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23 October 2013
Louisiana Sergeant Pleads Guilty to Assault of DetaineeRead the Press Release
The Justice Department announced that former Jefferson Parish, La. Sheriff’s Office Sergeant Gary J. Shine pleaded guilty today before Federal District Court Judge Ivan L.R. Lemelle to assaulting a detainee at the Jefferson Parish Correctional Center in Gretna, La., thereby depriving the detainee of his civil rights.
During the plea hearing, Shine admitted that on Oct. 21, 2012, while he was working as a sergeant, he struck an inmate with his knee, while the inmate’s hands were cuffed behind his back. Shine admitted that he also punched the inmate in the head. Shine’s actions caused bruising. Shine acknowledged that the inmate did not pose a threat to Shine or any other person, and that there was no legal justification for Shine to strike the inmate.
“It is a federal crime for law enforcement officers to willfully use excessive force,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “Today’s guilty plea demonstrates the Justice Department’s commitment to ensuring that official misconduct is addressed fully and fairly.”
“The vast majority of our law enforcement officials serve with honor and integrity,” said Kenneth Polite, U.S. Attorney for the Eastern District of Louisiana. “However, when someone abuses the power and privileges of his office, as Gary Shine did here, he will be held accountable.”
At sentencing, which is set for Jan. 22, 2014, Shine faces a statutory maximum sentence of 10 years of incarceration.
This case was investigated by the FBI and was prosecuted by Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Stephen C. Parker for the Eastern District of Louisiana.
Kideys Sentenced to 60 Months and 1.4 Million RestitutionRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
Ian T. Kideys, 49, of La Jolla, California, was sentenced by District Judge Robert L. Miller Jr. to 60 months of imprisonment, 3 years of supervised release and $1.4 million in restitution after pleading guilty to the felony offense of wire fraud.Kideys was also sentenced in a separate matter to 60 months of imprisonment after pleading guilty to bankruptcy fraud. Both sentences will run concurrently.According to documents filed in this case, from 2009 through 2010, in the wake of the real estate market collapse, Ian Kideys operated US Mortgage Bailout and US Mortgage Bailout.com, which sought out mortgage loan modification business from internet users. US Mortgage Bailout made a variety of false representations while obtaining customers, including that it had attorneys on staff, had helped thousands of homeowners avoid foreclosures, and succeeded in obtaining loan modifications for its customers 90 percent of the time. US Mortgage Bailout obtained some mortgage relief for its customers through fraudulent representations to lenders, but otherwise simply collected money — thousands of dollars from each customer. Each customer received a money-back guarantee; few got any money back. Mr. Kideys also defrauded creditors and the U.S. Trustee in his personal bankruptcy case by leading them to believe he had deposited $283,000 and concealing his receipt of $228,721.28. This case was the result of an investigation by the Department of Housing and Urban Development.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Jury Convicts Columbia Man of Illegally Possessing FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was convicted in federal court today of illegally possessing a firearm.
Victor Lee McNeary, Jr., 38, of Columbia, was found guilty of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that McNeary was in possession of a Smith & Wesson .380-caliber handgun on Dec. 11, 2011. According to court documents, Columbia police officers responded to a disturbance at Swan Lake Restaurant, 10 Southampton Drive, at approximately 1 a.m. on that day. An officer was informed that McNeary had been in possession of a handgun but had left the scene. Officers found McNeary at a McDonald’s restaurant and questioned him about the disturbance. When an officer searched McNeary and found the handgun in his coat pocket, McNeary was arrested.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McNeary has six prior felony convictions for robbery, two prior felony convictions for armed criminal action, two prior felony convictions for tampering and a prior felony conviction for attempted burglary.
According to a witness, McNeary started a fight inside the club and was escorted out. He started another fight in the parking lot that was broken up, and McNeary was told to leave. Instead, McNeary tried to run back into the club and tried to pick a fight with one of the security members. McNeary started walking towards his Cadillac that was parked across the street and continued to yell and scream, along with his girlfriend who was also yelling and screaming. As McNeary got closer to his car he started yelling that he was going to get a gun. McNeary entered the vehicle through the passenger side and pulled a small black semi-automatic handgun from the vehicle. McNeary left shortly after by himself and the police were called.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for more than four hours over two days before returning the guilty verdict to U.S. District Judge Gary A. Fenner, ending a trial that began Monday, Oct. 21, 2013.
Under federal statutes, McNeary is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Boone County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
Jerseyville Man Charged with Commercial Sex Trafficking of A ChildRead the Press Release
A Federal Grand Jury has returned a two-count indictment against Timothy S. Griesemer, 39, of Jerseyville, Illinois charging him with Commercial Sex Trafficking of a Child and Inducement of a Child to Engage in Prostitution, United States Attorney Stephen R. Wigginton announced today. The alleged violations took place on October 10, 2013 in Jersey County. Griesemer had been charged in a two-count federal Criminal Complaint for the alleged offenses on October 11, 2013. The Court has ordered that Griesemer be held without bond pending trial.
The offenses charged in the indictment allege that, on or about October 10, 2013, Griesemer attempted to recruit, induce, entice and obtain a child under the age of 14 years knowing that the person would be caused to be engaged in a commercial sex act.
A trial date is set for December 2, 2013. If convicted of Commercial Sex Trafficking of a Child, Griesemer faces a term in prison of not less than fifteen (15) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life. If convicted of Inducement of a Child to Engage in Prostitution, Griesemer faces a term in prison of not less than ten (10) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This investigation was conducted by the Illinois State Police, the Jerseyville Police Department and the United States Secret Service Southern Illinois Cyber-Crime Unit. The case is assigned to Assistant United States Attorney Ali Summers.
International Wildlife Investigation results in conviction of Haines Big Game Guide for illegal take, false labeling and illegal importation of wildlifeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Haines, Alaska, resident was sentenced in federal court in Juneau on five felony Lacey Act counts involving illegal take of wildlife, false labeling, and illegal importation of wildlife.
Ronald L. Martin, 72, of Haines, Alaska, a big game guide in Haines for over 30 years, pled guilty and was sentenced yesterday before U.S. District Court Judge Timothy M. Burgess, after admitting to multiple illegal hunts, falsification of numerous documents related to those illegal hunts and the importation of illegal wildlife from Canada into the United States. Martin was sentenced to pay a $40,000 fine and was placed on probation for four years. During the term of probation, Martin cannot hunt in the United States and is banned from hunting anywhere in the world for two years. Additionally, the plea agreement bars Martin from providing any guiding related services as part of his federal probation conditions. Martin was also ordered to forfeit all illegal wildlife seized in the investigation and a 27’ enclosed trailer used in illegally importing wildlife into the U.S.
Prior to the defendant’s plea in federal court, Martin had pled and was sentenced in Alaska State court on one count of guiding clients for brown bear over bait, and one count of guiding clients over an unregistered bear bait site. As part of that State conviction, Martin was fined $40,000 with $30,000 suspended, and forfeited the following items to the State of Alaska: a PA-18 Piper Supercub airplane, a F250 Ford pickup truck, a Honda ATV – Foreman, and a Kimber .338 Caliber rifle with a Leopold Scope. Martin’s hunting license was also revoked until May 2016 and he is prohibited from guiding, outfitting, or transporting hunters, to include not accompanying or assisting hunters in the field. Martin is further prohibited from acting as consultant, expediting, booking, or renting hunting equipment, and cannot apply for a hunting license until 2018. Martin was also required to surrender his guide license for life.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the federal case, the case arose from a joint United States-Canadian wildlife investigation called “Operation Bruin.” The investigation documented 10 illegal brown bear hunts, three illegal black bear hunts, and four illegal mountain goat hunts totaling a value of approximately $189,000. The violations which occurred during the hunts involved Martin allowing his Canadian and U.S. clients to take brown bears over bait, hunting without the required licenses or tags, and the failure to have a licensed guide with the non-resident alien clients during guided hunts.
The investigation revealed that Martin’s clients and Martin would file false documents to conceal the illegal nature of the guided hunts and would then smuggle the wildlife from the U.S. to Canada, all of which violated the Lacey Act and Canada’s Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA). The investigation showed the violations occurred between May 2002 through November 2011, in and around the Haines, Alaska area.
The investigation also documented that Martin illegally imported Dall sheep from Yukon, Canada, into the U.S. during the fall of 2011 by failing to obtain a Yukon Wildlife Export permit and illegally smuggled the sheep horns from Canada into the U.S. by concealing the horns and meat in his trailer.
Recently in Operation Bruin, Haines big game guide John Katzeek and three of his Canadian clients were indicted in U.S. District Court for the District of Alaska. The four individuals were charged with Lacey Act, conspiracy and smuggling violations related to the illegal take, commercialization and smuggling of Alaska big game animals.
Starting in November 2012, Environment Canada and Canadian Crown prosecutors in Alberta, and Yukon Territory, Canada, charged approximately 17 subjects with 55 violations under the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. These charges pertained to the illegal guided hunts noted previously, and the illegal import of unlawful wildlife from the U.S. into Canada.On March 22, 2013, Lyle Whitmarsh, a client of Martin, was convicted in Alberta provincial court of one count of illegally possessing and importing a brown bear into Canada. Whitmarsh was sentenced to pay a penalty of $4,000 for violating section 6(1) of the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. In addition to the $4,000 penalty, Lyle Whitmarsh is prohibited for two years of importing wildlife into Canada and is also required to forfeit the brown bear hide and skull seized during the investigation. $3,600 of the penalty will go into the Environmental Damages Fund (EDF).
On October 16, 2013, John (Jack) Whitmarsh, brother of Lyle and a client of Martin’s, was also convicted in Canada of two counts of illegally possessing and importing into Canada a brown bear. John Whitmarsh was sentenced to pay a penalty of $15,000 for violating section 6(1) and 8(a) of the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. In addition to the $15,000 penalty, John Whitmarsh is prohibited for two years of importing wildlife into Canada and traveling outside of Alberta and Canada for the purposes of hunting. He is also required to forfeit the brown bear hide and skull seized during the investigation. $13,500 of the penalty will go into the Environmental Damages Fund (EDF).
Some trial dates have been set for the remaining 15 Canadian defendants charged under Canadian law.
Stanley Pruszenski, the U.S. Fish & Wildlife Service Special Agent in Charge of the Alaska Region, congratulates all the agencies involved in the successful investigation and prosecution of the large scale abuses of U.S. and international wildlife law in this case. The Fish and Wildlife Service is committed to protecting America's wildlife resources that are at risk from illegal take, commercialization, and smuggling. This case is an excellent example of how these types of investigations and prosecutions can only be successfully accomplished with cooperation and close working relationships between our U.S. and international partners.Ms. Loeffler commends the U.S. Fish and Wildlife Service, Alaska Wildlife Troopers; Environment Canada Wildlife Enforcement Directorate; Yukon Conservation Officer Service; Alberta Fish and Wildlife; Parks Canada; British Columbia Conservation Officer Service and the Public Prosecution Service of Canada for their investigative work in the prosecution of Martin.
Indictment: Wichita Man Transported Child Pornography Across State LinesRead the Press Release
KANSAS CITY, KAN. - A Wichita truck driver has been charged in federal court with transporting child pornography across state lines, U.S. Attorney Barry Grissom said today.
Joshua David Bellah, 40, Wichita, Kan., is charged with one count of interstate transportation of child pornography. The crime is alleged to have occurred Oct. 11, 2013, when he drove from Oklahoma to Kansas with two laptop computers containing child pornography.
Bellah initially was charged in a criminal complaint filed Oct. 15 in U.S. District Court. An affidavit supporting the complaint alleged the investigation began when Immigration and Customs Enforcement’s Homeland Security Investigations received information from the National Center for Missing and Exploited Children, the Dallas Police Department, the FBI and HSI. Investigators learned that Bellah had created various email accounts using free services including Yahoo. He used one or more email accounts to exchange and distribute child pornography for a brief time before abandoning the accounts and creating a new one for the same purpose.On Oct. 11, 2013, investigators executed a search warrant at his home and seized three laptops, a smartphone, two USB drives and several disks. They found child pornography depicting victims who appeared to be as young as five years old.
If convicted, he faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000. Immigration and Customs Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER INDICTMENTS
Hunter R. Wheeler, 23, who is in federal custody, is charged with three counts of distributing methamphetamine, one count of possession with intent to distribute methamphetamine, and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to haveoccurred in September and October 2013, in Douglas County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $8 million on each distribution count, a penalty of not less than 10 years and not more than life on the charge of possession with intent to distribute more than 50 grams of methamphetamine, and a penalty of not less than five years on the charge of unlawful possession of a firearm. The Lawrence Police Department investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Michael A. Rehard, 25, is charged with one count of distributing methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in July and October 2013 in Overland Park, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million on the distribution count and on the possession count, and a penalty of not less than five years and not more than life and a fine up to $250,000 on the firearm charge. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Abelardo Fernandez-Casas, 38, Pratt, Kan., is charged with one count of possession of an unlawfully obtained Social Security card, one count of using a false Social Security number, and one count of making false statements in order to obtain a loan from the People’s Bank of Pratt, Kan. The crimes are alleged to have occurred in 2009 and 2012 in Pratt, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the charge of possessing an unlawfully obtained Social Security card, a maximum penalty of five years and a fine up to $250,000 on the charge of using a false Social Security number, and a maximum penalty of 30 years and a fine up to $1 million on the charge of making false statements to obtain a loan. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Raul Marquez-Ramirez-Ramirez, 57, Wichita, Kan.; Angel L. Lopez, 30, Wichita, Kan.; Emma Velo, 32, Wichita, Kan.; and Tyler Sims, 30, Wichita, Kan., are charged with one count of conspiracy to distribute methamphetamine. In addition, Marquez-Ramirez is charged with three counts of distributing methamphetamine, one count of possession with intent to distribute marijuana and one count of unlawful possession of a firearm in furtherance of drug trafficking; Lopez is charged with three counts of distributing methamphetamine; and Velo is charged with one count of possession with intent to distribute marijuana and one count of unlawful possession of a firearm in furtherance of drug trafficking.
Upon conviction, the crimes carry the following penalties: Conspiracy: Not less than 10 years and not more than life and a fine up to $10 million.
Distribution of more than 50 grams of methamphetamine: Not less than 10 years and not more than life and a fine up to $10 million.
Distribution of more than five grams of methamphetamine: Not less than five years and not more than 40 years and a fine up to $5 million on each count.
Possession with intent to distribute more than five grams of methamphetamine: Not less than five years and not more than 40 years and a fine up to $5 million on each count.
Possession with intent to distribute marijuana: Not less than five years and not more than 40 years and a fine up to $5 million on each count.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
The Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Kyle Lennin, 28, who is in custody in the Shawnee County Jail, is charged with one count of conspiracy to distribute methamphetamine and one count of threatening a prospective federal witness. The conspiracy is alleged to have taken place from February to March 2012 in Saline County, Kan., and the threat is alleged to have occurred Aug. 29, 2013.
If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million on the conspiracy count, and a penalty of not less than 20 years and a fine up to $250,000 on the charge of threatening a prospective witness. The Salina Police Department investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Jason A. Young, 28, is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking, one count of possession with intent to distribute marijuana, and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred July 27, 2013, in Kansas City, Kan.
If convicted, he faces a penalty of not less than five years in federal prison and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking, a maximum penalty of five years and a fine up to $250,000 on the marijuana charge, and a maximum penalty of 10 years and a fine up to $250,000 on the remaining firearm charge.
The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Indictment Charges Cop and Former Cop in Civil Rights CaseRead the Press Release
An indictment, unsealed today, charges former Philadelphia Police Officer Joseph Harvey, 39, of Philadelphia, PA, with deprivation of civil rights under color of law, and Philadelphia Police Officer Sean Cahill, 34, of Philadelphia, PA, with making a material false statement, announced United States Attorney Zane David Memeger. Both defendants were arrested this morning.
According to the indictment, Harvey, while acting under color of law as a police officer with the Philadelphia Police Department, instructed M.C. to remove all of her clothing, thereby willfully depriving M.C. of the right, secured and protected by the United States Constitution and the law of the United States, to be free from an unreasonable seizure by a police officer. The indictment further alleges that defendant Cahill falsely claimed that he was with Harvey, and that Harvey was never alone with M.C. at the time that M.C. alleged she was instructed by Harvey to undress.
If convicted, Harvey faces a maximum term of one year in prison, a $100,000 fine, and a $100 special assessment; Cahill faces a maximum term of five years in prison, a $250,000 fine, up to three years’ supervised release, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department Internal Affairs Bureau, with assistance from the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Michelle L. Morgan, and Trial Attorney Sheldon Beer of the United States Department of Justice, Civil Rights Division, Criminal Section.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Harrisburg Man Charged Federally for Attempting to Arrange Son’s Escape from PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment today charging William Trickett Smith, Sr., age 76, with attempting to arrange a prison escape, lying to federal agents about it, and trying to persuade someone else to lie to federal agents.
According to United States Attorney Peter J. Smith, the charges stem from events surrounding the arrest and extradition of the defendant’s son, William Trickett Smith, II. In 2007, Smith II was arrested in Pennsylvania, and charged in Peru for the murder of his wife. Peruvian authorities sought his extradition.
The indictment alleges that during 2009 and 2010, Smith Sr., Harrisburg, devised a plan to have his son escape from custody after Smith Sr. filed a false private criminal complaint by paying off a magisterial district justice to schedule a hearing that would require Smith II to be transported and paying off a constable who would be picked to transport him. The Indictment alleges that when the plan failed because the criminal complaint was not approved by the district attorney, Smith Sr. then allegedly devised another plan for his son’s escape by paying off a prison guard. That plan also failed because Smith II was moved to a different prison. The indictment alleges that in 2010, Smith Sr. lied about his plans and actions when questioned by the Federal Bureau of Investigation and also tried to persuade another individual to lie to the FBI about Smith Sr.’s actions.
The case was investigated by the Federal Bureau of Investigation, the United States Marshals Service, the Dauphin County District Attorney’s Office, the Pennsylvania Department of Corrections-Office of Professional Responsibility and the Perry County Prison. The case is being prosecuted by Assistant U.S. Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Group of Five Charged in $200 Million Tax Fraud SchemeRead the Press Release
PHILADELPHIA – A superseding indictment, charging five people in a complex, multi-million dollar tax fraud scheme, was unsealed today following the arrest of one of the defendants. The indictment alleges that the conspirators caused more than $200 million in losses to the United States through a massive scheme. Named in the 49-count indictment are: Samyak Veera, 39, of Singapore, Aviel Faliks, 39, of New York City, Chandrakant Shah, 65, of India, Donald Stevenson, 56, of North Palm Beach, Florida, and Eric Merl, 61, address unknown. Faliks was arrested this morning in New York City. John Ivsan, 44, Andrew Ahn, 39, and Helen Del Bove, 53, have pleaded guilty in related cases and are awaiting sentencing. The indictment and informations filed against these defendants were also unsealed today. The charges were announced by United States Attorney Zane David Memeger, Assistant Attorney General for the Department of Justice Tax Division Kathryn Keneally, and Chief of the Internal Revenue Service Criminal Investigations Richard Weber.
The defendants named in the superseding indictment are charged with conspiracy to defraud the United States, conspiracy to commit wire fraud, and corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws. In addition to those charges, Veera is also charged with 11 counts of tax evasion and 19 counts of wire fraud; Faliks is also charged with five counts of tax evasion and eight counts of wire fraud; Shah is also charged with 11 counts of tax evasion; and Merl is also charged with four counts of making materially false statements to government officials. The indictment contains a notice of forfeiture for up to $150 million from Veera and Faliks.
Between at least 2003 and 2011, the defendants allegedly designed and implemented a scheme to evade more than $200 million in corporate taxes by purchasing companies with taxable gains and using fraudulent losses to wipe out the gains. The defendants then allegedly pocketed the corporations’ cash, filed fraudulent returns, and, in some instances, fraudulently sought and obtained refunds from the IRS for prior years. According to the superseding indictment, the defendants implemented their fraud scheme through four basic steps: (1) initial purchasers - including MidCoast Financial Inc., a company owned by Chandrakant Shah and operated by Samyak Veera - purchased target corporations with cash assets and large anticipated corporate income tax liabilities; (2) the initial purchasers next transferred these target corporations to straw buyers controlled on paper by Andrew Ahn and Aviel Faliks; (3) the defendants then evaded the corporations' income taxes through the use of fraudulent transactions designed to create the illusion that the corporations had incurred capital and ordinary losses; and (4) finally, the defendants distributed proceeds of the scheme through disguised means.
Defendant Donald Stevenson was the head of the acquisition team at MidCoast Financial and its successor and allegedly led the effort to identify ripe targets for the conspiracy. Helen Del Bove provided bookkeeping services to Veera, Ahn, and Faliks, tracking the target corporations purchased, the gains that needed to be eliminated, and the losses used to wipe them out. She allegedly provided this information to a tax return preparer so that the false returns could be prepared and filed. It is further alleged that Del Bove attempted to destroy key evidence after the IRS began to investigate the transactions. Eric Merl and John Ivsan both served as counsel to Veera and MidCoast Financial and other entities used to implement the fraud. Later, after the IRS began to look into MidCoast Financial's transactions, it is alleged that Merl and Stevenson started and operated Private Capital Resource Group Inc. (PCRG), a new company to carry on the scheme. Aviel Faliks allegedly served as the straw buyer of the target corporations identified by PCRG, but he also played an instrumental role in setting up the fraudulent options transactions used to wipe out the corporations' gains.
If convicted of all charges, the sentencing guidelines call for a minimum sentence of at least 188 months imprisonment for Veera, Shah, and Stevenson, at least 151 months for Faliks, and at least 121 months for Merl. For Ivsan, Ahn, and Del Bove, the maximum years of imprisonment are ten years, eight years, and three years, respectively.
The case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Patrick J. Murray and Nancy E. Potts, and Tax Division Trial Attorney Andrew P. Young.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Goodwin Urges Public to Continue Prescription Drug Fight in Seventh Federal Takeback EventRead the Press Release
Latest installment of highly successful take-back initiative set for Saturday, October 26, 10 a.m. to 2 p.m.
CHARLESTON, W.VA. - U.S. Attorney Booth Goodwin today asked West Virginians to continue their overwhelming support for the federal Prescription Drug Take-Back initiative, which so far has removed more than 11 tons of unwanted prescription drugs from homes and medicine cabinets in the Mountain State, and more than 1,409 tons nationwide. The seventh national Prescription Drug Take-Back event is scheduled for Saturday, October 26, 2013, from 10 a.m. to 2 p.m. Begun in September 2010 as a way to fight the scourge of prescription drug abuse in West Virginia and around the country, the Prescription Drug Take-Back program is organized by federal law enforcement authorities in cooperation with state and local police departments in all 50 states.
With the latest installment of the take-back initiative set to kick off, U.S. Attorney Goodwin looked back at the progress made over the past three years. “When we started this event in 2010, we didn’t know what to expect,” Goodwin said. “We saw the need for a place to dispose of unwanted prescription drugs, but the response was hard to predict. In the three years since, West Virginians and Americans have stepped up beyond our wildest expectations. Through these take-back events, tens of thousands of West Virginians are doing their part to fight prescription drug abuse---our state’s worst crime problem.”
“From zero to more than 1,409 tons nationwide in three years is a remarkable accomplishment,” Goodwin continued. “Those of us who were there at the beginning are thrilled by how far this has come, and we welcome the many public officials who’ve decided they want to be part of the success.”
“I’ve prosecuted over 250 drug dealers since taking office,” Goodwin said. “But I’ve always said we can’t simply prosecute our way out of this problem. It’s essential to stop people from becoming addicted in the first place, and addicts often get started with pills that have been forgotten in a friend or relative’s medicine cabinet.”
The Prescription Drug Take-Back initiative is coordinated by the United States Drug Enforcement Administration, an agency of the United States Department of Justice.
Saturday from 10 a.m. to 2 p.m., West Virginians can drop off their unwanted prescription drugs at more than 130 drop-off locations statewide, including police stations, designated shopping centers, and local pharmacies. At all locations, drop-offs are accepted with no questions asked. For a full list of take-back locations, go to www.dea.gov.
Fourteen Indicted for Deliberately Defrauding Federal Unemployment Insurance ProgramRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that fourteen individuals were indicted on October 23, 2013, by a federal Grand Jury. The indictments charge each person with, among other things, Embezzling Public Funds, namely unemployment insurance payments administered by the Illinois and Missouri Departments of Employment Security. The total amount of fraudulent overpayments alleged in the 14 indictments is $351,005.87.
“Cheating on unemployment compensation is a crime," said United States Attorney Wigginton. "Those who defraud the unemployment insurance program undermine support for an important public program and hurt and insult every law-abiding citizen of Southern Illinois. No person is above the law, thus I will continue my efforts to see that persons who defraud the United States of America, and all of us, are made to face justice."
The individuals charged include: Elizabeth Asbury, 41, of Hartford
Clarence Budde III, 41, of New Baden
Gary Cuddy, 31, of Olney
Sheila Davison, 45, of Cahokia
Steven Gordon, 39, of Effingham
Michael Hill, 48, of East St. Louis
Trudie Lindsey, 56, of East St. Louis
Kenneth Loving, 42, of East St. Louis
Melonetria McCallum, 37, of O’Fallon
Robert Pickett, 43, of Venice
Quintin Redd, 46, of Fairview Heights
Regina Skjerseth, 43, of Sage Creek
Rickey Watson, 48, of Belleville
Nicholas Zezoff, 41, of Granite CityThese cases were investigated by the U.S. Department of Labor and the Illinois Department of Employment Security and the Missouri Division of Employment Security, and are being prosecuted by Special Assistant United States Attorney Stuart J. Zander.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Founder and Leader of SSB Bloods Gang Pleads Guilty to Racketeering and Is Sentenced to 30 Years in PrisonRead the Press Release
Founded the Gang and Directed Gang Activities While Incarcerated
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Andre Ricardo Roach, a/k/a “Squeaky,” “Redrum,” and “Rum,” age 35, of Prince George’s County, Maryland, today to 30 years in prison, followed by three years of supervised release, after Roach pleaded guilty to conspiracy to participate in a racketeering enterprise, the South Side Brims (SSB) Bloods gang. Roach admits that in 2005, he founded the SSB gang, which operates from Western Maryland to the lower Eastern Shore. This case is the culmination of a long-term joint investigation by federal, state and local authorities throughout Maryland.
The guilty plea and sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Secretary Gary Maynard of the Maryland Department of Public Safety and Correctional Services; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Frederick County Sheriff Charles A. “Chuck” Jenkins; Captain Thomas J. Ledwell, Chief of the Frederick Police Department; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief William J. McMahon of the Howard County Police Department; Anne Arundel County Police Chief Kevin Davis; Annapolis Police Chief Michael A. Pristoop; Chief Ross C. Buzzuro of the Ocean City Police Department; Chief Michael Phillips of the Fruitland Police Department; Garrett County Sheriff Robert E. Corley; Allegany County Sheriff Craig Robertson; Cumberland Police Chief Charles H. Hinnant; Washington County Sheriff Douglas Mullendore; Dorchester County Sheriff James W. Phillips; Queen Anne’s County Sheriff R. Gary Hofmann III; Wicomico County Sheriff Michael A. Lewis; Worcester County Sheriff Reggie T. Mason, Sr.; Salisbury Police Chief Barbara Duncan; Chief Mark A. Magaw of the Prince George’s County Police Department; Wicomico County State’s Attorney Matthew Maciarello; Frederick County State’s Attorney J. Charles Smith; Baltimore City State’s Attorney Gregg L. Bernstein; Washington County State’s Attorney Charles P. Strong, Jr.; Garrett County State’s Attorney Lisa Thayer Welch; Allegany County State’s Attorney Michael O. Twigg; and Queen Anne’s County State’s Attorney Lance G. Richardson.
According to Roach’s plea agreement, in 2005, a member of a Bloods subgroup or set called the Fruit Town Brims, was incarcerated in the Maryland Division of Corrections. This Bloods member recruited Roach to join this sub-set. Roach, who was also incarcerated, moved up in the gang hierarchy and in June 2005, was granted permission to start a new set in Maryland called the South Side Brims. It was common for Roach to send out open letters to the entire set through Monique Marie Hagler, a/k/a “Platinum,” “Plat,” and “Diamond,” who operated as the First Lady of the SSBs Enterprise in Maryland. In these written communications, Roach directed the activities of the SSBs Enterprise and served as the leader/organizer and founder of the Enterprise.As First Lady, Hagler took direction from Roach and sent out orders and commands to the SSB members. Hagler operated as the official record keeper, and maintained and disseminated lists identifying members of the organization. During the course of the conspiracy, Roach coordinated regularly with Hagler and others to maintain the illegal activities, promote the business of the enterprise and maintain discipline and order within the SSBs. For example, Hagler sent communications to gang members demanding payment of dues used to support members of the SSB enterprise and their activities, including criminal defense lawyers, firearms, bail and to assist gang members recently released from prison to help them get on their feet.
Roach admitted that during the course of the conspiracy he and other SSBs conspired to distribute controlled substances, including cocaine, heroin, marijuana, ecstacy, and diverted pills, to customers of the SSBs in Frederick County, Howard County, Anne Arundel County and Queen Anne County, and other locations in Maryland. Roach and his co-conspirators used cellular telephones to conduct the narcotics trafficking. The amount of controlled substances reasonably foreseeable to Roach during the conspiracy is between five and 15 kilograms of cocaine.
During the course of the conspiracy, Roach, along with other SSB members and associates, participated in the planning and commission of several violent acts in furtherance of the SSBs enterprise, including a murder, several attempted murders, home invasion robberies, witness intimidation, violence against gang members who violated gang rules and other acts of violence.
Thirty four SSB members and associates, including Roach and Monique Hagler, age 29, of Suitland, Maryland, have pleaded guilty to their roles in the conspiracy. Hagler is awaiting sentencing, but 30 defendants have been sentenced, with sentences ranging from time served to 30 years in prison.
United States Attorney Rosenstein praised the FBI; Maryland State Police; ATF; Delaware State Police; Baltimore City, Baltimore County, Cumberland, Frederick, Howard County, Prince George’s County, Salisbury, Fruitland, Annapolis, Anne Arundel County and Ocean City Police Departments; Allegany County Sheriff’s Office; Allegany County Criminal Investigations; the Frederick, Washington, Queen Anne’s, Dorchester, Wicomico and Worcester County Sheriffs Offices; and the State’s Attorney’s Offices of Baltimore City, Frederick, Wicomico, Washington, Allegany, Garrett and Queen Anne’s Counties for their investigation of this Organized Crime Drug Enforcement Task Force case. Mr. Rosenstein also recognized the Maryland Department of Public Safety and Correctional Services and the Drug Enforcement Administration for their assistance in the investigation.Mr. Rosenstein thanked Assistant U.S. Attorneys Andrea L. Smith and A. David Copperthite, who are prosecuting this case.
Former Treasurer of Catholic Charity Charged in Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the arrest of Hershel F. Smith, Jr., 80, of Ponte Vedra, Florida. Smith is charged with devising a scheme to defraud a charity from 2005 to 2012. The indictment charges nine counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Smith made his initial appearance yesterday before U.S. Magistrate Judge John O’Sullivan.
According to the indictment, Smith was the Treasurer of Malta Projects of Southeastern Florida, Inc., (Malta Projects), a nonprofit corporation associated with the Order of Malta, a lay religious order of the Roman Catholic Church. Among other things, the Order of Malta and its associated organizations administer and fund charitable activities to serve the sick and the poor.
According to the indictment, Smith devised a scheme to unlawfully enrich himself by making material omissions and materially false and fraudulent representations regarding monies Smith withdrew from the Malta Projects bank account for his own benefit and for unauthorized purposes. Smith was an authorized signer of the Malta Projects bank account and also received the bank statements. According to the indictment, from December 2, 2005 through September 18, 2012, Smith withdrew money, through interstate wire transfers, interstate electronic payments and other means, from the Malta Projects bank account for purposes unrelated to Malta Projects and for his personal benefit. Smith concealed his conduct by providing false financial summaries to Malta Projects as well as to the Order of Malta, American Association (American Association). Smith also submitted altered bank statements to the American Association.
If convicted, Smith faces a maximum sentence of 20 years in prison on each count.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
An indictment is only an accusation and defendants are presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former St. Tammany Coroner Peter Galvan Pleads Guilty to Conspiracy to Steal Funds from Coroner's OfficeRead the Press Release
PETER GALVAN, 54, a resident of St. Tammany Parish, and the former St. Tammany Parish Coroner, pled guilty today to one count of conspiring to steal government funds from the St. Tammany Parish Coroner’s Office, announced U.S. Attorney Kenneth Allen Polite, Jr.
U.S. Attorney Polite stated: “Today’s guilty plea ensures that Peter Galvan will be punished for abusing the public trust for his personal gain.”
Special Agent in Charge of the Federal Bureau of Investigation, New Orleans Field Office, Michael Anderson stated: "This conviction clearly highlights the significant importance of the continuous engagement of the local citizenry to support law enforcement's priority mission to address fraud, corruption and betrayals of public trust."
Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Gabriel Grchan stated: “We have worked hard with our federal partners to obtain the guilty plea entered today by Peter Galvan. IRS Criminal Investigation is committed to pursuing the prosecution of public officers who misuse taxpayer dollars for their personal gain.”
According to the Factual Basis, the Bill of Information to which GALVAN pled guilty, and other documents filed in federal court:
GALVAN, a former elected official, earned annual or sick leave to which he was not entitled. However, with the assistance of another coroner’s office employee, GALVAN received yearly payments for unused annual and sick leave, totaling $111,376 over a five year period.
GALVAN, as a physician, individually contracted with the City of Slidell, Louisiana to provide medical services for inmates of the Slidell City Jail. The contract was not with the St. Tammany Parish Coroner’s Office, but with GALVAN personally. However, GALVAN conspired with another individual employed with the St. Tammany Parish Coroner’s Office to service this contract while the other individual was supposed to be working for and was being paid by the St. Tammany Parish Coroner’s Office. The Coroner’s Office employee was paid at least $50,000 in public funds to fulfill GALVAN’s personal contract.
Additionally, GALVAN conspired with another employee of the coroner’s office to purchase a $9,170 generator for GALVAN’s personal vessel, a life raft and life jackets for his personal vessel valued at $4,841, and a Global Positioning Satellite Receiver for his personal use valued at $2,395, all with St. Tammany Parish Coroner’s Office funds.
Finally, GALVAN used his St. Tammany Parish Coroner’s Office credit card to make purchases of meals and other personal items with his public credit card totaling $15,606 which were unrelated to the office’s business.
GALVAN faces a statutory maximum of five years in jail, a $250,000 fine and restitution of twice his gain or twice the victims’ loss, whichever is greater. He is scheduled for sentencing on January 29, 2014 by U.S. District Court Judge Susie Morgan.
The investigation of the St. Tammany Coroner’s Office is continuing.
Mr. Polite praised the investigative work of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, and the State of Louisiana Legislative Auditor.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Carter K. D. Guice, Jr. and Chandra Menon are in charge of the prosecution.
(Download Factual Basis )
Former Sheriff’s Deputies Head to Federal PrisonRead the Press Release
McALLEN, Texas – Two former deputy sheriffs from Duval County have been sentenced to prison for conspiracy to distribute cocaine, announced United States Attorney Kenneth Magidson. Ruben Silva, 35, of Freer, and Victor Carrillo, 28, of Benavides, pleaded guilty Aug. 30, 2012.
Today, U.S. District Judge Micaela Alvarez sentenced Silva and Carillo to respective terms of 105 and 70 months in federal prison. They were each also ordered to serve three years of supervised release following completion of their prison terms. Silva was also ordered to pay a $5,000 fine. In handing down the sentences, the court noted their special status as police officers in uniform and carrying their duty weapons in announcing a higher sentence.
At the plea hearings, Silva admitted he conspired with Carillo, Jerry Tovar and Jose Luis Tovar to distribute 10 kilograms of cocaine which they would steal from a drug supplier. Both Silva and Carrillo participated in the conspiracy by performing a “pretend” traffic stop using their official Duval County Sheriff’s vehicles and while in uniform, making the owner of the narcotics believe law enforcement had seized the drugs. Silva received $5,000 as payment for his role in the drug distribution conspiracy and Carrillo received $1,000 from that payment. Following the “pretend” traffic stop, Jerry Tovar received approximately six kilograms of cocaine at his residence in Mission from a source working with the Drug Enforcement Administration (DEA).
During the investigation, federal and state investigative agents discovered the Tovar criminal organization, led by Jose Luis Tovar.
He was negotiating with who he believed were illegal drug traffickers to transport large amounts of narcotics, when in reality these “drug traffickers” were undercover federal agents. During the ongoing drug trafficking negotiations, Jose Luis Tovar brokered a deal for these “drug traffickers” to illegally purchase six firearms through the Tovar criminal organization. These firearms included two uzi type weapons and an assault rifle capable of accepting a 100-round magazine. Both brothers were previously convicted felons who were prohibited from possessing firearms.
Jose Luis Tovar was sentenced as head of the Tovar criminal organization brokering the gun trafficking. Jerry Tovar was sentenced for his role in gun trafficking and for a separate conspiracy to distribute more than five kilograms of cocaine. Jerry Tovar and Jose Luis Tovar, both of Mission, were sentenced in December 2012 to 210 and 135 months, respectively. Jose Luis Tovar was also ordered to pay $20,000 in fines.
Previously released on bond, Silva was taken into custody following the sentencing today where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future and Carillo was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is being jointly investigated by the DEA, Texas Rangers, Texas Department of Public Safety, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Border Patrol. Assistant U.S. Attorney (AUSA) Jason C. Honeycutt and former Southern District of Texas AUSA Cory J.H. Crenshaw prosecuted the case.
Former Henderson Teacher Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 43-year-old Henderson, Texas, man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Brent Malone, a former Henderson high school English teacher, pleaded guilty on June 11, 2013 to possession of child pornography and was sentenced to 121 months in federal prison today by U.S. District Judge Leonard E. Davis.According to information presented in court, on Jan. 10, 2013, federal and local law enforcement agents executed a search warrant at Malone’s residence in Henderson, Texas. A laptop computer and two DVDs were seized during the search and found to contain more than 1,200 images and 40 videos of child pornography. Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct. Malone was indicted by a federal grand jury on Mar. 27, 2013 and charged with child pornography violations.
This case was investigated by United States Secret Service and the Longview Police Department and prosecuted by Assistant U.S. Attorney Gregg A. Marchessault.
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 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.Former Employee of Amherst Technology Firm Indicted for Stealing Trade SecretsRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has filed a seven-count indictment charging Yi Liu, 40, of Lexington, South Carolina, with stealing trade secrets from Sprung-brett RDI, a technology firm located in the University of Buffalo’s Technology Incubator on Sweet Home Road in Amherst. Liu was also charged with unlawfully accessing a Sprung-brett computer, the interstate transportation of the stolen trade secrets and wire fraud for attempting to obtain pay from Sprung-brett to which he was not entitled.
The charges carry a maximum penalty of 60 years in prison, a $3,500,000 fine or both.
Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that according to the indictment, Liu, who holds a Ph.D.in mechanical engineering from the University of Waterloo (Ontario), left Sprung-brett’s employ in February of 2011. For seven months following his departure, the defendant retained the laptop computer that Sprung-brett had provided to him while he was employed by the company. During this time, Liu allegedly downloaded electronic files onto an external hard drive that comprised Sprung-brett trade secrets about “electric actuation system technology,” technology that the company was developing for possible use in nuclear submarines and on Air Force fighters. The indictment further states that the defendant later disclosed those trade secrets.
“Protecting scientific and technological innovations developed by businesses and entrepreneurs is of primary importance not just to those who create the idea, but to our region and country,” said U.S. Attorney Hochul. “This Office will protect the intellectual property of our residents, and will vigorously prosecute those who attempt to steal it.”
At the time of Liu’s arrest, FBI agents searched his Lexington, South Carolina home and his office and workspace at the Apex Tool Group in Lexington. Agents seized computers and documents that are currently being analyzed.
The indictment is the result of an investigation by the Buffalo Office of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig and the Columbia, South Carolina Office of the Federal Bureau of Investigation, under the direction of Special Agent in Charge David Thomas.Former Bristol-Myers Squibb Executive Sentenced to Prison for Trading on Inside InformationRead the Press Release
TRENTON, N.J. – A former executive with global pharmaceuticals giant Bristol-Myers Squibb Co. (BMS) was sentenced today to a year and a day in prison for trading on inside information regarding a public company that BMS was in the process of acquiring, U.S. Attorney Paul J. Fishman announced.
Robert Ramnarine, 46, of East Brunswick, N.J., previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with securities fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:Ramnarine was employed by BMS from 1997 to August 2012. From March 2008 on, he held a variety of high-level, executive positions at the company, including director of Pensions and Savings Investments (March 2008-June 2011), executive director of Pensions and Savings Investments (June 2011-July 2012) and assistant treasurer for Capital Markets (July 2012-August 2012). As a result of holding these positions, Ramnarine was involved in evaluating potential acquisition targets for BMS, including publicly traded companies, and was privy to inside company information concerning such transactions. He was legally banned from disclosing confidential information and material, nonpublic information he learned through his employment or from using such information for his personal benefit or the benefit of others.
During May and June 2012, Ramnarine traded on material, nonpublic information regarding the company’s anticipated acquisition of Amylin Pharmaceuticals Inc., a publicly traded company. The material, nonpublic information available to Ramnarine enabled him to reap substantial profits by engaging in lucrative trading in stock options of Amylin shortly before BMS announced its plans to acquire Amylin in late June 2012. As part of his plea, Ramnarine admitted for purposes of sentencing that his relevant criminal conduct includes $311,361 in illicit gains he made from trading in stock options of Amylin and several other BMS acquisition targets – ZymoGenentics Inc. and Pharmasset Inc., a company for which BMS submitted a bid through a confidential auction process, but which was subsequently acquired by Gilead Sciences.
In addition to the prison term, Judge Thompson sentenced Ramnarine to serve two years of supervised release and ordered him to pay a $10,000 fine. Ramnarine also forfeited $324,777 to the U.S. Securities and Exchange Commission (SEC).U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentence. He also thanked the SEC’s Market Abuse Unit and Philadelphia Regional Office, under the direction of Daniel M. Hawke, for its assistance, and Bristol-Myers Squibb Co., for its cooperation during the investigation.
The government is represented by Deputy Chief Gurbir S. Grewal and Assistant U.S. Attorney Mala Ahuja Harker of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-409
Defense counsel: Douglas R. Jensen Esq., New York
Federal Jury Convicts Real Estate Agent and Loan Processor on Racketeering ChargesRead the Press Release
Defendants Were Among 91 Defendants Charged In Operation Wax House
CHARLOTTE, N.C. – Following a week and a half long trial, a federal jury today convicted a real estate agent and a loan processor on all charges relating to a $75 million racketeering conspiracy, announced the U.S. Attorney’s Office for the Western District of North Carolina. Today’s convictions are the latest in Operation Wax House, an investigation which began in 2007 and has netted 91 defendants to date, 80 of which have pleaded guilty or have been convicted following a trial.
Nathan Shane Wolf, 42, of Charlotte, a licensed real estate agent in North Carolina, was convicted of all three charges against him in the indictment: Racketeering Conspiracy, Bank Fraud, and Money Laundering Conspiracy.
Denetria Montresa Myles, 42, of Charlotte, a loan processor and licensed notary public in North Carolina, was also convicted of all charges against her in the indictment: Racketeering Conspiracy, and Bank Fraud.
The United States Attorney’s Office is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI).
The federal criminal trial began on Tuesday, October 15, 2013, before Senior U.S. District Judge Graham Mullen. According to evidence introduced at trial, the enterprise operated from about 2005 until 2012, when indictment was unsealed. The enterprise engaged in an extensive pattern of racketeering activities, which included investment or securities fraud, mortgage fraud in the form of wire fraud and bank fraud, and money laundering.
According to trial evidence, defendants Wolf and Myles were participants in the enterprise’s mortgage fraud operations, accounting together for over $13 million in fraudulently-obtained loans. Witnesses testified that Wolf arranged for builders of luxury real estate to pretend to sell such real estate at an inflated price – what Wolf called the “gross price” – in order to get an inflated mortgage loan from a bank. In reality, the builders accepted the true, lower, price – what Wolf called the “strike price” – while Wolf arranged for the difference between the inflated price and the true price to be paid from the loan proceeds as kickbacks. Such kickbacks were funneled through sham companies and disguised to look like payments for work actually done on the real estate. The evidence established that the work was never done, but instead these kickbacks were payments to the buyers and promoters who helped bring the parties to the fraud together. According to the evidence at trial, the kickbacks generally ranged from approximately $50,000 to almost $600,000.
According to trial testimony, defendant Myles was a promoter for the enterprise, working with one of her co-conspirators also charged in the superseding indictment, Nazerre Saddig (currently a fugitive), to purchase a luxury home so that Myles could receive a $100,000 kickback disguised as a payment for “upgrade repairs” that were never done. According to trial evidence, Myles also purchased one such home in her own name for a kickback of nearly $80,000, paid to a company in the name of her husband. In other transactions, Myles facilitated the identity theft of a victim whose name and credit information was used to buy two homes and obtain in excess of $1 million in loans by Myles falsely notarizing that the victim had signed the loan documents, when, in fact, the victim’s identity had been stolen and the victim never signed the documents nor appeared in front of Myles.
Following the jury’s convictions, both defendants consented to forfeiture in an amount to be determined, and were released on bond pending the scheduling of their sentencing hearings. At sentencing, Wolf faces a maximum prison term of 70 years, and Myles faces a maximum prison term of 50 years. In determining their actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide advisory sentencing ranges. Sentencing dates for the defendants have not been set yet.
Twenty-six defendants were charged in the case. Eleven defendants remain for trial, including two who are international fugitives. Each remaining defendant and his or her status are listed below.
• Ramin Amini, 45, of Tehran, Iran, is charged with racketeering conspiracy, mortgage fraud and money laundering conspiracy. Role: Leader and promoter in the scheme. Status: International fugitive.
• Frank DeSimone, 41, of Charlotte is charged with racketeering conspiracy, securities fraud, wire fraud to defraud investors, and money laundering conspiracy. Role: Promoter. Status: On bond; Scheduled for trial in January 2014.
• Lori Dooley, 49, of Washington, D.C. is charged with racketeering conspiracy, mortgage fraud, and bank bribery. Role: Promoter. Status: Detained; Scheduled for trial after January 2014.
• Toby Hunter, 38, of Fort Mill, S.C. is charged with racketeering conspiracy, securities fraud, wire fraud to defraud investors and money laundering. Role: Promoter. Status: On bond; Scheduled for trial January 2014.
• Steven Jones, 45, of Waxhaw, is charged with securities fraud, wire fraud to defraud investors, money laundering conspiracy and racketeering conspiracy. Role: Promoter. Status: On bond; Scheduled for trial January 2014.
• Kurosh Mehr, 52, of Charlotte is charged with racketeering conspiracy, mortgage fraud and money laundering. Role: Promoter and buyer. Status: On bond; Scheduled for trial after January 2014.
• Ann Tyson Mitchell, 62, of Charlotte, is charged with racketeering conspiracy, mortgage fraud and money laundering. Role: Facilitator. Status: On bond; Scheduled for trial after January 2014.
• John Wayne Perry, Jr., 32, of Charlotte, is charged with racketeering conspiracy and money laundering conspiracy. Role: Promoter. Status: On bond; Scheduled for trial after January 2014.
• Nazeere Saddig, 41, formerly of Charlotte, is charged with racketeering conspiracy and mortgage fraud. Role: Promoter and buyer. Status: International Fugitive.
• Carrie Tyson, 59, of Winterville, N.C., is charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors and money laundering. Role: Leader and promoter. Status: Detained (bond review pending); Scheduled for trial January 2014.
• James Tyson, Jr., 32, of Dakar, Senegal, is charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors, bank bribery and money laundering. Role: Leader and promoter. Status: Detained; Scheduled for trial January 2014.
Operation Wax House in the Western District of North Carolina is being handled by the Charlotte Division of the FBI and the Criminal Division of the IRS for the Financial Fraud Enforcement Task Force, along with the Securities Division of the North Carolina Secretary of State. The United States Attorney’s Office also relied heavily on the expertise and assistance of the North Carolina Real Estate Commission. The Wolf and Myles prosecution for the government was handled by Assistant United States Attorneys Kurt W. Meyers and Maria K. Vento.
The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.stopfraud.gov.
The names and case numbers of the all the defendants charged to date in Operation Wax House are listed below, organized by their alleged role in the scheme.
Attorneys and Paralegals
Crawford/Mallard, Michelle 3:11cr374
Gates, Christine 3:09cr100
Norwood, Kelli, 3:09cr162
Rainer, Demetrius 3:08cr239/241
Smith, Troy, 3:08cr264Bank Insiders
Brown, Jamilia, 3:10cr124
Eason, Danyelle, 3:10cr116
Henson, Vic. F., 3:10cr124
Jackson, Mitzi, 3:11cr374
Ramey, Bonnie Sue, 3:10cr124Builders and Sellers
Fink, James, 3:11cr374; 3:12cr239
Jackson, Jennifer, 3:09cr241
Smith, Kelvis, 3:12cr238
Viegas, Jeffrey, 3:12cr298
Wittig, Mark, 3:12cr335
Wood, Gary, 3:09cr208Facilitators and Financiers
Hickey, Denis, 3:09cr103
McClain, Landrick, 3:10cr124
Mitchell, Ann Tyson, 3:12cr239
Panayoton, Sherrill, 3:11cr176
Taylor, Alicia Renee, 3:10cr124
Wilson, Willard, 3:09cr161Buyers
Banks, Arketa, 3:12cr297
Hillian, Kirk, 3:12cr83
Mathis, Charles, 3:10cr1
Mobley, Sarena, 3:10cr124
Moore, George, 3:12cr337
Richards, Dan, 3:10cr119
Smith, Kevin, 3:12cr341
Tyler, Glenna, 3:11cr200
Vaughn, Mary, 3:12cr329
Wallace, Jamaine, 3:12cr330
Wellington, William, 3:12cr333Notary Public
Willis, Anthony, 3:09cr218Appraiser
Darden, Clinton 3:10cr108Mortgage Brokers
Bradley, Bonnette, 3:12cr299
Clarke, Linda, 3:10cr120
Flood, Ericka, 3:10cr124
Goodson-Hudson, Crystal, 3:12cr339
Mahaney, Robert, 3:12cr34-0
Scagliarini, Coley, 3:11cr374
Staton, Walter, 3:10cr113
Vaughn, Danielle, 3:12cr329
Williams, Marcia, 3:12cr334
Williams, Sean, 3:12cr336
Woods, Joseph, 3:09cr178Real Estate Agents
Belin, Chris, 3:11cr374
Clark, Christina, 3:09cr44
Lee, Shannon, 3:12cr338
Pasut, Holly Hardy, 3:12cr331
Wolf, Nathan Shane, 3:12cr239
Wood, Gary, 3:09cr208Promoters
Amini, Ramin, 3:12cr239
Barnes, Vonetta Tyson, 3:12cr239
Brown, William, 3:12cr239
Bumpers, Travis, 3:12cr239
Carr, Stephen, 3:10cr124
Clarke, Benjamin, 3:12cr239
Clarke, Reuben, 3:10cr120
Coleman, Gregory, 3:10cr118
DeSimone, Frank, 3:12cr239
Dooley, Lorie, 3:12cr239
Hitchcock, Jimmy, 3:11cr374
Hubbard, Glynn, 3:12cr239
Hunt, Victoria, 3:12cr239
Hunter, Toby, 3:12cr239
Johnson, Ralph, 3:12cr239
Jones, Steven, 3:12cr239
Jones, Tyree, 3:10cr230
Long Waylon, 3:12cr239
Marshall, Michael, 3:07cr283
McDowell, John, 3:12cr239
McPhaul, Elizabeth, 3:10cr114
Mehr, Kurosh, 3:12cr239
Mitchell, Ann Tyson, 3:12cr239
Moye, Melvin, 3:12cr239
Myles, Denetria, 3:12cr239
Newland, Matthew, 3:12cr239
Perry, John Wayne, Jr., 3:12cr239
Perry, Kim, 3:10cr25
Phillips, Rick, 3:10cr115
Saddig, Nazeere, 3:12cr239
Sharreff-El, Drew, 3:10cr124
Sherald, Kiki, 3:10cr117
Simmons, Aaron, 3:09cr240
Snead, Todd, 3:10cr124
Staton, Lisa, 3:10cr113
Thorogood, Donte, 3:12cr239
Tyson, Carrie, 3:12cr239
Tyson, James, Jr. 3:12cr239
Tyson, James, Sr., 3:12cr239
Wellington, Phillip, 3:12cr332
Wood, Purnell, 3:12cr239Federal Autorities Sieze $34 Million in Cocaine, Detain Three Smugglers in CaribbeanRead the Press Release
SAN JUAN, Puerto Rico – The Coast Guard and U.S. law enforcement partners seized approximately 1,155 kilograms of cocaine (approximately 2,546 pounds), a go-fast vessel and detained three suspected smugglers, during an at-sea interdiction Friday in the Caribbean Sea south of St. Croix, U.S. Virgin Islands, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The drug shipment is estimated to have a wholesale value of more than $34 million dollars.
On Saturday, October 19, U.S. Magistrate Judge Camille Vélez-Rivé authorized a complaint charging: Allan Hasani Greenidge, Ángel Luis Rivera-Montañez and Ángel Ribot-Aguiar with possession with intent to distribute five or more kilograms of cocaine. The defendants remain in custody. Tomorrow they will have their detention hearing at 1:30 pm.
The interdiction was a result of a multi-agency law enforcement effort in support of the Coast Guard’s Operation Unified Resolve, the Caribbean Border Interagency Group’s (CBIG) Operation Caribbean Guard, and the U.S. Department of Justice Caribbean Corridor Strike Force (CCSF).
“These arrests and multi-kilogram seizure are a clear indication of the success of the Caribbean Corridor Strike Force Initiative,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The US Attorney’s Office and our law enforcement counterparts remain committed to using every law enforcement tool available to attack these criminal organizations and ensure that drug traffickers and their associates are brought to justice for the damage they inflict on our communities.”
“Interdicting drug smugglers at sea in the middle of the night is a complex and dangerous operation only possible through the resolve of federal and regional law enforcement authorities committed to safeguarding Puerto Rico and the U.S. Virgin Islands from the threats that come from the sea,” said Capt. Drew W. Pearson, commander of Coast Guard Sector San Juan. “We will continue our aggressive patrol efforts with our interagency partners to interdict these major drug shipments as far from shore as possible and bring those responsible to justice.”
The crew of a patrolling fixed-wing HC-144 Ocean Sentry maritime patrol aircraft from Air Station Miami detected a suspicious 30-foot go-fast vessel Thursday night. The vessel was spotted carrying three suspected smugglers and what appeared to be multiple bales of suspected contraband.
Coast Guard watchstanders at Sector San Juan diverted a Coast Guard 33-foot Special Purpose Craft Law Enforcement (SPC-LE) pursuit boat from Boat Station San Juan and the Coast Guard Cutter Drummond to interdict the suspect vessel. A Customs and Border Protection (CBP) marine unit also responded upon being alerted.
A CBP dash-8 marine surveillance aircraft relieved the Coast Guard HC-144 Ocean Sentry and vectored in the Coast Guard 33-foot SPC/LE to interdict the go-fast. The suspected smugglers became compliant as the Coast Guard pursuit boat came alongside the suspect vessel. The crew of the Coast Guard SPC-LE pursuit boat proceeded to board the suspect vessel, detain the three men onboard and seize 25 bales of suspected contraband. The Coast Guard Cutter Drummond arrived on scene shortly thereafter and embarked the detainees and suspected contraband for transport to Puerto Rico. A test revealed the suspected contraband to be cocaine.
The crew of the Drummond transferred the detainees and the cocaine to CBP officers, Immigrations and Customs Enforcement (ICE)-Homeland Security Investigations (HSI), and Drug Enforcement Administration (DEA) special agents in Ponce, Puerto Rico.
Since Sept. 2012, Coast Guard alongside CBIG law enforcement agencies under Operation Caribbean Guard have seized 27,650 kilograms of cocaine, in partnership with regional law enforcement authorities in the Caribbean. The wholesale value for these seizures is worth more than $829 million.
The Coast Guard’s efforts under Operation Unified Resolve contribute to the interagency results being achieved each and every day locally under Operation Caribbean Guard, which coordinates efforts between the Coast Guard, its DHS, Commonwealth and Territorial law enforcement partners, who are working diligently to deter, detect and disrupt illicit maritime trafficking to Puerto Rico and the U.S. Virgin Islands.
CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the High Intensity Drug Trafficking Area (HIDTA) and Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of HSI, the U.S. Attorney for the District of Puerto Rico, Drug Enforcement Administration, FBI, the Coast Guard, CBP and PRPD's Joint Forces for Rapid Action.
The CBIG was formally created to unify efforts of the U.S. Customs and Border Protection, the U.S. Coast Guard, U.S. Immigration and Customs Enforcement, the United States Attorney's Office for the District of Puerto Rico, and Puerto Rico Police Joint Forces of Rapid Action, in their common goal of securing the borders of Puerto Rico and the U.S. Virgin Islands against illegal migrant and drug smuggling.
The Coast Guard Cutter Drummond is a 110-foot island class patrol boat homeported in San Juan.
Ellettsville Gun Store Owner Files Petition to Plead Guilty to Federal Firearms ChargesRead the Press Release
Defendant charged in 2011 with not participating in federal background check programs
BLOOMINGTON -- Joseph H. Hogsett, the United States Attorney, announced today that, Donald Mullendore, age 63, has petitioned the court to enter a plea of guilty to federal firearms charges. Mullendore, the owner of an Ellettsville gun store, was arrested on federal firearms charges in July 2011 after an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“This case involves allegations of a local firearms dealer that operated with no regard for the rule of law,” Hogsett said. “It also represents one of the first cases brought as part of our Violent Crime Initiative, and today’s announcement brings this matter one step closer to resolution.”
According to a stipulated factual basis filed jointly by prosecutors and Mullendore’s attorney, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) conducted a six-month undercover investigation concerning the business practices of Mullendore Guns, a federally licensed firearms dealer in Ellettsville. During the course of its investigation, ATF was assisted by a confidential informant who had been convicted of multiple felonies. The court document describes a number of instances of misconduct by Mullendore.
On March 11, 2011, after being told that the confidential informant was a convicted felon, Mullendore sold a Cobray 9 millimeter pistol to that individual for approximately $2,000. Prior to selling the Cobray pistol to the informant, Mullendore did not require that individual to fill out the mandatory ATF Form 4473 “Firearms Transaction Record,” nor did Mullendore perform the required check of that individual’s criminal history.
On May 5, 2011, Mullendore again sold a weapon to the confidential informant. Prior to the completion of that transaction, Mullendore again did not require the informant to fill out the mandatory ATF Form 4473 “Firearms Transaction Record” nor did Mullendore perform the required check of that individual’s criminal history. On July 13, 2011, Mullendore sold a Saiga .410 gauge shotgun the informant, again not following federal firearms laws.
A criminal complaint filed in 2011 made note that during a conversation with the informant, Mullendore allegedly said that he did not believe in paperwork because Aall you are doing is telling the government where you got your guns." Mullendore went on to allegedly assert that, AI destroyed all my paper and I just don't care, I’m going to give people the guns they need. This is God's shop and what He [God] wants to do with it is going to happen."
These indictments come as part of the U.S. Attorney’s Violent Crime Initiative (VCI), and are the result of collaborative investigative efforts by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Indiana State Police. Launched in March 2011, the VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the more than two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney Matthew J. Rinka, who is prosecuting the case for the government, the counts against Mullendore carry a maximum of ten years in prison and a $250,000 fine. A sentencing hearing will be held in Indianapolis at a later date. A complaint is only a charge and is not evidence of guilt.
A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Eagle Pass Businessman Pleads Guilty in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio, Hipolito Amaya, 35-year-old owner of AM-ROD Construction based in Eagle Pass, faces up to ten years in federal prison after pleading guilty to a bribery charge in connection with an alleged bribery, kickback and bid-rigging scheme in Maverick County announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before United States Magistrate Judge Collis White this afternoon, Amaya admitted that in May 2011, he submitted a $35,800 bid to Maverick County to construct a concrete sidewalk on Lago Vista in Precinct 4 of Maverick County. Maverick County issued him a $17,900 check to commence work and then a $17,900 check for the completion of the sidewalk. Amaya further admitted that he made cash payments to two Maverick County employees so that he could be paid in full for work he never performed.
Amaya remains on bond pending sentencing scheduled for March 2014.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
Doctor Sentenced for Kickback Scheme Involving A Philadelphia HospiceRead the Press Release
PHILADELPHIA – Eugene Goldman, M.D., 55, of Philadelphia, was sentenced today to 51 months in prison and a $300,000 fine for conspiring to violate the anti-kickback statute and violating the anti-kickback statute in relation to his role in a kickback scheme arising from his employment as the Medical Director at Home Care Hospice Inc. (HCH). U.S. District Court Judge Eduardo Robreno ordered Goldman to immediately begin serving his sentence and also ordered three years of supervised release. Goldman also faces mandatory exclusion from participation in any federal health care program.
The evidence at trial proved that from approximately December 2000 until approximately July 2011, Dr. Goldman served as the medical director for HCH and regularly referred Medicare or Medicaid patient beneficiaries to HCH. HCH was a for-profit business in Philadelphia that provided hospice services for patients at nursing homes, hospitals and private residences.
In December 2000 the defendant and one of the co-owners of HCH entered into a written contract to create the false appearance that all payments to Dr. Goldman from HCH were for services rendered in Dr. Goldman’s capacity as medical director for HCH, when in fact the large majority of payments from HCH to Dr. Goldman were illegal payments for the referral of Medicare and/or Medicaid patients to HCH. From January 2003 to July 2011, Dr. Goldman received approximately $309,000 in illegal payments for patient referrals. In January, February and March 2009, Dr. Goldman was captured on tape receiving kickbacks for patient referrals.
The case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General. It was prosecuted by Assistant United States Attorney Suzanne B. Ercole and Trial Attorney Margaret Vierbuchen of the Organized Crime and Gang Section in the Justice Department’s Criminal Division.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Developer Richard Baccari, Churchill & Banks Companies Indicted on Federal Conspiracy and Bribery Charges in Ongoing North Providence Municipal Corruption ProbeRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned a two-count indictment which charges Richard P. Baccari, Sr., 71, of Narragansett, President and Chief Executive Officer of Churchill & Banks Companies, LLC, and his company, Churchill & Banks Companies, each with one count of conspiracy and one count of bribery, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
The indictment, a result of the ongoing investigation into municipal corruption in North Providence, alleges that Baccari and his company paid a $50,000 bribe to three now federally convicted and imprisoned North Providence town councilmen, Joseph S. Burchfield, Raymond L. Douglas III, and John A. Zambarano, in exchange for enough favorable council votes to approve a zoning change to a 6-acre parcel of land for the development of a supermarket. The indictment alleges that Baccari and Churchill & Banks paid the bribe through a middle-man, Robert S. Ciresi, a former attorney who was convicted and is imprisoned for his role in the bribery scheme.
According to the indictment, the three councilmen, Burchfield, Douglas and Zambarano, allegedly planned the bribe solicitation during a series of telephone conversations and meetings with one another and with Ciresi. The indictment alleges Ciresi was used by the councilmen as a middleman to facilitate communications between Richard Baccari and John Zambarano.
The indictment alleges that in October 2008, Ciresi accompanied Zambarano to Baccari’s office at Churchill & Banks for the purpose of discussing a bribe to secure the votes needed for the zoning change. The indictment alleges that Zambarano asked for and Baccari agreed to pay a $25,000 bribe in exchange for Zambarano delivering four council member votes in favor of the zoning change. It is alleged in the indictment that between October 2008 and February 9, 2009, Zambarano asked Baccari through Ciresi to increase the bribe amount to $50,000. According to the indictment, Baccari agreed.
The supermarket project was first presented to the Town Council in early October 2008, and came before the council on several occasions before a vote to approve the zoning change occurred on February 10, 2009. The vote to approve the project was 7-0. According to the indictment, the bribe money was delivered by Ciresi, on Richard Baccari’s and Churchill & Bank’s behalf, to Zambarano shortly after the council’s vote. Disbursement of the bribe money was completed the next day.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former councilmen Joseph Burchfield, Raymond Douglas III, and John Zambarano were arrested by FBI agents on May 6, 2010. In March 2011, Burchfield, Douglas and Zambarano pled guilty to their roles in the kickback scheme and are currently serving sentences ranging from 64 to 78 months in federal prison.
Robert Ciresi was convicted by a federal court jury in April 2011 of conspiracy, bribery and Hobbs Act extortion, and is currently serving a sentence of 63 months in federal prison.
If convicted of conspiracy, Richard Baccari faces statutory penalties of up to 5 years imprisonment; a fine of up to $250,000; and up to 3 years supervised release. If convicted of bribery, Baccari faces statutory penalties of up to 10 years imprisonment; a fine of up to $250,000 and up to 3 years supervised release.
If convicted, Churchill & Banks Companies, LLC faces statutory fines of up to a total of $1,000,000.
The case is being prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams.The matter is being investigated by the FBI, with the assistance of Rhode Island State Police, Providence Police, DEA, and the Internal Revenue Service - Criminal Investigation.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Dallas Man Sentenced to 110 Months in Federal Prison for Robbing BBVA Compass Bank in CarrolltonRead the Press Release
Defendant Admits Brandishing a BB Gun During the Robbery
DALLAS — Rodney Dewayne Womack, 38, of Dallas, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to 110 months in federal prison for robbing a BBVA Compass Bank located in Carrollton, Texas, in February 2013, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on the morning of February 15, 2013, a male, later identified as Womack, entered the BBVA Compass Bank located at 3040 East Trinity Mills Road in Carrollton. After entering the bank, he pointed a handgun, which law enforcement later determined to be a BB gun, at a teller and demanded money. In fear, the teller put cash into the plastic bag that Womack provided. Womack took the bag, walked out of the bank and was arrested later that day.
The case was investigated by the FBI and the Carrollton Police Department. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
Crownpoint Man Sentenced to Fifty-Seven Months for Involuntary Manslaughter Conviction Arising Out of the Deaths of Three IndiviudalsRead the Press Release
ALBUQUERQUE – Brendan Harry, 21, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., was sentenced this afternoon to 57 months in federal prison followed by three years of supervised release for his conviction on involuntary manslaughter and assault charges. Harry also was ordered to pay $2,052.13 in restitution to cover funeral and other expenses incurred by one victim’s family.
Harry was charged in an indictment with three counts of involuntary manslaughter and one count of assault resulting in serious bodily injury which arose out of a single motor vehicle crash that occurred at approximately 5:00 a.m. on March 31, 2012, near Borrego Pass, N.M., on the Navajo Indian Reservation. Three individuals who were passengers were ejected when the vehicle rolled at high speed. Each of the three victims died as a result of injuries they sustained during the crash. A fourth passenger suffered serious bodily injuries. All four victims were young adult and members of the Navajo Nation.
On June 3, 2013, Harry pleaded guilty to all four counts of the indictment. In entering his guilty plea, Harry admitted that he was driving while intoxicated and caused the death of three of his passengers and serious injury to a fourth passenger when he crashed the vehicle.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Convicted Felon Indicted for Impersonating DEA Agent and Possessing FirearmRead the Press Release
Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Benjamin William Mejias (41, Orlando) with impersonating a federal Drug Enforcement Administration (DEA) agent and being a felon in possession of a firearm and ammunition. If convicted on all counts, Mejias faces a maximum penalty of ten years in federal prison.
According to court documents, Mejias has three previous state felony convictions, each for burglary of a dwelling, any one of which precludes him from possessing a firearm or ammunition. This investigation revealed that Mejias had been telling people, including Orlando police officers, that he had been a DEA agent for over twenty years and had allegedly collected a $2,000 donation from an Orlando businessman on behalf of an agents’ association. Agents also learned that Mejias had posted photos of himself with a variety of firearms on social media sites. When agents executed a search warrant at Mejias’ home on October 11, 2013, they found a loaded .40 caliber semi-automatic pistol, and he was arrested. Mejias has remained in custody since his arrest.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Bruce Ambrose.
Colorado Springs Man Indicted and Held Without Bond for the Sexual Exploitation of ChildrenRead the Press Release
DENVER – Justin Craig Smith, age 32, of Colorado Springs, Colorado, was indicted by a federal grand jury in Denver for the sexual exploitation of children, the distribution of child pornography, and the possession of child pornography, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. The federal grand jury indictment was handed down in August. Smith, who was on bond for state charges since December 2012, made his initial appearance in federal court on October 11, 2013. He was ordered held without bond after a hotly contested hearing on October 17, 2013. On that date he was also arraigned.
According to the indictment as well as a proffer given by the government in open court during the detention hearing, from July, 2010 through April, 2011, Smith attempted and did use two minors to engage in sexually explicit conduct for the purpose of producing child pornography. On May 7, 2012, Smith allegedly knowingly distributed and attempted to distribute child pornography. Lastly, on December 5, 2012, he was found in possession of child pornography.
In December of 2012, local law enforcement executed a search warrant at Smith’s Colorado Springs residence after an investigation revealed that he was using a peer-to-peer system to share child pornography. During the subsequent investigation it was determined that Smith had photographed his sexual assault of a minor child, aged 8 years old and taken lascivious photographs of another child who is now 12 years old for a period of years. The defendant also made his young victims watch videotapes of child pornography. Further forensic evaluation of Smith’s computer not only uncovered the images of his sexual molestation, it also contained one of the largest collection of toddler videos that the forensic analyst has ever seen.
After the December 2012 search warrant was executed, Smith was arrested by the Colorado Springs Police on state charges of molestation. That case is pending.
“Mr. Smith engaged in the sexual assault and exploitation of two young children to produce child pornography,” said U.S. Attorney John Walsh. “This case should send a strong message to those who sexually prey on our children that they will get caught and they will be punished.”
“Only those predators who produce child pornography really know what perverted logic they use to rationalize the horrific trauma they permanently inflict on innocent children,” said Kumar C. Kibble, special agent in charge of HSI Denver. “However, our special agents with Homeland Security Investigations derive great satisfaction from rescuing these children from their living nightmare, and pursuing prosecution against their victimizers.”
If convicted of the sexual exploitation of children, Smith faces not less than 15 years, and not more than 30 years in federal prison, as well as a fine of not more than $250,000, per count for each of the two counts. If convicted of distribution of child pornography, the defendant faces not less than 5 years, and not more than 20 years in federal prison, as well as a fine of up to $250,000. If convicted of possession of child pornography the defendant faces not more than 10 years imprisonment, and up to a $250,000 fine.
This case was investigated by Homeland Security Investigations (HSI),with cooperation from the Colorado Springs Police Department and the Internet Crimes Against Children Task Force (ICAC).
Smith is being prosecuted by Assistant U.S. Attorney Valeria Spencer.The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Colorado Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Denver, Colorado, man charged with Failure to Pay Child Support was sentenced on October 21, 2013, by U.S. District Court Judge Karen E. Schreier.
Joe S. Romero, age 43, was sentenced to five years of probation, a $100 special assessment to the Federal Crime Victims Fund, and child support restitution in the amount of $31,601.69.
Romero was indicted for failing to pay his past due child support by a federal grand jury on January 8, 2013, and pled guilty to the charge on August 2, 2013.
He was ordered by the District Court of Denver County to pay $200.00 per month for his minor child beginning January 7, 1993. At the time of indictment, he had not made a child support payment since May of 2011 and had past due child support obligations..
This case was investigated the Department of Health and Human Services, Office of Inspector General Assistant U.S. Attorney Thomas J. Wright prosecuted the case.
The defendant had been in custody for five months prior to sentencing. Romero was released from federal custody.Co-Defendant in Cocaine Distribution Conspiracy Case Involving Former NFL Player Sam Hurd Is Sentenced to A Total of 127 Months in Federal PrisonRead the Press Release
DALLAS — Jesse Tyrone Chavful, 46, of San Antonio, Texas, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to serve a total of 127 months in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Chavful, who admitted he agreed to help his cousin, former professional football player Samuel George Hurd, III, acquire cocaine to sell others, pleaded guilty in October 2012 to one count of conspiracy to possess with the intent to distribute five kilograms or more of cocaine. When he committed the instant offense, Chavful was on supervision for a federal drug-related firearm offense. Because Chavful committed this offense while on supervision, the district court revoked his supervision and ordered that he serve 30 months imprisonment, to be served consecutively to the 97-month sentence that he received for the instant offense.
Another defendant in the case, Toby Lujan, 28, is scheduled to be sentenced on January 8, 2014. He pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a fine of up to $5 million.
According to plea documents filed in the Chavful case, from July 2011 through early June 2012, Chavful agreed to help Hurd acquire cocaine to sell to others. While Hurd played professional football for the Dallas Cowboys, he conspired with others to possess with the intent to distribute cocaine and marijuana, and the conspiracy continued after he began playing football for the Chicago Bears.
During fall 2011, Chavful conspired with Hurd to obtain 10 kilograms of cocaine for Hurd to distribute to others. According to the factual resume, while Hurd was playing football for the Chicago Bears, he contacted Chavful and asked him to find 10 kilograms of cocaine. Chavful then met with witnesses at his T-shirt shop in San Antonio and negotiated for 10 kilograms of cocaine for Hurd. On November 10, 2011, Chavful and a witness discussed drug loads going “north,” that is, to Hurd in Chicago. Chavful advised the witness not to worry about the payment because Hurd had money. Chavful also cautioned that Hurd could not be present when the drugs were delivered because of media concerns.
During spring 2012, while on pre-trial release for pending federal drug offenses, Hurd met with Chavful at his San Antonio T-shirt shop and asked him to get him cocaine and marijuana. In late May, Chavful met with a witness and agreed to buy five kilograms of cocaine and 200 pounds of marijuana, and told the witness that Hurd, whom he described as “the money,” was in on the transaction and ready to move. On June 6, 2012, federal law enforcement officers arrested Chavful after the witness and an undercover officer delivered the drugs to Chavful. Chavful admitted that he had phoned Hurd that day, at the telephone number listed under “Big Sam” in his cell phone contacts, to let Hurd know about the drugs.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney John Kull are prosecuting.
Clarence Man Sentenced to over Two Years' Imprisonment for Failing to Forward Taxes He Withheld from His Employees' PaychecksRead the Press Release
A former business owner who withheld federal taxes from his employees’ paychecks but did not forward the money withheld to the Internal Revenue Service (“IRS”), was sentenced on October 22, 2013, to more than two years in federal prison.
Eric Holub, 46, from Clarence, Iowa, received the prison term after a July 12, 2013, guilty plea to one count of failing to pay over to the IRS money he had withheld from his employees’ paychecks for required federal employment taxes.
In a plea agreement, Holub admitted that he was the owner of Premier Security, a private security business previously located in Cedar Rapids, and had served as the President and Treasurer of the business from 2003 through 2011. Holub admitted that from January 2008 through December 2009, he was responsible for withholding income taxes and Federal Insurance Contributions Act (“FICA”) taxes from the pay of Premier Security employees and was responsible for forwarding those withholdings to the IRS. However, Holub admitted that for six calendar quarters in 2008 and 2009, he failed to forward the money he withheld from his employees’ pay to the IRS, even though he knew he was required to do so. In the plea agreement, Holub further admitted he also failed to pay to the IRS other taxes owed by Premier Security from 2008 through 2011. In total, Holub failed to send the IRS approximately $460,000 in taxes owed by Premier Security.
Holub was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Holub was sentenced to 30 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $438,426.17 in restitution to the IRS. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
"IRS Criminal Investigation takes these violations of law very seriously," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service."
Holub was released on conditions previously set and is to surrender to the United States Marshal on November 12, 2013.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by Internal Revenue Service Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 13-CR-00032.
Citizen of Honduras Sentenced to Prison for Illegally Reentering U.S. After DeportationRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSE RAMON NAVARRO-HERNANDEZ, 33, a citizen of Honduras last residing in Manchester, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to six months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, NAVARRO-HERNANDEZ was previously removed from the U.S. to Honduras on four separate occasions and returned to the U.S. after each removal without having lawful permission to enter the country.
NAVARRO-HERNANDEZ has been detained since July 29, 2012, when he was arrested by the Manchester Police Department. On July 31, 2013, he pleaded guilty in federal court to one count of illegally reentry.
Judge Arterton ordered that NAVARRO-HERNANDEZ begin serving his six-month federal sentence after he completes an 18-month state sentence he is currently serving.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Belleville Woman Indicted for Health Care Fraud and Obtaining Controlled Substances by FraudRead the Press Release
Yolanda Rice, 23, of Belleville, IL, was indicted on October 23, 2013, on charges of Health Care Fraud and Obtaining Controlled Substances by Fraud, in a three-count Indictment returned by a Federal Grand Jury sitting in East St. Louis, IL, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 of the indictment alleged that between May of 2011 and September of 2012, Rice defrauded Medicaid by authorizing, through her employer, false prescriptions for controlled substances for Medicaid beneficiaries and then diverting the controlled substances for her own use. Counts 2 and 3 allege that on November 30, 2011, and on December 31, 2011, Rice fraudulently obtained Oxycodone, a Schedule II controlled substance, by fraud, misrepresentation and deception.
With respect to Count 1, Rice faces up to 10 years in prison, up to a $250,000 fine, and up to 3 years supervised release. For Counts 2 and 3, Rice faces up to 4 years in prison, up to a $250,000 fine, and up to 3 years supervised release. A $100 Special Assessment is assessed for each count.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Fairview Heights Police Department, the Drug Enforcement Administration, the U.S. Department of Health and Human Services, Office of Inspector General, and the Illinois State Police.
The case is being handled by Assistant United States Attorney Ranley R. Killian.
Belleville Man Pleads Guilty to Armed Robbery of Circle K Gas StationRead the Press Release
A Belleville, Illinois, man pled guilty in federal district court to two counts of armed robbery on October 21, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
London Brown, 21, of Belleville, Illinois, pled guilty to an Indictment charging him with two counts of “Hobbs Act Robbery,” which makes it a crime to obstruct, delay, or affect interstate commerce by robbery. “Robbery” is defined in the statute as the “unlawful taking or obtaining of personal property from the person . . . of another, against his will, by means of actual or threatened force or violence, or fear of injury, immediate or future, to his person . . . .” Brown also pled guilty to a third count of the Indictment, which charged him with brandishing a firearm in furtherance of a federal crime of violence.
A Factual Stipulation filed with the court indicates that the charges relate to separate robberies of a Circle K gas station in Belleville, Illinois, which occurred on July 22, 2013, and August 15, 2013. In both robberies, Brown pointed a rifle at the Circle K clerk on duty and demanded that the clerk give him the money in the cash register. The July robbery netted Brown only $100; the August robbery netted him only $358. These sums were proceeds of sales of goods that had moved in interstate commerce. It was the custom of Circle K to deposit the funds into a bank account in Belleville; such funds were then transmitted by interstate wire to the corporation’s bank in Indiana. The parent company of the Circle K is headquartered in Indiana. Thus, these robberies obstructed, delayed, and affected commerce.
Following the August 15 robbery, the Circle K clerk alerted the Belleville police, who spotted Brown in flight, carrying the rifle. A foot chase ensued, and police caught Brown hiding in some bushes in a residential area several blocks from the Circle K. Police also located and confiscated the rifle that Brown used in the robberies. Brown confessed to police, admitting that he had committed the two robberies, and admitting that he had possessed and brandished the rifle that police recovered. He told police that he had intended to use some of the proceeds from the robberies to pay his girlfriend’s telephone bill.
“I announced back on September 12th that I was initializing a group of federal, local and state law enforcement agencies to pursue these types of cases in an Armed Robbery Suppression Initiative, similar to the Major Case Squad investigating and solving its cases. This is the first plea of guilty out of that effort. It will not be the last.” noted United States Attorney Wigginton. “I will continue to creatively use all of the resources at my disposal to enhance the safety of all of the citizens of Southern Illinois.”
The maximum penalties that can be imposed for each robbery count are twenty years in prison, a $250,000 fine, or both, three years of supervised release, and a $100 special assessment. The firearm brandishing charge carries an additional minimum seven years in prison, which must run consecutively to any other sentence that the court may impose. The court may also impose a maximum fine on the firearms count of $250,000, and a special assessment of $100.
Sentencing is set for January 24, 2013, at 10:30 a.m.
The case was investigated by members of the Belleville Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Baltimore Heroin Dealer and Career Offender Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Davon Robinson, age 35, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Robinson’s plea agreement, on October 30, 2012, Baltimore Police officers observed several traffic violations by a red Lexus and initiated a traffic stop. One officer approached the driver’s side of the car and saw the driver, later identified as Robinson, with an open bag in his lap. The bag contained a number of clear plastic bags with gel caps containing a tan powder, which the officer believed to be heroin. Robinson quickly shoved the bag to his feet and tried to kick it under the seat. The officer instructed Robinson to get out of the car. Robinson tried to run away, but the officers grabbed him and restrained him. Robinson was searched and officers recovered a plastic back with four gel caps of heroin and $809 in cash. The car was also searched and officers recovered the plastic bag which contained 850 gel caps of heroin. The total weight of the heroin was approximately 174 grams.Robinson admits that he is a career offender based on three previous drug convictions
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who prosecuted the case.Aurora Man Sentenced to Nearly Five Years in Prison for FraudRead the Press Release
An Aurora man was sentenced to nearly five years in prison and ordered to pay more than $600,000 for defrauding his Beachwood-based employer and its investment clients, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Cleveland office of the Federal Bureau of Investigation, and Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office.
Andrew J. Franz, age 41, previously pleaded guilty to three counts of mail fraud, one count of securities fraud, one count of investment adviser fraud and five counts of income tax evasion.
“This defendant betrayed the trust of his employer and his clients,” Dettelbach said. “He lined his pockets with the money that people worked a lifetime to save.”
Anthony said: “Andrew Franz enriched himself with hundreds of thousands of ill-gotten dollars by creating and carrying out various fraudulent schemes. The FBI will continue to work with our law enforcement partners to bring to justice those that steal the hard-earned money of others.”
"Law abiding citizens expect the government to hold accountable those who use deceit and fraud to line their pockets with money, especially when that money represents stolen federal taxes and embezzled funds," Enstrom said. "As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm."
U.S. District Judge Christopher Boyko sentence Franz to 57 months in federal prison. He also ordered Franz to pay $357,068 in restitution to his victims and $245,352 in back taxes to the IRS.
The first three counts of the information charge that Franz, through his employment and association with the Ruby Corporation (Ruby), a Beachwood investment company, defrauded Ruby and at least 10 of its clients by misappropriating customer funds for his own personal use and benefit.
Franz submitted quarterly fee requests to mutual fund and annuity companies for payment of investment advisory fees for Ruby’s clients’ investment accounts. Franz then caused these companies to issue checks by mail to Ruby, which checks Franz intercepted and deposited into bank accounts he maintained and controlled, and which funds he used for his own personal use and benefit, according to the information.
Franz submitted some fee requests that were for amounts not due and payable to Ruby, and some fee requests that were for amounts greater than were due and payable to Ruby. Franz also caused mutual fund and annuity companies to send some of these fraudulently obtained fee payments through the mail to his own residence, according to the information.
On some occasions, Franz deposited the funds obtained by his fraudulent fee requests into the accounts of Ruby in an attempt to conceal his fraudulent activity. Franz also contacted a mutual fund company by telephone and, misrepresenting himself as the owner of a trust, caused the mutual fund company to mail payments to Franz’s personal residence. Franz then deposited these checks into bank accounts he maintained and controlled, according to the information.
The information specifically lists three checks, drawn on the accounts of various clients of Ruby, that the Integrity Life Insurance Company sent to Franz’s personal residence between July 20, 2010 and September 7, 2010 as payment for false and fraudulent fee requests that Franz submitted.
Count 4 charges Franz with securities fraud in using and employing manipulative and deceptive devices and contrivances in connection with the purchase and sale of securities by employing devices, schemes, and artifices to defraud, and by engaging in practices which operated as a fraud on investors.
Count 5 charges Franz with investment adviser Fraud in aiding and abetting an investment adviser, namely, Ruby Corporation, in employing a scheme to defraud a client or prospective client, and engaging in a practice which operated as a fraud and deceit upon a client, through the use of the mail and instrumentalities of interstate commerce.
Counts 6 through 8 charge that Franz committed income tax evasion for calendar years 2007, 2008, 2009 by filing false and fraudulent tax returns. Counts 9 and 10 charge Franz with Income Tax Evasion for calendar years 2010 and 2011 by failing to make an income tax return as required by law, and by conducting his business affairs and personal expenditures in a manner designed to conceal his receipt and disposition of income and assets from the Internal Revenue Service. The total amount of additional tax due and owing by Franz for the tax evasion charged in Counts 6 through 10 is $245,352, according to the information.
The case is being prosecuted by Assistant U.S. Attorney Christian H. Stickan and Trial Attorney Scott M. Watson, following investigation by agents of the FBI, Cleveland Office and IRS-Criminal Investigations, Cleveland Office, with assistance of the United States Securities and Exchange Commission, Chicago, Illinois.
Arlington Man Sentenced to 55 Months in Federal Prison for Conspiring to Commit Wire FraudRead the Press Release
Defendant Represented Himself as a CPA to Assist Individuals and Businesses
Obtain Fraudulent Line-of-Credit LoansDALLAS — Robert Pauley, 56, of Arlington, Texas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 55 months in federal prison, and ordered to pay $2,595,000 in restitution for assisting individuals and businesses with fraudulent line-of-credit loans. Judge Kinkeade ordered that Pauley surrender to the Bureau of Prisons on January 15, 2014. Judge Kinkeade further ordered Pauley to surrender his Certified Public Accountant (CPA) license and to not practice in the field of accounting during the term of his supervised release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In November 2012, Pauley pleaded guilty to an Information charging one count of conspiracy to commit bank fraud, admitting that from at least July 2008 through at least December 2011, he conspired with others to make and submit false and fraudulent statements to banks in connection with personal and business line-of-credit loans. A line-of-credit loan is a no-collateral loan based on the financial condition of the borrower.
The financial institutions funded the loans based on favorable personal financial statements and false tax returns prepared by Pauley for the loan applications. Pauley admits that he misrepresented his status as a CPA to the financial institutions by failing to inform them that his CPA license had been revoked. He received a percentage of the loan funds as a commission.
In November 2010, for example, Pauley prepared and submitted a loan application and supporting documents that contained false and fraudulent information to Regions Bank for a $200,000 loan in the name of DFW Royal Investments LLC. Among other things, the tax returns provided to Regions Bank were fictitious in that they falsely identified the guarantor’s personal income as more than $300,000, when in was fact, it was approximately $38,000. Pauley admitted that he submitted the false tax returns with the specific intent to defraud Regions Bank and that by making the false statements to secure the $200,000 loan, Pauley placed Regions Bank at risk of financial loss or civil liability.
The case was investigated by the FBI. Assistant U.S. Attorney J. Nicholas Bunch was in charge of the prosecution.
Angelina County Man Guilty of Killing Neches River AlligatorRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 38-year-old Lufkin, Texas, man has pleaded guilty to violating state and federal wildlife laws, announced U.S. Attorney John M. Bales today.
Michael Wayne Scoggin pleaded guilty to killing an animal protected as an endangered species today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, on Apr. 8, 2011, Scoggin shot and killed a 13-foot American alligator, weighing approximately 800 pounds, with a .22 caliber rifle. Scoggin shot the alligator from a canoe he and his girlfriend were traveling in on the Neches River in Trinity County, Texas. Scoggin then tied the alligator alongside the canoe and towed it down river to an area where he and a friend were able to load it on to his truck for transport. In the following days, pictures of Scoggin and others with the dead alligator appeared posted at a local Academy Sporting Goods store and on the internet. Scoggin took the alligator to a Grapeland, Texas taxidermy shop and paid $1,542.53 to have the alligator skull and hide tanned and preserved. The skull, hide and rifle were recovered by federal and state law enforcement officers in March 2012.
It is a violation of Texas law to kill an alligator in Trinity County at any time other than from September 10th to September 30th. Further it is a violation of Texas law to shoot an alligator from a boat in public water. The Endangered Species Act prohibits the taking of any threatened species of fish or wildlife in violation of any federal or state regulation pertaining to such species. Alligators are listed as a threatened species pursuant to the Endangered Species Act.
Scoggin faces up to one year in federal prison and a $100,000.00 fine. A sentencing date has not been set.This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, Houston, and the Texas Parks and Wildlife Department, Criminal Investigations Division, and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov . Connect with its Facebook page at www.facebook.com/usfws , follow its tweets at www.twitter.com/usfwshq and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq .
Albuquerque Woman Sentenced to Twenty-Five Months in Federal Prison for Conviction on Aggravated Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Shelly Nichols, 43, of Albuquerque, N.M., was sentenced this afternoon to 25 months in federal prison followed by three years of supervised release for her conviction on aggravated identity theft charges. Nichols, together with her co-defendant, also was ordered to pay $141,233.57 in restitution.
Nichols, who is now known by her married name Shelly Lopez, and her co-defendant, Donna Gabaldon, 42, of Rio Rancho, N.M., were charged in March 2012, in a 60-count indictment alleging identity theft, passing counterfeit checks with the intent to deceive bank officials, and aggravated identity theft charges.
Nichols pleaded guilty to one count of identity theft and two counts of aggravated identity theft charges on May 16, 2013. In entering her guilty plea, Nichols admitted that from Oct. 2009 through June 2010, she and Gabaldon cashed fake payroll checks at Wal-Mart stores in New Mexico, Arizona, Utah, Colorado and Texas. According to her plea agreement, Nichols created fake drivers’ licenses with false names, addresses and license numbers that had photographs of herself or Gabaldon on them. Nichols also created fake checks made payable to the individuals identified in the fake drivers’ licenses. Nichols and Gabaldon then used the fake drivers’ licenses to cash the fake checks at Wal-Mart stores. When cashing the fake checks, Nichols and Gabaldon used the social security numbers of real people who did not know the women were using their social security numbers and had not given them permission to do so. Gabaldon gave Nichols half of the money that she obtained from cashing the fake checks.
Nichols also admitted that Gabaldon and she fraudulently received at least $141,233.57 by cashing fake payroll checks at Wal-Mart stores. Nichols and Gabaldon obtained additional cash and other items of value by making purchases using fake personal checks that Nichols printed.
Gabaldon pleaded guilty on May 25, 2012, to two counts of aggravated identity theft. On Sept. 19, 2012, Gabaldon was sentenced to 24 months in prison followed by a year of supervised release.
Nicholas and Gabaldon are required jointly to pay $141,233.57 in restitution to the victims of their criminal conduct. Nichols also was ordered to forfeit a 2009 Hummer, computers and other electronic equipment.
“Shelly Nichols was a top five Property Crime Offender in the city of Albuquerque and State of New Mexico when she was arrested in this case,” said Richard Ferretti, Resident Agent in Charge of the Albuquerque Resident Office of the U.S. Secret Service. “Identity theft related investigations are a top priority of the U.S. Secret Service in Albuquerque, and we work closely with our partners in the Albuquerque Financial Crimes Task Force to aggressively investigate, arrest, and prosecute those committing these crimes.”
Acting U.S. Attorney Steven C. Yarbrough commended the U.S. Secret Service special agents who investigated the case and Assistant U.S. Attorney Cynthia L. Weisman who prosecuted the case.
Administrator and Employee of Two Miami Home Health Companies Sentenced for Role in $74 Million Health Care Fraud SchemeRead the Press Release
The administrator and employee of two Miami health care companies was sentenced today to serve 60 months in prison for her participation in a $74 million home health Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Myriam Acevedo, 63, of Miami, was sentenced by U.S. District Judge Marcia G. Cooke in the Southern District of Florida. In May 2013, Acevedo pleaded guilty, without a plea agreement, to one count of conspiracy to pay health care kickbacks and two counts of payment of health care kickbacks.
According to court documents, Acevedo was an administrator of LTC Professional Consultants Inc. (LTC) and an employee of Professional Home Care Solutions Inc. (Professional), Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. Acevedo and her co-conspirators agreed to and actually did operate LTC and Professional for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Acevedo’s primary role in the scheme was to pay kickbacks and bribes to patient recruiters of LTC and Professional. As part of this role, Acevedo and others would distribute cash to patient recruiters in exchange for providing patients to LTC and Professional, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Acevedo and her co-conspirators would use these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which Acevedo knew was in violation of federal criminal laws.
From approximately September 2007 through June 2012, LTC and Professional submitted approximately $41 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $27 million for these fraudulent claims. Acevedo was part of an overall scheme that fraudulently billed Medicare more than $74 million.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the 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.
22 October 2013
Virginia Businessman Pleads Guilty to Mishandling of Asbestos-Containing MaterialsRead the Press Release
NORFOLK, Va. – Billy J. Avery, 82, of Virginia Beach, Va., pleaded guilty today to violating the asbestos National Emission Standards for Hazardous Air Pollution (NESHAP), in violation of the Clean Air Act.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and David G. McLeod, Jr., Special Agent in Charge of the Environmental Protection Agency’s (EPA) Criminal Investigation Division, Philadelphia Area Office, made the announcement after the plea was accepted by United States District Judge Henry Coke Morgan.Avery faces a maximum penalty of five years imprisonment when he is sentenced on January 28, 2014.
In a statement of facts filed with the plea agreement, Avery served as the Secretary and Treasurer of EC&C Environmental (EC&C), an environmental services company. Avery operated EC&C out of his residence located on Gulls Quay, Virginia Beach, Virginia. In July 2012, a contractor was retained to demolish the Wayside Motor Inn located at 400 South Military Highway in Virginia Beach. Prior to the demolition, the contactor subcontracted EC&C and Avery to conduct an asbestos inspection of the hotel building to identify the presence and location of asbestos-containing materials (ACM). During the inspection, Avery took samples of suspected ACM and provided the samples to a chemical laboratory in Richmond, Virginia for analysis. The laboratory testing results confirmed the presence of asbestos-containing materials. The Virginia Department of Labor and Industry (DOLI) issued an asbestos removal permit to EC&C to remove the 1,450 linear feet of regulated asbestos-containing material from the Wayside Motor Inn. While removing and disposing the regulated asbestos-containing materials from the Wayside Motor Inn, EC&C and Avery did not follow the asbestos work practice standards and procedure required under the National Emissions Standards for Hazardous Air Pollutants (NESHAPs). During a meeting with the Chesapeake Deputy Fire Marshal and a DOLI inspector on February 6, 2013 regarding dumpsters Avery used in the Wayside Motel and other projects, Avery admitted that at least one of the dumpsters contained friable asbestos waste from various projects, including the waste from the Wayside Motor Inn.This case was investigated by the Environmental Protection Agency (EPA) Criminal Investigation Division; the Chesapeake, Virginia Fire Marshal’s Office; and the Virginia Department of Environmental Quality (DEQ). Assistant United States Attorney Joseph L. Kosky and Special Assistant United States Attorney David Lastra are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Vero Beach Resident Sentenced for Possession with Intent to Distribute Methylone and Firearm ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Deryl Loar, Sheriff, Indian River County Sheriff’s Office, announce the sentencing of Omar Edgar Outten, 30, of Vero Beach, Florida. Outten was sentenced by U.S. District Court Judge Jose E. Martinez to 75 months in prison, followed by three years of supervised release.
The three count indictment, to which Outten pleaded guilty on August 5, 2013, charged him with possessing with intent to distribute a controlled substance - Methylone, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C), possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii), and possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
According to the criminal complaint filed on June 25, 2013, on March 25, 2013, Indian River County Sheriff’s Office (IRCSO) detectives executed a state search warrant at the defendant’s home. During the search, IRCSO detectives found and confiscated 132 capsules filled with methylone, multiple empty pill capsules, $1,225.00, a Bersa model Thunder 380, .380 caliber pistol loaded with eight rounds of ammunition, a 12 gauge Mossberg shotgun model 835 Ulti-Mag that had the butt stock removed from the firearm, 50 rounds of .380 caliber ammunition, and eight 12 gauge shotgun shells. In addition, IRCSO detectives seized approximately nine grams of marijuana.
Mr. Ferrer commended the investigative efforts of ATF and the Indian River County Sheriff’s Office.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Deputy Attorney General Cole and Panamanian Attorney General <br /> Belfon Sign Agreement to Share Forfeited AssetsRead the Press Release
Deputy Attorney General James M. Cole and Panamanian Attorney General Ana Belfon today signed an agreement in Panama City, Panama, to share more than $36 million in forfeited criminal assets with the Government of Panama. The asset sharing is based on the extensive and wide-ranging assistance provided by the Government of Panama in connection with a 2000 money laundering case brought involving Panama-based jewelry stores. The agreement acknowledges the first time the Department of Justice has shared forfeited assets with the Government of Panama and is the second largest sum ever shared by the Department of Justice with a foreign government.
“Today’s agreement marks the Department of Justice’s recognition, through asset sharing, of the remarkable assistance that the Panamanian authorities have provided,” Deputy Attorney General James M. Cole said. “For more than 12 years, the assistance of the Panamanian authorities has been consistent, reliable, and broad-ranging. As we see, in this case, how much can be accomplished through international cooperation, let us resolve to continue this same high level of cooperation in future cases.”
The asset sharing results from an investigation that United States Drug Enforcement Administration (DEA) agents and Panamanian authorities began in 1998 into Speed Joyeros S.A., which operated in the Colon Free Trade Zone in Panama. The owners were found to be laundering massive sums of narcotics, trafficking proceeds through Speed Joyeros and another jewelry business, Argento Vivo S.A.
In 2000, a federal grand jury in the Eastern District of New York indicted the businesses and their owners on charges of money laundering and money laundering conspiracy. At the request of the United States, Panamanian authorities restrained the assets of the businesses and extradited their owners to the United States for trial. The owners pleaded guilty in April 2002, and the U.S. court issued a final order of forfeiture in May 2006 for all corporate assets of Speed Joyeros and Argento Vivo. In October 2008, the Panamanian Supreme Court ordered enforcement of the U.S. forfeiture order and in April 2010 authorized the transfer to the United States of 468 boxes filled with 10 tons of gold and silver jewelry, gem stones and watches for liquidation by the U.S. Marshals Service. In May 2011, more than $52 million in proceeds from the liquidation was deposited into the Department of Justice Assets Forfeiture Fund.
In recognition of Panama’s assistance in the case, the Department of Justice relied on statutory authority to share 70 percent of the net forfeited assets with the Government of Panama. The Deputy Attorney General approved the sharing in August 2010, and the Department of State concurred with the decision in March 2012, contingent upon the conclusion of an agreement with the Government of Panama to implement the transfer of the funds. United States law requires that international asset sharing must be authorized by an international agreement between the United States and the recipient country.
Because of the large sum of money being shared, the agreement establishes a six-member Executive Sharing Committee to oversee the sharing process. The agreement authorizes the committee to approve the selection of programs, projects and other expenditures consistent with the goal of strengthening the capacity of the Republic of Panama to combat money laundering and forfeit illicit assets in criminal investigations and prosecutions. The agreement provides for representation on the committee from the United States Departments of Justice, Treasury, and State, and from the Panamanian Attorney General’s Office and Ministries of Public Security and Foreign Affairs. The signing of the case-specific agreement will enable the Executive Sharing Committee to solicit and consider specific proposals for funding.
Other Central American countries that have received asset sharing from the United States in connection with other U.S. forfeitures include Costa Rica, Guatemala and Honduras. The largest recipient to date has been Guatemala, having received nearly $1 million in sharing stemming from five separate forfeiture cases. Over the past 24 years, the United States has shared more than $277 in forfeited criminal assets with 54 countries in recognition of their assistance to United States forfeiture investigations and proceedings.
Two People from Rapid City Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, woman convicted of Conspiracy to Possess with Intent to Distribute a Controlled Substance and a Rapid City man convicted of Possession with Intent to Distribute a Controlled Substance were sentenced on October 16 and 17, 2013, respectfully, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Danielle Running Shield, age 32, was sentenced to time served, 4 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Anthony Long Soldier, age 33, was sentenced to 100 months of imprisonment, 4 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
On October 14, 2012, Long Soldier’s vehicle was pulled over by the Rapid City Police Department after a pursuit. Running Shield and another individual were passengers. Before Long Soldier's vehicle stopped, the other individual jumped out. Long Solider and Running Shield were arrested and a bag containing more than 200 grams of methamphetamine was found on the floor of the vehicle. Running Shield pled guilty on June 12, 2013, and Long Solder pled guilty on June 13, 2013.
This case was investigated by the Drug Enforcement Administration, the Rapid City Police Department and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ted L. McBride prosecuted the case. Long Soldier remained in the custody of the U.S. Marshals Service.Two Men Found Guilty of Aggravated Assault While Armed for 2012 Shooting in Northwest Washington-Bullets Fired into A Block Crowded with Adults and Children-Read the Press Release
WASHINGTON – Carlito Bailey, 22, and Rickey Watkins, 22, both of Washington D.C., were found guilty by a jury on Oct. 11, 2013 of charges stemming from a shooting in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Bailey and Watkins were found guilty following a trial in the Superior Court of the District of Columbia of aggravated assault, assault with a dangerous weapon, and related firearms offenses. They are to be sentenced on Dec. 10, 2013 by the Honorable Robert I. Richter.
According to the government’s evidence, on the night of May 5, 2012, Bailey, Watkins, and a third unidentified shooter traveled to Northwest Washington armed with firearms. The three men approached the intersection of Johnson Avenue and R Street NW, where they opened fire, shooting at least ten bullets into a block crowded with adults and children gathered to celebrate a birthday party. One of the adults was shot several times in the legs. After firing the shots, the men fled on Johnson Avenue.
Bailey and Watkins were apprehended approximately 24 minutes after the shooting in a car with two firearms. One of the firearms was a ballistics match to six shell casings and a bullet from the crime scene, and a swab from the slide of that weapon yielded DNA that matched the DNA profile of Bailey. Cell site data placed Watkins at the scene of the shooting.
In announcing the verdicts, U.S. Attorney Machen commended the work of the Metropolitan Police Department Second District officers who apprehended the defendants and recovered the key evidence shortly after the shooting, as well as the Third District detectives who investigated the case. He also praised FBI Special Agent Kevin Horan for his valuable work analyzing cell phone records and testifying as a government expert at trial. In addition, he commended those who handled the case for the U.S. Attorney’s Office, including Litigation Technology Specialists Joe Calvarese, Kimberly Smith and Ron Royal and Paralegal Specialists Allison Daniels and Mia Beamon. Finally, he acknowledged the efforts of Assistant U.S. Attorney Ephraim (Fry) Wernick and former Assistant U.S. Attorney Mary Chris Dobbie, who indicted the case, and Assistant U.S. Attorneys Ann Carroll and Jonathan Kravis, who prosecuted the case.
13-361Two Legacy Network Executives SentencedRead the Press Release
Father and Son Ordered to Pay Over $1.6 Million in Restitution
POCATELLO – U.S. Attorney Wendy J. Olson announced today that the former founder and chairman of the board of The Legacy Network, an insurance brokerage agency in Rexburg, Idaho, and his son were sentenced this afternoon in United States District Court in Pocatello.
Adrian Rand Robison, 67, of Rigby, Idaho, was sentenced to four months in prison and ordered to pay restitution of $1,371,634 for mail fraud. Chief U.S. District Judge B. Lynn Winmill also sentenced Robison to 18 months of supervised released with eight months of home detention, and fined him $20,000.
Adrian Russell Robison, 38, of Idaho Falls, Idaho, the former chief executive officer of the company, was also sentenced to four months in prison for making and subscribing false tax returns. Russell Robison was also sentenced to 12 months of supervised release, the first eight months on home detention, fined $10,000, and ordered to pay restitution to the IRS of $270,631. The defendants were charged by information in May 2013; they pleaded guilty to the charges in June.
According to the plea agreement, Rand Robison, a licensed insurance agent, owned a majority interest in The Legacy Network, a company that brokered the sale of life insurance policies between the carriers that offered the policies and the independent insurance agents that marketed the policies to clients. In return for its services, The Legacy Network received a commission paid by the carriers for each policy sold. According to the plea agreement, Rand Robison admitted that he encouraged some high net-worth clients to apply for high face-value life insurance policies with the promise of rebating all or part of the first-year premiums back to the customer. Robison further admitted that he misrepresented in agent reports and other contractual documents, that he would not rebate, or otherwise finance, the premium payments of his clients. The Legacy Network received commission payments from the insurance carriers of approximately 105 to 138 percent of the first-year premium. Robison admitted that with those funds, he rebated some of the premiums to some high net-worth clients and kept the remainder. From 2006 to 2009, the Legacy Network received approximately $1,371,634 in commissions from life insurance carriers on the policies of a group of their high net-worth clients; they rebated approximately $923,497 to the clients and kept approximately $448,137.
According to the plea agreement, Russell Robison was aware that agents of The Legacy Network rebated all or part of the premium payments to some of their high net-worth clients, and had, in fact, signed rebate checks to the clients. Neither Robison nor The Legacy Network issued IRS Forms 1099-MISC recording the rebates as income to the high net-worth clients. The company’s internal books and records recorded the rebates as deductible business expenses. After some clients’ policies lapsed due to non-payment of premiums—which occurred typically in the second year of the policies—some policies were replaced with policies issued by different insurance carriers. According to the plea agreement, Robison admitted that for tax years 2007, 2008 and 2009, he filed a partnership income tax return for The Legacy Network, knowing that the returns contained false information by improperly overstating expenses for rebates paid.
The cases were the result of a joint investigation by Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, and Idaho Department of Insurance.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Two Army National Guard Soldiers Plead Guilty to Schemes to Defraud U.s. Army National Guard BureauRead the Press Release
Two current U.S. Army National Guard soldiers have pleaded guilty for their role in bribery and fraud schemes that caused a total of at least $70,000 in losses to the U.S. Army National Guard Bureau.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Sergeant Annika Chambers, 28, of Houston, pleaded guilty today to one count of conspiracy and one count of bribery. Specialist Elisha Ceja, 27, of Barboursville, W.V., previously pleaded guilty to the same charge on Oct. 1, 2013. The cases against both defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 17 of whom have pleaded guilty.
According to court documents filed in both cases, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker, Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $3,000 in bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Ceja and Chambers both admitted that they paid Army National Guard recruiters for the names and Social Security numbers of potential Army National Guard soldiers. They further admitted that they used the personal identifying information for these potential soldiers to falsely claim that they were responsible for referring the potential soldiers to join the Army National Guard.
As a result of these fraudulent representations, Ceja collected approximately $12,000 in fraudulent bonuses, and Chambers collected approximately $17,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.Ceja and Chambers are scheduled to be sentenced before U.S. District Judge Lee H. Rosenthal in Houston on Dec. 19, 2013, and March 11, 2013, respectively.
These cases are being investigated by Special Agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. The cases are being prosecuted by Trial Attorneys Sean F. Mulryne, Mark J. Cipolletti, and Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.
Two Army National Guard Soldiers Plead Guilty to Schemes to Defraud U.S. Army National Guard BureauRead the Press Release
To Date, 16 Individuals Have Pleaded Guilty in Ongoing Corruption Investigation
HOUSTON – Two current U.S. Army National Guard soldiers have pleaded guilty for their role in bribery and fraud schemes that caused a total of at least $70,000 in losses to the U.S. Army National Guard Bureau.
U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Annika Chambers, 28, of Houston, pleaded guilty today to one count of conspiracy and one count of bribery. Elisha Ceja, 27, of Barboursville, W.V., previously pleaded guilty to the same charge on Oct. 1, 2013. The cases against both defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 16 of whom have pleaded guilty.
According to court documents filed in both cases, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $3,000 in bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Ceja and Chambers both admitted that they paid Army National Guard recruiters for the names and Social Security numbers of potential Army National Guard soldiers. They further admitted that they used the personal identifying information for these potential soldiers to falsely claim that they were responsible for referring the potential soldiers to join the Army National Guard.
As a result of these fraudulent representations, Ceja collected approximately $12,000 in fraudulent bonuses and Chambers collected approximately $17,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.
Ceja and Chambers are scheduled to be sentenced before U.S. District Judge Lee H. Rosenthal in Houston on Dec. 19, 2013, and March 11, 2013, respectively.
These cases are being investigated by Special Agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. The cases are being prosecuted by Assistant U.S. Attorney John Pearson and Trial Attorneys Sean F. Mulryne, Mark J. Cipolletti and Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section.
Twice as Many Americans Abuse Rx DrugsAs Cocaine, Heroin CombinedRead the Press Release
KANSAS CITY, KAN. - Twice as many Americans abuse prescription drugs as the number abusing cocaine, heroin, hallucinogens and inhalants combined, U.S. Attorney Barry Grissom said today. Grissom called on Kansans to help solve the problem by participating in the Drug Enforcement Administration’s National Prescription Drug Take Back Day on Saturday, Oct. 26.
“All of us need to empty our medicine cabinets of potentially dangerous expired, unused or unwanted prescription drugs,” Grissom said. “Studies show that a majority of abused prescription drugs are obtained from family and friends, including from home medicine cabinets.”
Grissom said more than 6 million Americans abuse prescription drugs and more accidental deaths are caused by drug overdoses than by car accidents.
About 100 collection sites will be open from 10 a.m. to 2 p.m. Saturday at locations across Kansas. For a current list of drop off sites in your area, visit www.dea.gov and click on the “Got Drugs?” logo.
Tonawanda Buffalo Convicted by Jury of Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Anthony Bishop, 42, of Tonawanda, New York, was convicted by a federal jury of conspiracy to possess with intent to distribute more than five kilograms of cocaine. As a prior convicted drug felon, the defendant faces a mandatory minimum of 20 years in prison, a maximum of life and a $20,000,000 fine.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that on February 13, 2012, the defendant placed a call to the Buffalo Office of the Drug Enforcement Administration. Bishop alerted agents to an alleged drug trafficking conspiracy transporting and distributing 50 kilograms a month from Chicago to Buffalo. That information resulted in the arrest of seven defendants, all of whom have been convicted and are awaiting sentencing. During the course of that investigation, it was determined that Bishop was actually part of the conspiracy, and that he made the initial call to law enforcement to remove possible competitors.
Also during the investigation, agents seized more than $550,000 in cash, approximately two kilos of cocaine, other drug paraphernalia, four weapons, and a Ford Mustang.
The conviction is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.
Sentencing is scheduled for February 28, 2014 at 12:30 P.M. before U.S. District Court Judge Richard J. Arcara.