Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 24 July 2013
St. Louis Man Sentenced to 10 Years on Carjacking and Weapons ChargesRead the Press Release
St. Louis, MO – Leon Jackson was sentenced to 120 months in prison involving the October 2010 armed carjacking in the City of St. Louis.
According to the facts filed with the court, on October 22, 2010, an individual was parked in front on his business in the 4100 block of Lee, in the City of St. Louis. He was sitting in his Dodge Durango when Jackson approached, pointed a semi-automatic weapon at him, demanded the keys to the vehicle or he would be killed. The victim and Jackson began to struggle over the firearm, and the victim eventually gave him the keys to the vehicle. While Jackson was driving away from the scene, the victim pulled his own firearm and shot at Jackson. During the struggle the victim sustained cuts above his eye and on the hand. A short time later Jackson was arrested in the Durango and was later identified by the victim as the individual who stole his vehicle.
LEON JACKSON, St. Louis, MO, pled guilty in April to one felony count of carjacking and one felony count of possession of a firearm in furtherance of crime of violence. He appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney’s Office.
St. Francis Man Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that John Swift, age 65, of St. Francis, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 23, 2013, and pled guilty to Larceny.
The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from incidents that took place between August 1, 2009, and December 31, 2010, when Swift took money and property from the St. Francis Volunteer Fire Department to which he was not entitled.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for October 7, 2013. The defendant was released on bond pending sentencing.South African Charged with Failure to Depart U.S. and Assault on Federal EmployeeRead the Press Release
A grand jury returned a four-count superseding indictment charging Ziyaya Mtola, 39, with two counts of failure to depart the United States and two counts of assault on a federal employee, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Mtola is an alien and a citizen of the Republic of South Africa who physically resisted efforts to remove him from the United States pursuant to an order of removal on March 29, 2013, and April 22, 2013, physically injuring two immigration agents on the latter date.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the Enforcement and Removal Operations of the Immigration and Customs Enforcement Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Sentences for July 18 - 19, 2013Read the Press Release
Christopher Lee Swartwood, 35, of Cody, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 19, 2013, for being a felon in possession of a firearm. Swartwood was arrested in Powell, Wyoming. He received 84 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and local law enforcement in Park County, Wyoming.
Gary William Mitchell, aka Robert Lavern Ackerly, Jr., aka Hoo Bushi, aka Kanzenmohar Ninjokunshi Mitchell, 58, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 18, 2013, on one count of identity theft, one count of social security fraud, one count of making a false statement and one count of use of a false passport. Mitchell was arrested in Casper, Wyoming. He received eight months imprisonment, to be followed by two years of supervised release and was ordered to pay a $400.00 special assessment and restitution to the U.S. Social Security Administration in the amount of $25,196.50. This case was investigated by the Casper Police Office, the Federal Bureau of Investigation and the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Rosebud Woman Sentenced for Possession with Intent to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of Possession with Intent to Distribute Marijuana was sentenced on July 23, 2013, by U.S. District Judge Roberto A. Lange.
Patricia Pacheco, age 23, was sentenced to time served, a $1,000 fine, two years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Pacheco was indicted by a federal grand jury on August 22, 2012, and pled guilty to Count II of the Indictment on April 2, 2013.
The charge stems from an incident on March 21, 2012, wherein Pacheco’s vehicle and residence were searched. Controlled substances, including marijuana and methamphetamine, and drug paraphernalia were found.
The investigation was conducted by the Rosebud Sioux Tribal Law Enforcement and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.Republic Man Indicted for Producing Child Porn, Sharing Child Porn over the InternetRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Republic, Mo., man has been indicted by a federal grand jury for producing child pornography and for receiving and distributing child pornography over the Internet.
Dustin E. James, 30, of Republic, was charged in a two-count indictment returned by a federal grand jury in Springfield on Tuesday, July 23, 2013.
The federal indictment alleges that James used a minor, identified as “Jane Doe,” to produce child pornography between July 1, 2012, and April 24, 2013. The indictment also alleges that James received and distributed child pornography over the Internet between Jan. 1, 2011, and April 24, 2013.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Homeland Security Investigations and the Republic, Mo., Police Department.Project Safe Childhood
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 tab "resources."Philadelphia Woman Sentenced for Social Security FraudRead the Press Release
PHILADELPHIA - Edith Warren, a/k/a “Jourdon Warren-McPherson,” “Jourdon Edith Reed,” “Jourdon Edith Warren-McPherson,” “Edith Reed,” and “Jourdon Edith Warren,” 56, of Philadelphia, PA, was sentenced today to nine months in prison followed by six months of home confinement for a scheme to defraud the government. Warren was collecting Supplemental Security Income and welfare benefits she was not entitled to receive. She pleaded guilty to one count of theft of government funds and one count of Social Security fraud.
Warren concealed her work activity under a second Social Security number, as well as her ownership of two homes, and her marital status. She filed for and received Supplemental Security Income, medical assistance, benefits from the Supplemental Nutrition Assistance Program, and cash assistance benefits. In addition to the prison term, U.S. District Court Judge Gene E. K. Pratter ordered restitution to the Social Security Administration of $42,360, to the Department of Health and Human Services of $88,970, and to the U.S. Department of Agriculture of $11,024, as well as three years of supervised release with 50 hours of community service per year.
The case was investigated by the Social Security Administration Office of Inspector General and the United States Department of Agriculture Office of Inspector General. It was prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Money Launderer Pleads Guilty in Connection with $13 Million Brooklyn Medicare/Medicaid Fraud SchemeRead the Press Release
Leonid Zalkind, 36, of Philadelphia, Pennsylvania, pleaded guilty today to one count of conspiracy to commit money laundering before U.S. District Judge Nina Gershon of the Eastern District of New York. At sentencing, scheduled for December 2, 2013, Zalkind faces a maximum penalty of 20 years in prison and a $500,000 fine.
The guilty plea was announced by U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Special Agent-in-Charge Thomas O’Donnell of the HHS Office of Inspector General (HHS-OIG).
According to court documents, from 2010 to 2012, Zalkind operated numerous shell companies and bank accounts through which he laundered the proceeds of health care fraud from the Brooklyn clinic Cropsey Medical Care PLLC (“Cropsey Medical”). Zalkind conspired with others to accept checks from Cropsey Medical, which were made payable to various shell companies Zalkind controlled. These checks did not represent payment for any legitimate service at or for Cropsey Medical, but rather were written to launder Cropsey Medical’s fraudulently obtained health care proceeds. Zalkind admitted at the plea proceeding that he deposited such checks into bank accounts he controlled, intending these transactions to hide and disguise the fact that these funds were proceeds of a crime. He admitted that he knew these funds were proceeds of illegal activity.
The proceeds of checks Zalkind negotiated and cashed were given to the owners and operators of Cropsey Medical, at which point they were used to pay illegal cash kickbacks to Cropsey Medical’s purported patients. According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
Eight individuals, including a doctor, owners/operators and employees of Cropsey Medical clinics, along with other individuals who paid and received kickbacks to induce the transportation and referral of patients to the clinic, as well as individuals who laundered funds for Cropsey Medical, await trial before Judge Nina Gershon. Trial has not yet been scheduled.
The government’s case is being prosecuted by Trial Attorney Sarah M. Hall and Assistant U.S. Attorneys Shannon Jones and Ilene Jaroslaw of the Eastern District of New York. The case was investigated by the FBI and HHS.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Philadelphia Money Launderer Pleads Guilty <br /> in Connection with Brooklyn Medicare Fraud SchemeRead the Press Release
A Philadelphia resident pleaded guilty today for his role as a money launderer in a $13 million health care fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Loretta E. Lynch of the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, FBI’s New York Field Office; and Special Agent-in-Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) made the announcement.
Leonid Zalkind, 36, of Philadelphia, pleaded guilty to one count of conspiracy to commit money laundering before U.S. District Judge Nina Gershon of the Eastern District of New York. At sentencing, scheduled for Dec. 2, 2013, Zalkind faces a maximum penalty of 20 years in prison and a $500,000 fine.
According to court documents, from 2010 to 2012, Zalkind operated numerous shell companies and bank accounts through which he laundered the proceeds of health care fraud from Brooklyn clinic Cropsey Medical Care PLLC. Zalkind conspired with others to accept checks from Cropsey Medical, which were made payable to various shell companies Zalkind controlled. These checks did not represent payment for any legitimate service at, or by, Cropsey Medical, but rather were written to launder Cropsey Medical’s fraudulently obtained health care proceeds. Zalkind admitted at the plea proceeding that he deposited such checks into bank accounts he controlled, intending these transactions to hide and disguise the fact that these funds were proceeds of a crime. He admitted that he knew these funds were proceeds of illegal activity.
The proceeds of checks Zalkind negotiated and cashed were given to the owners and operators of Cropsey Medical and were used to pay illegal cash kickbacks to Cropsey Medical’s purported patients. According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
Eight individuals await trial, including a doctor, owners and employees of Cropsey Medical clinics and other individuals who paid and received kickbacks to induce the referral and transportation of patients to the clinic, as well as individuals who laundered funds for Cropsey Medical. Trial has not yet been scheduled.
The case was investigated by the FBI and HHS-OIG, brought as part of the Medicare Fraud Strike Force, and supervised by the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorney Sarah M. Hall and Assistant U.S. Attorneys Shannon Jones and Ilene Jaroslaw of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Pediatric Oncologist Charged with Receiving Child PornRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Christopher E. Pelloski, MD, 39, of Upper Arlington, Ohio, turned himself in to law enforcement authorities today after a federal complaint was filed charging him with downloading child pornography.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Franklin County Sheriff Zach Scott and Upper Arlington Police Chief Brian Quinn announced the federal charges today.
Pelloski was a radiation oncologist at the James Cancer Hospital of the Ohio State University Comprehensive Cancer Center in Columbus, where he also held the title as the Director of the Pediatric Radiation Oncology Program.
The Franklin County Internet Crimes Against Children Task Force (ICAC) executed a search warrant at Pelloski's residence on July 16, 2013 and found evidence indicating that Pelloski had downloaded sexually explicit videos of children. Investigators will conduct additional forensic analysis on Pelloski's computers.
"A criminal complaint is only a charge and is not evidence of guilt," U.S. Attorney Stewart said. "The defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt."
The complaint charges Pelloski with one count of receipt of child pornography which is punishable by a sentence ranging from five to 20 years in prison. Pelloski will appear before U.S. Magistrate Judge Norah McCann King at 3:30p.m. today at the Kinneary Federal Courthouse, 85 Marconi Boulevard.
"Our ICAC investigators are highly trained and have technology at their disposal to fully go after these destroyers of innocence," said Sheriff Zach Scott. "This suspect's actions are reprehensible and make no mistake that going after predators like these is a priority. Congratulations to the ICAC unit and to all involved in finding justice for the victims."
Chief Brian Quinn of the Upper Arlington Police Department said, "This type of criminal activity can impact any community, it's especially difficult when it involves someone we all have confidence and trust in. This investigation reinforces the importance of pooling our resources to better address the problem of computer facilitated crimes against children as well as highlight the importance of internet safety education for parents and children."
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. Since the task force began in 2009, over 400 arrests have been made and dozens of child victims of sex abuse and exploitation have been identified and rescued.
The following agencies are members:
Franklin County Sheriff’s Office
Upper Arlington Police Department
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Whitehall Police Department
Hilliard Police Department
Westerville Police Department
Homeland Security Investigations
U.S. Secret Service
Ohio ICAC
U.S. Attorney's Office, Southern District of Ohio
Franklin County Prosecutor's OfficeThis case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obsencity Section (DEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
Parmelee Man Charged with Aggravated Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse.
Daryl Plumman, age 20, was indicted on May 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 24, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Plumman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Plumman was detained pending trial. A trial date has not been set.Owner of California Medical Equipment Supply Company <br /> Found Guilty of $11 Million Medicare Fraud SchemeRead the Press Release
The daughter of a church pastor and owner of a California-based durable medical equipment (DME) supply company was found guilty by a jury of Medicare fraud charges for her role in a Medicare fraud scheme that resulted in over $11 million in fraudulent billings to Medicare.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney André Birotte Jr. of the Central District of California; Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services’s Office of Inspector General (HHS-OIG); Assistant Director in Charge Bill Lewis of the FBI’s Los Angeles Field Office; and Special Agent in Charge Joseph Fendrick of the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse made the announcement.
Obiageli Agbu, 26, of Carson, Calif., was found guilty on July 19, 2013, of one count of conspiracy to commit health care fraud and eight counts of health care fraud following a two-week trial.
The evidence introduced at trial showed that Agbu owned Ibon Inc., a fraudulent DME supply company that she operated from a nondescript office building in Carson. Agbu’s father and co-defendant, Charles Agbu, a church pastor who pleaded guilty to Medicare fraud and money laundering charges in December 2012, ran a fraudulent DME supply company called Bonfee Inc. from the same office building that housed Ibon. The trial evidence showed that from Ibon and Bonfee, Agbu, her father and others working with them submitted more than $11 million in fraudulent claims from Ibon and Bonfee to Medicare for expensive, high-end power wheelchairs, hospital beds, braces and other DME that customers either did not need or receive.
According to evidence at trial, Agbu and her father purchased the power wheelchairs wholesale for approximately $900 per wheelchair, but they billed the wheelchairs to Medicare at $4,000 to $5,000 per power wheelchair. These power wheelchairs were a type of medical equipment of last resort reserved for people with severe mobility limitations and could cause harm if the wheelchairs were supplied to people who did not have a legitimate medical need for them.
Agbu and her father paid kickbacks to street-level patient recruiters or “marketers” who would find senior citizens with Medicare and Medi-Cal benefits and cajole the seniors into agreeing to accept power wheelchairs and other DME that the seniors did not need. The seniors were directed to doctors who received cash kickbacks of $200 to $1,000 to write fraudulent prescriptions and other Medicare-specific documents conspirators used at Bonfee and Ibon to submit fraudulent claims to Medicare.
As a result of this scheme, between July 2005 and February 2011, Agbu, her father and those working with them submitted approximately $11,094,918 million in fraudulent claims to Medicare and received approximately $5,788,725 on those claims.
At sentencing, scheduled for Oct. 17, 2013, Agbu faces a maximum penalty of 10 years in prison for each count of conviction. Agbu’s father is scheduled for sentencing on Aug. 15, 2013. Agbu’s other co-defendants – Dr. Juan Van Putten, Dr. Emmanuel Ayodele, Alejandro Maciel and Candalaira Estrada – have each pleaded guilty to Medicare fraud charges and are scheduled for sentencing in September and October 2013.
The case is being investigated by the FBI, HHS-OIG and the California Department of Justice. The case is being prosecuted by Trial Attorneys Jonathan T. Baum and Alexander Porter of the Criminal Division’s Fraud Section, with assistance from Trial Attorney William Kanellis.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner of Local Tax Preparation Franchise Pleads Guilty to Tax Conspiracy ChargesRead the Press Release
St. Louis, MO – Jimi Clark, owner of a Mo' Money Tax franchise, admitted to falsely claiming educational tax credits on 47 returns. The American Opportunity Credit (AO Credit) allows certain taxpayers with educational expenses to take a refundable credit on their income taxes. He had been scheduled to proceed to trial this morning.
Jimi Clark admitted to overseeing the preparation of tax returns at his franchise, addressed specific questions about returns as they arose and generally supervised all preparers working in his franchise, including his co-defendants, Justin Buford, Leslie Chaney, Ray Reed and Mary Taylor.
The defendants were trained on educational tax credits, including the American Opportunity Credit (AO Credit). Clark abused the AO Credit program at the Mo' Money franchise during the 2009 filing season to attract and keep clients. The office filed at least 47 returns with false and inflated AO Credit line items. On the vast majority of the line items on which AO Credits were claimed on the false returns, Clark and his preparers claimed exactly $3,765 in qualified education expenses. Out of 494 tax returns prepared for the 2009 tax year at Clark’s franchise, more than half, 288 returns, claimed AO credits. On each of the 47 returns, the taxpayers did not incur the educational expenses claimed and were, therefore, not entitled to the AO credits. Defendants Chaney, Reed and Buford went so far as to false claim educational expenses on their personal 2009 returns. The tax loss to the United States on just the 47 returns listed in the indictment exceeds $50,000. The tax loss for all 288 returns on which educational credits were claimed for the office in 2009 exceeds $300,000.
JIMI CLARK, Memphis, Tennessee, pleaded guilty to conspiracy to commit tax fraud and aiding and abetting the preparation of false tax returns. His sentencing is scheduled for November 19, 2013. Clark appeared before U.S. District Judge Audrey Fleissig.
Co-defendants JUSTIN BUFORD, Memphis, Tennessee; LESLIE CHANEY, St. Louis; MARY TAYLOR, Memphis, Tennessee; and RAY REED, St. Louis, previously pled guilty to related charges and await sentencing.
These charges carry maximum penalties up to five year in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution to the United States is also mandatory.This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Norwalk Man Involved in Illegal Sports Bookmaking Operation Sentenced to Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that FRANK POTOLICCHIO, JR., 34, of Norwalk, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to four months of imprisonment, followed by three years of supervised release, for his involvement in an illegal sports bookmaking operation. POTOLICCHIO also was ordered to forfeit $100,000.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, POTOLICCHIO and 19 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden that were controlled by the Gambino Crime Family of La Cosa Nostra.
The investigation, which included the use of court-authorized wiretaps, revealed that POTOLICCHIO was involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
On February 13, 2013, POTOLICCHIO pleaded guilty to one count of operating an illegal gambling business.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Philadelphia Man Indicted for False Identification CrimesRead the Press Release
A federal grand jury returned an indictment against Julio Tzip-Yac, aka Bush, age 30, of New Philadelphia, Ohio, charging one count of possession of document-making implements and four counts of fraudulent identification documents, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The first count alleges that from on or about June 27, 2013, the defendant was in possession of a computer, two identification card printers, and other equipment which was capable of producing counterfeit alien registration cards, Social Security cards and state driver’s licenses.
The remaining counts allege that on various dates in 2012 and 2013, Tzip-Yac, transferred matched sets of false alien registration cards, Social Security cards, and driver’s licenses.
The indictment is a result of a joint investigation conducted by Immigration and Customs Enforcement, Department of Homeland Security and the Ohio State Highway Patrol. The case is being prosecuted by Assistant United States Attorney Phillip J. Tripi.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New Orleans Man, William Stevenson, Sentenced for Role in Heroin and Cocaine ConspiracyRead the Press Release
WILLIAM STEVENSON, age 26, a native of New Orleans, Louisiana, was sentenced today by U. S. District Judge Stanwood R. Duval, Jr., to 140 months in prison for his role in a conspiracy to possess with intent to distribute and distribution of 1 kilogram or more of heroin and 500 grams or more of cocaine hydrochloride and possession of a firearm in furtherance of drug trafficking, announced U.S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Duval imposed 5 years of supervisory release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release.
According to the court documents, in 2009, agents of the Drug Enforcement Administration (DEA) investigated STEVENSON for distributing heroin in the B.W. Cooper housing development. The investigation revealed that STEVENSON conspired with Texas residents, LANDRY GRANDISON, TROY POCHE, and CASSANDRA BATISTE to have wholesale quantities of heroin sent to New Orleans where he would cut the heroin for distribution to dealers who sold to addicts in the housing development. STEVENSON regularly supplied heroin to at least seven lower-level distributors working in shifts at his direction. STEVENSON’s heroin was packaged in 18–20 gram bundles and physically distributed by another individual whom STEVENSON employed to cut the heroin and mule it to the distributors in the projects.
At the conclusion of the investigation, agents with the DEA conducted searches of STEVENSON’s residences. On December 16, 2009, DEA agents searched STEVENSON’s apartment at 3648 Loyola Drive in Kenner and found 500.9 grams of heroin and 281.4 grams of cocaine hydrochloride and drug trafficking paraphernalia. Agents also found $77,900.00 in cash and two firearms. At the search of STEVENSON’s New Orleans residence at 1328 Jackson Avenue, agents found 229.9 grams of heroin and 41.7 grams of cocaine hydrochloride along with drug trafficking paraphernalia and $987.00 in cash. As part of his plea, STEVESON admitted that he distributed or that it was reasonably foreseeable to him that his co-conspirators distributed at least 3 kilograms but not more than 10 kilograms of heroin and at least 500 grams but not more than 2 kilograms of cocaine hydrochloride.
The case was investigated by DEA in collaboration with the Gulf Coast High Intensity Drug Trafficking Task Force (HIDTA) and the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is an important program which targets the most significant drug trafficking organizations within the United States, as well as those outside of the United States borders that impact drug trafficking within the United States. The HIDTA Task Force is led by DEA and includes a team of dedicated investigators from the New Orleans Police Department and the Bureau of Alcohol Tobacco and Firearms.
Also assisting in the enforcement operations were the Louisiana State Police, Jefferson Parish Sheriff’s Office, Kenner Police Department, St. Tammany Parish Sheriff’s Office, and the United States Internal Revenue Service.
New Orleans Man, Hoxie Marcelin, Sentenced for Narcotics ViolationRead the Press Release
HOXIE MARCELIN, age 39, a resident of New Orleans, Louisiana, was sentenced today in federal court by U. S. District Judge Martin L.C. Feldman to 115 months in federal prison for possessing with the intent to distribute 28 grams or more of crack cocaine, announced U. S. Attorney Dana J. Boente. This 115 month sentence represented the top of the recommended sentencing guidelines. In addition to the term of imprisonment, Judge Feldman ordered that MARCELIN be placed on 4 years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release.
According to court documents, the New Orleans Police Department (NOPD) received information that illegal drugs were being sold from a residence located at 2312 First Street in
New Orleans. NOPD officers were advised that a female, approximately 30 years of age, was selling crack cocaine from the front door of the residence. After receiving this information, officers conducted a “controlled buy” of crack cocaine from the First Street address.After the controlled buy, officers obtained a search warrant for the residence. Prior to execution of the search warrant, officers conducted surveillance and observed the female, and a male, later identified as HOXIE MARCELIN, exit from the residence and depart in separate vehicles. Shortly thereafter, officers conducted a stop of each vehicle. Officers found 31 individually wrapped pieces of crack cocaine in MARCELIN’s rear pocket along with $230.00 in cash. MARCELIN also had a set of keys to the First Street residence.
Officers then returned and conducted a search of the First Street residence. Officers found a knotted plastic bag containing slabs and pieces of crack cocaine inside a coffee maker along with razor blades and plastic sandwich baggies. Additionally, there were pieces of mail and personal items belonging to MARCELIN inside the residence.
This case was investigated by Special Agents of the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the New Orleans Police Department (NOPD) and was prosecuted by Assistant United States Attorney Rick Veters of the Drug Unit.
New Jersey Doctor Faces New Charges He Took Kickbacks, Failed to File TaxesRead the Press Release
NEWARK, N.J. – A federal grand jury returned an indictment today against a Livingston, N.J., physician with medical practices in Verona and East Orange, N.J., for allegedly conspiring to receive thousands of dollars in cash kickbacks in exchange for referrals and for failing to file tax returns on nearly $1 million in income, U.S. Attorney Paul J. Fishman announced.
Yash Khanna, 71, a family physician and the owner and operator of Family Medicine & Pediatrics, LLC, in East Orange, and West Essex Medical Group, PA, in Verona, is charged in the six-count superseding indictment with one count of conspiracy to violate the federal health care Anti-Kickback Statute, two separate counts alleging substantive violations of the Anti-Kickback Statute and three counts of willfully failing to file a federal tax return.
Khanna was originally arrested on a complaint in December 2011 and indicted in May 2012 on one count of violating the Anti-Kickback Statute in relation to a two-year scheme to receive cash kickbacks in exchange for his diagnostic testing referrals to Orange, N.J.-based Orange Community MRI. The new charges allege a conspiracy lasting at least three years and that he failed to file tax returns for approximately $1 million in income – including the kickback income – from 2008 through 2010.
According to the superseding indictment:
From at least as early as 2009 through December 2011, Khanna conspired with Orange MRI to solicit and receive cash kickbacks from the facility in return for referring patients for diagnostic tests such as MRIs and CAT scans. Khanna and Orange MRI representatives negotiated the value of kickbacks that Orange MRI would pay him per test he referred, and they were paid for a period of at least three years.
Specifically, Khanna and Orange MRI’s executive director agreed Khanna would be paid $50 for every MRI referral of a Medicare or Medicaid patient and $75 for every MRI referral of a patient with private health insurance.
Khanna also failed to file federal tax returns for 2008, 2009, and 2010, even though he earned considerable income – including illegal income – during that time period: approximately $381,000 in 2008, $400,000 in 2009 and $214,000 in 2010.
The conspiracy and kickback charges each carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the loss caused by the offense. The tax charges each carry a maximum potential penalty of a year in prison and a $100,000 fine, or twice the loss caused by the offense.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell, and IRS-Criminal investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Scott B. McBride and Deputy Chief Joseph G. Mack of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
13-309
Defense counsel: Christopher L. Patella Esq.; Bayonne, N.J.
Khanna Superseding Indictment
Michigan Physical Therapist Assistant/home Health Agency Owner <br /> Pleads Guilty for Role in Medicare Fraud SchemeRead the Press Release
A greater Detroit-area physical therapist assistant – who was also an owner of a home health agency and a patient recruiter – pleaded guilty today for his role in a $22 million home health care fraud scheme.
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; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the Chicago Regional Office of the U.S. Department of Health and Human Services’s Office of Inspector General (HHS-OIG) made the announcement.
Syed Shah, 51, of West Bloomfield, Mich., pleaded guilty before U.S. District Judge Bernard A. Friedman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. At sentencing, scheduled for Nov. 19, 2013, Shah faces a maximum penalty of 10 years in prison.
According to information contained in plea documents, Shah, a licensed physical therapist assistant, admitted that beginning in or around October 2008 and continuing through approximately September 2012, he conspired with others to commit health care fraud by billing Medicare for home health care services that were not actually rendered and/or not medically necessary. Shah admitted that he began working in approximately October 2008 for Prestige Home Health Services, Inc., a home health agency located in Troy, Mich., owned by alleged co-conspirators. His co-conspirators at Prestige paid him kickbacks in exchange for his obtaining the information of Medicare beneficiaries, which the co-conspirators then used to bill Medicare for services that were not provided and/or were not medically necessary. Shah and his co-conspirators then created fictitious therapy files appearing to document physical therapy services provided to Medicare beneficiaries, when in fact no such services had been provided and/or were not medically necessary. Shah admitted that his role in creating the fictitious therapy files was to sign documents and progress notes indicating he had provided physical therapy services to particular Medicare beneficiaries, when in fact he had not. Shah admitted to knowing that the documents he falsified were used to support false claims billed to Medicare by his co-conspirators at Prestige.
In his plea, Shah also acknowledged that in approximately August 2009, he became an owner of Royal Home Health Care, Inc., a home health agency located in Troy, Mich., along with other co-conspirators. He and his co-conspirators at Royal billed Medicare for home health visits that never occurred and were not medically necessary. Shah and his co-conspirators paid kickbacks to Shah and other patient recruiters in exchange for Medicare beneficiary information, which was then used to bill Medicare for services that were not provided and/or were not medically necessary. Shah admitted that he and his co-conspirators created fictitious therapy files, reflecting services that had not been provided and/or were not medically necessary. He knew the documents he falsified would be used to support false claims by Royal to Medicare for home health services.
Shah submitted or caused the submission of claims to Medicare for services that were not medically necessary and/or not provided, which in turn caused Medicare to pay approximately $5,925,843. According to the indictment, two additional home health agencies were involved in the alleged conspiracy. In total, the four home health agencies at the center of the indictment received more than $22 million from the Medicare program.
This case was investigated by the FBI, HHS-OIG and IRS Criminal Investigation, brought as part of the Medicare Fraud Strike Force, and supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. It is being prosecuted by Trial Attorney Niall M. O’Donnell of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.Mescalero Apache Man Sentenced to Thirty-Seven Months in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Gary Raymond Ahidley, Jr., 28, a member and resident of the Mescalero Apache Nation, was sentenced this morning in Las Cruces federal court to 37 months in prison followed by two years of supervised release for being a felon in possession of a firearm. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Ahidley pleaded guilty on April 11, 2013, to unlawfully possessing a firearm in Nov. 2010, in Otero County, N.M. At the time, Ahidley was prohibited from possessing firearms or ammunition because he previously had been convicted on federal assault charges in Feb. 2007 and ordered to serve a 41 month prison sentence.
During his plea hearing, Ahidley admitted possessing a Luger 9 mm handgun in Nov. 2010. Court records reflect that BIA agents learned about the firearm in Dec. 2010 from a Mescalero woman who reported that Ahidley had assaulted her on Nov. 30, 2010. Based on information provided by the victim, the BIA agents were able to retrieve the weapon from a residence on the Mescalero Apache Reservation.
This case was investigated by the Mescalero Agency of the BIA Office of Justice Services and was prosecuted by Assistant U.S. Attorneys Mick I.R. Gutierrez and Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
Member of Violent Jewelry Theft Ring SentencedRead the Press Release
NEWPORT NEWS, Va. – Jose Rivero-Garcia, 53, from Colombia, was sentenced today to thirty-seven months in prison for his participation in a violent and highly sophisticated jewelry theft ring that operated out of Richmond, Va.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division made the announcement following sentencing by District Court Judge Arenda L. Wright Allen.
According to court documents, co-defendant Alexander Cuadros-Garcia, 37, from Colombia, led the organized criminal group that stole more than $4.6 million in jewelry from victims in Virginia and at least four other states, including New York, New Jersey, North Carolina, and Maryland. In March 2012, Cuadros-Garcia and Rivero-Garcia were charged along with six other members of the Richmond-based ring that regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home.
In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise. In addition, the robbers would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension. After a successful robbery, members of the ring would travel to New York to sell the merchandise to businessmen, who coordinated re-selling the stolen property or melting it down for future use.
Co-defendants Cuadros-Garcia, Leonardo Ortiz, Raul Antonio Escobar-Martinez, Luis Carlos Muchado, William Leandro Herrera-Bohorquez, Lucesita Argueta, and Juanita Diaz previously pleaded guilty for their roles in the theft ring. Escobar-Martinez and Herrera-Bohorquez were sentenced on March 7 and March 14, 2013, respectively, to serve 87 months in prison.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.
Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia and Trial Attorney Jerome M. Maiatico of the Criminal Division’s Organized Crime and Gang Section 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.Mary Agnes Leider Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 24, 2013, before U.S. District Judge Donald W. Molloy, MARY AGNES LEIDER, a 25-year-old resident of Crow Agency and an enrolled member of the Crow Tribe of Indians, pled guilty to second degree murder. Sentencing has been set for October 22, 2013. She is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorneys Jessica T. Fehr and Lori Harper Suek, the government stated it would have proved at trial the following:
On December 3, 2012, at approximately 4:06 a.m., 911 operators from the Big Horn County Sheriff's Office began receiving phone calls that they identified as coming from the area of mile marker 11 on Highway 313, south of Hardin. Operators dispatched law enforcement and an ambulance in response.
When they arrived at the scene, law enforcement found LEIDER and her brother, A.L., sitting off to the side of the road, crying uncontrollably. LEIDER told law enforcement that her baby was "gone", and had been hit by a vehicle. As additional law enforcement officers arrived, there was another 911 call that dispatched additional law enforcement to mile marker 19, Highway 313, to respond to another 911 emergency call regarding a deceased 3-year-old child. Upon arrival at the scene, law enforcement were met by G.D. and her son, W.L. G.D. is the mother of LEIDER, A.L., and W.L. G.D. took an officer to her car, where the officer found a 3-year-old female. The child was examined and appeared to already be deceased. The child was identified as LEIDER's daughter.
Later on that day, law enforcement interviewed G.D. She advised that her daughter, LEIDER, and her two sons had been out partying during the evening of December 2, 2012, and had taken the victim with them. G.D. reported that she had repeatedly called and text-messaged her children in order to have LEIDER come home with the victim, but LEIDER refused. Early in the morning hours of December 3, 2012, G.D. reported that she left to find LEIDER and the victim, and was traveling towards Hardin. As she was traveling north on Highway 313, she saw LEIDER's pickup traveling towards her. Both vehicles stopped, and G.D. saw that LEIDER's pickup was being driven by W.L. W.L. told Ms. Denny that something was wrong with the victim - LEIDER's three-year-old daughter. G.D. saw the victim in the back seat, and realized she was not breathing and not responsive. W.L. told G.D. that LEIDER had thrown the victim from the pickup. When G.D. picked the victim up, she saw blood coming from the back of her head. She called an ambulance and put the victim in her car.
W.L. was interviewed by law enforcement and reported that he was driving LEIDER's pickup early in the morning on December 3, 2012. W.L. reported that LEIDER was seated in the front passenger's seat, with the victim on her lap. At the time, the victim was quiet, but awake. While they were driving south towards St. Xavier, LEIDER opened the front passenger door with her right hand, and threw the victim out of the moving pickup. W.L. and the reconstructionist from the Montana Highway Patrol estimated the truck was traveling between 45 and 51 miles per hour at the time the victim was thrown from the truck. W.L. stopped as fast as he could, and threw LEIDER out of the truck with A.L. W.L. went back down the road behind the truck to where the victim was lying in the roadway. W.L. reported that he knew she was dead, but carried her back to the truck and placed her in the back seat. He began driving towards home, leaving LEIDER and his brother A.L. by mile marker 11 where they were ultimately found by law enforcement a short time later.
Following the arrival of law enforcement at the scene, LEIDER was taken to Hardin Memorial Hospital to have her blood drawn, and for treatment for abrasions to her face. Her blood alcohol level was found to be over a .24 when analyzed by the FBI Laboratory. While there, she alternated between saying, "I killed my baby" and claiming that the group had a car accident and that was how the victim had died. When questioned by law enforcement, LEIDER admitted that she had been driving around and drinking with her brothers, but claimed that she hit her face on the dashboard and could not recall how the victim was killed. LEIDER's pickup was impounded and towed to a law enforcement facility for analysis. The right front passenger door was analyzed by a professional mechanic and it was found that the door functioned properly.
An autopsy was conducted of the victim. Following the autopsy, the victim's probable cause of death was determined to be severe head injuries caused when thrown from a moving motor vehicle.
The crime occurred within the exterior boundaries of the Crow Indian Reservation.
LEIDER faces possible penalties of life in prison, a $250,000 fine and 5 years supervised release.
The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Martin Lee Roman Nose Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 24, 2013, before U.S. District Judge Donald W. Molloy, MARTIN LEE ROMAN NOSE, a 23-year-old resident of Ashland and an enrolled member of the Northern Cheyenne Tribe, was sentenced to a term of:
Prison: 24 months
Special Assessment: $100
Restitution: $231
Supervised Release: 7 years
ROMAN NOSE was sentenced in connection with his guilty plea to sexual abuse of a minor.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 27, 2011, ROMAN NOSE and his girlfriend came across the 15-year-old victim and took her to their apartment. All three were drinking during the walk to the apartment and at the apartment. At some point, ROMAN NOSE and his girlfriend started to fight. ROMAN NOSE eventually locked her out of the apartment.
ROMAN NOSE and the victim were left alone in the apartment. ROMAN NOSE followed the victim into a bedroom, drank with her, and then sexually abused her.
ROMAN NOSE was interviewed twice. He initially denied sexually abusing the victim. However later he admitted that he did, but recanted again saying that he only made the admission because he believed it was what the agents wanted him to say.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ROMAN NOSE will likely serve all of the time imposed by the court. In the federal system, ROMAN NOSE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Man Pleads Guilty to Attempting to Destroy Las Vegas Children’s Autism Facility by ArsonRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man has pleaded guilty to maliciously attempting to destroy a local children’s autism learning facility by fire and explosive devices, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Samuel Powers, 24, pleaded guilty on Tuesday, July 23, 2013, before U.S. District Judge Gloria M. Navarro to one count of arson of property and one count of possession of unregistered firearms, specifically Molotov cocktails. Sentencing is scheduled for Nov. 1, 2013, at 10:30 a.m. Powers, who is in federal custody on the charges, faces five to 20 years in prison on the arson charge and not more than 10 years in prison on the firearms charge, as well as a fine of up to $250,000 on each count. The government and the defendant agreed to a binding recommendation of a sentence of 10 years in prison.
According to the plea agreement, on April 15, 2013, Powers knowingly and maliciously damaged a building which housed several commercial businesses, including Sport Social, an autism facility, located at 7055 Windy Street in Las Vegas. Powers forcibly entered Sport Social with three Molotov cocktails and a gasoline container, and poured gasoline and set multiple fires inside the business. The fires caused at least $50,000 in damage to the structure and its contents. Powers also possessed two more unignited Molotov cocktails inside his vehicle at the scene of the fire. When Powers set the fires, he knew or had cause to believe that persons were inside a neighboring business, thereby creating a substantial risk of death or serious bodily injury to those persons.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clark County Fire Department, and the Las Vegas Metropolitan Police Department, and was prosecuted by Assistant U.S. Attorney Christina M. Brown.Lebanon Sex Offender Indicted for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lebanon, Mo., man who is a registered sex offender was indicted by a federal grand jury for receiving child pornography over the Internet.
Wayne Harlan Files, 76, of Lebanon, was charged in an indictment returned by a federal grand jury in Springfield on Tuesday, July 23, 2013.
The federal indictment alleges that Files received child pornography over the Internet between Nov. 1, 2011, and Feb. 1, 2012. Files is a registered sex offender due to a 1993 conviction for forcible sodomy. Under federal statutes, a conviction would therefore result in a mandatory minimum sentence of 15 years in federal prison without parole, up to 40 years in federal prison without parole.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Homeland Security Investigations and the Lebanon, Mo., Police Department.
Project Safe Childhood
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 tab "resources."Las Cruces Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – William Edward Jenne, 23, of Las Cruces, N.M., pleaded guilty this morning in Las Cruces federal court to possession of a visual depiction of minors engaged in sexually explicit conduct.
Jenne was arrested by Homeland Security Investigations (HSI) agents on Dec. 4, 2012, on a criminal complaint alleging federal child pornography charges. According to court filings, the investigation leading to Jenne’s arrest was initiated in mid-Nov. 2012, when an officer of the Las Cruces Police Department (LCPD) who was working online in an undercover capacity connected with an IP Address that was sharing files that appeared to contain child pornography. After determining that the IP Address was subscribed to Jenne, HSI and LCPD executed a search warrant at Jenne’s residence and seized computers and computer-related media. During an interview, Jenne admitted that the computers and computer-related media contained child pornography.
During today’s hearing, Jenne pleaded guilty to a felony information charging him with possession of child pornography in Dona Ana County, N.M. Jenne admitted that from Aug. 2012 to Dec. 2012, he knowingly possessed child pornography.
Jenne was remanded into the custody of the U.S. Marshals Service after entering his guilty plea and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Jenne faces a maximum ten years in federal prison followed by a term of supervised release to be determined by the court. Jenne also will be required to register as a sex offender after he completes his prison sentence.
This case was investigated by the Las Cruces office of HSI and the LCPD and is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Laguna Pueblo Man Pleads Guilty to Federal Child Sex Abuse ChargeRead the Press Release
ALBUQUERQUE – Jason Mooney, 36, a member and resident of Laguna Pueblo pleaded guilty this morning to an aggravated sexual abuse charge. Under the terms of his plea agreement, Mooney will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court. Mooney also will be required to register as a sex offender.
Mooney’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Chief Michelle F. Ray of the Pueblo of Laguna Police Department.
Mooney was arrested on June 12, 2008, based on a criminal complaint alleging that he sexually abused a child between the age of 12 and 16 years. In July 2008, Mooney was indicted on aggravated sexual abuse charges. Proceedings in the case were delayed by competency proceedings.
In his plea agreement, Mooney admitted that sexually abusing a minor child on a date between July 2003 and July 2004. He further admitted that his unlawful conduct occurred on Laguna Pueblo.
Mooney has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Police Department, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
Lafayette Businessman Buswell Pleads Guilty to Charges in Two Separate CasesRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Richard Joseph Buswell, 44, of Lafayette, pleaded guilty to charges in two separate cases related to his involvement in two separate business ventures.
BUSWELL PLEADS GUILTY TO DRUG DISTRIBUTION CHARGE IN
CURIOUS GOODS CASEBuswell pleaded guilty Friday before U.S. Magistrate Judge Patrick J. Hanna to conspiracy to distribute a controlled substance analogue. Buswell faces 20 years in prison, three years of supervised release, a $1 million fine, and restitution. A sentencing date of May 16, 2014 was set.
Co-defendants Boyd Barrow, 44, of Canton, Ga.; Thomas William Malone Jr., 45, of Roswell, Ga.; and Drew T. Green, 38, of Roswell, Ga.; pleaded guilty in September 2012 to Count One of the Superceding Indictment, which is to conspiracy to distribute a controlled substance analogue. Joshua Espinoza, 49, of Marietta, Ga., pleaded guilty to Count One of the Superceding Indictment in November 2012. The remaining co-defendants who did not plead guilty are Alexander Derrick Reece, 40, of Gainesville, Fla.; Daniel James Stanford, 54, of Lafayette, La.; Daniel Paul Francis, 42, of Dawsonville, Ga.; and Barry L. Domingue, 52, of Carencro, La. Trial date has been set for March 31, 2014.
The DEA, FBI, Homeland Security Investigations, the IRS, and the Louisiana State Police conducted the investigation. Assistant U.S. Attorneys John Luke Walker and J. Collin Sims are prosecuting the case.
BUSWELL PLEADS GUILTY TO CHARGE IN SCHEME THAT COST INVESTORS MILLIONS
Buswell also pleaded guilty today before U.S. District Judge Richard T. Haik to a securities fraud case in which he orchestrated an investment scheme that the government contends cost clients $8 million. Buswell faces up to 20 years in prison, three years of supervised release, a $250,000 fine, and restitution for the wire fraud count. A sentencing date was not set.
The FBI conducted the investigation. Assistant U.S. Attorneys Kelly P. Uebinger and Howard C. Parker are prosecuting the case.
Kyle Woman Sentenced for Possessing Vodka on the Pine Ridge Indian ReservationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, woman convicted of intoxicants possessed unlawfully in Indian country was sentenced on July 24, 2013, by U.S. Magistrate Judge Veronica L. Duffy.
Donna Janis, age 51, was sentenced to one year of probation and ordered to pay $25 to the Federal Crime Victims Fund.
Janis was indicted by a federal grand jury on December 18, 2012, for intoxicants possessed unlawfully in Indian country. Janis was arrested on November 7, 2012, on the Pine Ridge Indian Reservation for assisting two other individuals in transporting 72 bottles of vodka onto the reservation. Janis pled guilty to the charge on May 15, 2013.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.Kinloch, Missouri Fire Protection District Chief Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO – The Fire Chief for the Kinloch Fire Protection District, Darran Kelley, pled guilty to charges involving his unauthorized use of more than $140,000 of District funds from January 2007 to January 11, 2013. He also pled guilty to making a false statement relative to his receipt of Social Security disability payments, which resulted in overpayments to him of approximately $120,000. Kelley has been the District Fire Chief since 2002.
According to court documents, the Kinloch Fire Protection District maintained a District banking account for the receipt and disbursement of District funds. From January 2007 through January 2013, the District received approximately $160,361 in tax revenues from St. Louis County, Missouri. The City of Kinloch also distributed city funds to the District’s bank account for payroll and operations of the District. It was a part of Kelley’s scheme that on one or more occasions he made unauthorized cash withdrawals from the District’s bank account for his own personal use, including for the purchase of various personal items and for gambling at several casinos in the St. Louis area, that were unrelated to the legitimate operations of the District. It was a further part of Kelley’s scheme that on one or more occasions he made unauthorized transfers of funds from the District’s bank account to pay for charges on his own personal Mastercard credit card, which were unrelated to the legitimate operations of the District.
In June 2010, the Federal Emergency Management Agency (FEMA) awarded the District a grant of $237,500 to cover 95% of the $250,000 total cost of a fire engine, based upon an application submitted by Kelley. The City of Kinloch also distributed $15,000 of city funds to the District to cover the District's responsibility to pay 5% of the cost of the fire engine. Some of these funds were later used by Kelley to purchase personal items and for gambling at several casinos. During April 2011, it was widely reported by the St. Louis area media that the District was unable to pay the insurance premium due on the newly purchased fire engine. The premium then due was reported to be approximately $2,322. Numerous private citizens saw the media reports and made donations to the District to pay for the insurance premium, which donations totaled well in excess of the premium then due. Kelley paid the insurer $2,322, and the remaining donated funds were retained in the District's bank account and later used by Kelley to purchase personal items and for gambling at several area casinos. While Kelley engaged in the unauthorized use of District funds, there were substantial outstanding bills from AmerenUE for electric service, American Water for water service, to AT&T for telephone and communications services and to North Central County Fire Alarm System for dispatch services, radios and pagers. Many of these bills went unpaid as a result of his alleged criminal conduct and some of the necessary services were reduced or cut off due to non-payment.
Beginning on August 15, 2000, Kelley began receiving monthly disability benefit payments through the Social Security Administration pursuant to his application for benefits relative to a personal medical condition. Following his initial application, and in order for the Social Security Administration to determine his continued eligibility for disability benefits, he was required to immediately report any work and income, and to periodically verify his continued disability and report any work on Continuing Disability Review Reports. Kelley failed to truthfully report his work for the Kinloch Fire Protection District, and his income from that work to the Social Security Administration. On July 26, 2011, Kelley made a false statement on his Continuing Disability Review Report by stating that he had not worked since April 1, 2006, the date of his last medical disability decision, when in fact, he had been working as the paid Chief of the Kinloch Fire Protection District during that period of time. Kelley was paid a salary of approximately $640 every two weeks until December, 2011.
DARRAN KELLEY, Ferguson, MO, pled guilty to three felony counts of wire fraud, one felony count of federal program theft and one felony count of making false statements, before United States District Judge Catherine D. Perry. Sentencing has been set for October 16, 2013.
Each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; federal program theft carries a maximum of 10 years prison and/or fines up to $250,000; and false statement carries a maximum of five years prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, the St. Louis County Police Department and Social Security Administration-Office of Inspector General. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.Jury Verdict Imposes Death Penalty on Ronell WilsonRead the Press Release
Following a five-week sentencing proceeding, a federal jury in Brooklyn today returned a verdict imposing the death penalty on Ronell Wilson for the murders of two New York City Police Department Detectives, Rodney J. Andrews and James Nemorin.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Joseph Anarumo, Jr., Special Agent-in-Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in New York, Raymond W. Kelly, Commissioner, New York City Police Department (NYPD), and Richmond County District Attorney Daniel M. Donovan, Jr.
In March of 2003, the NYPD Firearms Investigation Unit began an investigation of the Stapleton Crew (the “Crew”), a violent criminal enterprise whose members terrorized the borough of Staten Island for several years. On March 3, 2003, Detective Nemorin, posing as an international gun trafficker, purchased a firearm from a member of the Crew. Several days later, on March 10, 2003, Detective Nemorin and Detective Andrews, who also was working in an undercover capacity, arranged to purchase another gun from members of the Crew. On this occasion, however, members of the Stapleton Crew, including Wilson, decided to rob the officers rather than sell them another gun. In furtherance of this plan, Wilson and an associate met with the undercover officers in the vicinity of the Stapleton Houses in Staten Island. Wilson instructed the officers to drive him to a second location in Staten Island, where he received a .44 caliber revolver from other Crew associates. Later, Wilson, who had detected that the undercover detectives were police officers, used that revolver to murder both detectives, execution-style, and steal their car. When Wilson was apprehended by local police several days later, lyrics to a rap song boasting about the murders were found in his pocket.
In 2006, a federal jury found Wilson guilty of committing numerous crimes in connection with the Crew, including the murders of Detectives Nemorin and Andrews, and imposed the death penalty. In 2011, the United States Court of Appeals for the Second Circuit affirmed Wilson’s conviction, but vacated the death sentence and remanded the case for re-sentencing. As a result of today’s verdict, Wilson will receive the death penalty.
“Ten years ago, on a deserted Staten Island Street, Ronell Wilson ruthlessly executed Detectives Andrews and Nemorin, two husbands, two fathers, two heroes. Their deaths were a tragedy, not just for their families, but for all of New York City. Today, a jury of his peers looked at Ronell Wilson, everything he did and all that he is, and rendered justice. We hope that the verdict brings some measure of closure to the victims’ families, the men and women of the New York City Police Department, and to the communities Detectives Nemorin and Andrews served so well,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the ATF, the NYPD and Richmond County District Attorney’s Office for their assistance in this case.
The government’s case was prosecuted by Assistant United States Attorneys James G. McGovern and Celia Cohen.
The Defendant
RONELL WILSON
Age: 31Jury Finds Former Chairman of the Mashantucket Pequot Tribal Nation Guilty of EmbezzlementRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Peter Y. Kim, Special Agent in Charge, U.S. Department of the Interior, Office of Inspector General, Eastern Region, today announced that a federal jury in New Haven has found MICHAEL THOMAS, 45, the former Chairman of the Mashantucket Pequot Tribal Council, guilty of embezzling from the Mashantucket Pequot Tribal Nation. The trial before United States District Judge Janet Bond Arterton began on July 22 and the jury returned its verdict after deliberating for less than two hours.
“Mr. Thomas abused his position as Chairman of the Mashantucket Pequot Tribal Nation by charging over $100,000 in unauthorized personal expenses to the Nation,” stated Acting U.S. Attorney Daly. “These fraudulent expenses continued even after they were discovered and he was told to stop. The U.S. Attorney’s Office is committed to prosecuting corrupt officials at all levels of government – federal, state, local and tribal. I thank the FBI and the Department of the Interior’s Office of Inspector General for their work in uncovering this misuse of federal funds.”
“Mr. Thomas’ systematic theft of tribal and federal monies to support a lifestyle of excess is egregious,” stated FBI Special Agent in Charge Mertz. “Today’s verdict underscores the importance of investigating and prosecuting the blatant misappropriation of federal dollars, especially during these austere fiscal times.”
“This case is a reflection of the Inspector General’s continued involvement in Indian Country and our dedication to insure the integrity of all U.S. Department of the Interior funded programs,” stated DOI-OIG Special Agent in Charge Kim.
According to the evidence at trial, between October 2007 and April 2009, THOMAS used an American Express card that was issued to him by the Mashantucket Pequot Tribal Nation (“MPTN”) to be used for official MPTN government purposes to make more than $100,000 in unauthorized personal expenses. THOMAS used the card to pay for monthly satellite television service for his home, to pay for satellite radio service for his vehicle, to purchase personal computers, to pay for mobile phone service for other individuals, and to pay for a car service to transport his mother to kidney dialysis treatments. THOMAS knew that the expenses were personal, and that his use of the credit card was in violation of a Tribal Council Resolution.
The jury found THOMAS guilty of one count of theft from an Indian tribal organization and two counts of theft from an Indian tribal government receiving federal funds.
Judge Arterton has scheduled sentencing for October 22, 2013, at which time THOMAS faces a maximum term of imprisonment of 25 years and a fine of up to $750,000. THOMAS also faces forfeiture of $102,393.34 and two personal computers.
This matter is being investigated by the Federal Bureau of Investigation and United States Department of Interior – Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Christopher Mattei and Douglas Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Jose Roberto Pacheco-alvarado Pleads Guilty to Illegal Re-entryRead the Press Release
JOSE ROBERTO PACHECO-ALVARADO, age 23, a citizen of Honduras, pled guilty today in federal court before U. S. District Judge Kurt D. Engelhardt to a one-count indictment charging him with illegal re-entry of a removed alien, announced U.S. Attorney Dana J. Boente.
According to court documents, PACHECO admitted to being an alien who had previously been removed from the United States, was found in the Eastern District of Louisiana, on April 29, 2013, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The indictment charging PACHECO with illegal re-entry also included a notice of sentencing enhancement based on his prior felony conviction. With the enhancement, the offense carries a maximum statutory penalty of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release following any term of imprisonment. Sentencing for the defendant is scheduled for October 16, 2013 at 9:00 A.M.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE). The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Factual Basis )
Joplin Sex Offender Indicted for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man who is a registered sex offender has been indicted by a federal grand jury for receiving and distributing child pornography over the Internet.
Donnie Ray Sumner, 43, of Joplin, was charged in an indictment returned by a federal grand jury in Springfield on Tuesday, July 23, 2013.
The federal indictment alleges that Sumner received and distributed child pornography over the Internet between July 1, 2012, and Jan. 21, 2013. The indictment also contains a forfeiture allegation, which would require Sumner to forfeit to the government any property used to commit the alleged offense, including a desktop computer and a laptop computer.
Sumner is a prior sex offender with a 2001 conviction for possessing child pornography. Under federal statutes, a conviction would therefore result in a mandatory minimum sentence of 15 years in federal prison without parole, up to 40 years in federal prison without parole.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Homeland Security Investigations and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
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 tab "resources."Jasper Wade Half Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 24, 2013, before Senior U.S. District Judge Jack D. Shanstrom, JASPER WADE HALF, a 37-year-old resident of Crow Agency and an enrolled member of the Crow Tribe of Indians, was sentenced to a term of:
Prison: 15 months
Special Assessment: $100
Supervised Release: 3 years
HALF was sentenced in connection with his guilty plea to assault with a dangerous weapon.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On May 20, 2011, HALF and the victim were drinking alcohol in Hardin. They left together and were on the off-ramp outside Hardin, when they began to argue. They pulled over and began to fist-fight. The victim beat up HALF. HALF got into his car and drove away across the interstate. He then turned around and returned to the exit. When HALF was on the on ramp, he stopped, pulled out a .22 caliber rifle from the trunk, and shot at the victim. HALF individually loaded the second round and fired again.
Shortly after HALF shot the gun, he was arrested by Big Horn County Sheriff's deputies. HALF initially stated that he had aimed the gun "in the air." Later, HALF reconsidered his previous statement and explained that he had pointed the gun at the victim and then up in the air.
A witness saw the incident and explained that, to her, it looked like HALF was pointing the gun at and shooting at the victim.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HALF will likely serve all of the time imposed by the court. In the federal system, HALF does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Idaho Man Convicted of Obstruction of Justice in Key West Marine Life CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service, Miami Field Office, announced that Peter C. Covino, IV, 20, of Eagle, Idaho, was convicted today after a jury trial, for knowingly and corruptly attempting to persuade another to alter, destroy, mutilate, or conceal an object with the intent to impair the object’s integrity and availability for use in an official proceeding, in violation of Title 18, United States Code, Sections 1512(b)(2)(B) and 2.
According to testimony presented in Court, and documents in the case file, in February 2013 Covino made two phone calls to a business in the Florida Keys involved in the wholesale marine life trade. His purpose in doing so was in part to direct one of the business owners “to erase all the text messages, and emails, or any other evidence” linking the Florida business to Ammon Covino, the uncle of defendant Peter Covino.
In a separate criminal proceeding, United States v. Ammon Covino, et al., Case No. 12-10020-CR-Martinez, Ammon Covino had been arrested on February 21, 2013, in connection with allegations that he engaged in conspiracy and various violations of the federal Lacey Act by purchasing and transporting wildlife from the Florida Keys to Idaho for exhibit at the Idaho Aquarium in Boise, Idaho. According to the charges, the wildlife included spotted eagle rays and lemon sharks, for which the required Florida licenses and permits were never acquired. Testimony established at trial that Ammon Covino had made the arrangements for the illegal purchases by emails, text messages, and telephone calls.
Prior to the two calls made by defendant Peter Covino on February 21, 2013, and before the arrest and initial court appearance of Ammon Covino, Peter Covino had never been involved with the acquisition of wildlife from Florida and had no prior direct dealings with the Florida-based supplier. Unknown to Peter Covino, the business owner was cooperating with federal authorities and his phone conversations were recorded. During his trial testimony, Peter Covino admitted that he made the calls at the direction of Ammon Covino.
Peter Covino faces a possible sentence of up to 20 years imprisonment, a fine of up to $250,000, and a term of supervised release of up to three years. United States District Judge Jose E. Martinez, who presided over the trial, set sentencing in this matter for September 24, 2013 at 1:00 p.m. in the Key West Courthouse.
Mr. Ferrer commended the investigative efforts of NOAA Office for Law Enforcement and the U.S. Fish & Wildlife Service, Office of Law Enforcement. Mr. Ferrer also thanked the Officers of the Idaho Department of Fish & Game. This case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Hobbs Man Sentenced to Ten Years in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Donald Keith Colvin, 40, of Hobbs, N.M., was sentenced this afternoon in Las Cruces federal court to 121 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction. Colvin’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, 5th Judicial District Attorney Janetta B. Hicks, Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Field Division, and Commander Michael Wilson of the Lea County HIDTA Drug Task Force.
Colvin was arrested on Oct. 9, 2012, on a criminal complaint alleging that he unlawfully possessed firearms in Lea County, N.M., on Sept. 14, 2012. Colvin was prohibited from possessing firearms or ammunition because he previously had been convicted of involuntary manslaughter and negligent use of a deadly weapon. On Jan. 16, 2013, Colvin entered a guilty plea to a felony information charging him with possession of methamphetamine with intent to distribute and was remanded into federal custody.
According to court filings, on Sept. 14, 2012, the Lea County HIDTA Drug Task Force executed a state search warrant at Colvin’s residence in Hobbs. During the execution of the search warrant, the officers seized 59.91 net grams of methamphetamine which were found in Colvin’s bedroom and in a safe in his bathroom. The officers also seized four operational firearms, including a loaded Smith & Wesson .38 special revolver, and a non-operational firearm from Colvin’s bedroom. Colvin was arrested on state charges, which were dismissed after his arrest on federal charges.
“I want to commend all of the hard work of the officers and prosecutors in this case,” said District Attorney Janetta B. Hicks. “It is that kind of cooperation between local law enforcement and our federal partners that make our community safer.”
This case was investigated by the Las Cruces offices of ATF and DEA and the Lea County HIDTA Drug Task Force, with assistance from officers of the Lea County Sheriff’s Department and the Hobbs Police Department, and was prosecuted by Senior Litigation Counsel Terri L. Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County HIDTA Task Force is comprised of officers from the Lea County Sheriff’s Department, Hobbs Police Department, Eunice Police Department, Jal Police Department, Lovington Police Department and Tatum Police Department. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Gadsden Man Convicted of Bank RobberyRead the Press Release
Birmingham – A federal jury on Wednesday convicted a Gadsden man of bank robbery and conspiracy, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The jury convicted MARCUS TYSHUN PORTER, 33, of joining in a conspiracy and acting as a lookout during the July 16, 2008, robbery of the Wachovia Bank in Lenlock, Alabama. Two of Porter’s co-conspirators have already been convicted in the Northern District of Alabama of this robbery and of carjacking. Immediately after robbing the bank, the co-conspirators forced two women at gunpoint to drive them back to Gadsden, where they met up with Porter and split up the proceeds. Previously convicted for this bank robbery were GABRIEL RICE, WILLIS LEACH, and JESSE KEY. U.S. District Judge Abdul K Kallon scheduled Porter’s sentencing for November 7, 2013.
“All of the people responsible for these horrible and violent crimes have finally been brought to justice,” Vance said. “This case is part of a larger investigation involving a string of bank robberies occurring in Gadsden and the surrounding area since 2007. I commend the FBI and the entire Etowah County law enforcement community for their efforts over the past five years to solve these crimes,” she said.
The maximum sentence for these crimes is 25 years in prison and a $250,000 fine.
The FBI investigated the case, and it was prosecuted by Assistant U.S. Attorney L. James Weil Jr. and Special Assistant U.S. Attorney E. Wilson Hunter.
Freeport Man Sentenced to 29 Months in Federal Prison for Wire FraudRead the Press Release
ROCKFORD — A Freeport, Ill. man was sentenced today in federal court for wire fraud. U.S. District Judge Frederick J. Kapala sentenced ANTHONY TAYLOR, 44, to 29 months in federal prison, in addition to 3 years of supervised release following his release from prison, and ordered Taylor to pay restitution of $212,542.44
Taylor pled guilty to the charge on April 15, 2013, admitting that between mid-2010 and January 2012 he defrauded large retail chain stores by fraudulently acquiring tens of thousands of dollars of merchandise and returning the items for cash. In the written plea agreement, Taylor admitted that as part of the scheme he and other individuals created and used counterfeit checks and counterfeit identifications to purchase merchandise from large chain stores such as Wal-Mart and Farm and Fleet located in various states. After Taylor and the others purchased merchandise from those stores, they returned the merchandise to a different store location for a cash refund. Taylor admitted he knew at the time that some of the names and addresses on the checks and identification he used, and some of the bank account information, were fictitious and some were real.
Three other individuals have been charged for their roles in the wire fraud scheme with Taylor:
ANTHONY HARDY, 42, of Rockford, pled guilty on Feb. 19, 2013, to one count of wire fraud and one count of identity theft, and was sentenced on June 4, 2013, to 65 months in prison, 5 years of supervised release following imprisonment, and ordered to pay restitution of $212,542.44.
CAMERON LOVE, 28, of Rockford, pled guilty on Feb. 28, 2013, to one count of wire fraud, and was sentenced on June 28, 2013, to 15 months in prison, 3 years of supervised release following imprisonment, and ordered to pay restitution of $212,542.44.
WILLIAM DORN, 25, also of Rockford, pled guilty on May 30, 2013, to one count of wire fraud. Dorn is scheduled to be sentenced on Sept. 9, 2013 at 2:30 p.m.
The sentencing today was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Pete Zegarac, Postal Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Rockford Police Department and Freeport Police Department assisted in the investigation.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Former Tax Preparers Plead Guilty to Tax FraudRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Brenda Jeffries-Silmon, 55, of Cheektowaga, N.Y., and Marcel Richardson-Redden, 58, of Buffalo, N.Y., pleaded guilty before Chief U.S. District Court Judge William M. Skretny to conspiring to defraud the Internal Revenue Service by preparing false tax returns. the charge carries a maximum penalty of five years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that Jeffries-Silmon and Richardson-Redden owned and operated a tax preparation business called R Services. Between January 2005 and January 2009, the defendants filed approximately 58 tax returns on behalf of clients that contained false information, such as improper filing statuses, false dependent exemptions, false claims to the Earned Income Credit, false charitable contributions, false business expenses, and false child care expenses. The false tax returns were filed with the Internal Revenue Service and the New York State Department of Taxation and Finance and resulted in a loss of tax revenue of $195,980.
The pleas are the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction of Special Agent-In-Charge, Toni M. Weirauch, and with the assistance of the New York State Department of Taxation and Finance, under the direction of Deputy Commissioner Risa Sugarman.Former Priest Pleads Guilty to Distributing and PossessingChild PornographyRead the Press Release
Timothy Murray, 62, of Novi, pleaded guilty to one count of distributing child pornography and one count of possession child pornography, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Acting Special Agent in Charge William Hayes of the Department of Homeland Security (DHS) in Detroit.
According to court records, Murray used peer-to-peer software to trade child pornography with others, including an undercover DHS Homeland Security Investigations (HSI) special agent. A search warrant executed at Murray’s home recovered at least seven different computer devices containing videos and images of child pornography. Murray’s collection included over 650 movies and over 450 images of child pornography. Murray had previously served as a Catholic priest within the Archdiocese of Detroit before being removed from public ministry when substantiated allegations of Murray’s prior sexual abuse of a young boy came to light.
United States Attorney McQuade stated, “With his guilty plea, this defendant acknowledges his continued criminal sexual interest in children. The hands-on sexual abuse that led to his removal from public ministry by the Catholic church had long-lasting effects on the defendant’s prior victim. Similarly, the victims depicted in his extensive collection of child pornography suffered greatly not only at the hands of their abusers, but by those, like the defendant, who collect and continue to view the permanent depictions of their abuse.”
“This case serves as a reminder that child predators often try to portray themselves as trustworthy members of the community and parents everywhere should remain vigilant to potential dangers,” said acting special agent in charge of HSI Detroit William J. Hayes. “HSI and its law enforcement partners will continue to work aggressively to identify, investigate and seek prosecution for the perpetrators of these horrendous crimes.”
Murray will be sentenced on December 4, 2013 at 2pm, by the Honorable Victoria A. Roberts. Under the terms of his plea agreement, Murray faces a sentence of 262-327 months in federal prison.McQuade praised the work of the HSI agents for their professionalism and dedication in their aggressive and thorough investigation of these cases.
Assistant United States Attorney Kevin M. Mulcahy prosecuted this case for the United States.
Former Owner of Louisville Pharmaceutical Company Pleads Guilty to FDA ViolationsRead the Press Release
– Company received more than $2 million in payments from Medicare for misbranded, adulterated and contaminated inhalation medications
LOUISVILLE, Ky. – The former owner of National Respiratory Services, LLC (NRS) and a former minority shareholder have pleaded guilty, in United States District Court, before Magistrate Judge James D. Moyer, to charges of misbranding and altering drugs and the company admitted to committing health care fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Christopher Keegan, age 55, of Lexington, Kentucky, the former owner of NRS, pleaded guilty yesterday to count two, of a federal Information and agreed to a restitution payment of $2,030,343.11, to the Centers for Medicare and Medicaid Services, jointly and severally with co-defendants.
According to the plea agreement, while owner and majority shareholder of NRS, Keegan and others, through NRS, caused compounded medications to be sent to patients, through interstate commerce, which were sub-potent, super-potent, non-sterile, and therefore adulterated and misbranded in violation of the Food Drug & Cosmetic Act. Further, Keegan and others, through NRS, then submitted to Medicare, false and fraudulent billings which indicated that the medications they were providing to patients were non-compounded and FDA-approved when they were not. The total loss of this activity is $2,030,343.11. Compounded medications are not FDA approved, but FDA regulations permit pharmacists to make compounded drugs, including prescription drugs, in limited amounts and under narrow circumstances, for particular patients, and at the direction of a physician when other available drugs cannot be prescribed.
Also, co-defendant James Rives, age 71, of Louisville, Kentucky, a former minority shareholder of NRS, pleaded guilty yesterday to count two of the federal Information and agreed to a restitution payment of $75,996.85. As a result of the plea agreement, the United States will not pursue felony charges of conspiracy to commit health care fraud against Rives for the activity he engaged in during the period of 2006 through 2008 while defendant Rives was associated with NRS.
At sentencing the defendants face a maximum term of one year in prison, a fine, restitution, and a period of supervised release.
In separate Indictments, Johnny Perry, of Mt. Washington, Kentucky, and the former vice-president of NRS, was charged on August 3, 2011, and pleaded guilty to a five count felony Indictment. Perry admitted that between June of 2006 and June of 2008, as vice-president of NRS, she provided compounded medications to patients, but led both Medicare and the patients’ doctors to believe that the pharmaceutical company was providing non-compounded medications. Also, Perry admitted to submitting false and fraudulent claims to Medicare for the cost of FDA-approved, commercially manufactured, prescription inhalation drugs, when they were not. Sentencing is scheduled for August 5, 2013, at 11:00 AM in Louisville, before Chief Judge Joseph H. McKinley Jr.
Former NRS pharmacists Leo Parrino and Linda Schmidt, pleaded guilty to introducing compounded inhalation drugs that bore false and misleading labelling and represented them to be of greater strength and potency than they actually had. Parrino pleaded guilty to the charge on September 8, 2011 and was sentenced by Magistrate Judge Moyer to one year probation and restitution in the amount of $14,098.24 and Schmidt was sentenced to one year probation and restitution in the amount of $20,000.00.
The case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and it was investigated by the Food and Drug Administration Office of Criminal Investigations, Health and Human Services Office of Inspector General, United States Postal Inspection Service, and the Federal Bureau of Investigation.
Former Investment Banker and His Associate <br /> Sentenced for Insider Trading SchemeRead the Press Release
A former San Francisco investment banker and his college friend were sentenced yesterday to 16 months in prison for their roles in an insider trading scheme involving two impending corporate mergers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Melinda Haag of the Northern District of California.
Jauyo Lee, or “Jason Lee,” 29, of Palo Alto, Calif., and Victor Chen, 29, of Sunnyvale, Calif., both pleaded guilty on April 16, 2013, to one count of conspiracy to commit securities fraud and one count of securities fraud.
According to the plea agreements, Lee, who worked as an investment banker in the San Francisco office of Leerink Swann LLC, disclosed inside information to Chen, a friend from college, about two impending mergers involving Leerink clients. Between Aug. 26, 2009, and Sept. 5, 2009, Lee disclosed inside information to Chen about the merger of Leerink’s client, Syneron Medical Ltd., and Candela Corporation, a medical device company publicly traded on the NASDAQ stock market. Chen used the inside information to buy shares of Candela. After the merger was announced, Candela’s stock price increased more than 40 percent and Chen sold his shares for a gain of approximately $62,589.
Between June 1 and June 13 of 2010, Lee also provided Chen with inside information about the impending merger of Somanetics Corporation and a subsidiary of Covidien plc. Leerink was the lead financial advisor to Somanetics, which also was publicly traded on the NASDAQ. Chen used the inside information to buy shares and options of Somanetics. Following the merger announcement, the price of Somanetics stock increased more than 30 percent and Chen ultimately realized a profit of approximately $547,510.
Lee and Chen were charged in a criminal information on March 21, 2013.
The sentence was handed down by U.S. District Judge Richard G. Seeborg of the Northern District of California. Judge Seeborg also sentenced Lee and Chen each to a two-year period of supervised release and ordered that restitution and forfeiture be considered at a subsequent hearing. Chen paid $610,099 in forfeiture prior to sentencing.
This case was investigated by the FBI with substantial assistance from the Chicago Regional Office of the U.S. Securities and Exchange Commission. It is being prosecuted by Assistant U.S. Attorney Robert S. Leach and Trial Attorney Brian R. Young of the Criminal Division's Fraud Section with the assistance of Rayneisha Booth and Mary Mallory.
This prosecution is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Former Investment Banker and His Associate Sentenced to 16 Months in Prison for Insider Trading SchemeRead the Press Release
SAN FRANCISCO - A former San Francisco investment banker and his college friend were sentenced yesterday to 16 months in prison for their roles in an insider trading scheme involving two impending corporate mergers, announced U.S. Attorney Melinda Haag and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Jauyo Lee, aka “Jason Lee,” 29, of Palo Alto, Calif., and Victor Chen, 29, of Sunnyvale, Calif., both pleaded guilty on April 16, 2013, to one count of conspiracy to commit securities fraud and one count of securities fraud.
According to the plea agreements, Lee, who worked as an investment banker in the San Francisco office of Leerink Swann LLC, disclosed inside information to Chen, a friend from college, about two impending mergers involving Leerink clients. Between Aug. 26, 2009, and Sept. 5, 2009, Lee disclosed inside information to Chen about the merger of Leerink’s client, Syneron Medical Ltd., and Candela Corporation, a medical device company publicly traded on the NASDAQ stock market. Chen used the inside information to buy shares of Candela. After the merger was announced, Candela’s stock price increased more than 40 percent and Chen sold his shares for a gain of approximately $62,589.
In addition, according to the plea agreements, between June 1 and 13, 2010, Lee also provided Chen with inside information about the impending merger of Somanetics Corporation and a subsidiary of Covidien plc. Leerink was the lead financial advisor to Somanetics, which also was publicly traded on the NASDAQ. Chen used the inside information to buy shares and options of Somanetics. Following the merger announcement, the price of Somanetics stock increased more than 30 percent and Chen ultimately realized a profit of approximately $547,510.
Lee and Chen were charged in a criminal Information on March 21, 2013.
The sentence was handed down by The Honorable Richard Seeborg, U.S. District Court Judge. Judge Seeborg also sentenced Lee and Chen each to a 2-year period of supervised release and ordered that restitution and forfeiture be considered at a subsequent hearing. Chen paid $610,099 in forfeiture prior to sentencing. The defendants will begin serving the sentences on September 30, 2013.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Leach and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section with the assistance of Rayneisha Booth and Mary Mallory. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation with substantial assistance from the Chicago Regional Office of the U.S. Securities and Exchange Commission.
This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Illinois State Representative Connie Howard Pleads Guilty to Fraud SchemeRead the Press Release
Springfield, Ill. – Former Illinois State Representative Constance ‘Connie’ Howard, today waived indictment and entered a plea of guilty to mail fraud related to her misuse of funds from 2003 to 2007, that she raised on behalf of a charity golf outing she sponsored, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. Howard, 70, appeared before U.S. Magistrate Judge Byron G. Cudmore. Sentencing has been scheduled for Nov. 21, 2013, before U.S. District Judge Richard Mills.
In court documents and during today’s hearing, Howard admitted that, as a result of the scheme, from 2003 to 2007, she solicited and obtained approximately $76,700, representing that such funds would be used to provide scholarships. Howard admitted that, in fact, no more than five scholarships of $2,500 each, totaling $12,500, were issued during the course of the scheme, and as much as approximately $28,000 of the funds raised were converted to her personal and political use. Misuse of the funds included expenses associated with the promotion of her campaign, and campaign events, and to the benefit of Individual A, identified in court documents as Howard’s legislative aide and employee / office manager.
At the time of the fraud, Howard was a member of the Illinois House of Representatives. She served as Chairwoman of the Computer Technology Committee for the House of Representatives and the Eliminate the Digital Divide Advisory Committee of the Illinois Department of Commerce and Economic Opportunity. Howard’s legislative and campaign offices were located in Chicago.
In 2003, Howard created an organization known as “Tee Off for Technology,” (TOFT), which was not a tax-exempt organization. Howard also established the “Constance A ‘Connie’ Howard Computer Technology Scholarship Fund. Howard represented that the purpose of the fund was to provide scholarships to persons in need who were seeking a degree in computer science and related fields.
In July 2003, Howard established an annual event known as the “Tee Off for Technology Celebrity Golf Outing.” Howard represented that the purpose of the organization and the annual golf outing was to serve as a fundraising mechanism for the scholarship fund. Because TOFT was not a tax-exempt organization, it partnered with tax-exempt organizations to serve as TOFT’s fiscal agent to ensure that donations to TOFT and the scholarship fund were tax deductible.
In the plea agreement between Howard and the government, at sentencing, the government agrees to recommend to the court a sentence of no more than 12 months to be served as six months in prison to be followed by a term of supervised release that includes a condition that six months of supervised release be served as home detention. The parties agree that the advisory sentencing guidelines for the offense would be 12 to 18 months in prison. Under terms of the plea agreement, if the court does not accept the plea agreement, the defendant has a right to withdraw her plea of guilty. Howard has not been detained and remains free on her own recognizance pending sentencing.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Former Campaign Worker and Policy Analyst for the Arizona House of Representatives Found Guilty of Wire FraudRead the Press Release
PHOENIX – John Rowland Mills, 49, of Glendale, Ariz., a former policy analyst for the Arizona House of Representatives, was found guilty of nine counts of wire fraud by a federal jury in Phoenix. The case was tried before U.S. District Judge James A. Teilborg from July 9 through July 23, 2013. Sentencing is set before Judge Teilborgon Tuesday, Oct. 8, 2013.
“The theft and misuse of approximately $133,000 of campaign funds, consisting primarily of contributions from individuals, is a serious offense. My office stands ready to assist the people of Arizona in guaranteeing that campaign workers are not tempted to steal or misuse such funds in the future,” said John S. Leonardo, U.S. Attorney, District of Arizona.
FBI Special Agent in Charge Douglas G. Price, Phoenix Division, stated “Whenever an individual utilizes their position to defraud the public for their own personal gain by taking campaign contributions it tarnishes our political process. John Rowland Mills’ actions were fostered by greed. The voice of justice has spoken with a jury of his peers holding him accountable for defrauding the public. The FBI and the United States Attorney’s Office are committed to investigating and prosecuting those who choose to line their pockets with public funds.”
The evidence at trial showed that from December 2006 through January 2009, Mills embezzled approximately $133,000 from the James P. Weiers 2008 campaign account (which consisted primarily of contributions from individuals) and used the embezzled funds to make mortgage payments, to pay for personal items such as clothing, food, and credit card bills, and to make various investments, including investments via multiple E*Trade accounts. Mills also made a variety of false statements in an attempt to avoid detection, including forging the candidate’s signature on nine campaign account checks and filing six campaign finance reports with the Arizona Secretary of State that falsely overstated the amount of money in the campaign account. Finally, just before the 2008 election, Mills deposited money back into the campaign account in an attempt to avoid detection.
Each conviction for wire fraud carries a maximum penalty of 20 years, a maximum fine of $250,000, or both.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Frederick A. Battista, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1660-PHX-JAT (LOA)
RELEASE NUMBER: 2013-059_MillsFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Former Biller for RGV DME Gets More Than 11 Years in Federal Prison for His Role in $11 Million Health Care Fraud SchemeRead the Press Release
McALLEN, Texas – One of the billers for a now defunct McAllen area durable medical equipment (DME) business has been ordered to prison for his role in a conspiracy and scheme to defraud Medicare and Medicaid through fraudulent billings, United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott announced today. Ramon De La Garza, 52, of Mission, was a biller for RGV DME from approximately August 2004 through approximately April 2009. The scheme involved approximately $11.1 million in false claims to Medicare and Medicaid.
Today, De La Garza, was handed a sentence of 110 months for conspiracy to defraud Medicare and Medicaid and an additional mandatory 24-month-term for aggravated identity theft which must be served consecutively to the other sentence imposed, resulting in a total sentence of 134 months in federal prison. He will also serve three years of supervision following his release. In addition to the prison sentence, he was ordered to pay restitution to Medicare and Medicaid in the amount of $5,059,198.96, and a money judgment will be entered against him for that amount.
De La Garza and Former RGV DME Owner Marcello Herrera, 40, along with his wife Carla Cantu Herrera, 32, both from Mission, pleaded guilty on Feb. 21, 2013, to conspiring to defraud Medicare and Texas Medicaid. Beatriz Ramos, 28, of Edinburg, another former biller for RGV DME, pleaded guilty to the conspiracy on Oct. 16, 2012. Marcelo Herrera and De La Garza also pleaded guilty to one count of aggravated identity theft for unlawfully using the identity of a beneficiary to bill Medicare and Medicaid $5,000 for a power wheelchair that was not requested, prescribed, needed or delivered.
Marcelo Herrera was sentenced earlier this month to 120 months for the conspiracy as well as the mandatory 24 months for aggravated identity theft for a total of 144 months in federal prison. The court ordered him to pay restitution to Medicare and Medicaid in the amount of $6,103,953.74 and that he forfeit wheelchairs, scooters and other DME items discovered in his leased storage facility in Alamo, which had been rented by him and ultimately seized by the FBI.
From early 2004 through late 2011, Marcello Herrera, who did business as RGV DME in the McAllen area, engaged in and directed a scheme to submit fraudulent claims to Medicare and Texas Medicaid for power wheelchairs, scooters, incontinent supplies, hospital beds and mattresses as well as other DME supplies. At various times, his wife - who admitted to being marketing director, chief financial officer, chief operating officer, office manager, human resources manager and co-owner of RGV DME - and billers De La Garza and Ramos all participated in the conspiracy and aided Marcello Herrera and each other in the submission of fraudulent billings, wire fraud and theft of the identities of beneficiaries and doctors.
In court on Feb. 21, 2013, De La Garza admitted that during his participation in the conspiracy the fraudulent billing exceed $9.6 million for which payments exceeded $5 million. Marcelo Herrera acknowledged he submitted or caused the submission of more than $11.1 million in false and fraudulent claims to Medicare and Texas Medicaid for which he illegally received in excess of $6.1 million, while Carla Herrera admitted that during her participation in the conspiracy, the fraudulent billings exceeded $9.9 million for which they received illegal payments exceeding $5.5 million. Marcelo Herrera, his wife and De La Garza also admitted that approximately 85% of their Medicare and Texas Medicaid billings were false and fraudulent.
The three defendants in court on Feb. 21, 2013, also admitted that marketers were used to obtain Medicare and Medicaid identification numbers and other information from beneficiaries which they in turn used to fraudulently bill Medicare and Medicaid for DME that was either never prescribed or prescribed but never delivered.
Ramon De La Garza has been in custody since his arrest on June 28, 2012. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Sentencing for Carla Herrera and Ramos are set for Sept. 18, and 26, 2013, respectively.
The investigation leading to the charges was conducted by the FBI, the U.S. Department of Health and Human Services-Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney Grady Leupold are prosecuting the case.
Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney Grady Leupold are prosecuting the case.
Five from Mahoning Valley Indicted on Federal Firearms ChargesRead the Press Release
Five men from the Mahoning Valley were indicted this week on unrelated cases of being felons in possession of firearms or ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Michael Harver, 24, of Poland; Jawonn Hymes, 22, of Boardman; Andre L. Owens, 38, of Warren; Thomas I. Sledge, 33, of Struthers, and Carl D. Washington, 25, of Warren.
“We will continue to work to get firearms and ammunition off the street and out of the hands of felons who are forbidden by law from having them in the first place,” Dettelbach said. “Cases like this are possible because of the efforts of federal agents and local police working together.”
Harver is accused of having an FIE .38-caliber pistol and ammunition on April 28, 2013, despite a conviction for felonious assault in Mahoning County.
Hymes is accused of having a Smith and Wesson .40-caliber pistol and ammunition on June 27, 2013, despite previous convictions of trafficking in drugs and possession of cocaine in Mahoning County.
Owens is accused of having 9 mm Winchester bullets on May 27, 2013, despite numerous convictions in Trumbull County and Washington County (Pennsylvania) for crimes including sexual battery and multiple cocaine offenses.
Sledge is accused of having a CZ .40-caliber pistol and ammunition on June 5, 2013, despite numerous convictions in Trumbull County, including attempted murder with a firearm specification, felonious assault, having weapons under disability and other crimes.
Washington is accused of having an H&R .22-caliber revolver and ammunition on May 30, 2013, despite previous convictions for felonious assault, aggravated burglary and tampering with evidence in Trumbull County.
These cases are being prosecuted by Assistant United States Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Youngstown Field Office, the Warren Police Department, the Struthers Police Department, the Youngstown Police Department and the Boardman Police Department.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Eight defendants indicted for defrauding the Municipality of Anchorage of cigarette tax revenueRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that eight defendants were indicted last week on charges of mail fraud, money laundering conspiracy, conspiracy to make false statements regarding the distribution of cigarettes and aggravated structuring currency transactions.
Michael Butler, 42, Sun Sims, 50, Kimberly Sims, 29, In Sook Baik, 28, Kyong Hee Kim, 55, Jae Ho Lee, 58, Jae Gak Lee, 60, and Jerry Lee, 58, were charged in a single 20-count indictment. The indictment also alleges forfeiture of funds totaling over $ 1 million dollars and seeks a money judgment in the amount of $3.6 million dollars.
According to lead Assistant U.S. Attorney Stephan A. Collins, the indictment explains that the Municipality of Anchorage imposes an excise tax upon each cigarette purchased within the municipality. The tax is approximately equal to $2.20 per pack of cigarettes. The Municipality provides for an exemption to this excise tax for cigarettes that merchants purchase within the municipality and that are then transported outside of the municipality for resale. The Kenai Peninsula Borough does not impose an excise tax upon cigarettes sold within the borough. Michael Butler and Sun Sims owned and operated Up In Smoke, a tobacco shop located within the Municipality of Anchorage. In addition to Up In Smoke, Butler and Sun Sims owned and operated Golden Eagle Tobacco and Longmere Lake Liquor, both located within the Kenai Peninsula Borough. The indictment alleges that in an effort to avoid paying the municipal cigarette excise tax, Butler and Sun Sims purchased cigarettes after falsely reporting that the majority of the cigarettes were intended for sale at either of their two tobacco stores within the Kenai Peninsula Borough, when in fact those cigarettes were being sold within the municipality.
In addition to selling cigarettes within their own smoke shops, Butler and Sims sold untaxed cigarettes to In Sook Baik, Kyong Hee Kim, Jae Ho Lee, Jae Gak Lee and Jerry Lee, who all operated smoke shops within the Municipality of Anchorage. Baik owned and operated the Arctic/Tudor Shell and Mountain View Shell, where she sold cigarettes. Kim owned and operated the Mini Stop Grocery. Jae Ho Lee owned and operated Cheap Smokes. Jae Gak Lee owned and operated Party Time Liquor. Jerry Lee owned and operated the Lucky Seven Foodmart.
The indictment alleges that between 2009, and continuing up until October 10, 2012, the defendants collectively ordered and purchased approximately 12,350,000 cigarettes, intended for resale within the Municipality of Anchorage through October 10, 2012.
By falsely representing that the ultimate destination for the sale of these cigarettes was outside of the Municipality of Anchorage, the defendants caused the Municipality to lose cigarette excise tax revenue in excess of $1,375,000. During the course of this scheme, Butler, Sun Sims and Kimberly Sims collected and received fees and costs for the wholesale cigarettes totaling approximately $3.6 million dollars from the other defendants.
The indictment also alleges that while participating in this scheme, In Sook Baik evaded financial reporting requirements by structuring deposits made to Northrim Bank and Wells Fargo Bank, N.A. Baik made these deposits between January 4 and July 17, 2012, and the deposits totaled over $225,000.
The United States District Court for the District of Alaska has summoned all of the defendants to appear for their respective arraignments on August 28 and 29, 2013.Assistant U.S. Attorney Stephan A. Collins and Special Assistant U.S. Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 20 years in prison for mail fraud, a fine of $250,000, or both. The law provides for a maximum total sentence of 20 years in prison for money laundering conspiracy, a fine of $500,000, or both. The law provides for a maximum total sentence of 5 years in prison for conspiracy to make false statements regarding the distribution of cigarettes, a fine of $250,000, or both. The law provides for a maximum total sentence of 10 years in prison for aggravated structuring currency transactions, a fine of $500,000, or both.
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation Division, the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Anchorage Police Department for the investigation of this case.
The case was investigated under the purview of the Organized Crime and Drug Enforcement Task Force, which is made up of personnel from the U.S. Attorney’s Office, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Internal Revenue Service–Criminal Investigation, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard, and the Anchorage Police Department. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Douglas Vance Crooked Arm and Kenneth G. Shane Plead Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, before U.S. District Judge Donald W. Molloy, on July 23, 2013, DOUGLAS VANCE CROOKED ARM, age 36, and on July 24, 2013, KENNETH G. SHANE, age 45, residents of Crow Agency, pled guilty to conspiracy to traffic in eagles and migratory birds and unlawfully trafficking in migratory birds. Sentencing has been set for October 22, 2013. They are currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Mark S. Smith, the government stated it would have proved at trial the following:
Operation Hanging Rock" was a U.S. Fish & Wildlife Service investigation into the unlawful sale of migratory bird feathers. As part of that operation, on August 17, 2008, FWS Special Agents (SAs) went to the Crow Fair in Crow Agency. While there undercover, the agents encountered SHANE and his brother-in-law, CROOKED ARM. SHANE gave the agents his contact information and invited them to visit his house.
On November 13, 2008, the agents met with SHANE and CROOKED ARM at SHANE's father's house, south of Garryowen. An agent noticed two golden eagles flying around the area, and said to the other agent, "There's your tail, Liz." SHANE asked "Are you looking for tails?" The agent told SHANE she needed a fan for her dress. SHANE said "My brother-in-law (CROOKED ARM) has got some made, beaded and everything. He likes to hunt and everything." SHANE said "My brother-in-law got some white-tail buck and a muley buck and he is going to leave the carcasses out there." SHANE said CROOKED ARM was "bringing his carcasses out because that's what we're hunting right now," indicating they would put out the carcasses as bait to attract eagles. SHANE also said, "We put the carcass out here and we drive up and ... the black and whites haven't been so good lately, we are waiting for some more snow."
SHANE called CROOKED ARM's cell phone, asked him whether he had any fans for sale. SHANE told CROOKED ARM that the agents might be interested in purchasing them. SHANE then generally pointed out areas where he and CROOKED ARM placed deer and elk carcasses for hunting hawks and eagles. CROOKED ARM arrived at the residence and showed the agents parts of deer carcasses lying in the back of his truck. The agents asked CROOKED ARM if he needed help putting carcasses out, but CROOKED ARM said he could do it himself. One of the agents asked CROOKED ARM how he could get nice deer like those. CROOKED ARM responded, "Poach." The group noticed a golden eagle flying nearby, and SHANE told CROOKED ARM to drop a carcass in that area.
CROOKED ARM then removed one immature golden eagle fan and one magpie fan from his truck cab and showed them to the agents. CROOKED ARM then left to put out the deer carcass. SHANE told the agents he and CROOKED ARM wanted $1,500 for the golden eagle fan and $800 for the magpie fan. SHANE told one of the agents that he and CROOKED ARM had obtained the golden eagle used to make the fan the previous Christmas. The agent paid SHANE $1,500 cash and received the golden eagle fan from him. The agents also placed an order for a magpie fan. One of the agents later saw SHANE give CROOKED ARM a portion of the $1,500 they had paid for the golden eagle fan. SHANE told the agents that CROOKED ARM needed this money to make a payment on his pickup truck. SHANE said he and CROOKED ARM had a good thing going, working hard all winter to kill and trap eagles. SHANE told the agents that CROOKED ARM made regalia to sell while he stayed home taking care of his kids, and this helped the family get by during the winter.
On January 29, 2009, an agent called SHANE, and SHANE said he and CROOKED ARM were still putting out deer and elk carcasses to trap and kill eagles and hawks. The agent asked SHANE for a nice tail, and SHANE said CROOKED ARM had several so they would save one for him.
On February 11, 2009, an agent met with SHANE and they drove to CROOKED ARM's residence, in Hardin. The agent told CROOKED ARM that the other agent wanted to buy another eagle fan and a winter hawk fan. CROOKED ARM said he had plenty of tails and had sold four golden eagle fans and several hawk fans the previous week to some people from New Mexico. CROOKED ARM produced two eagle feathers from an adjoining room, and told the agent that several of his tails were similar to these feathers. CROOKED ARM agreed to a $500 deposit, and told the agent to e-mail him the specifics for the fans. CROOKED ARM gave the agent his phone numbers. The agent paid CROOKED ARM the $500 deposit.
On March 8, 2009, CROOKED ARM sent one of the agents an e-mail containing photos of a bald eagle fan and a winter hawk (rough-legged) tail he intended to use for her hawk fan. CROOKED ARM wrote that he only had two weeks to finish the agents's hawk fan before a powwow in Denver. He asked the agent if the hawk in the photo was acceptable. Later that day, in a second e-mail to the agent, CROOKED ARM wrote that the bald eagle fan from the photo took extra time because he had to send it to a friend to clean off the blood, and there was a lot of blood.
The next day, March 9, 2009, CROOKED ARM called the agent and asked what colors she wanted on her fan. On March 10, 2009, CROOKED ARM called the other agent to tell him that his $500 deposit would be payment for the "winter hawk" fan, but the bald eagle tail fan from the photo would cost $1,000 because he had to pull a few strings to get it in time for the Denver powwow.
On the morning of March 11, 2009, a FWS Special Agent served a search warrant on CROOKED ARM's residence in Hardin. They seized, among other things, a hand-written note containing the undercover agent's order for a winter hawk feather fan, and one bald eagle feather fan. After agents read him his rights, CROOKED ARM signed an Advice of Rights Form, and agreed to cooperate. CROOKED ARM retrieved the undercover agent's order from the top of his refrigerator and admitted he knew the two undercover agents in connection with the note.
That same morning, another FWS Special Agent, accompanied by six other special agents, served a search warrant on SHANE's father's home south of Garryowen. SHANE arrived a few minutes after the agents. The agents advised SHANE of the search warrant and SHANE agreed to speak with them briefly. A Special Agent told SHANE he would not be arrested and explained the undercover agent's true identity. SHANE admitted that he knew it was illegal to sell hawk and eagle parts.
SHANE admitted that CROOKED ARM sold a golden eagle peyote fan to the undercover agents, but claimed he never counted the money they paid him, having given the entire amount to CROOKED ARM. SHANE also told the agents he saw one of the undercover agents show CROOKED ARM a sketch and discuss purchasing a hawk fan with beadwork to match her skirt. SHANE said he had a permitted eagle from the U.S. Fish and Wildlife Service, which he had used to make a bustle for his dance costume, stored in the basement. The agents photographed this bustle, but did not seize it. SHANE said that CROOKED ARM had called him the day before to ask for one of the undercover agent's phone number to complete the sale of a bronze hawk fan and bald eagle tail fan.
They each face possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release on Count I, and possible penalties of 2 years in prison, a $250,000 fine and 1 year supervised release on Count II.
The investigation was conducted by the U.S. Fish and Wildlife Service.