Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
29 October 2013
Informational: Federal Court Initial AppearancesRead 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 individuals were 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, he 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.
HAILEY LEE BELCOURT, age 35, and TONY JAMES BELCOURT, age 41, residents of Box Elder, and SHAD JAMES HUSTON, a 37-year-old resident of Havre, appeared on charges of conspiracy to embezzle/convert federal money, theft involving a federally funded program, and accepting bribes. They are currently released on special conditions. If convicted of these charges, they each face possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on multiple counts of the above charges. Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States. The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
K & N CONSULTING, LLC and TMP SERVICES, LLC, of Havre, appeared on charges of conspiracy to embezzle/convert federal money, theft involving a federally funded program, and giving bribes. If convicted of these charges, they each face possible penalties of a $500,000 fine on each charge. Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States. The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
TONY JAMES BELCOURT, age 41, and HUNTER BURNS, age 48, residents of Box Elder, and JAMES HOWARD EASTLICK, JR., a resident of Havre, appeared on charges of false claims conspiracy, false claim against a federally funded project, and theft from an Indian tribal organization receiving federal funds. They are currently released on special conditions. If convicted of these charges, they each face possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on multiple counts of the above charges. Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States. The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
HUNTER BURNS CONSTRUCTION, LLC, of Havre, appeared on charges of false claims conspiracy, false claim against a federally funded project, and theft from an Indian tribal organization receiving federal funds. If convicted of these charges, the company faces possible penalties of a $500,000 fine on each charge. Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States. The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
The defendants pled not guilty to the charges.
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.
Indictments Charged Diversion of Hundered of Thousands of Oxycodone TablesRead the Press Release
Doctor’s Receptionist Is Alleged Key Player in Pill Scheme
The Eastern District of Pennsylvania, like the rest of the nation, has been greatly impacted by the prescription drug abuse epidemic. Local clinics have stated that drug addiction in both Philadelphia and New Jersey is extremely severe. Heroin and opiate-based prescription medication – such as oxycodone – are two of the most abused drugs in this area. And just like street drugs, prescription drug abuse produces the same problems: addiction, crime, and broken families.
Today, federal agents arrested 27 people involved in a prescription drug conspiracy that illegally distributed more than 380,000 Oxycodone pills into communities in the Eastern District of Pennsylvania. Two indictments, charging four key players, and multiple other charging documents were unsealed today. Charged in one indictment are Leon Little, 33, of Cherry Hill, NJ, the leader of the “Little Drug Operation” (LDO), Heather Herzstein, 28, of Folcroft, PA, who worked in a doctor’s office, and Colise Harmon, 34, of Philadelphia. They are charged with conspiracy to distribute controlled substances. A separate but related indictment charges
Aminah Shabazz, 36, of Cherry Hill, NJ, with money laundering. Based on the average retail sale price of the oxycodone tablets on the street, the LDO allegedly took in more than 3 million dollars.
The charges were announced by First Assistant United States Attorney Louis Lappen, Drug Enforcement Administration Special Agent-in-Charge David G. Dongilli, and IRS
Criminal Investigation Special Agent-in-Charge Akeia Conner. The announcement was made at a press conference that also included the FBI and Health and Human Services Office of Inspector
General and discussed the larger issue of drug diversion.
According to the indictment, between August 2010 and August 2012, the LDO recruited and paid individuals to pose as patients in order to acquire prescription drugs, such as oxycodone and alprazolam (otherwise known as Xanax), from L.B., a licensed physician in Philadelphia.
Many of these “pseudo-patients” were recruited from the Raymond Rosen Projects, a government-assisted housing development located in north Philadelphia. Little orchestrated the entire scheme by allegedly paying Herzstein and Harmon to facilitate the coordination of pseudo-patients. He also allegedly collected and stored the filled prescriptions, packaged the drugs for re-distribution, and distributed to them to his customers in Philadelphia.
Hertzstein, as the receptionist and sole employee for L.B., allegedly scheduled the pseudo-patients’ appointments, wrote prescriptions for oxycodone using the doctor’s prescription pad and without the doctor’s consent, and distributed the forged prescriptions to the LDO. She also allegedly falsely verified with pharmacies that the forged prescriptions received from LDO pseudo-patients were legitimate. The pseudo-patients primarily received prescriptions for 10 milligram and 30 milligram tablets of oxycodone in exchange for money. The LDO also paid for the doctor’s visit and the costs for filling the prescriptions.
Harmon allegedly drove pseudo patients to the doctor and to specific pharmacies in
Philadelphia, PA to have the prescriptions filled. The prescriptions were filled primarily at: Northeast Pharmacy, 6730 Bustleton Avenue; Pharmacy of America, 1500 E. Erie Avenue; and
Philly Pharmacy, 210 Market Street.
In addition to the conspiracy, Little, Herzstein and Harmon are charged with distribution of oxycodone, acquiring a controlled substance by fraud, and aiding and abetting.
According to the separate indictment, Aminah Shabazz took LDO drug proceeds and provided $26,970 in cash to a third party who deposited the cash into the third party’s bank account in Ridley, PA. The third party then received a certified check made out to Lemin
Consulting, LLC, a business operated by Shabazz and Little, for $27,000. Shabazz then allegedly deposited the certified check into the bank account for Lemin Consulting, LLC in
Philadelphia, PA in an attempt to conceal the proceeds of unlawful activity.
If convicted of all charges, the defendants face the following possible prison terms under advisory sentencing guideline ranges: Little, life; Harmon, life; Herzstein, life; Shabazz, 33 months to 41 months. The defendants also face possible fines and terms of supervised release.
The indictment is also seeking forfeiture.
The case was investigated by the Drug Enforcement Administration, Internal
Revenue Service Criminal Investigation Division, Federal Bureau of Investigation Health
Care Fraud Task Force, Philadelphia Police Department, and North Coventry Police
Department, and is being prosecuted by Assistant United States Attorney Tomika N.
Stevens.
“Prescription drug abuse has become an epidemic in our society, and with the increased demand for these drugs has come the criminal activity that naturally follows – including illegal drug distribution and violence,” said First Assistant United States
Attorney Louis Lappen. “The individuals charged today with drug trafficking face lengthy prison terms like those imposed on distributors of street level drugs such as heroin and cocaine. We will continue to work with our law enforcement partners to bring illegal drug traffickers to justice and stem the tide of prescription drug abuse in our communities.”
“The defendants charged today are drug dealers just like street dealers pushing heroin and cocaine,” said DEA Special Agent-in-Charge Dongilli. “Each is driven by greed and intent on making as much money as possible at any expense and with a total disregard of others. The Drug Enforcement Administration (DEA) will continue to aggressively investigate anyone engaged in obtaining or selling prescription controlled substances outside of a legitimate doctor-patient or pharmacist relationship. There is a dangerous misunderstanding about prescription drugs. In Pennsylvania more people die from prescription drug overdoses than heroin or cocaine.”
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said IRS Special Agent-in-
Charge Conner. “Without these ill-gotten gains, the traffickers could not finance their organizations. The role of IRS Criminal Investigation in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
“Drug diversion is a costly problem in this country – in both dollars, and lives,” said FBI Special Agent in Charge Edward J. Hanko. “The FBI is fully committed to investigating this fast-growing category of health care fraud.”
“Aside from the human casualties resulting from prescription drug diversion, the millions of dollars stolen from insurance programs is eroding trust in our health care system,” said Special Agent-in-Charge DiGiulio. “Our agents, working with federal and local law enforcement, are finding a huge wave of illegal billing, identity theft, fraud in the Medicare drug program, Medicaid, and other federal health insurance programs.”
Prescription drug abuse, despite popular misconceptions, has become more wide-spread, more destructive, and more dangerous than even street-level drug abuse. Nearly seven million
Americans are hooked on prescription drugs, more than are addicted to cocaine, heroin, hallucinogens, ecstasy, and inhalants combined. The web of prescription drug abuse entangles the poor and the rich, the old and the young, and does not discriminate based on race. Abuse of prescription narcotics has reached epidemic proportions in this country. According to the
Centers for Disease Control and Prevention (CDC), prescription drug abuse is the fastest growing drug problem in the United States, with the number of prescription drug overdoses tripling over the last 20 years.
A 2011 report by the CDC indicated that nearly 15,000 people die every year of overdoses involving prescription painkillers, and 1 in 20 people reported using prescription drugs for non-medical reasons during the prior year. Drug overdose, including overdose of prescription drugs, is now the leading cause of accidental death in the United States, recently surpassing automobile accidents. Nearly three out of four drug overdoses are caused by prescription painkillers, which include oxycodone. For every overdose death caused by prescription painkillers, there are 32 emergency room visits due to the misuse or abuse of prescription drugs. In 2011, oxycodone products were the prescription painkiller most commonly involved in emergency room visits.
There are more overdose deaths caused by prescription drugs than by heroin and cocaine combined. Prescription narcotics are dealt hand-to-hand, just like baggies of heroin or vials of crack. According to the CDC, 76% of non-medical prescription drug users acquired drugs that had been prescribed to someone else.View: Defendant Chart.pdf | Little et. al., Indictment.pdf | Shabazz Indictment.pdf
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Illinois Man Arrested for Alleged Role in $12 Million Health Care Fraud SchemeRead the Press Release
A Rockford, Ill., man was arrested today in connection with an indictment charging three Chicago-area residents for their roles in an alleged $12 million health care fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zachary Fardon of the Northern District of Illinois, Acting Special Agent in Charge Robert J. Shields Jr. of the FBI’s Chicago Office, and Special Agent in Charge Lamont Pugh III of the Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
According to the 10-count indictment returned on Oct. 23, 2013, and unsealed today, Rick E. Brown, 56, and two other individuals allegedly participated in a Medicare fraud scheme operating out of a home visiting physician practice, Medicall Physicians Group Ltd., in Schaumburg, Ill., that billed for services that Medicall never provided. Medicare allegedly paid the company approximately $4.7 million for fraudulently reported services from January 2007 to December 2011.
Brown and an alleged co-conspirator, Roger A. Lucero, 62, of Elmhurst, Ill., are charged with conspiracy to commit health care fraud and health care fraud. The two men and another defendant, Mary C. Talaga, 53, of Elmwood Park, Ill., are also charged with making false statements relating to health care matters.
According to the indictment, Lucero and Brown owned and operated Medicall, and Talaga submitted the company’s bills to Medicare. The indictment alleges that Brown instructed employees to bill Medicare for patient oversight and other services that were never provided, and Lucero created backdated records in an effort to conceal the fraudulent billings. Talaga is alleged to have billed Medicare for these services even though she knew they had not been documented, a practice that required her to fabricate the information submitted to Medicare.
The charges of health care fraud conspiracy and health care fraud each carry a maximum potential penalty of 10 years in prison and a $250,000 fine. The charges of false statements relating to health care matters carry a maximum potential penalty of five years in prison and a $250,000 fine.An indictment is merely a charge and defendants are presumed innocent unless and until proven guilty.
The investigation is being conducted jointly by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of Illinois. The case is being prosecuted by Trial Attorney Brooke Harper of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Goodwin Announces Another Record Total in Prescription Drug Take-back EventRead the Press Release
U.S. Attorney’s Office and DEA announce nearly 2.5 tons collected, surpassing previous record amount from April
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin and U.S. Drug Enforcement Administration (DEA) Resident Agent in Charge Suzan Williamson jointly announced today that as a result of the October 26th Prescription Drug Take-Back event, a total of 4,976 pounds of unwanted, unused and expired prescription drugs were collected from citizens and households across West Virginia. The October 26th collection results surpassed the previous Take-Back record of 4,642 pounds of prescription drugs collected in April 2013.
U.S. Attorney Goodwin said, “Having back-to-back record totals in the same year is remarkable. West Virginians have yet again responded overwhelmingly in our ongoing fight against prescription drug abuse. We’ve worked hard over the past several years to make our Take-Back initiative a success. My thanks to the DEA, state and local police, and all the West Virginians who made this result possible.”
Suzan Williamson, DEA resident agent in charge for West Virginia, said, “When people take unwanted and expired prescriptions out of their homes and dispose of them properly, it immeasurably helps our fight against prescription drug abuse. I commend all of the federal, state and local partners in West Virginia for their assistance, which has made this seventh Take-Back a success.”
The October Take-Back designated more than 130 sites throughout West Virginia, providing citizens with numerous locations to drop off expired, unused and unwanted medications. Nationwide, more than 5,100 sites participated.
In the six previous Take-Back events, the Drug Enforcement Administration, working jointly with other federal, state, and local law enforcement partners have collected more than 2 million pounds (1,409 tons) of prescription medications nationwide.
Georgia Man Pleads Guilty in Federal Court to Receiving Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announced today that John Charles Stevenson (45, Rincon, Georgia) pleaded guilty to receiving videos and images depicting child pornography. Stevenson faces a mandatory minimum penalty of not less than 5 years and up to 20 years in federal prison and a potential life term of supervised release. Stevenson has been in custody since his arrest. A sentencing hearing has not yet been set.
According to court documents, a special agent with the Federal Bureau of Investigation conducted an investigation to identify individuals in Jacksonville who were trading images and videos depicting child pornography over the Internet. The agent determined that a computer using a particular IP address, in Jacksonville, was hosting child pornography. The agent was able to download several videos of prepubescent children engaged in sexually explicit conduct from this host computer. Further investigation revealed that the subscriber information for this IP address resolved to a residence in Jacksonville, where Stevenson was living.
On January 31, 2013, FBI agents and other officers executed a federal search warrant at the Jacksonville residence and seized two laptop computers. During an interview, Stevenson stated, among other things, that he had been viewing and downloading child pornography for at least three years. He described his activities with child pornography as "interesting, curious, and novel," and stated that he downloads and watches child pornography for his “personal use.” Subsequent analysis of Stevenson's laptop computers revealed a total of at least 24 videos and 51 images depicting child pornography.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
G.R.E.A.T. Graduation at P.C. Lujan Elementary SchoolRead the Press Release
United States Attorney Alicia A.G. Limtiaco, announced today that after undergoing a six-week curriculum taught by Gang Resistance Education And Training (G.R.E.A.T.) officers, over 75 fifth grade students at P.C. Lujan Elementary School will be receiving their certificates of completion on Wednesday, October 30, 2013, at 9:00 A.M., in the school's cafeteria.
Parents are invited and highly encouraged to attend and participate alongside our students, in the graduation. The G.R.E.A.T. Program's primary objective is awareness and prevention of delinquency, youth violence, and gang membership. The G.R.E.A.T. lessons, aimed at elementary and middle school students, focus on providing life skills to help students avoid delinquent behavior and violence to solve problems.
Mr. Jon Fernandez, Guam Department of Education Superintendent and Barrigada Mayor June U. Blas have also been invited to attend.
U.S. Attorney Limtiaco stated, AWe praise the hard work, motivation and significant accomplishments of our students in completing the G.R.E.A.T. Program, and the continued commitment and dedication of the G.R.E.A.T. instructors to our youth in taking the G.R.E.A.T. message to our schools in Guam.
Anyone interested in learning more about the program can log on to www.great-online.org.
Freeport Physician Pleads Guilty to Health Care Fraud and Unlawful Dispensing ChargesRead the Press Release
PENSACOLA, FLORIDA – Freeport physician Robert L. Ignasiak, Jr., 58, pled guilty today to 12 counts of health care fraud, 29 counts of illegally distributing controlled substances, and one count of failing to appear for trial. The plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between 2001 and 2005, while operating the Freeport Medical Clinic, Ignasiak developed a reputation as a physician who freely prescribed highly addictive controlled substances. During that time, he prescribed drugs such as hydrocodone, oxycodone, morphine, diazepam, and alprazolam in quantities, dosages, and combinations that caused his patients to abuse, misuse, and become addicted to the drugs. He continued to prescribe these substances even after becoming aware that his patients were abusing them. He did so despite indications that his patients were not taking the medicines as prescribed, were stealing drugs, were “doctor shopping,” were taking the medicines with alcohol, and were suffering overdoses.
Ignasiak was initially indicted on these charges in 2008. Following a jury trial, he was convicted of 12 counts of health care fraud and 31 counts of illegally distributing controlled substances. Ignasiak’s convictions were reversed on appeal in 2012. He was released from custody, and a retrial was scheduled. On October 31, 2012, Ignasiak faked his own suicide and became a fugitive from justice. Almost a year later, in September 2013, he was arrested in Coral Springs, Florida, while handing out leaflets for a pressure washing company, under a false name.
Ignasiak will be sentenced on January 14, 2014, by Senior United States District Judge Lacey Collier. He faces maximum prison sentences of 10 years for health care fraud, 20 years for drug distribution, and 10 years for failure to appear.
The case resulted from a four-year investigation by the North Florida Health Care Fraud Task Force, comprised of the Florida Attorney General’s Office, Drug Enforcement Administration, Federal Bureau of Investigation, National Drug Intelligence Center Document Exploitation Division, Defense Criminal Investigative Service, Florida Department of Law Enforcement, Walton County Sheriff’s Office, Florida Department of Financial Services, and State Surgeon General, Florida Department of Health.
Assistant U.S. Attorneys Karen Rhew-Miller and Alicia Kim prosecuted this case.
Former Treasurer of Mayetta Fire District Charged with Embezzling $427,000Read the Press Release
TOPEKA, KAN. - The former treasurer of the Mayetta Rural Fire District #1 in Jackson County, Kan., has been charged in federal court with embezzling more than $427,000 from the district, U.S. Attorney Barry Grissom said today.
Richard P. Bontrager, 67, Holton, Kan., was charged in a criminal information filed today in U.S. District Court in Topeka with one count of embezzlement. The criminal information alleges the crime occurred from 2008 to 2013 while Bontrager was managing the finances of the fire district, which serves a 121-square-mile area including the town and nearby rural community. Beginning in 2008, Bontrager began embezzling funds by issuing checks with forged signatures of members of the district’s five-member board of directors. He made the checks payable to a fictitious company he called “R & S Services,” to conceal the fact the money was deposited into his personal account.
The criminal information also alleges he falsified loan documents to obligate the fire district to make monthly lease payments on a Polaris Ranger UTV and a 1988 Chevrolet one-ton brush truck. He created false minutes to make it appear the board had approved the lease.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Jackson County Sheriff’s Office investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Former NFL Player Sentenced to More Than 3 Years in Federal Prison for Federal Tax Fraud ConspiracyRead the Press Release
Orlando, Florida –Senior U.S. District Judge John Antoon, II today sentenced Freddie L. Mitchell, II to 37 months in federal prison for conspiracy to file a false tax claim with the government. Mitchell pleaded guilty to the offense on March 8, 2013.
According to court documents, on November 30, 2009, the Internal Revenue Service determined that a fraudulent 2008 Form 1040 claiming a $1,968,288 tax refund had been filed in the name of a professional athlete (“A.G”). Agents soon learned that A.G. had been introduced, by Mitchell, to former IRS employee Jamie Russ-Walls. A.G. had been told by Mitchell that Russ-Walls could help A.G. get extra money back from the IRS. Mitchell also falsely assured A.G. that Russ-Walls already had helped him receive a $1 million refund.
At the end of July 2009, Jamie Russ-Walls and Richard Walls flew to Orlando and met with A.G. and Mitchell. Jamie Russ-Walls indicated that she and her husband worked in the tax preparation business. After providing copies of his tax records to the couple, A.G. was told that he could get additional money back from the IRS because of "grey areas" in his tax returns. A.G. eventually made a $100,000 down payment to Mitchell towards the tax preparation fee, which Mitchell deposited it into his bank account. Mitchell eventually split the fee with Jamie Russ-Walls and Richard Walls.
Without A.G.'s knowledge, Mitchell, Jamie Russ-Walls and Richard Walls then electronically submitted a fraudulent 2008 Form 1040, in A.G.'s name, to the IRS. The form included false business losses totaling $5,367,775, resulting in a fraudulent refund of $1,968,288. A.G. never had any involvement in these businesses and never had provided the information on the tax schedule to Mitchell, Jamie Russ-Walls, or Richard Walls. The false return also included paperwork asking the IRS to directly deposit the refund into the bank accounts of Mitchell and Jamie Russ-Walls. A.G. subsequently learned of the fraudulent activity when the IRS rejected his regular tax return that was filed on October 14, 2009. The IRS was then able to cancel payment on the fraudulent return.
During the investigation, agents also discovered five other false 2009 returns totaling $2,264,005 that had been submitted by Mitchell, Jamie Russ-Walls and Richard Walls. Each of these claims had been accompanied by false W-2 forms showing wages in the millions of dollars from Chameleon Enterprises, LLC. Mitchell had incorporated this business in 2003, listed himself as the manager, and opened a mailbox in Kathleen, Florida to receive correspondence. When contacted by the IRS about the wages allegedly paid to these five individuals, Mitchell falsely verified their employment and income. Records checks later revealed that Chameleon actually had been dissolved as a corporation by the State of Florida in 2007 and therefore did not pay any wages in 2009.Jamie Russ-Walls and Richard Walls previously pleaded guilty and were sentenced for their roles in this case. On February 1, 2013, Jamie Russ-Walls was sentenced to five years of probation. On February 14, 2013, Richard Walls was sentenced to 37 months in federal prison.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former Jacksonville State University Professor Sentenced for Attempting to Receive Child PornographyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former assistant professor at Jacksonville State University to five years in prison for attempting to receive child pornography, announced U.S. Attorney Joyce White Vance, Immigration and Customs Enforcement's Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr. and Alabama Bureau of Investigation's Internet Crimes Against Children Task Force Commander Jeremy Lett.
U.S. District Judge L. Scott Coogler sentenced JONATHAN MARK HERBERT, 39, of Jacksonville, and ordered him to serve 10 years of supervised probation following his five years in prison. Herbert also must register as a sex offender. Herbert pleaded guilty in January to one count of attempting to receive child pornography. U.S. Marshals took him into custody following today's hearing.
According to court documents, Herbert attempted to receive images of child pornography over the Internet in August 2012 from a 14-year-old girl, who turned out to be an undercover police officer. He also drove to a Birmingham shopping center where he planned to meet the 14-year-old for sex.
The Alabama Department of Public Safety's Internet Crimes Against Children Task Force and HSI investigated the case, which Assistant U.S. Attorneys Joe Montminy and Daniel Fortune prosecuted.Former Executive Director of Chelsea Housing Authority Charged with Conspiring to Defraud the United StatesRead the Press Release
BOSTON – The former Executive Director and Assistant Executive Director of the Chelsea Housing Authority (CHA) as well as an inspection consultant were charged today for their roles in rigging the inspection process for federally-funded housing units at the CHA.
Michael E. McLaughlin, 67, of Dracut; James H. Fitzpatrick, 63 of Acton; and Bernard J. Morosco, 50, of Utica, NY were indicted for conspiring to defraud the United States and the U.S. Department of Housing and Urban Development (HUD) by impairing, impeding, and defeating the proper operation of the physical condition assessment by HUD’s Real Estate Assessment Center (REAC), which relies on a statistically valid random sample of units to inspect.
According to the Indictment, pursuant to federal regulations to determine whether a public housing authority is meeting the standard for its residents of conditions that are “decent, safe, sanitary, and in good repair,” REAC is required to “provide for an independent physical inspection of a public housing authority’s property or properties that includes, at a minimum, a statistically valid sample of the units in the PHA’s public housing portfolio to determine the extent of compliance with the standard.” REAC inspections are conducted by independent contractors who have received training from REAC on the inspection protocol and regulations and have been certified. Once certified, an inspector is given an inspector number and password to access the secure REAC server which contains data on all public housing authorities and also later enables the inspector to generate a random sample of units at the scheduled date of the inspection.
The indictment alleges that from 2006 through November 2011, McLaughlin and Fitzpatrick conspired with Morosco, whom they hired as a consultant for the REAC inspection process in those years. Morosco, himself a certified REAC inspector who had access to the secure REAC database, identified in advance the units of the CHA that would be randomly selected to be inspected by the assigned HUD REAC inspector on the day of the inspection. Morosco then provided to McLaughlin and Fitzpatrick a list of those units to be inspected sufficiently in advance of the inspection so that they could organize and direct REAC “SWAT” Teams of CHA employees to concentrate on ensuring that any needed repairs would be made to those identified units. When the REAC inspectors conducted the inspections in 2007, 2009 and 2011, the units that were randomly selected were the same as the ones provided in advance by Morosco.“Today’s indictment alleges a serious breach of public trust that affected residents of public housing, people who depend on the integrity of federally funded housing authorities to have a decent place to live,” said United States Attorney Carmen M. Ortiz. “This office remains committed to ensuring that taxpayer dollars spent on federally-funded housing units are used appropriately and that those who are entrusted with those funds are held accountable for actions that abuse that trust.”
“The charges made today prove our continuing resolve to root out corruption in all forms, especially the kind that ultimately hurts our most financially needy and deserving families who reside in public housing,” said Special Agent in Charge of U.S. Department of Housing and Urban Development, Office of Inspector General Christina Scaringi.
If convicted, McLaughlin, Fitzpatrick and Morosco each face a statutory maximum of five years in prison, three years of supervised release, and $250,000 fine.
USA Ortiz and SAC Scaringi announced the indictment today.
The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of the Public Corruption and Special Prosecutions Unit.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Carbon County Man Pleads Guilty to Receiving and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old former Lehighton resident pleaded guilty today to receiving and distributing child pornography before Senior U.S. District Court Judge Edwin M. Kosik.
According to United States Attorney Peter J. Smith, the defendant, Stephen Puza, III, admitted to using a computer to download and share numerous images of child pornography during July 2011 through September 2013. Puza was living in Bethlehem, Pennsylvania, at the time of his arrest.
Puza was indicted by a federal grand jury on September 10, 2013, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Lehighton Borough Police.
Puza faces a mandatory minimum sentence of five years in prison and a possible maximum sentence of 20 years in prison, and a fine of $250,000. Puza remains in custody pending his sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Former CFO of Emporia Company Charged with Embezzling $265,927Read the Press Release
TOPEKA, KAN. - The former chief financial officer for a manufacturing firm in Emporia has been charged in federal court with embezzling more than $265,000 from the company, U.S. Attorney Barry Grissom said today.
Sandra Moore, 57, Emporia, Kan., was charged in a criminal information filed today in U.S. District Court in Topeka with one count of embezzlement. The criminal information alleges the crime occurred beginning in 2008 while the defendant was CFO of Sauder Custom Fabrication, Inc., in Emporia, Kan. It is alleged Moore devised a variety of schemes to divert money from her employer’s accounts to her own including:- Making unauthorized transfers from the company’s disbursement account to her personal account at ESB Financial in Emporia.
- Issuing unauthorized checks and depositing them into her personal account.
- Issuing unauthorized to repay loans she obtained from her 401K account.
Using those methods, she is alleged to have embezzled a total of $265,927 from the company.
If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Former Bolivar Clinic Physician Sentenced for Illegally Dispensing NarcoticsRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former physician at a Bolivar, Mo., health clinic has been sentenced in federal court for illegally distributing prescription drugs.
Nolan Denny Crisp, 76, of Halfway, Mo., was sentenced by U.S. District Judge Brian C. Wimes on Monday, Oct. 28, 2013, to two years in federal prison without parole. The court also ordered Crisp to pay a $10,000 fine.
Crisp pleaded guilty on April 8, 2013. Under the terms of his plea agreement, Crisp was required to surrender his license to practice medicine; he can never again seek licensing to practice medicine in the United States.
“A doctor handing out prescriptions in the parking lot is no better than a drug dealer on the street corner,” Dickinson said. “As a professional who certainly knew the health risks and the threat to public safety, he betrayed his oath and the trust of the community in order to profit from the dangerous abuse of prescription drugs.”
Special Agent in Charge of the FBI Michael Kaste stated, “There is no tolerance for the reckless dispensing of controlled substances. Dr. Crisp’s actions were a betrayal of his oath and the public’s trust resulting in significant harm. Law enforcement remains committed to investigating medical professionals who abuse their positions of trust, escalating the growing and serious problem of non-medical use of prescription pain relievers.”
Crisp was employed at Pomme de Terre Wellness Center (also known as the Bolivar Family Wellness Clinic and Northwoods Psychiatric Services, Inc.) in Bolivar from June 2009 through Nov. 10, 2010 to provide pain management and other services to patients.
Crisp admitted that he wrote prescriptions for OxyContin, Oxycodone Hydrochloride, and Oxycodone-Aspirin for a purported patient with whom he was involved in a sexual relationship. The prescriptions were illegal because they were not in the usual course of professional practice and for a person who had no legitimate medical need for the prescriptions.
Current and former clinic employees expressed concerns about Crisp’s prescription-writing practices. For example, clinic staff noticed Crisp meeting people in the parking lot and giving them prescriptions, even though they were not being seen in the clinic. The clinic was getting so many patients claiming that their prescriptions were lost or stolen that they began requiring a police report. A nurse practitioner said word got out that Crisp was generous with narcotics prescriptions, and she would see patients parked across the street in a church parking lot waiting for him so they could get prescriptions. She also said that sometimes the clinic nurses would run a drug screen that revealed the patient was not taking the drugs being prescribed; they informed Crisp, but he continued writing prescriptions for the patient.
The federal investigation included reviewing overdose reports from Citizens Memorial Hospital, Crisp’s appointment schedule for the clinic, Crisp’s Medicaid billing records while he was at the clinic, information regarding prescriptions written by Crisp and filled at six major pharmacies in Bolivar, and information from the Polk County Coroner. During the period that Crisp worked at the clinic, there were 96 overdose incidents at the hospital, 29 of whom were connected to his care. During that same period, six of the patients who died from overdoses were connected to his care.
The government retained an internal medicine physician specializing in pain management to review patient files. The physician was provided with charts for certain patients who were known to be drug abusers or who had overdosed. In the physician’s report, he provided background regarding the standard of care for the use of controlled substances in the treatment of pain. He also provided a detailed analysis of Crisp’s treatment of 20 patients. For the 20 patients, his opinion was that Crisp’s treatment was reckless, dangerous, life-threatening, and inconsistent with sound medical practice.
This case was prosecuted by Assistant U.S. Attorney Cindi Woolery. It was investigated by the FBI, the Drug Enforcement Administration, the Bolivar, Mo., Police Department and the Missouri Medicaid Fraud Control Unit.
Former Arlington, Texas, Police Officer Admits Unlawfully Accessing and Unlawfully Providing Law Enforcement Sensitive Information to A Known Drug DealerRead the Press Release
DALLAS — Thomas S. Kantzos, 45, of Fort Worth, Texas, a former officer with the Arlington Police Department (APD), appeared this morning before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to an Indictment charging exceeding access to a protected computer, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
As an officer with the APD, Kantzos was authorized to access law enforcement information obtained through the Texas Crime Information Center (TCIC), the National Crime Information Center (NCIC) and the Texas Law Enforcement Telecommunication System (TLETS), and he received specialized training on the authorized uses of the information, as well as the potential penalties for the misuse of such information. Personal use of such information, including releasing information to members of the general public, is not authorized and violates APD policy.
Prior to December 2011, Kantzos knew that “Person A” was an individual who trafficked in anabolic steroids. In fact, Kantzos had received anabolic steroids from Person A for both his own use and for the use of other APD officers. In November or December 2011, Person A suspected that he was under police surveillance.
On December 29, 2011, Person A saw a motor vehicle parked near his house and asked Kantzos to “run” the license plate because he was concerned that law enforcement was watching him and he didn’t want to get arrested for trafficking the anabolic steroids. Kantzos, without a legitimate law enforcement purpose, used the computer in his patrol car, while he was on duty, to access the Texas Department of Public Safety’s (DPS) protected computer through TLETS, under the guise of conducting a stolen vehicle investigative inquiry. His computer inquiry automatically searched for information about that motor vehicle contained in law enforcement computers located in Texas and in other states, such as the NCIC computer.
Kantzos admits he knew the use of this computer for this purpose exceeded authorized use. After Kantzos obtained the information about the vehicle, he relayed the information to Person A to help Person A avoid arrest, apprehension or disruption while Person A unlawfully trafficked in the anabolic steroids.
Kantzos, who remains on bond, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for February 12, 2014, before U.S. District Judge Barbara M. G. Lynn.
The case is being investigated by the FBI and the Texas Ranger Division of the Texas DPS. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney Mark Penley are prosecuting.
Fairfax Man Pleads Guilty to Producing Child PornographyRead the Press Release
ALEXANDRIA, Va. – Adam Jacob Zottoli, 32, of Fairfax, Va., pleaded guilty today to two counts of production of child pornography.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema.
According to a statement of facts filed with the plea agreement, on March 19, 2013, a thirteen-year-old boy came to the attention of the Fairfax County Police Department based on concerns at school. The minor told law enforcement that over the past three years he had been sexually assaulted by Zottoli, and that Zottoli had photographed some of the incidents. Law enforcement then obtained search warrants for Zottoli’s house and computers, and the forensic review of Zottoli’s computers found images and videos of the minor, as well as videos and images of another minor. After Zottoli was arrested by the Fairfax County Police Department on April 4, 2013, he admitted to producing child pornography.
Zottoli previously was convicted of possession of child pornography on May 1, 2000 in the Eastern District of Virginia and was sentenced to serve 30 months’ imprisonment. As a result of that prior conviction, Zottoli now will face an increased mandatory minimum sentence of 25 years in prison, and up to a maximum penalty of 50 years in prison, when he is sentenced on January 17, 2014.
This case was investigated by the Fairfax County Police Department. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
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 Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Duquesne Man Charged with Possessing HeroinRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of possession with the intent to distribute heroin, United States Attorney David J. Hickton announced today.
The one-count indictment named Anthony Coles, 26, as the sole defendant.
According to the indictment, on or about June 13, 2013, Coles was found to be in possession, with the intent to distribute, of a quantity of a mixture and substance containing a detectable amount of heroin, which is a Schedule I controlled substance.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Dept., Oakdale Police Dept, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Pennsylvania Attorney General’s Office conducted the investigation leading to the superseding indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Drug Dealer Who Stold Police Car SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that Terrance Robinson, 29, of Fitzgerald, Georgia, was sentenced on Monday, October 28, 2013, to 360 months imprisonment for possession with intent to distribute crack cocaine. Sentence was imposed by the Honorable Hugh Lawson, Senior United States District Judge sitting in Valdosta, Georgia.Mr. Robinson entered a plea of guilty on July 29, 2013, to one count of possession with intent to distribute crack cocaine. Mr. Johnson was stopped by officers with the Tift County Sheriff’s Office on May 23, 2012 on Ferry Lake Road near Ocilla, Georgia for a traffic violation. In entering his plea of guilty, Mr. Robinson admitted that after the police stopped his car, he struggled with officers and ultimately fled in a stolen police car with other officers in pursuit. During the subsequent chase, the stolen police car driven by Mr. Robinson was involved in a head-on collision with another police car, and Mr. Robinson was ultimately caught after trying to escape on foot. Upon searching Mr. Robinson’s car, officers located 21 plastic baggies containing 404.2 grams of crack cocaine.
“This significant sentence properly punishes Mr. Robinson for his illegal drug dealing and endangerment of law enforcement and the public,” said United States Attorney Michael Moore. “It should serve as a reminder to anyone who participates in illegal drug activity that you can run from the law, but you will be caught.”
The case was investigated by the Drug Enforcement Administration, the Mid-South Narcotics Task Force and the Tift County Sheriff’s Office. Assistant United States Attorney Peter Leary is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Columbiaville Man Indicted and Arrested for Filing False Tax ReturnsRead the Press Release
Gary Woody, of Columbiaville, Michigan, was arrested and arraigned today in federal court on an indictment charging him with three counts of filing false tax returns, United States Attorney Barbara McQuade announced today. Ms. McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
The three count indictment charges that for the tax years 2006-2008, Woody filed tax returns that he knew were false. Woody knew that he was not truthfully reporting income that he received from Technico Products, LLC. The alleged tax loss to the government for 2006-2008 was approximately $270,000.
The defendant faces a maximum term of imprisonment of three years on each count of the indictment. The defendant faces a fine of $250,000 per count. The actual sentence imposed, if Woody is convicted, would depend on a number of factors, including the advisory sentencing guidelines.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by Special Agents of the IRS-Criminal Investigation and is being prosecuted by U.S. Attorney’s Office in Flint, MI.
Chauncey Leo Elk Pleads Guilty in U.S. Federal CourtRead 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, CHAUNCEY LEO ELK, a 24-year-old resident of Poplar, pled guilty to false statement during a firearms transaction. Sentencing has been set for January 14, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On April 3, 2013, ELK made a false statement on an ATF Form 4473 during his attempt to purchase a Marlin .22 caliber rifle in Wolf Point at the Swap Shop. At that time, ELK was under prosecution and previously appeared on a federal indictment charging him with firearms offenses - one felony and one misdemeanor - straw purchase and transfer of a handgun to a juvenile.
ELK personally appeared before Magistrate Strong on March 12, 2013, in Great Falls. Magistrate Strong warned ELK that
The Swap Shop maintains a federal firearms license to deal in firearms. The Swap Shop's federal firearms license was
April 3, 2013. As a federal firearms licensee, the Swap Shop is required to maintain the ATF Form
When ELK filled out the ATF Form 4473 on April 3, 2013, at the Swap Shop, ELK checked that he was not under
Swap Shop to believe that the Marlin .22 caliber rifle could be lawfully
ELK.
ELK faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Charleston Pill Dealer Who Pawned Pistol Sentenced to More Than 3 Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Charleston pill dealer who illegally possessed a 9-millimeter pistol in January 2013 and then turned it in at a local pawn shop for cash was sentenced today to three years and one month in federal prison, announced U.S. Attorney Booth Goodwin. Anthony Dawson, Jr., 30, previously pleaded guilty in July to being a felon in possession of a firearm. Dawson’s sentence was handed down by U.S. District Judge John T. Copenhaver, Jr. in Charleston. On January 3, 2013, Dawson possessed a 9-millimeter pistol and later pawned the firearm near Dunbar, W.Va. in exchange for $400.
Dawson was previously convicted of conspiracy to deliver oxycodone in June 2009 in the Circuit Court of Kanawha County. He did not have his rights to possess a firearm restored.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Centralia Man Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 29, 2013, Michael E. Mays, 53, of Centralia, IL, pled guilty to a two-count indictment charging that he engaged in a scheme to commit health care fraud and that he made false statements in connection with health care benefits. At his sentencing Mays will face up to 10 years in prison, a fine of up to $250,000 and up to 3 years of supervised release on the first count, and up to 5 years in prison, a fine of up to $250,000, and up to 3 years of supervised release on the second count. Sentencing has been set for March 7, 2014, at 11:00 a.m. in United States District Court in East St. Louis, Illinois.
During his plea hearing, Mays, a beneficiary of the Illinois Home Services program, admitted that he had submitted, together with his personal assistant, false and fraudulent claims in regard to the hours of services performed by his personal assistant in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead entering a nursing home.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police. The case is being prosecuted by Assistant United States Attorney Michael Quinley.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Catawba County Round-up Nets 19 on Federal Drug and Gun ViolationsRead the Press Release
Nine Suspects Also Arrested On State Charges
CHARLOTTE, N.C. – Federal and local law enforcement agencies arrested 19 suspects today in Hickory, N.C. and the surrounding area charged with drug trafficking, illegal firearm possession and other federal offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Another nine individuals were arrested on state charges.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Chief Tom Adkins of the Hickory Police Department (HPD); and James C. Gaither, Jr., District Attorney for Burke, Caldwell and Catawba Counties.
The federal indictments were returned by a grand jury on October 15 and 16, 2013, but remained sealed until today’s arrests. The investigation began in October 2012, targeting individuals who participated in illegal drug transactions and gun trafficking in and around Hickory. The seven-month anti-violence initiative resulted in the seizure of more than 80 firearms, including 53 handguns, 19 rifles, 10 shotguns and one short barrel shotgun. Law enforcement also seized more than 1,425 grams of narcotics, including over 1,125 grams of cocaine and more than 230 grams of marijuana, with a total street value of over $55,000.
In making today’s announcement U.S. Attorney Tompkins stated, “This morning’s arrest of 19 offenders is part of my office’s ongoing effort to combat drug trafficking and gun violence throughout our district. The law enforcement partners who participated in this anti-violence initiative share a common goal: to fight and reduce violent drug crime by joining forces, so our citizens can reclaim their neighborhoods from drug dealers and put an end to the collateral violence that comes with drug and gun trafficking.”
“ATF will continue to work with our law enforcement partners to identify those individuals that contribute to the number of crime guns used in violent crime in the Hickory area. Violent gun crime is the scourge in our society and any contribution to illegal firearms trafficking cannot stand,” said ATF Special Agent in Charge Wayne L. Dixie. “Our mandate is to do everything we lawfully can to allow the citizens of Hickory to live in a safe and secure environment without the fear of having needless violent crime as a part of their lives. We accept that mandate and today’s law enforcement action should send that message loud and clear.”
“I am very proud of our local law-enforcement and agents and staff of the ATF who worked together to bring about this initiative. This is a major commitment of resources from the ATF for a city the size Hickory. These defendants will be prosecuted by both the U.S. Attorney’s office and the 25th prosecutorial district. We intend to follow up on this excellent collaborative effort with aggressive prosecution,” said James C. Gaither, Jr., District Attorney for the 25th Prosecutorial District, which encompasses Burke, Caldwell and Catawba counties.
“Hickory Police Department is committed to making our community safe,” said Chief of Police Tom Adkins. “HPD along with other area jurisdictions are members of the Catawba County Safe Communities Initiative, which directs law enforcement resources to reducing the violence and drugs in our communities. This focused investigation with ATF and our officers will have a lasting impact on reducing violence and taking drugs off the streets of Hickory and other communities in Catawba County.”
The round-up was conducted by the ATF, U.S. Marshals Service, Hickory Police Department, Newton Police Department, Catawba County Sheriff’s Office, Conover Police Department, and Longview Police Department. Those arrested include drug traffickers, members and associates of drug trafficking organizations, convicted felons, as well as several local gang members. The federal suspects arrested during the round-up were:
• Kadeem Jamal Albright, 21, address unknown.
• Marquice Tyrone Streeter, 25, of Hickory.
• Kianta Martese Davis, 21, of Conover, N.C.
• Keon Maurquie Gaither, 25, address unknown.
• Chaetez Sean Clayton, 23, of Hickory.
• Tyree Dorian Rhinehardt, 21, of Hickory.
• Isreal Lerock Linebarger, 22, of Conover.
• Larry Jermaine Linebarger, 26, address unknown.
• Larry Elwood Steptoe, 33, address unknown.
• Jeffrey Lashaw Maddox 27, address unknown.
• Anthony Roger Mull, 28, of Hickory.
• Kenneth Demond Norman, 35, of Hickory.
• Eric Jay Ramirez, 33, of Hickory.
• Cortez Lamar Rogers, 31, address unknown.
• Dorrian Debrell Shuford, 20, of Newton, N.C.
• Traquon Rashaad Davis, 20, of Conover.
• Brandon Jaqwan Sifford, 22, of Hickory.
• Anthony Lamar Mason, 24, of Hickory.
• Donnell Lavon Thomas, 39, of Hickory.
Click on the links below to view a chart of federal charges and penalties for each defendant: Penalties
Nine additional defendants currently in state custody on state violations have been charged with federal offenses in connection with this investigation, bringing the total number of those charged federally to 28. They are:
• Damion Jordan Armstrong, 22, address unknown.
• Xavier Ahmad Cade, 22, of Hickory.
• Brandon Colbert, 26, of Hickory.
• Kerston Deshawn Edwards, 24, of Lincolnton, N.C.
• William Shalon Linebarger, 27, address unknown.
• Kenteze Rayvon Martin, 23, of Shelby, N.C.
• Christopher Durand Myers, 34, address unknown.
• Donald Lavar Ramseur, 24, of Hickory.
• Paris Michael Thompson, 24, address unknown.
Another nine defendants arrested this morning face state criminal charges.
The federal defendants arrested today are currently in federal custody. Their initial appearances were held in U.S. District Court before U.S. Magistrate Judge David C. Keesler.
The charges contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being conducted by the ATF and Hickory PD. U.S. Attorney Tompkins thanked all the law enforcement agencies involved in today’s round-up for their assistance in making today’s arrests.
Assistant U.S. Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte is leading the prosecution.
Buffalo Man Pleads Guilty to Producing Counterfeit CurrencyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Bishara Lott, 41, a Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to production of counterfeit currency. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that the defendant used a personal computer to print $5,090 in counterfeit $20, $50, and $100 bills. On July 2, 2013, Lott attempted to sell the counterfeit currency to an undercover operative of the Secret Service in return for $500 in genuine currency.
Sentencing is scheduled for March 7, 2014, at 12:30 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.Army Soldier and Civilian Sentenced on Bribery Charges for Facilitating Thefts of Fuel in AfghanistanRead the Press Release
A former U.S. Army Sergeant and a co-conspirator have been sentenced in the District of Colorado for their roles in stealing fuel at Forward Operating Base (FOB) Fenty, Afghanistan, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division announced.
U.S. Army Sergeant Christopher Weaver, 30, of Fort Carson, Colo., was sentenced on Oct. 28, 2013, to serve 37 months in prison. Weaver pleaded guilty Oct. 20, 2012, and was sentenced by U.S. District Court Judge Marcia S. Krieger.
Jonathan Hightower, 31, of Houston, Texas, who worked at FOB Fenty as a civilian employee of a contractor and who had conspired with Weaver, was also sentenced on Oct. 28, 2013, to serve 27 months in prison. He pleaded guilty Aug. 3, 2012, and was sentenced by U.S. District Court Judge William J. Martinez.
A third conspirator, former soldier Stephanie Charboneau, pleaded guilty on Sept. 5, 2013, before U.S. District Court Judge Philip A. Brimmer. Her sentencing is set for Dec. 9, 2013.
Weaver and Hightower were also ordered to pay $1,225,000 in restitution, jointly with Charboneau. Hightower was also ordered to pay $400,000 in restitution for a related fuel theft scheme that was the subject of the prosecution.
According to court documents, from in or about January 2010 through June 2010, Weaver, Hightower and Charboneau were involved in handling the uploading and transportation of fuel from FOB Fenty, near Jalalabad, Afghanistan, to nearby military bases. Weaver and Charboneau created false and fraudulent documents purporting to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. Hightower was a civilian who worked at the base’s “fuel point” uploading fuel trucks, occasionally filling the trucks with fuel to be stolen and taking other steps to assist the conspiracy. At the direction of Weaver and Charboneau, fuel truck drivers used the fraudulent documents to justify the filled trucks’ departures from FOB Fenty. In truth, after the filled fuel truck left the base, the fuel was simply stolen, and Weaver and Charboneau would receive cash from the representative of the trucking company that supplied the fuel trucks. The cash would be split among the three conspirators.
All three conspirators pleaded guilty to receiving payments from a representative of the trucking company in exchange for facilitating the theft of approximately 70 5,000-gallon truckloads of fuel. Each of the three acknowledged that the loss to the United States was in excess of $1 million.The cases were investigated by the Special Inspector General for Afghanistan Reconstruction, the Department of the Army, Criminal Investigations Division (CID); the Defense Criminal Investigative Service; and the FBI.
These cases were handled by Special Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section, who is on detail from the Special Inspector General for Afghanistan Reconstruction (SIGAR).
28 October 2013
Woodinville Man Sentenced to Four Months in Prison, Six Months of Home Detention for Wire FraudRead the Press Release
A Woodinville, Washington based company and its owner were sentenced today in U.S. District Court in Seattle for violating the Arms Export Control Act and for wire fraud, announced U.S. Attorney Jenny A. Durkan. The company, PRECISION IMAGE CORPORATION, is operated by owner, CHIH-KWANG HWA, out of his Woodinville home. HWA obtained contracts to supply circuit boards to the U.S. Navy, by falsely claiming the boards would be manufactured in the United States. Instead HWA illegally sent restricted information to a company in Taiwan for the boards to be manufactured there. The company was fined $300,000 for violating the Arms Export Control Act. HWA was sentenced for wire fraud to four months in prison, and six months of home detention as part of his two years of supervised release. U. S. District Judge James. L. Robart imposed the sentences.
According to the charging information and the plea agreements in the case, between 2009 and 2011, HWA obtained contracts worth $180,034 to supply circuit boards to the U.S. Navy. The Navy supplied technical data to PRECISION IMAGE that contained the technical specifications for the circuit boards. This technical data was designated on the United States Munitions List, International Traffic in Arms Regulations. As a result, this technical data could not legally be transmitted outside the United States without a license from the U.S. State Department. CHIH-KWANG HWA knew about this restriction at the time he received the technical data from the Navy. HWA did not get the appropriate licenses, and sent the restricted data to the Taiwan manufacturer. One of the transmissions occurred in September 2011, and the Taiwanese manufactured circuit boards were later provided to the Navy. In addition, many of the contracts awarded to HWA were set aside for companies that promised to manufacture the boards in the United States. HWA falsely represented to the Navy in connection with these contracts that the boards were being manufactured in the United States, when instead they were being manufactured in Taiwan.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Naval Criminal Investigative Service. The case was prosecuted by Assistant United States Attorneys Todd Greenberg and Thomas Woods.
West Mifflin Woman Laundered Money for Heroin TraffickerRead the Press Release
PITTSBURGH - A West Mifflin, Pa., woman was convicted of conspiring to launder money, United States Attorney David J. Hickton announced today.
Lori Page, 30, pled guilty before United States District Judge Nora Barry Fischer. Judge Fischer scheduled sentencing to occur on March 20, 2014, at 9 a.m.
In support of the guilty plea, the Court was informed that Page, from January 2012 through June 2012, rented, or arranged for the rental of, at least seven cars for a Pittsburgh-area heroin dealer. Page made payments to the rental car companies, either directly or through a female associate, totaling over $11,000. The funds Page used to cover the rentals were the proceeds of interstate heroin trafficking. Page was aware that the funds were from unlawful activity and that the rental transactions were designed to conceal those activities and the nature and source of the funds.
The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction in this case.
Walthill Man Sentenced for BurglaryRead the Press Release
United States Attorney Deborah R. Gilg announced that William G. Hallowell, 28 of Walthill, Nebraska was sentenced in federal court in Omaha for a burglary on the Omaha Indian Reservation. The Honorable John H. Gerrard sentenced Hallowell to a 21 month term of imprisonment concurrent with his Omaha Tribal Court sentence for the same offense. After his release from prison Hallowell will begin a three year term of supervised release.
On July 7, 2012, the Walthill Police Department responded to a burglary. The residents returned to their home to find their dog shut in a bathroom and a computer and jewelry missing. Hallowell was arrested later that day after being in an altercation with another individual. The computer and bag of jewelry were in his possession at the time of his arrest.
This case was investigated by Federal Bureau of Investigation and Walthill Police Department.
Walthill Man Sentenced for Statutory RapeRead the Press Release
Chief United States District Court Judge Laurie Smith Camp sentenced Newton Dale, age 27, of Walthill, Nebraska, for his conviction of statutory rape in Indian Country. Dale was sentenced to 41 months of imprisonment to be followed by five years of supervised release. His sentence was ordered to run consecutively to the sentence Dale is currently serving in Iowa for a controlled substance violation.
Dale is a member of the Omaha Tribe of Nebraska. Beginning in January of 2011 and continuing for a period of time thereafter, Dale began having consensual sex with a 15 year old female member of the Ponca Tribe of Nebraska.
This case was investigated by the Federal Bureau of Investigation.
Wabaunsee County Woman Admits Embezzling from Bio-Security Research InstituteRead the Press Release
TOPEKA, KAN. - A Wabaunsee County woman has pleaded guilty to embezzling from the Bio-Security Research Institute at Kansas State University, U.S. Attorney Barry Grissom said today.
Linda Kay Miller, 51, Alma, Kan., pleaded guilty to three counts of interstate transportation of fraudulently altered securities. In her plea, she admitted the crimes took place while she worked as an office manager for the institute from August 2007 to January 2013. The institute receives grant money from the federal government to provide infectious disease research programs that address threats to plant, animal and human health.
Miller used her position to embezzle funds by diverting checks sent to the institute. She altered the checks to make herself either a payee or co-payee and deposited the proceeds into one of her personal bank accounts. The proceeds moved in interstate commerce as part of a process to clear and negotiate the checks. The plea identifies three specific checks Miller diverted: A check for $5,000 from the FSU Research Foundation in Tallahassee, Fla.; a check for $6,108.58 from the Frontline Healthcare Workers Safety Foundation in Atlanta, Ga.; and a check for $955 from J.M. Oconnor Inc., in Lenexa, Kan.
In her plea, Miller agreed to a money judgment of $16,523.58.
Sentencing is set for Jan. 13. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count.
Grissom commended the FBI, the Kansas State University Police Department, the Wabaunsee County Sheriff’s Office and Assistant U.S. Attorney Richard Hathaway for their work on the case.U.S. Attorney Announces Office Collected over $34 Million in Fiscal Year 2013Read the Press Release
BOISE – United States Attorney Wendy J. Olson announced today that her office's Financial Litigation Unit collected $2,715,051.85 in criminal fines, assessments, and restitution, and $31,441,799.34 in civil debts for the fiscal year that ended September 30, 2013. In addition, the Asset Forfeiture Unit collected approximately $1.7 million from criminal proceeds. Also in this fiscal year, approximately $1 million has been shared with state and local law enforcement agencies via the equitable sharing program.
“The more than $34 million our staff collected through civil debts, asset forfeiture, fines, assessments and restitution is more than seven times the U.S. Attorney's Office's operational budget,” said Olson. “Our dedicated collection staff—attorneys, paralegals, analysts and fiscal agents—ensure that those who owe the federal government money as a result of litigation in this district or as a result of longtime debt, such as student loans, make appropriate payments. Our asset forfeiture staff likewise works efficiently to deprive criminals of the profits of their crimes. This year, they have all done outstanding work and served this office, taxpayers and the federal government well.”
The Financial Litigation Unit collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, and procurement fraud. It also collects civil debts for defaulted student loans and defaulted federally financed mortgages, working with debtors to arrange viable payment plans. During fiscal year 2013, the office collected over $31 million in civil debt; of that, $27 million was collected for EPA violations concerning release of hazardous substances; $3.5 million in settlement of allegations of procurement fraud; $150,000 in settlement of a lawsuit under the Uniformed Services Employment and Reemployment Rights Act of 1994, a federal law that establishes rights and responsibilities for uniformed service members and their civilian employers; and $21,700 for civil penalties in three drug diversion cases.
From convicted criminals, the U.S. Attorney's Office collects fines, assessments, restitution, and asset forfeitures. The Financial Litigation Unit also pursues reimbursement from those who have fraudulently obtained payments from government contracts and programs such as Medicare and Medicaid. The federal government provides approximately 70% of Medicaid funds for the State of Idaho. The U.S. Attorney’s Office collected more than $1 million in fraudulently-obtained Medicare/Medicaid funds during the fiscal year.
Victims of crime receive funds collected in criminal restitution cases. Other criminal collections go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Asset forfeitures are distributed to local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors. In fiscal year 2013, the U.S. Attorney's Office collected over $638,000 in federal and non-federal restitution, and criminal fines, $578,000 of which was distributed to victims of crime.
Two Former Cook County Board of Review Analysts Convicted of Accepting $1,500 Bribe to Facilitate $10,000 Property Tax ReductionRead the Press Release
CHICAGO ― Two former analysts for the Cook County Board of Review were convicted today on federal conspiracy, bribery, and fraud charges for accepting $1,500 to facilitate reducing by more than $10,000 the property taxes on three residential properties identified by an individual who was cooperating with federal agents. The defendants, THOMAS HAWKINS and JOHN RACASI, were captured scheming with others to facilitate reducing property tax assessments in exchange for bribes in undercover recordings that were played at their week-long trial in U.S. District Court. The jury deliberated for a couple of hours Friday before finding both defendants guilty on all counts this morning.
Hawkins was an analyst since December 2004, and Racasi was an analyst since March 2006, and both were on the staff of one of the three Board of Review commissioners in September 2008, when they accepted the $1,500 bribe payment. Each of the three commissioners has analysts who handle residential property tax appeals and at least two of the three commissioners’ analysts must agree in order to reduce the Cook County Assessor’s property tax assessments.
Hawkins, 49, and Racasi, 52, half-brothers and both of Chicago, were convicted of one count each of conspiracy to commit bribery, bribery, mail fraud, and mail fraud conspiracy. They remain free on bond while awaiting sentencing, which U.S. District Judge John Tharp set for 2 p.m. on Feb. 25, 2014.
Mail fraud and mail fraud conspiracy each carry a maximum sentence of 20 years in prison; bribery carries a maximum of 10 years; and conspiracy to commit bribery carries a maximum of five years in prison, and each count carries a $250,000 maximum fine. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The guilty verdicts were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The FBI=s Chicago City Public Corruption Task Force led the investigation with assistance from the Chicago Police Department’s Internal Affairs Division, which is a task force member.
According to the evidence at trial, Ali Haleem, a former Chicago police officer who began cooperating with the FBI in July 2008 and is awaiting sentencing on other federal charges, was introduced to Hawkins, who, in turn, introduced him to Racasi. Haleem recorded numerous meetings and telephone conversations with both defendants in which they discussed facilitating property tax assessment reductions in exchange for bribes.
In September 2008, Haleem, Hawkins and Racasi discussed the specifics of the bribe Haleem would pay for reducing tax assessments on properties in Chicago, Burbank, and Tinley Park. On Sept. 11, 2008, Hawkins and Racasi agreed to reduce the assessed values on properties Haleem owned in Chicago and Burbank, as well as a property in Tinley Park owned by another individual, for three years beginning with the 2008 tax year. Hawkins and Racasi provided Haleem with analysis sheets for these properties, which could be used to calculate the tax savings that a property owner would realize over the three-year period. In return for the $1,500 bribe, Hawkins and Racasi promised Haleem a total tax savings for the three properties over the threeyear period of at least approximately $10,000. The payment was made on Sept. 17, 2008, when Haleem met with Hawkins and Racasi and handed the money to Racasi. Hawkins assured Haleem that Racasi would later provide Hawkins with his share of the money.
Hawkins and Racasi also facilitated a reduction in property tax assessments on 10 condominium units in Chicago, expecting to receive bribe payments that Haleem would collect from the property owners once the reductions were verified.
The government is being represented by Assistant U.S. Attorneys Margaret J. Schneider and Michael T. Donovan.
Two Armed Robbers Sentenced to Life in PrisonRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Manuel Orosa, Chief, City of Miami Police Department, and Sergio Velazquez, Chief, Hialeah Police Department, announce that Daniel Rodriguez, 28, and Louis Robinson, Jr., 35, both of Miami, were each sentenced to life in prison by U.S. District Judge Cecilia M. Altonaga. Rodriguez and Robinson were convicted by a jury in August of a string of armed robberies of jewelry stores that resulted in the shooting of one victim and the theft of over $1 million across Miami-Dade, Broward, and Palm Beach Counties.
According to trial evidence and testimony, between July and November of 2012, Rodriguez, Robinson, and their associates robbed four commercial establishments, armed with firearms and sledgehammers, and utilizing stolen luxury vehicles. Specifically, in July 2012, the defendants and their associates conducted an armed robbery of the ABC Jewelry Store in Hialeah, Florida, stealing over $400,000 in jewelry and watches. During the robbery, defendant Robinson shot and nearly killed the store’s owner. In August 2012, the defendants and their associates conducted an armed robbery of the AT&T store in Coconut Grove, stealing over $20,000 in merchandise, and victimizing store employees and customers. In September 2012, the defendants and their associates took over the Saks Fifth Avenue store in Boca Raton, stealing over $550,000 in jewelry and watches. In November 2012, the defendants and their associates conducted an armed robbery of the Jared’s Jewelry Store in Pembroke Pines, stealing over $100,000 in jewelry. At sentencing, Judge Altonaga determined that both Rodriguez and Robinson qualified as career offenders.
Mr. Ferrer commended the investigative efforts of the members of the South Florida Violent Crimes Task Force, the FBI, the City of Miami Police Department, the Hialeah Police Department, and the Miami Beach Police Department. The case was prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Olivia S. Choe.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Texas Men Resentenced for Illegal Deer Hunting in KansasRead the Press Release
WICHITA, KAN. - Two Texas men have been resentenced on Lacey Act charges of conspiracy, wildlife trafficking and obstruction of justice related to the sale of guided deer hunts in southern Kansas, U.S. Attorney Barry Grissom said today.
James Bobby Butler, Jr., 44, of Martinsville, Tex., was sentenced to 10 months in federal prison. Butler pleaded guilty in March 2011 to one count of conspiracy to violate the Lacey Act, one Lacey Act interstate trafficking count and one count of obstruction of justice.
His brother, Marlin Jackson Butler, 39, also of Martinsville, was sentenced to 8 months in federal prison. He pleaded guilty in March 2011 to one count of conspiracy to violate the Lacey Act and one Lacey Act interstate trafficking count.
The Lacey Act is a federal law that makes it illegal to knowingly transport or sell in interstate commerce any wildlife taken or possessed in violation of state law or regulation.
The Butlers ran a deer guiding operation near Coldwater, Kan. They sold guided deer hunts in Kansas to hunters from Texas and Louisiana, charging approximately $3,500 for archery hunts and $5,000 for rifle hunts. During those hunts, the Butlers transported clients to areas owned or leased by James Butler, where hunters were encouraged to kill deer illegally, in many cases without a license or permit.
In June 2011, James Butler was sentenced to 41 months in federal prison and Marlin Butler was sentenced to 27 months. They appealed their sentences to the U.S. Tenth Circuit Court of Appeals, which vacated the sentences and remanded the cases for resentencing.
Grissom commended the U.S. Fish & Wildlife Service, the Kansas Department of Wildlife and Parks, the Texas Parks and Wildlife Department, Colin Black of the Justice Department's Environment and Natural Resources Division, Environmental Crimes Section, and Assistant U.S. Attorney Matt Treaster for their work on the case.
Texas Man Sentenced for Transporting a Minor to Joplin for ProstitutionRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Texas man was sentenced in federal court today for transporting a minor across state lines to engage in prostitution.
Jerrod Lamonte Marshall, also known as “Jacoby” and “Wood,” 40, of Amarillo, Texas, was sentenced by U.S. District Judge Brian C. Wimes to 12 years and seven months in federal prison without parole. The court also ordered Marshall to pay $2,900 in restitution to his victim. Today’s sentence must be served consecutively to an unrelated Texas case.
On Feb. 6, 2013, Marshall pleaded guilty to transporting a minor to engage in prostitution.
The 15-year-old victim, identified as “M.S.,” was arrested for prostitution by the Joplin Police Department on Jan. 20, 2012. She told investigators that she had been working as a prostitute for Marshall in Tulsa, Okla., prior to being moved to Joplin.
This case was prosecuted by Assistant U.S. Attorney James Kelleher. It was investigated by the FBI, the Joplin, Mo., Police Department and the Fayetteville, Ark., Police Department.
Smith County Snake Expert Sentenced for Smuggling Peruvian ReptilesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 63-year-old Tyler, Texas eco-tourism guide has been sentenced for smuggling live snakes into the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
William Lamar pleaded guilty on June 18, 2013, to importing wildlife taken in violation of foreign law and was sentenced to three years of probation today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Aug. 29, 2012, Lamar imported seven live snakes that he had purchased at a market in Lima, Peru. Lamar smuggled the snakes in his jacket on flights from Lima to Miami, Florida and then to Dallas/Ft. Worth International Airport. The next day, after TSA agents refused to let him board a commuter plane to Tyler with the snakes, Lamar traveled aboard a ground transport shuttle from DFW to his home in Tyler. Game Wardens went to Lamar’s residence and seized the snakes.
Peruvian law prohibits the exportation of wild live animals coming from the forest or jungle region unless the exporter has a properly issued ministerial order authorizing the export for either scientific investigation or for cultural diffusion. Lamar admitted that he knew that Peruvian law prohibited the unauthorized exportation of wildlife in a jacket without proper authorization.
This case was investigated by the U.S. Fish and Wildlife Service, the Texas Parks and Wildlife Service, the Transportation Security Administration, and the Dallas Fort Worth International Airport Department of Public Safety. This case was prosecuted by Assistant U.S. Attorney Jim Noble.
Shooter Sentenced to Life in Prison for Racketeering MurderRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 32-year-old Vidor, Texas man was sentenced today for his role in a March 2011 murder committed in furtherance of the SWS criminal enterprise in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kenny Don Stanley pleaded guilty on June 25, 2013, to murder in aid of racketeering and was sentenced to life in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on Mar. 14, 2011, Stanley, along with Tanner Lynn Bourque, a/k/a “Two Shoes,” a/k/a “Hitman” (33), Kristopher Leigh Guidry, a/k/a “Hollywood” (28), and Vicki Stark-Fitts (49), used a firearm to murder James Lee Sedtal, a/k/a “Lil Bit,” in Liberty County, Texas. The defendants murdered Sedtal on behalf of SWS, after Sedtal assaulted an Aryan Brotherhood of Texas (ABT) associate. ABT was poised to retaliate against SWS, and Bourque, Guidry, Stanley, and Stark-Fitts sought to maintain and increase their position within SWS by murdering Sedtal.
According to court documents, the SWS is a race-based organization operating inside and outside of jails and prisons in Texas and elsewhere. SWS was founded during the 1990s by inmates within the Texas Department of Criminal Justice. SWS is also known as “Solid Wood Soldiers” and “Separate White State.” Although the founders established SWS for protection of white inmates and advancement of white supremacy and white separatism, SWS expanded its objectives to include illegal activities for profit, including trafficking methamphetamine and firearms. SWS protects its power, territory, and profits through intimidation and violence, including assaults, robbery, and murder.
From September 2010 to January 2011, SWS members manufactured “shake and bake” methamphetamine for distribution in the Orange County area of Texas. In February 2011, Bourque, Guidry and other SWS members became closely associated with Stark-Fitts, who supplied them with crystal methamphetamine and firearms. Crystal methamphetamine is a purer form of methamphetamine that is imported from Mexico. According to information presented in court, on Mar. 14, 2011, Stanley, Bourque, Guidrey and Stark-Fitts murdered James Lee Sedtal, a/k/a Lil Bit, in connection with the methamphetamine conspiracy.
Guidry, Bourque, and Stark-Fitts pleaded guilty this summer for their respective roles in the murder. Judge Crone sentenced Guidry to life in prison on October 4, 2013. Bourque and Stark-Fitts are awaiting sentencing. Bourque faces life in prison, and Stark-Fitts faces from 360 months to life in prison.
This case is being prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The case is being investigated by the ATF, FBI, U.S. Marshals Service, U.S. Secret Service, U.S. Bureau of Prisons, DEA, Texas Rangers, Department of Public Safety CID, Texas Department of Criminal Justice OIG, Orange County Sheriff’s Office, Hardin County Sheriff’s Office, Jasper County Sheriff’s Office, Tyler County Sheriff’s Office, Jefferson County Sheriff’s Office, and Beaumont Police Department, and is being prosecuted by Assistant U.S. Attorney John B. Ross.Richmond Man Sentenced to 34 Years on Robbery and Firearm Charges Relating to Three Separate RobberiesRead the Press Release
RICHMOND, Va. – Marion Carter, 58, of Richmond, Va., was sentenced today to 34 years in prison on three counts of robbery interfering with commerce and two counts of possessing a firearm in furtherance of those robberies.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Carl Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, made the announcement after sentencing by United States District Judge James R. Spencer.
On July 26, 2013, Carter was found guilty by a jury. According to the evidence presented at trial, Carter robbed three commercial businesses in less than three weeks. The first robbery took place on November 2, 2012, at the Baskin Robbins ice cream store on Forest Hill Avenue in Richmond. Carter, wearing a black mask to obscure his face, pointed a pistol at the clerk on duty and demanded money from the business. At one point, Carter asked the clerk if there was more money in the back of the store. When told there was not, Carter left with $113 he had stolen from the business.
Six days later, on November 8, 2012, Carter entered the Fast Auto Loans store on Midlothian Turnpike in Richmond, again wearing the black mask over his face. He displayed the gun again and told the clerks to put the money in the bag. Frustrated that the clerks were taking too long, he then threatened, "I'm not playing around, I will kill you." The money was placed in a grey Wal-Mart bag and he ran out of the door, taking with him $864 he had stolen from the business.
The third robbery took place on November 14, 2012 at the FasMart convenience store on Semmes Avenue. During that robbery, the store clerks ran to the back of the store and locked themselves in the back room. Carter left the store without any money.
The robber in each instance wore what appeared to be the same clothing, which seemed to match the clothing defendant was wearing at the time of his arrest. Evidence at trial included surveillance videos from the robberies and a cell tower data analysis by the FBI.
This case was investigated by the ATF and the Richmond Police Department, with assistance from the FBI. Assistant United States Attorney Peter Duffey and Assistant United States Attorney Heather Hart prosecuted this case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Richmond Man Sentenced to 21 Months for Failing to Report to Serve A Previously Imposed SentenceRead the Press Release
OAKLAND – Dontae Jerome Jones was sentenced today to 21 months in prison for failing to surrender to serve a previously imposed sentence, United States Attorney Melinda Haag announced.
Jones, 31, of Richmond, admitted in his plea agreement that he had been previously convicted of being a felon in possession of a firearm and ammunition and had been sentenced to 72 months in custody. Jones was allowed to voluntarily surrender to serve his sentence on November 5, 2012. Jones also admitted that he failed to report to serve his sentence as ordered, and he later evaded capture by the U.S. Marshals, who had located him at a residence in Vallejo, Calif. Jones was finally caught on April 29, 2013, in Vallejo by the Vallejo Police Department.
Jones was indicted by a federal grand jury on May 9, 2013. He pleaded guilty on August 12, 2013. The sentence was handed down by The Honorable Claudia Wilken, U.S. District Court Chief Judge. In addition to his prison term, Jones was also sentenced to a 3-year period of supervised release.
Brian C. Lewis is the Assistant U.S. Attorneys who is prosecuting the case with the assistance of Legal Assistant Janice Pagsanjan. The prosecution is the result of an investigation by the FBI, the U.S. Marshals, and the Vallejo Police Department.
(Jones indictment )
Peckville Man Sentenced for Online Enticement of MinorsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mark Kandel, age 53, was sentenced today in federal court in Wilkes-Barre by U.S. District Judge A. Richard Caputo to 174 months’ imprisonment to be followed by a lifetime term of supervised release upon the completion of imprisonment and will be subject to the registration and reporting requirements of the Adam Walsh Act.
According to United States Attorney Peter J. Smith, Kandel was indicted in December 2012 after he used the internet and a cellular device in attempts to persuade, induce, entice, and coerce minors to engage in sexual activity. Kandel pleaded guilty in June 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the FBI, the Lackawanna County District Attorney’s Office and the Blakely Police Department. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.
Norris Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeremy Eagle Bear, age 23, of Norris, South Dakota, appeared before U.S. District Judge Roberto A. Lange on October 24, 2013, and pled guilty to Sexual Abuse of a Minor.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund.
Around February 11, 2011, Eagle Bear, then 20 years of age, was at a house party in Norris and met the victim, age 13 at the time. Eagle Bear then engaged in sexual intercourse with the minor victim.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for January 13, 2013. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Michigan Felon Pleads Guilty to Illegal Firearm Possession ChargeRead the Press Release
HUNTINGTON, W.Va. – A 23-year-old Michigan felon faces up to 10 years in prison after pleading guilty to a federal firearm possession charge, announced U.S. Attorney Booth Goodwin. Deandrew Fizer III, of Romulus, Mich., pleaded guilty today before Chief United States District Judge Robert C. Chambers in Huntington. On June 7, 2013, officers with the Huntington Police Department responded to a burglary in progress call on Sycamore Street in Huntington. Police entered the residence and found Fizer in a bedroom with a .45 caliber pistol lying within his reach. Fizer, who was arrested, waived his Miranda rights and told police that he had possessed the firearm for approximately a week.
Fizer was previously convicted of felonious assault in June 2010 in the Third Judicial Circuit Court of Wayne County in Michigan. He did not have his rights to possess a firearm restored.
Fizer is scheduled to be sentenced on February 3, 2014.The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
The case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Mescalero Apache Man Pleads Guilty to Assaulting Sixteen-Month Old ChildRead the Press Release
ALBUQUERQUE – Alcario Emilio Provencio, 24, a member and resident of the Mescalero Apache Nation, pleaded guilty on Oct. 28, 2013, in Las Cruces federal court to assaulting a minor in Indian Country. Under the terms of the plea agreement, Provencio will be sentenced to 36 months of imprisonment followed by a term of supervised release to be determined by the court.
Provencio was arrested on April 15, 2013, on a criminal complaint charging him with assault resulting in serious bodily injury. According to the complaint, Provencio assaulted a 16-month old child who was in his care on Oct. 10, 2012, in a residence located on the Mescalero Apache Reservation. As a result of the assault, the victim sustained serious injuries including compression fractures of two vertebrae, retinal hemorrhaging, a fractured rib and numerous bruises on the head, face, neck and torso. Provencio was in tribal custody on tribal charges related to the assault until his arrest on federal charges.
On Friday, Provencio entered a guilty plea to a felony information charging him with assault of a person under the age of 16 resulting in substantial bodily injury. Provencio admitted assaulting the victim by intentionally striking the child, and acknowledged that the victim sustained substantial bodily injury as a result of the assault.
Provencio has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Medical Business Owner Pleads Guilty to Medicaid FraudRead the Press Release
ATLANTA – Jennifer C. Alsdorf has pleaded guilty to health care fraud for filing fraudulent claims with the Georgia Medicaid program.
“This defendant cheated the Medicaid program by sending in thousands of fraudulent claims for medical services that were never performed,” said United States Attorney Sally Quillian Yates. “We will continue to partner with the Georgia Attorney General’s Office in fighting the costly effects of health care fraud in this State.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Individuals who engage in extensive schemes to defraud healthcare fraud and compromise our publicly funded programs such as Medicare and Medicaid need to be identified and held accountable. With today's plea, Ms. Alsdorf will be held accountable for her criminal actions.”
“Fighting Medicaid fraud is a top priority for my office,” said Attorney General Sam Olens. “This case sends a strong message that we take every complaint received seriously, and we will aggressively investigate and prosecute those who overbill Medicaid.”
According to United States Attorney Yates, the charges and other information presented in court: Jennifer C. Alsdorf was the owner, President, and CEO of Hand in Hand Speech & Language Services, Inc. The medical business was located in Tampa, Fla. (and prior to 2005 in Vidalia, Ga.) and offered speech-language therapy services for children covered by Medicaid. Acting on behalf of Hand in Hand, Alsdorf contracted with speech-language pathologists to perform the services under independent contractor agreements. Alsdorf would bill Medicaid for the services provided by the pathologists, and then send a portion of the amount she received from Medicaid to them.
In the contracts, Alsdorf agreed to pay a set fee to the pathologists for each initial evaluation and each subsequent therapy visit rendered by the pathologists to Medicaid recipients. The fees that Alsdorf paid to the pathologists for those two services were based on the amounts that Medicaid reimbursed for the services.
After rendering services to patients, the pathologists would send Alsdorf treatment notes showing which patients they had seen, how long they had provided therapy, and which services they had provided. Alsdorf was supposed to use these notes to prepare the claims to submit to Medicaid. Unbeknownst to the speech-language pathologists, however, in addition to billing Medicaid for initial evaluations and therapy visits, Alsdorf also billed Medicaid for “sensory integration” therapy, a service the pathologists had not provided. Many of the pathologists did not even know what sensory integration therapy was and had never heard of such a service. Alsdorf did not send any of the money she received from Medicaid for this service to the pathologists. She instead kept all of the money she received for sensory integration therapy.
Alsdorf also submitted claims to Medicaid for patient visits that never occurred. She submitted claims under pathologists’ names for services during times when they were not working with Hand in Hand. She also submitted claims representing that the pathologists had treated certain patients when, in fact, the pathologists had never seen or treated the patients at any time. Alsdorf submitted thousands of fraudulent claims to Medicaid.
Alsdorf pleaded guilty to one count of health care fraud. The charge carries a maximum sentence of 10 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
As part of the plea agreement, Alsdorf has agreed to a restitution judgment of $200,000 to the Georgia Medicaid program, which includes forfeiture of a 2013 Mercedes Benz, thousands of dollars that were previously seized from two retirement accounts and a bank account, and two pieces of real estate located in Montgomery County, Ga.
Sentencing for Alsdorf, 44, of Tampa, Fla., is scheduled for January 8th, 2014, at 10:30 a.m. before United States District Judge Amy Totenberg.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and Investigators from the Georgia Medicaid Fraud Control Unit and the Georgia Department of Community Health.
Assistant United States Attorneys Stephen H. McClain and G. Jeffrey Viscomi, and Georgia Assistant Attorney General Henry A. Hibbert, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Man Sentenced for Receipt of Child PornographyRead the Press Release
BUFFALO, N.Y.—U.S. Attorney, William J. Hochul, Jr. announced that John Luchetti, 27, of Buffalo, N.Y., who was convicted of receipt of child pornography, was sentenced to 96 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was convicted of receipt of child pornography in connection with his possession of numerous images of child pornography, some depicting prepubescent minors, and some depicting sadistic or masochistic conduct, and his use of an Internet file-sharing program to receive and distribute the images.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Littleton Police Officer Pleads Guilty to Firearm and Drug Trafficking CrimesRead the Press Release
DENVER – Jeffery Allan Johnston, age 46, of Parker, Colorado, today pled guilty before U.S. District Court Judge Philip A. Brimmer to one count of being a prohibited person in possession of firearms and one count of possession with intent to distribute MDMA (commonly known as Ecstasy), and admitted the forfeiture allegation in the Information, United States Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. At the conclusion of the hearing Judge Brimmer ordered that he be immediately remanded into custody. Johnston is scheduled to be sentenced by Judge Brimmer on February 3, 2014.
Johnston was first charged by Criminal Complaint on July 19, 2013. He was arrested at his Parker home on July 22, 2013. He was charged by Information on August 15, 2013, where he waived his right to be indicted by a federal grand jury. He pled guilty today, October 28, 2013.
According to the stipulated facts in the plea agreement, as well as other court documents, in April 2012, a source told law enforcement that he (the source) attended a party at Johnston’s home. While at the party, the source claims he observed behavior consistent with the use of illegal drugs. On July 16, 2013, a source received a message from Johnston. In cooperation with the FBI, the source returned Johnston’s call and had a coded conversation about providing Johnston with MDMA. On July 19, 2013, the source, working with the FBI, traveled to Johnston’s residence. Through monitored and recorded calls before the meeting, the source had agreed to deliver 75 MDMA pills to Johnston. The source and Johnston then met at Johnston’s residence. The exchange of money and MDMA took place in the kitchen of the residence. Johnston received approximately 9.9 grams of MDMA, in the form of 37 pills and 6.3 grams of powder MDMA. Johnston paid the source $1,300 for the drugs. Following the transaction, Johnston was taken into custody and a federal search warrant was executed at the residence.
During the search agents found the MDMA used during the controlled exchange in a kitchen drawer. They also found a stainless steel Colt Officers Model .45 caliber pistol located in a small black bag, loaded with seven rounds in the magazine and one in the chamber located above the kitchen drawer that contained the drugs. Investigators eventually located a small amount of cocaine, steroids, hundreds of prescription pills, additional firearms, and hundreds of rounds of ammunition in the residence. They also found 8 other firearms, including an AR-15 and two 12 gauge shotguns. At all pertinent times, the defendant was employed as a sworn police officer.
Johnston faces not more than 10 years in federal prison, and a fine of up to $250,000 for being a prohibited person in possession of firearms (specifically an unlawful user of Schedule I controlled substances, MDMA, MDA and GHB while knowingly possessing multiple firearms). He also faces not more than 20 years in federal prison, and a fine of up to $1,000,000 for possession with intent to distribute MDMA (Ecstasy).
This case was investigated by the Federal Bureau of Investigation (FBI).
Johnston is being prosecuted by Assistant U.S. Attorneys David Conner and Guy Till.
####
Justice Department Obtains $167,500 in Discrimination Settlement with Reno, Nev., Apartment ComplexRead the Press Release
The Justice Department announced today that the U.S. District Court of Nevada has approved a settlement in which the owners and operators of Rosewood Park Apartments, a 902 unit apartment complex in Reno, Nev., will pay $167,000 to resolve a lawsuit alleging discrimination against persons with disabilities who use assistance animals.
Under the agreement, the defendants in United States v. Rosewood Park LLC et al., will pay a total of $127,500 to a family that was not allowed to move into the complex because one of the members of the household used an assistance animal and to the Silver State Fair Housing Council, a non-profit Nevada organization that assisted the family and conducted testing to investigate the rental practices at Rosewood Park. The defendants will also pay an additional $25,000 to compensate any other persons harmed by the defendants’ discriminatory policies, who are identified through a process established by the agreement, and will pay $15,000 to the government in civil penalties. The agreement also requires that defendants adopt and maintain a new policy regarding assistance animals, provide non-discrimination training to their employees and agree to record keeping and monitoring requirements for the terms of the agreement. The agreement has been approved by the U.S. District Court of Nevada, and takes the form of a consent order that can be enforced by the court.
The department’s complaint had alleged that the owners, employees and management company of Rosewood Park Apartments violated the Fair Housing Act by limiting individuals with certain assistance animals to a particular section of Rosewood Park Apartments; subjecting such individuals to pet fees; requiring assistance animals to be licensed or certified; and barring companion or uncertified service dogs altogether. The case began when a family that had sought housing at Rosewood Park and the Silver State Fair Housing Council filed complaints with the Department of Housing and Urban Development (HUD). HUD investigated the complaint, issued a charge of discrimination and referred the matter to the Department of Justice.
“The Fair Housing Act ensures that persons with disabilities searching for a home are protected from discrimination,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously protect the civil rights of persons with disabilities in Nevada and across the country.”
“Persons who think they have been discriminated against in housing issues should not hesitate to file a report with HUD,” said U.S. Attorney Bogden. “The U.S. Attorney’s Office, as part of the U.S. Department of Justice, works with HUD to ensure that companies that are treating disabled persons unfairly are punished, and that they adopt policies to prevent further discrimination.”
“Assistance animals play a vital role in helping people with disabilities conduct everyday activities and fully enjoy their homes,” said Bryan Greene, HUD's Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and DOJ will continue to enforce the Fair Housing Act's protections and ensure that housing providers do not illegally limit assistance animals.”
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/ . Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at hwww.justice.gov/crt/housing/ or www.hud.gov/fairhousing .
Justice Department Obtains $167,500 in Discrimination Settlement with Reno, Nev., Apartment ComplexRead the Press Release
WASHINGTON – The Justice Department announced today that the U.S. District Court of Nevada has approved a settlement in which the owners and operators of Rosewood Park Apartments, a 902 unit apartment complex in Reno, Nev., will pay $167,000 to resolve a lawsuit alleging discrimination against persons with disabilities who use assistance animals.
Under the agreement, the defendants in United States v. Rosewood Park LLC et al., will pay a total of $127,500 to a family that was not allowed to move into the complex because one of the members of the household used an assistance animal and to the Silver State Fair Housing Council, a non-profit Nevada organization that assisted the family and conducted testing to investigate the rental practices at Rosewood Park. The defendants will also pay an additional $25,000 to compensate any other persons harmed by the defendants’ discriminatory policies, who are identified through a process established by the agreement, and will pay $15,000 to the government in civil penalties. The agreement also requires that defendants adopt and maintain a new policy regarding assistance animals, provide non-discrimination training to their employees and agree to record keeping and monitoring requirements for the terms of the agreement. The agreement has been approved by the U.S. District Court of Nevada, and takes the form of a consent order that can be enforced by the court.
The department’s complaint had alleged that the owners, employees and management company of Rosewood Park Apartments violated the Fair Housing Act by limiting individuals with certain assistance animals to a particular section of Rosewood Park Apartments; subjecting such individuals to pet fees; requiring assistance animals to be licensed or certified; and barring companion or uncertified service dogs altogether. The case began when a family that had sought housing at Rosewood Park and the Silver State Fair Housing Council filed complaints with the Department of Housing and Urban Development (HUD). HUD investigated the complaint, issued a charge of discrimination and referred the matter to the Department of Justice.
“The Fair Housing Act ensures that persons with disabilities searching for a home are protected from discrimination,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously protect the civil rights of persons with disabilities in Nevada and across the country.”
“Persons who think they have been discriminated against in housing issues should not hesitate to file a report with HUD,” said U.S. Attorney Bogden. “The U.S. Attorney’s Office, as part of the U.S. Department of Justice, works with HUD to ensure that companies that are treating disabled persons unfairly are punished, and that they adopt policies to prevent further discrimination.”
“Assistance animals play a vital role in helping people with disabilities conduct everyday activities and fully enjoy their homes,” said Bryan Greene, HUD's Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and DOJ will continue to enforce the Fair Housing Act's protections and ensure that housing providers do not illegally limit assistance animals.”
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/. Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.justice.gov/crt/housing/ or www.hud.gov/fairhousing.Justice Department Announces Settlement Agreement with Everett, Wash., Battery Company to Protect Employment Rights of Returning Military ReservistRead the Press Release
The Department of Justice announced today that it has reached a settlement with All Battery Sales and Service (ABS) of Everett, Wash., to resolve a lawsuit it filed on behalf of Curtis Kirk, a U.S. Army reservist. The lawsuit alleged that the company violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by failing to properly reemploy Kirk in September 2010 after he returned from military service in support of Operation Iraqi Freedom. The lawsuit also alleged that the defendant unlawfully demoted and then terminated Kirk’s employment without proper cause. If approved by the court, the settlement would resolve the allegations that the defendant violated the reemployment rights of Kirk.
ABS is a wholesaler, distributor and retailer of battery products, parts and services. According to the complaint, filed in the U.S. District Court for the Western District of Washington, the defendant violated USERRA by not properly reemploying Kirk in a position as a front counter representative, or in a position with comparable seniority, status and pay. The defendant reemployed Kirk in a lower status position than the one he held when he left for active duty service, with fewer guaranteed working hours, a less lucrative commission and bonus structure and fewer opportunities for promotion. ABS later demoted Kirk further and terminated his employment without cause, also in violation of USERRA.
Under the terms of the settlement, ABS must pay Kirk $37,500 to compensate him for lost or reduced wages and benefits. Among other things, the settlement also requires the defendant to provide training to ABS’ high-level officials and human resources staff on the USERRA rights and obligations of employers and covered employees.
“Employers have a legal obligation to ensure service members get their jobs back when they return from military duty as required by law,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Civil Rights Division is committed to protecting the rights of those who, through their courage and sacrifice, secure the rights of all Americans.”
“Just as our dedicated men and women of the military protect our freedoms overseas, we must protect their interests here at home,” said U.S. Attorney Jenny A. Durkan. “These soldiers have made many sacrifices, and the loss of a career or the job they are entitled to when they return home cannot be allowed. The U.S. Attorney’s Office is committed to enforcing the laws that protect the rights of those brave men and women who serve our country proudly.”
Subject to certain conditions, USERRA requires employers to promptly reemploy returning service members in the positions they would have held had their employment been not interrupted by military service or in a position of like seniority, status and pay. In addition, any individual with Kirk’s length of absence for military service who is reemployed cannot be terminated within one year after the date of full and proper reemployment except for just cause.
The case was litigated by Assistant U.S. Attorney J. Michael Diaz in the U.S. Attorney’s Office for the Western District of Washington, in collaboration with Andrew Braniff, USERRA/USAO Program Coordinator, in the Employment Litigation Section of the Civil Rights Division of the Justice Department.
The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov , as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm .
Justice Department Announces Settlement Agreement with Everett, Wash., Battery Company to Protect Employment Rights of Returning Military ReservistRead the Press Release
WASHINGTON - The Department of Justice announced today that it has reached a settlement with All Battery Sales and Service (ABS) of Everett, Wash., to resolve a lawsuit it filed on behalf of Curtis Kirk, a U.S. Army reservist. The lawsuit alleged that the company violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by failing to properly reemploy Kirk in September 2010, after he returned from military service in support of Operation Iraqi Freedom. The lawsuit also alleged that the defendant unlawfully demoted and then terminated Kirk’s employment without proper cause. If approved by the court, the settlement would resolve the allegations that the defendant violated the reemployment rights of Kirk.
ABS is a wholesaler, distributor and retailer of battery products, parts and services. According to the complaint, filed in the U.S. District Court for the Western District of Washington, the defendant violated USERRA by not properly reemploying Kirk in a position as a front counter representative, or in a position with comparable seniority, status and pay. The defendant reemployed Kirk in a lower status position than the one he held when he left for active duty service, with fewer guaranteed working hours, a less lucrative commission and bonus structure and fewer opportunities for promotion. ABS later demoted Kirk further and terminated his employment without cause, also in violation of USERRA.
Under the terms of the settlement, ABS must pay Kirk $37,500 to compensate him for lost or reduced wages and benefits. Among other things, the settlement also requires the defendant to provide training to ABS’ high-level officials and human resources staff on the USERRA rights and obligations of employers and covered employees.“Employers have a legal obligation to ensure service members get their jobs back when they return from military duty as required by law,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Civil Rights Division is committed to protecting the rights of those who, through their courage and sacrifice, secure the rights of all Americans.”
“Just as our dedicated men and women of the military protect our freedoms overseas, we must protect their interests here at home,” said U.S. Attorney Jenny A. Durkan. “These soldiers have made many sacrifices, and the loss of a career or the job they are entitled to when they return home, cannot be allowed. The U.S. Attorney’s Office is committed to enforcing the laws that protect the rights of those brave men and women who serve our country proudly.”
Subject to certain conditions, USERRA requires employers to promptly reemploy returning service members in the positions they would have held had their employment been not interrupted by military service or in a position of like seniority, status and pay. In addition, any individual with Kirk’s length of absence for military service who is reemployed cannot be terminated, within one year after the date of full and proper reemployment except for just cause.
The case was litigated by Assistant U.S. Attorney J. Michael Diaz in the U.S. Attorney’s Office for the Western District of Washington, in collaboration with Andrew Braniff, USERRA/USAO Program Coordinator, in the Employment Litigation Section of the Civil Rights Division of the Justice Department.
The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.