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Tuesday 6 August 2013
Twin Brother Pharmacists Admit to Defrauding Patients and Insurance Companies of $1.5 MillionRead the Press Release
NEWARK, N.J. – Two pharmacists – twin brothers who previously owned the West Orange Pharmacy – today admitted reaping at least $1.5 million in illicit gains by defrauding patients, Medicaid and insurance companies over the past 15 years, U.S. Attorney Paul J. Fishman announced.
Robert Carlucci, 69, and William Carlucci, 69, both of Florham Park, N.J., pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to separate informations charging them with conspiring to commit health care fraud.
According to documents filed in this case and statements made in court:
Robert Carlucci, William Carlucci, and another conspirator (identified as “L.S.” in the charging documents) participated in a variety of schemes designed to cheat customers and bilk insurance companies out of at least $1.5 million.
They used a practice they referred to as “TRADE-QUICK” to under-fill prescriptions. Each letter in “TRADE-QUICK” corresponded to a number, beginning with “T” for “1” through “K” for “0.” The conspirators would enter a two-letter code into the West Orange Pharmacy computer system that indicated how much of the prescription they intended to fill. The code “QK” indicated that a prescription for 90 dosage units would instead be filled with 60 dosage units, because the “Q” stood for the number “6” and the “K” stood for the number “0.” After under-filling the prescription, the co-conspirators billed Medicaid and other insurance companies for the fully filled prescription.
Without informing the patients, the conspirators substituted generic drugs for the brand-name drugs prescribed by the patients’ physicians. Then they billed Medicaid and other insurance companies for the full amount of the brand-name drugs. The co-conspirators entered the prescribing physicians’ phone numbers into the West Orange Pharmacy computer system as a code to indicate that they were utilizing this particular scheme.
The conspirators also filled outstanding refills on a given prescription without the patients’ knowledge and then billed Medicaid and the private insurers for the refills. They entered a dot (“.”) into the West Orange Pharmacy computer system as a code to indicate that they were utilizing this particular scheme.The conspirators would sometimes lose money on a given prescription. On those occasions, they looked through a patient’s profile and found additional costs that they could pass on to Medicaid and other insurance companies. They would submit bills for these additional costs, and they would enter the code “COV” into the West Orange Pharmacy computer system to reflect this scheme.
The conspirators purchased prescription drugs back from their customers and would reuse those drugs to fill other patient prescriptions. They billed Medicaid and other insurance companies for the full amount of the filled prescriptions.
The conspirators purchased prescription drugs from non-licensed wholesalers at a substantial discount to the drugs’ wholesale price, then dispensed these discounted drugs to patients and billed Medicaid and private insurers for the full costs associated with the drugs.
The health care fraud conspiracy charge to which Robert Carlucci and William Carlucci pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000 or twice the gross gain or loss from the scheme. As part of their guilty pleas, the defendants are agreeing to pay restitution of $1.5 million. Additionally, Robert Carlucci is forfeiting $849,568 and William Carlucci is forfeiting $558,717. Sentencing for both is scheduled for Nov. 12, 2013.U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski; and special agents of the Food & Drug Administration’s Office of Criminal Investigations, under the direction of Mark Dragonetti, with the investigation leading to today’s guilty pleas. He also thanked the Elizabeth, Clinton, Toms River, West Orange, and Marlboro Police Departments, along with the Essex County Sheriff’s Department for their work on this case.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
13-322
Defense counsel:
Robert Carlucci: Ricardo Solano Esq., NewarkWilliam Carlucci: Mark Berman Esq., River Edge, N.J.
Carlucci, William Information
Carlucci, Robert InformationTwice Convicted Sex Offender Sentenced to 15 Years for Receiving Child Pornography While on Federal Probation for Prior Sex OffenseRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Larry Poole, age 50, of Laurel, Maryland today to 15 years in prison, followed by a lifetime of supervised release, for receipt of child pornography. Chief Judge Chasanow ordered that upon his release from prison, Poole must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief Richard McLaughlin of the Laurel Police Department; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, on June 11, 2012 the Child Protective Services (CPS) received a report that Poole was sending text messages claiming to be molesting an unidentified nine year old girl. CPS referred the matter to the Laurel Police Department, who were not able to locate any child in Poole’s neighborhood matching the description used by Poole in his texts.
The Laurel police subsequently learned that Poole was on federal probation, and was registered as a sex offender based on two prior convictions: in 2003, for child abuse, in Baltimore County Circuit Court; and in 2006, for attempting to entice a minor to engage in sex, and possession of child pornography, in federal court for the District of Columbia.
Laurel police alerted Poole’s federal probation officer who made a surprise visit to Poole’s home on June 25, 2012. Poole consented to a preview of his cell phone, and the probation officer discovered videos and images of child pornography. Poole admitted that an individual brought child pornography to Poole’s home the previous day on a thumb drive or SD card and helped Poole load pornographic images of girls under 14 years old onto Poole’s computer and cell phone.
Laurel police and the FBI executed a search warrant, seized Poole’s cell phone and computer, and discovered approximately six videos and 120 images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the Laurel Police Department and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Twenty-two People Charged with Firearm and Drug Violations in TuscaloosaRead the Press Release
TUSCALOOSA -- Federal Bureau of Alcohol, Tobacco, Firearms and Explosives agents working with local and state partners today completed a roundup of 22 individuals charged with violating federal and state firearms and narcotics laws, announced U.S. Attorney Joyce White Vance, ATF Special Agent in Charge Jeffrey Fulton, Tuscaloosa Police Chief Steven D. Anderson and Tuscaloosa County Sheriff's Lt. Andy Norris.This on-going law enforcement partnership has led to the indictment of 20 individuals on federal charges and two individuals on state charges. Six of the 22 defendants were arrested today in the Tuscaloosa area.
"Today ATF partnered with the Tuscaloosa Police Department and the Tuscaloosa County Sheriff's Office to take some of the worst offenders off the streets in areas that have become saturated with violent crime," Vance said. "As Americans, we all have Second Amendment rights, but this does not mean we should or will tolerate the use of firearms by criminals. People in our community who use guns to commit violent acts or to further drug crimes need to know there are federal prison cells waiting on them," she said.
"ATF's Frontline strategy utilizes every available resource to make our communities a safer place to live," Fulton said. "Violent criminals and gang members continue to use firearms as their tools of the trade to prey upon communities," he said.
"The Tuscaloosa Police Department is pleased to get these offenders out of our community and see them be held responsible for the crimes they have committed," Anderson said . "This has been an ongoing investigation and we are thankful that the U.S. Attorney's Office is prosecuting the cases. Working with the ATF and other law enforcement agencies to keep Tuscaloosa a safe community will always be a top priority," he said.
Thirteen people were arrested in the operation before today. Three remain to be arrested.
Arrested today were:
Matthew Sims, 27, McCalla.
Michael Barrett, 42, Gordo.
Florencewel Welch, 38, Tuscaloosa.
Timothy Wooley, 20, Tuscaloosa.
Raregus Rice, 29, Tuscaloosa.
LaJohnagan Sterling, 22, Tuscaloosa.Three MS-13 Leaders Found Guilty of Racketeering and Additional<br /> Charges for Multiple Murders and AttacksRead the Press Release
Three leaders of MS-13 in Washington, D.C., were found guilty by a federal jury today of conspiring to participate in racketeering activity and other charges stemming from their roles in murders, extortion and other violent crimes in the Washington area.
The verdicts, which followed a month-long trial, were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Washington; and Cathy L. Lanier, Chief of the Washington, D.C., Metropolitan Police Department (MPD).
“Today, a jury has found three defendants guilty of committing heinous crimes as part of their membership in a brutal international criminal organization that has terrorized communities throughout the United States and Central America,” said Acting Assistant Attorney General Raman. “As a result of this successful investigation and prosecution, these violent gang members now face substantial prison sentences.”
“After a month-long trial, this jury delivered the message that MS-13 and its brutal brand of violence will not be tolerated in the District of Columbia,” said U.S. Attorney Machen. “These three killers now face life in prison for their outrageous crimes, including the stabbing death of a 14-year-old boy in Columbia Heights. I want to thank the prosecutors and our law enforcement partners who have dedicated years to investigating and prosecuting this transnational gang. The District is safer with these murderers behind bars.”
“This verdict represents the consequences for the decisions made and the lifestyle choices of the three convicted gang members,” said Special Agent in Charge Torres. “Investigating violent crimes committed by trans-national gang members is a priority for HSI.”
“The convictions of these three violent gang leaders should send a clear message to the members of this ruthless, international criminal organization that gang activity will not be tolerated in our communities,” said Police Chief Lanier. “I applaud the hard work and dedication by the members of the Metropolitan Police Department and our law enforcement partners who helped make today’s convictions possible. Our communities will be safer as a result.”
Yester Ayala, 22, aka “Freeway” and “Daddy Yankee,” of Washington; Noe Machado-Erazo, aka “Gallo,” 30, of Wheaton, Md.; and Jose Martinez-Amaya, 26, aka “Crimen,” of Brentwood, Md., were each found guilty in U.S. District Court in the District of Columbia. At sentencing, scheduled for Nov. 4, 2013, each of the defendants faces a maximum sentence of life in prison.
Ayala was found guilty of one count of conspiracy to participate in racketeering activity, two counts of murder in aid of racketeering, one count of first-degree premeditated murder and one count of second-degree murder. Machado-Erazo was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence. Martinez-Amaya was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence.The government’s evidence showed that MS-13, a large gang that operates in the United States and Central America, engages in racketeering activity including murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes. The gang has numerous rules, such as enduring a beating of 13 seconds before becoming a member; killing rival gang members; and staying unfailingly loyal.
According to the government’s evidence, Machado-Erazo was a member and Martinez-Amaya was a leader of the Normandie clique, one of a number of smaller MS-13 groups operating in the Washington area. Ayala was a leader of the Sailors, another clique. The local cliques often act together, and evidence showed that Machado-Erazo was the leader of a program of cliques that worked together. According to evidence presented in court, the local MS-13 cliques act in accordance with the international MS-13’s strictures and have frequent contact with MS-13 leadership in El Salvador. The evidence showed that two of the murders were committed on orders from MS-13 leadership in El Salvador.
The three defendants are among numerous people indicted by a grand jury in 2010 following a federal investigation. Twelve others have pleaded guilty to charges in the case.
The range of criminal activity alleged in the indictment includes acts committed from 2008 through 2010 in the District of Columbia, Maryland, Virginia and other states.
Ayala was convicted of taking part in two murders in 2008, and Machado-Erazo and Martinez-Amaya were convicted of taking part in the murder of another victim.
The government presented evidence that Ayala helped carry out orders to murder Louis Alberto Membreno-Zelaya, a fellow MS-13 member who had removed his gang tattoos. Membreno-Zelaya, 27, was stabbed at least 20 times, according to evidence presented in court. His body was found on Nov. 6, 2008, in Northwest Washington.
The second murder, according to evidence presented in court, took place in the late afternoon of Dec. 12, 2008. Ayala joined in on an attack against Giovanni Sanchez, 14, near the Columbia Heights Metro station in Washington. Giovanni had 11 stab wounds, and witnesses identified Ayala as one of the assailants.
According to evidence presented at trial, Machado-Erazo and Martinez-Amaya took part in the killing of Felipe Enriquez, 25, whose body was found on March 31, 2010, in Montgomery County, Md. Enriquez, another fellow MS-13 member, was fatally shot. Evidence presented during trial showed that Machado-Erazao provided the gun and Martinez-Amaya committed the shooting.
This case was prosecuted by Assistant U.S. Attorney Nihar Mohanty of the District of Columbia and Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.
The case was investigated by ICE-HSI and the MPD. Assistance was provided by the Montgomery County and the Prince George’s County, Md. Police Departments, the State’s Attorney’s Office for Montgomery County, the U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the Eastern District of Virginia. Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).
ThreeRead the Press Release
MS-13 Leaders Found Guilty of Racketeering
And Additional Charges for Multiple Murders and Attacks
-Twelve Others Have Pled Guilty in the CaseWASHINGTON – Three leaders of MS-13 in Washington, D.C., were found guilty by a federal jury today of conspiring to participate in racketeering activity and other charges stemming from their roles in murders, extortion and other violent crimes in the Washington area.
The verdicts, which followed a month-long trial, were announced by U.S. Attorney Ronald C. Machen Jr.; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Washington; and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
“After a month-long trial, this jury delivered the message that MS-13 and its brutal brand of violence will not be tolerated in the District of Columbia,” said U.S. Attorney Machen. “These three killers now face life in prison for their outrageous crimes, including the stabbing death of a 14-year-old boy in Columbia Heights. I want to thank the prosecutors and our law enforcement partners who have dedicated years to investigating and prosecuting this transnational gang. The District is safer with these murderers behind bars.”
“Today, a jury has found three defendants guilty of committing heinous crimes as part of their membership in a brutal international criminal organization that has terrorized communities throughout the United States and Central America,” said Acting Assistant Attorney General Raman. “As a result of this successful investigation and prosecution, these violent gang members now face substantial prison sentences.”
“This verdict represents the consequences for the decisions made and the lifestyle choices of the three convicted gang members,” said Special Agent in Charge Torres. “Investigating violent crimes committed by trans-national gang members is a priority for HSI.”
“The convictions of these three violent gang leaders should send a clear message to the members of this ruthless, international criminal organization that gang activity will not be tolerated in our communities,” said Police Chief Lanier. “I applaud the hard work and dedication by the members of the Metropolitan Police Department and our law enforcement partners who helped make today’s convictions possible. Our communities will be safer as a result.”
Yester Ayala, 22, aka “Freeway” and “Daddy Yankee,” of Washington; Noe Machado-Erazo, aka “Gallo,” 30, of Wheaton, Md.; and Jose Martinez-Amaya, 26, aka “Crimen,” of Brentwood, Md., were each found guilty in U.S. District Court in the District of Columbia. At sentencing, scheduled for Nov. 4, 2013 before the Honorable Senior Judge Royce C. Lamberth, each of the defendants faces a maximum sentence of life in prison.
Ayala was found guilty of one count of conspiracy to participate in racketeering activity, two counts of murder in aid of racketeering, one count of first-degree premeditated murder and one count of second-degree murder. Machado-Erazo was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence. Martinez-Amaya was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence.
The government’s evidence showed that MS-13, a large gang that operates in the United States and Central America, engages in racketeering activity including murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes. The gang has numerous rules, such as enduring a beating of 13 seconds before becoming a member; killing rival gang members; and staying unfailingly loyal.
According to the government’s evidence, Machado-Erazo was a member and Martinez-Amaya was a leader of the Normandie clique, one of a number of smaller MS-13 groups operating in the Washington area. Ayala was a leader of the Sailors, another clique. The local cliques often act together, and evidence showed that Machado-Erazo was the leader of a program of cliques that worked together. According to evidence presented in court, the local MS-13 cliques act in accordance with the international MS-13’s strictures and have frequent contact with MS-13 leadership in El Salvador. The evidence showed that two of the murders were committed on orders from MS-13 leadership in El Salvador.
The three defendants are among numerous people indicted by a grand jury in 2010 following a federal investigation. Twelve others have pleaded guilty to charges in the case.
The range of criminal activity alleged in the indictment includes acts committed from 2008 through 2010 in the District of Columbia, Maryland, Virginia and other states.
Ayala was convicted of taking part in two murders in 2008, and Machado-Erazo and Martinez-Amaya were convicted of taking part in the murder of another victim.
The government presented evidence that Ayala helped carry out orders to murder Louis Alberto Membreno-Zelaya, a fellow MS-13 member who had removed his gang tattoos. Membreno-Zelaya, 27, was stabbed at least 20 times, according to evidence presented in court. His body was found on Nov. 6, 2008, in Northwest Washington.
The second murder, according to evidence presented in court, took place in the late afternoon of Dec. 12, 2008. Ayala joined in on an attack against Giovanni Sanchez, 14, near the Columbia Heights Metro station in Washington. Giovanni had 11 stab wounds, and witnesses identified Ayala as one of the assailants.
According to evidence presented at trial, Machado-Erazo and Martinez-Amaya took part in the killing of Felipe Enriquez, 25, whose body was found on March 31, 2010, in Montgomery County, Md. Enriquez, another fellow MS-13 member, was fatally shot. Evidence presented during trial showed that Machado-Erazao provided the gun and Martinez-Amaya committed the shooting.
This case was prosecuted by Assistant U.S. Attorney Nihar Mohanty of the District of Columbia and Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section. Those providing assistance from the U.S. Attorney’s Office included Assistant U.S. Attorney Bill O’Malley; Victim/Witness Services Supervisor David Foster; Paralegal Specialists Candace Battle, Catherine O’Neal, and Candice Sisco; Legal Assistant Diane Brashears, and Litigation Technology Specialists Paul Howell, William Henderson, and Kimberly Smith.
The case was investigated by ICE-HSI and the MPD. Assistance was provided by the Montgomery County and the Prince George’s County, Md. Police Departments, the State’s Attorney’s Office for Montgomery County, the U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the Eastern District of Virginia. Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).
13-278Texas Businessman Agrees to Settle False <br /> Claims Allegations Involving the E-Rate ProgramRead the Press Release
Larry Lehmann of Giddings, Texas has agreed to pay $400,000 to settle allegations that he violated the False Claims Act in connection with the Federal Communications Commission’s E-rate Program, the Department of Justice announced today. The E-rate Program, created by Congress in the Telecommunications Act of 1996, subsidizes eligible equipment and services to make Internet access and internal networking more affordable for public schools and libraries. The Houston Independent School District (HISD) was one of the applicants that successfully sought and received E-rate subsidies from 2004 through 2006.
“The E-rate Program provides vital support for our nation’s students and schools,” said Stuart F. Delery, Assistant Attorney General for the Civil Division of the Department of Justice. “We are committed to protecting the integrity of this important program, which helps our children connect to the digital world.”
“Our office is committed to protecting the integrity of government initiatives,” said U.S. Attorney Kenneth Magidson. “We will continue to work closely with the Department in cases such as this one to ensure the E-rate and other federal programs are free from fraudulent and deceitful claims.”
Lehmann functioned as the CEO and managing partner of Acclaim Professional Services (Acclaim), which partnered with other companies to provide E-rate funded equipment and services to HISD during this period. The United States contended that, in violation of E-rate competitive bidding requirements and HISD procurement rules, Lehmann provided gifts and loans to HISD employees, including tickets to sporting events and two loans totaling $66,750 to an HISD employee who was involved in the procurement and administration of HISD’s E-rate projects.
The United States also alleged that Lehmann helped devise a scheme in which HISD outsourced some of its employees to Acclaim, which allowed them to continue to work for HISD while passing the cost on to the E-rate Program. The United States further alleged that, with Lehmann’s approval, Acclaim hid the cost of these employees in its E-rate Program invoices by rolling them into the cost of eligible goods and services.
The settlement with Lehmann is part of a broader investigation by the United States of E-rate funding requests submitted by HISD and the Dallas Independent School District (DISD). The government previously recovered $16.25 million from Hewlett-Packard, $850,000 from HISD, and $750,000 from DISD. The government’s investigation was initiated, in part, by a qui tam or whistleblower lawsuit filed under the False Claims Act by Dave Richardson and Dave Gillis, who investigated allegations of improprieties based on Richardson’s experience bidding for contracts at HISD and DISD. The False Claims Act authorizes private parties to file suit for false claims on behalf of the United States and share in the government’s recovery. The United States intervened in Richardson and Gillis’ lawsuit, and added Lehmann as a defendant.
“E-rate is one of the FCC’s biggest success stories, helping connect nearly every U.S. library and school to the Internet,” said Julie Veach, Chief of the FCC Wireline Competition Bureau. “We take any abuse of our rules seriously and thank the Department of Justice for their assistance in protecting the integrity of the E-rate Program for students, teachers, and libraries across the country. Today’s action is a signal to those interested in profiting at the expense of our nation’s schools and libraries: fraud doesn’t pay.”
This case was handled by the U.S. Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Southern District of Texas, and the FCC’s Office of the Inspector General and Office of the General Counsel.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against Lehmann is captioned United States ex rel. Dave Richardson and Dave Gillis v. Larry Lehmann, Civil Action No. 4:05-cv-3836 (S.D. Tex.).Texas Businessman Agrees to Settle False Claims Allegations Involving the E-rate ProgramRead the Press Release
WASHINGTON – Larry Lehmann of Giddings, Texas has agreed to pay $400,000 to settle allegations that he violated the False Claims Act in connection with the Federal Communications Commission’s E-rate Program, the Department of Justice announced today. The E-rate Program, created by Congress in the Telecommunications Act of 1996, subsidizes eligible equipment and services to make Internet access and internal networking more affordable for public schools and libraries. The Houston Independent School District (HISD) was one of the applicants that successfully sought and received E-rate subsidies from 2004 through 2006.
“The E-rate Program provides vital support for our nation’s students and schools,” said Stuart F. Delery, Assistant Attorney General for the Civil Division of the Department of Justice. “We are committed to protecting the integrity of this important program, which helps our children connect to the digital world.”
“Our office is committed to protecting the integrity of government initiatives,” said U.S. Attorney Kenneth Magidson. “We will continue to work closely with the Department in cases such as this one to ensure the E-rate and other federal programs are free from fraudulent and deceitful claims.”
Lehmann functioned as the CEO and managing partner of Acclaim Professional Services (Acclaim), which partnered with other companies to provide E-rate funded equipment and services to HISD during this period. The United States contended that, in violation of E-rate competitive bidding requirements and HISD procurement rules, Lehmann provided gifts and loans to HISD employees, including tickets to sporting events and two loans totaling $66,750 to an HISD employee who was involved in the procurement and administration of HISD’s E-rate projects.
The United States also alleged that Lehmann helped devise a scheme in which HISD outsourced some of its employees to Acclaim, which allowed them to continue to work for HISD while passing the cost on to the E-rate Program. The United States further alleged that, with Lehmann’s approval, Acclaim hid the cost of these employees in its E-rate Program invoices by rolling them into the cost of eligible goods and services.
The settlement with Lehmann is part of a broader investigation by the United States of E-rate funding requests submitted by HISD and the Dallas Independent School District (DISD). The government previously recovered $16.25 million from Hewlett-Packard, $850,000 from HISD, and $750,000 from DISD. The government’s investigation was initiated, in part, by a qui tam or whistleblower lawsuit filed under the False Claims Act by Dave Richardson and Dave Gillis, who investigated allegations of improprieties based on Richardson’s experience bidding for contracts at HISD and DISD. The False Claims Act authorizes private parties to file suit for false claims on behalf of the United States and share in the government’s recovery. The United States intervened in Richardson and Gillis’ lawsuit, and added Lehmann as a defendant.
“E-rate is one of the FCC’s biggest success stories, helping connect nearly every U.S. library and school to the Internet,” said Julie Veach, Chief of the FCC Wireline Competition Bureau. “We take any abuse of our rules seriously and thank the Department of Justice for their assistance in protecting the integrity of the E-rate Program for students, teachers, and libraries across the country. Today’s action is a signal to those interested in profiting at the expense of our nation’s schools and libraries: fraud doesn’t pay.”
This case was handled by the U.S. Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Southern District of Texas, and the FCC’s Office of the Inspector General and Office of the General Counsel.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against Lehmann is captioned United States ex rel. Dave Richardson and Dave Gillis v. Larry Lehmann, Civil Action No. 4:05-cv-3836 (S.D. Tex.).
Stone Mountain Man Sentenced for Eight Armed RobberiesRead the Press Release
ATLANTA - Laquan Smith was sentenced to 18 years in federal prison for the armed robbery of eight businesses and for possession of a stolen firearm.
“Over a short three-week span in December 2011, this defendant—who was already on state parole for armed robbery and on bond for burglary—went on an armed robbery rampage in the Memorial Drive area, going so far as to tie up his victims during three robberies,” said United States Attorney Sally Quillian Yates. “With this conviction and sentence, his life of crime on the streets has ended for the foreseeable future.
“The criminal history of Smith shows a complete and utter disregard for the law and lives of others,” said ATF Special Agent in Charge Christopher Shaefer. “As an agency and unified law enforcement community, we will not tolerate armed violent felons terrorizing and reducing the quality of life in the neighborhoods where we live, work, and play.”
“The sentencing of Laquan Smith exemplifies the joint commitment of local and federal law enforcement agencies to ensure violent offenders are brought to justice and are not allowed to continue to victimize our community. This type of lawless behavior is not acceptable and we are steadfast in our efforts to arrest those who engage in such crimes,” said DeKalb County Police Chief Cedric Alexander.
According to United States Attorney Yates, the charges and other information presented in court: From December 8 through December 27, 2011, Smith, who was aided by Troy Thomas in two robberies, robbed eight different businesses, including two Dollar General stores on December 20, and 27, 2011; three Family Dollar stores on December 8, 14, and 22, 2011; Pet Supermarket on December 18, 2011; Orbit Video on December 19, 2011; and a Subway on December 22, 2011. During the robberies, Smith took a total of approximately $7,410. Smith was arrested two weeks after the December 27, 2011, Dollar General robbery, after an alert individual recorded the license plate number of the getaway car used in that robbery and reported it to law enforcement.
Smith, 24, of Stone Mountain, Ga., was sentenced today by United States District Judge Richard W. Story to serve 18 years in federal prison to be followed by 5 years of supervised release, and fined $900. Smith was convicted of these charges on January 31, 2013, upon his plea of guilty.
Troy Thomas, Smith’s co-defendant who participated in two of the robberies, was sentenced to 11 years, 2 months on April 29, 2013, by Judge Richard W. Story.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the DeKalb County Police Department.
Assistant United States Attorney Joseph Plummer prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.Statement of Manhattan U.S. Attorney Preet BhararaOn the Convictions in U.S. V. Lesniewski, Et Al.Read the Press Release
“Today, Peter Lesniewski, Marie Baran and Joseph Rutigliano stand convicted of participating in the massive LIRR disability fraud that turned a safety net for the truly disabled into a gravy train for the corrupt. Dr. Lesniewski enabled hundreds of LIRR employees to dupe the government through medical paper trails filled with bogus diagnoses, while Baran and Rutigliano, in exchange for payments of thousands of dollars, helped lard the employees’ disability benefit applications with lies. Lesniewski, Baran and Rutigliano served as engines of this fraud that led to a staggering 79% of LIRR retirees from 1998 to 2011 receiving federal disability benefits, costing the government hundreds of millions of dollars. Like the 25 people who previously pled guilty, these defendants now have been brought to justice and will pay for their central roles in this brazen scheme.”
St. Francis Woman Sentenced for Making False Statements to A Federal AgencyRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, woman convicted of Making False Statements to a Federal Agency was sentenced on August 5, 2013, by U.S. District Judge Roberto A. Lange.
Waln was remanded to the custody of the U.S. Marshals Service.
Candice Waln, age 34, was sentenced to 1 month in custody, 1 year of supervised release, and $100 to the Federal Crime Victims Fund.
Waln was indicted by a federal grand jury on December 11, 2012, and pled guilty to the charge on April 30, 2013.
The conviction stems from an incident that took place on November 9, 2012, when Federal agents arrived at Waln’s residence to serve an arrest warrant on an individual. Waln told the agents that individual was not present and was in another community, when in fact he was actually hiding nearby.
The investigation was conducted by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.Spokane Valley Man Sentenced to Five Years in Federal Prison for Possessing Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Michael A. McGuffy, age 33, of Spokane Valley, Washington, was sentenced today after having previously plead guilty on April 17, 2013, to Receipt of Child Pornography. Chief United States District Court Judge Rosanna Malouf Peterson sentenced McGuffy to a five year term of imprisonment, to be followed by a twenty year term of court supervision after he is released from Federal prison. In addition, McGuffy was ordered to forfeit the computer and USB devices he used to receive the child pornography images.
According to information disclosed during the court proceedings, in March of 2012, a Spokane County Sheriff's Office Internet undercover investigation discovered that McGuffy was sharing images of child pornography with other individuals, via the Internet, using a peer to peer file sharing program. On April 12, 2012, law enforcement from the Eastern District of Washington, Internet Crimes Against Children (ICAC) Task Force executed a search warrant at McGuffy's residence in Spokane Valley. The officers discovered McGuffy had downloaded in excess of 2000 images and 57 videos of child pornography onto his computer, which included images of minors under the age of twelve and sadistic and masochist images.
Michael C. Ormsby stated, "that our office and law enforcement partners take these cases very seriously and are committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting these types of crimes is particularly important because of the tender age of the innocent victims."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted the United States Secret Service and the Spokane County Sheriff's Office. The case was prosecuted by Stephanie J. Lister, Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-0025-RMP
Shiprock Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Tyrell Elliot Frank, 26, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to a federal assault charge. Under the terms of his plea agreement, Frank will be sentenced to 41 months in federal prison followed by a term of supervised release to be determined by the court.
Frank was arrested in April 2012, based on a criminal complaint charging him with assault. He subsequently was indicted and charged with assault with a dangerous weapon and assault resulting in serious bodily injury. According to court filings, on April 1, 2012, Frank repeatedly struck another Navajo man with a machete. As a result of the assault, the victim suffered severe cuts to his left arm and his back.
During today’s proceedings, Frank pleaded guilty to Count 2 of the indictment, charging him with assault resulting in serious bodily injury. In his plea agreement, Frank admitted that during the early hours of April 1, 2012, people arrived at his residence and approached him. Frank stated that, because he recently had been released from the hospital after having been assaulted, he struck a person he did not know with a machete causing him serious bodily injury. Frank stated that he later learned that the victim did not intend to harm him.
Frank has been in federal custody since his arrest on April 1, 2012, and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Romanian National Sentenced for Immigration FraudRead the Press Release
BOISE – Lucian Ioan Belean, 30, a Romanian national, was sentenced today in United States District Court to two years of probation for making fraudulent statements in an application for immigration registration, a misdemeanor, U.S. Attorney Wendy J. Olson announced. U.S. Magistrate Judge Ronald E. Bush also ordered Belean to pay a $1,000 fine and to voluntarily depart from the United States within 60 days. The defendant previously spent two months incarcerated pending his transfer to the District of Idaho.
According to the plea agreement, on November 2, 2007, Belean entered into a fraudulent marriage with a United States citizen for the sole purpose of obtaining immigration benefits. On December 23, 2007, he filed an application with U.S. Citizenship and Immigration Services (USCIS) seeking lawful permanent resident (LPR) status based on the fraudulent marriage. USCIS approved the application on March 14, 2008. According to the plea agreement, Belean would not have been granted LPR status had USCIS known of the fraudulent nature of the marriage.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Puerto Rico Man Sentenced to Life in Prison <br /> for Murdering a Federal WitnessRead the Press Release
Xavier Jiménez-Benceví, aka “Xavi,” 28, was sentenced to life in prison following his conviction for murdering a federal witness on a drug trafficking case.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico made the announcement after sentencing by U.S. District Judge Jose A. Fuste.
On April 30, 2013, Jiménez-Benceví was convicted of the murder of a federal witness, possession of a firearm, attempted kidnapping and possession of a machine gun. According to evidence presented in court, on June 21, 2010, Jimenez-Benceví enlisted the help of others to lure Delia Sánchez-Sánchez – a woman he believed was about to report his drug trafficking activities to federal agents – to the parking lot of a supermarket, where Jimenez-Benceví executed her with a fully automatic 9mm handgun.
Evidence provided in court also showed that Jimenez-Benceví was previously convicted in Puerto Rico of murdering Eduardo Cabrerra-Arriba on Aug. 28, 2007, and shooting at three police officers in the Falin Torrech public housing project on Sept. 16, 2010. In addition, the court heard evidence that Jimenez-Benceví wounded 11 people with a shooting at the Victory Shopping Center on May 25, 2011.
The case was investigated by the FBI and the Puerto Rico Police Department, and prosecuted by Assistant U.S. Attorneys José Capó-Iriarte, Ilianys Rivera-Miranda and Luke V. Cass, and Trial Attorneys James D. Peterson and Rich Burns of the Criminal Division’s Capital Case Unit.
Press Conference in Utica to follow the last sentencing in the McGinn Smith caseRead the Press Release
ALBANY, NY- Defendants Timothy M. McGinn and David L. Smith will be sentenced on Wednesday, August 7, 2013. McGinn will be sentenced at 10 am; Smith will be sentenced at 2 pm. Both sentencings will take place before United States District Judge David N. Hurd at the Alexander Pimie Federal Building, 10 Broad Street, Utica, New York.
A press conference will be held following the 2 pm sentencing in the Bankruptcy Hearing Room on the first floor of the Alexander Pirnie Federal Building, 10 Broad Street, Utica, NY 13501.
Press Conference to Follow Arraignments August 8, 2013, at 11:00 A.m. (MDT) in Great Falls, Montana Regarding A Case Investigated as Part of the Guardians Project of the United States Attorney's OfficeRead the Press Release
United States Attorney for the District of Montana Michael W. Cotter, Federal Bureau of Investigation Assistant Special Agent in Charge Scott Vito, Health and Human Services, Office of Inspector General Special Agent in Charge Gerald T. Roy, and Internal Revenue Service, Criminal Investigations Division Assistant Special Agent in Charge Lilia Ruiz and Supervisory Special Agent Brian Payne, will hold a press conference on August 8, 2013, at 11:00 a.m. (MDT) following arraignments. The press conference will be held at the U.S. Attorney's Office, 119 1st Ave. N., #300, in Great Falls, Montana.
The purpose of the press conference will be to comment on the ongoing efforts of the Guardians Project and the extraordinary efforts that have resulted from focused, inter-agency cooperation in the investigation of fraud in Indian Country in Montana.
Plainfield, N.J., Woman Admits She Was Lookout, Getaway Driver for Armed Bank RobberiesRead the Press Release
NEWARK, N.J. – A Plainfield, N.J., woman admitted today to playing a role in three armed robberies of banks in Somerset and Middlesex, N.J., U.S. Attorney Paul J. Fishman announced.
Andrea Dorsey, 54, of Plainfield, N.J., pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with three counts of bank robbery.
According to documents filed in this case and statements made in court:
Claude Williams, 61, of Elizabeth, N.J., was charged in July 2012 by superseding complaint with six counts of bank robbery and two counts of using a firearm in furtherance of a crime of violence. Those charges remain pending.
Williams would usually send an accomplice into banks shortly before robbing them. Dorsey admitted she went into banks to gather information for Williams about how many employees were working and served as the getaway driver during the armed robberies of the Financial Resources Federal Credit Union located in Somerset, N.J., on Sept. 26, 2011, and the Somerset Savings Bank located in Somerville, N.J., on Nov. 21, 2011.
Williams and Dorsey were arrested on July 30, 2012, blocks from a Unity Bank in Somerset. Williams was wearing a bandana and law enforcement found a handgun and white gloves in the car.
Dorsey faces a maximum potential penalty of 25 years in prison and a $250,000 fine, or twice the gain or loss from the offense, on each of the three counts. Sentencing is currently scheduled for Oct. 30, 2013.
The charges and allegations contained in the superseding complaint against Williams are merely accusations and the defendant is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation. He also thanked the Somerset County Prosecutor’s Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their excellent work.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office General Crimes Unit in Newark.13-323
Defense counsel: Anthony J. Iacullo Esq., Nutley, N.J.
Dorsey, Andrea Information
Pine Ridge Man Pleads Guilty to Domestic AssaultsRead the Press Release
United States Attorney Brendan V. Johnson announced that Jon Craig Dillon, a/k/a JC Dillon, a/k/a Jon Craig Goings, age 25, of Pine Ridge, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on August 2, 2013, and pled guilty to Assault with a Dangerous Weapon and Assault by Striking, Beating or Wounding.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine.
The charges relate to Dillon assaulting his female companion numerous times in 2012. The assaults resulted in a kidney injury, a head injury, choking injuries, and extensive bruising covering her body.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.Pennsylvania Man Convicted of Attempted Enticement of A MinorRead the Press Release
ALBANY, NEW YORK - United States Attorney Richard S. Hartunian announced that, following a jury trial, WILLIAM KEITH JAMIESON, (52, of Lancaster, PA) was found guilty in U.S. District Court in Albany, N.Y. of the felony offense of Attempted Enticement of a Minor, in violation of Title 18, United States Code, Section 2422(b). JAMIESON is facing a statutory mandatory minimum sentence of 10 years and a maximum sentence of up to life imprisonment, a term of supervised release of at least five years and up to lifetime supervision, a maximum fine of $250,000.00 and mandatory registration as a sex offender. JAMIESON is scheduled to be sentenced on November 26, 2013, before Chief Judge Gary L. Sharpe, in Albany, New York.
JAMIESON was arrested on July 2, 2012, at Congress Park in Saratoga Springs, New York, having traveled to the park to meet “Kara,” a teenage girl he met online and had been communicating with for four and a half months via internet chat relay, Yahoo!, and Skype. In reality, “Kara” was a female Saratoga Springs Police Investigator who was working undercover pretending to be a 14 year old girl in chat rooms policing for internet child predators. JAMIESON met “Kara” in the “dad&daughtersex” chat room. In the online communications, JAMIESON was repeatedly told “Kara’s” age was 14, and JAMIESON told “Kara” that he would travel to Saratoga Springs, rent a hotel room, and have sex with her in the hotel room. On July 2, 2012, JAMIESON rented a motel room near Congress Park, walked to a prearranged meeting spot, and instead of finding “Kara,” he met with an arrest team from the Albany Child Exploitation Task Force, including officers from the Saratoga Springs Police Department and the Rensselaer County Sheriff’s Office. A search of JAMIESON’s motel room revealed condoms, computer equipment, a camera, and a bottle of nail polish that he promised to bring as a present for “Kara.”
This prosecution resulted from an investigation conducted by the Federal Bureau of Investigation, Albany, N.Y., the Saratoga Springs Police Department, and the Rensselaer County Sheriff’s Office, as part of the Albany Child Exploitation Task Force. The case was prosecuted by Assistant United States Attorney Tamara B. Thomson. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Oldcastle Precast, Inc. to Pay False Claims Act SettlementRead the Press Release
Oldcastle Precast, Inc. (“Oldcastle”), headquartered in Atlanta, Georgia, has agreed to pay the United States $95,000.00 to settle False Claims Act (“FCA”) allegations, announced David Rivera, Acting United States Attorney for the Middle District of Tennessee.
The settlement resolves allegations that Oldcastle submitted false claims for payment to the United States for products that did not meet required specifications. These products included concrete catch basins that are typically used in and adjacent to roadway construction.
The United States alleged that Oldcastle submitted these claims after repeatedly certifying that its products were in reasonable compliance and were produced pursuant to applicable procedures. The investigation found, however, that many of the products did not meet specifications as they related to the strength and placement of rebar within the pre-cast products.
Although Oldcastle provided these products for projects primarily administered by the Tennessee Department of Transportation, a substantial portion of the funding for these projects was provided by the United States through the Federal Highway Administration, an agency within the U.S. Department of Transportation (“DOT”).
“Enforcement of the False Claims Act remains a top priority of the Department of Justice and this office,” said Acting U.S. Attorney David Rivera. “This enforcement effort extends to all efforts to procure funds from the United States and its agencies by false pretenses. The U.S. Attorney’s Office for the Middle District of Tennessee will continue to devote the resources necessary to vigorously protect taxpayers’ interests and aggressively pursue fraud, waste, and abuse.”
The federal investigation examined conduct originally discovered by the Tennessee Department of Transportation. An efficient and thorough investigation allowed a resolution to be achieved without filing a complaint, conserving judicial resources and government funds. The settlement was consummated with the understanding that the U.S. Department of Transportation, Federal Highway Administration, may take additional steps in its discretion and pursuant to the applicable regulations to require Oldcastle to adopt compliance measures to reduce the likelihood of future violations of the FCA and other procurement regulations.
This matter was investigated by the Department of Transportation and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis.Oakland County Doctor and Owner of Michigan Hemotology and Oncology Centers Charged in $35 Million Medicare Fraud SchemeRead the Press Release
Dr. Farid Fata, 48, of Oakland Township, Michigan, was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme which involved submitting false claims to Medicare for services that were medically unnecessary, including chemotherapy treatments.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, FBI Special Agent in Charge Robert D. Foley III and Special Agent in Charge Lamont Pugh of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
“Dr. Fata allegedly perpetrated a brazen and dangerous fraud that time and again jeopardized his patients’ wellbeing,” said Acting Assistant Attorney General Raman. “The conduct alleged today is chilling, with the defendant endangering patient safety through misdiagnoses, over- or mis-prescription of chemotherapy and other treatments, and delay of hospital care for patients with serious injuries. Through the work of our dedicated prosecutors and agents, today we have taken swift action to safeguard patient safety and hold the defendant to account.”
“Our first priority is patient care,” said U.S. Attorney McQuade. “The agents and attorneys acted with great attention to detail to stop these allegedly dangerous practices as quickly as possible, and we have set up a victim hotline so that patients can access their files and get questions answered.”
“Violating a patient's trust and placing them at risk through fraudulent abuse of our nation's health care system is deplorable and a crime which the FBI takes most seriously,” said FBI Special Agent in Charge Foley. “The FBI remains committed to the arrest and prosecution of those who commit health care fraud.”
“The conduct alleged in this complaint is serious, not only in terms of potential Medicare dollars improperly obtained, but patient safety as well,” said HHS-OIG Special Agent in Charge Pugh. “The OIG will aggressively investigate allegations of this nature in order to ensure the safety of Medicare patients and to protect vital taxpayer dollars.”
According to the complaint, Dr. Fata owns and operates Michigan Hematology Oncology Centers (MHO), which has offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park. It was through MHO that Dr. Fata allegedly submitted fraudulent claims to Medicare for medically unnecessary services, including chemotherapy treatments, Positron Emission Tomograph (PET) scans and a variety of cancer and hematology treatments for patients who did not need them. In the course of the scheme, Dr. Fata falsified and directed others to falsify documents to justify cancer treatments for billing purposes. MHO billed Medicare for approximately $35 million dollars over a two-year period, approximately $25 million of which is attributable to Dr. Fata.
The complaint further alleges that Dr. Fata directed the administration of unnecessary chemotherapy to patients in remission; deliberate misdiagnoses of patients as having cancer to justify unnecessary cancer treatment; administration of chemotherapy to end-of-life patients who would not have benefitted from the treatment; deliberate misdiagnoses of patients without cancer to justify expensive testing; fabrication of other diagnoses such as anemia and fatigue to justify unnecessary hematology treatments, and distribution of controlled substances to patients without medical necessity or through administering the drugs at dangerous levels.
Dr. Fata will be making his initial appearance in federal court this afternoon at 1 p.m. in Detroit.
Patients who have questions concerning their medical records and/or information regarding this investigation and prosecution can call the United States Attorney’s Office Information Line at 888-702-0553.
The case is being prosecuted by Assistant Chief Catherine Dick, supervisor of the Detroit Medicare Fraud Strike Force and Trial Attorney Matthew Thuesen of the Department of Justice as well as Sarah Resnick Cohen, Deputy Chief of the Health Care Fraud Unit at the U.S. Attorney’s Office, and Justin Bidwell, Special Assistant United States Attorney. The investigations were conducted jointly by the FBI and HHS-OIG, along with the assistance of the Michigan Attorney General’s Office.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, go to: www.stopmedicarefraud.gov.
Oakland County Doctor and Owner of Michigan Hemotology and Oncology Centers Charged in $35 Million Medicare Fraud SchemeRead the Press Release
Dr. Farid Fata, 48, of Oakland Township, Michigan was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme which involved submitting false claims to Medicare for services that were medically unnecessary, including chemotherapy treatments, announced United States Attorney Barbara L. McQuade and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division
Joining in the announcement were Special Agent in Charge Robert D. Foley, III, Federal Bureau of Investigation and Special Agent in Charge Lamont Pugh, Health and Human Services, Office of Inspector General (HHS-OIG).United States Attorney Barbara L. McQuade stated, “Our first priority is patient care. The agents and attorneys acted with great attention to detail to stop these allegedly dangerous practices as quickly as possible, and we have set up a victim hotline so that patients can access their files and get questions answered.”
FBI Special Agent in Charge Robert D. Foley, III stated, "Violating a patient's trust and placing them at risk through fraudulent abuse of our nation's health care system is deplorable and a crime which the FBI takes most seriously. The FBI remains committed to the arrest and prosecution of those who commit health care fraud."
HHS-OIG Special Agent in Charge Lamont Pugh stated, "The conduct alleged in this complaint is serious, not only in terms of potential Medicare dollars improperly obtained, but patient safety as well. The OIG will aggressively investigate allegations of this nature in order to ensure the safety of Medicare patients and to protect vital taxpayer dollars."
According to the complaint, Dr. Fata owns and operates Michigan Hematology Oncology Centers (MHO) which has offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park. It was through MHO that Dr. Fata allegedly submitted fraudulent claims to Medicare for medically unnecessary services, including chemotherapy treatments, Positron Emission Tomograph (PET) scans and a variety of cancer and hematology treatments for patients who did not need them. In the course of the scheme, Dr. Fata falsified and directed others to falsify documents. MHO billed Medicare for approximately $35 million dollars over a two-year period, approximately $25 million of which is attributable to Dr. Fata.The complaint further alleges that Dr. Fata directed the administration of unnecessary chemotherapy to patients in remission; deliberate misdiagnosis of patients as having cancer to justify unnecessary cancer treatment; administration of chemotherapy to end-of-life patients who will not benefit from the treatment; deliberate misdiagnosis of patients without cancer to justify expensive testing; fabrication of other diagnoses such as anemia and fatigue to justify unnecessary hematology treatments, and distribution of controlled substances to patients without medical necessity or are administered at dangerous levels.
The complaint goes on to allege that Dr. Fata directed that chemotherapy be administered to patients who had other serious medical conditions that required immediate treatment before he would permit them to go to the hospital. In one instance, a male patient fell down and hit his head when he came to MHO. Dr. Fata insisted that the patient receive his chemotherapy before he could be taken to the emergency room. MHO administered the chemotherapy, after which the patient was taken to the emergency room. The patient later died from his head injury. In the second instance, a patient came to MHO with extremely low sodium levels, which can be fatal. Dr. Fata again directed that the patient first receive chemotherapy before being taken to the emergency room. MHO administered the chemotherapy and the patient was taken to the emergency room and hospitalized.
Dr. Fata will be making his initial appearance in federal court this afternoon at 1pm.
Patients who have questions concerning their medical records and/or information regarding this investigation and prosecution can call the United States Attorney’s Office Information Line at 888-702-0553.
The case is being prosecuted by Assistant Chief Catherine Dick, supervisor of the Detroit Medicare Fraud Strike Force and Trial Attorney Matthew Thuesen of the Department of Justice as well as Sarah Resnick Cohen, Deputy Chief of the Health Care Fraud Unit at the U.S. Attorney’s Office, and Justin Bidwell, Special Assistant United States Attorney. The investigations were conducted jointly by the FBI and HHS-OIG, along with the assistance of the Michigan Attorney General’s Office.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team, go to: www.stopmedicarefraud.gov.New Haven Man Charged with Federal Crack Cocaine, Marijuana and Firearms OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging FRANK D. GOMEZ, 34, of New Haven, with crack cocaine, marijuana and firearms offenses.
As alleged in the four-count indictment, on July 14, 2013, GOMEZ possessed with intent to distribute 28 grams or more of crack cocaine and a quantity of marijuana. The indictment further alleges that GOMEZ, a previously convicted felon, also possessed a loaded .380 caliber Kel-Tec semi-automatic pistol in furtherance of his drug trafficking activities.
The indictment charges GOMEZ with possession with intent to distribute 28 grams or more of cocaine base (“crack”), which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and with possession with intent to distribute marijuana, which carries a maximum term of imprisonment of 20 years. The indictment also charges GOMEZ with possession of a firearm in furtherance of drug trafficking, which carries a mandatory consecutive prison term of five years, and possession a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years. If GOMEZ is determined to be an Armed Career Criminal based on his prior criminal record, he faces a mandatory term of imprisonment of 15 years and a maximum term of life.
Acting U.S. Attorney Daly stressed that an Indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case has been assigned to U.S. District Judge Janet C. Hall in New Haven.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant United States Attorney John H. Durham.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Crack Dealer Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RUFUS HUNTER, also known as “Trip,” and “Triple Black,” 31, of New Haven, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 130 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps, revealed that members and associates of the Southside Bloods were distributing large quantities of crack cocaine. Phone calls intercepted during the course of the investigation revealed that HUNTER was at the center of a crack distribution ring and a member of the Bloods, which at the time was feuding with the rival Grape Street Crips. Between December 2011 and April 2012, investigators made four controlled purchases of crack cocaine from HUNTER.
On May 31, 2012, investigators executed a search and seizure warrant at a West Haven residence associated with HUNTER and seized a loaded .45 caliber pistol and a nine millimeter pistol, both of which have been identified as belonging to HUNTER.
On April 16, 2013, HUNTER pleaded guilty to one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nespelem Man Sentenced to Federal Prison for Domestic ViolenceRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Tommie Joe Flett, age 41, of Nespelem, Washington, was sentenced on Monday, August 5, 2013, after having previously pleaded guilty on April 29, 2013, to one count of Assault With a Dangerous Weapon and one Count of Domestic Assault by an Habitual Offender. United States District Court Judge Fred Van Sickle sentenced Flett to a thirty-four month term of imprisonment, to be followed by three years of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on June 5, 2012, Flett entered an apartment where his girlfriend was watching a movie with her girlfriend. Flett entered the living room and began hitting his girlfriend, then after knocking her to the ground, Flett began kicking her. Flett then choked his girlfriend. He then brandished a knife and cut her on the shoulder. The victim fled to a bathroom, where Flett brandished another knife, held it to her throat and said he wanted to kill her. Colville Tribal Police officers entered the apartment after a witness called 9-1-1. Flett was found in the apartment and arrested.
Michael C. Ormsby stated, "domestic violence is an ongoing problem that requires decisive action." "The United States Attorney's Office for the Eastern District of Washington is, and will continue to be, committed to aggressively prosecuting domestic violence crimes that occur within federal jurisdiction, including the Indian reservations in the District."
This investigation was conducted by FBI and the Colville Tribal Police Department. The case was prosecuted by Rudy J. Verschoor, Assistant United States Attorney for the Eastern District of Washington.
CR-12-00132-FVS
Mortgage Company Executive Pleads Guilty in Fraud CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Steve Linick, Inspector General, Federal Housing Finance Agency, Office of Inspector General, and Drew J. Breakspear, Commissioner, State of Florida’s Office of Financial Regulation, announce that Patrick J. Mansell, 68, of Boca Raton, FL, Vice President of Coastal States Mortgage Corporation (Coastal), 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 activity 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.
The defendant faces a statutory maximum penalty of five years’ in prison, followed by a three year period of supervised release, and a fine of up to $250,000 and restitution. Sentencing is scheduled for October 15, 2013 before U.S. District Judge Robin Rosenbaum.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency, Office of the Inspector General and State of Florida’s Office of Financial Regulation. 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.
Monroe County Man Sentenced to Prison ForRead the Press Release
Federal Cocaine Trafficking And Money Laundering Charges
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 60 months in prison on the charges of conspiracy to distribute cocaine and conspiracy to commit money laundering.
According to United States Attorney Peter J. Smith, Dickson Gutierrez, age 37, formerly of Stroudsburg, Monroe County, previously admitted to participating in a conspiracy to distribute powder cocaine and to commit money laundering in the Monroe County and Northampton County areas in 2011. As part of his plea agreement, Gutierrez also agreed to forfeit to the United States two properties in the Dominican Republic which were purchased with the proceeds of cocaine trafficking activity.
In addition to the prison term, Senior Judge Kosik also ordered that Gutierrez be supervised by a probation officer for four years following his prison sentence.
The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Minnesota Man Sentenced for BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that a White Earth, Minnesota, man convicted of burglary was sentenced on August 2, 2013, by U.S. District Judge Karen E. Schreier.
Raymond Jackson, age 33, was sentenced to 15 months in custody with credit for time served, 2 years of supervised release, and $100 to the Federal Crime Victims Fund.
Jackson was indicted by a federal grand jury on January 13, 2013, and pled guilty to the charge on May 13, 2013.
The conviction stems from an incident that took place August 15, 2012, when Jackson entered and remained in a residence in Marty, South Dakota, with the intent to commit a crime. Jackson made entry into the residence by walking through an unlocked door, where he surprised the sleeping resident inside the home. The resident woke up, struggled briefly with Jackson, and Jackson ran out of the home. He was arrested a short time later.
The investigation was conducted by the Bureau of Indian Affairs, Law Enforcement Services, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Thomas J. Wright.
Jackson will self-surrender to the custody of the U.S. Marshal later this month.Mexican National Pleads Guilty to Making False Statement to Obtain A U.S. PassportRead the Press Release
BOISE – Lorena Torres-Flores, 39, a Mexican national formerly living in Jerome, Idaho, pleaded guilty today in United States District Court to one count of making a false statement in an application for a passport, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on September 13, 2010, Torres-Flores filed an application for a United States passport in Jerome. The passport application falsely identified Torres-Flores as another individual, and included that individual’s date of birth, social security number and parental information. At the time that Torres-Flores filed the passport application, she intended to obtain a United States passport in the name of the individual, a lawful United States citizen.
On August 29, 2012, a special agent with the U.S. Department of State Diplomatic Security Service interviewed Torres-Flores at her Jerome residence. Torres-Flores subsequently admitted that she filed the passport application using the identity of another individual, her true name was Lorena Clara Torres-Flores, and she was born in Mexico. She further admitted that she attempted to obtain a passport to travel to Mexico and return to the United States.
Torres-Flores faces up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for October 15, 2013, before U.S. District Judge Robert J. Bryan at the James A. McClure United States Courthouse and Federal Building, in Boise.
The case was investigated by the U.S. Department of State Diplomatic Security Service.
McLaughlin Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on August 2, 2013, by U.S. District Judge Charles B. Kornmann.
Verle Janis, a/k/a Verl Janis, age 32, was sentenced to 24 months of imprisonment, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Janis was indicted by a federal grand jury on February 13, 2013. He pled guilty to a Superseding Information on April 23, 2013.
The conviction stems from an incident in January of 2013 when a BIA officer was dispatched to the Bear Soldier West housing project in McLaughlin. Upon arrival, the officer observed several individuals in the residence and requested a warrant check. He was advised that Janis was on probation with conditions that prohibited alcohol. When the officer attempted to place the Defendant in handcuffs, he became uncooperative and refused to comply. The officer removed his taser and the Defendant momentarily complied and was placed in the back seat of the patrol unit.
The officer then secured several personal items left in the house by the Defendant, and upon opening the back door to the patrol unit, was kicked in the shoulder by the Defendant. The officer was forced to remove the Defendant from the patrol unit in order to place him in leg restraints. While attempting to secure the Defendant, the officer was kicked in the leg several times.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Janis was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Charges Against New York City Comptroller Candidate Kristin Davis for Illegally Distributing Prescription PillsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of KRISTIN DAVIS, a candidate for New York City Comptroller, on charges of selling prescription pills containing controlled substances, including oxycodone, for cash. DAVIS was arrested yesterday in Manhattan, and is expected to be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Kristin Davis sold dangerous and highly-addictive prescription pills to a known drug dealer on repeated occasions in exchange for cash. Prescription drug abuse is the fastest-growing drug problem in this country, resulting in more overdose deaths than heroin and cocaine combined, and this Office has a zero tolerance policy towards anyone who helps to spread this plague at any level.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Kristin Davis sold prescription pills not once, but rather four different times in four months to an FBI cooperating witness. This type of criminal activity is illegal for citizens, and is especially unbecoming for a person seeking public office in the City of New York. The FBI and our partners in law enforcement remain committed to investigate and bring to justice those individuals who illegally distribute prescription medicines for their own financial gain.”
According to the Complaint unsealed today in Manhattan federal court and other information in the public record:
On three separate occasions from January 2013 to March 2013, DAVIS sold hundreds of prescription pills containing amphetamine, alprazolam, zolpidem, and carisoprodol to a person she knew from prior purchases and sales to be a drug dealer. Unbeknownst to DAVIS, the person was a cooperating witness (the “CW”) with the FBI and equipped with a recording device. During these sales, DAVIS was recorded saying that the pills she was selling were “Ambien,” “Soma,” and “Xanax.” On a fourth occasion, in April 2013, DAVIS arranged for another individual to sell approximately 180 oxycodone pills to the CW.
Oxycodone, a Schedule II controlled substance, is a powerful painkiller with a high potential for addiction and abuse, and the active ingredient in OxyContin and Percocet. There is an illegal market for oxycodone, which is often used as a substitute for, or adjunct to, other illegal drugs, such as heroin.
Amphetamine, a Schedule II controlled substance, is a psycho-stimulant, and the active ingredient in Adderall. There is an illegal market for amphetamine, often referred to as “speed,” as a substitute for, or adjunct to, other illegal drugs, such as methamphetamine and cocaine.
Alprazolam, a Schedule IV controlled substance, is a psychoactive drug, and the active ingredient in Xanax. There is an illegal market for alprazolam, which is often used as a substitute for, or adjunct to, other illegal drugs, such as LSD, heroin or opiates.
Zolpidem, a Schedule IV controlled substance, is a sedative/hypnotic drug, and the active ingredient in Ambien. There is an illegal market for zolpidem, which is often used as a substitute for, or adjunct to, other illegal drugs, such as amphetamine, methamphetamine, cocaine, and MDMA (commonly known as ecstasy).
Carisoprodol, a Schedule IV controlled substance, is a skeletal muscle relaxant, and the active ingredient in Soma. There is an illegal market for carisoprodol, which is often used in conjunction with painkillers and so-called “date rape” drugs.
DAVIS, 38, of New York, New York, is charged with four counts of distributing and possessing with intent to distribute a controlled substance. Each count carries a maximum sentence of 20 years in prison.
DAVIS is the sixth person arrested as part of an ongoing investigation conducted by the FBI, the United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), the New York City Police Department (NYPD), and the U.S. Attorney’s Office into the unlawful distribution of prescription drugs containing controlled substances in and around New York City. Thomas Rock was arrested on July 10, 2013, and charged with distributing and conspiring to distribute oxycodone and alprazolam. Eugene Kurochkin was arrested on July 11, 2013 for distribution of oxycodone, alprazolam, amphetamine, and zolpidem. Raoul Goldberger and Rebecca Temen were arrested on July 29, 2013, and charged with distributing and conspiring to distribute amphetamine, oxycodone, and vicodin. Erik Pichardo, who is referred to as “Individual-1” in the Complaint against DAVIS, has been charged with distributing oxycodone and is at large.
In addition, the investigation also led to the arrest of Mark Decker on July 1, 2013, on charges of distributing cocaine and ecstasy.
Mr. Bharara praised the investigative work of the FBI. Mr. Bharara also thanked HHS-OIG and NYPD for their assistance in the ongoing investigation.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Kristy J. Greenberg, Daniel C. Richenthal, and Edward A. Imperatore are in charge of the prosecution.
The charges contained in the Complaint, and the other charges brought in connection with the ongoing investigation, are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Kristin Davis Complaint
Manhattan U.S. Attorney and EPA Announce Lawsuit Against Westchester County for Failing to Comply with the Federal Safe Drinking Water ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith Enck, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against the County of Westchester, New York (“Westchester”) alleging violations of the federal Safe Drinking Water Act (“SDWA”).
Manhattan U.S. Attorney Preet Bharara said: “The federal Safe Drinking Water Act is designed to protect public health by requiring suppliers of water to take steps to prevent water-borne diseases from being transmitted to the public. Westchester’s prolonged failure to comply with treatment rules designed to prevent cryptosporidiosis is unacceptable.”
EPA Regional Administrator Judith Enck stated: “Westchester County has an obligation to protect the public and come into compliance with the Safe Drinking Water Act. In 2013, it is hard to believe there is resistance to taking action to prevent water-borne diseases.”
The lawsuit alleges that since April 2012 Westchester, through its Water District No. 1, has failed to comply with an SDWA rule that requires municipal drinking water suppliers to treat all unfiltered surface water for Cryptosporidium, a microscopic parasite. Cryptosporidium can cause cryptosporidiosis, a potentially fatal gastrointestinal illness in humans with symptoms that include diarrhea, nausea and abdominal cramps. There is no known treatment for cryptosporidiosis, and symptoms may persist for two weeks or longer in otherwise healthy adults and can be life-threatening for more vulnerable individuals.
Westchester’s Water District No. 1 supplies water to residents of municipalities including Scarsdale, White Plains, and Yonkers. According to the lawsuit, Westchester has failed to treat a significant portion of the water supplied to customers by Water District No. 1 for Cryptosporidium, especially in the northern part of this water district.
The Complaint filed by the United States seeks an order compelling Westchester to comply with the mandatory treatment requirements and ensure the delivery of properly treated drinking water to all households served by District No. 1. The complaint also seeks civil penalties for Defendant’s violations.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Natalie N. Kuehler is in charge of the case.
WestchesterWater.Complaint
Man Now Facing New Child Sex Trafficking Charges for ‘Pimping’ Minors Turned over to Federal Authorities and Is Due in Court TomorrowRead the Press Release
SANTA ANA, California – A 19-year-old South Los Angeles man is scheduled to appear in federal court Wednesday to face charges that accuse him of acting as a pimp for underage prostitutes whose services were advertised online.
Curtis Maurice Canady, 19, also known as “Cash,” was charged last week in a criminal complaint filed in United States District Court in Santa Ana with two counts of child sex trafficking.
Because the victims were between the ages of 14 and 18, Canady would face a mandatory minimum sentence of 10 years in federal prison if he is convicted of either count. The statutory maximum penalty for the offenses is life in federal prison.
After his arrest on July 25 as part of an FBI-led initiative called Operation “Cross Country,” Canady was charged by the Orange County District Attorney’s Office with two counts of human trafficking with the intent to pander, two counts of pandering a minor by procuring, and one count of attempted pimping. At a court appearance this morning in the Orange County Superior Court, the District Attorney’s Office agreed to Canady’s release from custody so he could be taken into federal custody. Canady is scheduled to appear in United States District Court in Santa Ana tomorrow at 2:00 p.m.
“As we focus our efforts on sex traffickers who prey upon young, vulnerable victims, we are developing new ways to identify the problem and deal with offenders,” United States Attorney André Birotte Jr. said. “This case demonstrates the value of collaborative law enforcement to most effectively bring justice to the victims of this most troubling offense.”
Officers with the Anaheim Police Department identified Canady as a trafficking suspect after interviewing victims who were working as prostitutes. Canady was subsequently arrested by members of the Orange County Child Exploitation Task Force during Operation Cross Country, which was conducted to identify sex trafficking rings and underage victims.
According to the federal complaint, Canady drove female prostitutes to Anaheim, including two girls who are 15 and 16. On July 25, task force investigators located one of the victims in a motel room in Los Angeles, and she not only admitted to working as a prostitute for Canady, she also said she accompanied Canady and another minor to Las Vegas, where they worked as prostitutes. During the investigation, investigators also identified one of the victims as the subject of an online advertisement for prostitution services in the Palmdale area.
“The U.S. Attorney and I will coordinate efforts to take these modern-day slave owners and human traffickers off the streets and prosecute them for the greatest possible punishment under the law for sexually exploiting children for their greedy purposes,” said Orange County District Attorney Tony Rackauckas.
FBI Assistant Director in Charge Bill Lewis stated: “The targeting of minors for prostitution is on the rise in the United States. Law enforcement and the community must work together to identify victims in our own backyards, and to end the cycle of oppression endured by our nation’s children, as well as adult victims, who may be forced into prostitution against their will.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The case against Canady is the result of an investigation by the Anaheim Police Department and the FBI.
Release No. 13-101
Lower Brule Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on August 5, 2013, by U.S. District Judge Roberto A. Lange.
Irvin Yazzie, age 24, was sentenced to 17 months of imprisonment, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Yazzie was indicted by a federal grand jury on March 13, 2013, and pled guilty to the above charge on April 30, 2013.
The charge stems from an incident wherein Yazzie and his girlfriend, who were staying at a residence in Lower Brule, began arguing about their relationship. During the course of the argument, Yazzie assaulted the victim by striking her with his fists and a black aluminum pole. The victim suffered bruising as a result of the assault.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Yazzie was immediately turned over to the custody of the U.S. Marshals Service.Leader of A Maryland Drug Ring and Two Conspirators Sentenced to PrisonRead the Press Release
Conspired to Distribute Over 1,500 Pounds of Marijuana and Launder Over $1 Million
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Billymir Mancilla-Brevichet, age 28, of Oakland, California, today to 90 months in prison, followed by four years of supervised release, for conspiring to distribute more than 700 kilograms of marijuana and conspiring to commit money laundering. Chief Judge Chasanow also ordered that Mancilla forfeit $278,618 seized from May to October, 2012.
Yesterday, Chief Judge Chasanow sentenced co-conspirators Chamron Thach, a/k/a Sham, age 30, of Silver Spring, Maryland, and Carlos Salvador Escobar, a/k/a Esco, age 30, of Arlington, Virginia, to eight years and three years in prison, respectively, for their participation in the drug and money laundering conspiracies.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
“This case underscores the teamwork between HSI and the Montgomery County Police Department in dismantling a drug trafficking and money laundering organization,” said William Winter, HSI special agent in charge in Baltimore. “HSI works aggressively to keep illegal drugs out of our communities, and to dismantle the criminal networks that profit from drug trafficking and the crime that surrounds it.”
According to their guilty ples and court documents, from March 2011 to December 2012, Mancilla acquired large amounts of high-quality marijuana from suppliers in California and elsewhere, and arranged for the transport of the marijuana by plane, car and mail to co-conspirators in Montgomery County, Maryland, including Chamron Thach. Mancilla’s co-conspirators transported at least 100 pounds of marijuana at a time by car to a storage facility in Maryland, where Mancilla arranged for co-conspirators, including Carlos Escobar, to pick up multiple pounds of marijuana for re-distribution. When the marijuana was delivered to Maryland, Thach became responsible for redistributing the marijuana to co-conspirators and customers. Thach also received at least six pounds of marijuana every week by mail from Mancilla that he re-distributed to his drug customers in amounts up to a pound at a time. Thach had these packages delivered to co-conspirators’ homes and to a stash location he maintained in Silver Spring, Maryland.
Mancilla charged between $3,000 and $4,000 per pound of marijuana. During their participation in the conspiracy, Mancilla, Thach and Escobar conspired to distribute over 1,500 pounds of marijuana.
Mancilla arranged to receive payment for the marijuana he caused to be distributed by having drug customers deposit cash payments in amounts less than $10,000 into bank accounts that he controlled that were held in fake names and in the names of fake businesses. Mancilla and other co-conspirators, including Thach and Escobar, structured the financial transactions to evade requirements that banks must report transactions over $10,000 to the IRS, thereby concealing from the government large cash transactions by drug dealers.
Mancilla also had drug customers make payments to Escobar and other co-conspirators in Maryland, who bundled the drug proceeds together in amounts ranging from $10,000 to $100,000. Thach and other individuals traveled by plane from Maryland to Mancilla in California with the bundles of money. Finally, Mancilla arranged for drug customers, including Thach, to mail drug proceeds from Maryland to him in California.
This money laundering conspiracy involved at least $1 million.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Laredoan Sent to Prison for Possessing Child PornographyOrdered to Pay More Than $1 Million in RestitutionRead the Press Release
LAREDO, Texas – Luis Alberto Alcala, 25, of Laredo, has been ordered to federal prison for nearly eight years following his conviction of possessing with intent to view visual depictions of minors engaged in sexually explicit conduct, United States Attorney Kenneth Magidson announced today. He pleaded guilty Aug. 15, 2012.
Today, the government presented additional evidence including statements from one of the identified victims and members of her family. U.S. District Judge George P. Kazen took into consideration the amount of the images, the ages of the victims depicted therein and the types of child pornographic images and videos that were found on the Alcala’s computer. He then sentenced him to 90 months in federal prison. In handing down the sentence, Judge Kazen stated Alcala needed mental health treatment while in prison and when he was released in order to address his propensity to possibly re-offend. Judge Kazen also ordered Alcala to register as a sex offender. Alcala was further ordered to pay restitution in the amount of $950,000 to a known victim fund and another $150,000 to an identified victim. He will also be required to serve a term of 30 years of supervised release following completion of his prison sentence, during which Alcala is ordered not to work with, live near or have any direct contact with any minor without prior approval by the U.S. Probation Office. In addition, Alcala is ordered to not subscribe to and online service provider or use computer software for such purpose.
At the time of his guilty plea, Alcala admitted to downloading from child pornography sites and viewing pictures and videos of girls under the age of 18 engaging in sexually explicit conduct. Several of the images were identified as known victims and indexed in the National Center for Missing and Exploited Children.
The case arose from an Homeland Security Investigations (HSI) and Laredo Police Department (LPD) investigation that began in June 2008 after a complaint of the theft of a debit/credit card. The card was used to purchase a computer at Wal-Mart along with other items that were not authorized by the owner of the debit/credit card. Further investigation by LPD led to Alcala who admitted to detectives that he had used the card to purchase the laptop computer that was found at his apartment. A search of the computer by LPD showed that the computer hard drive contained numerous visual depictions of minors engaged in sexually explicit acts, at which time LPD referred this part of the investigation to HSI.
HSI agents conducted a forensic exam of the computer’s hard drive, which revealed 194 photographic images and 20 movies of minors engaged in sexually explicit conduct. Alcala admitted to LPD investigators that he had downloaded the images himself because he was curious.
Alcala will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI and LPD investigated with assistance of the Texas Department of Criminal Justice.
This case, prosecuted by Assistant United States Attorney Roberto F. Ramirez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lancaster County Man Charged with Possession of Child PornographyRead the Press Release
Richard Dean Russell, 52, of New Holland, PA, was charged today, by information, with possession of child pornography, announced United States Attorney Zane David Memeger. The indictment charges Russell with one count of possessing child pornography on October 17, 2012.
If convicted the defendant faces a maximum possible sentence of 10 years imprisonment.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Judge Sentences Johnstown Felon to 7½ Years in Prison for Possessing WeaponRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court to 92 months incarceration and three years of supervised release on his conviction of unlawful possession of a firearm by a convicted felon, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Rogelin M. Lopez, 26, of Johnstown, Pa.
According to information presented to the court, on Dec. 24, 2009, Lopez, who had been convicted in 2006 in Cambria County, Pa., of delivery of a controlled substance, unlawfully possessed a Smith & Wesson pistol. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Delivery of a controlled substance is such a crime.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Johnstown Police Department and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Lopez.
According to Mr. Hickton, Lopez was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Henrico Car Dealer Sentenced for Evading $668,791 in Taxes Owed to the IRSRead the Press Release
RICHMOND, Va. – Samad Jafari, 55, of Henrico, Va., was sentenced to 30 months in prison for a tax evasion scheme involving his used car sales business known as United Import Company, Ltd. (United Import), and was ordered to pay restitution in the amount of $668,791. In addition, on March 25, 2013, United Import was ordered to pay forfeiture in the amount of $735,225 as a result of its guilty plea to structuring cash deposits to prevent banking institutions from reporting currency transactions to the Internal Revenue Service (IRS).
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the sentencing by United States District Judge Henry E. Hudson.
Jafari and United Import pled guilty on March 25, 2013. In a statement of facts filed with both plea agreements, Jafari admitted he was the owner and operator of United Import, which has been in business since 1999. Jafari was the sole signatory and owner of a business account in the name of United Import. He acknowledged that beginning in 2006, Jafari developed a scheme to receive cash payments for the financing of used cars, and subsequently structured cash deposits into the business account, as well as other personal bank accounts. Jafari also created a second set of figures to provide to his accountant in preparing his 2006 and 2007 Federal Income Tax returns, which significantly understated the amount of cash payments he received for vehicle financing. The total tax loss identified in the investigation was in excess of $698,000.
In addition, Jafari acknowledged that, acting as President of United Import, he structured or caused to be structured, over $735,000 in cash deposits during a 24-month time period in an effort to prevent banking institutions from filing a “Currency Transaction Report” or CTR. Banks are required to file CTRs under the Bank Secrecy Act for cash transaction in excess of $10,000, and the forms are used to detect criminal activity, including tax evasion. To avoid the reporting requirement, which had the potential to alert the authorities to the actual amount of cash he had received, Jafari broke deposits down into multiple transactions in amounts below $10,000, and used both business and personal accounts.
This case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney David T. Maguire prosecuted 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.Guilty Plea Entered to Dealing and Passing Counterfeit Reserve NotesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Mr. Jonathan Moody, age 25, of Nashville, Georgia, entered a plea of guilty on July 31, 2013, to two counts of counterfeiting involving United States currency. The guilty plea was entered before the Honorable Hugh Lawson, Senior United States District Judge for the Middle District of Georgia, in Valdosta, Georgia.
In his plea of guilty Mr. Moody admitted that he knowingly passed counterfeit $100 and $20 bills, using the counterfeit money to make purchases and receive change in genuine currency from merchants in the Valdosta area, causing financial losses to those businesses.
Sentencing for Mr. Moody has been set for October 28, 2013, in Valdosta. Mr. Moody faces up to twenty (20) years imprisonment and a $250,000.00 fine on each of the two counts.
The case was investigated by the United States Secret Service and the Lowndes County Sheriff’s Office. Assistant United States Attorney Robert D. McCullers is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Guilty Plea EnteredRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Mr. Kenneth E. Henderson, age 49, of Tifton, Georgia, entered a plea of guilty, on July 29, 2013, to one count of receipt of child pornography before the Honorable Hugh Lawson, Senior United States District Judge for the Middle District of Georgia, in Valdosta, Georgia.
A search of Mr. Henderson’s computer by law enforcement revealed videos and images of minors engaged in sexually explicit conduct. Some of the videos and images involved prepubescent minors and minors under the age of twelve. Mr. Henderson admitted that he searched for and viewed child pornography on the internet during a seven month period while he was assigned as an employee of the United States Armed Forces in Kuwait.
Sentencing for Henderson has been scheduled for October 28, 2013, in Valdosta. Mr. Henderson faces a mandatory minimum of five (5) years in prison, and could be sentenced to a maximum of up to twenty (20) years imprisonment, to be followed by a term of supervised release of not less than five (5) years, or life, as well as a fine of up to $250,000.00.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations and the Naval Criminal Investigation Service (NCIS). Assistant United States Attorney Robert D. McCullers is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Greenville Drug Trafficker Sentenced in Operation "No Quarter"Read the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced MARIO CARMON , 33, of Greenville, North Carolina, to 100 months imprisonment, followed by 4 years of supervised release.
CARMON was named in an Indictment filed on September 12, 2012 charging him with conspiracy to distribute heroin and crack cocaine as well as distributing heroin and crack cocaine. On November 14, 2012, CARMON pled guilty to conspiracy charge.
Between December 7 and December 12, 2011, the Greenville Regional Drug Task Force made four controlled purchases of controlled substances from CARMON, including heroin and crack cocaine. On March 24, 2012, investigators executed a search warrant at 307 Manhattan Avenue, where several of the aforementioned controlled purchases had taken place. Officers encountered CARMON attempting to flee the residence; however, he was detained. On the kitchen counter, officers located 10 grams of cocaine base, and a bindle of heroin. CARMON claimed the drugs as his, and admitted to selling drugs. Further investigation revealed that CARMON had been selling heroin and crack cocaine since 2007.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value of $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
The investigations of cases in Operation "No Quarter" were conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Fruitland Man Sentenced to 35 Years in Prison for Conspiracy, Arson and Theft of FirearmsRead the Press Release
VonBargen Convicted of Destroying Government Vehicles and a Building in Payette, Idaho
BOISE – U.S. Attorney Wendy J. Olson announced today that David Joseph VonBargen, 50, of Fruitland, Idaho, was sentenced today in United States District Court to 420 months in prison followed by three years of supervised release. VonBargen was convicted by a federal jury in April 2013 of carrying and using firearms – Molotov cocktails – during and in relation to a federal crime of violence, conspiracy to maliciously use explosive materials, conspiracy to maliciously damage federal property, and theft of firearms. Chief U.S. District Judge B. Lynn Winmill also ordered VonBargen to pay $162,124.87 in restitution to Western Core Door, Inc. and the U.S. Department of Agriculture.
During the five-day trial, the jury heard evidence that on May 27, 2011, VonBargen and his co-defendant, Donovan James Bolen, schemed to set fires in Payette to divert law enforcement while they broke into the World’s Largest Pawn Shop, in Fruitland, and stole firearms. The jury found VonBargen guilty of using Molotov cocktails to set fire to two U.S. Department of Agriculture vehicles and a lumber warehouse belonging to Western Core Door, Inc., in Payette. The jury also found VonBargen guilty of burglarizing and stealing 12 firearms, including rifles, revolvers, and pistols, from the World’s Largest Pawnshop.
Donovan Bolen, 23, also of Fruitland, was sentenced on February 5, 2013, to 444 months – 37 years – in federal prison and ordered to pay $162,124.87 in restitution to Western Core Door, Inc. and the U.S. Department of Agriculture. On October 16, 2012, Bolen was convicted by a federal jury of carrying and using firearms during and in relation to a federal crime of violence, conspiracy to maliciously use explosive materials, conspiracy to maliciously damage federal property, and theft of firearms.
“Mr. VonBargen’s use of Molotov cocktails to divert the attention of law enforcement was unconscionable, endangered the lives of first responders, and destroyed the property of innocent victims,” said Olson. “I commend the swift law enforcement response that brought both of the defendants in this case to justice. Mr. VonBargen now, like his co-defendant, faces a well-deserved lengthy prison sentence.”
The case was investigated by the Fruitland Police Department, the Payette Police Department, the Payette County Sheriff's Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Idaho State Fire Marshal.
Former Metairie Resident, Anil Patel, Charged with Tax FraudRead the Press Release
ANIL PATEL, age 45, formerly a resident of Metairie, Louisiana, was charged in a bill of information today with filing a false tax return, announced U. S. Attorney Dana J. Boente.
According to court documents, on August 6, 2009, PATEL signed and filed a 2008 U. S. Individual Income Tax Return (Form 1040) with the Internal Revenue Service. The tax return allegedly did not report approximately $426,744 in income.
If convicted, PATEL faces a maximum term of imprisonment of 3 years, as well as a fine of $250,000 and 1 year of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Special Agents of the Internal Revenue Service and the prosecution is being handled by Assistant United States Attorney Jon Maestri.
(Download Bill of Information )
Former Mayoral and Congressional CandidateGuilty of Mail Fraud in Scheme to Defraud the BP Oil Spill FundRead the Press Release
A former candidate for mayor of Detroit and for Congress was convicted on August 5, 2013, of three counts of mail fraud, United States Attorney Barbara L. McQuade announced today.
Duane Montgomery, Jr., age 46, of Livonia, Michigan was found guilty by a federal jury in Detroit after a trial before the Honorable Stephen J. Murphy, III, United States District Judge.
At the trial beginning July 16, 2013, the jury heard evidence that Montgomery submitted a series of false claims to British Petroleum (“BP”), the Gulf Coast Claims Facility (funded by BP), and the National Pollution Fund Center, administered by the United States Coast Guard, all seeking compensation for purported damages to a boat he claimed to have been operating in the Gulf of Mexico at the time of the Deepwater Horizon oil spill. The claims centered around his assertion that tar balls resulting from the oil spill destroyed his engines while he was engaged in pollution monitoring for the corporation he owned, Engineering Technological Researchers, Inc., and that the company lost hundreds of thousands of dollars in revenue as a result. Specifically, the defendant’s last claim to the National Pollution Fund Center sought $861,512, which was denied. Earlier, however, the Gulf Coast Claims Facility issued an emergency interim payment to the defendant in the amount of $43,900.
United States Attorney Barbara L. McQuade said, “This defendant’s scheme to defraud targeted private and public funds designated for the victims of the worst ecological disaster in this country’s history. We will continue to aggressively investigate and prosecute such crimes to protect the funds intended for those in need.”
McQuade commended the United States Secret Service Detroit Field Office and the Department of Homeland Security’s Office of Inspector General for the investigation leading to this successful prosecution.
After the verdict, the Court revoked the defendant’s bond. He will remain in custody awaiting sentencing at a time to be set by the Court.
Former High School Softball Coach Sentenced to over 23 Years in Prison for Child Pornography ConvictionRead the Press Release
LAS VEGAS, Nev. – A former softball coach at Silverado High School in Henderson, Nev., has been sentenced to 284 months in federal prison and lifetime supervised release for his convictions for having sexual relations with one of the female players and using his cellular telephone camera to photograph the sexual acts, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Albert Silva Hernandez, Jr., 44, of Las Vegas, was sentenced on Monday, Aug. 5, 2013, by U.S. District Judge James C. Mahan. Hernandez was convicted by a jury in April of eight counts of sexual exploitation of a minor.“Together with our investigative partners, we have been aggressively investigating and prosecuting persons who exploit minors for sexual purposes and use technology to further victimize these children,” said U.S. Attorney Bogden. “If you commit such crimes, you face very serious consequences and a lengthy prison sentence.”
According to the indictment and evidence introduced at trial, Hernandez, a softball coach for Silverado High School and for a competitive club team, had sexual relations with one of his 17-year-old players, and photographed the sexual acts with his cellular telephone camera and sent the images to the girl. Hernandez also had the girl photograph herself naked and send those images to him by her cellular telephone. The pornographic images were produced and the text messages were exchanged between Hernandez and the victim, on Dec. 25, 2011, Jan. 29, Feb. 1, and Feb. 2, 2012.
“As this sentence makes unmistakably clear, child sex predators will receive the justice they are due for their despicable actions,” said Michael Harris, Assistant Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Las Vegas. “We will continue to aggressively target those who prey upon and sexually exploit our children. We owe it to the young victims in these cases, who will carry the emotional and physical scars of these crimes for the rest of their lives.”
The case was investigated by ICE-HSI and the Clark County School District Police. It was prosecuted by Assistant United States Attorneys Susan Cushman and Roger Yang.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Executive Director of Indian Human Resource Center Pleads Guilty to Embezzling Non-Profit’s MoneyRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced today that David Hedley, a former Executive Director of the Indian Human Resource Center (“IHRC”), admitted embezzling over $140,000 from the San Diego-based non-profit.
According to his plea agreement, Hedley served as IHRC’s Executive Director between September 10 and December 11, 2012. Taking advantage of his position as a signer on IHRC’s credit union account, he obtained a debit card allowing him virtually unrestricted access to the funds in one of the credit union accounts. Once he obtained this access, Hedley stole approximately $141,260 in federal funds from IHRC.
According to the plea agreement, at the same time Hedley was stealing funds from IHRC’s credit union account, he was spending comparable sums gambling at a local Indian casino. For example, on October 9, 2012, Hedley withdrew $15,000 in cash from the IHRC credit union account at the North Island Credit Union (“NICU”) located in La Mesa, California. On that same day, Hedley gambled $15,000 at Viejas Casino. Similarly, on October 12, 2012, Hedley improperly withdrew $20,000 in cash from IHRC’s credit union account at the NICU branch in Imperial Beach, California and gambled with that sum at Pala Casino. Hedley also admitted to using over $800 in embezzled funds to buy Southwest Airlines tickets to Las Vegas, Nevada, where he spent thousands of dollars in stolen funds at the Hard Rock Hotel and Casino.
The IHRC was established to train and assist Native Americans with finding employment outside the tribal setting and was awarded over a half million dollars in federal funding from the U.S. Department of Labor over the past two years as part of the Workforce Investment Act (“WIA”). The Workforce Investment Act of 1998 (“WIA”) established a national workforce preparation and employment system to meet the needs of persons seeking employment, including new entrants to the workforce, in order to increase the employment, job retention, earnings and occupational skills of participants, improve the quality of the workforce, reduce welfare dependency, and improve the productivity and competitiveness of the United States.
As a result of his guilty plea, Hedley is facing up to 10 years in prison, and has agreed to pay mandatory restitution of $141,260.44, and to forfeit any property derived from or traceable to the proceeds he obtained from the offense.
Sentencing is scheduled for October 21 at 9 a.m. before U.S. District Judge William Q. Hayes.
DEFENDANT Criminal Case No. 13CR1129-WQH David M. Hedley SUMMARY OF CHARGESCounts 1-8: Title 18, United States Code, Section 666(a)(1)(A) – Theft from Program Receiving
Federal FundsForfeiture: Title 18, United States Code, Sections 981(a)(1)(C) and Title 28, United States Code,
INVESTIGATING AGENCIES
Section 2461(c)Federal Bureau of Investigation
California Department of Justice, Bureau of Gambling ControlFormer Debt Counselor Charged with FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of a Criminal Information in U.S. District Court in Scranton charging Timothy Turner, age 36, of Shavertown, Pennsylvania, with a fraud scheme utilizing the United States Mails.
According to United States Attorney Peter J. Smith, Turner allegedly held himself out as a mortgage consultant, financial consultant, debt relief consultant and/or credit repair consultant with a local business office in Kingston, Pennsylvania. Turner, conducting business under the following corporate and fictitious entity names: The Turner Financial Company, LLC; The Turner Financial Co., LLC; In-Motion Debt Relief; Turner Approved Mortgage; and The Mortgage Modification Consultants.
Turner allegedly devised a scheme to defraud a victim of funds the victim provided Turner who offered debt relief services which included offers to assist the victim in negotiating settlements with credit card companies.
Turner allegedly offered to negotiate settlements with the creditors for approximately 40% of what was owed when the victim’s escrow account reached a sufficient balance. Part was to go into an "escrow account" to be used to satisfy the victim’s outstanding debts, and a separate portion was to go to Turner for his services.
The Information alleges that Turner comingled client funds with company funds and converted the client funds for his own use. Turner allegedly deposited the victim’s funds into an account and then promptly divided it among other business accounts. During a 15-month period between August 1, 2008 through October 31, 2009, Turner made purchases of a personal nature utilizing the victim’s funds. Turner obtained from the victim approximately $23,600 of which Turner claimed that approximately $16,000 were his fees with the remainder allegedly deposited in the "escrow account." Turner allegedly did not settle any of the victim’s credit card debt nor negotiate any settlement; he allegedly closed the business, and moved out of state without reimbursing the victim.
The case was investigated by the United States Secret Service. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Clarksville Electric Department Consultant Sentenced to Four Years in PrisonRead the Press Release
Tommy Lee Walton, II, 39, of Waxhaw, North Carolina, was sentenced yesterday in U.S. District Court in Nashville for his role in an honest services mail and wire fraud scheme involving his payment of bribes and kickbacks to a former president of the Clarksville Department of Electricity, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
Walton was sentenced to 48 months in prison, followed by 24 months of incarceration in a halfway house and 24 months of home confinement. He also was ordered to pay restitution to the Clarksville Department of Electricity in the amount of $95,211.38.
“Corrupt practices by public officials and consultants undermine the confidence that citizens must have in their governmental institutions,” said Acting U.S. Attorney David Rivera. “The costs of corruption are born by taxpayers, ratepayers, honest vendors and honest public employees. The Department of Justice is committed to prosecuting individuals who fraudulently game the system to line their own pockets at the expense of the public and of all those who labor honestly and follow the rules.”
Walton was found guilty by a federal court jury in January 2013 of nine counts of honest services mail fraud and seven counts of honest services wire fraud. According to testimony at trial, in November 2008 Walton was hired as a consultant for the Clarksville, Tennessee Department of Electricity by Rick R. Ingram, Sr., then president of the Clarksville Department of Electricity. From November 2008 through June 2009, Walton and his business entity, IntelliNet Consulting LLC, invoiced and received from the Clarksville Department of Electricity a total of $156,139,39. The payment of each invoice was approved by Ingram.
During that same time, Walton paid $51,500 directly to Ingram or to one of Ingram’s creditors. The payments by Walton to Ingram were not disclosed to members of the Clarksville Electric Power Board or to other employees at the Clarksville Department of Electricity. The United States alleged that these payments by Walton were bribes and kickbacks and that the concealment of these payments from the Clarksville Department of Electricity deprived the Clarksville Department of Electricity and its customers of the honest services of Ingram.
On May 25, 2012, Rick R. Ingram, Sr. entered a plea of guilty to two counts of honest services mail fraud and two counts of honest services wire fraud related to the same scheme for which Walton was convicted and sentenced and related to a separate scheme involving Walton’s father, Tommy L. Walton, Sr. Ingram testified at the Walton trial. A sentencing hearing is scheduled for Ingram on November 1, 2013.
Tommy L. Walton, Sr. entered a plea of guilty to eight counts of honest services mail fraud and to five counts of honest services wire fraud on Monday, January 14, 2013. A sentencing hearing for Tommy L. Walton, Sr. is scheduled for August 26, 2013.
This case was investigated by the Tennessee Valley Authority Office of Inspector General. The case was prosecuted by Assistant United States Attorneys Byron Jones and John Webb.
Fci Danbury Employee Pleads Guilty to Sexual Abuse ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that STEVEN WOLFF, 45, of the Bronx, N.Y., pleaded guilty today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of sexual abuse of a ward.
According to court documents and statements made in court, WOLFF, while employed as a Utilities Systems Repair Operator Foreman by the Federal Bureau of Prisons at the Federal Correctional Institution in Danbury, engaged in sexual acts with one of the female inmates at the prison. On multiple occasions between July 2011 and November 27, 2011, WOLFF and the victim met privately in the boiler area of the prison facility and engaged in sexual intercourse. In addition, WOLFF provided contraband including hair dye, candy, greeting cards and over-the-counter medication to the inmate. Contraband was also provided to another inmate who acted as a lookout during the illicit sexual activity.
WOLFF is scheduled to be sentenced by Senior United States District Judge Warren W. Eginton in Bridgeport on October 29, 2013, at which time WOLFF faces a maximum term of imprisonment of 15 years of imprisonment and a fine of up to $250,000.
This case was investigated by the Department of Justice Office of Inspector General and is being prosecuted by Assistant United States Attorney Anastasia E. King.
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