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17 October 2013
Mortgage Company Executive Sentenced in Fraud CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General, and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, announced the sentencing of Patrick J. Mansell, 68, of Boca Raton, FL, Vice President of Coastal States Mortgage Corporation (Coastal). Mansell was sentenced to a statutory maximum penalty of five years in prison, followed by three years of supervised release by U.S. District Judge Robin S. Rosenbaum. Mansell previously pled guilty to conspiracy to commit wire fraud to defraud government sponsored entities, Fannie Mae and Freddie Mac.
According to the Information, from April 2007 through November 2008, in the Southern District of Florida, Coastal was a licensed mortgage brokerage whose primary business was the selling and servicing of mortgage loans for both Freddie Mac and Fannie Mae. At the change of plea hearing, Mansell admitted that Coastal failed to remit some of the mortgage loan payoffs it received and processed from borrowers to Freddie Mac and Fannie Mae, as required by the contractual agreement entered into between them. This resulted in an $18,735,903.77 loss to Freddie Mac and Fannie Mae. The misappropriation was concealed by the regular submission of false financial reports and monthly mortgage payments by Coastal, via an interstate internet portal, to Freddie Mac and Fannie Mae. These monthly mortgage payments by Coastal misled the lenders into believing the loans were still performing.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency, Office of the Inspector General and Florida’s Office of Financial Regulation. The case was prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
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.
Mortgage Broker Sentenced in $39 Million Mortgage FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General, announced the sentencing of defendant Quelyory A. Rigal, 38, of Homestead, to 200 months in prison, followed by five years of supervised release by U.S. District Judge William J. Zloch.
Rigal was indicted with seven other defendants in Case No. 12-60088-CR-Zloch for fraudulently obtaining mortgages for the purchase of condominium units at Marina Oaks Condominiums in Fort Lauderdale, FL. The indictment charged defendant Rigal with conspiracy to commit wire fraud and mail fraud, as well as substantive counts of wire fraud and mail fraud. Defendant Rigal was found guilty on all counts charged in the indictment.
The other defendants were: Juan Carlos Sanchez, of New York, N.Y., Sandra P. Campo, of Colombia, Osbelia Lazardi, of Southwest Ranches, FL, Dayanara Montero, of Miramar, FL, Edward R. Mena, of Miami, FL, Celeste Mota, of Fort Myers, FL, and David Arboleda, of Doral, FL. With the exception of Rigal who proceeded to trial, all other defendants plead guilty to conspiracy to commit mail and wire fraud. Defendant Sanchez was sentenced to 180 months in prison and three years of supervised release. Defendants Lazardi was sentenced to 25 months in prison and three years of supervised release. Defendant Campo was sentenced to 70 months in prison and five years of supervised release. Defendant Mena was sentenced to 54 months in prison and three years of supervised release. Defendant Arboleda was sentenced to 30 months in prison and three years of supervised release. Defendant Montero was sentenced to 22 months in prison and three years of supervised release. Defendant Mota was sentenced to five years of supervised release.
According to the indictment, from January 2007 through November 2008, the defendants conspired to recruit individuals willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyers’ incentive,” which payment was not disclosed to the lenders or reflected on any of the closing documents. The conspirators would then prepare materially false mortgage applications for the buyers on HUD Uniform Loan Application Form 1003. These forms contained false information as to material facts regarding the borrowers’ credit worthiness in order to qualify the borrowers for mortgages to purchase the Marina Oaks Condominiums. The conspirators created false documents to support the mortgage applications. Once the loans closed, the conspirators diverted portions of the mortgage proceeds for their personal use and benefit. The indictment alleges that the conspirators obtained approximately $39 million in 163 fraudulent mortgage loans at Marina Oaks, resulting in $34 million in losses to the various lenders including Fannie Mae, which reported losses over $4.1 million to date, while Freddie Mac faces potential exposure of an additional $8.5 million.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency, Office of the Inspector General, as the lead investigative agency in the prosecution of Rigal, and IRS-CI and the Broward Sheriff’s Office for their participation in this investigation. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
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.
Melinda Wormuth Arraigned on Two Felony ChargesRead the Press Release
Town Of Halfmoon Supervisor Charged in Two-Count Indictment Alleging Extortion
“Under Color of Official Right”and False StatementsALBANY, NEW YORK – Town of Halfmoon Supervisor Melinda Wormuth appeared today before Magistrate Judge Randolph F. Treece in federal court in Albany to be arraigned on two felony charges, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation.1
Ms. Wormuth, 46, of Halfmoon, NY was charged yesterday in a sealed indictment, which was unsealed today at her initial appearance. Count One of the Indictment charges Ms. Wormuth with accepting money in return for her official actions. Specifically, she is charged with having received $7,500 in cash, which was characterized as “consultant fees,” in return for using her official position as Town Supervisor and as a member of the Saratoga County Board of Supervisors to lobby for the legalization of professional Mixed Martial Arts. Count Two of the Indictment charges her with lying to federal investigators about legal advice she claimed to have obtained while accepting the “consultant fees.” If convicted, Ms. Wormuth faces up to 20 years in prison on Count One and up to 5 years in prison on Count Two. She could also be ordered to pay a fine of up to $250,000 on each count.
The charges are the result of an ongoing investigation by the Federal-State Anti-Corruption Task Force that includes the Federal Bureau of Investigation, the New York Attorney General’s Office, the Internal Revenue Service, the New York Comptroller’s Office, and others.
United States Attorney Hartunian stated: “These charges are an example of the culture of corruption which has no place in New York State public offices. Citizens trust their public officials to behave ethically, and it is a travesty when this pubic trust is broken. I will continue to work with my federal and state partners to ensure that public officials uphold that trust and, when they don’t, are held accountable for their actions.”
United States Attorney Hartunian also cited the cooperation of state and federal investigators in pursuing this investigation and the coordination of state and federal prosecutors in developing the specific charges brought today.
Special Agent in Charge Vale stated, “Today’s arrest demonstrates the FBI’s commitment to the investigation of corruption at all levels of government. Together with our law enforcement partners, the FBI will continue to work to ensure that all those who participate in corrupt schemes, which erode our communities and defraud those they are entrusted to serve, are held accountable for their actions.”
The prosecution is being handled by Assistant U.S. Attorney Michael Olmsted in Syracuse, NY. Press inquiries should be directed to Assistant U.S. Attorney Elizabeth Coombe.
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1An Indictment is a mere accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mark J. Avery indicted for $52 million dollar wire fraud and money laundering schemeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a former Anchorage resident was charged by a federal grand jury with 5 counts of wire fraud and 9 counts of money laundering.
Mark J. Avery, 54, of San Francisco, California, has been indicted by a federal grand jury in Anchorage alleging he defrauded May Wong Smith and May Smith Trust, a trust of which he was an appointed trustee, of over $52 million dollars for personal gain.
The Ninth Circuit Court of Appeals reversed Avery’s conviction on similar charges for honest services wire fraud earlier this year after the Supreme Court ruled that the theory of honest services fraud under which Avery was previously convicted was held unconstitutional. This indictment alleges that Avery, a trustee and lawyer to the May Smith Trust, engaged in a scheme to defraud the trust and May Wong Smith. Avery held those positions from early 2002 and received yearly compensation in the amount of $600,000 in trustee fees for his role as trustee and fiduciary to these trusts. Avery was also owner/operator of Avery and Associates, L.L.C., Security Aviation, Inc., and Regional Protective Services, L.L.C., located at 3230 C Street, Anchorage, Alaska. Avery’s companies, many of which were created after receipt of trust funds, were engaged in air charter services, aeromedical evacuation, legal services, development of real property, and court imposed electronic monitoring.
According to the indictment, May Wong Smith was born in China in 1922 and shortly after World War II; May Wong Smith married Stanley Smith, a citizen of Australia. Stanley Smith amassed millions of dollars from post-war business investments and became a quiet benefactor of various charitable organizations. Stanley Smith died in 1968 and May Wong Smith never remarried.
The May Smith Trust, the trust Avery is charged with defrauding, was established on October 10, 1982, to provide for May Wong Smiths support and maintenance during her life and certain charitable purposes after her death. May Wong Smith was a trustee of her own trust since inception.
In the early 1980's, May Wong Smith began to show signs of dementia. From that time, her mental condition began to deteriorate to the point where she was not capable of living without assisted care. Due to her mental condition she had full time live-in care from at least 1991 until her death in Nassau, Bahamas on July 15, 2006. In spite of her compromised mental capacity, she remained a trustee until her death in July 2006.
The Indictment alleges that Avery engaged in a scheme that involved pledged assets of the May Smith Trust as collateral for a $50 million dollar loan made to Avery.
Avery is charged with defrauding May Wong Smith and the May Smith Trust by using the $50 million loan funds for his personal use with no written business plan, and, among other things, no controls over how the money was to be spent or repaid. Avery is also charged with laundering the proceeds of the fraud funds obtained from the pledging of assets from the May Smith Trust not only to create and purchase businesses, but to pay off two home mortgages, personal debt, and to purchase property for his personal benefit. Some of the property included, real property, two World War II era fighters, a P-51D Mustang, and an F4U-4 Corsair. Other purchases included, other antique aircraft, a 47' Carver Yacht, a 37' heavy-duty patrol boat, all-terrain vehicles, motor homes and snow machines. Avery is charged with titling these assets either in his business or in his own name. The indictment further alleges that none of the assets or scheme resulted in any benefit to the May Smith Trust or May Wong Smith.
The Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation Division conducted the investigation leading to the indictment in this case.An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Manchester Man Sentenced to Twelve Years in Federal Prison for Drug and Gun ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE –Raymond Negron, 32, of Manchester, New Hampshire was sentenced in United States District Court for the District of New Hampshire to twelve years in prison for unlawful distribution of oxycodone and cocaine, unlawful possession with the intent to distribute oxycodone and cocaine, sale of a firearm to a prohibited person, possession of a firearm with an obliterated serial number, and possession of an unregistered firearm, announced United States Attorney John P. Kacavas.
The investigation began in 2011, when Negron was suspected of trafficking drugs within the city of Manchester. During the course of the investigation, Negron sold quantities of oxycodone tablets and cocaine on four separate occasions. During one of the drug sales, Negron also sold an SKS 7.62 caliber rifle to an individual he knew to have a prior felony conviction. The investigation further revealed that the firearm had been stolen from a pawn shop in Miami, Florida.
On March 20, 2012, a search warrant was executed at Negron’s Hanover Street residence, where investigators discovered quantities of oxycodone tablets and cocaine as well as items used for packaging and distributing narcotics and a “sawed off” Mossberg 20 gauge bolt action shotgun which had an obliterated serial number.
The case was investigated by the United States Drug Enforcement Administration’s High Intensity Drug Trafficking Area Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Hampshire State Police, and the Manchester, New Hampshire Police Department. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.Long Island Doctor Convicted of Conspiracy to Distribute Oxycodone and Distribution of OxycodoneRead the Press Release
Today, following three weeks of trial, a jury in federal court in Central Islip, New York, returned a verdict convicting Long Island doctor Leonard I. Stambler of Baldwin Harbor, New York, of conspiracy to distribute oxycodone and distribution of oxycodone, in connection with prescriptions that he provided to patients without a legitimate medical purpose. The defendant faces imprisonment of up to 20 years at sentencing. Sentencing is scheduled for February 14, 2014, before United States District Judge Joseph F. Bianco. After the verdict, the defendant’s bail was revoked, and he was ordered detained pending sentencing
The conviction was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York; Thomas V. Dale, Commissioner, Nassau County Police Department; Joseph A. D’Amico, Superintendent, New York State Police; and Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York.
At trial, the government’s evidence established that Stambler provided prescriptions for hundreds of oxycodone pills to two of his patients without a legitimate medical purpose and outside the course of a professional medical practice, and also conspired with those patients and assisted them in the sale of pills that he prescribed. On November 21, 2011, investigators with the DEA Task Force observed Stambler driving his patient, Christopher Adams, to a pharmacy in East Rockaway, New York, where Stambler and Adams filled a prescription that Stambler had written in the name of Adams’s girlfriend, Nancy Cook. As investigators watched, Stambler then drove Adams to a nearby location to meet with a third individual where some of the oxycodone pills were exchanged for cash. Investigators stopped Stambler’s vehicle shortly after the drug deal. The government’s evidence also established that on a separate occasion, Stambler drove Cook, who was also Stambler’s patient, to a home in East Rockaway where she sold oxycodone pills to the same individual involved in the November 21, 2011, drug deal. Both Adams and Cook testified at trial about Stambler’s participation in the drug transactions as well as their own destructive addiction to oxycodone.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug, and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin like euphoria.
“Instead of living up to his responsibilities as a trusted physician, Stambler assumed the role of a drug dealer, acting to put hundreds of oxycodone pills onto the streets of Long Island for no valid medical reason, but simply to make money,” stated United States Attorney Lynch. “This conviction should serve as a warning to any physicians engaged in such conduct that in addition to losing his or her license to practice medicine, they will face the prospect of a felony conviction.” Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
Stambler’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, the United States Attorney’s Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 120 federal and local criminal prosecutions, taken civil enforcement action against a pharmacy, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant
Name: LEONARD I. STAMBLER
Age: 62Local Woman Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
St. Louis, MO – CARLA MATHEWS pled guilty to a charge involving the sex trafficking of two area women by force and intimidation on Thursday, October 10, before United States District Judge Henry Autrey.
According to court documents, between January 2010 and December 2011, Carla Mathews recruited and maintained women, physically assaulted them and forced them to engage in prostitution in the St. Louis metropolitan area. Mathews took the women to various hotels and kept the money for herself. She confiscated their food-stamp identification (EBT) cards to control them and deprive them of food and drink as a method of control and provided the drug MDMA and clothing in preparation for the commercial sex dates she arranged for them.
Mathews, St. Louis, pled guilty Thursday, October 10 to conspiracy to commit sex trafficking by force, fraud or coercion before United States District Judge Henry Autrey. Sentencing has been set for January 6, 2014.
Carla Mathews now faces 10 years to life in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Mathews brother and co-defendant pled guilty to the same charges in March and was sentenced in July to 10 years in prison.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Agriculture-Office of Investigations and the Breckenridge Hills Police Department. Assistant United States Attorney Noelle Collins is handling the case for the U.S. Attorney's Office.
Local Man Pleads Guilty to Multiple Tax Fraud ChargesRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announced that on October 15, 2013, Anthony Simms (37, formerly of Riverview) pleaded guilty to seven counts of passing forged Treasury checks, seven counts of theft of government property, and seven counts of aggravated identity theft. Simms faces a maximum penalty of ten years in federal prison for each of the passing forged Treasury checks and theft of government property counts, plus two consecutive years in prison on the aggravated identity theft counts. The government is also seeking a forfeiture money judgment in the amount of the proceeds from the offenses. His sentencing hearing has been set for January 13, 2014, at 1:30 p.m. before United States District Judge James D. Whittemore.
According to court documents, from November 9, 2011 through January 25, 2012, Simms deposited fifty-seven third party tax refund Treasury checks and eight tax refund cashier’s checks into his business account at SunTrust Bank, through various ATMs located in the Tampa area. Simms was the sole signatory on the business account and the only one who used the ATM card for these deposits. Simms knew that the signatures of the payees on the back of the checks were forged and that he was not authorized or entitled to deposit or cash these checks. The payees on the checks did not know or have any dealings with Simms, his business, and did not authorize a check in their name to be deposited into Simms’ account. Other payees on some of the Treasury checks were deceased. The total amount of money deposited into Simms’ account from all of these tax refund checks was $449,689.
This case was investigated by the United States Secret Service and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Assistant United States Attorney Kelley C. Howard-Allen.
Local Doctor Indicted on Federal Drug ChargesRead the Press Release
St. Louis, MO – DR. HARRY OSAGHAEMORGAN, Richmond Heights, MO, was indicted October 9 by a federal grand jury on five felony counts of causing, or attempted to cause, the dispensing of Schedule II and IV controlled substance drugs outside the normal practice of medicine. The drugs involved were large quantities of oxycodone, morphine, oxymorphone, Xanax and Valium.
According to the indictment, between January and May 2012, Dr. Osaghaemorgan was the sole physician for Doctor’s Medical Center, a pain management clinic located at 2015 Smizer Station Road, Valley Park, MO. The Medical Center employed several office managers and staff that were paid $10 for every patient they were able to solicit via telephone to schedule an appointment to see Dr. Osaghaemorgan. The indictment states that Dr. Osaghaemorgan wrote prescriptions with little or no medical examination and for no legitimate medical purpose. Patient’s office visits were paid for in cash and insurance was not accepted. During the four-months that Doctor’s Medical Center was in operation, Dr. Osaghaemorgan wrote approximately 1300 controlled substance prescriptions generating approximately $195,481 cash revenue. Also during that period, out of the clinic’s 538 patients, only 10 had Missouri addresses. The remaining 528 reported residences in 19 other states with 246 listed in Kentucky. Further, the indictment alleges that 104 patients reported identical addresses.
If convicted, each count of the indictment carries a maximum penalty of 20 years in prison and/or a fine up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Diversion Unit of the Drug Enforcement Administration. Assistant United States Attorney John T Davis is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Jacksonville Man Pleads Guilty in Federal Court to Producing Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announces that on October 2, 2013, James Daniel Kasper (29, Jacksonville) pleaded guilty to using a minor to produce images of child pornography. Kasper faces a mandatory minimum penalty of not less than 15 years and up to 30 years in federal prison. Kasper has been in custody since his arrest on March 20, 2013. A sentencing hearing has not yet been set.
According to court documents, in February 2013, law enforcement officers in Tennessee arrested a registered sex offender on child pornography charges, and an FBI agent accessed the individual=s email account. The agent discovered that several hundred emails had been exchanged between the arrested individual and others, many of which contained images and videos depicting child pornography. Another email account contained correspondence between the individual and numerous other email accounts, including one identified as the Aghostt4891" account. Further investigation revealed that the “ghostt4891” account belonged to Kasper and that Kasper had sent images of child pornography to others via email and had uploaded them over the internet to a website whose server is outside of the United States.
According to court documents, on March 20, 2013, FBI agents and other law enforcement officers executed a federal search warrant at Kasper=s apartment on Sunbeam Road in Jacksonville. During the search, agents seized a laptop computer and a thumb drive. Agents also contacted Kasper at his place of employment. When interviewed, he stated, among things, that while babysitting a 9-year-old minor child, he used his smart phone to produce sexually explicit photos of the child. After taking the photos, Kasper uploaded the images over the internet to a particular website and sent them to others via email. Kasper also stated that he used a peer-to-peer file sharing program to search for child pornography on the internet.
According to court documents, the thumb drive seized at Kasper’s residence contained at least 49 images of child pornography produced by Kasper that depicted the minor child.
This case was investigated by the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictment: Two Topeka Men Behind Robbery, Shooting at ValeroRead the Press Release
TOPEKA, KAN. – Two Topeka men have been indicted on federal charges in connection with the July 28 robbery and shooting at a Valero gas station in Topeka, U.S. Attorney Barry Grissom and Shawnee County District Attorney Chad Taylor announced today.
Corey Eugene Johnson, 39, Topeka, Kan., and Shawn Michael Sneed, 20, Topeka, Kan., are charged with one count of armed robbery and one count of discharging a firearm during the robbery.
The indictment alleges that on July 28, 2013, Johnson and Sneed robbed the Valero gas station at 1161 S.W. Gage Boulevard in Topeka. It alleges they caused a firearm to be discharged during the robbery.
A 52-year-old Topeka man who has been identified as Salim Salti was shot during the robbery.
“We’re working with the Shawnee County District Attorney’s Office and the FBI and Topeka Police Department’s Violent Crime Task Force in this case,” said U.S. Attorney Barry Grissom. “Protecting public safety and prosecuting violent gun crimes are the top priority for us all.”
“I am very pleased with the quality of investigation in this case by both our local law enforcement agencies and the federal task force,” said Chad Taylor, Shawnee County District Attorney. “Once again, this indictment reflects the continued cooperation and commitment by my office and the United States Attorney’s Office. That cooperation allowed us to jointly determine which prosecution jurisdiction would provide the stiffest penalties possible, in order to help ensure the safety of this community and make a statement to those who would commit violent crimes.”
If convicted, the defendants face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the robbery charge, and a penalty of not less than 10 years – consecutive to sentence on the robbery count – and a fine up to $250,000 on the firearm charge. The Topeka Police Department, the FBI and the Shawnee County District Attorney’s Office investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment: Mayetta Man Facing Federal ChargesOf Domestic Violence Assaults on Indian LandsRead the Press Release
TOPEKA, KAN. – A Mayetta, Kan., man has been indicted on federal charges of habitual domestic violence assaults that took place on tribal lands, U.S. Attorney Barry Grissom said today.
William L. Wilson, 28, Mayetta, Kan., is charged with one count of domestic assault by an habitual offender occurring on tribal lands. The indictment alleges that on Sept. 7, 2013, he assaulted his wife. The assault is alleged to have occurred on the Prairie Band Potawatomi Nation’s tribal lands in Jackson County, Kan.
The indictment alleges Wilson has two prior convictions for domestic assault.
“Domestic violence is a serious problem,” said U.S. Attorney Barry Grissom. “We are determined to use every means we have to protect women and girls in Indian Country.”
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Prairie Band Potawatomi Tribal Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indianapolis Attorney to Serve 10 Years in Prison for Defrauding ClientsRead the Press Release
INDIANAPOLIS – Chief U.S. District Judge Richard L. Young today sentenced Indianapolis attorney William F. Conour to 120 months (10 years) in federal prison for defrauding his clients of more than $4.5 million over more than a decade. Conour was ordered to pay over 6.7 million dollars in restitution to his victims.
On July 15, 2013, Conour entered an open plea of guilty to the scheme as charged. He has been in the custody of the U.S. Marshals Service since his bond was revoked on June 27, 2013. At that time, Judge Young granted the government’s motion to revoke bond after finding that Conour had breached the conditions of his bond when he dissipated assets without prior consent by the government.
Today’s sentence was announced by Jim Lewis, U.S. Attorney for the Central District of Illinois, and Robert A. Jones, Special Agent in Charge, FBI, Indianapolis Division.
According to court documents and statements made in court, from 1999 and continuing through April 2012, Conour kept a majority of his clients’ settlement proceeds for his own use and benefit. Most of Conour’s law practice was devoted to representing clients who had suffered serious injuries or death caused by construction site accidents, automobile collisions, and accidents resulting in traumatic brain injury. Instead of depositing the full amount of client settlements into client ‘trust’ accounts, Conour provided funds only sufficient to enable the client to receive monthly payments for a year. Further, Conour used newly obtained settlement funds to pay old settlements and debts.
The U.S. Attorney’s Office for the Southern District of Indiana has been recused in this matter. The U.S. Attorney General appointed the Central District of Illinois to handle the case prosecution. The government was represented by Assistant U.S. Attorney Jason M. Bohm, Central District of Illinois, Urbana Division.
The Federal Bureau of Investigation, with assistance provided by the Indiana State Police, conducted the investigation.
Illegal Alien sentenced to 65 years in prison for unlawful reentry, identity theft and firearms possessionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Javier Martinez, a citizen of the Dominican Republic, was sentenced to 65 years in federal prison.
Javier Martinez, 48, was convicted by a jury in June 2013 of twelve criminal offenses, including one count of reentry after deportation, five counts of making false claims of United States citizenship, five counts of aggravated identity theft, and one count of possession of a firearm by an illegal alien.
According to Assistant U.S. Attorney Thomas C. Bradley, who prosecuted the case, Martinez was deported from Miami to the Dominican Republic in 1992, but later unlawfully returned to the United States. Evidence at trial matched the defendant’s fingerprints to those of the person removed in 1992. Martinez was also convicted of illegally using the name Victor Rodriguez Flores, a resident of Puerto Rico, to apply for an Alaska identification card and to obtain employment at Anchorage hotels including: the Sheraton; the Embassy Suites; the Quality Inn; and the Millennium Hotel. Evidence presented at trial showed that Martinez falsely claimed to be a U.S. citizen on application forms filed with the Alaska DMV and each of the hotels where he worked.
Martinez was also convicted of possession of a firearm, a Ruger .45 caliber semiautomatic pistol. Illegal aliens are prohibited from possessing firearms under federal law, as are convicted felons, drug addicts, and fugitives from justice. Witnesses testified at trial that Martinez brought the pistol to the Millennium Hotel on October 29, 2011, after having been fired from his job at the hotel, and used it to shoot Kerry Fadely, his former supervisor. The firearm was recovered at the scene along with a letter from Martinez explaining the reasons he was unhappy working at the hotel. The letter directed the Millennium Hotel to send his final paycheck to the Anchorage jail.
The defendant testified at the June trial, claiming that he was never actually deported from the United States in 1992, because after being placed on the flight by immigration officers, he went out the back of the plane and into the terminal. Two special agents from Homeland Security Investigations testified at trial that Martinez had admitted to them that he was deported in 1992. They also testified that when they asked Martinez about the firearm he left at the Millennium Hotel, he stated that it was easier to buy a gun in Anchorage than to buy a pack of cigarettes or a six pack of beer.
Chief U.S District Court Judge Ralph R. Beistline described the killing of Kerry Fadely as a “cowardly act” in imposing the maximum sentence available under the law.
Judge Beistline described Martinez as a person who cannot be deterred and cannot be rehabilitated, who had no “socially redeeming values” and was a “dangerous man” from whom the public needed protection. The judge also addressed Martinez’ extensive criminal record, which includes drug dealing and repeated assaults against women.
Martinez still faces first degree murder and other charges in Alaska State court in connection with the shooting.
Ms. Loeffler commends the Immigration and Customs Enforcement’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the officers of the Anchorage Police Department for the investigation leading to the conviction of Javier Martinez.
Hudson County Contractor Admits Paying $65,000 in Bribes to Bayonne Official for Government-Funded ProjectsRead the Press Release
TRENTON, N.J. - A Hudson County, N.J. man today admitted his role in paying bribes to a Bayonne public official for the public official’s assistance in securing projects funded by the U.S. Department of Housing and Urban Development, U.S. Attorney Paul J. Fishman announced.
Joseph Arrigo, 45, of Bayonne, N.J., pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of paying bribes totaling approximately $65,000 to a Bayonne official who served as the director of Bayonne’s Department of Community Development. Arrigo also pleaded guilty to one count of theft and conversion of government funds in the amount of $40,000, and one count of submitting a false tax return for tax year 2011.
According to documents filed in this case and statements made in court:
Arrigo was the owner of Shadow Contracting LLC, a general contracting company in Bayonne. The Bayonne Department of Community Development (CBDCD) was a government agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants of up to $20,000 to low-income families to rehabilitate their homes and to repair conditions that were considered to affect their health and safety, and their homes’ accessibility, energy efficiency or code compliance. The CBDCD also provided these HUD funds under the same federal program to nonprofit organizations for the same purpose. A Bayonne public official served as the director of the CBDCD and was responsible for reviewing applications for HUD grant funds from the City of Bayonne and awarding such funds to qualified applicants.
In September 2010, the public official solicited cash payments from Arrigo in exchange for the public official’s assistance in awarding HUD grant funds from the City of Bayonne to Arrigo as the owner of Shadow Contracting. From September 2010 to February 2013, Arrigo made cash payments to the public official totaling approximately $65,000 in exchange for the public official’s assistance in awarding HUD grant funds from Bayonne to Arrigo that totaled approximately $426,000.
In September 2011, Arrigo assisted another contractor by supplying with a bid on behalf of Shadow Contracting that was higher than the contractor’s bid to enable the other contractor to obtain HUD grant funds from the City of Bayonne. The contractor then submitted the two bids to the CBDCD and, as a result of his collusion with Arrigo, the contractor fraudulently obtained $20,000 in HUD grant funds from the CBDCD. In December 2011, Arrigo caused the same contractor to provide Arrigo with a bid that was higher than Arrigo’s bid for the purpose of obtaining HUD grant funds from Bayonne. Arrigo submitted the contractor’s bid along with his own to the CBDCD and, as a result, fraudulently obtained another $20,000 in HUD grant funds from the CBDCD.
Arrigo also made and subscribed a U.S. Individual Tax Return, Form 1040, for tax year 2011, which he did not believe to be true and correct as to every material matter, including approximately $151,993 in unreported income.
The bribery and theft of government funds charges to which Arrigo pleaded guilty carry maximum potential penalties of 10 years in prison and maximum fines of $250,000. The charge of filing a false tax return, to which Arrigo pleaded guilty, carries a maximum potential penalty of three years in prison and a fine of $250,000. Sentencing is currently scheduled forFeb. 3, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, with the continuing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the U.S. Attorney=s Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the office’s Appeals Division.
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Defense counsel: Charles J. Uliano Esq., West Long Branch, N.J.
Arrigo, Joseph Information
Hospice Owner Convicted in Multi-Million Dollar Health Care FraudRead the Press Release
PHILADELPHIA - Matthew Kolodesh, a/k/a "Matvei Kolodech", 51, of Churchville, PA, was found guilty of conspiracy to defraud Medicare of more than $14 million through his home hospice business, announced United States Attorne ZaneDavid Memeger. A federal jury delivered its verdict today. Kolodesh's business, Home Care Hospice, Inc. ("HCH"), located at 2801Grant Avenue in Philadelphia, submitted claims totaling approximately $14.3 million for patients that were not eligible for or did not receive the hospice services billed to Medicare. Kolodesh also allegedly diverted $9.36 million dollars from HCH's operating account for his own personal use, such as extensive renovations to his house, travel expenses, college tuition for his son, and a luxury automobile. He siphoned substantial sums of cash from the HCH operating account through kickbacks from HCH vendors using a system of phony and inflated invoicing, and a cash kickback scam through sham charitable donations made in the name of the hospice
The jury found Kolodesh guilty of conspiracy to commit health care fraud, 21 counts of health care fraud, 11 counts of money laundering, and two counts of mail fraud. Kolodesh faces a statutory maximum sentence of 370 years in prison. The government will also seek restitution to Medicare in the amount of $14.3 million and proceeds from the money laundering.
“Cases like this involve the type of fraud and abuse that this office and the Department of Justice fights every day,” said Memeger. “The guilty verdict here bolsters our resolve to investigate and prosecute fraudsters who believe they can steal the public’s hard-earned tax dollars and government funds with impunity.”
“Criminals like Matvei Kolodech, who hide behind others in hopes of avoiding prosecution, should take notice of today’s jury verdict,” said Special Agent-in-Charge Nick DiGiulio, of the US Department of Health and Human Services, Office of Inspector General. “We will continue to aggressively investigate ring leaders like Kolodech, whose fraudulent organizations rob Medicare of precious resources.”
Kolodesh and his co-conspirator, identified only as "A.P.," would pay health care professionals, including doctors, for referring patients to HCH even when those patients were not eligible or appropriate for hospice services. In an effort to mask the alleged kickback scheme, HCH fraudulently represented that some of those health care professionals were paid for servicesas medical directors, advisors, or hospice physicians.
Among the ineligible patients were patients who were not terminally ill and patients who were on the service list for more than six months. At the direction of Kolodesh and A.P., HCH staff would routinely "doctor" or alter patient charts to make it appear on paper as though the patient's medical condition was worse than it actually was. The staff was also allegedly directed to bill certain claims at a higher, more costlier rate of service than was actually provided to the patient.
In February 2007, HCH was notified that it was subject to a claims review audit. Kolodesh, through A.P., directed members of HCH staff to falsify documentation to be submitted for the audit. In September 2007, HCH was notified that it had exceeded its cap for Medicare reimbursement and would have to repay $2,625,047 to the government program. At that point, Kolodesh ordered a mass discharge of patients. In October 2007, A.P. had 79 hospice patients discharged and a total of 128 discharged by January 2008, some of whom had been ineligible for hospice or inappropriately maintained on hospice service in excess of six months. Of those discharged patients, 16 were admitted to Kolodesh's other hospice business, Community Home Health in Bucks County. Once the Medicare cap was resolved, 11 of those patients were returned to HCH.
In August and September 2005, Kolodesh and A.P. applied for a low interest loan worth $2.5 million with the Philadelphia Industrial Development Corporation. The purpose of PIDC loan is to stimulate business investment and create jobs in the city of Philadelphia. Kolodesh indicated that the funds were to be used to acquire and renovate a property for his business and the creation of 50 jobs in Philadelphia at the 2801 Grant Avenue site of HCH. In reality, Kolodesh knew that between August 2005 and July 2009, the job quota was not being met, and in the summer of 2008 he set up a sham office for CHH (his Bucks County health care business) at that location and falsely identified 73 CHH employees as working at the office location on Grant Avenue who, in fact, had never worked there.
The case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant United States Attorney Suzanne B. Ercole and Trial Attorney Margaret Vierbuchen with the Department of Justice’s Criminal Section.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Hillsborough County Man Sentenced to 15 Years in Federal Prison for Firearm and Ammunition ChargeRead the Press Release
Tampa, Florida – On October 15, 2013, U.S. District Judge James S. Moody, Jr. sentenced Raymond Edward Braun (40, Wimauma) to 15 years in federal prison for being a felon in possession of a firearm and ammunition. Braun pleaded guilty on July 2, 2013.
According to court documents, the Hillsborough County Sheriff’s Office received a complaint on March 20, 2013, that Braun was in possession of a rifle. Deputies arrived at Braun’s residence and eventually recovered the rifle. The firearm was loaded with six rounds of ammunition. Prior to this incident, Braun was previously convicted of a number of felonies. As a previously convicted felon, he is prohibited from possessing firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice's Project Safe Neighborhoods program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
High School Cafeteria Manager Charged with Fraud SchemeRead the Press Release
Glenn Werley, 47, of Sarasota, Florida, was charged by Information, filed October 7, 2013, with one count of wire fraud, announced United States Attorney Zane David Memeger. While working as the cafeteria manager for Bucks County Technical High School, the Information alleges, Werley defrauded the National School Lunch Program and School Breakfast Program of $179,000.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a 3-year period of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by United States Department of Agriculture Office of Inspector General and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
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, 215-861-8525Genovese Crime Family Associate Admits Racketeering Conspiracy and Tax EvasionRead the Press Release
NEWARK, N.J. – An Ocean County, N.J. man who is a reputed associate of the Genovese Crime Family today admitted his role in a racketeering conspiracy and tax evasion scheme and agreed to forfeit $400,000 to the United States, U.S. Attorney Paul J. Fishman announced.
John Breheney, a/k/a “Fu,” 49, of Little Egg Harbor, N.J., pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to violate the Racketeer Influenced and Corrupt Organizations, or RICO, statute, by participating in the activities of the Genovese Crime Family of La Cosa Nostra through a pattern of racketeering activity and through the collection of unlawful debt.
Breheney and 11others alleged to be members or associates of the Genovese Crime Family were arrested on May 22, 2012, and charged by complaint. The racketeering activities consisted of engaging in an illegal sports betting business conducted, in part, through an offshore website, and cargo theft. Breheney admitted that he earned income through his criminal activities and then concealed this income from the IRS by making false tax returns and failing to pay taxes on this income.
According to documents filed in this case and statements made court: Breheney was an associate of the Genovese Crime Family of La Cosa Nostra. This alleged criminal enterprise through smaller groups, sometimes referred to as “crews,” that engaged in a variety of criminal activities in northern New Jersey and elsewhere. Each crew was headed by a “captain,” “capo,” or “skipper.” Each captain’s crew consisted of “soldiers” and “associates.” The captain was responsible for supervising the criminal activities of his crew and providing the crew with support and protection. In return, the captain often received a share of the crew’s earnings.Joseph Lascala, 81, of Monroe, N.J., was an alleged “capo” and a made member of the Genovese Crime Family, directing various criminal activities of a group of associates referred to in the criminal complaint as the “Lascala Crew.” These activities included the theft of goods and cargo, the receipt of stolen property in interstate commerce, extortion, illegal gambling, and the collection of unlawful debt. Breheney reported to Lascala and his underlings.
Members and associates of the Lascala Crew and others conspired with individuals who owned and operated an offshore website to run an illegal gambling business that operated in northern New Jersey and elsewhere.
High-level associates of the Lascala Crew, such as Breheney, acted as “agents” of the business. Before the advent of computerized betting, these agents would be referred to as “bookmakers” or “bookies.” Through the use of a username and password, the agents accessed the Website and tracked the bets or wagers placed by bettors. This “electronic portfolio” was referred to as the agent’s “package.” After bettors received their own username and password from the agent or sub-agent, they placed bets, usually on sporting events. The bettors, however, did not use a credit card to either access the website or to pay gambling losses or to receive gambling winnings. Instead, the bettors either paid money for losses to, or received money for winnings from, the agent, such as Breheney, his sub-agent, or their conspirators in New Jersey. If a bettor was unable or unwilling to repay gambling losses, then the agent or sub-agent converted these losses in debts that the bettor was required to repay. The agent or sub-agent often tacked exorbitant amounts of interest onto these debts and they used extortionate means to collect these debts, including the express or veiled threat that the agent, sub-agent, or their co-conspirators had the backing of the Genovese Crime Family.The Lascala Crew also profited by operating social clubs in northern New Jersey and elsewhere where members and associates profited through card games and other illegal games of chance. In addition, they also profited by engaging in cargo theft and the receipt and sale of stolen goods in interstate commerce.
Breheney admitted that he conspired with this criminal enterprise to engage in a pattern of racketeering activity, including illegal gambling and theft from interstate shipments, and the collection of unlawful debt. He also admitted that he failed to report approximately $101,166 in taxable income that he had received in 2007 and thus cheated the IRS out of approximately
$30,982 in taxes in that year. Finally, Breheney agreed to a forfeiture money judgment of $400,000, representing money he had derived through his participation in the racketeering activities.The racketeering count to which Breheney pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and $250,000 fine, and the tax evasion charge is punishable by up to five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 5, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Bayonne Police Department, under the direction of Chief Ralph Scianni; special agents of IRS-Criminal Investigation under the direction of Special Agent in Charge Shantelle P. Kitchen; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s arrests. He also thanked the Waterfront Commission of New York Harbor, the U.S. Department of Labor, and the N.J. State Commission of Investigation, for their significant contributions to the investigation.
The government is represented by Assistant U.S. Attorneys Serina M. Vash, of the National Security Unit, and Anthony Moscato of the Organized Crime/Gangs Unit in Newark.
As for other alleged members of the Lascala Crew, the charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense Counsel: Anthony J. Pope, Jr. Esq. NewarkBreheney Information
Four Conspirators Charged with Using Medical Patients' Identities to Steal over $750,000 of MerchandiseRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment today charging four defendants with conspiring to steal merchandise using stolen personal identifying information of medical patients:Denise W. Wearing, age 36, of Philadelphia, Pennsylvania; Michelle Jernell Cole, age 27, of Baltimore; Chanell Y. Cole, age 30, of Owings Mills, Maryland; and
Yolana Gail Welch, age 39, of Philadelphia.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
Michelle Cole worked at two medical practices located in Laurel, Columbia and Glen Burnie, Maryland. Her sister, Chanell Cole, worked at a doctor’s office in Baltimore. According to the three count indictment, from January 2010 to April 2013, the Cole sisters used their employment to obtain personal identifying information of over 46 patients, which the defendants used to take over and control the victims’ credit accounts at Macy’s and Bloomingdales. The defendants allegedly used the fraudulently accessed accounts to obtain jewelry, clothing, furniture, televisions and other merchandise and had the fraudulently obtained merchandise delivered to their own residences and to residences of friends and family members. They defendants kept the merchandise for their personal use, sold the items for cash, or returned the items in exchange for gift cards and sold gift cards for cash.
The indictment alleges that during the course of the scheme, the defendants defrauded over 100 victims, obtaining over $750,000 of merchandise using the victims’ accounts.
All of the defendants face a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. The initial appearances of the defendants are not yet scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation and thanked Macy’s fraud investigators for their assistance. Mr. Rosenstein praised Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.
Four Conspirators Charged with Using Medical Patients' Identities to Steal over $750,000 of MerchandiseRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment today charging four defendants with conspiring to steal merchandise using stolen personal identifying information of medical patients:Denise W. Wearing, age 36, of Philadelphia, Pennsylvania; Michelle Jernell Cole, age 27, of Baltimore; Chanell Y. Cole, age 30, of Owings Mills, Maryland; and
Yolana Gail Welch, age 39, of Philadelphia.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
Michelle Cole worked at two medical practices located in Laurel, Columbia and Glen Burnie, Maryland. Her sister, Chanell Cole, worked at a doctor’s office in Baltimore. According to the three count indictment, from January 2010 to April 2013, the Cole sisters used their employment to obtain personal identifying information of over 46 patients, which the defendants used to take over and control the victims’ credit accounts at Macy’s and Bloomingdales. The defendants allegedly used the fraudulently accessed accounts to obtain jewelry, clothing, furniture, televisions and other merchandise and had the fraudulently obtained merchandise delivered to their own residences and to residences of friends and family members. They defendants kept the merchandise for their personal use, sold the items for cash, or returned the items in exchange for gift cards and sold gift cards for cash.
The indictment alleges that during the course of the scheme, the defendants defrauded over 100 victims, obtaining over $750,000 of merchandise using the victims’ accounts.
All of the defendants face a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. The initial appearances of the defendants are not yet scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation and thanked Macy’s fraud investigators for their assistance. Mr. Rosenstein praised Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.
Fort Scott Man Sentenced to 20+ Years on Federal Drug Trafficking ChargesRead the Press Release
KANSAS CITY, KAN. – A Fort Scott man has been sentenced to more than 20 years in federal prison on drug trafficking charges, U.S. Attorney Barry Grissom said today.
Jonathan Brumback, 43, Fort Scott, Kan., was sentenced to 250 months in federal prison and ordered to forfeit $27,000 in proceeds from the crime. In his plea, he admitted that on Aug. 1, 2012, he sold approximately a gram of methamphetamine to a buyer working undercover for the Kansas Bureau of Investigation. The transaction took place at his shop in Ft. Scott. On Aug. 4, 2012, he sold more than six grams of methamphetamine to a buyer working undercover. The transaction took place at his residence in Ft. Scott. On Aug. 5, investigators served search warrants at his home and shop, where they found approximately half a pound of methamphetamine and $24,000 in cash.
On Aug. 20, 2012, an undercover agent purchased a quarter pound of methamphetamine for a little more than $5,000 from one of Brumback’s co-defendants, Rogelio Amada Lamas. The price included $3,000 that Brumback owed for methamphetamine he purchased from Lamas.
Co-defendants include: Rogelio Amada Lamas, who is scheduled for sentencing Dec. 9.
Johana Villanueva-Renteria, who is set for sentencing Oct. 22.Grissom commended the Fort Scott Police Department, the Kansas Bureau of Investigation, Assistant Attorney General Steven Wilhoft with Kansas Attorney General Derek Schmidt's Office and Assistant U.S. Attorney Scott Rask for their work on the case.
Former Waiter Sentenced to 38-Month Prison Term, Used Stolen Credit Card Information to Buy Artwork and Jewelry-Defendant Also Carried Out Separate Check-Kiting Scheme-Read the Press Release
WASHINGTON - Kevin T. Washington, 48, of Gaithersburg, Md., was sentenced today to a 38-month prison term and ordered to pay restitution of approximately $39,000 to various businesses and banks that were defrauded in a pair of schemes, announced U.S. Attorney Ronald C. Machen, Jr., Cathy L. Lanier of the Metropolitan Police Department and Kathy A. Michalko, Special Agent In Charge of the Washington Field Office of the U.S. Secret Service.
Washington pled guilty in August 2013 in the Superior Court of the District of Columbia to felony credit card fraud, first-degree felony fraud, and misdemeanor credit card fraud. He was sentenced by the Honorable Robert I. Richter.
According to the plea agreement, in September and October of 2012, Washington obtained the credit card numbers of four different victims while working as a waiter at a restaurant in Georgetown. One victim had treated his niece, who had been attending college in the area, to a meal at the restaurant. Shortly thereafter, he discovered thousands of dollars in fraudulent charges from an art gallery. That victim’s card was used to purchase artwork totaling approximately $46,000 from a Georgetown art gallery, including two Pablo Picasso etchings, as well as Henri Matisse and Damien Hirst etchings.
Members of the Metropolitan Police Department’s Financial Crimes Unit enlisted assistance from the Fairfax County, Va. Police Department and together they were able to recover the artwork from a store in Fairfax County where Washington had pawned them. That store suffered roughly $3,000 in losses.
During this same time period, September through October 2012, Washington used the credit card number of another victim who had dined at the restaurant to purchase diamond stud earrings, a wedding band, a diamond cross and a 16-inch gold chain from a jewelry store in Northwest Washington. He also used another victim’s credit card number for storage services and the fourth victim’s credit card number for car repair services. All told, the purchases on these three victims’ cards totaled about $11,300.
Finally, beginning in March 2012 and continuing through February 2013, Washington fraudulently obtained approximately $24,000 in cash in a check-kiting scheme. The investigation showed that Washington opened accounts at six different banks and subsequently deposited bad checks with the intent of artificially inflating his account balances. Washington would then withdraw large sums of money, knowing that the checks would be returned due to insufficient funds or for having been written on closed accounts.
In announcing the sentence, U.S. Attorney Machen, Chief Lanier and Special Agent in Charge Michalko praised the investigative work of the MPD detective assigned to the Financial Crimes and Fraud Unit and the Special Agent assigned to the Secret Service‘s Washington Field Office. They also expressed appreciation for the assistance provided by the Fairfax County Police Department. Finally, they commended the efforts of Assistant U.S. Attorney Stephanie G. Miller, who prosecuted the case.
13-346Former Town Creek, Ala., Police Officer Sentencedfor Assaulting ArresteeRead the Press Release
Brandon Shane Mundy, a former police officer of numerous law enforcement agencies, the most recent being the Town Creek, Ala., Police Department was sentenced today by U.S. District Court Judge R. David Proctor to serve five years in prison and three years of supervised release, and to pay $3,745 in restitution for violating the civil rights of a man during the course of an arrest. Mundy previously pleaded guilty on April 25, 2013, to one count of willfully depriving the man of his constitutional right to be free from excessive force by a law enforcement officer acting under color of law. According to information presented to the court, on Nov. 22, 2009, Mundy was involved in a vehicle pursuit and fired shots at a man’s vehicle before later ramming the vehicle and causing it to wreck in a ditch. While another police officer reached the man and placed him under arrest without resistance, Mundy arrived and unjustifiably and repeatedly beat the man in the head with an object that was either a baton or a flashlight causing the man to suffer physical injury. After Mundy lost control of the object, he continued to strike the man in the head with his fist.
“When law enforcement officers abuse their power and violate the civil rights of those in custody, they will be held accountable,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in acts of criminal misconduct.”
“Every police officer is sworn to serve and protect, and virtually all of them take that oath seriously. This officer did not, and assaulted a citizen in violation of his oath,” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama. “My office continues to aggressively prosecute police misconduct and takes a zero tolerance policy in this regard.”
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Elizabeth Holt of the Northern District of Alabama and Civil Rights Division Trial Attorney Daniel H. Weiss.
Former Teacher Sentenced to Five Years in Prison for Receipt of Child Pornography-Exchanged Sexually Explicit Images with Student-Read the Press Release
WASHINGTON – John Solano, 30, a former teacher from Washington, D.C., was sentenced on Oct. 7, 2013 to five years in prison for receiving child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Solano pled guilty in July 2013 to receipt of pornography. He was sentenced in the U.S. District Court for the District of Columbia by the Honorable Rosemary M. Collyer. Solano has been incarcerated since his arrest on March 8, 2013. Upon completion of his prison term, Solano will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a period of 15 years.
According to the government's evidence, Solano, who was then a teacher at McKinley Tech High School in Northeast Washington, engaged in inappropriate sexual communications with several current and former students. Specifically, in December 2012, Solano engaged in inappropriate and sexually explicit text message communications with a 16-year-old student. During the course of that correspondence, at Solano’s request, the student sent and Solano received images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-345Former Sutherland Global Services Employees Sentenced for FraudRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul announced today that Brian Wergin, 31, and Bohdan “Don” Luzecky, 46, both of Rochester, N.Y., who were both convicted of mail fraud, were sentenced by U.S. District Court Judge Frank P. Geraci, Jr. Wergin was sentenced to 21 months in prison and ordered to pay $281,964.34 in restitution. Luzecky was sentenced to 27 months in prison and to pay restitution in the amount of $235,499.34.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that while employed at Sutherland Global Services where they were assigned to provide technical support to Intuit, Inc., the defendants utilized Sutherland computers to place false and fraudulent orders for free, replacement discs of Intuit software, including TurboTax and Quicken. Between December 2009 and October 2011, the defendants ordered more than 6,500 discs to which they were not entitled. After receiving the software discs at addresses in Rochester and Atlanta, GA, the defendants sold the software online, including through eBay.com, to customers throughout the United States. Wergin and Luzecky then kept the proceeds for themselves, knowing that they were not authorized to obtain or sell the software.
The sentencings are the culmination of an investigation on the part of Inspectors of the United States Postal Inspection Service, under the direction of Inspector Kevin Niland, Boston Division, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.Former Social Security Administrator Pleads Guilty to Aggravated Identity Theft, Mail Fraud, Unauthorized Sale of Stolen Stocks, Tax ChargesRead the Press Release
PROVIDENCE, R.I. – Randolph Hurst, 50, of West Warwick R.I., a former Assistant District Manager for the Social Security Administration in Rhode Island, pled guilty in U.S. District Court in Providence on October 9, 2013, to stealing the identity of a Coventry man and using the victim’s identity to fraudulently sell more than $160,000 worth of stock certificates belonging to the victim. Hurst also pled guilty to failing to pay $61,999 in taxes owed to the IRS.
Appearing before U.S. District Court Judge William E. Smith, Hurst pled guilty to one count each of aggravated identity theft, transportation of stolen securities and tax evasion; two counts of mail fraud; and three counts of filing a false tax return. Hurst faces up to 45 years in federal prison and a fine of up to $1.4 million dollars when he is sentenced on January 10, 2014.
A co-defendant in this matter, Justin Silveira, 29, of Coventry, pled guilty on October 9, 2013, to two counts of perjury and one count of obstruction of justice. Silveira admitted to the court that he lied to a grand jury which was investigating this matter. At sentencing on January, 10, 2014, Silveira faces up to 20 years in federal prison and a fine of up to $750,000.
The guilty pleas were announced by United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; Cheryl Garcia, Acting Special Agent in Charge of the New York region of the U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations; John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation; and Scott E. Antolik, Special Agent in Charge of the Boston field office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
At the time of his guilty plea, Hurst admitted to the court that in September 2010 he stole personal identifying information belonging to the victim and used it to open a joint account at Summit Brokerage Services in Providence in his name and in the name of the victim, without the victim’s permission. Hurst admitted that two days after opening the account he provided documentation to Summit purportedly authored and signed by the victim, requesting the deposit of two stock certificates owned by the victim. The victim never authorized the deposit of the stock certificates and was unaware that an account had been opened in his name.
Hurst admitted to the court that in October 2010, without the victim’s knowledge, he requested that Summit sell the stocks and issue a check in his name and in the victim’s name for $157,747.49, which represented a portion of the proceeds of the sale of the stocks. The check was sent by courier to the Coventry address of Justin Silveira. On October 22, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife. Hurst admitted to the court that on the same date the check was deposited he requested a second check from Summit in the amount of $3,980.46, in his name and in the victim’s name, for the remaining proceeds from the sale of the stock, and that it be sent to the same address in Coventry. On November 8, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife.
Hurst admitted to the court that he and his wife spent the proceeds of the sale of the stock, $161,727.95, on personal items and expenses.
The cases are being prosecuted by Assistant U.S. Attorney Dulce Donovan.The matter was investigated by federal agents from the FBI; U.S. Department of Labor Office of Labor Racketeering and Fraud Investigations; Internal Revenue Service – Criminal Investigation; and Social Security Administration, Office of the Inspector General/Office of Investigations.
This law enforcement action 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 is 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.
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]Former R.I Doctor to Pay $1.2 Million for Fraudulent Billings to Medicare and MedicaidRead the Press Release
PROVIDENCE, RI – Dr. Hafeez Kahn, a former Rhode Island physician with practices located in Smithfield and East Providence, R.I., will pay the government $1.2 million dollars, twice the amount of money a Settlement Agreement states he fraudulently billed the Medicare and Medicaid programs, it was announced today by the United States Attorney’s Office, the Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the Rhode Island Attorney General’s Office.
According to the Agreement, between August 2006 and December 2010, Dr. Kahn and two corporations he owned, U.S. Care Inc. and U.S. Care Pain Clinic LLC, overbilled the health care programs for services provided to some patients and falsely submitted claims for services never performed.
According to the Agreement, Kahn must make an immediate payment of $500,000 within 10 days and annual payments of $175,000 plus interest for the next five years beginning on or before September 1, 2014.
The matter, investigated by the United States Attorney’s Office, HHS-OIG, and the Rhode Island Attorney General’s Office Medicaid Fraud Control Unit, was handled by Assistant U.S. Attorney Mary Rogers and R.I. Assistant Attorney General James F. Dube.
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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]Former PHA Manager Indicted on Embezzlement ChargesRead the Press Release
PHILADELPHIA - Sondra Wong Nelson, 36, of Philadelphia was charged by Indictment, unsealed October 3, 2013, with one count of theft from a federally funded organization and two counts of falsely altering a postal money order, announced U.S. Attorney Zane David Memeger. According to the indictment, between January 2012 and June 2010, during her tenure as a Supervisory Asset Manager at the Philadelphia Housing Authority (PHA), Nelson embezzled close to $8,000 in rent money from PHA tenants and deposited those funds into her personal bank account.
Many of the PHA tenants living in the scattered sites paid their monthly rent at the management offices in the form of money orders made payable to PHA. The indictment alleges that defendant Nelson, in her role as Supervisor Asset Manager at PHA, took many of these money orders, substituted her name for PHA as the payee on the money orders, and deposited the altered money orders in her personal bank account. It is further alleged that as part of her corrupt scheme, defendant Nelson accessed PHA's internal computer database and manipulated the database to falsely reflect that the embezzled rent payments had been received by PHA, even though she knew that she had deposited those funds in her personal bank account.
If convicted, the defendant faces a maximum sentence of 20 years in prison, three years of supervised release, a fine of up to $750,000, and a $300 special assessment.
The case was investigated by the Federal Bureau Investigation, the U.S. Department of Housing and Urban Development's Office of Inspector General, the United States Postal Inspection Service, and the Philadelphia Housing Authority Office of Inspector General. It is being prosecuted by Assistant United States Attorney Sozi Pedro Tulante.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Former Los Angeles-area Pastor Sentenced for Role in $11 Million Medicare Fraud SchemeRead the Press Release
A pastor and owner of a Los Angeles-area medical supply company was sentenced today for his role in a power wheelchair fraud scheme that defrauded Medicare out of more than $11 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney André Birotte Jr. of the Central District of California; Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office; and Special Agent in Charge Joseph Fendrick of the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse made the announcement.
Charles Agbu, 58, of Carson, Calif., was sentenced by U.S. District Judge George H. Wu to serve 87 months in prison and was ordered to pay $5,788,725 in restitution to Medicare. In December 2012, Agbu pleaded guilty to conspiracy and money laundering charges based on his role as owner and operator of Bonfee Inc., a fraudulent durable medical equipment (DME) supply company that Agbu operated with his daughter and co-defendant, Obiageli Agbu, and members of his family from a nondescript office building in Carson. Agbu admitted that he paid patient recruiters and doctors to provide him with fraudulent prescriptions for expensive, highly specialized power wheelchairs and other DME that he, Obiageli Agbu and their co-conspirators used in submitting more than $11 million false claims to Medicare. Agbu billed the power wheelchairs to Medicare at a rate of approximately $6,000 per wheelchair even though he paid approximately $900 wholesale per wheelchair. In many cases, the Medicare beneficiaries to whom Agbu and his co-conspirators claimed they supplied the power wheelchairs and DME did not have any legitimate medical need for the medical equipment, and, in some cases, never received the medical equipment from Agbu’s company. At the time Agbu engaged in this fraud, he was a pastor at Pilgrim Congregational Church in South Central Los Angeles.
On Sept. 30, 2013, and Oct. 2, 2013, Agbu’s co-defendants, Alejandro Maciel, 43, of Huntington Park, Calif., and Dr. Emmanuel Ayodele, 65, of Los Angeles, were sentenced to serve 41 and 37 months in prison and ordered to pay $5,388,755 and $6,355,949 in restitution to Medicare, respectively. Two other co-defendants, Dr. Juan Van Putten and Candelaria Estrada, have pleaded guilty to Medicare fraud charges and are scheduled for sentencing on Dec.12, 2013, and Oct. 31, 2013, respectively. Obiageli Agbu was convicted by a jury on nine counts of conspiracy to commit health care fraud and health care fraud on July 19, 2013. Her sentencing date has not been set.
The case is being investigated by the FBI, HHS-OIG and the California Department of Justice 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 Central District of California. The case is being prosecuted by Trial Attorneys Jonathan T. Baum and Alexander Porter of the Criminal Division’s Fraud Section.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Former Lee County Commissioner Pleads Guilty to Wire FraudRead the Press Release
Fort Myers, Florida - Acting United States Attorney A. Lee Bentley, III announces that on October 3, 2013, former Lee County Commissioner Tammara Ann Hall, a/k/a Tammy Hall (53, Cape Coral), pleaded guilty to wire fraud. She faces a maximum penalty of 20 years in federal prison. Her sentencing hearing is scheduled for January 13, 2014.
According to the plea agreement, Hall was a Lee County Commissioner running for re-election in the November 2010 general election. Between November 2009 and November 2010, Hall diverted and embezzled approximately $33,756 of donor contributions to the Tammy Hall campaign fund, and used the money for personal expenditures unrelated to the campaign. Hall completed Florida Department of State campaign fund quarterly reports and failed to disclose that she had diverted campaign contributions to pay for personal expenses. She falsely represented the nature of the expenditures, which she made for personal purposes, or omitted certain campaign contribution checks from the quarterly reports. Hall stole from her campaign fund by transferring funds electronically from the campaign bank account to her personal bank account. She wrote checks from the campaign bank account and then deposited the checks into her personal bank account. She also deposited certain donor campaign contribution checks directly into her personal bank account. Hall used interstate wires to accomplish the electronic transfer of funds from her campaign account to her personal account at Wachovia Bank.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former Ladue Financial Advisor Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – GREG J. CAMPBELL was sentenced to 38 months in prison, restitution in the amount of $1,851,956 and ordered the forfeiture of his home in Ladue. He earlier pled guilty to diverting over $1.8 million from client retirement accounts to finance his luxury home, cars and lifestyle. He was sentenced October 9 by United States District Judge Audrey G. Fleissig.
According to court documents, from June 2006 until October 2011, Campbell was employed as a financial advisor at Merrill Lynch. Campbell managed clients' Loan Management Accounts (LMAs), which were lines of credit collateralized by securities. Beginning in September 2007 and continuing until the end of his employment in October 2011, Campbell fraudulently diverted more than $1.4 million from LMAs to his own personal accounts and the accounts of others and for his own personal use. He used the money for a down payment on a personal residence, mortgage payments, lease payments on luxury vehicles and living expenses.
In November 2011, Campbell began working as a Senior Wealth Manager for Four Seasons Wealth Management (Four Seasons) in Clayton. Four Seasons was a company that offered securities and advisory services to clients through LPL Financial, LLC, a securities broker-dealer (LPL). Campbell was employed at Four Seasons until October 2012 and managed clients' individual retirement accounts (IRAs). Between November 2011 and October 2012, Campbell diverted funds from his clients' IRAs to his own personal accounts. Campbell took various steps to conceal his fraud. He changed the mailing addresses on clients' accounts, without their knowledge, to an address to which he had access so that clients would not receive account statements. In at least one instance, Campbell falsely stated on distribution documents that he was the client's grandson, when he was not related to the client. During his tenure at Four Seasons, Campbell fraudulently diverted more than $360,000 from client accounts. Campbell used fraudulently diverted funds to pay for personal expenses, including renovations to his personal residence, mortgage payments, vehicle lease payments and living expenses.
Campbell, Ladue, MO, pled guilty last June to two felony counts of wire fraud.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney's Office.
Former Hartford Resident Sentenced to 10 Years in Federal Prison for Sex Trafficking of A MinorRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that KAMAR JAMES, also known as “Sean Steppa,” “Sean Lawson” and “Akamar Lawson,” 31, a citizen of Jamaica last residing in Hartford, was sentenced on October 9 by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor.
According to court documents and statements made in court, in 2011, JAMES recruited a minor victim whom JAMES knew to be under the age of 18 to engage in prostitution. On multiple occasions, JAMES transported the minor victim from Connecticut to streets in New York City where the victim would meet men who would pay her for sexual encounters. JAMES also posted pictures of the minor victim on the Internet to advertise the victim’s prostitution services. He then transported the victim to hotels in the New York City area when the victim engaged in pre-arranged prostitution encounters. The victim turned over all of the proceeds from the prostitution encounters to JAMES.
Judge Bryant ordered JAMES to pay restitution of $12,750 to his victim.
JAMES has been detained since his arrest on February 3, 2012. On June 27, 2013, he pleaded guilty to one count of sex trafficking of a minor.
This matter was investigated by the Federal Bureau of Investigation and the Hartford Police Department, with the assistance of U.S. Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney David E. Novick.
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(203) 821-3722 [email protected]Former Director and Treasurer of Chicago Black Nurses Association Sentenced for Fraud SchemeRead the Press Release
Springfield, Ill. – Both a former program director and treasurer of the Chicago Chapter of the National Black Nurses Association have been sentenced to prison terms for their respective roles in a scheme that defrauded state grant programs of at least $377,573, from 2005 to 2009. On Oct. 8, 2013, U.S. District Judge Sue E. Myerscough sentenced Margaret A. Davis, former association director, to 41 months (3 years, 5 months) in prison and ordered that Davis pay restitution in the amount of $377,573. On Oct. 15, 2013, Tonja Cook, former treasurer, was sentenced to 19 months (1 year, 7 months) in prison and to pay restitution in the amount of $137,111. Both women were ordered to report to the federal Bureau of Prisons on Jan. 2, 2014.
Davis, 62, pled guilty on Feb. 27, 2013, to mail fraud and money laundering in the scheme that defrauded state grant programs from 2005 to 2009. Cook, 46, pled guilty on Nov. 26, 2012, to one count of mail fraud for her role in assisting Davis in the scheme.
In court documents and during Davis’s sentencing hearing, the government presented evidence that established that Davis, with Cook’s assistance, commingled and converted a substantial amount of grant funds to her personal use, to the use and benefit of her family and friends, and to the use and benefit of public officials and political organizations. Davis also used grant funds to support a not-for-profit healthcare advocacy organization known as the African American Aids Network, which Davis controlled. Cook also received some funds which she used for her personal expenses and benefit.From December 2005 to June 2009, Davis solicited and received 15 different grants and contracts totaling $1,062,000 on behalf of the Chicago Chapter of the Black Nurses Association from Illinois state agencies including the Department of Commerce and Economic Opportunity; Department of Public Health; Department of Human Services; and the State Board of Education. The grants were purportedly to provide funds for numerous healthcare advocacy-related and nursing student assistance programs, including recruitment of 200 students from one Illinois senatorial district to participate in the “Young Enough to Make a Difference Project;” educational activities to promote public awareness of HIV/AIDS, breast and cervical cancer, prostate cancer, and pandemic flu; and, implementation of two nursing student internship programs.
Davis converted more than $200,000 in grant funds to cash at a currency exchange located near her residence. More than $100,000 in grant funds were made payable to her organization, the African American Aids Network, although Davis failed to disclose her interest in the organization to the State of Illinois, concealed the amount of grant and contract funds to be disbursed, and forged the name of a co-signatory on the organization’s bank account checks.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Former Detroit Mayor Kwame Kilpatrick, Contractor Bobby Ferguson and Bernard Kilpatrick Sentenced on Racketeering, Extortion, Bribery, Fraud and Tax ChargesRead the Press Release
Former Detroit Mayor Kwame M. Kilpatrick, 43, contractor Bobby Ferguson, 44, and Bernard Kilpatrick, 72, have all been sentenced for their roles in the wide-ranging Detroit public corruption scandal, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by John Robert Shoup, Acting Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation, Randall Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division, Richard Weber, Chief of IRS
Criminal Investigation and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development - Office of Inspector General.Kwame Kilpatrick was sentenced to 28 years in federal prison for using his position as Mayor of Detroit and Michigan State House Representative to execute a wide ranging racketeering conspiracy involving extortion, bribery and fraud.
Bobby Ferguson was sentenced to 21 years in federal prison for being the catalyst at the center of an extortion scheme that netted him millions of dollars in city contracts.
Bernard Kilpatrick was sentenced to 15months on a charge of subscribing false tax returns. The jury was unable to reach a unanimous decision on the racketeering conspiracy charge.
United States Attorney Barbara L. McQuade stated, “This case is not so much about punishing for the past as it about shaping the future. These sentences will deter other officials from stealing from the people and will attract honest public servants to office.”
In March, Kwame Kilpatrick was convicted by a jury of 24 counts of extortion, mail fraud, tax violations and racketeering. The jury deliberated for about 14 days before returning the verdicts, concluding a five-month long trial before United States District Judge Nancy G. Edmunds.
The evidence presented at trial established that Kwame Kilpatrick and contractor Bobby Ferguson participated in a racketeering conspiracy to financially enrich themselves, their associates and their families by using the power and authority of Kwame Kilpatrick=s position as Mayor of Detroit, as well as his position as a member of the Michigan House of Representatives, to commit extortion, bribery and fraud, and to defraud donors to nonprofit entities under the control of Kwame Kilpatrick and his associates, including the Kilpatrick Civic Fund, Kilpatrick for Mayor, and the Kilpatrick Inaugural Committee.
At the heart of the conspiracy was a scheme to use the power and authority of Kwame Kilpatrick=s office as Mayor of Detroit to extort municipal contractors by coercing them to include Ferguson in public contracts, and to rig the awarding of public contracts to ensure that Ferguson obtained a portion of the revenue from those contracts. Ferguson obtained at least $73 million in revenues from municipal contracts through this scheme, a portion of which he shared with his co-conspirators.
Evidence showed that during Kwame Kilpatricks tenure as a Representative of the Michigan House and as the Mayor of Detroit, Kwame Kilpatrick and Bobby Ferguson obtained more than half a million dollars from the State of Michigan and donors to nonprofit entities they controlled, including the Kilpatrick Civic Fund, Kilpatrick for Mayor, and the Kilpatrick Inaugural Committee, under the false pretense that the money would be used to better the community or for campaign expenses when, in reality, the money was used for personal or other impermissible expenses, including vacations to luxury resorts, spa treatments, yoga lessons and golf clubs.
Further evidence showed that during Kwame Kilpatricks tenure as mayor, he solicited and accepted payments and property valued at over one million dollars from persons seeking business with the City or its General Retirement System or Police and Fire pension funds.
Evidence was also presented that in return for the proceeds from the public contracts Ferguson received, Ferguson kicked back significant sums of cash, items of value or other benefits to Kwame Kilpatrick. Further evidence was presented that during his tenure as Mayor, Kwame Kilpatrick used more than $840,000 cash, derived from the conspiracy, to make deposits into his bank accounts, pay his credit card bills, purchase cashiers checks and clothing, and to repay loans.
As a result of the lengthy and wide-ranging investigation into corruption in the City of Detroit, the government has obtained convictions from thirty-two other individuals.
The investigation of this case was conducted by agents of the FBI, EPA-CID and IRS-CID. The case was prosecuted by Assistant U.S. Attorneys Mark Chutkow, R. Michael Bullotta, Jennifer Blackwell and Eric Doeh.
Florida Man Who Illegally Mailed Nearly 20,000 Oxycodone Pills to West Virginia Sentenced to 14 Years in PrisonRead the Press Release
Ryan Moore received more than $330,000 cash in connection with pill distribution plot
BECKLEY, W.Va. – A Florida man who illegally mailed packages containing thousands of powerful prescription painkiller pills to individuals located in West Virginia was sentenced to 14 years in federal prison, announced U.S. Attorney Booth Goodwin. Ryan D. Moore, of Hillsborough County, Fla., previously pleaded guilty in May to conspiracy to distribute oxycodone and conspiracy to commit money laundering. From at least October 15, 2010 and April 27, 2012, Moore mailed packages containing a total of approximately 17,000 30-milligram oxycodone tablets to individuals located in West Virginia. Moore, 32, sent more than one hundred express mail packages from U.S. Postal Service facilities located near Tampa, Fla. to a post office box at Glen Fork, W.Va. Moore also mailed packages to a location in Calvin, Nicholas Co. All of the packages mailed by Moore contained oxycodone tablets.
U.S. Attorney Booth Goodwin said, “When tens of thousands of painkillers are illegally mailed in just over a year’s time, it says something about the extent of this district’s pill problem. My office’s commitment to prosecute pill dealers will continue.”
Moore received at least $330,000 in cash as payment for the packages that contained oxycodone tablets. The cash was deposited by known individuals into Moore’s bank accounts during the scheme. Moore knew that the cash payments deposited into his bank account were proceeds collected from illegal pill transactions.
Moore mailed packages containing oxycodone pills to two Wyoming County residents, Christopher and Jennifer Brooks, from at least March 2010 until April 27, 2012. Christopher Brooks, 36, and Jennifer Brooks, 29, both of Glen Fork, W.Va., previously pleaded guilty in February to conspiracy to distribute oxycodone and money laundering charges. Mr. and Ms. Brooks received at least 130 express mail packages containing a total of approximately 17,000 30-milligram oxycodone tablets between October 15, 2010 and April 27, 2012. As payment for the oxycodone pills, Mr. and Ms. Brooks deposited at least $300,000 cash into bank accounts that were owned by Moore.
Mr. Brooks was sentenced to 10 years in federal prison in August. Also in August, Mrs. Brooks was sentenced to seven years in prison for her role in the scheme.
Moore also mailed packages containing oxycodone to convicted Nicholas County pill dealer, Keith Keiffer. Keiffer, 32, of Calvin, Nicholas County, W.Va., received at least 15 express mail packages that contained a total of approximately 1,400 30-milligram oxycodone tablets from Moore. Keiffer, in exchange for the oxycodone tablets, deposited thousands of dollars’ cash into Moore’s bank accounts. Keiffer was sentenced to four years in federal prison in July.
Moore’s sentence was imposed by United States District Judge Irene C. Berger.
The Internal Revenue Service - Criminal Investigation, the U.S. Postal Inspection Service, the Drug Enforcement Administration and the Wyoming County Sheriff’s Department conducted the investigation. Assistant United States Attorney Haley Bunn handled prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Felon Convicted of Drug Trafficking and Possessing FirearmsRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces that on October 10, 2013, a federal jury today found Charlie Vernon, Jr. (Tampa, 53) guilty of possessing with the intent to distribute more than an ounce of crack cocaine and being a felon in possession of firearms and ammunition. Vernon faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for January 6, 2014. Vernon was indicted on February 28, 2013.
According to testimony and evidence presented at trial, officers from the Tampa Police Department executed a search warrant at Vernon’s residence on February 1, 2013. They recovered two ounces of crack cocaine, various quantities of powder cocaine and marijuana, and paraphernalia to package and distribute those drugs, including scales, baggies, crack pipes, and cutting instruments. In addition, officers also found four firearms and more than 800 rounds of ammunition. Prior to February 2013, Vernon had previously been convicted of three felonies for drug trafficking offenses and, as such, was prohibited from possessing any firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Matthew Jackson and Natalie Adams.
Federal Jury Finds Two Men GuiltyOf Gang Crimes in Dodge CityRead the Press Release
WICHITA, KAN. – A federal jury today found two men guilty of gang crimes including murder in Dodge City, U.S. Attorney Barry Grissom said today.
Pedro Garcia, 27, Dodge City, Kan., and Gonzalo Ramirez, 28, Dodge City, Kan., both members of the Norteno street gang, were convicted on all counts, including:
- Count one (both defendants): Conspiracy by members of the Norteno gang to commit crimes in violation of the federal Racketeer Influenced and Corrupt Organizations Act.
- Count two (both defendants): Conspiracy to commit murder. On June 8, 2009, the defendants conspired to murder Israel Peralta, Mariano Sorano, Faustino Peralta and Roberto Arco.
- Count three (both defendants): Murder. On June 8, 2009, the defendants murdered Israel Peralta.
- Count four (both defendants): Attempted murder. On June 8, 2009, the defendants attempted to murder Mariano Sorano, Faustino Peralta and Roberto Arco.
- Count five (both defendants): Assault with a dangerous weapon. On June 8, 2009, the defendants used firearms to assault Israel Peralta, Mariano Sorano, Faustino Peralta and Roberto Arco.
- Count six (both defendants): Possession and discharge of a firearm during a violent crime. One June 8, 2009, the defendants discharged firearms in furtherance of a crime of violence.
- Count seven (both defendants): Assault with a dangerous weapon. On June 8, 2009, the defendants used a firearm to assault Isidro Raleas-Velasquez.
- Count eight (both defendants): Conspiracy to commit assault with a dangerous weapon. On June 8, 2009, the defendants conspired to assault Isidro Raleas-Velasquez with a firearm.
- Count nine (both defendants): Possessing and brandishing a firearm during a violent crime. On June 8, 2009, the defendants possessed and brandished firearms in furtherance of a crime of violence.
- Count ten (Ramirez only): Conspiracy to murder. On Oct. 4, 2008, the defendants conspired to murder Rumalda Hipolito and Abel Hernandez.
- County eleven (Ramirez only): Attempted murder. On Oct. 4, 2008, the defendants attempted to murder Rumalda Hipolito and Abel Hernandez.
- Count twelve (Ramirez only): Assault with a dangerous weapon. On Oct. 4, 2008, the defendants assaulted Rumalda Hipolito and Abel Hernandez with a firearm.
- Count 13 (Ramirez only): Possession and discharge of a firearm during a violent crime. On Oct. 4, 2008, the defendants possessed and discharged firearms in furtherance of an aggravated assault.
During the June 8, 2009, incident, the defendants and other gang members fired at a group of men gathered at a trailer park located at 201 E. McArtor in Dodge City. Peralta was killed in the shooting.
On the same date, the defendants and other gang members robbed Isidro Raleas-Valasquez and Alonzo Diego at their home in the 1000 block of Ave. E. They struck Raleas-Vasquez in the head with a gun and stole money from the victims.
In the Oct. 4, 2008, incident, the Ramirez used a firearm to attack a group of men they believed to be members of the rival Sureno gang at a residence in the 1100 block of 4th Ave. in Dodge City.During trial, prosecutors presented evidence that members of the Nortenos committed crimes including murder, attempted murder, conspiracy, assault, robbery and distribution of narcotics for the purpose of enriching themselves and creating a climate of fear in order to intimidate rival gang members and the general public.
Sentencing is set for Jan. 6, 2014. The crimes carry the following penalties:
Conspiracy: A maximum penalty of 20 years and a fine up to $250,000.
Violent crimes in furtherance of racketeering: A maximum penalty of 20 years and a fine up to $250,000; or a maximum penalty of 10 years and a fine up to $250,000 depending on the type of violent crime.
Murder in furtherance of racketeering: A maximum penalty of life in prison, and a fine up to $250,000.
Possession or discharge of a firearm in furtherance of a crime of violence: Not less than five years nor more than life and a fine up to $250,000..
Conspiracy to commit assault with a dangerous weapon in furtherance of racketeering: A maximum penalty of three years and a fine up to $250,000.Grissom commended the Dodge City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff's Office, the Ford County Attorney’s Office and the Kansas Bureau of Investigation, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.
Federal Judge in El Paso Sentences Michigan Businessman for Role in Scheme to Defraud the El Paso Independent School DistrictRead the Press Release
In El Paso yesterday, U.S. District Judge Frank Montalvo sentenced 61-year-old Gary Lange of Haslett, Michigan, to two years in federal prison and ordered him to pay more than $2.89 million in restitution for scheming to secure and maintain a lucrative El Paso Independent School District special education services contract announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist.
In February 2009, Lange pleaded guilty to one count of conspiracy to commit mail fraud and deprivation of honest services. By pleading guilty, Lange admitted that from February 2003 to October 2007, he conspired with his business partner Joseph O’Hara of Albany, NY, former El Paso Independent School District Associate Superintendent Tomas Gabaldon and former El Paso Independent School District Trustee Sal Mena to fraudulently secure and maintain a contract to provide software to the special education department of EPISD and to provide services to obtain federal and state reimbursement funds for special education programs. Lange further admitted that he facilitated O’Hara in paying $100,000 in bribes to Gabaldon and a $5,000 kickback to Mena in 2005 for their help in securing the contract for O’Hara’s company, Strategic Government Solutions, Inc. SGS failed to provide working software to EPISD as required by the contract and it submitted improper claims for reimbursement funds.
“The sentencing of Mr. Lange once again demonstrates the continued commitment of the FBI to bring to justice those individuals who erode the public’s confidence in those entrusted to manage our educational institutions. The FBI will continue to aggressively pursue individuals who place their personal interests above those of the taxpayers of El Paso,” stated FBI Special Agent in Charge Douglas E. Lindquist.
Gabaldon and O’Hara have been sentenced to four years and three years, respectively, in federal prison and ordered to pay the restitution to EPISD for their roles in the scheme. Mena, who also pleaded guilty to a conspiracy charge, is scheduled to be sentenced at 9:00am on December 10, 2013, before Judge Montalvo.
The case was investigated by the Federal Bureau of Investigation along the U.S. Department of Education—Office of Inspector General. Assistant United States Attorneys Chris Skillern, Donna Miller and Laura Gregory prosecuted this case on behalf of the Government.
Federal Inmate Gets 19 Additional Years in Prison for Second Murder for Hire SchemeRead the Press Release
Tampa, Florida – On October 7, 2013, U.S. District Judge William J. Castagna sentenced Alexander Shevgert, an inmate at Coleman Federal Prison and former resident of Sarasota, to an additional 19 years in federal prison for a murder for hire scheme in which he attempted to murder three family members. Shevgert pleaded guilty on July 12, 2013.
According to court documents, between July 2011 and May 2012, Shevgert, while incarcerated at Coleman Federal Prison, solicited others to effect the murders of three family members identified herein as G.K., V.K. and GK. At the time, Shevgert was serving a 25 year prison sentenced for conspiracy to travel across state lines with intent to kill, injure, and harass another person, and traveling across state lines with intent to kill, injure an harass another person. Two of the three individuals that Shevgert wanted murdered were victims from the previous case. Shevgert believed that if he was able to effect the murders of the victims he might have a greater chance of success during an appeal of the previous case. He thought it would be more believable that he was not guilty of harming the victims in the first case if the victims were harmed again while he was incarcerated. Further, Shevgert wanted to ensure that the three victims, G.K. V.K. and G.K were not available to testify at any further proceedings.
After soliciting other inmates to help arrange for the murders, law enforcement was notified, and an investigation was conducted. An undercover detective, posing as a “hit man,” exchanged phone calls, emails, and met with Shevgert. During the exchanges, Shevgert discussed and arranged the murders of the victims. As payment for the murders, Shevgert provided the hit man with detailed information regarding a friend of his, identified herein as J.S. Shevgert believed “J.S.” had a substantial amount of valuable personal property at his home. Shevgert instructed the the hit man to commit a robbery of J.S. He told the “hit man” to steal his property and sell the stolen items as payment for the murders. Shevgert advised the hit man that it did not matter to him if J.S. was murdered during the robbery.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
Father and Son, Who Owned/Operated A Physician House Call Company and Billed for Services Not Rendered, Are Convicted on Conspiracy and Health Care Fraud ChargesRead the Press Release
Dr. Nicolas Padron Pleaded Guilty to Role in Conspiracy
DALLAS — A federal jury has convicted two local men on conspiracy and health care fraud charges related to their operation of a physician house call company in North Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
On October 4, 2013, following a five-day trial before U.S. District Judge David C. Godbey, Lawrence Dale St. John, 66, and his son, Jeffrey Dale St. John, 41, both of Grand Prairie, Texas, were convicted on conspiracy and health care fraud charges related to their operation of A Medical House Calls, a physician house call company.
Specifically, each defendant was convicted on one count of conspiracy to commit health care fraud and 13 substantive counts of health care fraud. Each count carries a maximum statutory sentence of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. Judge Godbey remanded Jeffrey St. John into custody; Lawrence St. John was already in custody. Sentencing is set for January 27, 2014.
Co-defendant Dr. Nicolas Alfonso Padron, 54, of Garland, Texas, pleaded guilty on September 10, 2013, to one count of conspiracy to commit health care fraud. Dr. Padron, who joined A Medical as its medical director in December 2009, testified, as did a number of nurse practitioners, physician assistants and company staff, that services billed had never been performed.
In a separate case, Dr. Padron also entered a guilty plea to one count of conspiracy to unlawfully distribute a controlled substance stemming from his operation of Padron Wellness Clinic, a “pill-mill,” that he operated in Dallas. Dr. Padron has been in custody since his arrest in June 2012 on a related federal criminal complaint.
A Medical provided physician visits to Medicare beneficiaries in their homes rather than at a doctor’s office. A Medical, which was also known as A+ Medical House Calls and ANM Physician House Calls, was owned by Lawrence St. John; Jeffrey St. John ran its daily operations. A Medical had locations in Mesquite, Texas; Dallas; and Carrollton, Texas. Its primary purpose was to certify and re-certify Medicare beneficiaries for home health services, regardless of the true condition of the patient.
Once A Medical established a Medicare beneficiary for physician home visit services, A Medical would submit billing for fraudulent care plan oversight claims. The company didn’t provide primary care physician services to Medicare beneficiaries.
According to documents filed in the case and evidence presented at trial, from May 2010 to January 2012, the defendants conspired together and with others to defraud the Medicare program. A Medical, at the direction of Lawrence and Jeffrey St. John, submitted claims to Medicare using Dr. Padron’s unique Medicare number, with Dr. Padron’s permission, regardless of the claim’s merit.
The defendants conspired together to bill Medicare for care plan oversight by Dr. Padron for numerous beneficiaries when Dr. Padron was out of town, including dates when he was out of the country and on a cruise.
In total, the defendants billed taxpayers for $1.4 million of services that were either not medically necessary or not rendered at all. Through the fraudulent certifications, Medicare was billed an additional $9.7 million by home health agencies.
The investigation was conducted by U.S. Department of Health and Human Services - Office of Inspector General, the FBI and the Medicaid Fraud Control Unit of the Office of the Attorney General of Texas. Assistant U.S. Attorneys Kate Pfeifle and J. Nicholas Bunch are in charge of the prosecution.
Fairfax Woman Convicted of Sex Trafficking A 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Stephanie Chapman, 28, of Fairfax, Va., was convicted today by a federal jury on charges of conspiracy to commit sex trafficking of a child, sex trafficking of a child, and interstate transportation of a minor for the purposes of prostitution.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after the verdict was accepted by United States District Judge Liam O’Grady.
Chapmanfaces a maximum penalty of life in prison, with a mandatory minimum term of ten years of imprisonment, when she is sentenced on January 24, 2014.
Chapman was indicted on July 11, 2013, by a federal grand jury. According to court records and evidence adduced at trial, between February 27, 2013 and March 12, 2013, Chapman and her boyfriend, Ronnie Holmes, met a 15-year-old girl and recruited her to be a prostitute for them. During that time, Chapman and Holmes took sexually suggestive photographs of the girl, sent the photographs to potential customers, posted the photographs on Backpage.com, drove the girl to meet with customers at locations in Virginia, Maryland, and the District of Columbia, and took half of the money paid to the girl after she engaged in sex with customers for money.
Chapman’s co-defendant, Ronnie Holmes, previously pleaded guilty to sex trafficking of a child.
This case was investigated by the Federal Bureau of Investigation and the Fairfax County Police Department. Special Assistant United States Attorney Stacey Luck and Assistant United States Attorney Michael J. Frank 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.District Man Sentenced to Two Years in Prison for Producing and Selling False Identification DocumentsDefendant Is Among Seven People to Plead Guilty Following Federal Investigation of Ring in Northwest WashingtonRead the Press Release
WASHINGTON – Rocio Sanchez-Flores, also known as “Amador,” or “Taliban,” has been sentenced to two years in prison for his role in a ring that produced and sold false identification documents in the Columbia Heights area of Northwest Washington.
The sentencing, which took place Oct. 16, 2013 in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr. and Scot Rittenberg, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Washington.
Sanchez-Flores, 30, was among seven defendants indicted in October 2012 in the U.S. District Court for the District of Columbia, following an investigation into sales of fraudulent identity documents near the Columbia Heights Metrorail station at 14th and Irving Streets NW. Like Sanchez-Flores, the other six defendants pled guilty to charges in the case.
Sanchez-Flores, of Washington, D.C., pled guilty in March 2013 to a conspiracy charge. He was sentenced by the Honorable Emmet G. Sullivan. As part of his plea agreement, Sanchez-Flores agreed to the forfeiture of $5,000.
Others pleading guilty to conspiracy include Jorge Castaneda, 39, also known as “Francisco Mendoza” and “George,” of Washington, D.C.; Victor Bedillo, 42, of Silver Spring, Md.; Juan Guarneros, also known as “Lobo,” 54, of Washington, D.C.; Javier Lopez, also known as “Pumba,” 46, of Washington, D.C.; Juan Lopez-Medina, also known as “Juanito,” 44, of Washington, D.C. , and Carlos Armando Rivas-Rivas, also known as “Paisa,” 42, of Silver Spring, Md. Except for Guarneros, all also pled guilty to a charge of transfer of fraudulent identity documents. Guarneros pled guilty to a charge of production of fraudulent documents.
Castaneda was sentenced in September 2013 to a 27-month prison term. The remaining five defendants were sentenced in June 2013. Bedillo was sentenced to nine months of incarceration. Guarneros was sentenced to 10 months of incarceration. Javier Lopez was sentenced to 18 months in prison. Lopez-Medina was sentenced to 10 months of incarceration, and Rivas-Rivas was sentenced to 405 days of incarceration.
All of the defendants also acknowledged that, because they are not U.S. citizens, they consent to removal from the country upon completion of their sentences.
According to a statement of offense, signed by the defendants as well as the government, members of the group participated in the ring from in or around March 2010 until October 2012, when authorities made arrests. The defendants produced and sold false documents, including permanent resident cards, employment authorization cards, Social Security cards, and State licenses and identification cards. Depending on the type and quality of fraudulent identity documents, the defendants charged customers between $40 and $200 per transaction.
Potential customers typically provided their photographs, names, dates of birth and the kinds of fraudulent documents they wanted to purchase. Documents were manufactured at Sanchez-Flores’s home in the 1500 block of Ogden Street NW.
Jorge Castaneda also was charged in a second case involving a separate group of individuals who sold fraudulent identity documents in the Columbia Heights area. Authorities arrested seven other members of that conspiracy, which was led by Maria Campos-Sanchez, 30, also known as “Betty.” Campos-Sanchez received a 24-month prison term, and the other defendants’ sentences were nine months of incarceration or higher.
The cases were investigated by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Washington, D.C. field office. The cases are being prosecuted by Assistant U.S. Attorneys Frederick Yette, T. Patrick Martin and Mona Sahaf, of the U.S. Attorney’s Office for the District of Columbia.
13-342District Man Sentenced to 23 Years in Prison for 2012 Murder in Northeast Washington-Defendant Shot Victim in Broad Daylight at A Busy Metro Bus Stop-Read the Press Release
WASHINGTON – Detrek Baker, 24, of Washington, D.C., was sentenced on Oct. 4, 2013 to 23 years in prison for the April 2012 slaying of a man at a Northeast Washington bus stop, U.S. Attorney Ronald C. Machen Jr. announced.
Baker pled guilty in April 2013, in the Superior Court of the District of Columbia, to a charge of second-degree murder. He was sentenced by the Honorable Herbert B. Dixon, Jr. Upon completion of his prison term, Baker will be placed on five years of supervised release.
According to the government’s evidence, on Saturday, April 28, 2012, the victim, James Sherrod, Jr., and a friend, both 22, walked to the U5 Metro bus stop in front of Mayfair Manor, in the 700 block of Kenilworth Terrace NE. Baker, who was carrying a red, black, and grey single-strap book bag, was standing at the bus stop along with several other young men.
For nearly an hour, the victim, Baker, and others stood at the bus stop, talking. At about 1:40 p.m., without provocation or warning, Baker pulled out a gun and shot Mr. Sherrod in the head. When the victim collapsed, Baker stood over him and fired additional bullets into his body.
Immediately after the shooting, Baker ran toward 800 Kenilworth Avenue NE. Eyewitnesses observed him pause beside one of the trash dumpsters there while running away; later they directed the police to those dumpsters. Inside one of the dumpsters was a red, black, and grey single-strap book bag and a .357 revolver. Inside the revolver were five spent casings and one live round. Two bullets were recovered from Mr. Sherrod’s body during an autopsy; police determined that those bullets were fired from the .357 revolver found in the dumpster.
Individuals at the bus stop as well as several members of the community spoke with law enforcement. They reported what they had observed at the bus stop. These eyewitnesses were instrumental not only in helping the police identify Baker as the shooter within hours of the murder, but also in strengthening the evidence against him, ultimately resulting his guilty plea.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Ethel Gregory, Marian Russell, and Kendra Johnson; Lead Paralegal Specialist Sharon Newman; Victim/Witness Advocate Marcia Rinker, and Intelligence Specialists Lawrence Grasso, Shannon Alexis, Sharon Johnson, and William Hamann. Finally, U.S. Attorney Machen recognized former Assistant U.S. Attorney J.P. Cooney and Assistant U.S. Attorney Kimberley Nielsen, who investigated and prosecuted the case.
13-344Detroit Tax Preparer Sentenced for Aiding in Fraudulent ReturnsRead the Press Release
A former tax preparer was sentenced today to a term of imprisonment of one year and one day and was ordered to pay restitution to the IRS in the amount of $74,000 after having been convicted of one count of willfully aiding in the preparation and filing of fraudulent income tax returns, United States Attorney Barbara L. McQuade announced.
Ms. McQuade was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation.
Anthony Womack, 57, of Detroit, was sentenced by U.S. District Judge Gerald Rosen in Detroit. Mr. Womack pleaded guilty to the charge on July 15, 2013.
From approximately 2008 through 2010, Womack prepared tax returns in Southfield, Michigan, under the name “Tax Consultants Inc.” Womack prepared and filed federal income tax returns for 2008 through 2010, which he knew were fraudulent, with the Internal Revenue Service in the name of various taxpayers. The returns were filed with inflated charitable contributions, false unreimbursed employee expenses, and false education credits. Womack caused a tax loss of more than $96,000 to the United States by his fraudulent conduct. In addition, Womack did not claim the income from his tax preparation business on his personal income tax returns.
Erick Martinez, Special Agent in Charge stated, “IRS, criminal investigators uncovered Mr. Womack’s illegal activity and he is now paying the price for his actions.”
The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Deltona Man Sentenced to 15 Years in Prison for Firearm and Narcotics CrimesRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Albert Thompson, III (31, Deltona) to 15 years in federal prison for possessing a firearm as a convicted felon, possessing controlled substances with intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime. The court also ordered Thompson to forfeit three firearms as part of his sentence. Thompson pleaded guilty on July 23, 2013.
According to court documents, on October 23, 2012, officers from the Sanford Police Department responded to a residence in Sanford to investigate a shooting incident. The responding officers located Thompson at the residence along with other individuals. Further investigation led to the discovery of Thompson’s rental vehicle on the premises. Officers executed a search warrant on the vehicle and recovered two loaded firearms and an assortment of controlled substances including marijuana, oxycodone pills, crack/cocaine, and cocaine as well as a narcotics cutting agent and two scales suitable for weighing narcotics. Forensic analysis of the evidence revealed that Thompson’s DNA was present on one of the seized firearms and that his fingerprints were located on the exterior and interior of the rental vehicle.
Thompson has multiple prior felony convictions and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the Sanford Police Department and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
It is another case prosecuted as a part of the Department of Justice's "Project Safe Neighborhoods" program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Delaware Man Sentenced to 10 Years in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – James Powell, 49, of Bridgeville, Del., was sentenced on Oct. 1, 2013, to 10 years in prison on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Powell pled guilty to the charges in April 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Reggie B. Walton. Powell was convicted in Prince George’s County, Maryland in 1997 of third-degree sexual abuse in a case that involved a child and was therefore subject to a 10-year mandatory minimum sentence. Following completion of his prison term, Powell will be placed on 20 years of supervised release. He also will be required to register as a sex offender for 25 years after his prison term.
According to the government's evidence, on Sept. 10, 2012, Powell contacted an undercover officer with the FBI's Child Exploitation Task Force, who had entered a social network site frequented by individuals with a sexual interest in children. Over the next few days, Powell engaged in online e-mail, instant message, and text message conversations with the undercover officer, whom Powell believed was the father of an under-aged girl. During this period of time, Powell arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child. During the course of their communications, Powell also sent the undercover officers two images of child pornography.
On Sept. 12, 2012, Powell traveled from Delaware to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested. He has been in custody ever since.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agent of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-343Deland Man Sentenced to More Than Seven Years for Possession of Child PornographyRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Colby William Ochsenhirt (35, DeLand) to seven years and five months in federal prison for possession of child pornography. He pleaded guilty on May 29, 2013.
According to court documents, the investigation began when an Internet website reported to the National Center for Missing and Exploited Children (NCMEC) that a specific Internet Protocol (IP) address was engaged in a "video chat" depicting child pornography. Law enforcement officials determined the location of the IP address and interviewed Ochsenhirt. During the interview, Ochsenhirt admitted that he viewed the child pornography video and that he did not know whether the video was live streaming or not, meaning that he did not know if the child was being victimized at the time that he viewed it. Ochsenhirt admitted that he sought videos of children being victimized in live time and had been doing so for five to six months. Search warrants were executed upon computers and hard drives located at Ochsenhirt’s home and place of employment. Forensic analysis revealed that Ochsenhirt possessed more than 1,700 images and 240 videos containing child pornography.
“Possessing child pornography is not a victimless crime. It haunts the children depicted in it, who live daily with the knowledge that countless strangers use an image of their worst experiences for their own gratification,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. “Our local law enforcement partners play an essential role in helping us arrest and prosecute these child predators.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Volusia County Sheriff’s Office, and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Davenport Man Sentenced for Bank RobberyRead the Press Release
DAVENPORT, IA - On October 18, 2013, Ceneca Romale Johnson, age 32, from Davenport, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 262 months in prison, for bank robbery, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey ordered Johnson to serve five years of supervised release following imprisonment, and pay $100 towards the Crime Victims Fund. No fine was imposed. In June of 2013, Johnson pled guilty to robbing the Southeast National Bank in Davenport, Iowa, while armed with an imitation pistol. Johnson was apprehended a short distance from the bank by officers of the Davenport, Iowa, Police Department that same day. The stolen money was recovered.
This case was investigated by the Davenport, Iowa, Police Department and the Federal Bureau of Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Credit Union Supervisor Pleads Guilty to Embezzling More Than $437,000Read the Press Release
PROVIDENCE, R.I. – Crystal Ferreira, 27, of Fall River, Mass., faces up to 30 years in federal prison when she is sentenced in January, having pled guilty on October 4, 2013, to embezzling more than $437,000 from a Columbus Credit Union branch office in East Providence where she was employed as a supervisor, announced United States Attorney Peter F. Neronha; East Providence Police Chief Joseph H. Tavares; and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
At the time of her guilty plea to one count of embezzlement from a federally insured credit union, Ferreira admitted to the court that beginning in May 2012 she began taking large sums of money from the credit union’s vault, ATM, and cash shipments delivered to the credit union. According to information presented to the court, on September 18, 2012, during an investigation by East Providence Police into an unrelated robbery of the credit union, Ferreira admitted that she had been embezzling funds. She told police she embezzled the funds in response to a demand for cash being made to her by two men she said threatened her, her co-workers and their families. She later recanted the story of the demand for cash and the threats.
Ferreira admitted to the court that beginning in May 2012, she first took $10,000 from the vault, and replaced it with money from the ATM. She took another $10,000 a few weeks later. On another day, Ferreira admitted to the court, on several occasions she placed as much bundled cash as she could in shopping bags which she later removed from the credit union. In addition, Ferreira admitted to embezzling two bulk money shipments of $65,000 each which were delivered to the branch office but which she never entered into the computer system. A Credit union audit determined that Ferreira embezzled $437, 250.
Ferreira is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on January 9, 2014. At sentencing, Ferreira faces statutory penalties of up to 30 years in federal prison to be followed by up to 5years supervised release and a fine of up to $1,000,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams and Special Assistant U.S. Attorney Benjamin S. Towbin.
The matter was investigated by East Providence Police with the assistance of the FBI.
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