pharmacy burglaries, and several Mercedes-Benz vehicles and a BMW.
In connection with the arrests today, the FBI and NYPD also executed search warrants on the residences of EDWIN ARAUJO on Wadsworth Avenue, AVALO on Saint Nicholas Avenue, DOMINGUEZ on West 188th Street, and VALLEJO on Audubon Avenue in New York, New York.
BRYAN ALTAGARCIA, 22, of the Bronx, New York; EDWIN ARAUJO, 30, of New York, New York; GUILLERMO ARAUJO, 24, of New York, New York; MIGUEL ARAUJO, 22, of the Bronx, New York; AVALO, 34, of New York, New York; DOMINGUEZ, 27, of New York, New York; FELIZ, 35, of New York, New York; JOSE GONZALEZ, 30, of New York, New York; CHRSTIAN LORA, 25, of New York, New York; ANDY MACCOW, 29, of New York, New York; DAVID SANTIAGO, 30 of New York, New York; SILVA, 20, of the Bronx, New York; and VALLEJO, 26, of New York, New York are each charged with one count of conspiracy to burglarize pharmacies of controlled substances, which carries a maximum sentence of 10 years in prison. SILVA faces an additional penalty of up to 10 years in prison for committing this offense while on bail in another federal case. All of the defendants except SILVA are also charged with conspiracy to distribute and possess with the intent to distribute controlled substances, which carries a maximum sentence of 20 years in prison. In addition, EDWIN ARAUJO, GONZALEZ, and MACCOW are charged with witness tampering in connection with the beating of a cooperating witness in a federal case against SILVA, which carries a maximum sentence of 30 years in prison.
The charges against each defendant and the corresponding maximum potential penalties are outlined in the chart attached to this press release.
Mr. Bharara praised the efforts of the FBI's Health Care Fraud Task Force and the Bronx Major Case Squad of the NYPD. The New York FBI Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force is composed of agents, officers, and investigators from the FBI, NYPD, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, New York State Attorney General’s Office, New York State Office of Medicaid Inspector General, New York State Health and Hospitals Inspector General, and the National Insurance Crime Bureau. Mr. Bharara also thanked the Boston Field Office of the FBI for its assistance in locating and arresting MIGUEL ARAUJO.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Jason A. Masimore and Russell Capone are in charge of the prosecution. Assistant U.S. Attorney Carolina Fornos of the Office’s Asset Forfeiture Unit is responsible for the forfeiture of assets.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Edwin Araujo et al. Indictment
Real Estate Developer Sentenced to 30 Months Imprisonment for Destination Ventures Fraud SchemeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; announced Roger Stephen Clary, age 61, of Little Rock was sentenced by United States District Judge J. Leon Holmes to 30 months in federal prison to be followed by two years of supervised release. Special conditions were imposed on his supervised release to include: cooperation with the collection of DNA; prohibition on the possession of any firearm, ammunition, destructive device or dangerous weapon; and disclosure of financial information to probation officer upon request. The special conditions also state he may not obtain any new lines of credit. Judge Holmes ordered Clary to pay $1,595,000 in restitution to the Banc of America Leasing Corporation (BALC).Clary was ordered to report to the Bureau of Prisons by Monday, March 10, 2014.
Clary was indicted July 7, 2010, and on February 7, 2013, pled guilty to mail fraud. Clary created a company called Destination Ventures which was to purchase, custom outfit and lease buses. Clary obtained a loan from BALC to fund the purchase and outfitting of the buses. The loan was approved and entered into on May 8, 2008. The following day, Clary requested that BALC distribute a portion of the loan proceeds to purchase and outfit the buses. However, on the same day, Clary directed the vendor who was to outfit the buses to redistribute the funds once the vendor received them. The vendor complied with the directives from Clary. Consequently, $1,595,000 of the loan proceeds were paid to companies in which Clary had a financial interest but which had no involvement in the purchase, custom outfitting, or leasing of the buses as intended by the loan agreement. The mail fraud count charges Clary with later falsely certifying to BALC that the buses had been custom outfitted.
This investigation was conducted by the Little Rock Field Office of the Federal Bureau of Investigation. Assistant United States Attorney Angela Jegley prosecuted this case for the United States.
Pollock Prisoner Sentenced for Drug PossessionRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that Roy Elbert Carlton, 43, of Temple, Texas, was sentenced by U.S. District Judge Dee D. Drell to 27 months in prison for possessing drugs in a prison. He was also ordered to pay a $2,000 fine.
Carlton was found guilty August 7, 2013, after a two-day trial. The jury deliberated for 20 minutes and returned a guilty verdict. Witness testimony and documents admitted at trial revealed that Carlton’s codefendant, Whitney C. Anderson and their children, visited him on February 20, 2010, at the U.S. Penitentiary in Pollock, La. During the visit, one of the children was sitting on Carlton’s lap. Carlton was seen taking something out of the child’s pocket and then swallowing it. At that point, the visit was terminated, and Carlton was taken to a cell for observation. Eventually, the item swallowed by Carlton was excreted. The matter appeared to be balloon fragments and other material that tested positive for the presence of marijuana. Testimony at trial revealed that Anderson had brought multiple balloons filled with marijuana to the facility to smuggle to Carlton.Anderson was sentenced Monday, October 28, 2013 to eight months in prison for providing contraband to a prisoner. She was also ordered to pay a $1,000 fine. She pleaded guilty July 15, 2013.
The FBI conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Polk County Man Indicted for Tax FraudRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Norman V. Charlton was indicted yesterday on tax fraud charges. The thirteen-count indictment charges Charlton with conspiracy to commit wire fraud, theft of government property and aggravated identity theft. He is also charged with four counts of wire fraud, four counts of theft of government property, and four counts of aggravated identity theft. Charlton faces a maximum penalty of 5 years in federal prison for the conspiracy charge, 20 years’ imprisonment for each wire fraud offense, 10 years’ imprisonment for each count of theft of government property, and 2 consecutive years for the aggravated identity theft offenses. The indictment also seeks forfeiture of nearly $15,000 in U.S. currency seized on March 21, 2012, and a forfeiture money judgment in the amount of the proceeds of the fraud, which is alleged to be at least $412,000. Charlton previously made his initial appearance in federal court on September 30, 2013, after being arrested and detained in federal custody on a federal complaint alleging theft of government property.
According to the indictment, beginning as early as August 2011 and continuing through at least June 4, 2012, Charlton and co-conspirators used stolen names and social security numbers to electronically file fraudulent tax returns and obtain tax refunds to which they were not entitled. A record of those filings was kept in a detailed ledger. The fraudulent refunds were deposited onto reloadable debit cards in others’ names and/or disbursed in U.S. Treasury checks and were mailed to addresses controlled or directed by Charlton and others. The indictment alleges that Charlton and his co-conspirators used and directed the fraudulent tax refunds to obtain cash and goods for their own benefit and the benefit of others.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Petersburg Man arraigned on distribution, receipt, and Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Petersburg man was arraigned today on a criminal complaint filed in the U.S. District Court in Juneau, Alaska, for the distribution, receipt, and possession of child pornography.
Tye Leif Petersen, 45, of Petersburg, Alaska, was arraigned today before U. S. Magistrate Judge Leslie C. Longenbaugh, in a three-count criminal complaint charging a count each of distribution, receipt, and possession of child pornography. Petersen was ordered detained pending trial.
Assistant U. S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides those convicted of distribution or receipt of child pornography, a mandatory minimum sentence of five years and a potential maximum sentence of 20 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum sentence of 10 years, however, the maximum sentence increases to 20 years and $250,000 fine, if the images depict children under the age of 12 years. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The charges against Petersen are the result of an investigation conducted by the Federal Bureau of Investigation in cooperation with the Petersburg Police Department. If the public has any further information, questions, or concerns about the activities of Petersen, please contact the Petersburg Police Department at (907) 772-3838.
A criminal complaint 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.
Owner of St. Anthony Hospital Agrees to Pay $475,000 to Settle Civil Claims of Improper Billing for Inpatient Services That Should Have Been OutpatientRead the Press Release
Oklahoma City, Oklahoma -- SSM Health Care of Oklahoma, Inc. ("SSM"), who owns and operates St. Anthony Hospital in Oklahoma City, Oklahoma, has agreed to pay $475,000 to the United States to settle civil claims relating to SSM’s billing Medicare for inpatient services that should have been billed as outpatient services, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The United States alleged that from February 1, 2007, through February 28, 2009, SSM billed Medicare for inpatient services that should have been billed as outpatient services which resulted in higher reimbursements to SSM. Specifically, it was alleged that individuals who presented at the emergency room, and patients who were scheduled for planned medical procedures, were admitted into the hospital and the services billed on an inpatient basis when they should have been billed on an outpatient basis. The United States alleged that potential liability existed for SSM under the False Claims Act (31 U.S.C.§§3729-3733), the Civil Monetary Penalties Law (42 U.S.C. §13201-72), the Program Fraud Civil remedies Act (31 U.S.C. §§3801-3812, and common law. In order to resolve these claims, SSM agreed to pay $475,000 to the government. In reaching this settlement, SSM did not admit liability, and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the United States Department of Health and Human Services Office of Inspector General and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Oklahoma City Psychiatrist to Serve 30 Months in Federal Prison and Pay $20,000 Fine for Health Care FraudRead the Press Release
Oklahoma City, Oklahoma –AMAR NATH BHANDARY, M.D., 53, from Edmond, Oklahoma, was sentenced to serve 30 months in prison by United States District Judge Joe Heaton for health care fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Following his release from prison, Judge Heaton ordered Dr. Bhandary to serve three years supervised release and pay a $20,000 fine.
Dr. Bhandary was licensed to practice medicine in Oklahoma and was engaged in the practice of psychiatry. In March of 2012, he was indicted by a federal grand jury in a 53-count indictment alleging illegal distribution of controlled substances. The indictment alleged that Dr. Bhandary dispensed various controlled drugs to eight separate individuals outside the course of professional practice and without a legitimate medical purpose in 2008 and 2009 and that his actions resulted in the death of five of those individuals from drug toxicity.
From April 15 - 24, 2013, a jury trial was held in Oklahoma City federal court. On April 24, the Court declared a mistrial after the jury was unable to reach a verdict.
On May 22, 2013, a one-count Superseding Information was filed alleging that from September 10, 2008, through October 8, 2008, Dr. Bhandary engaged in health care fraud by submitting false claims to Medicare for services that he had not provided. On May 28, 2013, Dr. Bhandary pled guilty to committing health care fraud.
At the sentencing hearing, Judge Heaton ordered that Dr. Bhandary serve 30 months in prison, serve three years of supervised release upon his release from prison, pay $20,000 fine, pay restitution to Medicare, and forfeit all interest in commercial property located at 7100 N. Classen Blvd., Suites 107, 111 and 115, in Oklahoma City.
These charges are the result of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Norman Police Department. The case was prosecuted by Assistant U.S. Attorney David P. Petermann and former Assistant U.S. Attorney Randy Sengel.
Ohio Man Who Participated in Crack Cocaine Conspiracy Sentenced to Nearly 11 Years in PrisonRead the Press Release
CHARLESTON, W.Va. – A 38-year-old Ohio man was sentenced to ten years and ten months in federal prison for his role in a crack cocaine distribution conspiracy, U.S. Attorney Booth Goodwin announced today. Renardo Darnell Owens, of Akron, Ohio, previously pleaded guilty in April to conspiracy to distribute crack cocaine.
On February 11, 2013, Renardo Owens sold crack cocaine to a police informant working in cooperation with the Metropolitan Drug Enforcement Network Team (MDENT) in exchange for $140. The next day, Renardo Owens sold $300 worth of crack cocaine to an informant. He also gave the informant $500 worth of crack cocaine and expected to be paid after the drugs were sold.
On February 13, 2013, Owens’ co-conspirator and brother, Retsyn Owens, arranged to meet the police informant at a predetermined location in Charleston. After arriving at the predetermined location, Retsyn Owens accepted $500 from the informant. The money that Retsyn Owens received from the informant on February 13, 2013 was payment for crack cocaine his brother had distributed two days earlier.
Retsyn Deshawn Owens, 42, also of Akron, Ohio previously pleaded guilty in April to conspiracy to distribute crack cocaine.
Retsyn Owens also provided the informant $500 worth of crack cocaine on February 13, 2013 and expected to be paid after the drugs were sold. On February 14, 2013, Renardo Owens accepted $500 from a police informant as payment for crack cocaine. Also, on February 14, 2013, Renardo Owens handed the informant $1,000 worth of crack cocaine and expected payment after the drugs were sold. On February 15, 2013, MDENT agents executed a search warrant at a Charleston residence and seized drug paraphernalia, cash, and three bags containing crack cocaine. During the execution of the search warrant, police also arrested Renardo Owens, who was inside the residence at the time.
Renardo Owens was previously convicted in October 1999 of possession of cocaine and trafficking cocaine in the Court of Common Pleas in Summit County, Ohio.
Retsyn Owens faces up to 20 years in prison when he is sentenced on November 13, 2013.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
Ohio Man Who Participated in Crack Cocaine Conspiracy Sentenced to Nearly 11 Years in PrisonRead the Press Release
CHARLESTON, W.Va. – A 38-year-old Ohio man was sentenced to ten years and ten months in federal prison for his role in a crack cocaine distribution conspiracy, U.S. Attorney Booth Goodwin announced today. Renardo Darnell Owens, of Akron, Ohio, previously pleaded guilty in April to conspiracy to distribute crack cocaine.
On February 11, 2013, Renardo Owens sold crack cocaine to a police informant working in cooperation with the Metropolitan Drug Enforcement Network Team (MDENT) in exchange for $140. The next day, Renardo Owens sold $300 worth of crack cocaine to an informant. He also gave the informant $500 worth of crack cocaine and expected to be paid after the drugs were sold.
On February 13, 2013, Owens’ co-conspirator and brother, Retsyn Owens, arranged to meet the police informant at a predetermined location in Charleston. After arriving at the predetermined location, Retsyn Owens accepted $500 from the informant. The money that Retsyn Owens received from the informant on February 13, 2013 was payment for crack cocaine his brother had distributed two days earlier.
Retsyn Deshawn Owens, 42, also of Akron, Ohio previously pleaded guilty in April to conspiracy to distribute crack cocaine.
Retsyn Owens also provided the informant $500 worth of crack cocaine on February 13, 2013 and expected to be paid after the drugs were sold. On February 14, 2013, Renardo Owens accepted $500 from a police informant as payment for crack cocaine. Also, on February 14, 2013, Renardo Owens handed the informant $1,000 worth of crack cocaine and expected payment after the drugs were sold. On February 15, 2013, MDENT agents executed a search warrant at a Charleston residence and seized drug paraphernalia, cash, and three bags containing crack cocaine. During the execution of the search warrant, police also arrested Renardo Owens, who was inside the residence at the time.
Renardo Owens was previously convicted in October 1999 of possession of cocaine and trafficking cocaine in the Court of Common Pleas in Summit County, Ohio.
Retsyn Owens faces up to 20 years in prison when he is sentenced on November 13, 2013.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
New Orleans Man, Christopher M. Schwab, Charged with Producing and Distributing Child PornographyRead the Press Release
CHRISTOPHER M. SCHWAB, age 24, a resident of New Orleans, Louisiana, was charged yesterday in a Bill of Information with multiple counts of production of materials involving the sexual exploitation of children, distribution of child pornography, and receipt of child pornography, announced U. S. Attorney Kenneth Allen Polite, Jr.
In August 2013, SCHWAB was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that SCHWAB was responsible for sending images depicting the sexual exploitation of children. SCHWAB has been in custody since his arrest.
Yesterday’s Bill of Information charges SCHWAB with four (4) counts of child pornography involving four different minor victims. In addition, SCHWAB was charged with one count of distributing child pornography and one count of receiving child pornography.
Production of child pornography carries a mandatory minimum sentence of fifteen (15) years and a maximum sentence of thirty (30) years. Distribution and receipt of child pornography carry a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years. If convicted, SCHWAB will have to register has a sex offender.
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by Homeland Security Investigations. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Strike Force Chief, Assistant U. S. Attorney Brian M. Klebba.
(Download Bill of Information )
Montgomery Woman Sentenced for Taking Nearly $200,000 in SSA Payments over 22 YearsRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that Mary Kilpatrick, 57, of Montgomery, La., was sentenced by U.S. District Judge Dee D. Drell, to three months in prison with three years of supervised release and was ordered to pay $192,918 in restitution for theft of government money. She was also ordered to complete 250 hours of community service. Kilpatrick pleaded guilty June 27, 2013.According to evidence presented at the guilty plea, for 22 years, Kilpatrick acted as if her deceased mother was alive and spent Social Security Administration payments meant for her mother. The payments, totaling approximately $192,918, were placed in a joint account previously held by Kilpatrick and her mother. After her mother’s death, Kilpatrick continued to withdraw the payments.
The Social Security Administration – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Montgomery County Pastor Sentenced to 170 Months in Prison for Mortgage Fraud SchemeRead the Press Release
PHILADELPHIA - Michael Wilkerson, 47, of Pottstown, PA, was sentenced yesterday to 170 months in prison and ordered to pay $1,353,111.93 in restitution for a mortgage fraud scheme. Wilkerson and his co-defendants defrauded JPMorgan Chase Bank, N.A. by fraudulently obtaining home loans valued at more than $6 million for properties located in Schwenksville and Glenmoore, Montgomery County, PA. Wilkerson was convicted at trial in February.
Wilkerson, a pastor at New Millennium Life Restoration Fellowship with locations in Phoenixville and Spring City, recruited one of his congregants and the congregant’s family and friends, to participate in a number of real estate transactions. If they had good credit and acted as “straw purchasers” - meaning they would sign loan documents as the purchaser of a house and attend the property settlement - Michael Wilkerson would pay them $15,000. Wilkerson paid another $5,000 if they referred other straw purchasers to him. Wilkerson recruited at least six individuals who agreed to be straw purchasers of homes. Wilkerson’s wife, Joyce, participated in the fraud scheme by explaining the transactions to the “straws,” paying the “straws,” and also pretending to be a co-purchaser of each of the homes at the time of settlement. Co-defendant Lee Garell, a real estate broker with Long & Foster Companies, prepared the sales paperwork for each of the homes that was sold to the “straws” and, along with Michael Wilkerson, dictated the fraudulent terms set out in the settlement sheets. Denise Haines, a mortgage broker with American Group Mortgage Corporation, submitted fraudulent loan applications in the transactions to Chase. The applications falsely represented the appraised value of the homes, the identification of the “straws,” the source of funds, the borrower’s income and assets, and their intent to take possession of the homes as their primary residence. Based on the representations made in the loan documents, Haines knew she could get Chase to approve the loans without verification of the information on the loan applications. Haines and Garrell are awaiting sentencing.
When the loans were funded at the time of settlement, Michael Wilkerson, Joyce Wilkerson, Lee Garell, and Denise Haines manipulated the documents prepared at settlement and, later, forwarded the settlement documents to Chase to make it appear to the bank that the “straws” brought considerable cash to the closings, when, in fact, all of the money involved at the settlement actually came from Chase. Michael and Joyce Wilkerson profited approximately $400,000 from each of the fraudulent sales. Lee Garell obtained commissions on the sales of the real estate and Denise Haines obtained commissions based on the amount of the million dollar loans obtained from Chase. After settlement on the homes, Michael Wilkerson took possession of all of the homes, rented two of them and lived in another. He paid the mortgages with the monies that he obtained at the settlements and rental income for approximately six months then told the “straw” purchasers that they had to pay the mortgages. This last act led to the loans falling into default and then foreclosure, resulting in a loss of approximately $3 million.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Anita Eve.
President Obama established the Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Meriden Man Sentenced to 30 Months in Federal Prison for Distributing Cocaine and OxycodoneRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ANDREW MELILLO, 28, of Meriden, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing cocaine and oxycodone.
MELILLO is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
The investigation revealed that MELILLO conspired with others to distribute cocaine and oxycodone.
MELILLO was arrested on May 22, 2012. On February 28, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine and oxycodone.
MELILLO, who has been released on bond since shortly after his arrest, was ordered to report to prison on December 27, 2013.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Memphis Sex Trafficker Anthony Grandberry Sentenced to 11 Years in PrisonRead the Press Release
Memphis, TN – Anthony Grandberry, 32, of Memphis, Tenn., was sentenced to 11 years in federal prison today by U.S. Senior District Judge Jon P. McCalla for conspiracy to engage in child sex trafficking, announced U. S. Attorney Edward L. Stanton III. Grandberry pled guilty to the charge on July 1, 2013.
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In addition to the prison sentence, Grandberry will be subjected to 10 years of supervision after release from prison and will have to register as a sex offender. There is no chance of parole in the federal prison system.
“Today’s sentencing sends a clear message that any effort to sexually exploit a child for profit will not be tolerated and will result in severe consequences,” said Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee. “Anthony Grandberry is going to spend over a decade in federal prison because he put a 14 year-old-girl to work as a prostitute and chose to prioritize commercial gain over the welfare of a minor.”
According to the indictment, Grandberry received the 14-year-old girl from his co-defendant Orreco Lyons, also known as “Pico the Pimp,” in December 2012 as partial payment for a debt Lyons owed Grandberry. Grandberry made the girl prostitute for several days before passing her along to another co-defendant, Keith Gibson, also known as “Greedy” and “Pee-Wee.”
Lyons, along with co-defendants Tamara Ramsey and Falisha Edwards, pled guilty to sex trafficking conspiracy charges and are pending sentencing. Co-defendant Vivian Briggs pled guilty to using a facility of interstate commerce to promote child prostitution and is also pending sentencing. Gibson is set for trial in January 2014 and faces up to life in prison on child sex trafficking and child sex trafficking conspiracy charges.
The case was investigated by the FBI and the Memphis Police Department. Assistant U.S. Attorney Jonathan Skrmetti prosecuted the case.
U.S. Attorney Edward L. Stanton III established the Civil Rights Unit in February 2011 to ensure that every individual in the Western District of Tennessee enjoys the rights and freedoms guaranteed by the Constitution of the United States. The Civil Rights Unit assigns dedicated prosecutors to pursue the full spectrum of federal civil rights crimes, including official misconduct, human trafficking, and hate crimes, as well as law enforcement public corruption cases. Since the formation of the Civil Rights Unit, the Western District of Tennessee has consistently ranked as one of the top U.S. Attorney=s Offices in the country for the prosecution of sex trafficking.Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney Christopher A. Crofts announced that on October 28, 2013, Kenneth Wayne Crawford, III, a twenty-two year enrolled Eastern Shoshone man was sentenced by Chief U.S. District Court Judge Nancy Freudenthal to 37 months imprisonment, to be followed by two years of supervised release and was ordered to pay $7,665.72 in restitution and a $100 special assessment. This sentence stems from Crawford’s conduct in May of 2013, when he became intoxicated and physically assaulted his girlfriend. This case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Magazine Article and Photos Lead to Conviction of Hunter for Wildlife ViolationsRead the Press Release
Oklahoma City, Oklahoma – Kyle McCormack, 26, from Oklahoma City, was sentenced to serve a year probation and pay $500 fine after being convicted of illegal transportation of wildlife in interstate commerce, a violation of the Lacey Act, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
In the July 2012 edition of the Buckmasters magazine, there was a two-page article credited to McCormack including “trophy” photographs of the racks of whitetail bucks. Following a tip to authorities, the Oklahoma Department of Wildlife Conservation and the Kansas Department of Wildlife, Parks and Tourism sought assistance from the U.S. Fish and Wildlife Service. The investigation uncovered that McCormack did not have valid hunting licenses in the locations identified in the article and that the wildlife was illegally killed in Washington and transported to Oklahoma.
McCormack was charged on October 22, 2013, with illegal transportation of an elk and black-tailed deer in interstate commerce. McCormack pled guilty to both counts and was sentenced to serve one year probation and ordered to pay a $500 fine. McCormack also agreed to pay $2,500 into the Lacey Act Reward Account.
This case is the result of an investigation by the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism and the Oklahoma Department of Wildlife Conservation. The case was prosecuted by Assistant U.S. Attorney Robert Don Gifford II.
The U.S. Fish and Wildlife Service requests that anyone having information relating to a wildlife law violation to call the “Operation Game Thief” hotline in their state. The Oklahoma number for “Operation Game Thief” is (800)522-8039 and accepts calls 24 hours a day, seven days a week. All calls are confidential and the reporting individual has the option of remaining anonymous. You can also visit the U.S. Fish and Wildlife Service website at www.fws.gov/southwest/law enforcement/stateagencies.html to find additional information.
MacKenzie Richard Keene Joiner and Austin Leo Timothy Hagman Sentenced in U.S. District CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Missoula, on October 30, 2013, before Chief U.S. District Judge Dana L. Christensen, MACKENZIE RICHARD KEENE JOINER, age 29, and AUSTIN LEO TIMOTHY HAGMAN, age 23, residents of Missoula, were each sentenced.
JOINER was sentenced to the following term:
- ison: 46 months
- ecial Assessment: $100
- pervised Release: 4 years
HAGMAN was sentenced to the following term:
- ison: 36 months
- ecial Assessment: $100
- pervised Release: 4 years
They were sentenced in connection with their guilty pleas to conspiracy to distribute cocaine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
Beginning in approximately the spring of 2011 and continuing through February of 2013, the defendants distributed cocaine throughout the Missoula area. A CI (CI#1) would have testified that each defendant received more than 500 grams of cocaine from him/her during this period for redistribution in Missoula. A second CI (CI#2) would have testified and confirmed this information.
Finally, a third CI (CI#3) would have testified to receiving narcotics from JOINER and would further have testified that s/he knew that JOINER and HAGMAN worked together and that they and PANIAN received their drugs from CI#1.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, he does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Lynn Man Convicted for Possession of FirearmsRead the Press Release
BOSTON – A Lynn man was convicted today for being a previously convicted felon in possession of firearms and ammunition.
Sean Meola, 41, pleaded guilty before U.S. District Judge Douglas P. Woodlock to being a previously convicted felon in possession of firearms and ammunition.
In January 2013, the federal agents and Methuen Police received information that Meola was looking to sell a large number of firearms. On January 14, 2013, Meola and another individual arrived at a prearranged location in Methuen. Once at the location, Meola sold to an agent three semi-automatic firearms, two 12-gauge shotguns, and 29 rounds of .44 caliber ammunition. The weapons were later seized by the federal agents. Meola, a previously convicted felon, was arrested following the issuance of a complaint in the United States District Court.
Sentencing is scheduled for January 2014. Meola faces up to 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Captain of the Methuen Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Louisiana Man Pleads Guilty to Threatening a Witness in a Federal Criminal Tax TrialRead the Press Release
The Justice Department announced today that Anthony Williams, a resident of Baton Rouge, La., pleaded guilty today to one count of threatening to retaliate against a witness in a federal criminal tax trial.
According to court documents, Williams threatened to cause bodily injury to a witness who testified in the federal trial of United States v. Angela Myers. In his plea agreement, Williams, who is Myers’ son, admitted to sending a threat via Instagram with the intent to retaliate against the witness for his testimony. In March 2013, Myers was convicted by a jury for her role in a stolen identity tax refund fraud scheme, and was subsequently sentenced to serve 11 years in federal prison.
Williams faces a potential maximum sentence of 20 years in federal prison and a $250,000 fine. As part of his plea agreement, Williams also agreed to a condition of release prohibiting him from initiating any contact whatsoever with the witness he threatened.
This case was investigated by Special Agents of the Internal Revenue Service (IRS)- Criminal Investigation and the Treasury Inspector General for Tax Administration. Trial Attorneys Justin Gelfand and Jason Poole of the Department’s Tax Division are prosecuting the case with the assistance of the U.S. Attorney’s Office for the Middle District of Louisiana.
Local Man Gets 20 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Charlie Hernandez, 36, of Corpus Christi, has been ordered to serve 240 months in federal prison following his conviction of sexual exploitation of a child, announced United States Attorney Kenneth Magidson. He pleaded guilty Aug. 1, 2013.
Today, U.S. District Judge Nelva Gonzalez Ramos handed Hernandez the 20-year-term to be immediately followed by 10 years of supervised release. The court heard from the victim’s mother who described the destruction that the defendant’s crimes have wrought upon her family. The mother explained how the her child wanted to be at the hearing to speak to the court but was too emotionally distraught to appear. She spoke of the negative effects on the emotional and financial well-being of herself, her victimized child and other members of her family. The mother explained that in addition to the psychological damage Hernandez has caused, she had also suffered a heart attack since learning of the crime, despite being in good health and only 34 years of age. The victim’s mother urged the court to hold Hernandez accountable for his crime and all of the pain it has caused. In determining an appropriate sentence, the court considered the lasting harm done to the victim as well as the need to protect the public from Hernandez in the future.
On May 10, 2013, an officer with the Corpus Christi Police Department (CCPD) responded to a sexual assault call, at which time he spoke to the victim, a juvenile female relative of Hernandez. She stated that he had been sexually abusing her for four years, which had progressed from peeping to rape.
Hernandez was arrested and admitted to the abuse as well as creating sexually explicit photographs of his victim with a cell phone. The cell phone was recovered during a search of his office, which led to the discovery of some of the sexually explicit images.
Hernandez has been in custody since his arrest on June 24, 2013, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, investigated by CCPD- Internet Crimes Against Children Task Force and the FBI and prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Judge Gives Houston Woman Three Years for Role in Rip-Off of Philadelphia Sheriff's OfficeRead the Press Release
PHILADELPHIA –Aarti Gupte, 31, of Houston, TX, was sentenced today to 36 months for her involvement in a scheme to defraud the Philadelphia Sheriff’s Office (“PSO”). Gupte was found guilty in June of conspiracy to commit wire fraud and wire fraud. The scheme stole funds from the PSO’s bank accounts. In addition to the prison term, U.S. District Court Judge Legrome D. Davis ordered $242,186.73 in restitution and three years of supervised release. Davis set a date of December 16, 2013 for Gupte to report to prison.
Sheriff’s Sales of real estate generate millions of dollars annually. The sales require the PSO to write checks to different entities with regard to the properties sold. Co-conspirator Richard Bell, who was charged separately and pleaded guilty, was a PSO employee in the Accounting Department who took advantage of loose controls and wrote checks drawn on the PSO’s bank accounts made payable to individuals and companies. Bell gave some of the checks to Robert Rogers, who has also pleaded guilty. Rogers recruited Aarti Gupte, who had two companies, to participate in the scheme. Bell wrote four checks, totaling $242,186.73, to The Processing Link and Yellow Rose Enterprises, LLC during the period from 2009 to 2010. Gupte deposited the checks into her company bank accounts, withdrew the proceeds and shared them with Rogers who shared with Bell. When approached by Federal Bureau of Investigation agents, the defendant admitted that she had participated in this scheme to defraud the PSO.
The case was investigated by the FBI, IRS-Criminal Investigation and the Office of Inspector General for the City of Philadelphia. It was prosecuted by Assistant U.S. Attorney Sarah Grieb.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on October 30, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
SAMUEL DAVIS EVERSON, III, a 47-year-old resident of Minot, North Dakota, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and (2) counts of distribution of methamphetamine. He is currently detained. If convicted of these charges, EVERSON faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release on each of the first two charges; and possible penalties of 20 years in prison, a $1,000,000 fine, and 3 years supervised release on each count of the last charge. Assistant U.S. Attorneys Joseph E. Thaggard and Brendan P. McCarthy are the prosecutors for the United States.
The defendant pled not guilty to the charges.
This investigation was a part of Project Safe Bakken, which is a cooperative effort between the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Bureau of Indian Affairs (BIA), the U.S. Border Patrol, the U.S. Marshal's Service, the Environmental Protection Agency Criminal Investigation Division (EPA-CID), the Department of Homeland Security (DHS), the Montana Division of Criminal Investigation (MDCI), the Montana Highway Patrol, the North Dakota Bureau of Criminal Investigation (BCI), the Billings Police Department, the Yellowstone County Sheriff's Office, and the Idaho State Police.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on October 29, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
GEORGE THEODORE SUTHERLAND, a 20-year-old resident of Box Elder, appeared on a charge of assault resulting in serious bodily injury. He is currently detained. If convicted of this charge, SUTHERLAND faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indian Corporation Pays Record Amount to Settle Allegations of Systemic Visa Fraud and Abuse of Immigration ProcessesRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – Infosys Corporation, an Indian company involved in consulting, technology, and outsourcing, has agreed to a civil settlement of allegations of systemic visa fraud and abuse of immigration processes by paying a record settlement amount and agreeing to enhanced corporate compliance measures, announced U.S. Attorney John M. Bales. The $34 million payment made by Infosys as a result of these allegations represents the largest payment ever levied in an immigration case.
Infosys is located in thirty countries including the United States, and in 17 cities in the United States, including a location in Plano, Texas. The Plano location is responsible for handling the immigration practices and procedures for the United States operations of Infosys. Infosys brings foreign nationals into the United States in order to perform work and fulfill contracts with its customers under two visa classification programs relevant to this matter, H-1B and B-1.
According to court documents, the government alleged instances of Infosys circumventing the requirements, limitations, and governmental oversight of the H-1B visa program by knowingly and unlawfully using B-1 visa holders to perform skilled labor in order to fill positions in the United States for employment that would otherwise be performed by United States citizens or require legitimate H-1B visa holders. The government also alleges that Infosys did so in order to increase profits, minimize costs of securing visas, increase flexibility of employee movement, obtain an unfair advantage over competitors, and avoid tax liabilities. Specific allegations include the following:
· Infosys used B-1 visa holders to perform jobs that involved skilled labor that were instead required to be performed by United States citizens or required legitimate H-1B visa holders.
· Infosys submitted “invitation letters” to U.S. Consular Officials that contained false statements regarding the true purpose of a B-1 visa holder’s travel in order to deceive U.S. Consular Officials and secure entry of the visa holder into the United States. These letters often stated that the purpose of travel was for “meetings” or “discussions” when the true purpose was to engage in activities not authorized under a B-1 visa.
· Infosys directed B-1 visa holders to deceive U.S. Consular Officials, including specific instructions to avoid certain terminology, to secure entry of the visa holder into the United States. Infosys created a “Do’s and Don’ts” memorandum that it provided to foreign nationals entering the United States on a B-1 visa that included the following directions: “Do not mention activities like implementation, design & testing, consulting, etc., which sound like work”; “Also do not use words like, work, activity, etc., in the invitation letter”; and “Please do not mention anything about contract rates.”
· Infosys told its foreign nationals to inform U.S. Consular Officials that their destination in the United States was the same as that provided in the Labor Condition Application, notwithstanding the fact that Infosys knew that the destinations had changed.
· Infosys wrote and revised contracts with clients in order to conceal the fact that Infosys was providing B-1 visa holders to perform jobs that involved skilled or unskilled labor that were otherwise required to be performed by United States citizens or required legitimate H-1B visa holders.
· Infosys concealed the fact that B-1 visa holders were performing jobs that involved skilled or unskilled labor that were otherwise required to be performed by United States citizens or required legitimate H-1B visa holders by billing clients for the use of off-shore resources when, in fact, work was being performed by B-1 visa holders in the United States.
· Infosys failed to maintain I-9 records for many of its foreign nationals in the United States in 2010 and 2011 as required by law, including a widespread failure to update and re-verify the employment authorization status of a large percentage of its foreign national employees.
The settlement agreement requires Infosys to make a payment to the United States of $34 million. The agreement was largely predicated on Infosys’s cooperation with the United States during the investigation and on compliance measures taken by Infosys in the areas of B-1 and H-1B visas and I-9 documentation, both prior to and during the course of the investigation. The settlement agreement requires additional auditing for I-9 forms; a reporting requirement for B-1 usage; an agreement to continue to use only detailed invitation letters, and the continued use of corporate disciplinary processes for employees that violate the immigration laws of the United States.
“We will not tolerate actions that mislead the United States and circumvent lawful immigration processes, whether undertaken by a single individual or one of the largest corporations in the world,” said U.S. Attorney Bales. “The H-1B and B-1 visa programs are designed and intended to protect the American worker; and we will vigorously enforce the requirements of those programs.”
David M. Marwell, Special Agent in Charge of Homeland Security Investigations in Dallas, concurred: “This settlement against Infosys is the largest immigration fine on record. The investigation indicated that Infosys manipulated the visa process and circumvented the requirements, limitations, and governmental oversight of the visa programs. The investigation also showed that more than 80 percent of Infosys’s I-9 forms for 2010 and 2011 contained substantive violations. Ultimately, these actions by Infosys cost American jobs and simultaneously financially hurt companies that sought to follow the laws of this nation. Companies that misuse the visa process can expect to be scrutinized and held accountable.”
The investigation and settlement also earned the praise of George M. Nutwell III, Special Agent-in-Charge of the Houston Field Office, Diplomatic Security Service, U.S. Department of State, who said that “the Infosys investigation illustrates the unique role that DSS plays in investigating complex visa fraud cases that reach far beyond U.S. borders. DSS collaborates with our law enforcement partners and is committed to investigating and bringing to justice those who violate the law.”
This case was investigated and the settlement negotiated by Assistant U.S. Attorneys Shamoil T. Shipchandler, Alan R. Jackson, and J. Kevin McClendon, and special agents and attorneys from the Department of State, Diplomatic Security Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Citizenship and Immigration Services.
Goldsby Man Sentenced to 210 Months in Prison for Child PornRead the Press Release
Oklahoma City, Oklahoma – Roger Preston Kuhn, 29, of Goldsby, was sentenced today to serve 210 months in federal prison for downloading and possessing child pornography by United States District Court Judge Stephen P. Friot, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, for many years Kuhn heavily consumed child pornography that he downloaded via the Internet. In sentencing Kuhn, the court also considered evidence that he had engaged in predatory behavior by having sexual contact with children.
Kuhn was indicted on May 21, 2013, and pled guilty on June 6, 2013. In addition to the term of imprisonment, the court sentenced Kuhn to an additional term of 10 years’ supervised release upon his release from prison. Kuhn will have to register as a sex offender.
This case was part of Project Safe Childhood, the flagship program in the Department of Justice’s National Strategy for Child Exploitation Prevention and Interdiction, and was the result of an investigation conducted by the Canadian County Sheriff’s Department, and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Brandon Hale.
Franklin County Man Sentenced to 6 Years in Prison for Drug OffenseRead the Press Release
JOHNSTOWN, Pa. - A resident of Waynesboro, Pa., has been sentenced in federal court to 72 months in prison and five years supervised release on his conviction of conspiracy to possess and distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Corey D. Harley, 39.
According to information presented to the court, from November 2011 to July 18, 2012, Harley conspired to possess and distribute 500 grams or more of cocaine.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pa. Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. for the investigation leading to the successful prosecution of Harley.
Former Veterans Affairs Psychiatrist Pleads Guilty to Medicare FraudRead the Press Release
BROOKLYN, NY – Earlier today, Dr. Mikhail L. Presman, a licensed psychiatrist employed by the Department of Veterans Affairs (VA), pleaded guilty to health care fraud in federal court in Brooklyn. For over seven years, Dr. Presman lied about providing home medical treatment to Medicare beneficiaries and falsely billed Medicare for more than $1.2 million through the submission of fraudulent claims. As part of the guilty plea, Dr. Presman agreed not to contest the forfeiture of his ill-gotten gains, amounting to over $1.2 million.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Special Agent-in-Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). The plea was accepted by United States District Judge I. Leo Glasser.
“Dr. Presman was hired and paid by the taxpayers to treat those who sacrifice so much for our country – our injured veterans. As alleged, by defrauding the Medicare program, he betrayed the trust placed in him and stole from the very taxpayers who paid his salary. Far from honoring their sacrifice, Dr. Presman used our veterans as a cover for deceit and fraud,” stated United States Attorney Lynch. “We will root out Medicare fraud in our community wherever we find it.” Ms. Lynch thanked the Department of Justice, Criminal Division, Fraud Section and HHS-OIG for their work on the investigation.
According to court documents, from January 1, 2006 through May 10, 2013, Dr. Presman submitted approximately $4 million in Medicare claims for home treatment of Medicare beneficiaries, notwithstanding his full-time, salaried position as a psychiatrist at the VA hospital in Brooklyn. Contrary to his false representations, Dr. Presman did not provide any treatment to a substantial number of the beneficiaries he claimed to have treated. For example, on a number of occasions, Dr. Presman submitted claims to Medicare for home medical visits at locations within New York City even though he was physically located in China at the time of these purported home visits. Additionally, Dr. Presman submitted claims to Medicare for 55 home medical visits to beneficiaries who were hospitalized on the date of the purported visits.
Dr. Presman is scheduled to be sentenced on February 13, 2014. At sentencing, he faces a maximum sentence of 10 years’ imprisonment, over $1.2 million in mandatory restitution, and a fine of up to $2.4 million.
The case was investigated by HHS-OIG, brought as part of the Medicare Fraud Strike Force, and supervised by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. The case is being prosecuted by Assistant United States Attorney Patricia E. Notopoulos and Department of Justice Trial Attorney Bryan D. Fields.
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.
The Defendant:
MIKHAIL L. PRESMAN, M.D.
Age: 56
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-576
Former Veterans Affairs Psychiatrist <br /> Pleads Guilty to Medicare FraudRead the Press Release
Dr. Mikhail L. Presman, a licensed psychiatrist employed by the Department of Veterans Affairs (VA), pleaded guilty today to health care fraud for falsely billing Medicare for home medical treatment to Medicare beneficiaries and agreed to forfeit more than $1.2 million in illegal profits.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta Lynch of the Eastern District of New York, 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.
According to court documents, from Jan. 1, 2006, through May 10, 2013, Presman submitted approximately $4 million in Medicare claims for home treatment of Medicare beneficiaries notwithstanding his full-time, salaried position as a psychiatrist at the VA hospital in Brooklyn. Contrary to his representations, Presman did not provide any treatment to a substantial number of the beneficiaries he claimed to have treated. For example, Presman submitted claims to Medicare for home medical visits at locations within New York City even though he was physically located in China at the time of these purported home visits. Additionally, Presman submitted claims to Medicare for 55 home medical visits to beneficiaries who were hospitalized on the date of the purported visits.
Presman is scheduled to be sentenced by U.S. District Judge I. Leo Glasser of the Eastern District of New York on Feb. 13, 2014, and faces a maximum sentence of 10 years in prison.
The case was investigated by the HHS-OIG, with assistance from the Department of Veterans Affairs Office of Inspector General, 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 Trial Attorney Bryan D. Fields of the Fraud Section and Assistant U.S. Attorney Patricia E. Notopoulos 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.Former Little Rock Police Department Officer Sentenced to 104 Months in Federal Prison on Federal Drug ChargeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI); and Stuart Thomas, Chief of the Little Rock Police Department, announced Mark Anthony Jones, age 46 of Little Rock was sentenced by United States District Judge James M. Moody to 104 months in federal prison to be followed by four years of supervised release. Jones was immediately taken into United States Marshal custody following the sentencing.
“As I said when Jones was arrested, we owe it to this community and, more importantly, to the upstanding individuals who wear the badge of the LRPD to hold those who break the law accountable for their actions,” stated Thyer. “This case was carefully investigated and the facts speak for themselves. Jones’ choice to sell his career for cash is disheartening. My hope is, this sentence will serve notice to all other law enforcement officers that disregard of the law will result in prosecution. No one is above the law. To those who valiantly serve with integrity, I applaud you and thank you for your service.”
“The sentence imposed today sends a strong message to anyone in law enforcement who would betray his or her oath to protect and serve the public," stated Acting FBI Special Agent in Charge Howard S. Marshall. "The vast majority of us who respect the badges we wear and who are committed to public service will band together to aggressively investigate these egregious, criminal activities. In many of these investigations, they start with a tip from a concerned citizen. We are grateful for those who come forward to report corruption to us and we continue to encourage people to do so.”
Chief Thomas added, “I hope the message is clear that allegations of corruption will be diligently investigated and prosecuted. The men and women of this Department who participated in this difficult and demanding investigation demonstrated professionalism, integrity, and confidentiality to the highest degree. This Department is appreciative our partnership with the United States Attorney’s Office and the Little Rock Office of the FBI which, without hesitation, provided the resources and expertise necessary to fully investigate this matter and ultimately bring it to a successful conclusion today.”
Jones was arrested May 24, 2013 and pled guilty June 28, 2013, to one count of attempting to aid and abet the possession with intent to distribute approximately 1,000 pounds of marijuana.
The facts in the Plea Agreement state that Jones had been a policeman with the Little Rock Police Department since 1988. Early in 2012, Jones traveled with a Confidential Informant (CI) to Los Angeles, California to meet the informant=s purported supplier of marijuana. During dinner, the supplier (who was actually an undercover FBI agent) and Jones engaged in recorded conversation about marijuana loads being brought into Little Rock. After returning from California, the CI contacted Jones regarding a truckload of 1,000 pounds of marijuana coming into Little Rock. Jones was asked to and agreed to provide security for this load. He recruited his brother, another LRPD officer to be the 2nd escort to protect against an arrest by other law enforcement.
On March 22, 2012, Jones and his brother provided the protection while driving marked patrol cars. The delivery was divided in two vans of a purported quantity of approximately 500 pounds of marijuana in each van. The FBI set-up surveillance of the activities including aerial surveillance. The facts state that during the time Jones and his brother provided the escort, they “overheard on their police radio a call for shots fired near their location. They were the officers closest to the shooting, but did not respond because they were following the vans.” Jones didn’t respond to the call until he had completed the escort of the vans – approximately one hour later.
Jones was audio and video recorded by the FBI later that day meeting with the CI who paid him $10,000 in cash for the escort - $5,000 for Jones and $5,000 for his brother.
On July 15, 2013, Jones’ brother, Randall Tremayne Robinson, was found guilty of Count 3 of the Superseding Indictment for distribution of marijuana in August of 2009. The jury hung on all other counts. A second Superseding Indictment was filed August 7, 2013. The trial has been set for March 17, 2014 before United States District Judge James L. Moody. An indictment contains only allegations. All defendants are presumed innocent unless and until proven guilty.
This investigation was conducted by the Little Rock Field Office of the Federal Bureau of Investigation in cooperation with, and with substantial support from, the Little Rock Police Department. Assistant United States Attorneys Pat Harris and Anne Gardner have prosecuted this case for the United States.
Former Hempstead Police Officer Convicted of Armed Robbery and Firearms ChargesRead the Press Release
Earlier today, a federal jury returned a guilty verdict against Brian Jones, a former Hempstead Village police officer, on charges of Hobbs Act robbery conspiracy and brandishing a firearm during the robbery conspiracy. The charges arose from an April 6, 2008 incident in which the defendant and two accomplices attempted to rob a cocaine dealer in Far Rockaway, New York. At the time of the attempted robbery, the defendant was employed as a police officer in Hempstead Village.
The verdict followed a two-week trial at the federal courthouse in Central Islip, New York. The defendant’s sentencing is scheduled for February 26, 2014, at which time he faces a maximum sentence of 20 years’ imprisonment for the robbery conspiracy and a mandatory consecutive sentence of seven years to life for the firearms charge, as well as a criminal fine.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Raymond W. Kelly, Commissioner, New York City Police Department (NYPD), and Joseph Anarumo, Jr., Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“We trust our hard-working and dedicated law enforcement officers to protect our community. In violation of his sworn duty, Brian Jones betrayed his badge and disgraced his profession in an attempt to enrich himself at the expense of innocent victims. Jones crossed the line and became that which he had sworn to guard against,” stated United States Attorney Lynch. “The people of this district will not tolerate law enforcement officers who abuse their authority and violate the law.” Ms. Lynch expressed her thanks to the ATF and the NYPD’s Internal Affairs Division, Police Impersonation Investigation Unit, which led the investigation.
The evidence at trial established that in early 2008, the defendant and two accomplices plotted to rob a cocaine dealer, who they believed kept large quantities of drugs and cash at his apartment in Far Rockaway, New York. Prior to the robbery, the defendant abused his authority as a Hempstead Village police officer to identify the victim’s home address by running a search in a law enforcement database. On April 6, 2008, the defendant and his accomplices carried out the attempted robbery at an apartment building in Far Rockaway, armed with guns, the defendant’s police badge, and handcuffs. After using a ruse to enter an apartment by pretending to sell chocolate to raise money for the defendant’s daughter’s school, the defendant and his accomplices handcuffed a woman and her husband, while the couple’s two young children watched in horror, and then ransacked the apartment. After finding no cocaine or money, the defendant and his accomplices realized they were in the wrong apartment. Undeterred, they entered a second apartment, occupied by another woman and her two young children. They attempted to handcuff that woman as well, but she was able to flee into a bedroom with her children and call 9-1-1. The defendant and his accomplices then fled.
The trial was held before United States District Judge Joseph F. Bianco. All three individuals involved in the attempted robbery have now been convicted of crimes relating to that robbery.
The government’s case is being prosecuted by Assistant United States Attorney Lara Treinis Gatz.
The Defendant
BRIAN JONES
Age: 41
Hempstead, New YorkE.D.N.Y. Docket No. 13-CR-207 (JFB)
Former Defense Department Employee Indicted on Charges in Alleged $2.5 Million Health Care Fraud-Veteran Is Accused of Submitting Fraudulent Claims for Medical Expenses-Read the Press Release
WASHINGTON – Jonathan M. Hargett, a former civilian employee of the Department of Defense, was indicted today by a federal grand jury on charges alleging that he collected more than $2.2 million after submitting fraudulent claims for federal health care benefits.
The indictment was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); Patrick E. McFarland, Inspector General for the Office of Personnel Management (OPM); John Brooks, Special Agent-in-Charge of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Central Field Office of Investigations, and Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.
Hargett, 41, now in Germany, faces charges in a 15-count indictment returned by a grand jury in the U.S. District Court in the District of Columbia, including: one count of health care fraud; four counts of making false statements relating to health care matters; four counts of wire fraud, and six counts of engaging in monetary transactions in property derived from illegal activity. The indictment also seeks the forfeiture of all illegal proceeds from the scheme.
According to the indictment, Hargett worked from 1996 through 2012 in various positions as a civilian employee for the Department of Defense in Germany. Most recently, from January 2011 through May 2012, he was an intelligence analyst stationed in Heidelberg. Previously, he had served in the U.S. Army from 1992 to 1996.
As a federal employee stationed overseas, Hargett was enrolled since 2002 in the Foreign Service Benefit Plan (FSBP) a health care benefit program. Because of his service in the Army, he also was eligible for health care coverage from the U.S. Department of Veterans Affairs. For veterans working or residing abroad, the VA provides this coverage through its Foreign Medical Program (VA-FMP).
From January 2007 through April 2012, the indictment alleges, Hargett carried out a scheme to submit fraudulent claims and invoices to the FSBP and the VA-FMP. The claims falsely represented that he bought prescription medications and other pharmaceutical items from a pharmacy in Germany. They also falsely represented that he had received and paid for various health care items and services from a doctor in Germany. Hargett also submitted forged invoices and other fraudulent paperwork, the indictment alleges.
All told, the indictment alleges, Hargett submitted more than $2.5 million in false claims to the two programs. He was paid more than $2.2 million, the indictment alleges, including about $943,519 from the FSBP and $1,261,512 from the VA-FMP.
“This indictment charges a former Defense Department employee with ripping off the American taxpayer to the tune of $2.5 million through fraudulent medical claims,” said U.S. Attorney Machen. “This alleged fraud is particularly galling because it robbed precious resources from a program intended to serve our wounded veterans. Protecting the integrity of federal health care programs is an essential part of making affordable health care available to the vulnerable citizens who need it most.”
“Today's indictment reminds federal employees that they must meet the highest standards of ethical and professional behavior in all their dealings with the government, not just their dealings in the workplace,” said Inspector General McFarland. “Defrauding the Federal Employees Health Benefits Program, the program that provides insurance benefits for federal employees, is simply unacceptable.”
“Special Agents assigned to VA’s Office of Inspector General are committed to aggressively investigating fraud against the Department of Veterans Affairs and the taxpayers of this nation,” said Special Agent-in-Charge Brooks “Addressing major fraud within the VA's Foreign Medical Program has become a high priority. The dollars stolen from VA in this scheme could have benefitted many veterans with service-connected conditions needing medical treatment while residing or traveling abroad.”
If convicted of the various offenses, Hargett faces a statutory maximum of 10 years in prison on the health care fraud charge, five years of incarceration for each of the false statements charges, 20 years on each of the wire fraud counts, and 10 years on each of the charges involving the monetary transactions. He also faces financial penalties.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Defense Criminal Investigative Service, the Office of the Inspector General for the Office of Personnel Management, the Office of the Inspector General for the Department of Veterans Affairs, and the U.S. Army Criminal Investigation Command. Assistance was provided by the Office of International Affairs in the Justice Department’s Criminal Division, the Department of Defense, former Assistant U.S. Attorney Courtney G. Saleski, and Paralegal Specialists Nicole Wattelet and Donna Galindo. The case is being prosecuted by Assistant U.S. Attorney Ted Radway, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Assistant U.S. Attorney Diane Lucas, of the office’s Asset Forfeiture and Money Laundering Section.
13-372Former City of Cleveland Employee Sentenced to Prison for ExtortionRead the Press Release
A former City of Cleveland employee was sentenced to six months in prison followed by six months of house arrest for attempting to extort bribes from three companies in connection with his employment as a contract compliance officer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Lejon C. Woods, age 29, of Cleveland, previously pleaded guilty to three counts of extortion under color of official right.
“Today’s sentence sends a message that there will be continuing consequences for those who seek use their public job as a way to enrich themselves,” Dettelbach said.
“Public corruption at any level is a breach of the public’s trust," Anthony said. "The FBI thanks the City of Cleveland, Division of Police - Intelligence Unit and the three area businesses that were solicited by Woods for their cooperation in bringing this matter to justice”
Woods, while acting in his capacity as a contract compliance officer with the City of Cleveland, solicited bribes from representatives of three local businesses, one of which was a nonprofit business, in connection with fines which were going to be imposed for non-compliance of contract requirements, according to court records.
The conduct took place from May 18, 2010, through August 5, 2010, according to the indictment.
When City of Cleveland funds are used to pay for any part of a construction or rehabilitation project, the company involved in the project is subject to City of Cleveland, Office of Contract Compliance regulations relating to the hiring of certain percentages of minority business enterprises, disadvantaged business enterprises and city resident workers, according to the indictment.
Woods told representatives of the three companies that in exchange for a cash payment, he would alter records with the City of Cleveland to reflect compliance. Woods obtained or attempted to obtain cash payments of $2,800, $3,000 and $1,200 from the respective companies, according to the indictment.
The indictment is a result of an investigation conducted by the Federal Bureau of Investigation with assistance from the Cleveland Division of Police, Intelligence Unit. This case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.
Federal Prison Sentences Handed Down in Crystal Methamphetamine Trafficking ConspiracyRead the Press Release
In San Antonio this morning, U.S. District Judge David A. Ezra sentenced Israel Hernandez, Jr., of Rio Bravo, TX, to 300 months in federal prison for his role in a crystal methamphetamine trafficking conspiracy plus an additional 30 months in federal prison for violating his supervised release announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Javier Pena.
On June 3, 2013, Hernandez pleaded guilty to one count of conspiracy to distribute a controlled substance. By pleading guilty, Hernandez, a self-purported drug transportation coordinator, admitted that between March and September in 2012, he conspired with San Antonio residents Carlos Ruiz and Andrew Kessler, II, to transport crystal methamphetamine from Brownsville to Laredo. On September 14, 2012, DEA Task Force agents seized approximately 15 pounds of 99.9% pure crystal methamphetamine inside Kessler’s vehicle while in Mission, TX. According to court records, Ruiz offered to pay Kessler $1,200 for transporting the six kilograms of crystal methamphetamine to Laredo. The next day, federal agents in San Antonio arrested Hernandez and Ruiz as they were attempting to locate Kessler and the missing crystal methamphetamine.
On Monday, Judge Ezra sentenced Carlos Ruiz to 15 years in federal prison for his role in the conspiracy. On August 8, 2013, Andrew Kessler was sentenced to seven years in federal prison for his role in the conspiracy.
The case was investigated by the Drug Enforcement Administration Task Force made up of investigators from the New Braunfels Police Department, San Antonio Police Department, Boerne Police Department, Balcones Heights Police Department, Comal County Sheriff’s Office, Guadalupe County Sheriff’s Office, Kendall County Sheriff’s Office and the Texas Department of Criminal Justice.Federal Grand Jury Returns Indictment Charging Salt Lake City Man with Bias-Motivated Attack on SynagogueRead the Press Release
Charges Allege He Fired Several Rounds from a Handgun at the SynagogueSALT LAKE CITY – A federal grand jury in Salt Lake City returned a four-count indictment Wednesday afternoon charging Macon Michael Openshaw, age 21, of Salt Lake City, with firearm charges and a civil rights violation relating to a bias-motivated attack at a local synagogue.
The indictment was announced by the U.S. Department of Justice, U.S. Attorney for Utah David B. Barlow, and Mary Rook, Special Agent in Charge of the FBI in Salt Lake City.
The indictment alleges that between Jan. 1, 2012 and April 30, 2012, Openshaw intentionally defaced and damaged the Congregation Kol Ami synagogue in Salt Lake City by firing several rounds from a Walther .22 caliber handgun at the building, breaking windows and damaging the window frame of the building. Openshaw allegedly performed these actions because of the religious character of the synagogue. This charge carries a statutory maximum sentence of 20 years imprisonment.
The superseding indictment charges Openshaw with one count of using and carrying a firearm in relation to a crime of violence (potential 10-year mandatory minimum sentence), possession of a firearm with a removed, obliterated or altered serial number (up to five years) and possession of a firearm while subject to a protective order (up to 10 years.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless proven guilty.
The matter is being investigated by the Salt Lake City Division of the FBI and is being prosecuted by Assistant U.S. Attorney Carlos Esqueda of the U.S. Attorney’s Office for the District of Utah and Trial Attorney Nicholas Durham of the U.S. Department of Justice’s Civil Rights Division.
(Follow the U.S. Attorney’s Office on Twitter @DUTnews)Federal Grand Jury Indicts Lee County Man for Five North Alabama RobberiesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Lee County man for a string of bank robberies in North Alabama in January, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A five-count indictment filed in U.S. District Court charges JIMMY DAWSON CUNNINGHAM JR., 38, of Salem, Ala., with five bank robberies between Jan. 3 and Jan. 14. He is charged with the following robberies: National Bank of Commerce, Shades Creek Parkway, Birmingham, Jan. 3; PNC Bank, Euclid Avenue, Mountain Brook, Jan. 8; First Community Bank, Marktplatz Center, Cullman, Jan. 10; Regions Bank, Culver Road, Mountain Brook, Jan. 10; and Union State Bank, Pelham Parkway, Pelham, Jan. 14.
Cunningham could face a maximum penalty of 20 years in prison and a $250,000 fine for each count.
The FBI, in conjunction with the Jefferson County Sheriff's Office and the Mountain Brook, Cullman and Pelham police departments, investigated the case. Assistant U.S. Attorney Joseph P. Montminy is prosecuting the case.
The public is reminded that an indictment contains only charges. It will be the government's responsibility to prove the defendant's guilt at trial.
Federal Grand Jury Indicts Lee County Man for Five North Alabama RobberiesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Lee County man for a string of bank robberies in North Alabama in January, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A five-count indictment filed in U.S. District Court charges JIMMY DAWSON CUNNINGHAM JR., 38, of Salem, Ala., with five bank robberies between Jan. 3 and Jan. 14. He is charged with the following robberies: National Bank of Commerce, Shades Creek Parkway, Birmingham, Jan. 3; PNC Bank, Euclid Avenue, Mountain Brook, Jan. 8; First Community Bank, Marktplatz Center, Cullman, Jan. 10; Regions Bank, Culver Road, Mountain Brook, Jan. 10; and Union State Bank, Pelham Parkway, Pelham, Jan. 14.
Cunningham could face a maximum penalty of 20 years in prison and a $250,000 fine for each count.
The FBI, in conjunction with the Jefferson County Sheriff's Office and the Mountain Brook, Cullman and Pelham police departments, investigated the case. Assistant U.S. Attorney Joseph P. Montminy is prosecuting the case.
The public is reminded that an indictment contains only charges. It will be the government's responsibility to prove the defendant's guilt at trial.
Federal Charges Brought Against 11th Person in Scheme to Defraud BP Oil Spill Claims FundRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Birmingham woman as part of a conspiracy to fraudulently take money from funds established to pay claims from individuals and businesses harmed by the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The indictment of FELICIA YOUNGBLOOD, 25, brings to 11 the number of people in North Alabama to face federal charges for conspiring to participate in a scheme to defraud the oil spill claims funds. Youngblood is the second person indicted by a federal grand jury. The U.S. Attorney's Office has charged nine others this year and those nine have pleaded guilty to taking part in the conspiracy.
British Petroleum, which owned the Macondo oil well where the Deepwater Horizon drilling rig exploded, established the Gulf Coast Claims Facility in June 2010 for the purpose of administering and settling claims resulting from the oil spill disaster. A subsidiary of BP established the Deepwater Horizon Oil Spill Trust Fund in August 2010 to pay certain types of claims and expenses from the oil spill, including claims settled through the GCCF.
The four-count indictment of Youngblood charges her with the conspiracy to submit false claims to the GCCF in the summer of 2011 that resulted in her receiving payments of $39,293 and $28,332. The indictment also charges Youngblood with mail fraud, prohibited monetary transactions and wire fraud.According to the indictment, Youngblood carried out the fraud as follows:
Youngblood provided personal information to co-conspirators that was used to prepare and submit false claims of lost earnings to the GCCF. The false claims caused the GCCF to mail a $39,293 check to Youngblood and to wire a separate payment of $28,332 to Youngbloods' bank account. At the direction of co-conspirators, Youngblood used the $39,293 check on July 25, 2011, to obtain two cashier's checks of $17,146 each and $5,000 cash . She endorsed the cashier's checks and gave them to a co-conspirator. On Aug. 4, 2011, Youngblood, at the direction of a co-conspirator, withdrew $10,000 of the $28,332 that had been electronically deposited into her account and gave the money to the co-conspirator.
The FBI is investigating these cases. Assistant U.S. Attorney Henry Cornelius is prosecuting the cases.
The public is reminded than an indictment contains only charges. It will be the government's responsibility to prove the defendant's guilt at trial.