Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
11 September 2013
Drug Smuggler SentencedRead the Press Release
PHILADELPHIA - Naman Bader, aka “John C. Koshy,” 34, of Philadelphia, was sentenced today to 12 months in prison for smuggling and illegally distributing more than two million prescription pills, such as Xanax, Valium, Phentermine, Ativan, Klonopin, Ambien, and their generic equivalents, valued at approximately $10,310,406. Additionally, approximately 25,000 counterfeit Viagra and Cialis pills were seized in international mail parcels during the course of the investigation. Bader pleaded guilty on September 5, 2012, to conspiracy to possess controlled substances with the intent to distribute and to receive merchandise brought into the United States contrary to law and distribution of a controlled substance in a school zone.
Between February 2011 and October 2011, Bader participated in a conspiracy to import and distribute pharmaceutical controlled substances. He received bulk shipments of pills from overseas, delivered some of the pills to conspirators to repackage for customer orders, and forwarded other boxes of bulk pills to other conspirators across the county. Bader also shipped pills to people who had placed orders over the internet without prescriptions. Bader conducted some of this business using a mail box at a commercial mailbox store on Castor Avenue in Philadelphia.
In addition to the prison term, U.S. District Court Judge Jan E. DuBois ordered Bader to pay a special assessment of $200, and ordered three years of supervised release.
Bader’s co-conspirator, Rehan Shah, was sentenced on December 5, 2012, to 15 months in prison.
This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Food and Drug Administration - Office of Criminal Investigations, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Albert S. Glenn.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Dallas Man Sentenced to 15 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
Defendant to Be Deported Following Incarceration
DALLAS — Eulises Abraham Nava-Romero, 26, was sentenced this morning by U.S. District Judge Ed Kinkeade to 180 months (15 years) in federal prison and a lifetime of supervised release, following his guilty plea in February 2013 to one count of receipt of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Nava-Romero has been in federal custody since his arrest in January 2013 on a related federal felony criminal complaint following the execution of a federal search warrant at his home in Dallas by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). He will be referred for deportation proceedings following his incarceration.
According to documents filed in the case, Nava-Romero admitted knowingly downloading and receiving images of child pornography from the Internet onto his home computer in March and September 2012.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI investigated; Assistant U.S. Attorney Camille Sparks prosecuted.
Collin County Man Sentenced for Customs ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 44-year-old Chinese national living in Plano, Texas has been sentenced for customs violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shichen Wang pleaded guilty on Feb. 14, 2013 to the misdemeanor offense of negligent attempted transportation of wildlife sold in violation of law and was given an 11 month probated sentence on Sep. 10, 2013, by U.S. Magistrate Judge Amos L. Mazzant.
According to information presented in court, on April 19, 2011, Wang attempted to ship two elephant ivory carvings, daffodil flowers and a cylinder brush pot, in two separate packages that were addressed to two different locations in the Republic of China. Both of the packages were falsely labeled to describe their contents as “wood carvings” which is a violation of federal laws that protect specified species of wildlife. The packages were intercepted by wildlife inspectors who were inspecting International Express Mail packages that were consigned for export from the United States. Wang was also fined $3,000 and must forfeit the seized carvings to the government.
"One of the primary objectives of the U.S. Fish and Wildlife Service is to combat the international smuggling of wildlife from the U. S.,” said Southwest Region’s Special Agent in Charge Nicholas Chavez. “This seizure was a great example of a multi-agency interdiction effort by the U.S. Fish and Wildlife Service, Office of Law Enforcement and the U. S. Customs and Border Protection.”
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, Fort Worth, and Rosemont, Illinois Office along with the U.S. Customs and Border Protection, Rosemont, Illinois Office and prosecuted by Assistant U.S. Attorney Jim Noble.
The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov . Connect with its Facebook page at www.facebook.com/usfws , follow its tweets at www.twitter.com/usfwshq , and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq .Christopher Michael Vaughan Sentenced to 420 Months for Armed RobberiesRead the Press Release
GREENEVILLE, Tenn. – Christopher Michael Vaughan, 37, of Bristol, Tenn., was sentenced to serve a total of 420 months in prison, by the Honorable J. Ronnie Greer, U.S. District Judge, on Sept. 11, 2013. Upon his release from prison, he will be subject to supervised release for five years. Vaughan was further ordered to pay restitution to the victims of his crimes.
Vaughan pleaded guilty in April 2013 to the February 2013 armed robberies of a Scotchman convenience store, a Roadrunner convenience store, and Belmont Package store, all in Bristol, Tenn. Vaughan also pleaded guilty to a February 2013 armed bank robbery of the New Peoples Bank in Bristol, Va.
Federal law mandates a seven year minimum mandatory sentence for brandishing a firearm in the commission of a violent offense, with each additional offense of possession of a firearm in the commission of a violent offense carrying a 25 year minimum mandatory sentence.
“Serious federal sentences are intended for the most violent criminals in our society. These city police departments, the FBI and AUSA Greg Bowman are to be congratulated for this successful prosecution,” said U. S. Attorney Bill Killian.
Law enforcement agencies participating in the joint investigation included the Bristol Tennessee Police Department, Bristol Virginia Police Department, and Federal Bureau of Investigation. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Camillus Man Sentenced in Pipe Bomb CaseRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that a Camillus man has been sentenced for his role in building and possessing a pipe bomb.
MICHAEL LaVALLEE, age 22, was sentenced by Senior United States District Judge Norman A. Mordue in Syracuse. LaVALLEE was sentenced to 24 months imprisonment, and ordered to participate in substance abuse and mental health programs. LaVALLEE will also serve three years of supervised release following his release from incarceration.
MICHAEL LaVALLEE pled guilty on April 1, 2013 to unlawfully possessing an unregistered firearm, specifically, a pipe bomb wrapped with shrapnel. LaVALLEE admitted that on or about August 12, 2012, he possessed and stored in his apartment in Camillus a pipe bomb he had built. The pipe bomb was composed of a length of metal pipe sealed at each end, with one end containing a hole for a fuse and loaded with explosive material. The pipe bomb was surrounded by metal nails acting as shrapnel, which were wrapped around the device with duct tape. LaVALLEE further admitted that the device was not registered to him in the National Firearms Registration and Transfer Record.
The pipe bomb was discovered and rendered safe by law enforcement officers and bomb squad technicians.
The case was investigated by the Camillus Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case was prosecuted by Assistant United States Attorney Stephen C. Green.
California Man Sentenced on Use of Interstate Facilities to Transmit Information About A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Banning, California, man convicted of Use of Interstate Facilities to Transmit Information about a Minor was sentenced on September 10, 2013, by U.S. District Judge Roberto A. Lange.
Thomas Tatar, age 27, was sentenced to 60 months of imprisonment, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Tatar was indicted by a federal grand jury in November of 2012. He pled guilty to a Superseding Information on June 13, 2013.
Tatar’s conviction relates to incidents that occurred on March 27, 2012, and May 15, 2012, when Tatar, who was living in California, used the internet to meet a minor who was living in South Dakota. During the course of their internet “friendship,” Tatar attempted to solicit sexual activity from the minor girl, and also used the internet to attempt to receive sexually explicit images from her. As this investigation was commencing, Tatar was also investigated by California authorities and convicted in California state court of a separate offense of Bringing into the State of California Matters Depicting Child Sex. On March 13, 2013, Tatar received a 2 year prison sentence for the California offense.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher prosecuted the case.
Tatar was immediately turned over to the custody of the U.S. Marshals Service.Business Owner Pleads Guilty to Federal Tax Charge, Failed to Report Income His Company Received for Work It Provided During the 2008 Presidential Election Cycle Company Received More Than $600,000 in Corporate Money for Providing Services in Support of ARead the Press Release
WASHINGTON – Troy White, the owner of a marketing company based in New York, pled guilty today to a federal tax charge stemming from his failure to file corporate income tax returns over several years, including failing to report more than $600,000 his company received for services it provided in support of a 2008 presidential campaign.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI) and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
White, 48, of New York, N.Y., pled guilty in the U.S. District Court for the District of Columbia to one count of failing to file corporate income tax returns for Wytehouse from 2008 through 2011. The Honorable Colleen Kollar-Kotelly scheduled a status hearing for Dec. 16, 2013. The charge carries a statutory maximum of one year of imprisonment and financial penalties. As part of the plea agreement, White has agreed to cooperate in a continuing investigation.
According to a statement of offense, signed by the defendant as well as the government, during the relevant time period of the offense, White was the sole owner and operator of Wytehouse Marketing, Inc., a for-profit corporation registered in New York. The company provided marketing services to various clients, including political campaigns, with an emphasis on marketing in urban areas through the use of “street teams.”
During a period that spanned over its 2007 and 2008 fiscal years, Wytehouse received approximately $608,750 in gross receipts related to services it provided in support of a 2008 presidential campaign. The money, however, did not come from the campaign but was funneled to Wytehouse through a corporation in the District of Columbia named Belle International, Inc. from companies tied to a private individual, identified in the court filings as “Executive A.”
“Today’s guilty plea reveals for the first time a secret effort to funnel $600,000 in corporate money into the 2008 presidential primary campaign in a number of states,” said U.S. Attorney Machen. “We are grateful to Mr. White for quickly acknowledging his role in that effort and taking responsibility for his actions. Our investigation into this matter is continuing.”
“All income is taxable, whether earned at the local convenience store or for work done on a national election,” said Special Agent in Charge Kelly. “IRS-CI is focusing investigative efforts on individuals and entities who contribute to the tax gap, regardless of the business they conduct. We, along with our law enforcement partners at the U.S. Attorney’s Office and the FBI, will continue to identify those that do not comply with the law and circumvent the legal process.”
“Today, Mr. White took responsibility for failing to file federal tax returns for more than $600,000 in earnings received for services provided in support of a presidential campaign,” said Assistant Director in Charge Parlave. “Together with our law enforcement partners at the IRS, the FBI will work to ensure that those who attempt to exploit our democratic process for their own profit and those who choose to evade tax laws will be held accountable for their actions.”
The statement of offense details activities by White and others, including:
-A campaign identified as “Campaign-1,” a political committee whose candidate was running for President of the United States during the 2008 federal primary election cycle.
-A person identified as “Individual A,” a resident of the District of Columbia who was affiliated with the campaign during the 2008 federal primary election cycle.
-A person identified as “Executive A.”
-A firm identified as “Company A.” This was a company, owned and operated by “Executive A,” that provided accounting, management, consulting, and tax services.
-A firm identified as “Company B.” This was a company that served as a holding company for other companies owned by “Executive A.”
-Belle International, Inc., a corporation based in the District of Columbia.
According to the statement of offense, in January 2008 White marketed Wytehouse to ”Campaign-1” in an effort to have the campaign pay for “street team” services during the 2008 federal primary election cycle. A series of e-mails followed, with the correspondence including White, a senior official with “Campaign-1”, and “Individual A.” On Jan. 29, 2008, the senior campaign official informed White and “Individual A” that “Campaign-1” would not be able to use Wytehouse’s street teams. Two days later, White sent a follow-up e-mail to the senior campaign official and “Individual A,” once again offering the company’s services. Later that day, “Individual A” wrote back and promised to fight on the company’s behalf to get the work.
In or about February 2008, “Individual A” introduced White to “Executive A,” who “Individual A” described as a business owner in the District of Columbia who wanted to organize an effort to support “Campaign-1”. “Executive A” and White agreed that “Executive A” would pay White to provide street team services in support of “Campaign-1” during the Texas federal primary and caucus election. The paid street team workers and canvassers then began disseminating and distributing “Campaign-1’s” prepared materials.
Following the Texas federal primary and caucus election, “Executive A” agreed to continue financing Wytehouse’s paid street team workers in support of “Campaign-1” during several upcoming federal primary elections, and the efforts continued.
All told, from in our about February 2008 through and including in or about May 2008, Wytehouse received approximately $608,750 from Belle International to support “Campaign-1’s” efforts during several federal primary elections. During this same period, Belle International received approximately $611,500 from “Company A” and “Company B.”
According to the statement of offense, White failed to file Wytehouse’s Form 1120 corporate income tax return with the IRS for its 2007 and 2008 fiscal years, which would have included gross receipts that Wytehouse was paid for its work in support of “Campaign-1” during the 2008 federal primary election cycle. White also failed to file Wytehouse’s Form 1120 corporate income tax returns with the IRS for the 2009 and 2010 fiscal years.
In announcing the plea, U.S. Attorney Machen, Special Agent in Charge Kelly, and Assistant Director in Charge Parlave commended those who investigated the case from IRS-CI and the FBI’s Washington Field Office.
They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jonathan W. Haray, Ellen Chubin Epstein, Lionel André, Jonathan Hooks and Ted L. Radway; former Assistant U.S. Attorney Mary Chris Dobbie, and Paralegal Specialists Anne Riopelle, Shanna Hays, Krishawn Graham, Lenisse Edloe, Nicole Wattelet, Corinne Kleinman, and Angela Lawrence.
Finally, they acknowledged the efforts of Assistant U.S. Attorneys Loyaan A. Egal and Ephraim (Fry) Wernick, who are prosecuting the case.
13-313
Brownwood, Texas, Man Admits Enticing A Minor Child to Engage in Sexual ActivityRead the Press Release
AMARILLO, Texas — Luis Gerardo Alvarado, 22, appeared in federal court yesterday afternoon, before U.S. District Judge Mary Lou Robinson, and pleaded guilty to one count of enticement of a minor and aiding and abetting. While a sentencing date was not set, Alvarado, who is in custody, faces a maximum statutory penalty of not less than 10 years and up to life in federal prison, a $250,000 fine and a lifetime of supervised release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, while living in Brownwood, Texas, Alvarado met a minor female, who lived in Coleman County, Texas, by contacting her through Facebook chat. From mid-March 2013 until April 8, 2013, Alvarado communicated with the minor female and attempted to persuade and entice her to engage in sexual activity with him. Alvarado knew the minor female was under 17 years of age.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Coleman Police Department, the Santa Anna Police Department and the Brownwood Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Brothel Operator Sentenced to over 19 Years in Prison on Sex Trafficking ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Kevin Garcia Fuertes, a/k/a Kerlin Esquivel-Feuntes, age 26, a citizen of Honduras and an illegal alien residing in Annapolis, Maryland, and Richmond, Virginia, late yesterday to 235 months in prison followed by five years of supervised release for conspiring to transport and entice females to travel interstate for prostitution and sex trafficking by force and fraud. Judge Quarles further imposed a special condition that upon the completion of his sentence, Fuertes must cooperate with immigration authorities regarding deportation proceedings.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief Michael Pristoop of the Annapolis Police Department; Easton Police Department Chief David A. Spencer; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“Today's sentencing represents another successful HSI investigation worked jointly with our local law enforcement partners that led to the breakup of a prostitution scheme uncovered in Maryland,” said HSI Baltimore Special Agent in Charge William Winter. “The defendants not only exploited women for personal profit, they also used violence, coercion and intimidation. HSI will continue to use its resources and work closely with other law enforcement agencies to stop these types of criminal enterprises that are operating in our communities.”
According to evidence presented during his two week trial, since at least March 2008 through November 2010, Fuertes and co-defendant German de Jesus Ventura, ran brothels in Annapolis and Easton, Maryland. Ventura, the ringleader, employed Fuertes to advertise and manage the brothels, and the two men shared the cash proceeds of the prostitution business. The defendants recruited and employed prostitutes, many of whom were aliens present in the U.S. unlawfully. Ventura arranged for vans and other vehicles to transport females within Maryland and across state lines to engage in prostitution. Ventura assaulted and threatened to use violence against one prostitute to coerce her continued participation in prostitution; threatened to use violence against competitor pimps; and sought to intimidate others who assisted his prostitutes. Fuertes knew of and financially benefitted from Ventura’s actions.
German de Jesus Ventura, age 35, a citizen of El Salvador and an illegal alien residing in Capitol Heights, Maryland, was also convicted at trial and faces a maximum sentence of five years in prison for the conspiracy count; a mandatory minimum of 15 years in prison to a maximum of life in prison for the sex trafficking count; a maximum of life in prison for possessing a gun in furtherance of sex trafficking; and 10 years in prison each for transporting individuals to engage in prostitution and for enticement. Ventura is scheduled to be sentenced on October 1, 2013 at 1:00 p.m.
Jose Antonio Reyes-Maradiaga, age 30, of Annapolis; and Isidro Jiminez-Sanchez and Wibert Alejandro Herrera-Aranda, both age 34 and from Easton, Maryland, previously pleaded guilty to their participation in the scheme. These defendants advertised Ventura’s brothels, made appointments for the prostitutes and collected money. Reyes also helped to transport the women to the brothel locations, and purchased supplies. Jiminez-Sanchez, a Mexican citizen who entered the United States illegally, was sentenced to a year and day for transporting prostitutes, and upon completion of his sentence, was deported from the U.S. to Mexico. Herrera-Aranda was sentenced to 18 months in prison and Reyes was sentenced to time served. Both were also deported.
This case originated with the Annapolis Police Department and was subsequently investigated by members of the Maryland Human Trafficking Task Force formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein praised the Annapolis and Easton Police Departments and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys P. Michael Cunningham and Rachel M. Yasser, who prosecuted the case.
Batesville Man Under Federal Indictment for Setting Fire to State Probation OfficeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and Grover Crossland, Resident Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) - Little Rock Field Office; announced that Douglas McArthur Adams, III, age 51, of Batesville, was indicted today by a federal grand jury on one count of malicious use of fire for attempting to destroy the Arkansas Department of Community Correction building in Batesville (DCC-Batesville).
"This senseless act now has Adams facing federal charges," stated Thyer. "Thankfully, the local law enforcement and fire department were cognizant of preservation of the crime scene in their response to the fire. Together with the Arkansas State Police and ATF investigators, the evidence was presented to my office resulting in our indictment today. Law enforcement officers, including probation officers, put their lives at risk every day to keep our streets safe. It is imperative that they know the full weight of the law is here to support them in their mission."
According to a search warrant issued in this case, Adams had been on release from state charges for possession of methamphetamine and violation of a protective order with a requirement that he report for drug testing. On June 6, 2013, he reported for a screening and presumptively tested positive for meth. A record was made of this screening and the sample was preserved for further analysis.
On June 10, 2013, at about 1:55 a.m., a motion detector in the DCC-Batesville office was triggered. Upon arrival at the DCC-Batesville office, Batesville Police Officers saw that the rear entrance glass door was broken and the building was on fire. The Batesville Fire Department was called and responded to extinguish the fire.
Evidence gathered at the scene indicated the fire appeared to have started in a room adjacent to the refrigerator used to store drug-testing urine samples. Investigators reported an accelerant such as gasoline had been poured on the floor. Surveillance video showed a white Ford truck with features similar to one Adams drives, slowly driving by the DCC-Batesville office at approximately 1:54 a.m. the morning of the fire.
On June 11, 2013, Adams was arrested on a revocation bond for testing positive for meth. Evidence collected at the time of Adams' arrest and additional evidence analyzed by the by the Arkansas State Crime Lab tied Adams to the crime scene resulting in this federal charge of arson. Adams remains in custody. The date for his initial appearance hasn't yet been set by the court.
If convicted, Adams faces a possible sentence of not more than 20 years incarceration and/or $250,000 fine with not more than 3 years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Arkansas State Police, Independence County Sheriff's Office, Batesville Police Department, Batesville Fire Department. The case is being prosecuted by Assistant United States Attorney Mike Gordon.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Bank Robber Sentenced to 63 Months in PrisonRead the Press Release
EUGENE, Ore. – Christopher Franklin Weaver, 34, of Lane County, Oregon, was sentenced today by U.S. District Chief Judge Ann Aiken to 63 months in prison for three counts of bank robbery. Upon his release from prison defendant will be on supervised release for three years.
On November 5, 2012, defendant robbed the Wells Fargo Bank on Polk Street in Eugene, Oregon. Nine days later, on November 14th, defendant robbed the U.S. Bank on West 7th Street in Eugene. On November 29th, defendant robbed the Pacific Continental Bank on High Street in Eugene. He was arrested shortly after the robbery and the money he stole was recovered on his person.
This case was investigated by the Federal Bureau of Investigation and the Eugene Police Department and was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Bank President Charged with Failure to Comply with Requirements of the Bank Secrecy ActRead the Press Release
H. Jack Miller, 51, of Boca Raton, Florida, was charged by information, filed on September 5, 2013, with one count of willful failure to maintain an effective anti-money laundering program and one count of willful failure to file a suspicious activity report, announced United States Attorney Zane David Memeger.
Miller was president and CEO of Public Savings Bank (PSB), a private, closely-held corporation. PSB had one branch office located in Huntingdon Valley, PA. As a financial institution, PSB was subject to the requirements of the Bank Secrecy Act (BSA), which was enacted to prevent financial institutions from being used as intermediaries in the movement of money derived from criminal activity. According to Count One of the information, Miller, who controlled all operations at the bank, failed to establish an effective anti-money laundering program, which included the appointment of a competent BSA compliance officer and the implementation of policies and procedures to protect against money laundering. He is also charged in Count Two with failing to file a Suspicious Activity Report in connection with a wire transmission of approximately $86,400, which occurred on March 25, 2010. The money was transferred into the account of a foreign account holder whom Miller and other PSB employees allegedly suspected was operating an unlicensed money transmission business.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, 3 years of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by Homeland Security Investigations, FDIC Office of the Inspector General and the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Aurora Man Sentenced to Nine Months in Federal Prison for Sexual Contact with Female Passenger Aboard Flight to ChicagoRead the Press Release
CHICAGO ― An Aurora man was sentenced today to nine months in federal prison for sexually groping the inner thigh of a Chicago area woman while they were seated next to each other aboard an airplane from Las Vegas to Chicago in June 2011. The defendant, SRINIVASA S. ERRAMILLI, who was convicted of abusive sexual contact by a federal jury last December, has two previous convictions for nearly identical crimes.
Erramilli, 46, a software consultant, was fined $5,000 and placed on court supervision for a year after he is released from custody by U.S. District Judge Joan H. Lefkow. The judge set a hearing for next Wednesday on the government’s request to revoke Erramilli’s bond. He is prohibited from airline travel while he is on supervised release and he is subject to deportation to India after being released from custody.
Erramilli’s advisory federal sentencing guidelines was found by the judge to be 10 to 16 months in custody. The judge said she would have imposed a 13-month sentence but reduced that by four months to give Erramilli credit for the time he spent in immigration custody following the assault.
Judge Lefkow agreed with the government that a custodial sentence was necessary to deter Erramilli and others from invading an individual’s bodily integrity and also to ensure that victims of abusive sexual contact will be heard and given protection.
Evidence at the trial showed that Erramilli was the last passenger to board a Southwest Airlines flight to Chicago’s Midway Airport on June 14, 2011, and was seated in the only open seat available between the victim, who had chosen a window seat to sleep during the flight, and her husband, who had chosen an aisle seat to enable easier access during the flight. The couple had traveled to Las Vegas for their 34th wedding anniversary.
The victim, now 65, who was wearing shorts during the flight, testified that Erramilli groped her three times aboard the plane. The first time she awoke to feeling something brush against her thigh; the second time, she testified that she awoke to feeling “pressure” on her thigh. The third time, the victim testified that Erramilli placed his hand up the leg of her shorts and then rubbed and grabbed her inner thigh. She struck Erramilli and yelled at him after realizing that he had been groping her. Other passengers and flight attendants also testified during the trial.
The jury also heard testimony from another victim who was seated in the row in front of Erramilli when he fondled her breast on a flight from Detroit to Chicago in August 1999. Erramilli pleaded guilty to battery in Cook County in 2000 and was sentenced to two years’ probation and five days’ community service. In 2002, Erramilli was sentenced in Federal Court in Detroit to three years’ probation after he was convicted of abusive sexual contact for groping the breast of yet another woman aboard a flight from San Jose, Calif., to Detroit.
The government was represented by Assistant U.S. Attorneys Bolling W. Haxall and Heather K. McShain.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special- Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago Police Department assisted in the investigation.
Atlanta Man Found Guilty of Human Trafficking and Production of Child PornographyRead the Press Release
Jackson, Miss - Marco Laquin Rogers, age 27, of Atlanta, Georgia, was found guilty in U.S. District Court today to human trafficking of a minor child and the production of child pornography, announced U.S. Attorney Gregory K. Davis, Raymond R. Parmer, Jr., Special Agent in Charge of Homeland Security Investigations in New Orleans, and Commissioner Robert C. Haas of the Cambridge, Massachusetts Police Department.
Following a two-day trial, Rogers was found guilty of traveling to Mississippi for the purpose of engaging in sexual intercourse with a child under the age of 10 years old. He was also found guilty of producing videos of himself engaging in sexually explicit conduct with the child.
The investigation of this case began when the Cambridge, Massachusetts Police Department received information about a video tape of illegal sexual activities and the production of videos depicting the sexual assault of a child. The Cambridge Police Department contacted the Department of Homeland Security (“HSI”) in Atlanta and the Georgia Bureau of Investigation who worked with HSI in Jackson to conduct further investigation. The collaborative efforts of HSI agents and investigators in Cambridge, Atlanta, Memphis and Jackson ultimately led to the identification of the minor child in the videos, who is now safe with her family.
“The safety and well-being of young children is a high priority for the Department of Justice,” said U.S. Attorney Davis. “Our office will continue to aggressively prosecute these cases to protect the vulnerable and innocent victims of such crimes.”
“This particular case could have persisted over a period of time if it wasn’t for how our investigators pursued what appeared to be a local crime. Working with our federal partners led to the resolution of this horrific act that seemingly has no jurisdictional restrictions. We have been fortunate to have such close ties with our federal partners, without which this criminal may not have been brought to justice,” said Commissioner Robert C. Haas of the Cambridge Police Department.
“The horrific abuse inflicted upon a defenseless child in this case is unspeakable, and yet this individual went even further by recording and sharing the evidence of his sexual crimes,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. "Predators destroy lives, and HSI will continue to do everything it can to protect children by investigating and seeking prosecution wherever these criminals may be found." Parmer oversees a five-state region including Louisiana, Alabama, Arkansas, Mississippi and Tennessee.
Rogers will be sentenced on December 12, 2013 by U.S. District Judge David Bramlette III in Jackson. The penalty for human trafficking of a minor child is not less than 15 years and up to life in prison. The maximum penalty for production of child pornography is 30 years in prison and a $250,000 fine.
U.S. Attorney Davis praised the efforts of the investigative agencies who worked this case and Assistant U.S. Attorneys Glenda Haynes and Scott Gilbert who tried the case for the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Assistant U.S. Attorney from the Middle District of Alabama Receives Attorney General’s AwardRead the Press Release
Montgomery, Alabama - The Justice Department awarded Assistant U. S. Attorney Todd A. Brown the Attorney General’s Award for Fraud Prevention announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. This award recognizes exceptional dedication and effort to prevent, investigate, and prosecute fraud, white collar crimes, and official corruption.
“I am very pleased that the extraordinary success of AUSA Brown and his team are receiving the recognition they truly deserve,” stated U.S. Attorney George Beck, “I believe it is essential that these type of crimes be vigorously prosecuted and that taxpayer funds be swiftly recovered when individuals attempt to profit illegally from the hard work and sacrifice of others.”
This year’s award is presented to the investigation and prosecution team members who were responsible for combating the growing epidemic of identity theft, tax fraud, and white collar crimes in the Middle District of Alabama. According to the Federal Trade Commission, in 2011, the number of identity theft complaints from the Montgomery area ranked second in the entire nation, trailing only Miami. However, thanks in great part to the efforts of AUSA Brown and his team, in 2012 Montgomery fell several spots to number 16 on the list.
“This is not an individual award,” states AUSA Todd Brown, “quite the contrary, this award recognizes the tremendous work performed not only by our office, but also the DOJ Tax Division, and very dedicated law enforcement agencies, especially the IRS. Victims of identity theft and tax fraud should be extremely pleased with the tireless efforts of the agents assigned to combat these crimes in the Middle District of Alabama.”
Other award recipients from the team include Assistant Chief Larry J. Wszalek, and Trial Attorneys Michael C. Boteler, Charles M. Edgar, Jr., Justin K. Gelfand, and Jason H. Poole, all from the Department of Justice’s Tax Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alton Woman Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 11, 2013, Roslyn James, 46, of Alton, IL, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing James will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release. Sentencing has been set for January 10, 2014, at 11:00 a.m. in United States District Court in East St. Louis, Illinois.
During her plea hearing, James admitted that she had submitted false and fraudulent bills in relation to the providing of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead entering a nursing home. James admitted that she falsely billed the program for over $50,000 for services that were supposed to have been provided to her son. In reality, the person who James claimed as having provided the services lived in the State of California.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; Illinois State Police; and the St. Clair County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Alexandria Man Pleads Guilty to Access Device FraudRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that John B. Sommers, 28, of Alexandria, pleaded guilty Tuesday before U.S. District Judge Dee D. Drell to access device fraud resulting from unauthorized purchases of $90,650.According to evidence presented at the guilty plea, between November 9, 2010 and December 21, 2011, Sommers made unauthorized and fraudulent use of access devices, which included credit cards for the U.S. Bureau of Prisons in Oakdale, La. Sommers worked as a manager for Ralph’s Electronics, an electrical supply company in Alexandria. As part of his scheme, Sommers set up a separate account under his control, but bearing the name of his employer. He then made fraudulent charges on a number of unauthorized access devices. It appeared that his employer was making the purchases when in fact the purchases were Sommers’. Sommers illegally purchased $90,650 worth of merchandise.
The Federal Reserve defines an access device as a card, code or other means of access to a consumer’s account or a combination of these used by the consumer to initiate Electronic Fund Transfers (EFT). Access devices include debit cards, personal identification numbers (PINs), telephone transfer and telephone bill payment codes, and other means to initiate EFT or to form a consumer account.
Sommers faces up to 15 years in prison, a $250,000 fine and three years of supervised release. A sentencing date of December 12, 2013 was set.
The U.S. Secret Service and the U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Administrator of Student Health Insurance for Virginia Tech Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that GM-Southwest Inc., and the company’s CEO and former owner, have pled guilty to charges of racketeering and money laundering.
In a 57-count indictment filed April 8, 2013, John Paul Gutschlag Sr., 73, of Aubrey, Texas and GM-Southwest Inc., were charged with racketeering, wire fraud, mail fraud, money laundering and conspiracy charges. Today in District Court, Gutschlag pled guilty to one count of conspiracy to violate the Racketeering Act and two counts of money laundering by engaging in monetary transactions involving property derived from wire and mail fraud. In addition, GM-Southwest, through its corporate counsel, pled guilty to the same three charges.
“Mr. Gutschlag and GM-Southwest bilked Virginia Tech and thousands of the university’s students out of more than a million dollars,” United States Attorney Timothy J. Heaphy said today. “This conspiracy was sophisticated and wide-ranging and caused considerable harm to its victims. In an age where health care costs are rising for each and every American, the Department of Justice will do everything possible to identify and prosecute waste, fraud and abuse in the health care delivery system.”
“Healthcare is a very important issue for students, parents and the public. Mr. Gutschlag and GM-Southwest’s conspiracy negatively impacted thousands of students who depended on them to provide a very important service,” said Thomas J. Kelly, Special Agent in Charge of the IRS-Criminal Investigation, Washington DC Field Office. “IRS-CI will continue to work closely with the US Attorney’s Office to investigate corporate fraud and to hold corporations and executives accountable for complying with the law.”
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Anthony Giorno, GM-Southwest was in the business of collecting health insurance premiums from students and universities, paying claims and providing reports related to the premium collection and claims payment both to the university and the carriers. The carriers, in turn, paid GM-Southwest a set commission or fee, typically a percentage of the gross premium collected. From August 2003 through the end of the 2010-2011 school year, GM-Southwest, under the direction of Gutschlag, provided student health insurance for Virginia Tech’s undergraduate and graduate students.
Today in District Court, the defendants admitted that beginning in 2005, Gutschlag, and others, devised a scheme to defraud colleges and universities by providing false and fraudulent claims reports and other misrepresentations designed to increase the income of GM-Southwest and to personally enrich Gutschlag. They did this by devising and utilizing a “claims modifier” to alter the claims numbers to produce an inflated dollar amount which overstated the claims paid and loss ratios, causing students and Virginia Tech to pay significantly higher premium costs.
Gutschlag and GM-Southwest admitted to overstating the amount of claims paid on behalf of Virginia Tech by over $1 million from 2003-2004 through the 2009-2010 academic years. The plea agreement provides for restitution to Virginia Tech and the students in the amount of $1.2 million and forfeiture of an additional $1.2 million to the government. The defendants agreed that the restitution figure agreed to by the government would not prevent Virginia Tech or the students from seeking additional restitution through the civil courts.
In a related matter, in July 2013, James Lane, of Botetourt, Va., entered into a deferred prosecution agreement with the United States for his role in the fraud. He has paid $250,000 to Virginia Tech as restitution for his conduct. This is in addition to the restitution to be paid the Gutschlag and GMS. Lane also pled guilty to one-count of filing a false tax return for tax year 2008 and one count of filing a false tax return for tax year 2009.
In addition, Carolyn Beck, Gutschlag Sr.’s administrative assistant, has previously pled guilty to one count of conspiracy to commit wire fraud, mail fraud and money laundering. Beck had access to the false premiums and claims data on the GM-Southwest computer system at the company’s office in Texas. At Gutschlag’s direction, she provided false claims reports to Lane, who in turn provided the false reports to Virginia Tech.
At sentencing, Gutschlag faces a maximum possible penalty of up to 20 years in prison on the racketeering charge and up to 10 years in prison on each of the money laundering charges.
The investigation of the case is being conducted by SA Phillip Barnett of the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Anthony Giorno and Randy Ramseyer prosecuted the case for the United States.
12 Individuals Indicted and Arrested for Introducing Narcoticts into State PrisonsRead the Press Release
San Juan, Puerto Rico – Twelve individuals, including six state correctional officers, one female correctional nurse, one civilian correctional employee, one state court marshal and three other individuals were charged in nine separate indictments for attempting to introduce heroin into state prisons, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The investigation revealed that corrupt correctional employees were abusing their positions to infiltrate narcotics and other contraband into state penitentiaries in Puerto Rico.
According to the indictments, the defendants attempted to distribute heroin by introducing it into state penitentiaries. The defendants and their roles in the indictments are:
- Lina Michelle Narvàez-Arroyo, relative of inmate
- William Joel Medina, correctional officer
- Yolanda Santiago, friend of Narvàez-Arroyo
- Ángel López Reverón, correctional guard
- Héctor Ruiz-Torres, employee of canteen Correctional Services
- Alberto Martínez-Moreno, correctional officer
- Edwin Sànchez-Velàzquez, correctional officer
- Victoria Rivera, correctional nurse
- Luis Lebron-Lebron, correctional officer
- Jessica Moreno, correctional officer
- Joel Torres-Velàzquez, State Court Marshal
- Antonio Romàn-Medina, friend of William Joel Medina
“Corrupt public employees undermine the fabric of our nation’s security, our overall safety, the public trust and confidence in those chosen to protect and serve,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The corruption and negligence exemplified in this case cannot and will not be tolerated. We will continue to investigate and prosecute these type of schemes.”
Carlos Cases, Special Agent in Charge of the FBI said: “Corrupt public officials undermine our overall safety, the public trust, and confidence in the Puerto Rico Government system. The FBI will continue to fight corruption in Puerto Rico”.This case is being prosecuted by Assistant U.S. Attorney Héctor Ramírez-Carbó. The case was investigated by Office of Internal Investigations of the Puerto Rico Department of Corrections, Puerto Rico Bureau of Special Investigations, commonly referred to as NIE, the Federal Bureau of Investigation (FBI), and the Puerto Rico Police Department.
The maximum penalties for these offenses are 20 years of imprisonment. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
10th Street Member Pleads Guilty to RICO ConspiracyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Melvin Medina, 27, of Buffalo, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara to a Racketeering Influenced Corrupt Organizations (RICO) Conspiracy. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant was a member of the 10th Street Gang. Medina possessed firearms and sold crack cocaine and marijuana as a part of his participation in the 10th Street gang's activities.
The plea is the culmination of an investigation on the part of Investigators of the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commission Daniel Derenda, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is scheduled for January 24, 2014 at 12:30 p.m. before Judge Arcara.
10 September 2013
Violent Repeat Offender Sentenced to 15 Years in Prison for Illegal Gun PossessionRead the Press Release
A repeat offender who was arrested in December 2011 with two firearms in his Tacoma apartment was sentenced today in U.S. District Court in Tacoma to 15 years in prison and five years of supervised release, announced U.S. Attorney Jenny A. Durkan. JAMES QUINCY WILKINSON, 39, has prior convictions for burglary (1993), unlawful possession of a firearm (1994, 1999), Assault (1995, 98, 99) and assault of a child (2005). WILKINSON was released from prison in January 2011. Department of Corrections officers conducted the search after getting reports that WILKINSON was dealing drugs and possessing firearms. U.S. District Judge Benjamin H. Settle determined WILKINSON qualified as an Armed Career Criminal, saying that the case was “extraordinary.” The Judge stated that Wilkinson’s criminal history showed “indifference to the suffering and safety” of others, and found that a long sentence was required “for the protection of the public.”
According to records filed in the case, in December 2011, the Pierce County Sheriff’s Office and the South Sound Gang Task Force received reports that WILKINSON was dealing drugs and was armed. WILKINSON was on community supervision following a ten year prison sentence for assaulting and critically injuring a toddler. Community Corrections officers searched WILKINSON’s car and found crack cocaine. In his apartment they found two loaded weapons – one of them stolen. At a bench trial in September 2012, WILKINSON was found guilty of being a felon in possession of a firearm and an Armed Career Criminal. The finding mandates a sentence of at least 15 years in prison.
The case was investigated by the Tacoma Police Department, the Washington State Department of Corrections, Lakewood Police Department, Washington State Patrol, FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the South Sound Gang Task Force.
The case was prosecuted by Assistant United States Attorney Michael Dion.
Utah Man Pleads Guilty to Idaho Drug ChargeRead the Press Release
Two Co-defendants Scheduled for Sentencing in November
POCATELLO – Fernando Garcia, 31, of Logan, Utah, pleaded guilty today in United States District Court to one count of conspiracy to distribute cocaine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on April 22, 2011, Garcia arranged to sell and subsequently delivered cocaine to another individual in Idaho Falls, Idaho, for $1,150. Garcia admitted knowing the substance he was distributing was cocaine.
Garcia is scheduled to be sentenced on November 19, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello. He faces up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Two co-defendants, Josue Rodriguez-Sanchez, and Julian Vega-Valdez, both 25-, of Idaho Falls, pleaded guilty on August 14, 2013, to related drug charges. Sentencing is set for November 18, 2013.
The charges are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Idaho State Police, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
University Park Woman Admits Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Erika Susan Perdue, 42, of University Park, Texas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Paul D. Stickney, to one count of transporting and shipping child pornography. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A federal grand jury returned a four-count indictment in May 2012 charging Perdue with two counts of transporting and shipping child pornography, one count of receipt of child pornography and one count of possession of child pornography. Purdue has been in custody since June 2012 when the court found that she had violated the conditions of release.
According to plea documents filed today in the case, if the court accepts the plea agreement, the parties agree that the appropriate term of imprisonment is 168 months (14 years) in federal prison. The court may also order a fine of up to $250,000 and up to a lifetime of supervised release. In addition, as part of her plea agreement with the government, Perdue will pay $5,000, at the time of sentencing, to one of the victims identified by the National Center for Missing and Exploited Children as “Vicky.” Sentencing is set for January 13, 2014, before U.S. District Judge Sam A. Lindsay.
On January 4, 2012, a special agent with the FBI, and on January 5, 2012, an FBI Task Force Officer with the Plano Police Department, each acting online in an undercover capacity and assuming someone else’s identity, launched publicly-available peer-to-peer file-sharing programs and discovered that an individual, using the username, “Classybitch,” later identified as Perdue, was logged on to the network. They observed that the individual’s shared folder contained numerous files, many with names consistent with child pornography. They downloaded files, directly from this individual’s computer, and several did contain child pornography, including one video of a man and a woman engaged in sexually explicit conduct with a minor child. That video is described in Count One of the indictment for which Perdue is pleading guilty.
A search warrant was executed at Perdue’s residence on April 10, 2012. She admitted that one of her screen names was “Classybitch,” and that she traded child pornography while her husband was at work.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Plano Police Department. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
United States Attorney Wigginton Announces Press EventRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, in conjunction with the State’s Attorneys of Madison and St. Clair Counties, as well as federal, state, and local law enforcement officers, announced today that there will be a press event held Thursday, September 12, 2013, at 1:00 pm, at the Office of the United States Attorney for the Southern District of Illinois, located at Nine Executive Drive, Fairview Heights, IL, 62208-1344, concerning the announcement of a joint effort and strategy to combat the rise in numbers of armed robberies in the metro-east area.
Members of the Media are advised to have press credentials and to arrive in sufficient time to allow for security screening prior to the event.
Two Men Sentenced to Federal Prison for Fraud in Obtaining City Cable Franchise Subcontracts for Sham Minority BusinessRead the Press Release
CHICAGO — Two defendants who were convicted at trial earlier this year were sentenced today to federal prison for fraudulently running a sham minority-owned cable television installation business that obtained $8.3 million in subcontracts from a cable company that serves residents on the city’s north side. The defendants, GUY POTTER, and MATTHEW GIOVENCO, neither a minority, actually controlled and operated the now-defunct ICS Cable, Inc., which they and others fraudulently disguised as a minority-owned business to obtain citymandated minority sub-contracts under the lakefront cable franchise held by RCN Telecom Services of Illinois LLC.
Potter, 67, of Versailles, Ky., and formerly of Bensenville, was sentenced to 4½ years beginning on Oct. 31, and Giovenco, 43, of Grayslake, was sentenced to three years in prison beginning on Dec. 2. The sentences were imposed by U.S. District Judge Rebecca Pallmeyer, who also ordered both defendants to forfeit $2.2 million in profits and to pay $217,580 in restitution to RCN.
The defendants engaged in a “cynical manipulation of this program . . . designed to enhance business opportunities for minorities,” Judge Pallmeyer said in sentencing Potter.
Potter and Giovenco, along with two co-defendants, were indicted in April 2011 and they were both convicted of six counts of mail fraud last April after a jury trial in Federal Court. Two co-defendants, JERONE BROWN, who served as the sham minority owner and president of ICS, and his mother, CHERONE MAYES, both of Chicago, who paid a $500 bribe to a city employee to expedite the minority-owned business (MBE) certification for ICS, testified as government witness after pleading guilty and both are awaiting sentencing.
“The defendants engaged in a lengthy fraud scheme that resulted in millions of dollars of contracts being diverted from legitimate minority- and women-owned businesses,” Assistant U.S. Attorney Jessica Romero argued at sentencing.
According to the trial evidence and court records, RCN’s cable franchise agreement required it to sub-contract 40 percent of the cable installation and disconnection services to citycertified minority-owned businesses. Between April 2003 and October 2006, Potter and Giovenco, assisted by Brown and Mayes, fraudulently obtained at least $8.3 million from RCN by falsely representing that Brown owned and operated ICS. All four defendants supported the false representations to RCN with an MBE certification for ICS that they obtained by making false representations to the city regarding Brown’s purported ownership and control of ICS, when, in fact, Potter and Giovenco alone controlled ICS and made most, if not all, financial and managerial decisions for the business.
The sentences were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph Ferguson, Inspector General for the City of Chicago.
Two Jackson County Residents Sentenced on Methamphetamine ConspiracyRead the Press Release
On September 10, 2013, Rachel L. Mills, 34, of Campbell Hill, IL, and Joseph R. Green, 48, of Elkville, IL, were sentenced in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Mills and Green had previously pled guilty to the methamphetamine conspiracy, which occurred between August 2009 and September 4, 2012, in Jackson County. Mills was sentenced to 70 months in prison and fined $200. Green was sentenced to 48 months in prison and fined $300. Both were also placed on 3 years of supervised release following their prison sentences. Evidence at the plea and sentencing hearings established that Mills and Green were involved with each other and others in the manufacture of methamphetamine. Mills supplied pseudoephedrine pills and other materials to Green and others for use in the manufacture of methamphetamine. On September 4, 2012, Mills was arrested in Murphysboro after she attempted to steal lithium batteries for Green to use to manufacture methamphetamine.
The investigation was conducted by the Jackson County Sheriff s Office and Murphysboro Police Department. The Jackson County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Twenty-Five Area People Arrested on Federal Drug and Weapons ChargesRead the Press Release
St. Louis, MO –Twenty-five area people have been arrested on three indictments involving federal drug and weapons charges involving the distribution and manufacture of large amounts of methamphetamine in the Eastern District of Missouri, from October 2010 to September 2013. Several of the individuals indicted are members of the Saddle Tramps Motorcycle Club, including Arvil B. Matthews, the President of the Club.
"This case is another example of some of the problems with House Bill No. 436. If it were the law today, criminal defendants in this case would have the right to sue the law enforcement officers who investigated the case, and the law enforcement officers would be defendants in both civil and criminal lawsuits. I can't believe this is what the legislature intended," said U.S. Attorney Richard Callahan.
Individuals indicted:
- JORGE LOPEZ, Corinth, TX
- MELVIN J. SCHERRER, Bonne Terre, MO
- ALAN D. ADLER, Bonne Terre, MO
- BRENT T. BOUREN, St. Louis, MO
- HOWARD R. PYATT, a/k/a “Bud,” Bonne Terre, MO
- ARVIL B. MATTHEWS, Imperial, MO
- MARK E. ABNEY, Bonne Terre, MO
- AMBER D. SCISM, Farmington, MO
- TERRI L. FOX, St. Louis, MO
- GUILLERMO NAVARRO, a/k/a “Willie,” St. Louis, MO
- JERRY L. ADDISON, St. Louis, MO
- JERAMI A. WESTENBERGER, Arnold, MO
- RAY ALLEN DAVIS, JR., Union, MO
- JAMES A. MITCHELL, St. Louis area
- PATRICK A. TATE, St. Louis, MO
- JIMMIE D. JOHNSON, St. Clair, MO
- DONALD J. MAGUIRE, St. Louis, MO
- THEODORE S. HEEGE, St. Louis, MO
- NORMA J. EGAN, St. Louis, MO
- DONNA L. MOSS, St. Louis, MO
- SHEILA C. HEEGE, St. Louis, MO
- DANIELLE R. BECKER, Park Hills, MO
- HALEY L. MEIER, St. Louis, MO
- HEATHER N. MARTIN, St. Louis, MO
- AMY G. HORRELL, Bonne Terre, MO
If convicted, the drug charges carry penalty ranges of 10 years to life in prison and firearms charges carry up to 10 years in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is a joint operation of the Federal Bureau of Investigation, the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, St. Charles and Jefferson County Sheriff’s Offices, the St. Louis Metropolitan Police Department and multiple local law enforcement agencies. Assistant United States Attorney Jeannette Graviss is handling the case for the Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Three Executives of South Florida Psychiatric Hospital Sentenced in $67 Million Health Care Fraud SchemeRead the Press Release
Three executives of Hollywood Pavilion LLC (HP), an inpatient psychiatric hospital located in Broward County, Fla., were sentenced today for their roles in a $67 million Medicare fraud scheme.
U.S. Attorney Wilfredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigation’s Miami office made the announcement.
Karen Kallen-Zury, 60, of Lighthouse Point, Fla.; Daisy Miller, 44, of Hollywood, Fla.; and Christian Coloma, 50, of Miami Beach, Fla., were sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. Kallen-Zury was sentenced to serve 25 years in prison; Miller was sentenced to 15 years in prison; and Coloma was sentenced to 12 years in prison. In addition to their prison terms, Kallen-Zury and Miller were ordered to pay more than $39 million in restitution, jointly and severally with certain co-defendants. Coloma was ordered to pay more than $20 million in restitution, jointly and severally with certain co-defendants. The sentencing hearing for Michele Petrie, another convicted executive of HP, is scheduled for Dec. 18, 2013.
On June 28, 2013, Kallen-Zury and Miller were found guilty of one count of conspiracy to commit wire fraud and health care fraud, five substantive counts of wire fraud and two substantive counts of health care fraud. Coloma was convicted of one count of conspiracy to pay bribes in connection with Medicare. Kallen-Zury and Coloma were also convicted on five substantive counts of paying bribes.
“Health care fraud is a devastating crime that threatens the strength and integrity of our health care system,” said U.S. Attorney Ferrer. “As I have previously stated, we remain steadfast in our efforts to protect Medicare from fraud and abuse for those who need it – the sick, the elderly and the poor. Today’s sentencing should send a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will be brought to justice.”
“These defendants from Hollywood Pavilion who were sentenced today are the first executives from a licensed state hospital prosecuted by the Medicare Fraud Strike Force,” said Acting Assistant Attorney General Raman. “They abused the public’s trust by deliberately targeting disabled substance abusers and conning them into spending weeks locked down at a psychiatric hospital. Their conduct proves that healthcare fraud is not only about harm to the public fisc – it is about real harm to individuals in need of medical care. Thanks to the hard work of the Strike Force, the nine-year, $67 million scheme was discovered, the hospital was shut down, and the executives will now spend as much as 25 years in prison.”
“Bribes, kickbacks and false claims are words that have no place in America’s health care lexicon, yet the greed of these executives developed into an elaborate $67 million health care fraud scheme that involved these very terms,” said FBI Special Agent in Charge Steinbach. “Ultimately, health care fraud robs from the elderly and disabled. The FBI and its partners will continue to pursue those individuals who pay kickbacks and fraudulently bill for medical services that are not necessary or ever provided.”
Evidence at trial demonstrated that the defendants and their co-conspirators caused the submission of false and fraudulent claims to Medicare through HP, a state-licensed psychiatric hospital located in Hollywood that purportedly provided, among other things, inpatient psychiatric care and intensive outpatient psychiatric care. The defendants paid illegal bribes and kickbacks to patient brokers to obtain Medicare beneficiaries as patients at HP who did not qualify for psychiatric treatment. The defendants then submitted claims to Medicare for those patients who were procured through bribes and kickbacks.
According to evidence at trial, Kallen-Zury, the CEO and registered agent of HP, attempted to conceal the payment of bribes and kickbacks by creating false documents to make it appear as if legitimate services were being rendered. Miller, the clinical director of HP’s inpatient facility, and Petrie, the head of HP’s intensive outpatient program, facilitated the payment of bribes to patient recruiters and oversaw the fraudulent admissions and treatment of unqualified patients. Coloma, the director of physical therapy for an entity associated with HP, facilitated the payment of bribes and kickbacks, and he supervised the creation of false documents to conceal the bribery scheme.
From at least 2003 through at least August 2012, HP billed Medicare nearly $70 million for services that were not properly rendered, for patients that did not qualify for the services being billed and for claims for patients who were procured through bribes and kickbacks.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorneys Robert Zink, Andrew Warren and Anne McNamara of the Criminal Division’s Fraud Section, with assistance from Assistant U.S. Attorney Timothy Abraham of the Southern District of Florida.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
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.
Thomas Michael Shumate Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 10, 2013, before U.S. District Judge Sam E. Haddon, THOMAS MICHAEL SHUMATE, a 35-year-old resident of Red Lodge, was sentenced to a term of:
Prison: 27 months
Special Assessment: $100
Supervised Release: 3 years
SHUMATE was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm..
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
In Nashville, Tennessee, SHUMATE was convicted of felony burglary to a vehicle in 2005, and in 2008 of felony burglary to a vehicle and felony theft, therefore prohibiting him from possessing firearms.
On September 20, 2012, the owner of the Red Lodge Antique Mall called law enforcement concerned about two firearms that they purchased from SHUMATE the previous day. The firearms were a Savage/Stevens, model 94 - Series P, .410 caliber, break-automatic shotgun, and a Savage, model III, .300 Win Mag caliber, bolt-automatic rifle.
Law enforcement later learned that the firearms were taken from a Red Lodge residence that SHUMATE was house-sitting.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SHUMATE will likely serve all of the time imposed by the court. In the federal system, SHUMATE 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 a cooperative effort between the Red Lodge Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Thomas Joseph Spotted Eagle Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 10, 2013, before U.S. District Judge Sam E. Haddon, THOMAS JOSEPH SPOTTED EAGLE, a 30-year-old resident of Pablo, was sentenced to a term of:
Prison: 12 months
Special Assessment: $100
Supervised Release: 3 years
SPOTTED EAGLE was sentenced in connection with his guilty plea to use of a communications device to aid in a conspiracy to possess with intent to distribute marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On July 20, 2010, a Yellowstone County Sheriff's Office Deputy initiated a traffic stop on a black 2010 Mercedes Benz SUV after running the license plate and determining that the owner had a valid arrest warrant. The owner of the vehicle, Joseph Chartraw, provided a false name to the deputy but ultimately admitted his name. A narcotics-detecting K-9 was called to the scene and positively alerted on the vehicle for the presence of narcotic odors. The vehicle was impounded pending a search warrant application. A subsequent search yielded airline tickets, a cell phone, documents, $14,154 in cash, and user amounts of marijuana.
Pursuant to the Search Warrant, detectives had the cellular telephone that was seized from the vehicle analyzed. The contents revealed that Chartraw had been involved with selling hundreds of pounds of marijuana, as well as transporting tens of thousands of dollars in cash. Some of the text messages on the phone blatantly discussed prices for pounds of marijuana, smuggling bulk cash via the airlines, having bulk cash from drug proceeds deposited into bank accounts, and dealing marijuana to the Indian reservations in Montana. According to the text messages on the phone, marijuana was distributed to Browning, Polson, Crow Agency, as well as Havre, St. Ignatius, Great Falls, Missoula, Cut Bank, Lolo, and other places throughout Montana.
One of the subjects having drug-related communications with Chartraw was SPOTTED EAGLE. On June 15, 2010, SPOTTED EAGLE and Chatraw exchanged a series of text messages arranging for SPOTTED EAGLE to pick up marijuana from one of Chartraw's distributors for future distribution to SPOTTED EAGLE's marijuana customers.
Chartraw was interviewed and admitted SPOTTED EAGLE was his second largest distributor of marijuana and that the two used their cellular telephones to arrange drug deals.
Chartraw pled guilty to federal charges and has been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SPOTTED EAGLE will likely serve all of the time imposed by the court. In the federal system, SPOTTED EAGLE 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 Billings Big Sky Safe Streets Task Force.
Tampa Drug Dealer Sentenced to Life in Federal PrisonRead the Press Release
Tampa. Florida- U.S. District Judge William J. Castagna yesterday sentenced Eugene E. Davis (39) to life in federal prison for conspiracy to possess with the intent to distribute five kilograms or more of cocaine and conspiracy to possess 280 grams or more of cocaine base. The life sentence was imposed as a result of Davis's prior felony drug convictions. A federal jury found Davis guilty on May 16, 2013.
According to testimony and evidence presented at trial, Davis engaged in a year- long conspiracy with others to distribute hundreds of kilograms of cocaine and crack cocaine in Hillsborough County. Davis, a prolific crack dealer, was known for purchasing multiple kilograms of cocaine and cooking it into crack cocaine. Often described as "flashy and flamboyant," Davis used his drug proceeds to fund an extravagant lifestyle of high-end cars, expensive jewelry, and thousands of dollars in cash. The court also concluded that Davis was a career offender who obstructed justice when he attempted to intimidate witnesses by listing their names in news outlets and on social media, labeling them "snitches."
This case resulted from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service - Criminal Investigation, Hillsborough County Sheriff's Office, and Tampa Police Department. It was prosecuted by Assistant United States Attorney Shauna S. Hale. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Statement of United States Attorney Loretta E. Lynch Regarding the Sentencing of Ronell WilsonRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, United States District Judge Nicholas G. Garaufis sentenced Ronell Wilson to death for the murders of two New York City Police Department Detectives, Rodney J. Andrews and James V. Nemorin.
Today’s sentencing followed a five-week evidentiary hearing that culminated on July 24, 2013, with a federal jury verdict unanimously recommending that the court impose the death penalty on Wilson.
“Wilson’s death sentence marks the end of a ten-year odyssey in the relentless pursuit of justice,” stated United States Attorney Loretta E. Lynch. “This sentence follows the recommendation of a jury of Wilson’s peers that justice requires the imposition of the ultimate punishment for the vicious and senseless murder of two husbands, two fathers and two protectors of the City of New York. With this sentence, we can only hope that the families of New York City Police Detectives Andrews and Nemorin will take some comfort in its finality.”
St. Francis Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 9, 2013, by U.S. District Judge Roberto A. Lange.
Koty Arcoren, age 21, was sentenced to 12 months and 1 day of imprisonment, 5 years of supervised release, $305.66 restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Arcoren was indicted by a federal grand jury in May of 2013, and pled guilty to the Indictment on June 13, 2013.
On February 28, 2011, Arcoren was convicted of Abusive Sexual Contact. The Court sentenced Arcoren to 31 months in custody, seven years of supervised release, and also ordered that he register as a sex offender. Arcoren began his term of supervised release and absconded from supervised release on April 12, 2013. During the time he absconded from supervised release until he was apprehended in Todd County on April 29, 2013, he failed to complete his sex offender registration requirement.
The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Arcoren was immediately turned over to the custody of the U.S. Marshals Service.Sixteen Indicted, Fourteen Apprehended in Early Morning Drug SweepRead the Press Release
Memphis, TN – An early morning sweep by law enforcement officers from the Federal Bureau of Investigation and numerous local law enforcement agencies resulted in the apprehension of 14 individuals involved in a drug distribution conspiracy, announced U.S. Attorney Edward L. Stanton III and A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation.
According to a federal grand jury indictment unsealed today, the following individuals did unlawfully and knowingly conspire to possess and distribute more than five kilograms of cocaine:Osiel Lopez-Acuna, a/k/a “Buddha,” 34, of Memphis; Christopher Love, 38, of Memphis; Gilberto Conde, a/k/a “Gilberto Conde-Sanchez,” age unknown, of Memphis; Enrique Rodriguez, a/k/a “Kike,” age unknown, of Memphis; Alfonso Perez Hernandez, a/k/a “Kora,” 45, of Memphis; Francisco Javie Valtierra-Zuni, a/k/a “Fabian Avila-Prieto,” age unknown, of Memphis; David Martinez, age unknown, of Memphis; Jose Trinidad Arteaga, a/k/a “Pelon,” a/k/a “Dreamer,” 30, of Memphis; Julius Hull, a/k/a “Trey,” 36, of Memphis; Gregory Ledronte Miller, a/k/a “Bebe,” 34, of Memphis; Daniel Morales, age unknown, of Memphis; Benigno Morales Vasquez, a/k/a “Muchi,” 39, of Memphis; Aquilino Gonzalez, 30, of Memphis; Terry Greer, 40, of Memphis; Otis Booth, a/k/a “Otis Boothes,” age unknown, of Memphis; and Correy Dewayne Morris, 35, of Memphis.
In addition, Gilberto Conde was indicted for one count of possession of a firearm while in the country illegally and one count of possession of a firearm in the furtherance of drug trafficking. Otis Booth and Enrique Rodriguez remain at large.
# # # #
Officials also seized approximately 10 guns, night vision goggles, body armor, approximately $125,000 in cash, and approximately two kilograms of suspected cocaine. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
This case is being investigated by the FBI Safe Streets Task Force, Shelby County Sheriff's Office, Memphis Police Department, Bartlett Police Department, Germantown Police Department and the DeSoto County Sheriff's Office. Assistant United States Attorney Daniel French is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Sioux Falls Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeremy Jeunesse, a/k/a Jeremy Chasing Horse, a/k/a Jeremy Trudell, age 34, of Sioux Falls, South Dakota, appeared before Chief Judge Jeffrey L. Viken, U.S. District Court on September 5, 2013, and pled guilty to Failure to Register as a Sex Offender.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine.
The charge relates to Jeunesse failing to register as a convicted sex offender in Pennington County on September 1, 2012. The investigation was conducted by the U.S. Marshals Service.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.Silver City Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – Gabriel Anthony Saiz, 20, of Silver City, N.M., pleaded guilty in federal court in Las Cruces this afternoon to firearms charges. Saiz entered his guilty plea without the benefit of a plea agreement.
Saiz and his co-defendant Javier J. Reyes, 19, of the Village of Santa Clara, N.M., were charged with possession of an unregistered firearm in a criminal complaint filed on March 1, 2013. The two men subsequently were indicted and charged with (1) possession of an unregistered short-barreled rifle, and (2) possession of a firearm with an obliterated serial number. According to the indictment, Saiz and Reyes possessed a firearm made from a Mossberg .22 caliber rifle with a barrel length of less than 16 inches and an obliterated serial number that was not registered to either man on Nov. 27, 2012, in Grants County, N.M.
According to court filings, Saiz and Reyes were arrested on local charges by the Silver City Police Department on Nov. 27, 2012, in Silver City after they allegedly robbed a woman at gunpoint at approximately 7:30 p.m. that day and allegedly assaulted four individuals by brandishing a firearm at them approximately an hour later. The officers were able to apprehend Saiz and Reyes at approximately 9:00 p.m. that night because the victim of the armed robbery reported the crime and provided the license plate number for the vehicle in which Saiz and Reyes were driving. When the officers arrested Saiz and Reyes, they observed a firearm on the floor board under the front passenger seat.
During today’s proceedings, Saiz pleaded guilty to both counts of the indictment. At sentencing, Saiz faces a maximum penalty of ten years in prison for possession of an unregistered firearms and a maximum penalty of five years in prison for possession of a firearm with an obliterated serial number. He remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
Reyes has entered a not guilty plea to the charges in the indictment and is scheduled for trial on Nov. 18, 2013. The charges against Reyes are merely accusations and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Steven C. Yarbrough said, “The facts giving rise to this case demonstrate the importance of enforcing the federal firearms laws. Prosecuting individuals, like Saiz, who use firearms to commit violent crimes and endanger the lives of innocent victims makes communities like Silver City safer places to live and raise families. I commend the ATF for its commitment to working with state and local law enforcement authorities throughout New Mexico for enhancing public safety in our communities.”
“Today’s guilty plea serves as a perfect example of the federal-state teamwork we strive to achieve. I commend the efforts of the Silver City Police Department and the tireless commitment of the ATF agents involved in this case. I also wish to recognize the leadership of the U.S. Attorney’s Office in their prosecution” stated ATF Special Agent in Charge Bernard J. Zapor.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Silver City Police Department and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Shawnee Man to Serve 90 Months in Prison for Abuse of Four-Year-Old Child in Indian CountryRead the Press Release
Oklahoma City, Oklahoma – Justin L. Ellis, 26, of Shawnee, Oklahoma, and a tribal member of the Kickapoo Tribe, was sentenced yesterday by U.S. District Court Judge Stephen Friot to serve 90 months in federal prison for malicious injury of a four-year old child on the federal lands held in trust for the Kickapoo Tribe of Oklahoma, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on November 10, 2012, Ellis, a tribal member of the Kickapoo Tribe, repeatedly burned a four-year-old child on the buttocks and legs with a lit cigarette on Kickapoo Tribal land in in Pottawatomie County. Ellis pled guilty on June 3, 2013. At sentencing, the court went above the sentencing guidelines of up to 51 months in prison to fashion a 90-month sentence appropriate to the crime. Upon release from prison, Ellis will be supervised by the U.S. Probation office for an additional three years.
This case is the result of an investigation by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Robert Don Gifford, II.
Rosebud Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Abusive Sexual Contact was sentenced on September 9, 2013, by U.S. District Judge Roberto A. Lange.
Sonny Gray Grass, age 52, was sentenced to 84 months in custody, 8 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Gray Grass was indicted by a federal grand jury on August 22, 2012, and pled guilty to Abusive Sexual Contact on May 29, 2013.
The conviction stems from an incident that took place in Todd County between April 24 and April 28, 2008, when Gray Grass engaged in sexual contact with the victim. At the time of the offense, the victim was under the age of 12.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Gray Grass was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.Rolla Woman Sentenced for Bank Fraud & Criminal MischiefRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Sept. 10, 2013, Nicole Rogers, 25, Rolla, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of bank fraud. Rogers pleaded guilty to the charge on March 28, 2013.
Judge Hovland sentenced Rogers to two months in custody, to be followed by three years of supervised release. Rogers was ordered to pay a $100 special assessment to the Crime Victim’s Fund and $2100 in restitution.
In October 2012 Rogers presented checks with forged signatures to Dacotah Bank in Belcourt. Rogers withdrew and attempted to withdraw money by representing she was entitled to the money.
In a separate case, on Sept. 10, 2013, Rogers pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of criminal mischief.
On Feb. 23, 2013, Rogers used a sharp object to scratch a vehicle which belonged to another person.
Judge Hovland sentenced Rogers to two months in federal custody, to be followed by one year of supervised release. Rogers was ordered to pay a $25 special assessment to the Crime Victim’s Fund and $250 in restitution.
The case was investigated by the Bureau of Indian Affairs – Turtle Mountain Agency.
Assistant U.S. Attorney Brandi Sasse Russell prosecuted the case.
Polk County Man Charged in Federal Court for Possession of Child PornographyRead the Press Release
Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces the arrest of Eleftherios (Ted) Zachariadis (46, Lake Alfred) for possession of child pornography. If convicted, Zachariadis faces a maximum penalty of 10 years in federal prison and a fine of up to $250,000. Zachariadis was charged by criminal complaint on September 9, 2013.
According to the complaint, an undercover law enforcement officer downloaded multiple child pornography files over the Internet from an IP address connected to Zachariadis's residence. On September 9, 2013, a federal search warrant was executed at the residence. Zachariadis was found to be in possession of more than 900 images and more than 200 videos depicting child pornography.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Florida Department of Law Enforcement, the Polk County Sheriff's Office, the Internet Crimes Against Children Task Force and the Lake Alfred Police Department. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Pine Ridge Woman Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Tricia Lee Pond, age 42, of Pine Ridge, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy, on September 6, 2013, and pled guilty to Conspiracy to Distribute a Controlled Substance.
A presentence investigation was ordered and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
The penalty upon conviction is at least five, and not more than 40 years, in prison and/or a $5,000,000 fine.
Between 2009 and April 2013, Pond conspired with others to distribute more than 500 grams of cocaine on and around the Pine Ridge Indian Reservation.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.Philadephia Man Charged with Gun OffenseRead the Press Release
Philip Epps, 26, of Philadelphia, Pa., was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a mandatory minimum term of imprisonment of 15 years, and a maximum possible sentence of life imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pataskala Man Pleads Guilty to CounterfeitingRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Joshua M. Guyselman, 29, of Pataskala, Ohio pleaded guilty in U.S. District Court to one count of manufacturing counterfeit U.S. $100 bills.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, Ohio State Highway Patrol Superintendent Paul Pride, Reynoldsburg Police Chief Jim O’Neill and Pataskala Police Chief Bruce Brooks announced the plea entered today before U.S. District Judge Michael Watson.
According to testimony by a Secret Service agent during the plea hearing, Reynoldsburg Police officers detained Guyselman in February 2013 after he went to a local business and attempted to pass a counterfeit $100 bill he made. Further investigation revealed that Guyselman used a process known as “bleaching” to produce counterfeit bills on genuine paper used for U.S. currency that he then passed at area businesses in Licking County.
“Bleaching” is a process in which chemicals are used to remove the ink from small denomination Federal Reserve notes. A counterfeiter will print the markings of a higher denomination note on the “bleached” note, often using a home computer and printer.
Counterfeiting of U.S. currency is punishable by up to 20 years in prison. Judge Watson will schedule a date for sentencing after the court completes a pre-sentence investigation. Guyselman will remain free on bond until sentencing.
U.S. Attorney Stewart commended the cooperative investigation by the Secret Service, the Highway Patrol, and the police departments in Pataskala and Pickerington, as well as Assistant U.S. Attorney Dale E. Williams Jr., who is prosecuting the case.
Oklahoma City Nurse Practioner Pays $50,000 to Settle Civil Penalty Claims Involving Violations of Controlled Substances ActRead the Press Release
Oklahoma City, Oklahoma -- Brandi A. Kammerer, N.P., who practices in Oklahoma City, Oklahoma, has agreed to pay $50,000 to the United States to settle civil penalty claims stemming from allegations that she violated the Controlled Substances Act, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The Controlled Substances Act, 21 U.S.C. Sections 801 et seq. ("CSA"), was passed by Congress to combat the illegal distribution and abuse of controlled substances, including prescription medications. The CSA is enforced by the Drug Enforcement Administration's (DEA) Office of Diversion Control, with a mission to prevent, detect, and investigate the diversion of controlled pharmaceuticals and listed chemicals from legitimate sources while ensuring an adequate and uninterrupted supply for legitimate medical, commercial, and scientific needs.
The United States alleged that from September 10, 2010, through August 29, 2012, Ms. Kammerer issued prescriptions to individuals for controlled substances that were not for a legitimate medical purpose and not in the usual course of professional practice. More specifically, NP Kammerer improperly issued prescriptions for controlled substances to two family members, and without having established a provider/patient relationship.
In order to resolve the civil penalty claims by the United States, Ms. Kammerer agreed to pay $50,000 to the government. In reaching this settlement, Ms. Kammerer did not admit liability, and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration’s Office of Diversion Control and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
North Carolina U.S. Attorney Offices Co-Sponsor Human Trafficking Symposium September 12-13, 2013 in RaleighRead the Press Release
RALEIGH - United States Attorneys Thomas G. Walker, Ripley Rand, and Anne M. Tompkins announced that their three Offices are co-sponsoring a Human Trafficking Symposium September 12-13, 2013 at the Double Tree by Hilton Brownstone in Raleigh. Preventing and prosecuting Human Trafficking cases is a priority of the U.S. Department of Justice and the training is designed to bring together law enforcement and service providers to educate them about this heinous crime that plagues our nation.
Credentialed members of the media are invited to the conference.
Human Trafficking is called the modern day slavery in the United States. There is a great need to educate law enforcement personnel about how to identify and investigate these cases. There is also a need to educate service providers and law enforcement about the methods to reduce the barriers of bringing a human trafficking case to federal court for prosecution and help eliminate the obstacles victims face when seeking services. Additionally, there is a need to educate our state and local partners about the federal tools available to prosecute these crimes.
“One of the Department of Justice’s priorities is protecting vulnerable victims and holding offenders accountable, and North Carolina’s United States Attorney’s Offices are committed to working together with law enforcement and other groups to fight human trafficking,” said United States Attorney Rand.
“Human trafficking is a national epidemic and it is also happening here, in our own communities, with many of the victims and perpetrators hiding in plain sight. Over the past two years, the U.S. Attorney’s Office for the Western District of North Carolina has played an active role in raising public awareness, increasing law enforcement training and establishing partnerships with victim service providers in Western Carolina. This symposium is a continuation of our efforts to create and maintain these strong partnerships, which can be force multipliers in our fight against this form of modern day slavery,” said U.S. Attorney Tompkins.
“This event is an excellent example of the vital collaboration needed between the law enforcement and the service provider community. Efforts to confront human trafficking must include an increased awareness of the indicators of this crime by those who are most likely to encounter the victims,” said U.S. Attorney Walker.
The Symposium is also being co-sponsored by the U.S. Department of Justice, Office for Victims of Crime, the North Carolina Coalition Against Sexual Assault, the North Carolina Justice Academy, the Carolinas Institute for Community Policing, and the North Carolina Victim Assistance Network.Nine Trey Gangster Leader Sentenced to 30 Years, Girlfriend Sentenced to Nearly Six YearsRead the Press Release
RICHMOND, Va. – Quincy L. Burrell, 36, of Richmond, Virginia, was sentenced today to 360 months’ in prison, to be followed by 5 years of supervised release for charges of conspiracy to distribute crack cocaine and possession of a firearm by a convicted felon.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge, Federal Bureau of Investigation’s Richmond Field Office; Ray J. Tarasovic, Chief of Police for Richmond Police Department; Colonel W. Steven Flaherty, Superintendent, Virginia State Police; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration (DEA)’s Washington Division, made the announcement after the sentence was imposed today by United States District Judge James R. Spencer.
Burrell was charged in a criminal indictment with conspiracy to distribute, and possess with the intent to distribute, 280 grams or more of cocaine base; and possession of a firearm and ammunition by a convicted felon.
In the Statement of Facts filed at the time of his plea hearing in June, Burrell admitted to having distributed between 2.8 and 8.4 kilograms of “crack” cocaine into the Richmond, Virginia metropolitan area in furtherance of the conspiracy.
Burrell also admitted in the Statement of facts that he is a leader of the NTG, holding the rank of “High Stain.” NTG a set of the United Blood Nation (UBN). NTG members are organized into “line-ups.” There were multiple active “line-ups” in Virginia and elsewhere under Burrell’s control. The “High Stain” of each line-up reports to two “Godfathers,” both of whom are in New York. Burrell admitted that nearly every member of the NTG line-up in Virginia was involved in the distribution of narcotics at the direction of, or for the benefit of the gang. In addition, he stated that distribution of narcotics was routinely discussed at NTG meetings, which also included assigning discipline to NTG members who have improperly managed drug proceeds. Discipline may involve a loss of rank, or a 31 second beating.
Sande Chhim, Burrell’s girlfriend at the time of their arrest, and a co-defendant in the drug trafficking conspiracy, was sentenced to 70 months’ in prison on September 9, 2013, for her role in the conspiracy. Although Chhim was not a member of the NTG, she was an active participant in the conspiracy with Burrell from 2011 until their arrest in March 2013. Her involvement included providing Burrell with a place to cook cocaine hydrochloride into “crack” cocaine, driving Burrell to meetings with his suppliers and sub-dealers, pooling her money with Burrell’s to purchase narcotics, wiring drug proceeds to NTG leadership out of state, and serving as a nominee by placing vehicles and apartments in her name for Burrell. She facilitated the concealment of firearms and a vehicle that had been involved in criminal activity for the benefit of the gang.
This case was initiated and investigated by the FBI as part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation - Full Blooded Ink. Assistant United States Attorney Angela Mastandrea-Miller 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.Michael Anthony Ervin Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 10, 2013, before U.S. District Judge Sam E. Haddon, MICHAEL ANTHONY ERVIN, a 48-year-old resident of Billings, was sentenced to a term of:
Prison: 148 months
Special Assessment: $100
Supervised Release: 3 years
ERVIN was sentenced in connection with his guilty plea to distribution of hydrocodone.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
An agent assigned to the Drug Enforcement Administration's Tactical Diversion Squad purchased prescription pills from ERVIN in Roundup and Billings from December 28, 2011, and continuing through February 3, 2012.
Specifically, the agent purchased 60 hydrocodone 5mg pills on December 28, 2011, in Roundup, from ERVIN. The agent purchased 20 hydrocodone 5mg pills and 12 morphine 30mg pills on January 18, 2012, in Billings, from ERVIN. The agent purchased 100 hydrocodone 5mg pills on February 3, 2012, in Billings, from ERVIN.
A chemist from the DEA laboratory in San Francisco verified the presence of controlled substances - hydrocodone and morphine - in the pills purchased from ERVIN.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ERVIN will likely serve all of the time imposed by the court. In the federal system, ERVIN 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 Drug Enforcement Administration Tactical Diversion Squad which includes the Montana Division of Criminal Investigation and the Billings Police Department.
Medical Supply Company Officer and Southern California Physician Sentenced for $1.5 Million Medicare FraudRead the Press Release
A former officer of Fendih Medical Supply Inc. was sentenced to serve 51 months in prison yesterday in Los Angeles for his role in a fraud scheme that resulted in $1.5 million in fraudulent claims to Medicare. In addition, a physician was sentenced to 27 months in prison for his role in the scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Godwin Onyeabor, 49, of San Bernandino, Calif., was sentenced on Sept. 9, 2013, by U.S. District Judge Manuel L. Real in the Central District of California to 51 months in prison. In addition to his prison term, Onyeabor was sentenced to three years of supervised release. Restitution will be determined at a later date. Dr. Sri J. Wijegunaratne, 58, of Anaheim, Calif., was sentenced to 27 months in prison by Judge Real. In addition to his prison term, Wijegunaratne was sentenced to three years of supervised release and ordered to pay restitution in the amount of $87,846.
On April 24, 2013, a jury in Los Angeles federal court found Wijegunaratne, Onyeabor and Heidi Morishita, 48, guilty of one count of conspiracy to pay and receive kickbacks. In addition, Wijegunaratne and Onyeabor were found guilty of conspiracy to commit health care fraud. Wijegunaratne was found guilty of seven counts of health care fraud, and Onyeabor was found guilty of eleven counts of health care fraud.
During trial, the evidence showed that Onyeabor, as the former officer of a durable medical equipment (DME) supply company, fraudulently billed more than $1 million to Medicare for DME that was either never provided to its Medicare beneficiaries or was not medically necessary. Wijegunaratne provided Onyeabor and others with medically unnecessary power wheelchair prescriptions, and both Wijegunaratne and Morishita sold power wheelchair prescriptions to Onyeabor and others.
The evidence showed that Onyeabor and others paid Wijegunaratne and Morishita cash kickbacks for fraudulent prescriptions for DME, and Onyeabor and others used these prescriptions to bill Medicare for the power wheelchairs and other DME. Several Medicare beneficiaries testified that they were lured to medical clinics with the promise of free items such as vitamins and juice, only to receive power wheelchairs which they did not need and did not want, and were unsuccessful in their attempts to reject delivery of the power wheelchairs from Onyeabor’s supply company.
As a result of this fraud scheme, Onyeabor, Wijegunaratne and others submitted and caused the submission of approximately $1.5 million in false and fraudulent claims to Medicare and received almost $1 million on those claims.
Morishita’s sentencing is scheduled for Sept. 30, 2013.
The case is being investigated by the FBI and the Los Angeles Region of the HHS-Office of Inspector General (HHS-OIG) and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case is being prosecuted by Assistant Chief Benton Curtis, Trial Attorneys Fred Medick and Alexander Porter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.Martin Lloyd Old Horn Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 10, 2013, before U.S. District Judge Sam E. Haddon, MARTIN LLOYD OLD HORN, a 22-year-old resident of Hardin, was sentenced in Cause No. CR 13-28-BLG-SEH to a term of:
Prison: 6 months, concurrent with CR 13-27-BLG-SEH
Special Assessment: $100
Supervised Release: 3 years
OLD HORN was sentenced in connection with his guilty plea to federal student aid loan fraud.
In addition, OLD HORN was sentenced in Cause No. CR 13-27-BLG-SEH to a term of:
Prison: 6 months, concurrent with CR 13-28-BLG-SEH
Special Assessment: $100
Restitution: $21,820
Supervised Release: 3 years
OLD HORN was sentenced in connection with his guilty plea to mail fraud.
In Offer of Proofs filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
In Cause No. CR 13-27-BLG-SEH:
The Crow Tribal Historic Preservation Office (CTHPO) Is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
During the summers of 2010 and 2011, either before leaving for or while home from school at the University of Montana (UM), OLD HORN, at the urging and instigation of his mother and other family members, represented himself to be a monitor for the Crow Tribe Historical Preservation Office. He had no training for the position, had not been hired by the Crow Tribe to be a tribal monitor, and had no authority other than the direction of his family to engage in the business of being a tribal monitor.
During 2010, the evidence would have reflected that the invoices to companies for direct payment to OLD HORN, for his purported services, were submitted by his mother. During 2011, the time period alleged in the indictment, the evidence indicates that OLD HORN submitted invoices for his purported services directly. OLD HORN billed on an hourly basis and always billed for an entire day. The evidence would show that OLD HORN was usually in the company of his mother or cousin when on-site, that he made no logs or reports documenting his work or observations as required by legitimate monitoring standards, and that on numerous occasions he was not on site for the hours billed to the company. During the time period of the indictment - the two month period in the summer of 2011 - OLD HORN received $19,184.15 in compensation from companies doing business on the Crow Indian Reservation.
In addition, OLD HORN received an additional $24,477 when his mother submitted invoices on his behalf, for a total of $43,661 received on the basis of his billing for services as if a legitimate tribal monitor. The United States maintains that the fraudulent nature of the invoices remains the same whether submitted by OLD HORN or his mother. The United States and OLD HORN have stipulated to one-half of the total amount - $21,830 - as restitution and use in the fraud loss calculation based on the time and service that may have been legitimately rendered.
The companies made their payments to Martin OLD HORN through the U.S. Mail.
In Cause No. CR 13-28-BLG-SEH:
The Crow Tribal Historic Preservation Office (CTHPO) Is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
During the summers of 2010 and 2011, either before leaving for or while home from school at the University of Montana (UM), OLD HORN, at the urging and instigation of his mother and other family members, represented himself to be a monitor for the Crow Tribe Historical Preservation Office. He had no training for the position, had not been hired by the Crow Tribe to be a tribal monitor, and had no authority other than the direction of his family to engage in the business of being a tribal monitor.
Evidence would have been presented to establish that OLD HORN was a student at UM during the fall of 2011. In late October OLD HORN completed an on-line Free Application for Federal Student Aid (FAFSA), an application used by the U.S. Department of Education to determine eligibility for Pell Grants and Stafford loans, wherein he indicated that he had no earned income during the previous year. In truth, during the previous year, companies had paid OLD HORN approximately $21,600 for monitoring services based on invoices he had submitted (or which had been submitted by his mother on his behalf). Such income, if revealed, would have materially affected the decisions of the U.S. Department of Education in determining entitlement to federal aid and the level of federal aid.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that OLD HORN will likely serve all of the time imposed by the court. In the federal system, OLD HORN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigations were conducted by the U.S. Department of Interior - Office of Inspector General.
Manhattan U.S. Attorney Announces Civil Forfeiture Complaint Against Real Estate Corporations Allegedly Involved in Laundering Proceeds of Russian Tax Refund Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), and Cyrus R. Vance, Jr., the District Attorney for New York County (“DANY”), announced today the filing of a civil forfeiture complaint against the assets of nine corporations controlling real estate in Manhattan, including four luxury residential units and two high-end commercial spaces, as well as against the assets of two related companies, and seeking the imposition of civil money laundering penalties. The Complaint filed today in Manhattan federal court alleges that these corporations laundered a portion of the proceeds of a $230 million Russian tax refund fraud scheme involving corrupt Russian officials that was uncovered by Sergei Magnitsky, a Russian lawyer who died in pretrial detention in Moscow under suspicious circumstances.
Manhattan U.S. Attorney Preet Bharara said: “Today's forfeiture action is a significant step towards uncovering and unwinding a complex money laundering scheme arising from a notorious foreign fraud. As alleged, a Russian criminal enterprise sought to launder some of its billions in ill-gotten rubles through the purchase of pricey Manhattan real estate. While New York is a world financial capital, it is not a safe haven for criminals seeking to hide their loot, no matter how and where their fraud took place.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “The complaint announced today further displays the U.S. Government's resolve in combating alleged corruption globally. ICE HSI will continue to aggressively pursue civil and criminal actions targeting those attempting to launder illicit profits.”
District Attorney Cyrus R. Vance, Jr. said: “Manhattan may have some of the most desirable real estate in the world, but it is not the place to purchase it if you are allegedly doing so with dirty money. We are very grateful to the United States Attorney’s Office for its close partnership on this matter, and pleased to have developed and referred this asset forfeiture and civil money laundering case to the federal government.”
As alleged in the Complaint and other court documents:
In 2007, a Russian criminal organization engaged in an elaborate tax refund fraud scheme resulting in a fraudulently-obtained tax refund of approximately $230 million from the Russian treasury. As part of the fraud scheme, members of the organization stole the corporate identities of portfolio companies of the Hermitage Fund, a foreign investment fund operating in Russia. The organization’s members then used these stolen identities to make fraudulent claims for tax refunds.
In order to procure the refunds, the criminal organization fraudulently re-registered the Hermitage companies in the names of members of the organization, and then orchestrated sham lawsuits against these companies. These sham lawsuits involved members of the organization as both the plaintiffs (representing sham commercial counterparties suing the Hermitage companies) and the defendants (purporting to represent the Hermitage companies). In each case, the members of the organization purporting to represent the Hermitage companies confessed full liability in court, leading the courts to award large money judgments to the plaintiffs.
The purpose of the sham lawsuits was to fraudulently generate money judgments against the Hermitage companies. Members of the organization purporting to represent the Hermitage companies then used those money judgments to seek tax refunds. The basis of these refund requests was that the money judgments constituted losses eliminating the profits the Hermitage companies had earned, and thus the Hermitage companies were entitled to a refund of the taxes that had been paid on these profits. The requested refunds totaled 5.4 billion rubles, or approximately $230 million.
Members of the organization who were officials at two Russian tax offices corruptly approved the requests within one business day, and approximately $230 million was disbursed to members of the organization, purportedly on behalf of the Hermitage companies, two days later.
After perpetrating this fraud, members of the organization undertook illegal actions in order to conceal this fraud and retaliate against individuals who attempted to expose it. After learning of the lawsuits against its portfolio companies, Hermitage retained attorneys, including Russian lawyer Sergei Magnitsky, to investigate. Magnitsky and other attorneys for Hermitage uncovered the refund fraud scheme, and the complicity of Russian governmental officials in it, and were subject to retaliatory criminal proceedings. Magnitsky was arrested and died approximately a year later in pretrial detention.
Members of the criminal organization, and associates of those members, have also engaged in a broad pattern of money laundering in order to conceal the proceeds of the fraud scheme. In a complex series of transfers through shell corporations, the $230 million from the Russian treasury was laundered into numerous accounts in Russia and other countries. A portion of the funds stolen from the Russian treasury passed through several shell companies into PREVEZON HOLDINGS, LTD., a Cyprus-based real estate corporation that is a defendant in the forfeiture action. PREVEZON HOLDINGS laundered these fraud proceeds into its real estate holdings, including investment in multiple units of high-end commercial space and luxury apartments in Manhattan, and created multiple other corporations, also subject to the forfeiture action, to hold these properties.
A chart containing the names of the companies subject to the forfeiture action and their known Manhattan real estate holdings is attached.
Mr. Bharara praised the outstanding investigative work of ICE HSI. He also thanked DANY for its assistance in the case.
This case is being handled by the Office’s Asset Forfeiture Unit. Assistant United States Attorneys Paul Monteleoni and Christine Magdo are in charge of the case.
Click here to view chart(s)
U.S. v. Prevezon et al. Exhibit B
U.S. v Prevezon et al. Complaint